Innovation breakthroughs that can elevate the nation

Looking back at the 2021-2025 term, what changes do you assess creating a foundation for enhancing the competitiveness of the economy?

Nguyen Manh Hung

The most outstanding result in recent times lies not only in individual achievements, but also in a shift in awareness, mindset, and approach. We have laid the foundation for a new frame of reference, in which sci-tech and innovation are output-oriented, with socioeconomic efficiency as the central criterion. The entire research-application-commercialisation chain is placed within a logic of solving problems, rather than operating in a fragmented manner.

These changes have become more substantial, most evident in three areas. Firstly, the institutional framework focuses on removing impediments to ensure that science and technology quickly enter daily life, production, and business activities.

In the final year of the term, the volume of legislative work was substantial and had a clear mark. The Ministry of Science and Technology (MST) chaired and coordinated the drafting, amendment, and submission to the National Assembly of 10 laws and one resolution; at the government and prime minister levels, 23 decrees, one resolution, and five decisions drafted were signed and passed.

This policy framework demonstrates a determination to remove institutional issues, one of the biggest barriers to the development of science, technology, and innovation for many years.

Secondly, digital infrastructure and governance capacity have been significantly improved and recognised internationally. According to the United Nations, Vietnam rose 15 places in the 2024 E-Government Development Index, ranking 71st out of 193 countries. These figures indicate that Vietnam has shifted from digitalisation to data-driven operation, with digital infrastructure becoming the foundation for improving governance efficiency and reducing costs for citizens and businesses.

Thirdly, innovation capacity and the startup ecosystem contribute to enhancing the nation’s competitiveness. Vietnam’s innovation index ranks 44th globally; and it is recognised as one of nine middle-income countries that have improved their rankings fastest over the past decade.

How have citizens and businesses benefited most from specific changes, from administrative procedures and public services to production capacity and product quality in the term?

There are three most specific groups of changes. First is the change in how the state serves the individuals and businesses. Administrative procedures and public services are more convenient and transparent thanks to digital transformation. Paperwork, travel and waiting times are reduced. In 2025, the percentage of online applications across all online public services reached nearly 78 per cent.

The capacity and productivity of businesses have also improved significantly and profoundly thanks to the application of technology and process innovation. Automation, digital management, and data help businesses optimise operations, shorten production time, reduce errors, save materials and energy, and improve the efficiency of supply chain management.

When digital transformation takes place comprehensively, the digital space becomes a new living space where essential services in education, healthcare, finance, commerce, and others are provided quickly and personalised, ensuring that everyone can participate in and benefit from the digital environment.

Citizens benefit from convenience. Businesses benefit from increased productivity and quality. And the state benefits from improved governance. This is the most accurate measure of science, technology, and innovation in life.

You have emphasised that the major difference of Resolution No.57/NQ-TW is its output-based management approach. Could he provide specific goals and targets to demonstrate this?

Previously, we managed science with an administrative mindset: tightly controlling inputs, down to every document and invoice, while the requirements and evaluation of outputs were not clear or strong enough. As a result, the space for innovation was narrowed; and scientists spent more time on procedures than on research.

Resolution 57 re-established priorities: shifting from management based on methods and procedures to management based on goals and final results. The resolution also emphasised pilot mechanisms and the acceptance of controlled risks.

This is quantified by targets and indicators. Firstly, there is the measure of growth quality, through the target of total factor productivity contributing over 55 per cent to economic growth. This is a significant indicator, confirming that Vietnam’s growth in the coming period must rely primarily on productivity, science, technology, and management innovation, not continue to rely heavily on capital and labour expansion as before.

Secondly, the goal is to establish at least five digital tech enterprises on par with those in advanced countries.

Third is measuring research results by their marketability. The resolution sets a target of 8-10 per cent in commercialisation of research results and inventions.

Fourth, the goal is to allocate at least 3 per cent of the total annual budget to science, technology, innovation, and digital transformation, gradually increasing this amount as development requires; simultaneously, shifting from a detailed control mechanism to a results-based expenditure mechanism; from recovering research results for the state to leaving ownership rights to research organisations for commercialisation.

What solutions does the ministry have to unlock capital flows from the private sector, venture capital funds, and international resources, thereby realising the goal of making Vietnam a dynamic startup hub in the region?

Innovation is only sustainable when capital flows are unlocked. In this case, the role of the state is to create mechanisms and provide initial impetus.

Firstly, we are focusing on perfecting the legal framework so that private capital, venture capital, and international capital can flow into the innovative startup ecosystem in a transparent and controlled manner. The Law on Science, Technology, and Innovation lays the foundation for the formation of national venture capital funds and local venture capital funds using state budgets.

We consider ecosystem connectivity to be a decisive factor. The MST is strengthening cooperation with major startup hubs in the region and the world such as Singapore, South Korea, Japan, and the United States, while organising and enhancing activities such as Techfest, investment forums, and innovation forums, creating confidence among international investors.

Furthermore, clearly identifying key priority areas is the most effective way for the state to guide capital flows. Based on this, Vietnam has identified 11 strategic technology groups, focusing on areas that ensure national self-reliance and self-sufficiency, those with high demand, sufficiently large markets, and the potential to create long-term competitive advantages.

When the state identifies major challenges and sets long-term priorities, investors will see the destination and the roadmap, thus being willing to invest in the long term instead of seeking short-term profits. Capital flows strongly only when it is guided by a clear strategic vision and consistency in policy.

I still believe that, to become a dynamic startup hub in the region, Vietnam doesn’t need to compete with short-term incentives, but rather with the quality of its ecosystem: transparent institutions, a sufficiently large market, qualified workforce, and regional and global connectivity. When those conditions converge, capital will naturally flow in.

With the 14th National Party Congress emphasising a new growth model, the goal of double-digit growth, and the requirement for sustainable development, what are the strategic solutions for the sector to realise these goals?

To realise the goals, we need to translate macroeconomic objectives into productivity, growth quality, and competitiveness through strategic solutions.

Firstly, we must continue to improve the institutional framework. Institutions must lead the way to innovation. We need to build a legal framework for key identified areas, while aggressively implementing controlled testing mechanisms. The way laws are made will also be changed: science and technology are developing very rapidly, and laws cannot wait 5-10 years before being amended. If necessary, they will have to be adjusted annually, revising one to two key provisions each year.

Secondly, we must master strategic technologies and emerging industries. Vietnam must steadfastly pursue a path of self-reliance and self-strength, taking control of core tech. We prioritise focusing resources on semiconductor chips, AI, advanced materials, and new energy; while gradually developing the space and quantum industries. These are new growth poles that will determine the country’s position and competitiveness in the next stage of development.

Thirdly, there needs to be reform of the management model for national sci-tech programmes and financial mechanisms, using results as the benchmark, shifting strongly from spending on research to ordering and purchasing research results, and from managing inputs to investing in outputs.

Fourthly, we need to develop modern science, technology, and digital infrastructure. The focus will be on a national shared data platform, data centres, high-performance computing and AI centres, key laboratory systems, and a modern, integrated postal and telecommunications infrastructure.

Finally, it is necessary to build a science and technology, innovation ecosystem, and implement a national talent-based startup strategy. The mechanisms must be strong enough to attract and retain the best talent, and simultaneously facilitate the flow of capital for innovation, especially through public-private venture capital funds.