Author:
Nguyen Thi Huyen Anh – Luật sư cấp cao
Vo Nguyen Truc Linh – Legal Department
The year 2026 marks a major turning point as Vietnam officially and comprehensively codifies support policies for innovative startups, replacing previous short-term schemes. With the synchronized implementation of the Law on Science, Technology and Innovation 2025 and Resolution No. 198/2025/QH15, the new legal corridor not only paves the way for young enterprises but also creates substantial room for large corporations in their technology acquisition (M&A) and venture capital strategies, thanks to breakthrough incentives in tax and infrastructure. The following article by CDLAF will share the core points of this legal framework with the expectation of helping enterprises and investors better understand Vietnam’s legal policies for innovative startup activities, one of the spearheads of the country’s economic development in the new era.
1. Overview of Innovation-Driven and Innovative Startup Enterprises
Previously, the support mechanism for innovation-driven startup enterprises in Vietnam was primarily implemented through the Scheme “Support for the National Innovation Startup Ecosystem by 2025” under Decision No. 844/QD-TTg and Circular No. 01/2018/TT-BKHCN.
Pursuant to Clause 1, Article 2 of Circular No. 01/2018/TT-BKHCN, an innovation-driven startup enterprise is an enterprise capable of rapid growth based on the exploitation of intellectual property, technology, and new business models, and has an operating period of no more than 05 years from the issuance date of its initial Enterprise Registration Certificate.
However, after 2025, Vietnam’s legal policies underwent significant changes, shifting from a “scheme-based” support mechanism to the establishment of a comprehensive legal framework on science, technology, innovation, and innovative startups. Concurrently, the term “innovation-driven startup enterprise” was changed to “innovative startup enterprise”. This change is reflected in legal documents such as the Law on Science, Technology and Innovation 2025, Decree No. 268/2025/ND-CP, and Resolution No. 198/2025/QH15.
Under Resolution No. 198/2025/QH15, an innovative startup enterprise is defined as an enterprise established to implement ideas based on the exploitation of intellectual property, technology, and new business models, and capable of rapid growth. This approach demonstrates that the focus of current policies is not limited to the element of “novelty”, but also emphasizes the enterprise’s market scalability, technology commercialization, and growth capacity.
2. Support policies for innovative startup enterprises
Mechanism for recognition and access to support policies for innovative startup enterprises
The Law on Science, Technology and Innovation 2025 has initially established a specific support mechanism for innovative startup enterprises to facilitate these enterprises’ access to the innovation ecosystem and State support policies.
Pursuant to Article 57 of the Law on Science, Technology and Innovation 2025, innovative startup enterprises may request competent authorities for recognition as eligible entities for preferential treatment and support policies in accordance with the law. Accordingly, innovative startup enterprises shall be granted priority in leasing land and utilizing infrastructure within industrial parks, export processing zones, economic zones, high-tech parks, and concentrated digital technology parks; priority in using research equipment, shared laboratories, incubation facilities, and innovation centers; and concurrently be provided with support in information, communication, and trade promotion.
Establishment of innovation centers and innovative startup support centers
Decree No. 268/2025/ND-CP places an emphasis on developing a system of innovation centers and innovative startup support centers at the national and local levels to form a supporting infrastructure for the innovative startup ecosystem in Vietnam. Accordingly, these centers are tasked with implementing support activities for innovation and innovative startups, such as training, coaching, investment matching, trade promotion, supporting technology commercialization, and assisting in the utilization of technical facilities, incubation facilities, and co-working spaces. Concurrently, the centers act as focal points for organizing activities to connect innovation networks and domestic and international venture capital; organizing innovative startup festivals and innovation competitions, as well as providing support in legal consultancy, technology transfer, and intellectual property for innovative startup enterprises. It is evident that the establishment and development of innovation centers and innovative startup support centers aim not only to support individual enterprises but also to build an interconnected innovative startup ecosystem comprising enterprises, investors, research institutions, experts, and state management agencies.
Support activities for the development of the innovative startup ecosystem
Article 59 of Decree No. 268/2025/ND-CP stipulates various activities aimed at developing the innovation system, the innovative startup ecosystem, and promoting the innovative startup culture in Vietnam. Accordingly, the State supports training, coaching, and capacity-building activities for the innovative startup ecosystem; connecting innovation networks and domestic and international venture capital; and organizing trade promotion, product promotion, and market development activities for innovative startup enterprises. Concurrently, enterprises may also receive support in utilizing incubation facilities and co-working spaces, as well as consultancy on technology transfer, legal matters, and the registration and protection of intellectual property rights. In addition, Article 59 allows for the organization of innovation competitions and festivals, communication activities, and support for the commercialization of new products and services in order to foster the development of the innovative startup ecosystem and enhance connectivity among enterprises, investors, innovative startup support organizations, and entities participating in the innovation ecosystem.
Corporate income tax incentives
Pursuant to Article 10 of Resolution No. 198/2025/QH15, innovative startup enterprises shall be exempt from corporate income tax for 02 years and receive a 50% reduction in the tax payable for the subsequent 04 years for income derived from innovation-driven startup activities. The determination of the tax exemption and reduction period shall comply with the provisions of the law on corporate income tax.
