Improving institutions and laws: Unlocking resources for development in the digital era

At the First Forum on Law-making held on the morning of 22 November bt the National Assembly Standing Committee, the presentation delivered by Nguyen Duc Hien, Deputy Head of the Central Committee for Policy and Strategy, once again underscored a consistent message: the institutional framework must take the lead and pave the way for innovation, serving as a prerequisite for unlocking resources and generating new momentum for national development.

In recent years, with strong political determination, the Party, the National Assembly, and the Government have created a significant shift in the work of building and improving institutions. A series of important laws on science and technology, innovation, digital technology industry, personal data protection, and others have been promulgated; hundreds of subordinate legal documents have been developed, amended, and supplemented to establish a legal framework for the digital economy and knowledge economy. According to Nguyen Duc Hien, Deputy Head of the Central Committee for Policy and Strategy, these figures are not only legislative achievements but also clearly reflect the determination to create a modern, integrated legal environment in line with new development trends.

However, for institutions to truly become a “lever” to unlock resources, many “bottlenecks” still need to be addressed promptly. One of the major obstacles identified is that the management mindset regarding science and technology finance remains heavily administrative and is not suitable for the high-risk nature of research activities. The disbursement rate of the science and technology budget reached only about 60% as of August 2025, and in many localities it is even very low, with some areas almost “freezing” resources. Scientists have to spend too much time on procedures and documentation instead of focusing on creativity – a clear indication that the financial institutional framework has not fully accompanied innovation.

The picture of local science and technology fund activities also raises an urgent requirement to improve mechanisms and policies. There are 36 funds nationwide, but only 14 have disbursed; the total disbursement as of April 2025 is equivalent to the cost of constructing about 2.5 km of expressway. In many major localities, disbursement is zero. This shows that there is still a cautious mentality, fear of responsibility, and a lack of boldness in applying risk-accepting mechanisms – even though this principle has been affirmed in the Party’s and the National Assembly’s resolutions. Financial resources for science and technology, if not “unblocked”, will hardly become a real driver for development.

Another bottleneck emphasized is the institutional framework on intellectual property, commercialization of research results, and technology transfer, which remains slow and inconsistent. Many valuable research works still “remain in drawers” due to obstacles in valuing public assets, unclear mechanisms for establishing and distributing intellectual property rights, and the absence of a favourable framework for enterprises to obtain loans based on intellectual property assets. When intellectual property cannot “circulate” in the market, innovation incentives are limited, the technology market develops slowly, and knowledge resources are not converted into corresponding economic and social value.

In addition, legal gaps regarding new technologies, especially artificial intelligence and digital models, are becoming a significant challenge. Many capable and ambitious enterprises remain “overly cautious to the point of stagnation” because there are no clear regulations on ethical standards, safety standards, or controlled experimental mechanisms (sandbox). The establishment of sandboxes in some fields, such as Fintech, is still slow, with short validity periods, putting Viet Nam at risk of falling behind in global innovation competition if swift and decisive actions are not taken.

From that reality, the presentation at the Forum proposed five breakthrough groups of solutions to continue improving institutions and laws, emphasizing the need to renew legislative thinking, shifting strongly from a management and control mindset to a development-oriented mindset; viewing innovation as a driver and a resource, not merely a sector with potential risks. Alongside this is the review and updating of the current legal system – from foundational laws such as Land, Budget, Public Investment, and Enterprise to guiding decrees and circulars – in a manner that is consistent, open, and minimizes unnecessary procedures, creating conditions for citizens and enterprises to develop.

Improving the intellectual property institutional framework to meet the requirements of the knowledge economy; strongly reforming the financial mechanisms for science and technology, providing tax and credit incentives for innovative enterprises; supporting small and medium-sized enterprises in accessing digital transformation policies; and building an enforcement apparatus that is effective, efficient, transparent, and measures success by the satisfaction of citizens and enterprises – these are concrete contents that reflect the next steps in the work of improving institutions and laws in Viet Nam. When institutions are operated by a professional and responsible apparatus, correct and appropriate policies will quickly enter into practice, turning potential into reality.

It can be affirmed that improving institutions and laws is not only a regular task but also a strategic breakthrough in the country’s new development phase. From the Forum on Law-Making to specific legislative decisions, the spirit that “institutions must take the lead and pave the way for innovation” is being strongly propagated. With high consensus in awareness and action throughout the political system, the work of improving institutions and laws will continue to be promoted, contributing to unlocking resources and generating new drivers for Viet Nam to develop rapidly and sustainably in the digital era.