Page 21 - ISC PROCEEDINGS 21.4

revenue shortfalls than conventional PPPs, especially in the early years of operation. This
is potentially a powerful incentive, but it will only influence investor behavior if
procedures are clearly defined and budgetary commitments are credible. The
Government should therefore specify how compensation mechanisms are triggered,
verified, and financed.
For particularly strategic projects, carefully controlled forms of public guarantee
may also be considered. These should be exceptional rather than routine, but in
nationally important projects involving large technology firms or foreign partners,
selective guarantees relating to procurement commitment or foreign exchange risk may
improve investment confidence. Any such mechanism, however, must remain transparent
and tightly governed to avoid excessive contingent liabilities.
Vietnam should also begin to develop broader financial ecosystems for technology
PPP, including co-financing with banks, investment funds, and international development
institutions. In the longer term, new instruments such as R&D risk insurance could be
explored as a way of reducing firm-level risk aversion in innovation-intensive projects.
5.3. Strengthening implementation and governance capacity
Even well-designed policy will not work without capable institutions. Vietnam
therefore needs stronger organizational and human-resource capacity for innovation-
oriented PPP management. A clear coordinating mechanism should be established at the
central level, involving the main ministries responsible for finance, science and technology,
and investment management. This body should support project appraisal, inter-agency
coordination, and technical guidance for ministries and localities.
At the same time, key ministries, national innovation institutions, and major public
science and technology entities should have specialized PPP focal units. These units need
training not only in project finance and procurement, but also in innovation governance,
technology commercialization, and management of intangible assets.
Specialized training programs should therefore be expanded, potentially in
cooperation with ADB, the World Bank, and other partners. Vietnam should also make
greater use of external expertise, including overseas Vietnamese specialists and
practitioners from major technology firms, in the design and governance of high-tech PPP
projects.
A practical toolkit should also be developed to support project preparation,
contract design, and monitoring. This should include model documents, guidance on
benefit-sharing and intellectual property, project appraisal criteria, and templates for
adaptive contract management. Since innovation projects evolve over time, contract
monitoring systems should allow structured adjustment when technologies, markets, or
project directions change.
Transparency and oversight are equally important. Because PPP projects involve
public resources, the State should disclose key information throughout project
preparation and implementation. A dedicated information portal for science, technology,
and innovation PPPs would improve transparency, reduce uncertainty for investors, and
enable wider expert and social oversight.
Finally, Vietnam must strengthen private-sector readiness. Many domestic firms,
especially SMEs and startups, may still lack experience in preparing PPP proposals,
negotiating contracts, or managing state-linked project requirements. Public support
through training, advisory services, and project development assistance would help

20