Vietnam Plans Loan Guarantees for Small and Medium Sized Enterprises Investing in Technology
Vietnam’s Minister of Science and Technology Vũ Hải Quân said small and medium sized enterprises rarely establish science and technology development funds because of limited finances, complex procedures and concerns about later audits. The ministry will review the current mechanism with the Ministry of Finance and plans to support firms through bank loan guarantees and interest subsidies, while addressing public procurement and intellectual property valuation.
At a National Assembly question and answer session on science and technology on the afternoon of November 12, Minister of Science and Technology Vũ Hải Quân said businesses, particularly small and medium sized enterprises, rarely establish science and technology development funds. The main reasons are that they see no need for one, worry about complex procedures and the risk of later audits, or have limited income and capital, leaving too little to set aside for technology upgrades.
Vietnam’s Minister of Science and Technology Vũ Hải Quân answers questions from National Assembly deputies on the afternoon of November 12.（VietVance）
Current policy allows businesses to set aside up to 20% of taxable income for a fund supporting science, technology, innovation and digital transformation. Lạng Sơn National Assembly deputy Nguyễn Đặng Ân said businesses set aside about VND 12.7 trillion in 2025, mainly from state owned enterprises; small and medium sized enterprises in mountainous and border areas find it particularly difficult to raise and use such funds. Vũ Hải Quân said the Ministry of Science and Technology would review the mechanism with the Ministry of Finance, including its five year provision, and plans to provide bank loan guarantees and interest subsidies for small and medium sized enterprises short of capital.
On public procurement, Phú Thọ National Assembly deputy Nguyễn Cao Sơn said bidding requirements for experience and revenue exclude some small and medium sized technology firms at the document review stage. Vũ Hải Quân said the projects must still comply with laws on bidding and public asset management. In proposed amendments to the Law on High Technology, the Ministry of Science and Technology has put forward incentives for strategic technology enterprises, including waivers of testing fees and import duties on equipment, as well as a mechanism for purchasing an initial batch of products.
Ho Chi Minh City National Assembly deputy Trần Thị Diệu Thúy said technology startups find it difficult to count assets such as software and patents toward the matching funds required for projects. Vũ Hải Quân acknowledged that technology valuation remains challenging because intangible value is hard to determine, databases of comparable products are limited, and those conducting valuations fear being held responsible. The Ministry of Science and Technology is improving its database, developing valuation forms for selected priority fields and consulting experts. He also described a cooperation project worth about US$13 million that plans to build a simulation and demonstration center in Hanoi and select and train about 30 small and medium sized enterprises to apply artificial intelligence and digital transformation technologies.
Ho Chi Minh City National Assembly deputy Trần Thị Diệu Thúy asks a question during the session.（VietVance）
Source: VietVance
