Vietnam has set an ambitious goal of achieving double-digit economic growth and reaching high-income status by 2045. To realize this vision, Mariam Sherman, Country Director for the World Bank in Vietnam, Cambodia, and Laos, emphasized at the 2025 Vietnam Business Forum (VBF) that the country must pursue inclusive, sustainable, and fast-paced development  -  particularly by addressing three major bottlenecks.

These include improving labor productivity, investing in technology and innovation to escape the “outsourcing trap,” and enhancing infrastructure  -  especially clean energy  -  to support long-term growth.

Sherman pointed out that Vietnam’s investment in research and development remains low, at just 0.5% of GDP. Without rapid technological adoption, Vietnam risks becoming stuck between low-cost competitors and more technologically advanced economies.

A need for clarity and incentives in legal reform

Resolution No. 57 of the Politburo clearly outlines a strategy to develop high-tech industries as a key driver of national industrialization and modernization. It also calls for comprehensive legal and policy frameworks to support research, development, application, and technology transfer.

The proposed revisions to the High-Tech Law are aimed at institutionalizing this vision, providing a clear, stable, and appealing legal foundation for high-tech investment, production, and business activities.

The new draft law includes six chapters and 29 articles  -  six fewer than the 2008 version (amended in 2013 and 2014)  -  due to a restructured layout that introduces some formal changes to the current law.

Currently under discussion at the 10th session of the 15th National Assembly, the revised law is expected to promote high-tech production and business investment, and to position science and technology as a key economic growth engine.

Experts have welcomed the government’s efforts, noting that high-tech FDI brings not just capital but also advanced technologies, management expertise, and the opportunity for knowledge transfer to local firms.

However, one controversial issue is how to define high-tech enterprises and determine the corresponding incentives.

At present, the high-tech enterprise certification is only valid for five years, and incentives are limited to that period. Many investors argue that this creates instability and discourages them from pursuing long-term, multi-billion-dollar projects with extended technology life cycles.

The latest draft proposes scrapping the certification process and replacing it with self-assessment against legal criteria to reduce administrative procedures. However, this has sparked concern over inconsistent interpretations by regulatory bodies during post-audit inspections, potentially affecting pre-calculated investor benefits.

In a media statement, Bui Ngoc Tuan, Deputy General Director of Tax and Legal Advisory Services at Deloitte Vietnam, explained that the five-year certificate duration makes it difficult for investors to plan large projects spanning 10–15 years.

He argued that policy stability and predictability are essential for attracting high-tech FDI.

Tuan proposed keeping the certification process but making it more flexible  -  for example, by extending its validity, using digital evaluation tools, or conducting periodic risk-based reviews.

He also noted that countries like Germany, the Netherlands, and India still maintain high-tech enterprise certification, viewing it not only as a management tool but also as a “competency badge” that boosts credibility in global value chains.

Foreign businesses call for consistency and fairness

Speaking on the proposed revisions, Ko Tae Yeon, Chairman of Kocham, said the draft law under parliamentary consideration is of critical importance, serving as a foundation for promoting innovation and strengthening Vietnam’s national industrial capacity.

He described the law as a core pillar for Vietnam’s future high-tech economy.

However, Ko and the Korean business community are concerned that some revisions may reduce or alter existing incentive policies guaranteed under previous investment agreements.

“If the revisions result in narrower incentive coverage or reduced competitiveness, it could negatively impact Vietnam’s medium- and long-term development goals  -  including expanded FDI, technology transfer, and the cultivation of high-quality human capital,” Ko warned.

He emphasized that the revised law must not undermine the motivation of FDI enterprises. The revision process, he stressed, should be rational, balanced, and consistent to avoid destabilizing the investment environment.

Nguyen Le