The need for breakthrough in human resources and R&D investment

This is not only the responsibility of the State, but also a shared challenge that requires the joint efforts of the entire ecosystem—from research institutes, universities, and businesses to individual workers. Viet Nam's R&D capacity still relies significantly on external resources. Meanwhile, the country’s ability to master core technologies remains limited, primarily due to a shortage of high-quality human resources and difficulties in mobilising investment capital. Increasing investment in R&D is regarded as a vital measure to provide the necessary momentum.

Mastering technology requires high-quality human resources

Compact in size, a flexible gripping arm, capacity of detecting fruit ripeness and moving in three-dimensional space are some of the advantages of a fruit-picking robot developed over two years ago by the Mechatronics and Automation Group at the University of Engineering and Technology under Viet Nam National University, Ha Noi. The robot’s entire design and manufacturing process was carried out domestically, bringing its cost down to roughly 30% of that of similar imported products. This is just one among many technological innovations developed by Vietnamese researchers to address real-world challenges in agriculture, construction, logistics, education, and healthcare. However, behind these bright spots lies a major unresolved issue that demands time and appropriate solutions: a shortage of high-quality human resources—an essential factor for mastering technology.

According to the Global Innovation Index 2024 published by the World Intellectual Property Organisation (WIPO), Viet Nam ranked 44th out of 133 countries and territories, up two places from 2023. Notably, the high-tech manufacturing output index rose by ten positions to 28th place. Nevertheless, investment in R&D—a key indicator of scientific foundation and human resource quality—has not kept pace with growth. Viet Nam's total R&D expenditure remains at around 0.5% of GDP (estimated at 0.4% in 2023), significantly lower than the global average of 2.3% and lagging far behind regional countries such as China (2.5%), Singapore (1.9%), and Malaysia (1%).

Assoc. Prof. Dr. Nguyen Long Giang, Deputy Director of the Institute of Information Technology under the Viet Nam Academy of Science and Technology, stressed that a country aiming to develop in the field of digital technology must possess good human resources—especially experts in cutting-edge fields such as artificial intelligence, cloud computing, blockchain, and cybersecurity. The lack of high-quality human resources and limited R&D investment are fundamental barriers currently hindering the development of Viet Nam’s digital technology.

Minister of Science and Technology Nguyen Manh Hung visits the innovation and digital transformation exhibition space of the Posts and Telecommunications Institute of Technology during the celebration of World Creativity and Innovation Day 2025.

In reality, the demand for high-quality human resources in emerging technologies is rapidly increasing, triggering fierce competition for skilled workers both domestically and globally. Brain drain and high job-switching rates are common across the tech industry.

Not only do tech startups struggle to attract and retain talents, but even large corporations such as Viettel Group (a military-run telecom and technology giant) face challenges in this regard. In response to stiff competition from domestic and international markets, Viettel has offered salaries around 20% higher than the industry average, with some strategic positions falling within the top 25%—even top 5%—income brackets of the labour market.

Mastering technology is impossible without a foundation of high-quality human resources. Experts agree that urgent and decisive action is needed from the government, businesses, and educational institutions to keep pace with global technological innovation—and to move toward a future where Viet Nam not only participates in but leads the game.

Removing financial barriers

R&D is a critical factor in fostering innovation and technological advancement. Today, technological innovation has become a matter of survival for many businesses. However, the greatest obstacle companies face remains funding. “Many businesses have ideas and viable plans, yet difficulties in accessing credit can prevent them from realising their ambitions. Scientific and technological products are characterised by intangible knowledge, making them hard to value and trade. This necessitates intermediary organisations to facilitate negotiations and transactions,” said Pham Duc Nghiem, Deputy Head of the National Agency for Technology Entrepreneurship and Commercialisation Development under the Ministry of Science and Technology.

The case of Thuan Thanh Technology Solutions Co., Ltd. (Bac Ninh Province) is a fairly typical example. After nearly 10 years of operating in the field of software services, solutions, and products, the company still faces severe limitations in accessing capital for technological development. This year, in hopes of obtaining a preferential loan to upgrade its data infrastructure, company director Le Van Kien expressed concerns about the banks’ lending criteria: “According to credit standards, collaterals such as automobiles or real estate are required for loan appraisal. Therefore, many tech companies find it hard to meet these requirements.”

