The first legal framework for a comprehensive technological transformation has been taking shape since the adoption of Politburo Resolution No. 57-NQ/TW dated December 22, 2024. The Law on the Digital Technology Industry and the Law on Science, Technology and Innovation, developed under the guidance of the Ministry of Science and Technology to realize the core directions of Politburo Resolution No. 57, were both approved by the National Assembly during its ninth session. With many mechanisms described as “unprecedented” for individuals and organizations in the technology space, these two new laws are expected to inject fresh momentum into the sector once detailed implementation decrees are issued.

Starting with talent

At numerous high-level meetings, the phrase “strategic technological autonomy” has repeatedly been emphasized as a vital pillar in building an independent and resilient economy. But achieving true autonomy requires more than just institutional frameworks and a large workforce. Vietnam must cultivate a core team of senior experts and chief engineers, individuals with both the talent and strategic vision to lead the country’s most critical projects and initiatives.

Over the past two decades, Vietnam has carved out a presence on the global tech map. Part of this success stems from local companies expanding internationally together with local scientists making significant contributions to cutting-edge fields such as AI and semiconductors. They form the global Vietnamese talent pool, and is proof that even a small number returning home can spark meaningful breakthroughs for science and technology in Vietnam.

A global study on AI talent found that among the top 100 AI experts worldwide, nearly half are Chinese nationals currently working in China. Yet few realize that it took China four decades to build this talent base. In 1978, the country began sending 3,000 of its brightest students and scholars abroad for training. By 2008, that number had grown to over 800,000. In 2023, it surpassed 1 million. For more than 30 years, China has also rolled out a wide range of incentive policies, offering housing, attractive salaries, and working conditions to entice these high-level professionals to return home. Today, China stands as one of the global leaders in technology.

Vietnam’s path may follow a similar trajectory. The faster Vietnamese scientists return, bringing with them global knowledge and experience, the sooner the country can gain mastery over strategic technologies and deliver breakthrough projects that move the domestic tech sector forward.

Most recently, Party General Secretary To Lam assigned the Ministry of Home Affairs, in coordination with other relevant ministries, to urgently draft and implement a special policy framework for attracting top talent, especially in fields such as AI, semiconductors, and advanced materials. Notably, the directive includes a clear target: the framework must offer incentives powerful enough, including salaries, housing, and working conditions that exceed current public sector norms, to bring at least 100 leading tech experts back to Vietnam. It must be completed by August.

In the near term, the Law on the Digital Technology Industry, which comes into effect at the start of next year, will introduce unprecedented incentives. Beyond tax breaks and favorable residency conditions, it will provide competitive salary and bonus schemes on par with global job markets. From living arrangements and transportation to working environments and research funding, the law is designed to “widen the scope of incentives” in order to attract world-class talent.

Bringing global talent home

One of the most notable developments in this new Law is the removal of institutional barriers to “roll out the red carpet” for truly capable individuals. Vietnamese citizens who meet the criteria for high-quality technology professionals can be directly appointed as public officials or civil servants, without having to go through the usual examinations or selection process. They may even be appointed to management or leadership positions without being constrained by typical requirements such as being on promotion tracks or having a certain number of years of service, provided the organization has a need.

The new policies are also more welcoming to foreign experts. Instead of the previous two-year Temporary Residence Card, those who qualify as high-caliber professionals can now be granted residence permits for up to five years. Their families, including spouses and children under 18, will also receive equivalent residence permits and benefit from favorable conditions for schooling, admission, and employment. They will also be exempt from personal income tax for their first five years working in Vietnam.

Meanwhile, the Law on Science, Technology and Innovation, which will take effect from October 1 this year, will guarantee scientists a minimum of 30 per cent of profits from commercialized research results. Income generated from such research will also be eligible for tax exemptions or reductions.

Research individuals and organizations will be given priority access to funding, loans, and loan guarantees from the National Technology Innovation Fund, the SME Development Fund, and the National Venture Capital Fund, all of which aim to support research and development (R&D) and innovation activities.

One groundbreaking change is the adoption of a lump-sum funding mechanism for all research activities. Once funding is approved, research institutions will have full autonomy in how they allocate expenditures, from salaries and equipment to team formation, while only needing to retain documentation for post-audit purposes.

In addition, if research outcomes fail, scientists will not be held personally liable or required to repay funds, nor will they face civil penalties for risks beyond their control. This offers a new level of “legal safety” for bold innovation; something rarely seen in Vietnam’s public research system until now.

Even before these progressive policies came into place, some top Vietnamese scientists had already chosen to return home. For example, Dr. Bui Hai Hung, formerly Staff Research Scientist at Google DeepMind, returned to Vietnam to become CEO of the VinAI, a subsidiary of Vingroup. Similarly, Professor Ha Vu Van, a well-known theoretical physicist, accepted an invitation from billionaire Pham Nhat Vuong, Chairman of Vingroup, to return and serve as Scientific Director at the VinBigData Institute.

As one senior Vietnamese executive at a multinational corporation put it: “For world-class experts with 20 to 30 years of experience and recognized global reputations, a high salary alone isn’t enough. What they expect is a position worthy of their expertise, and an ecosystem big enough to unleash their full potential.” In that light, even without knowing the full details of its compensation packages, it’s clear that Vingroup’s success in attracting these experts lies in its ability to provide them with a professional environment where their voice matters and their contributions are genuinely valued.

In an earlier conversation with Vietnam Economic Times / VnEconomy, when these laws were still in draft form, Mr. Do Tien Thinh, Deputy Director of the National Innovation Center (NIC), candidly remarked: “We must meet at least 80 per cent of a returning expert’s expectations, then the remaining 20 per cent will come from love for the homeland.”

Given Vietnam’s current limitations in infrastructure, financial capacity, and living and working conditions, which still lag behind major global science hubs, it’s understandable that overseas Vietnamese experts might face hesitation about returning. However, with the current high-level political commitment, experts in the field believe the opportunity for Vietnam to welcome back top-tier professionals from abroad is more feasible now than ever before.