Decree No. 271/2025/ND-CP: A New Mechanism to Commercialize Intellectual Property and Promote Academic Spin-offs
On October 15, 2025, the Government issued Decree No. 271/2025/NĐ-CP (“Decree 271”) on the establishment of enterprises, participation in enterprise formation and capital contributions for the commercialization of scientific research results and innovative technologies in Hanoi. This marks an important step forward in improving the legal framework and creating an enabling environment for the exploitation and commercialization of intellectual property (“IP”). The Decree directly supports the strategic directions set out in the Politburo’s Resolution No. 57 on breakthroughs in the development of science, technology, innovation, and national digital transformation.
Intellectual property is increasingly recognized as a critical asset in modern knowledge-based economic development. Yet, in Vietnam, research results generated by public institutions have traditionally stopped at academic publication, with very few progressing into marketable products. This long-standing “research – publication – archiving” model has limited the economic and social impact of publicly funded research.
Decree 271 aims to transform this model by formally recognizing the economic value of intellectual assets and creating pathways for their commercialization. In doing so, it lays the foundation for a new wave of academic “spin-offs”—enterprises built on research results and technologies developed within universities and research institutes.
For the first time, Decree 271 establishes a legal basis for public institutions in Hanoi, including universities, research institutes and other public science and technology organizations, to contribute research outcomes and intellectual property as capital in enterprises. The Decree also encourages scientists to take an active role in enterprise creation and management, enabling them to directly participate in and benefit from the commercialization process.
Capital contributions permitted under the Decree include funds from development and science and technology funds, lawful grants and aid, intellectual property rights, technological R&D results, and other assets recognized by law. Public officials and civil servants may participate in capital contribution and enterprise management under this mechanism, subject to approval from their institutional leadership.
Decree 271 represents a substantial shift in governance thinking. Instead of conducting research solely to fulfil assigned tasks, universities and research institutes now have a mechanism to translate ideas and inventions into marketable products, generating revenue for reinvestment in further research.
By shifting from a task-based research approach to a model that links research with commercialization, Decree 271 signals a substantial change in governance thinking. Universities and research institutes now have a clear incentive and mechanism to translate ideas and inventions into market-ready products, generate revenue, and reinvest in future research and innovation activities.
Currently, the mechanisms introduced by Decree 271 are being piloted in public institutions in Hanoi. If successful, they may provide a model for broader national application in the coming years.