Innovation in the era of national rise

Standing at the threshold of a new stage of development, Viet Nam is no exception to this trend.

Since the launch of Doi Moi (Renewal)in 1986, Viet Nam has made notable progress in science and technology. From a traditionally agrarian economy, the country has positioned itself on the global technology map through achievements such as the development of the NanoDragon satellite, domestically produced COVID-19 vaccines, and the creation of start-up ecosystems in select sectors.

However, when viewed in a broader context, the gap with regional and global leaders remains significant. In the 2024 Global Innovation Index (GII), Viet Nam ranked 44th out of 133 countries – an improvement on previous years, yet still far behind Singapore (4th) and Malaysia (33rd).

Three major obstacles continue to hinder technological advancement in Viet Nam: infrastructure, human capital, and the legal environment. On infrastructure, laboratories across universities, research institutes, and enterprises remain underfunded. Modern equipment must be imported at high cost, and maintenance or upgrades often prove challenging.

Human resources present an even more serious bottleneck. Despite Viet Nam’s advantage of a young population, the proportion of workers with formal training in science and technology remains limited. According to the World Bank, Viet Nam has around 800 researchers per million people – significantly lower than in Singapore (7,900), the Republic of Korea (9,400), or China (1,800). This shortfall is particularly stark in the semiconductor industry, where Viet Nam currently has just over 5,000 engineers compared to the estimated demand for more than 50,000.

Meanwhile, the legal framework still falls short in fostering innovation. Bureaucratic red tape, intellectual property protection, and venture capital mechanisms remain underdeveloped. Crucially, the current regulatory approach to research and development lacks the flexibility needed to encourage creativity and risk-taking.

To unlock Viet Nam’s technological potential and overcome these barriers, the State must first redefine its role. A key priority is to establish a favourable policy environment, including a dedicated legal framework for innovation with controlled regulatory sandboxes for new business models and technologies.

Strengthening intellectual property rights protection, an area still underappreciated in Viet Nam, is also critical. A legal environment that tolerates failure and rewards creativity will serve as a catalyst for a robust innovation ecosystem.

Beyond this, the State must also serve as a proactive enabler of science and technology. General Secretary To Lam has proposed increasing public spending on science and technology to at least 3% of total budget expenditure. While ambitious, this target is essential if Viet Nam aims to leapfrog into advanced technological development.

Alongside greater investment, the country needs to establish high-tech zones, innovation hubs, and demand-driven research programmes linking enterprises with domestic institutes and universities. Singapore’s long-standing success with its “technology incubators”, introduced over two decades ago, has laid the foundation for its status as Asia’s top knowledge economy.

In today’s fiercely competitive global landscape, as a latecomer, Viet Nam must create an attractive environment to become a premier technology destination. Initiatives such as Estonia’s e-Residency programme or Dubai’s start-up visa show that even small nations can attract global talent with the right policies. Drawing in international experts not only brings in talent but also opens doors to advanced knowledge, experience, and cutting-edge technologies.

At the launch of the nationwide movement on innovation and digital transformation, on April 24, Prime Minister Pham Minh Chinh stated that it is the people and businesses who are the real driving forces of technological progress – the government cannot substitute their role.

Innovation demands acceptance of failure, encouragement of experimentation, and recognition of those who dare to tread uncharted paths. Therefore, individuals and organisations alike must shift from a fear of mistakes and accountability to a forward-looking mindset that embraces creativity and discovery. The State and society must support and protect this spirit.

Ultimately, innovation is not a sprint but a long-term journey. Only nations that are well-prepared, institutionally, educationally, financially, and in terms of international integration, will seize the opportunity. In history, the Industrial Revolution propelled Britain to become the “workshop of the world”; the information revolution elevated the US to superpower status.

The Fourth Industrial Revolution has seen the rise of East Asian countries such as Japan, the Republic of Korea, and China. Today, as artificial intelligence, biotechnology and clean energy open new horizons, Viet Nam stands before a historic opportunity to break through.

To seize it, Viet Nam needs a comprehensive strategy combining domestic momentum, from enterprises, universities, and innovation communities, with international leverage, through technology transfer, global partnerships, and talent attraction. If timely and decisive action is taken, there is every reason to believe that Viet Nam can lay a solid foundation for becoming a developed nation by 2045, as it has set out to do.