From April 1, 2026, the new Law on Technology Transfer will officially take effect, bringing strategic changes to promote endogenous capacity and modernize the country’s key sectors. This is considered an important turning point helping businesses access new incentive policies while improving the quality of people’s lives through technology.
- Priority for the dissemination of technology serving social welfare One of the brightest highlights of the new Law is the State’s commitment to prioritizing the purchase and dissemination of technology (including both ownership and usage rights) to directly serve the public interest. Specially focused areas include:
- Medical and Education: Transferring advanced technologies to enhance the quality of healthcare and teaching.
- Environmental Protection & Disaster Prevention: Applying technology to respond to climate change and epidemics.
- National Defense and Security: Serving important national projects.
Note: Technology procurement from the state budget must ensure 04 criteria: High utility value, suitable implementation capacity, clear IP rights, and transparent budget utilization.
- “Massive” incentive policies for projects with technology transfer To attract high-quality FDI inflows, the State applies strong incentive measures for foreign investment projects involving:
- Transfer of high-tech and strategic technology into Vietnam.
- Training of high-quality local human resources.
- Developing R&D, design, and manufacturing capacity in Vietnam.
Businesses performing these activities will enjoy a special incentive package regarding: Tax (Corporate Income Tax, Import Tax), land lease, credit limits, and other administrative support mechanisms.
- Encouraging capital contribution with domestic technology The new Law creates a clear legal corridor for individuals, organizations, and businesses in Vietnam to contribute capital in the form of technology. This technology must be generated from actual R&D and innovation activities. The State will support businesses through:
- Technology valuation.
- Establishing legal ownership/usage rights of technology.
- Optimizing procedures related to intellectual property when converting into capital contributions.
- Ending dependence, heading towards “Mastering Technology” The amended Law expands the concept of technology transfer, not just stopping at buying and selling machinery but emphasizing the innovation factor. Enhancing endogenous capacity: Requiring the recipient to be capable of receiving, operating, and most importantly, improving technology. This aims to prevent Vietnam from becoming a “dumping ground” for old technologies or being completely dependent on foreign suppliers. Right to improve: The transferee has the full right to improve and develop the purchased technology to suit production reality, based on the provisions of the Intellectual Property Law.
General Assessment With these new regulations, the 2026 Technology Transfer Law is not only a management tool but also an economic “lever.” Technology enterprises and investors need to proactively review their technology portfolios, prepare appraisal dossiers, and grasp tax incentive frameworks to optimize business operations in the new phase.
Do you need detailed advice on technology transfer procedures or tax incentives under the new Law?
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Email: info@sblaw.vn
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