For technology enterprises, collateral can often be intangible assets such as patents or proprietary technologies. However, these types of assets typically lack proof of future commercial effectiveness and have insufficient historical data for proper appraisal. The Institute for Digital Economy Development Strategy (IDS) has offered similar observations: although Viet Nam now has several tech companies with potential for global competitiveness, many still struggle to scale up due to capital mobilisation challenges. As the State Bank of Viet Nam prepares to roll out a 500 trillion VND credit package with preferential interest rates to support investment in digital infrastructure and technology, experts have emphasised the need to remove obstacles in loan conditions that fail to account for the specific characteristics of innovative enterprises. Without such adjustments, banks may be reluctant to disburse the funds.

CMC AI Camera – a core technology product within the C.OpenAI ecosystem – is capable of running 10 AI applications directly on the camera itself.

The situation in Ho Chi Minh City presents a different and thought-provoking story. Despite being recognised as the country’s largest R&D hub—with the Saigon Hi-Tech Park, Quang Trung Software City, and R&D centres of global corporations such as Intel, Samsung, and Bosch, alongside top universities and research institutes—most of the city’s R&D funding still comes from the private sector. Meanwhile, the city’s public budget allocation for R&D remains modest, at only around 200 billion VND per year.

This reflects a broader issue nationwide. According to statistics, the average projected state budget expenditure for science and technology in the 2020–2022 period stood at 17.494 trillion VND, accounting for just 1.01% of total state spending and only 0.20% of GDP. This falls short of the targets set in the National Strategy for Science and Technology Development, which aims to allocate 1.2% to 1.5% of GDP to science and technology by 2025. It also marks a decline compared to the goals outlined in Resolution No. 20-NQ/TW dated November 1, 2012, which called for over 2% of GDP to be invested in science and technology by 2020. Such underfunding has resulted in a lack of financial support for long-term projects and limitations in the development of modern technological infrastructure.

Resolution No. 57-NQ/TW issued by the Politburo on breakthrough development in science, technology, innovation, and national digital transformation sets an ambitious goal: raising R&D spending to 2% of GDP by 2030, with over 60% of that coming from the private sector. In addition, at least 15% of the science and technology budget will be allocated to strategic technologies such as artificial intelligence, semiconductors, and renewable energy. Clearly, achieving this vision will demand strong institutional reforms and decisive action.

According to Nguyen Phuong Tuan, Vice Chairman of the NA's Committee on Science, Technology and Environment, the ongoing revision of the 2013 Law on Science and Technology is aimed at addressing regulatory shortcomings—particularly those related to budgeting and managing state-funded science and technology projects. These reforms are necessary to reflect the unique characteristics of scientific research, including its novelty, unpredictability, time lag, and inherent risks, while better aligning with the needs and expectations of the scientific community. Alongside legal revisions, urgent and concrete steps are being taken to resolve bottlenecks in funding mechanisms, making them attractive enough to encourage businesses and institutions to allocate and effectively use their science and technology development funds.

In recent years, the use of science and technology development funds by enterprises has remained low and inconsistent. While some major corporations have shown interest and relatively effective usage, the actual disbursement still falls short. For instance, Viettel managed to utilise 2.372 trillion VND, about 60% of its allocated fund, during the 2016–2018 period. Although the NA’s Resolution No. 193 recently clarified fund mechanisms, the lack of detailed guidelines has left many localities and organisations waiting for further instructions from the government, wary of potential implementation challenges. Experts also stress the need to accelerate the process of establishing Science and Technology Development Funds, which currently can take up to a year.

Viet Nam has built a promising foundation, with its digital industry projected to generate 152 billion USD in revenue in 2024, a more than 35% increase from 2019, and approximately 74,000 businesses operating in the sector. However, to maintain this growth trajectory and move toward mastering strategic technologies, the country must urgently address the twin barriers of human resource constraints and capital access—two key determinants of its future competitiveness and technological self-reliance.

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