70 per cent of businesses seek to spend more on innovation

The names that made the lists are enterprises that have applied creativity and innovation to their operations, contributing to increased efficiency across several industries, including manufacturing, IT, telecoms, pharmaceuticals, medical equipment, logistics, banking, insurance, retail, agriculture, food and beverages, and real estate.

The results of a quick survey of the VIE50 and VIE10 enterprises show that up to 84 per cent consider innovation an important key to growth, with the majority of those focussing on innovating and improving products, services and processes.

70 per cent of enterprises in the survey also said that they expect to increase their budget for innovation for at least the next two years.

According to Dr. Vu Minh Khuong, associate professor from the Lee Kuan Yew School of Public Policy at the National University of Singapore, there are three factors that businesses need to understand when practising innovation.

"The first factor is the effect it will bring to the business, as reflected by revenue and profit. The second is to ensure any innovative solution will help customers and society trust and love your businesses more. The third is to make sure your innovation is adaptive to any change and volatility," said Dr. Khuong.

“In addition, businesses need to clearly understand the three pillars of innovation, including efficiency, innovation capacity of enterprises, and conditions to encourage and support resources," he added.

It will be necessary for the government to create an environment for innovation with financial support, regulations and standards, and an equal yet competitive environment.

Nguyen Van Truc, director of Viet Research's Innovation Research Project, said, “Innovation is an important factor for businesses to develop and grow. It can increase competitiveness, revenue, and brand value, while reducing production costs and even motivating employees.”

However, businesses are currently facing barriers due to a lack of resources, motivation, and capacity, along with difficulties in the implementation process due to legal and cultural concerns.

“To overcome these barriers, businesses need to find ways to create the right environment and invest in capacity development, employee motivation, and the resolution of legal and cultural issues,” said Truc.