On July 10 in Hanoi, the Ministry of Science and Technology held a consultation workshop to gather feedback on a proposed loan interest support program administered through the National Technology Innovation Fund (NATIF).

Under the proposal, companies investing in technology application, technology transfer, technological upgrading and innovation would be eligible for government support covering half of the interest payable under their credit agreements, with the subsidy capped at 6% annually for a maximum of five years.

The ministry plans to launch the policy as a pilot program involving 20 enterprises before evaluating its effectiveness and considering wider implementation.

Businesses at the center of the innovation ecosystem

Opening the workshop, Minister of Science and Technology Vu Hai Quan said Resolution 57 identifies science, technology, innovation and digital transformation as key drivers of Vietnam's new economic growth model.

Achieving those goals, he said, requires coordinated efforts ranging from research and development of core and strategic technologies to innovation infrastructure, talent development and policy reforms that support businesses.

The minister emphasized that enterprises should remain at the heart of Vietnam's innovation ecosystem, with policies designed around their real-world needs.

The government's role, he said, is to create favorable conditions by establishing supportive mechanisms and shared infrastructure that reduce investment costs while strengthening business competitiveness.

According to Vu Hai Quan, the proposed NATIF interest subsidy program is intended to encourage businesses- not only certified science and technology enterprises but any company investing in new technologies - to adopt, transfer and develop advanced technologies while improving productivity.

Market-oriented support mechanism

Presenting the proposal, Bui Quang Minh, Director of the National Technology Innovation Fund, said the policy has been designed according to market principles.

Commercial banks would remain responsible for evaluating loan applications, approving financing and managing credit risk in accordance with existing regulations, while the government would subsidize part of the interest cost to encourage technology investment.

The mechanism is expected to create a leverage effect by mobilizing private credit while improving the efficiency of public spending on science, technology, innovation and digital transformation.

Eligibility and pilot implementation

Under the proposal, businesses undertaking projects involving technology application, technology transfer, technological upgrading or innovation would be eligible for support if their projects demonstrate technical feasibility, economic and social benefits, improved productivity, stronger competitiveness and compliance with relevant laws.

Priority would be given to projects using technologies listed in Vietnam's catalog of encouraged technology transfers, high technologies prioritized for development and strategic technologies.

The program also aims to support projects capable of generating high added value and producing broader economic spillover effects.

The proposed subsidy would cover 50% of the loan interest specified in the credit agreement, subject to a maximum support rate of 6% per year for no more than five years.

To test the practicality of the mechanism and the coordination process among NATIF, financial institutions and participating businesses, the ministry plans to pilot the program with 20 enterprises.

The pilot phase is expected to run through September 2026, after which the results will be reviewed before any broader rollout.

Feedback to refine the policy

Participants at the workshop focused on several key issues, including the expected demand for and impact of the policy, eligibility criteria, potential implementation risks and risk management measures, as well as coordination procedures between NATIF, banks and participating businesses.

The Ministry of Science and Technology said feedback gathered during the consultation process will be used to refine the mechanism, ensuring that any future loan interest support program is implemented transparently, reaches the intended beneficiaries and effectively encourages businesses to invest in technology innovation, improve productivity, strengthen competitiveness and enhance technological self-reliance.

Thai Khang