Vietnam Expedites Tech Fund Allocations

Vietnam is ramping up initiatives to boost the disbursement of science and technology funds following reports indicating that financial utilization is lagging behind the national average in early 2026.

Deputy Prime Minister Ho Quoc Dung led a pivotal conference in Hanoi aimed at addressing fiscal barriers and accelerating public investment in areas like science, technology, innovation, and digital transformation. The gathering included ministers, various government bodies, and local representatives.

Officials disclosed that the current disbursement rate for science and technology investments stands at approximately 14.78 percent for 2026, compared to a national average that exceeds 21 percent. The government has labeled this pace as unsatisfactory and prompted ministries and provinces to regard it as a pressing national issue.

Ho Quoc Dung directed ministries, sectors, and local governments to thoroughly address any outstanding issues by June 2026, aiming for a 100 percent disbursement goal for the year. He underlined that science, innovation, and digital transformation are crucial for Vietnam’s future economic advancement and competitiveness.

Minister of Science and Technology Vu Hai Quan mentioned that a legal framework is already in place to assist in science and technology funding. Vietnam has allocated over 103 trillion Vietnamese dong for the sector in 2026, which includes significant funding for digital platforms, databases, and innovative projects.

Despite the substantial budget, several areas face challenges related to procurement processes, investment approvals, unclear technical standards, and delays regarding shared digital infrastructure systems. Some provinces also noted obstacles in executing sophisticated projects involving artificial intelligence, big data, and data warehouse initiatives.

The conference highlighted that Ho Chi Minh City and Hanoi are currently at the forefront in disbursing technology funds, with Ho Chi Minh City surpassing 32 percent and Hanoi nearing 28 percent in disbursement rates.

The Deputy Prime Minister stressed the importance of directing future investments towards strategic technologies, national databases, AI systems, and modern research labs with measurable economic and technological benefits. He cautioned against fragmented spending and called for enhanced accountability from ministries and local authorities.

Vietnam’s government plans to keep refining regulations and financial mechanisms, ensuring that investments in science and technology directly support national development aims, digital transformation, and long-term economic advancement.