New law passed to strengthen technology transfer

On December 10, the National Assembly passed the amended Law on Technology Transfer, marking an effort to refine the legal framework, encourage innovation, enhance enterprises’ capacity to absorb new technologies, and create further advancements for technology transfer, in line with the Party’s guidelines and state policies.

One of the key highlights of the law is the addition of clear definitions of green technology and contactless technology transfer, a form of transfer through electronic or digital environments, reflecting the strong development of digital transformation and online technology cooperation models.

Photo: MST

The law introduces many new priority policies, particularly encouraging the transfer of high technology, strategic technology, advanced technology, green technology, and clean technology from abroad to Vietnam; promoting the diffusion of technology from foreign-invested enterprises (FIEs) to domestic enterprises; and strongly supporting technology transfer activities in disadvantaged areas, mountainous regions, islands, and in the agricultural and rural sectors.

The law emphases investment, tax, land, and credit incentives for FIEs’ projects that involve technology transfer, human resource training, or the development of research, design, and manufacturing capabilities in Vietnam.

To create flexibility and reduce risks when businesses adopt new technologies, the amended Law on Technology Transfer introduces three new mechanisms for the first time: temporary technology transfer, allowing testing within a defined scope and timeframe to assess suitability before widespread investment; results-based technology transfer: the value and obligations between parties are established based on the ability to meet technical, economic, and environmental criteria; and controlled testing in technology transfer activities, consistent with the sandbox model currently applied in many innovation fields.

To improve management efficiency, the law adds regulations such as tightening the technology assessment process in investment projects, especially for technologies with restricted transfer or those posing a risk of adverse environmental impact; clearly defining the responsibilities of provincial People's Committees in receiving, assessing, and licensing technology transfer; strengthening inspection, supervision, and evaluation of the effectiveness of technology transfer using state budget funds; and encouraging the public disclosure of technology transfer information on the national digital platform for science, technology, and innovation management.

Regarding support for businesses and promoting the commercialisation of research results, the law has many support policies such as supporting businesses in technological innovation through the National Technology Innovation Fund and the system of science and technology funds; the state investing in the development of a network of innovation centres, startup support centres, and intermediary organisations of the sci-tech market; and allowing the state to purchase and disseminate technology for national defence, security, or public purposes.

The law will take effect from April 1, 2026.

Vietnam sees a low rate of technology transfer from FIEs Vietnamese authorities highlighted the significant role of overseas funding in the nation's economic transformation and focused on the need to improve technology transfer mechanisms.

Vietnam seeking technology transfer into the local sphere Promotion of foreign tech transfer investment is on the rise, but there are questions over absorption and spillover effects.

Promoting technology transfer for drug and vaccine production in Vietnam The Health Strategy and Policy Institute (HSPI) under the Ministry of Health held a conference on December 25 to promote technology transfer for drug and vaccine production in Vietnam.

Promoting pharma technology transfer with more policy support Experts have urged Vietnam to issue more support policies to facilitate technology transfer in pharmaceuticals and vaccine manufacturing, enabling it to achieve the ambitious goal of becoming a regional hub for the latest medication.