Fuels propelling Vietnam's technological advancement: PPP guidelines
Vietnam's government has issued Decree 180/2025/ND-CP, a significant step towards integrating private sector dynamism, particularly from technology startups, into the nation's priorities for science, technology, innovation, and digital transformation.
Effective from July 1, 2025, the decree establishes a framework and incentives for public-private partnerships (PPPs) in these fields, aligning with the National Assembly's Resolution No. 193/2025/QH15. The aim is to catalyse breakthroughs by leveraging private sector participation and resources.
The decree identifies four priority areas for PPP encouragement: high and strategic technologies, digital infrastructure, shared digital platforms, and digital technology workforce training. This focus on technology and innovation is further emphasised by the Law on Digital Technology Industry, which comprehensively regulates digital technology, semiconductors, AI, and digital asset industries.
PPPs under this decree may include joint ventures involving public assets, contracts for the operation and maintenance of facilities, and build-transfer arrangements using land fund-based payment methods. The decree clarifies the responsibilities of all parties and the types of eligible projects, aiming for flexibility and openness in investment structures.
To attract private tech enterprises and startups, the decree offers several incentives such as tax preferences, land use exemptions, intellectual property ownership retention, a risk tolerance mechanism, and direct state orders for products and services resulting from PPPs in key scientific, technological, and innovation tasks.
The opportunities presented by Decree 180/2025/ND-CP are numerous. Private tech firms and startups gain structured access to high-value, state-backed projects in science, technology, and digital transformation. The combination of tax breaks, land use incentives, and IP ownership retention lowers barriers to entry and increases the attractiveness of collaboration with the public sector.
However, challenges and considerations also exist. Compliance and bidding processes can be complex, and foreign investors face specific restrictions in certain sectors. Project viability and risk, given the typically long gestation periods and bureaucratic complexities, must be carefully assessed.
In conclusion, Decree 180/2025/ND-CP represents a significant push by the Vietnamese government to foster collaboration between the private sector and national priorities. By offering substantive incentives and clarifying partnership mechanisms, the decree lowers barriers and creates new opportunities for private players. However, success will depend on effective implementation, transparent processes, and the ability of firms to navigate both the opportunities and the complexities of public-private collaboration.
For tech startups like AI Hay, Decree 180/2025/ND-CP is deemed valuable, as it addresses difficulties in data standardisation. The decree also offers extensive state support, including the allocation of up to 70% of total capital for PPP projects to cover construction and site clearance costs. This support is expected to encourage more tech startups to participate in Vietnam's infrastructure development.
The decree's incentives, such as tax preferences, land use exemptions, and intellectual property ownership retention, make it a valuable resource for technology startups like AI Hay, as they aim to collaborate on education-and-self-development, general-news, and other science, technology, and digital transformation projects. Yet, successfully navigating the complexities of public-private partnerships under Decree 180/2025/ND-CP will require careful consideration of compliance, bidding processes, foreign investor limitations, and project risk assessment.
