Vietnam’s Decree No. 249/2025/NĐ-CP represents a significant step to address shortages in high-level scientific and technological human resources amid intensifying global competition for talent. By introducing flexible recruitment mechanisms, market-oriented compensation, professional autonomy, and comprehensive family support, the decree shows Vietnam’s commitment to innovation and digital transformation. Challenges remain in practical application, yet its impact on talent availability, research capacity, and innovation ecosystems will be relevant considerations for foreign investors operating in Vietnam.

Vietnamese context and situation

Imperative from government orientation

Vietnam has clearly articulated that science, technology, innovation and digital transformation are foundational drivers for national development. The Resolution 57-NQ/TW designates these areas as the foremost strategic breakthrough for socioeconomic progress, modernization and global integration. The resolution aims to leverage innovation and digital transformation to enhance productivity, upgrade production structures, and prevent development stagnation in the face of the Fourth Industrial Revolution[1]. To achieve the target stated in the resolution, human resources are identified as one of the most valuable assets.

Shortage of high-quality human resources

Vietnam has seen progress in participation in higher education and workforce expansion. From 2015 to 2023, the number of people engaged in scientific research and technological development increased steadily with a CAGR of 3.53%. The proportion of experts having a PhD is on the rise [2].

Number of people engaged in scientific research and technological development in Vietnam (2015-2023)

Unit: %

Source: National Statistics Office

However, Vietnam continues to face significant shortages in high-quality scientific and technological human resources. In the information technology sector alone, Vietnam is projected to need about 700,000 IT workers by 2025, but domestic institutions currently produce only a fraction of that number with adequate job-ready capabilities[3].

Moreover, multiple assessments highlight that while enrollment in tertiary programs in STEM has grown, many graduates lack practical skills and industry-aligned competencies. Because of the imbalance between training programs and the practical needs of the labor market, only about 30% of IT graduates meet the requirements of businesses[4].

Global competition for talents

Vietnam’s geographical position in East and Southeast Asia places it at the crossroads of some of the world’s most dynamic innovation ecosystems. In 2025, Vietnam ranked 44th in the global list and ranked 9th among South East Asia, East Asia, and Oceania region, behind neighboring innovative economies such as China, South Korea, Japan, Singapore and Hong Kong [5].

This proximity presents both opportunities and intense competition for highly skilled talent, as these economies attract and retain experts through their innovation capacity, established research ecosystems, and deeper integration into global value chains.

Top 10 Global Innovation Index (GII) 2025 in South East Asia, East Asia, and the Oceania region

Unit: GII score

Source: World Intellectual Property Organization

At the same time, Vietnam faces the challenge of brain drain. According to World Bank, about 65% of Vietnam’s talent currently resides and works abroad, particularly in high-growth sectors and advanced technology markets[6]. This situation is reinforced by a long-standing vicious cycle: many high-performing graduates pursue doctoral studies abroad and do not return, while those who remain in Vietnam often encounter constraints such as limited research funding and outdated laboratory infrastructure. Vietnam faces difficulty when competing with the economic incentives and resources offered by regional neighbors: not only higher salaries, but also foreign innovative hubs provide talents with deeply developed R&D environments and global networks.

The issuance of Decree 249/2025/ND-CP

In response to the context, Decree No. 249/2025/NĐ-CP on mechanisms and policies for attracting experts in science, technology, innovation and digital transformation for the public sector was issued.

Highlights of Decree 249/2025/ND-CP

Source: B&Company, summarized from Decree 249/2025/ND-CP

One of the most significant aspects of the decree is the degree of professional autonomy granted to experts[7]. Equally important is the market-oriented compensation framework. Unlike traditional public-sector regimes constrained by rigid salary scales, Decree 249 allows salaries to be fully negotiated based on expertise, role, and market conditions.

Moreover, after completing their assigned duty, experts can be assigned to leadership and management positions in public service units without being bound by age, functional planning, political theory qualifications, or consecutive tenure as before[8].

Furthermore, by extending support to family members, the policy recognizes that talent attraction is not solely an individual decision but a household-level one.

Challenges and limitations of the Decree

The decree’s success depends heavily on implementation capacity at the ministerial, sectoral, and local levels. Many public agencies lack prior experience in negotiating market-based salaries, managing performance-based contracts, or evaluating high-level international experts[9].

