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However, applying PPP to high-tech innovation remains relatively new in Vietnam.
Historically, Vietnam’s PPP framework was primarily designed for traditional
infrastructure sectors such as transport, energy, and water supply under the 2020 Law on
Investment under the Public-Private Partnership Model and related implementing
regulations. Innovation-related collaboration between the State and enterprises often
existed in practice, but usually through fragmented mechanisms rather than a coherent
legal and policy framework specifically tailored to technology development, R&D, digital
infrastructure, or commercialization. This institutional gap limited the ability of PPP to
function as a systematic policy tool for innovation.
A major change has recently occurred. The promulgation of the 2025 Law on
Science, Technology and Innovation and Decree No. 180/2025/ND-CP marks an important
policy transition by explicitly opening space for PPP in science, technology, innovation,
and digital transformation. These legal instruments extend PPP into areas such as high-
tech projects, digital infrastructure, digital platforms, innovation centers, human resource
training, and technology commercialization. They also introduce more flexible incentive
and risk-sharing arrangements than those traditionally associated with infrastructure
PPPs. This signals Vietnam’s intention to use PPP not only to build physical assets, but also
to support innovation ecosystems and strategic technological capability, (Government,
2025).
Yet the creation of a legal framework does not automatically ensure effective
implementation. Vietnam is still at an early stage in developing PPP in high-tech
innovation, and important questions remain unresolved. These include: how to identify
viable projects; how to structure contracts for uncertain and intangible innovation
activities; how to distribute risks and returns fairly; how to protect intellectual property
and commercialization rights; how to coordinate ministries, local authorities, research
institutions, and firms; and how to build confidence among private investors in a field that
remains high-risk and institutionally new.
International experience is therefore relevant, but mainly as a source of comparison
and policy learning rather than as the central object of analysis. Several countries have
used PPP to support innovation with varying degrees of success. Some have achieved
major breakthroughs through mission-oriented procurement, venture co-investment, or
strategic research partnerships. Others have experienced project failure due to weak
governance, poor incentive design, or misaligned risk allocation. For Vietnam, the key
challenge is not simply to import foreign models, but to understand how lessons from
abroad can inform policy design under domestic conditions.
Against this background, this article addresses four questions. First, what
theoretical arguments explain the role of PPP in high-tech innovation? Second, what is
the current state of PPP policy and implementation in high-tech innovation in Vietnam?
Third, what relevant lessons can be drawn from selected international experiences?
Fourth, what policy directions should Vietnam prioritize to improve the effectiveness of
PPP in this field? On that basis, the article makes three contributions. It provides an
updated analysis of Vietnam’s emerging PPP framework for high-tech innovation; it links
PPP theory with innovation governance in a Vietnamese context; and it proposes policy
implications grounded in both domestic developments and international comparison.
2. Theoretical foundations and literature review on public-private partnerships in
high-tech innovation

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