The Government has issued Decree No. 229/2026/ND-CP, dated June 25, 2026, outlining the organization and operation of the National Foundation for Science and Technology Development (NAFOSTED).
A key highlight of the Decree is the first-ever explicit goal to build NAFOSTED as an independent, transparent, and competitive research funding model aligned with international standards. This is considered a pivotal shift in the State’s investment mechanism for science, technology, and innovation.
The Decree establishes modern operating principles, stipulating that all funding, commissioning, and support activities must be conducted through independent peer reviews. This ensures academic autonomy, objectivity, transparency, and competitiveness while upholding scientific integrity and professional ethics. It also aims to prevent conflicts of interest and avoid duplication with other budget sources.
Notably, NAFOSTED is transitioning from input-based management to a results-oriented approach, using the effectiveness and impact of tasks as the primary evaluation criteria. This mechanism not only encourages pioneering and breakthrough research but also accepts scientific and technological risks within controlled parameters. Simultaneously, it establishes a risk management and oversight framework throughout the implementation process, facilitating high-impact research while ensuring the efficient use of state resources.
The Decree also marks a breakthrough in financial mechanisms. State budget allocations will now be provided as a total annual sum rather than being tied to a pre-defined list of tasks from the outset. This allows the Foundation the autonomy to select, approve, and organize the implementation of tasks under its own authority.
According to the Ministry of Science and Technology, with these breakthrough mechanisms in funding, finance, governance, and resource mobilization, the Foundation is positioned to become a modern national financial tool. Operating under international standards, it is expected to create a powerful driving force for the development of science, technology, and innovation.
The Foundation will manage its funding, commissioning, and support activities based on outputs, efficiency, and impact. It aims to balance legacy-based, low-risk research with pioneering, high-risk breakthrough projects. By accepting scientific and technological risks within controlled limits, the Foundation encourages creativity and innovation while respecting the objective laws and unique characteristics of scientific activities. Additionally, the Decree includes incentive mechanisms for female scientists.
Furthermore, the Foundation will support the formation and development of technological infrastructure. This includes upgrading, sharing, and connecting key laboratories, research and testing centers, scientific databases, digital platforms, and systems for standards, measurement, and testing.
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