Despite significant autonomy being granted on paper, in practice, administrative controls may still limit actual decision-making power. If legacy approval processes, procurement rules, or internal hierarchies are not reformed in parallel, experts may experience a gap between formal authority and effective autonomy.

While Decree 249 offers strong incentives, non-financial integration challenges remain for experts. Language barriers and differences in working culture may affect foreign experts’ ability to operate efficiently. Even Vietnamese experts can encounter cultural shock when relocating to the public sector. Without a transition phase and support from talent management systems, experts may spend excessive time navigating cultural complexities rather than focusing on core technical work[10].

Conclusion and implication

The decree reflects Vietnam’s determination to strengthen its national science, technology, innovation, and digital transformation capacity.

For foreign investors, this creates long-term opportunities. A stronger public-sector research base and more globally connected experts can enhance technology transfer, raise local absorptive capacity, and improve the quality of collaboration with Vietnamese partners. Investors in high-tech manufacturing, R&D centers, digital services, and advanced industries should monitor how Decree 249 translates into improvements in research infrastructure, regulatory sophistication, and talent ecosystems. Those are factors that directly affect project feasibility and innovation outcomes even outside the public sector.

At the same time, foreign investors may also face emerging challenges. As Vietnam intensifies competition for top talent (both domestically and internationally) private firms may experience tighter labor markets and upward pressure on wages for highly skilled professionals. Investors should therefore pay attention to talent competition and workforce development strategies as Vietnam transitions toward a more innovation-driven growth model.

* If you wish to quote any information from this article, please kindly cite the source along with the link to the original article to respect copyright.

Read more

Vietnam Labor Market update: Regional minimum wage increase effective January 1, 2026

The IT workforce market in Vietnam – Opportunities for collaboration with foreign enterprises

[1] Dan Tri, Vietnam will develop through innovation and digital transformation (https://dantri.com.vn/khoa-hoc/viet-nam-se-la-quoc-gia-phat-trien-bang-doi-moi-sang-tao-va-chuyen-doi-so-20241225113651366.htm)

[2] National Statistics Office, Number of people engaged in scientific research and technological development (https://www.nso.gov.vn/en/px-web/?pxid=E1332&theme=Education)

[3] VN Economy, Vietnam’s information technology sector is currently facing a shortage of 200,000 workers compared to demand (https://vneconomy.vn/nganh-cong-nghe-thong-tin-viet-nam-dang-thieu-hut-200-000-nhan-luc-so-voi-nhu-cau.htm)

[4] Dan Tri, Vietnam is facing a serious shortage of highly skilled talents (hhttps://dantri.com.vn/cong-nghe/viet-nam-thieu-hut-nghiem-trong-nhan-luc-trinh-do-cao-20250326132608030.htm)

[5] World Intellectual Property Organization, Global Innovation Index 2025: Innovation at a Crossroads (https://www.wipo.int/web-publications/global-innovation-index-2025/assets/80937/2000EN%20Global%20Innovation%20Index%202025%20-%20Full%20-%20v8.pdf)

[6] World Bank, Accelerating the development of high-tech talent in Vietnam (https://documents1.worldbank.org/curated/en/099142309042522486/pdf/IDU-743c96bd-3fe7-4755-88a6-903c94bc5f08.pdf)

[7] Vietnam Education, Decree 249 opens a smooth “highway” for talented individuals and experts to enter the public sector (https://giaoduc.net.vn/nghi-dinh-249-mo-duong-cao-toc-thong-thoang-cho-nhan-tai-chuyen-gia-vao-khu-vuc-cong-post254772.gd)

[8] Phap Luat Magazine, Without formal planning, scientific experts can become leaders in government agencies. (https://plo.vn/khong-can-quy-hoach-chuyen-gia-khoa-hoc-co-the-lam-lanh-dao-trong-co-quan-nha-nuoc-post871402.html)

[9] Vietnam Education, Decree 249 opens a smooth “highway” for talented individuals and experts to enter the public sector (https://giaoduc.net.vn/nghi-dinh-249-mo-duong-cao-toc-thong-thoang-cho-nhan-tai-chuyen-gia-vao-khu-vuc-cong-post254772.gd)

[10] Vietnam Education, To effectively attract science and technology experts to the public sector, a “two-tiered filter” system needs to be established (https://giaoduc.net.vn/de-thu-hut-chuyen-gia-khcn-vao-khu-vuc-cong-hieu-qua-can-xay-dung-bo-loc-hai-tang-post254940.gd)