Innovation and digital transformation – the second innovative era for Vietnam

Nguyen Manh Hung, minister of Science and Technology

Forty years ago, the country began an era of integration and development of a socialist-oriented market economy. Now is the era of innovation and digital transformation, building a new ecosystem where businesses, scientists, people, and the state participate in creating value

While the aim of the first era was to escape poverty, the second is to escape the middle-income trap and become a developed country with high income. The first took agriculture, industry, processing, and assembly as the driving force; while the second takes sci-tech, innovation, and digital transformation as the central driving force for development.

Building a national innovation system must align with the needs of businesses and society, a startup nation based on digital tech and creating institutions and digital tools for businesses.

Digital transformation must be accelerated for all people in a comprehensive manner. It must take place in all areas and at all levels, covering infrastructure, data, skills, and network safety and security.

For Vietnam to catch up with the era of AI, the digital economy, and the green economy, driving forces are being implementing by the ministry, creating a synergistic power. science and technology provides the knowledge foundation and technical tools; innovation transforms that knowledge into new products, services, and business models; and digital transformation opens up space for deployment and expansion of application scale at high speed and low cost.

We require the building of a national innovation ecosystem, with enterprises at the centre, scientists at the core, and the state playing the role of an enabler and leader. Vietnam must also master technology. Without this, it will continue to be stuck in the low value chain, stuck in middle income, and unable to decide the nation’s destiny.

Other tasks include building infrastructure to implement digital transformation, digitalising networks, popularising services, and boosting the application of IT and e-government.

The Law on Digital Transformation that we are drafting will fill in the missing pieces and will be a framework law to unify and connect related laws in order to form a complete digital architecture framework. The law will help create a digital data management mechanism, institutional framework for relevant platforms and services, personnel and skills, risk management, and much more besides.

When it comes to personnel, elite intellectuals and innovative entrepreneurs are the foundation for us to master strategic technology and participate more deeply in the global value chain.

There needs to be a policy to arouse the desire for creativity, linking research with production practices so that science and technology can truly become a national driving force. Sci-tech must originate from production and return to serve production.

The Law on Science, Technology, and Innovation that the National Assembly has just passed is another major step forward. Other laws that we must complete in 2025 are those on high technology, tech transfer, and intellectual property.

Ultimately, we will do more towards solving national problems and boosting economic growth, and that is the best way to continue to perfect the institution.