Vietnam Revamps Science Fund NAFOSTED for Results-Oriented Research Funding

The Vietnamese government has issued Decree No. 229/2026/ND-CP, dated June 25, 2026, fundamentally reforming the organization and operations of the National Foundation for Science and Technology Development (NAFOSTED). The decree's central objective is to establish the foundation as an independent, transparent, and competitive research funding body operating in line with international standards, marking a significant shift in the state's investment strategy for science, technology, and innovation.

Under the new framework, NAFOSTED will adopt modern operating principles. All funding, commissioning, and support activities are now required to undergo independent peer reviews to ensure academic autonomy, objectivity, and competitiveness. The regulations are designed to uphold scientific integrity and professional ethics while preventing conflicts of interest and avoiding duplication with other state budget allocations.

A key change is the transition from input-based management to a results-oriented model, where the effectiveness and impact of research tasks serve as the primary evaluation criteria. This approach is intended to encourage pioneering and breakthrough research by formally accepting scientific and technological risks within controlled parameters. A comprehensive risk management and oversight framework will be implemented to facilitate high-impact projects while ensuring the efficient use of public funds.

The decree also introduces a breakthrough in financial mechanisms. The state budget will now be allocated to NAFOSTED as a total annual sum, rather than being tied to a pre-approved list of tasks. This grants the foundation significant autonomy to select, approve, and organize the implementation of research projects under its own authority.

According to the Ministry of Science and Technology, these reforms in funding, finance, and governance are expected to transform the foundation into a modern national financial instrument. By operating to international standards, it is positioned to create a powerful driving force for scientific and technological development. The foundation will balance its portfolio between legacy-based, low-risk research and pioneering, high-risk projects, and will also introduce incentive mechanisms for female scientists.

Furthermore, NAFOSTED will support the development of national technological infrastructure. Its mandate includes upgrading and connecting key laboratories, research centers, scientific databases, and digital platforms, as well as enhancing systems for standards, measurement, and testing.