9:53:19 AM | 8/15/2026
The proposal to subsidize 50% of loan interest, capped at 6% per year for five years through the National Technology Innovation Fund (NATIF), is considered one of the key policies for turning science, technology, innovation, and digital transformation into drivers of Vietnam's economic growth. Beyond reducing financing costs for businesses, the mechanism is expected to channel more credit into technology investment, improve productivity, and strengthen corporate competitiveness.
Minister of Science and Technology Vu Hai Quan addresses the workshop on implementing the National Technology Innovation Fund
Removing capital barriers to support technology investment
As digital transformation, green transformation, and deeper integration into global value chains accelerate, technology innovation is no longer an option but a prerequisite for many businesses to survive. Yet access to capital remains a major barrier, causing many companies, particularly small and medium-sized enterprises (SMEs), to delay investment or miss opportunities to upgrade their technologies.
In practice, investments in machinery, production lines, digital technologies, and green technologies often require substantial capital, while payback periods are relatively long. As a result, many businesses, despite recognizing the importance of technology innovation, remain reluctant to borrow for such investments.
Against this backdrop, the Ministry of Science and Technology's proposal to subsidize 50% of loan interest, capped at 6% per year for five years through NATIF, is viewed as a major step toward easing financial pressure on businesses.
Under the proposal, businesses undertaking projects involving technology application, technology transfer, technology innovation, or innovation activities would be eligible for support if they meet criteria related to economic efficiency, feasibility, legal documentation, and technological capability.
Overview of the workshop on implementing the National Technology Innovation Fund
A key feature of the policy is that eligibility is not limited to science and technology enterprises but also extends to businesses seeking to invest in new technologies. This broadens access to manufacturers, processors, industrial producers, logistics companies, and service providers, sectors facing growing pressure to innovate and improve productivity.
Speaking at a workshop on implementing NATIF's loan interest support program, Minister of Science and Technology Vu Hai Quan said businesses must be at the center of the innovation ecosystem. According to the minister, all mechanisms and policies should be built around the practical needs of businesses, while the Government's role is to create the enabling environment, develop infrastructure, and establish mechanisms that reduce investment costs and enable enterprises to strengthen their competitiveness.
This message reflects a shift in policymaking. Rather than providing grants, the Government is moving toward sharing financing costs, encouraging businesses to invest proactively while taking responsibility for project performance.
Mobilizing resources for innovation
Beyond supporting businesses, the interest rate subsidy mechanism is seen as a shift from direct assistance to using public funds as seed capital to mobilize private-sector resources.
According to Director of NATIF Bui Quang Minh, the policy is based on market principles. Commercial banks will continue to assess projects, make lending decisions, and manage risks, while the Government subsidizes only part of the interest costs. This approach offers several advantages.
First, the Government does not provide the full investment capital to businesses but subsidizes only part of the financing cost. With the same level of budget resources, it can mobilize a much larger volume of bank credit for technology innovation projects.
Second, direct project appraisal by commercial banks helps ensure that selected projects are efficient, feasible, and meet lending standards. This reduces the risk of scattered investment while improving the efficiency of public spending.
Third, businesses seeking access to the program must develop well-prepared projects, establish clear financing plans, and demonstrate investment effectiveness. This also encourages stronger corporate governance and a longer-term investment mindset.
The Ministry of Science and Technology will also prioritize projects using technologies included in the list of technologies encouraged for transfer, high technologies prioritized for development investment, and strategic technologies. These are areas with strong potential to generate higher value-added, improve labor productivity, strengthen technological self-reliance, and expand Vietnamese businesses' participation in global supply chains.
As major export markets impose increasingly stringent requirements on environmental standards, carbon emissions, traceability, and smart manufacturing, technology investment has become the key to maintaining competitive advantages. Reducing financing costs through interest subsidies is therefore expected to encourage businesses to accelerate their transformation.
Interest subsidies provide financial relief, encouraging enterprises to invest confidently in smart manufacturing systems
Accelerating tech-driven growth
Another notable feature is the Ministry of Science and Technology's decision to launch a pilot program involving 20 businesses before expanding it nationwide.
According to the plan, the pilot phase will run through the end of September 2026 to test implementation procedures and coordination among NATIF, credit institutions, and businesses, while also assessing selection criteria, monitoring methods, and potential risks.
A phased rollout is considered appropriate because this is an entirely new policy. If implemented successfully, the model could become the foundation for a long-term support mechanism for corporate technology innovation. The policy also reflects the Government's commitment to implementing Resolution 57, which identifies science, technology, innovation, and digital transformation as key drivers of the country's new growth model.
For the business community, the benefits extend beyond lower borrowing costs. More importantly, the policy sends a strong signal that the Government is prepared to partner with businesses in strategic investments capable of generating higher productivity and greater value-added.
If implemented effectively, credit capital will increasingly flow into technology innovation projects rather than being concentrated primarily in short-term investments. Businesses will then have greater opportunities to upgrade production lines, adopt digital technologies, develop new products, improve labor productivity, and steadily strengthen their competitiveness in international markets.
Over the long term, the policy's success will not be measured solely by the number of businesses receiving support but also by its ability to foster an innovation ecosystem centered on enterprises, where the Government serves as an enabler, banks provide financial resources, and businesses become the primary investors, innovators, and creators of value.
The Ministry of Science and Technology's proposal to subsidize 50% of loan interest is more than a financial assistance policy. It is a step toward removing capital barriers to technology innovation. If implemented in a coordinated, transparent, and targeted manner, it could encourage businesses to invest more confidently in technology, improve productivity, strengthen competitiveness, and contribute to an economy driven by science, technology, and innovation.
By Huong Hau, Vietnam Business Forum
