Vietnam’s New Decree Allows Viettel to Use Science and Technology Fund for Venture Investment
Effective November 11, 2026, Vietnam’s Decree No. 404/2026/NĐ-CP allows Viettel and its subsidiaries to use their corporate science and technology development funds for venture investment within specified limits and sets rules for handling capital and assets during internal restructuring.
Vietnamese Deputy Prime Minister Nguyễn Văn Thắng signed Decree No. 404/2026/NĐ-CP on behalf of the government, establishing special operating and financial management mechanisms for certain enterprises for which the Ministry of National Defence acts as the owner’s representative, as well as other enterprises undertaking military and national defence tasks. The decree includes specific provisions for Viettel Group (Tập đoàn Viettel) and takes effect on November 11, 2026.
For venture investment, Viettel’s parent company and its subsidiaries may use funds from their corporate science and technology development funds up to an amount equal to 5% of annual taxable income. They may undertake investment activities prescribed by law, invest in or contribute capital to national and local venture capital funds, and establish limited liability companies or joint stock companies, alone or with others, to conduct venture investment. Investment methods include taking stakes in enterprises and innovative startup projects, purchasing shares or equity interests, and investing in or helping establish related funds.
A company established under these provisions must be controlled by Viettel’s parent company, a subsidiary, or the parent company and its subsidiaries together. Its objectives, functions, and operating and management mechanisms must be formulated in accordance with the legal provisions governing the national venture capital fund and specified in its charter.
The decree also provides that when capital and assets are transferred between single-member limited liability companies wholly owned by Viettel’s parent company, they are transferred as they stand at their book value at the time of transfer, without payment or asset revaluation. The corresponding increases and decreases in capital and assets are recorded at book value. This principle also applies to qualifying internal consolidations, mergers, divisions and separations, and to the merger of a wholly owned subsidiary into the parent company.
Source: VietVance
