Law on amendments to Law on national defense and security industry and industrial mobilization of Vietnam 2025

 

LAW

AMENDMENTS TO LAW ON NATIONAL DEFENSE AND SECURITY INDUSTRY AND INDUSTRIAL MOBILIZATION

Pursuant to the Constitution of the Socialist Republic of Vietnam, amended by Resolution No. 203/2025/QH15;

The National Assembly of Vietnam hereby promulgates the Law on amendments to the Law on National Defense and Security Industry and Industrial Mobilization No. 38/2024/QH15.

Article 1. Amendments to Law on National Defense and Security Industry and Industrial Mobilization

1. Amendments to Clause 1 Article 9:

“1. National defense industry planning and security industry planning are sectoral planning, formulated, appraised, approved, disclosed, and revised in accordance with this Law, the law on planning, and the law on state secret protection.”

2. Amendments to Clause 3 Article 20:

“National Defense Industry Fund, Security Industry Development Investment Fund, and other legal funds for expenditures on the national defense and security industry.”.

3. Amendments to Article 21:

a) Amendments to Clause 1:

“1. Prioritization of the allocation of resources in the 5-year financial plans and annual state budget estimates for tasks of national defense and security manufacturing of core national defense industry facilities, as well as core security industry facilities, based on the balancing capacity of the state budget.”;

b) Amendments to Point a Clause 4:

“a) Core national defense industry facilities shall make provisions for the National Defense Industry Fund; core security industry facilities shall make provisions for the Security Industry Development Investment Fund;”.

4. Amendments to Article 22:

“Article 22. National Defense Industry Fund and Security Industry Development Investment Fund

1. The National Defense Industry Fund is an off-budget state financial fund established at the central level and managed by the Ministry of National Defense of Vietnam to invest in and support the implementation of new and high-risk tasks, programs, projects, and operations, including risk acceptance and venture investment, or the research, design, and fabrication of technical weapons and equipment to develop the national defense industry.

2. The Security Industry Development Investment Fund is an off-budget state financial fund established at the central level and managed by the Ministry of Public Security of Vietnam to invest in and support the implementation of programs, projects, and activities, including risk acceptance and venture investment, to develop the security industry.

3. The National Defense Industry Fund and the Security Industry Development Investment Fund shall be formed from the following financial sources:

a) Support from the state budget;

b) Legal capital sources as decided by competent authorities;

c) Provision from profit after tax as prescribed in Point a Clause 4 Article 21 of this Law;

d) Voluntary contributions of domestic and overseas organizations and individuals;

dd) Contributions from other components of national defense industry complexes to the National Defense Industry Fund; contributions from members participating in national security industry complexes to the Security Industry Development Investment Fund;

e) Other legal financial sources as prescribed by law.

4. Operational principles of the National Defense Industry Fund:

a) Non-profit operation;

b) Management and use for proper purposes, in accordance with the law, in a timely and effective manner;

c) Investment in and support for the implementation of new and high-risk tasks, programs, projects, and activities, including risk acceptance and venture investment, or the research, design, and fabrication of technical weapons and equipment to develop the national defense industry.

5. Operational principles of the Security Industry Development Investment Fund:

a) Non-profit operation;

b) Management and use for proper purposes, in accordance with the law, in a timely and effective manner;

c) Investment in and support for the implementation of programs, projects, and activities, including risk acceptance and venture investment, to develop the security industry.

6. The Government of Vietnam shall stipulate the establishment, management, and use of the National Defense Industry Fund, as well as the establishment, management, and use of the Security Industry Development Investment Fund.

5. Amendments to Clause 2 Article 42:

“2. National defense industry complexes shall have the following functions and tasks:

a) To conduct research, apply science and technology, design, fabricate, test, manufacture, repair, refit, upgrade, modernize, and extend the service life of technical weapons and equipment and technical supplies serving national defense manufacturing and other national defense industry products and services;

b) To master strategic technologies, foundation technologies, and core technologies; to transfer and receive the transfer of advanced and modern technologies;

c) To mobilize national resources for the development of the national defense industry;

d) To research, manufacture, and provide products and services serving the public’s daily needs; to transfer appropriate technologies to the consumer goods industry for socio-economic development;

dd) To enhance international competitiveness and participate in the export of national defense industry products and services.”.

