Circular 17/2026/TT-BKHCN: Model Charter for Science, Technology and Innovation Development Funds
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Based on:17/2026/TT-BKHCN - Government Official Gazette
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
Circular 17/2026/TT-BKHCN from the Ministry of Science and Technology (effective April 16, 2026) issues a Model Charter for Science, Technology and Innovation Development Funds set up by ministries, central agencies, and provincial People's Committees. It is essentially an internal governance document, setting out how these state funds operate: their structure (Management Council, Executive Agency, Control Board), funding sources, procedures for funding or commissioning science and technology tasks, and risk-management mechanisms. For businesses, particularly those doing R&D, technology application, or technology transfer, the notable point is that these funds can provide grant funding and interest-rate subsidies for technology innovation, and operate a co-financing mechanism - businesses participating in tasks with commercialization potential must contribute part of the funding, with the co-financing share rising as the technology matures. This can be a potential funding channel to support a company's R&D activities. That said, the Circular does not create any new tax, invoicing, labor, or customs obligation for businesses - it is purely a rule governing the internal organization and management of state science funds. Businesses interested in applying for science and technology funding should watch for the specific Charter issued by the relevant ministry or provincial fund to learn the application procedures.
Overview
Circular 17/2026/TT-BKHCN, issued by the Ministry of Science and Technology (MOST) on April 13, 2026, promulgates a Model Charter governing the organization and operation of Science, Technology and Innovation Development Funds established by ministries, ministerial-level agencies, government agencies, other central agencies, and provincial People's Committees. The Circular takes effect on April 16, 2026.
Legal basis
The Circular is issued under the Law on Science, Technology and Innovation No. 93/2025/QH15, the State Budget Law No. 89/2025/QH15, and implementing decrees (Decrees No. 262, 265, 267, and 268/2025/ND-CP).
Application principles
- The head of each ministry, agency, or the chairperson of each provincial People's Committee must issue a specific Charter for its own Fund, consistent with the Model Charter, and send it to MOST within 15 working days of signing.
- Funds already established before this Circular took effect must review and amend their existing Charters within 30 days of the Circular's effective date.
Legal status and objectives
The Fund is a non-profit entity with legal person status, its own seal, and the right to open accounts at the State Treasury and licensed commercial banks. It receives and manages state budget funding plus lawful voluntary contributions and donations, to promote science, technology and innovation activities and to provide funding, commissioning, and support under Article 65 of Law No. 93/2025/QH15.
Functions, tasks and powers
The Fund has three main functions: (1) funding and commissioning science, technology and innovation programs and tasks; (2) providing funding support and interest-rate subsidies for technology application, transfer, and innovation, capacity building, and innovation-ecosystem or startup development; (3) other functions as decentralized or delegated.
Key tasks include: preparing annual financial plans, funding and commissioning S&T tasks, settling accounts, co-financing with businesses or other organizations, comprehensive digital transformation of management operations, annual performance reporting, and handling related complaints.
Powers include: issuing regulations related to funding and commissioning, risk management, evaluating the effectiveness of fund use, suspending or recovering funding when violations are found, cooperating domestically and internationally, and hiring independent auditors.
Organizational structure
The Fund comprises three bodies: the Fund Management Council (advisory, orientation, and oversight), the Fund's Executive Agency (headed by the Fund Director, the Fund's legal representative), and the Fund's Control Board (financial and operational oversight of the Executive Agency). The Management Council and the Director are appointed and dismissed by the head of the relevant ministry or agency, or the provincial People's Committee chairperson. The Director may also establish a Science, Technology and Innovation Council to advise on and evaluate funding activities.
Co-financing with businesses
For S&T tasks tied to business needs with commercialization potential, participating businesses are responsible for co-financing. The state budget's share decreases while the co-financing share increases as technology maturity and commercialization potential rise.
Financial management, oversight and risk management
Fund financing sources are the state budget and lawful voluntary contributions. Budgeting, disbursement, and settlement follow Decree No. 265/2025/ND-CP. The Fund is subject to financial inspection and oversight by its supervising agency and may hire independent auditors when needed.
The Charter sets out a detailed risk-management mechanism: compliance of the lead implementing organization is assessed by the Science and Technology Council or independent experts, with findings recorded in minutes that form the basis for accepting objective risk - protecting organizations and individuals that fully complied with procedures but did not achieve results due to objective causes.
Responsibilities of implementing organizations and individuals
Recipients of funding or commissioning must use funds efficiently and for the intended purpose, take responsibility for the accuracy of declared data, fully perform contractual commitments, and publish research results as required.
Effective date
The Circular takes effect on April 16, 2026. Where any referenced legal document is amended, supplemented, or replaced, the amended or replacing document applies.