Decree 180/2025/ND-CP Policies and Incentives for public-private partnerships in Science, Technology and Innovation

On 1 July 2025, the Government of Vietnam issued Decree No. 180/2025/ND-CP regulating mechanisms and incentives for public-private partnerships (PPP) in the areas of science, technology, innovation, and digital transformation (Decree 180). The Decree was issued pursuant to Resolution No. 193/2025/QH15 of the National Assembly (Resolution 193), which provides for special pilot mechanisms and policies to promote breakthroughs in science, technology, innovation, and digital transformation. The Decree aims to utilise private sector resources in strategic sectors through varied PPP models, offering substantive incentives and clarity on intellectual property rights, revenue sharing, and access to data. It applies to central and local state agencies, public service units, as well as domestic and foreign organisations and individuals participating in investment activities, scientific research, technology development, innovation and digital transformation.

1. Four Priority Fields for PPP Encouragement

Under Decree 180, there are four specific areas that are identified for PPP encouragement, particularly:^[1]

(i) High and Strategic Technologies

(a) High-tech or strategic technology under Vietnamese law on high technology, law on science, technology and innovation (e.g., AI, cloud computing technology, Blockchain technology)

(b) Infrastructure for technology and innovation

(ii) Digital Infrastructure

Infrastructure supporting the development of the digital economy, digital society, and digital Government, which aligns with the Government’s digital infrastructure strategies.

(iii) Shared Digital Platforms

Digital platforms for the public sector, governed under Resolution 193, including national database, digital national and regional information systems, information system for handling administrative procedures, smart monitoring and operation centre, national public service portal, project for developing population data applications, and other information technology and digital transformation projects.

(iv) Human Resource Development in Digital Technologies

Investment in digital, industrial technology, human resource education, and infrastructure for developing human resources in digital technology and industrial digital technology, including:

(a) Online learning platforms and digital universities

(b) Facilities for technology training and research institutes

(c) Training programmes involving domestic and international collaboration

These are the fields where PPP can be applied with many special incentives from the State.

2. Key Incentives for PPP Participants

Decree 180 provides several State incentives for organisations and individuals participating in PPP investment in these fields, including:

(i) Tax Incentives^[2]

Research and Development expenses are deductible up to 200% when calculating corporate income tax.

(ii) Land Incentives^[3]

Exemption/reduction in land use and rental fees in accordance with the law.

(iii) Ownership of Research and Development Results^[4]

Private investors may retain intellectual property rights and data rights subject to contract terms and legal regulations.

(iv) Risk Sharing & Revenue Guarantees

(a) Allow the application of risk acceptance mechanisms in scientific, technological and innovative activities according to the provisions of the law^[5]

(b) One hundred per cent (100%) revenue shortfall compensation during the first 3 years of operation for eligible PPP projects^[6]

(c) Right to terminate contract prematurely and have investment reimbursed in certain cases if the project fails despite State support^[7]

(v) Access to data managed by state agencies^[8]

Free access for non-profit projects and preferential fees for commercial projects.

Decree 180 introduces specific mechanisms, incentives, and guiding policies to promote PPP in the science, technology, innovation, and digital transformation sectors. The Decree is expected to encourage greater participation by organisations and individuals in national innovation and digital initiatives, provided that relevant authorities issue timely and practical guidance.

Click here to download: Legal Update - Decree 180/2025/ND-CP Policies and Incentives for public-private partnerships in Science, Technology and Innovation.pdf
 

[1] Article 2 of Decree 180.

[2] Article 5.1 of Decree 180.

[3] Article 5.2 of Decree 180.

[4] Article 5.3, 6 and 7 of Decree 180.

[5] Article 5.4 of Decree 180.

[6] Article 17.3 of Decree 180.

[7] Article 17.4 of Decree 180.

[8] Article 7.3 of Decree 180.

This material provides only a summary of the subject matter covered, without the assumption of a duty of care by Frasers Law Company.
The summary is not intended to be nor should be relied on as a substitute for legal or other professional advice.

© Copyright in this article is owned by Frasers Law Company