6. Amendments to Point a Clause 2 Article 43:

“a) The State’s assignment of tasks of implementing schemes and programs on the research, design, fabrication, and manufacture of technical weapons and equipment by product specialization; autonomy in coordinating research, production, joint ventures, associations, and mobilizing the capacity of components of national defense industry complexes;”.

7. Amendments to Article 45:

“Article 45. State policies applicable to national defense industry complexes

1. To adopt policies on assignment of tasks, placement of orders, contractor selection, resource support, cooperation, and public-private partnership investment for the implementation of operations of national defense industry complexes.

2. To create favorable conditions to promote joint ventures, associations, and cooperation among components of national defense industry complexes.

3. To encourage the development of national science, technology, and innovation programs, as well as special national science, technology, and innovation programs, for research and development of strategic technologies, foundation technologies, and core technologies that serve the manufacture and fabrication of the systems of strategic weapons and equipment and national defense industry products.

4. To prioritize investment resources for research and application of science and technology; to grant incentives on taxation, credit, and other incentives as prescribed by law; and to develop infrastructure and high-quality personnel for national defense industry complexes.

5. The Government of Vietnam shall elaborate on this Article.”.

8. Section 8, added after Section 7, Chapter II:

“Section 8

NATIONAL SECURITY INDUSTRY COMPLEXES

Article 45a. Functions, tasks, and composition of national security industry complexes

1. National security industry complexes shall be led and oriented by the State, with core security industry facilities as the nucleus, and with the participation of organizations and enterprises inside and outside the People’s Public Security Force that possess resources and scientific and technological capacity to organize the implementation of tasks for the construction and development of the security industry.

2. National security industry complexes have the following functions and tasks:

a) To conduct research, apply science and technology, design, fabricate, test, manufacture, finalize, repair, refit, upgrade, and modernize security industry products and services, focusing on the following groups of products and services: cyber safety and security industry products and services; big data, cloud computing, blockchain industry products and services, and artificial intelligence applications based on national big data; professional technical products, criminal technical products, combat gear, and uniforms of public security authorities; patrol vehicles for coastal and inland waterway routes; fire prevention, firefighting, and rescue products; specialized biotechnology products serving biosecurity; equipment, technical devices, technologies, and services ensuring aviation security; and other products and services as decided by competent authorities.

The Minister of Public Security of Vietnam shall decide the specific list of products and services under the groups of products and services prescribed in this Clause;

b) To master strategic technologies, foundation technologies, and core technologies; to transfer and receive the transfer of advanced and modern technologies;

c) To mobilize national resources for the development of the security industry;

d) To research, manufacture, and provide products and services serving the public’s daily needs; to transfer appropriate technologies to the consumer goods industry for socio-economic development;

dd) To enhance international competitiveness and participate in the export of security industry products and services.

3. The composition of national security industry complexes includes:

a) The nuclei of national security industry complexes, which are core security industry facilities;

b) Participating members of national security industry complexes, including organizations and enterprises inside and outside the People’s Public Security Force.

4. The Prime Minister of Vietnam shall decide the core security industry facilities that serve as the nucleus of national security industry complexes. The Minister of Public Security of Vietnam shall decide the members participating in national security industry complexes.

5. The Government of Vietnam shall elaborate on Clauses 1, 2, and 3 of this Article.

Article 45b. Nuclei of national security industry complexes

1. The nucleus of a national security industry complex is a core security industry facility that possesses sufficient resources and scientific and technological capacity to organize the research, design, fabrication, testing, manufacture, and finalization of security industry products and services.

2. The nucleus of a national security industry complex shall be entitled to the following policies:

a) The policies prescribed in Points c and d Clause 2 Article 43 of this Law;

b) The State’s partial budget support for the implementation of science, technology, and innovation tasks serving the programs on research and manufacture of professional technical devices assigned or ordered by the State;

c) State’s assignment of implementing schemes and programs on the research, design, fabrication, and manufacture of security industry products and services by product specialization; autonomy in research, production, joint ventures, and associations with members participating in national security industry complexes.

3. The nucleus of a national security industry complex shall:

a) Take charge of the research, design, fabrication, testing, manufacture, and finalization of products and services assigned or ordered; organize and coordinate members participating in national security industry complexes in the course of performing tasks;

b) Assume responsibility for the quality of security industry products and services in the performance of tasks;

c) Ensure the protection of state secrets, security, and safety in the course of entering into joint ventures, associations, and contracts with members participating in national security industry complexes;

d) Perform accounting as prescribed by the law.

