The Ministry of Science and Technology (MoST) has proposed subsidizing 50 percent of loan interest, capped at 6 percent a year for up to five years, for businesses investing in technology adoption, technology transfer, and technological innovation through the National Technology Innovation Fund.
On July 10, MoST held a workshop on implementing the National Technology Innovation Fund's loan interest subsidy program.
At the workshop, the Ministry proposed a policy to subsidize 50 percent of loan interest, with a maximum subsidy of 6 percent a year for up to five years, for businesses investing in technology adoption, technology transfer, and technological innovation through the fund. The policy is expected to be piloted with 20 companies before being expanded nationwide, with the aim of unlocking credit, encouraging technology investment, and improving productivity and competitiveness.
Speaking at the workshop, Minister of Science and Technology Vu Hai Quan said Politburo Resolution No. 57-NQ/TW identifies science and technology, innovation, and digital transformation as key drivers of Vietnam's new growth model. To achieve these goals, he said, the country must implement comprehensive measures ranging from research and development of core and strategic technologies to building innovation infrastructure, developing human resources, and improving policies to support businesses.
According to Minister Vu Hai Quan, businesses must be at the center of the innovation ecosystem, and all policies should be designed around their practical needs. The Government's role, he said, is to create enabling mechanisms and shared infrastructure that reduce investment costs and strengthen business competitiveness.
The Science and Technology Minister said the core objective of the National Technology Innovation Fund's loan interest subsidy program is to encourage businesses to modernize their technologies in order to improve labor productivity, including companies that are not officially recognized as science and technology enterprises but wish to invest in new technologies.
Under the proposal, the government would support businesses by subsidizing part of their loan interest costs when they obtain bank financing to invest in technology adoption, technology transfer, or technological innovation. The policy is intended not only to reduce financing costs but also to give businesses greater confidence to invest in innovation.
The program aims to support businesses in investing in and upgrading technology, improving productivity and product quality through a loan interest subsidy mechanism. It also demonstrates the government's role as an enabler, helping strengthen business confidence and creating momentum for corporate development, Minister Vu Hai Quan said.
Director Bui Quang Minh of the National Technology Innovation Fund (NATIF) said the proposed interest subsidy policy is based on market principles. Banks would continue to conduct credit assessments, make lending decisions, and manage lending risks. Rather than providing direct funding, the government would subsidize part of borrowers' interest expenses to encourage technology investment.
Under the proposal, businesses undertaking projects involving technology adoption, technology transfer, technological innovation, or innovation activities would be eligible for support if they meet requirements related to project feasibility, legal documentation, economic efficiency, and technological capability.
Priority would be given to projects using technologies included on the national list of technologies encouraged for transfer, high technologies prioritized for development investment, and strategic technologies. The policy would also favor projects that generate high added value and have broad spillover effects across the economy.
The proposed subsidy would cover 50 percent of the interest rate specified in a company's credit agreement, capped at 6 percent a year, for a maximum of five years. The pilot program is expected to run through the end of September 2026, after which it will be reviewed and evaluated before being expanded.
