Law No. 93/2025/QH15 on Science, Technology and Innovation (“STI Law”) officially came into effect on October 1, 2025, establishing a new and relatively comprehensive legal framework for scientific research, technological development, and innovation activities in Vietnam. This law is regarded as a significant milestone in Vietnam’s strategy to attract high-quality investment, particularly research and development (“R&D”) projects undertaken by both domestic and foreign enterprises.
In practice, a growing number of foreign-invested enterprises (“FDIs”) are exploring the establishment of science and technology research centers in Vietnam, especially in high-tech sectors such as cybersecurity, artificial intelligence, big data, semiconductors, and software development. However, selecting the appropriate legal structure and understanding the applicable regulatory procedures from the outset are critical to mitigating legal risks and maximizing access to statutory incentives and policy support.
In this article, BLawyers Vietnam outlines 05 key issues that FDI enterprises should take into consideration from early 2026 when planning the establishment of a science and technology research center in Vietnam.
1. The “Science and Technology Organization” model for R&D centers
Pursuant to the STI Law, a science and technology organization is an entity established in accordance with Vietnamese law to carry out one or more of the following activities:
- Scientific research;
- Technological development; and
- Provision of science, technology, and innovation related services.
Meeting these functional capacities constitutes a core legal prerequisite for an R&D center to be formally recognized and to operate in compliance with applicable laws and regulations.
Importantly, the science and technology organization model is a specialized legal framework designed specifically for R&D activities, distinct from conventional commercial enterprise structures. Conducting research activities through a science and technology organization enables a proper legal characterization of R&D operations, consistent with the principles of autonomy, post inspection, and results based evaluation as emphasized under the STI Law.
In practice, undertaking R&D activities through an ordinary commercial enterprise may prompt regulatory authorities to reassess the substantive nature of such activities, potentially giving rise to legal risks relating to investment conditions, tax treatment, and sector-specific regulatory oversight. Thus, selecting the science and technology organization model at an early stage not only ensures legal compliance but also establishes a robust and sustainable legal foundation for long-term R&D operations in Vietnam.
2. Conditions for establishing a foreign-invested science and technology organization in Vietnam
Pursuant to the STI Law and relevant implementing regulations, FDI enterprises are permitted to establish science and technology organizations in Vietnam and may choose from a range of flexible organizational forms, including:
- Research institutes;
- Research centers;
- Laboratories; and
- Specialized R&D centers.
To operate lawfully in Vietnam, a foreign-invested R&D organization must satisfy the following fundamental conditions:
- Organizational charter and operational objectives that are consistent with Vietnamese law;
- Qualified scientific and technological personnel, together with adequate technical infrastructure and facilities to conduct research activities; and
- Lawful objectives, scope, and fields of operation, ensuring compliance with national defense, security, and Vietnam’s development requirements, and being permitted to establish its working headquarters in Vietnam.
In practice, competent authorities typically focus on assessing the consistency between the stated objectives, human resource capabilities, and physical infrastructure when reviewing establishment applications. Accordingly, establishment dossiers should demonstrate substantive research capacity, rather than mere formal compliance.
3. Recognition as a research and development center
Following lawful establishment and a period of stable operation, a foreign-invested science and technology organization may apply for official recognition as a R&D center, provided that it satisfies the conditions prescribed by law.
Such recognition carries significant legal and practical implications, as it constitutes formal acknowledgment by the Vietnamese State of the organization’s research capabilities and role. Moreover, recognized R&D centers gain a legal basis to access various State incentives and support policies, including those relating to taxation, land use, financing, and research collaboration.
In practice, this recognition mechanism is commonly viewed by FDI enterprises as a subsequent development stage, applicable to organizations that have demonstrated sustained research and technological development capacity.
4. Incentive and support mechanisms from the Vietnamese State
A central policy objective of the STI Law is to strongly encourage enterprises’ R&D activities, particularly projects involving high technology, strategic technologies, and significant spillover effects.
Subject to the applicable model and the degree of compliance with statutory requirements, foreign-invested science and technology organizations and recognized R&D centers may access various incentive and support mechanisms, including:
- Tax incentives applicable to scientific research, technological development, and innovation activities;
- Priority access to land and infrastructure in industrial parks, export processing zones, economic zones, high-tech parks, high-tech agricultural zones, and concentrated digital technology zones;
- Priority use of shared research and development facilities, including common laboratories, incubation facilities, and innovation centers;
- Support for information dissemination, communications, and trade promotion, as well as other incentives and assistance in accordance with law;
- Support for research infrastructure and laboratory facilities, including connectivity with research institutes and higher education institutions; and
- Policies for attracting and retaining talent, including domestic and foreign experts and scientists.
In practice, these incentives are not automatic, but rather contingent upon the organization’s operational field, level of compliance, and the specific policy framework in effect at the relevant time.
5. Practical risks and key considerations for enterprises from early 2026
Despite the relatively clear legal framework, enterprises should pay particular attention to 03 following issues:
- Clearly distinguishing science and technology organizations from conventional commercial enterprises to ensure the correct licensing regime and regulatory oversight;
- Aligning R&D project documentation and operational descriptions with the investment objectives and policy orientation of the STI Law; and
- Compliance with regulations on foreign personnel, intellectual property, information security, and technology transfer, particularly in sensitive sectors such as cybersecurity.
In addition, enterprises are advised to proactively assess their eligibility for R&D center recognition at an early stage, thereby facilitating subsequent recognition procedures and access to State incentives.
Legal Support from BLawyers Vietnam
BLawyers Vietnam can assist enterprises with the following:
- Advising on the appropriate legal model under the STI Law;
- Advising on conditions, documentation, and procedures for establishing a foreign-invested science and technology organization;
- Assisting with registration and applications for recognition as a research and development center; and
- Advising on related legal matters concerning investment, labor, technology, intellectual property, and regulatory compliance in Vietnam.
The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. BLawyers Vietnam would love to hear from you.
Date: 15 January 2026
Writer: Ha Le