4. The Government of Vietnam shall elaborate on this Article.

Article 45c. Members participating in national security industry complexes

1. Members participating in national security industry complexes are organizations and enterprises inside and outside the People’s Public Security Force that possess resources and scientific and technological capacity, recognized by decision of the Minister of Public Security of Vietnam; and that conduct research, design, fabrication, testing, manufacture, finalization, and provision of security industry products and services, and other activities within the functions and tasks of national security industry complexes.

2. Members participating in national security industry complexes shall be entitled to the following policies:

a) The State’s protection with respect to their legitimate rights and benefits in the course of participating in the operations of national security industry complexes;

b) Consideration for assignment of tasks, placement of orders, contractor selection, public-private partnership cooperation, or support, investment, and lending through the Security Industry Development Investment Fund to implement schemes and programs on the research, design, fabrication, testing, manufacture, finalization, and provision of security industry products and services by product specialization;

c) Provision and use of information within the scope serving the implementation of tasks and operations of national security industry complexes;

d) Enterprises performing contracts for research, design, fabrication, testing, manufacture, finalization, and provision of security industry products and services shall be entitled to the policies prescribed in Points a, b, and c of this Clause, and to incentives on taxation, credit, land lease, labor, receipt and transfer of technology, and export of security industry products and services in accordance with the law.

3. Members participating in national security industry complexes shall:

a) Participate in the operations of national security industry complexes in accordance with the assigned scope, tasks, plans, and fields, and comply with the concluded contracts;

b) Ensure security and safety in security manufacturing;

c) Ensure the protection of state secrets and technological secrets related to the process of entering into joint ventures, associations, and concluding and performing contracts in accordance with regulations;

d) Comply with inspection and reporting regulations on security industry activities in accordance with the law.

4. The Government of Vietnam shall elaborate on this Article.

Article 45d. State policies applicable to national security industry complexes

1. To adopt policies on assignment of tasks, placement of orders, contractor selection, resource support, cooperation, and public-private partnership investment for the implementation of operations of national security industry complexes.

2. To create favorable conditions to promote joint ventures, associations, and cooperation among components of national security industry complexes.

3. To encourage the development of national science, technology, and innovation programs, as well as special national science, technology, and innovation programs, for research and development of strategic technologies, foundation technologies, and core technologies that serve the manufacture and fabrication of security industry products.

4. To prioritize investment resources for research and application of science and technology; to grant incentives on taxation, credit, and other incentives as prescribed by law; and to develop infrastructure and high-quality personnel for national security industry complexes.

5. Security industry products and services of national security industry complexes shall be entitled to incentives in accordance with the law on bidding and this Law.

6. The Government of Vietnam shall elaborate on Clauses 1, 2, 3, and 4 of this Article.”.

9. Amendments to Point dd Clause 1 Article 68:

“dd) Applying lump-sum expenditure up to the final product or partial lump-sum expenditure in accordance with the Law on Science, Technology, and Innovation.”.

10. Amendments to Clause 6, and addition of Clauses 7 and 8 after Clause 6 Article 79:

“6. Directly direct the operations of the specialized security industry agency and the Security Industry Development Management Council.

7. Establish the Security Industry Development Management Council to coordinate the operations of national security industry complexes and the Security Industry Development Investment Fund, and assist the Minister of Public Security of Vietnam in directing tasks for the construction and development of the security industry.

8. Develop, promulgate, or submit to competent state authorities or persons for promulgation of standards or technical regulations related to security industry products and services; manage the certification of conformity of security industry products and services with corresponding standards or technical regulations.

11. The phrase “an toàn thông tin” (information safety) in Clause 3 Article 29 is replaced with the phrase “an ninh mạng” (cybersecurity);

Article 2. Entry into force

1. This Law comes into force as of January 1, 2026, except for the case prescribed in Clause 2 of this Article.

2. Clauses 1, 2, 3, and 4 Article 1of this Law shall come into force as of March 1, 2026.

This Law is approved by the 15th National Assembly of the Socialist Republic of Vietnam during its 10th meeting session on December 10, 2025.