The Standing Committee of the National Assembly has proposed the establishment of a Defense and Security Industry Fund to execute urgent projects and research and to develop strategic weapons.

Launcher and missiles of the S-125-2TM air defense system at the Vietnam International Defense Expo 2022. Photo: Nhat Bac

The proposal was made ahead of the upcoming discussion session held by the National Assembly on the draft Law on Defense and Security Industry and Industrial Mobilization.

According to the draft law, the Defense and Security Industry Fund is a state financial fund outside the budget, established at the central level and administered by the Government. The fund supports the implementation of urgent tasks or the research and development of defense and security products that are strategic, innovative, and high-risk.

In its explanatory report, the Standing Committee of the National Assembly stated that after consideration and collecting opinions, the majority of deputies agreed with the regulation on establishing the fund to support the state budget in developing the defense and security industry.

This is considered a special and superior mechanism with strategic significance. "International experience shows that countries with advanced defense industries all have financial funds dedicated to this field," the Standing Committee noted.

Compared to the draft law introduced at the previous session, the current draft has added many conditions to ensure that the Fund was used solely for urgent, strategic, innovative, and high-risk tasks. These are tasks for which no or insufficient funds have been allocated in the state budget.

The Law on Defense and Security Industry and Industrial Mobilization aims to complement mechanisms and policies to meet the needs of building and developing the defense industry. The draft law focuses on specific policies for areas such as the research and development of advanced technical weaponry and high-tech equipment; attracting and retaining high-quality human resources; and developing key products.

The National Assembly will vote to pass this draft law on June 25.