Ho Chi Minh City to Support Strategic Tech Infrastructure with Up to VND25 Billion

Ho Chi Minh City's People's Council has approved a policy to support the construction and upgrade of research and development infrastructure in strategic technology fields, with financial aid reaching up to VND25 billion (approximately $125,000) per entity. This new policy aims to foster innovation systems and infrastructure development within the science, technology, innovation, and digital transformation sectors. While previous innovation support in Vietnam primarily focused on research activities, commercialization, consulting, training, or financial aspects, this initiative is expected to bridge the long-standing "infrastructure gap" by emphasizing direct investment support for infrastructure. For infrastructure development in strategic technology fields designated by the government (such as semiconductors and AI), support will be capped at VND25 billion per organization or enterprise, not exceeding 50% of the total project cost. Physical infrastructure in other fields will receive up to VND5 billion, and digital infrastructure up to VND3 billion, with both also capped at 50% of total project costs. This policy represents a more substantial investment in the initial infrastructure phase compared to past startup support schemes. For instance, under Resolution 20/2023, support for startups in the acceleration phase was capped at VND400 million. Similarly, Resolution 23/2026 provided up to VND400 million for R&D and pilot production for startups in the digital technology industry. Furthermore, Ho Chi Minh City will offer comprehensive support packages of up to VND145 billion (approximately $7.25 million) to innovation and startup support centers, covering areas such as infrastructure and equipment, technical and initial equipment operation, human resource training, intellectual property protection, commercialization of R&D products, and international cooperation. Disbursement of funds will be managed according to project progress. To mitigate risks, entities receiving funds will be required to provide bank guarantees equivalent to the granted amount before each disbursement. In cases of project suspension or failure due to subjective reasons, funds may be recovered according to regulations. For the period 2026-2030, approximately VND1.405 trillion (about $70 million) is planned as a reference scenario for the entire policy, with VND825 billion allocated for infrastructure support and up to VND580 billion for four centers. This new support policy will take effect from October 1, 2023. Source: VnExpress