MST to allocate $3.8 billion for sci-tech in 2026

The government is expected to allocate VND95 trillion ($3.8 billion) from the state budget for sci-tech in 2026. The plan was outlined at a national conference organised by the Ministry of Science and Technology (MST) on December 10 in Gia Lai province, focusing on the implementation of Decree No.265/2025/ND-CP and guidance on developing plans and budget estimates for science, technology, innovation, and digital transformation.

Speaking at the event, Deputy Minister of Science and Technology Bui Hoang Phuong noted that rapid advances in technologies such as AI and digital platforms are reshaping industries worldwide, requiring countries to adopt flexible, forward-looking policies to harness science, technology, and innovation for sustainable development.

Deputy Minister of Science and Technology Bui Hoang Phuong. Photo: MST

“The politburo has identified science, technology, innovation, and digital transformation as top priorities. In the 2026–2030 period, Vietnam is expected to build a growth model based on knowledge, technology, and innovation to enhance productivity, quality, and national competitiveness,” he said.

To support this direction, the Party, state, and government have committed at least 3 per cent of the state budget to sci-tech, with the policy formalised through decrees, circulars, and related legal instruments. In 2025, an additional VND25 trillion ($1 billion) was allocated for science, technology, innovation, and digital transformation, underscoring the government’s determination.

The MST, however, admitted that in the initial stages, the allocation, and disbursement of new resources faced many challenges. To date, the ministry has closely coordinated with the Ministry of Finance and reported to competent authorities on the allocation of over VND16.7 trillion ($668.4 million) to 26 ministries, central agencies, and localities.

At the fifth meeting of the Government Steering Committee on Science and Technology, Innovation & Digital Transformation and Project 06 on November 15, Prime Minister Pham Minh Chinh concluded that approximately VND95 trillion ($3.8 billion) will be allocated to this field in 2026. This presents both an unprecedented development opportunity and a significant challenge, requiring ministries, sectors, and localities to have the capacity to absorb, deploy, and manage public resources effectively.

Photo: MST

According to Phuong, to effectively utilise this budget, it must begin with planning and budgeting. This is a fundamental step that determines the effectiveness of public investment in sci-tech, innovation, and digital transformation.

Many new regulations have been issued recently, yet planning and budgeting in several units remain unclear and inconsistent. The deputy minister urged relevant parties to discuss and resolve these issues, ensuring a unified understanding and approach in implementing Decree 265.

Decree 265, issued by the government on October 14, provides detailed regulations and guidance on the implementation of several articles of the Law on Science, Technology and Innovation regarding finance and investment in science, technology and innovation. The decree plays a crucial role in establishing a comprehensive and flexible legal framework to strongly encourage science, technology and innovation activities in Vietnam.

Pham Anh Tuan, Chairman of Gia Lai People’s Committee said that Decree 265 has received special attention from management teams, scientists, and sci-tech organisations because it is an important legal foundation that resolves long-standing impediments in the mechanism of managing, allocating, and using the budget.

“Localities face a huge workload, with more than 150 tasks to be implemented as required by the central government and local authorities. However, the lack of specific guidance on expenditure procedures and resource allocation has made many units hesitant, worried about legal risks, and reluctant to implement them. Decree 265 was issued at the right time, creating a unified and clear legal framework to give localities more confidence in organising and implementing it,” he noted.

Vietnam, Japan enhance cooperation in sci-tech, innovation, and digital transformation Vietnam and Japan are expected to see increasing ties in joint research initiatives, technology commercialisation, startup promotion, high-quality human resources, and AI infrastructure development.

16th national conference on nuclear science and technology opens in Danang The 16th national conference on nuclear science and technology (VINANST-16) was held in Danang on October 8.

Golden Globe Science and Technology Awards honour Vietnam’s next generation of talent Vietnam's brightest young minds gathered for the 2025 Golden Globe Science and Technology Awards ceremony in Hanoi on October 29.

Vietnam bets on AI and semiconductors to drive tech transformation A SEMIExpo Vietnam 2025 conference spotlighted AI and semiconductors as the dual engines powering the country’s technological leap.