A robotic arm on a production line at Thống Nhất Hà Nội JSC. — VNA/VNS Photo

HÀ NỘI — The state budget will cover up to 100 per cent of the cost of some strategic technology projects under new rules from the Ministry of Science and Technology.

Circular 49 applies to projects under the special national programme on science, technology and innovation, effective from August 1, 2026. Funding will be released in stages as projects reach set milestones.

Full state funding is available for projects commissioned by the state, for work on core or foundational technologies, and for technologies considered vital to national self-reliance, defence and security. It also applies to projects with a high scientific or technological risk.

Where a project aims to develop a strategic product that can be used, transferred or commercialised, the state will pay up to 70 per cent. The lead organisation and other participants must provide the rest as counterpart funding.

The exact share will depend on the technology's maturity, the level of risk, the ability to raise outside money and the project's commercial prospects and contribution to national competitiveness.

Projects may also draw on non-budget sources, including international cooperation and other external financing.

Payment by milestone

Budgets will be drawn up by work package, each with defined goals, scope, outputs, costs, responsible parties and timelines. They will then be aggregated by evaluation milestone.

Funds will be paid under lump-sum contracts tied to results. An evaluation council's conclusion at each milestone will determine what is paid and whether money is released for the next stage.

If a milestone is met, payment follows the approved lump sum, or actual workload for any part not covered by one. If it is missed, nothing is paid for work under a lump sum tied to the final product.

Where lump sums cover only part of the work, only tasks confirmed as satisfactory are paid.

Parallel research

The managing agency may select two or more organisations or companies to pursue independent approaches to the same goals and evaluation targets. Each will have its own budget, contract, payments and accounts.

If one approach is terminated, its lead organisation is still paid for completed milestones. Unspent or unused State funds must be returned to the budget.

The arrangement allows several technology routes to be tested side by side, with further funding going to the one that delivers.

More freedom, with limits

Lead organisations may move money between spending items within a work package, or between packages within the same milestone.

They may also reschedule counterpart funding and draw on contingency funds. They may not change the total state contribution or the approved counterpart ratio, and must still deliver the contracted outputs.

They will choose and take responsibility for their own contractors and suppliers when buying or renting equipment, goods and services. The choice must comply with procurement law and be open, efficient and free of conflicts of interest.

For urgent projects, lead organisations may advance their own money before state funding arrives. The advance will be counted as project spending for settlement.

Risk and oversight

If a project falls into a category of accepted risk, the lead organisation will not have to repay state money spent in line with the project's goals, content, scope and rules. Repayment applies only to money misused or spent in breach of the rules.

Fraud or deliberate violations will be dealt with under the law.

Lead organisations must update their spending on the National Digital Platform for Science, Technology and Innovation Management.

The managing agency can demand explanations if it sees signs of risk or violations, and in some cases can require an independent audit. — VNS