In addition, the resolution also provides for the exemption of personal income tax and corporate income tax on income derived from the transfer of shares, capital contributions, rights to contribute capital, rights to purchase shares, and rights to purchase capital contributions in innovative startup enterprises.
3. Specific incentive mechanisms in Ho Chi Minh City
Pursuant to Article 13 of Decree No. 11/2024/ND-CP, innovative startup enterprises, science and technology organizations, innovation centers, and intermediary organizations supporting innovation-driven startups that earn income derived from innovation-driven startup activities generated in Ho Chi Minh City shall enjoy exemption from corporate income tax on such income. The tax exemption period is 05 years from the time the payable corporate income tax obligation arises from innovation-driven startup activities generated in Ho Chi Minh City.
In addition, during the effective period of Resolution No. 98/2023/QH15, organizations earning income from the transfer of capital contributions or rights to contribute capital in innovative startup enterprises in Ho Chi Minh City may also be exempt from corporate income tax on such income, provided that they satisfy the conditions prescribed by the People’s Council of Ho Chi Minh City.
However, in practice, the application of tax exemption and reduction mechanisms for innovative startup enterprises currently still faces certain difficulties due to the lack of comprehensive guidelines on accounting treatment, the determination of income eligible for incentives, and corresponding tax declaration procedures.
4. Support policies for small and medium-sized innovative startup enterprises
In addition to the aforementioned legal framework, Decree No. 80/2021/ND-CP also provides for a specific support mechanism for small and medium-sized innovative startup enterprises. This group of enterprises is prioritized for support in their early stages of development in order to promote research activities, technology application, and the commercialization of innovative products.
Criteria for determining small and medium-sized innovative startup enterprises
Pursuant to Clause 2, Article 2 of Decree No. 80/2021/ND-CP, a small and medium-sized innovative startup enterprise is a small and medium-sized enterprise established to implement ideas on the basis of exploiting intellectual property, technology, and new business models, with the capability for rapid growth.
According to Clause 1, Article 17 of the Law on Support for Small and Medium-sized Enterprises 2017 and Article 20 of Decree No. 80/2021/ND-CP, a small and medium-sized innovative startup enterprise shall be supported when meeting the following conditions and criteria:
- Having an operating period of no more than 05 years from the issuance date of its initial Enterprise Registration Certificate;
- Not having offered securities to the public (for joint-stock companies);
- Producing and trading in products derived from inventions, utility solutions, industrial designs, computer software, mobile applications, cloud computing, or other technological objects and intellectual property in accordance with the law;
- Producing and trading in products created from research activities, trial production, prototypes, or technology perfection;
- Having products that won awards at startup competitions, innovation-driven startup competitions, or science and technology awards;
- Having technological solutions or new business models capable of achieving a minimum revenue growth of 20% for 02 consecutive years, on the basis of analyzing the market share, the capability to develop products and services, and the enterprise’s competitiveness.
Enterprises meeting the above-mentioned criteria may be considered for selection to receive support mechanisms when:
- Having awards or certificates related to innovative startups, science and technology, or high technology;
- Having received investments or investment commitments from innovative startup investment funds or innovative startup support organizations;
- Being selected through an Evaluation Council established by agencies or organizations supporting small and medium-sized enterprises in accordance with the law.
Support contents for small and medium-sized innovative startup enterprises
According to Articles 22 and 27 of Decree No. 80/2021/ND-CP, small and medium-sized innovative startup enterprises may be supported in the following forms:
- Regarding technical facilities, incubation facilities, and co-working spaces: Enterprises may be supported with the costs of renting and using workspaces, technical equipment, laboratories, and facilities serving product research and testing.
- Regarding intellectual property: Enterprises may be supported with the costs of consultancy, registration for the protection of intellectual property rights, and the exploitation and development of intellectual property for products, technology, or business models.
- Regarding the testing and perfection of products and technology: Enterprises may be supported with the costs of testing, inspecting, perfecting prototypes, and perfecting technology and new business processes before launching to the market.
- Regarding in-depth training and coaching: Enterprises may be supported to participate in training and coaching courses on corporate governance, fundraising, product and technology development, and innovative startup skills.
- Regarding information, communication, and trade promotion: Enterprises may be supported in promoting products, participating in fairs, exhibitions, investment connection events, and connecting with domestic and international innovative startup networks.
- Regarding loan interest support: Enterprises may receive state budget support through interest rate subsidies for medium- and long-term loans at credit institutions to implement production and business plans and projects. The interest support rate according to current regulations is 2%/year, depending on the support program and the budget allocation capacity in each period.
In addition, according to Clause 3, Article 10 of Resolution No. 198/2025, small and medium-sized innovative startup enterprises shall be exempt from income tax for 03 years from the issuance date of their initial Enterprise Registration Certificate.
It is evident that Vietnamese law is currently gradually establishing a specific support mechanism for innovative startup enterprises through policies on innovation infrastructure, technology commercialization support, intellectual property support, and tax incentives. However, most of the current support mechanisms are still implemented through programs, schemes, and support policies for small and medium-sized enterprises, rather than through a unified legal mechanism exclusively applicable to innovative startup enterprises.
Time of writing: May 21, 2026
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