As Vietnam is entering a new era – the era of the nation's rise, together with science – technology development, and digital transformation, innovation is a strategic driving force that will help Vietnam make a breakthrough in a new development cycle.
Minister of Science and Technology Nguyen Manh Hung said that innovation involves promoting technological advancements in enterprises to increase labour productivity, mostly through preferential loans and tax reductions. Innovative startups are encouraged with new business models and technologies mainly via venture capital funds and regulatory sandbox mechanisms that allow staff to think, act, and boldly pilot new ideas and solutions outside the current institutional environment.
Science, technology, innovation, and digital transformation must aim for the ultimate goal of enhancing national competitiveness, contributing to socio-economic development, ensuring national defence and security, and improving the quality of life for the people, he said.
The contributions of science, technology, innovation, and digital transformation to economic growth must be identified and measured properly, Hung said.
The Minister also pointed out that the allocation of scientific and technological resources to research institutions must be based on effectiveness. For example, an investment of 3 percent of the State budget in science-technology development, innovation and digital transformation should yield a corresponding 3 percent GDP growth.
Despite recognising the importance of innovation, Vietnam still lacks specific mechanisms and policies to promote innovation in key emerging fields in business and technology. The existing mechanisms and policies are not conducive to developing an innovation ecosystem.
According to Director of the Institute for Brand and Competition Strategy Dr. Vo Tri Thanh, innovation in Vietnam has been slow in recent years. To change development methods and growth models, Vietnam needs to rely more on innovation and increase labour productivity.
Previously, the innovation ecosystem included the State, research institutions, schools, and businesses, with the State at the centre of innovation. Now, businesses must become the focal point of national innovation, Thanh said.
