Creating a legal framework for Funds to operate efficiently.
According to the Notice No. 17-TB/CQTTBCÄ of December 29, 2025 from the Permanent Agency of the central Directorate for Science, Technology, Innovation, and Digital Transformation concerning the tasks and feasible solutions for 2026 to implement Resolution No. 57, the Ministry of Science and Technology is tasked with developing and promulgating a model charter on the organization and operation of the Fund for the development of science, technology, and innovation of ministries, ministerial-level agencies, government agencies, provinces, and centrally-administered cities, replacing Circular No. 03/2015/TT-BKHCN which has expired, as the basis for a unified implementation by agencies and organizations.
To carry out the assigned task, the Ministry of Science and Technology issued official letter No. 49/BKHCN-VP on January 6, 2026, instructing the National Foundation for Science and Technology Development (NAFOSTED) to preside over and coordinate with the relevant units in drafting a circular promulgating a model charter on the organization and operation of the Fund for the development of science, technology, and innovation of ministries, ministerial-level agencies, government agencies, other central agencies, and provincial people’s committees.
The previous implementation was found to have many shortcomings, as the activities of the Funds at ministerial, sectoral, and local levels were not consistent. Mainly limited to providing loans on social capital, while other crucial functions such as financing, loan guarantees, or support for strengthening scientific and technological capabilities were not effectively implemented.
In addition, the loan mechanism faced challenges due to preferential interest rates being too low, hindering commercial banks’ participation. Many funds lacked specialized credit personnel, limiting their implementation. In some localities, the organizational structure remained fragile, characterized by part-time work and lack of professionalism.
Given the numerous amendments to the Law on Science, Technology, and Innovation of 2025 and its implementing decrees, maintaining the old regulations is no longer appropriate and causes confusion for ministries, sectors, and local communities in setting up and operating the Fund.
Therefore, the publication of a new circular is necessary to ensure legal coherence and uniformity, while creating a clear legal framework for Funds to operate more effectively. Circular No. 17/2026/TT-BKHCN will come into effect on April 16, 2026.
Adding the concept of “innovation” and clearly defining risk management.
According to regulations, ministers, heads of ministerial-level agencies, heads of government agencies, heads of other central agencies, and presidents of provincial people’s committees must establish charters on the organization and operation of funds under their management, in accordance with the content prescribed in the standard charter and respecting current laws. These must be submitted to the Ministry of Science and Technology for monitoring and compilation within 15 working days from the date of signing and publication.
Funds created before the effective date of this circular with existing organizational and operational charters must review, modify, and complete their charters to comply with the provisions within 30 days of the circular’s effective date.
One notable addition is the inclusion of content on “innovation,” ensuring alignment with the Law on Science, Technology, and Innovation of 2025. It also introduces regulations on risk management in Fund operations.
As a result, a risk management mechanism is established based on scientific and technological specificities. Objective risks arising unexpectedly, but subject to proper procedures, can be deemed acceptable. Risk assessment at each stage enables decisions to continue, adjust, or suspend tasks, ensuring flexibility and efficiency.
The circular also complements regulations regarding the use of digital platforms in managing, monitoring, and evaluating scientific, technological, and innovation activities; promoting a comprehensive digital transformation in Fund operations.
New mechanisms include co-financing between the state and business/organizations to mobilize social resources for research and innovation; clear regulations on receiving and utilizing non-budgetary funds; and enhanced accountability and control.
Open and transparent operation.
According to the standard charter, the Fund is a nonprofit public financial institution with legal personality, responsible for receiving and using financial resources from the state budget and other legitimate sources. The Fund’s functions include financing, implementing, and supporting scientific, technological, and innovation programs and projects, as well as supporting technology application and transfer, ecosystem innovation development, and young innovative enterprises.
It is worth noting the adjusted organizational structure to clearly define roles: the Board of Directors focuses on strategic direction and supervision, while the Executive Agency proactively implements financing, contracting, support, and other Fund activities in accordance with the law and the Charter, ensuring flexibility and expediency in the implementation process.
Fund operational principles prioritize openness, transparency, competitiveness, market relevance, and an enterprise-focused approach. Selecting organizations and individuals to carry out scientific, technological, and innovative tasks must ensure fairness and equality based on skills and experience.
Another highlight is the clearly defined co-financing mechanism, encouraging the participation of businesses and the private sector in scientific, technological, and innovative tasks.
As a result, the state budget will prioritize support for fundamental and applied research, while the contribution rate of businesses will increase progressively based on the level of technological development and commercialization potential.
