Experts agree that Vietnam should pursue institutional breakthroughs similar to eradicating funding limitations, creating a versatile legal framework, and prioritising strategic applied sciences to improve its nationwide standing.
According to Dr. Hoang Kim Khuyen from the Institute of State and Law underneath the Vietnam Academy of Social Sciences, bettering establishments to entice funding is a prerequisite for science, technology, and innovation to turn into engines of sustainable growth. While the non-public sector has emerged as a key contributor to financial progress in recent times, its function in analysis and growth (R&D) stays modest.
Major firms similar to Viettel, FPT, Vingroup, and VinBigData have boldly invested in analysis tasks, but few non-public corporations keep long-term commitments to science and technology. Institutional and coverage shortcomings are a significant motive. Laws relating to science, technology, mental property, and funding usually lack consistency and overlap, creating sensible hurdles.
Financial instruments designed to spur innovation have additionally fallen quick. Enterprises’ science and technology growth funds exist underneath the regulation, however their use stays restricted. Between 2015 and 2023, enterprises contributed greater than 35 trillion VND (1.3 billion USD) to such funds, but solely about 60% was spent. The relaxation was left idle due to imprecise rules, bureaucratic procedures, and dangers.
Dr. Khuyen famous that present incentives on tax, credit score, and land for R&D are inadequate. For small- and medium-sized enterprises (SMEs), which make up greater than 95% of Vietnamese corporations, limitations are even increased due to restricted sources and a lack of know-how. This has left the non-public sector, anticipated to be the primary driver of innovation, largely on the sidelines.
To deal with these challenges, she beneficial legal reforms to guarantee coherence, transparency, and predictability, whereas lowering administrative burdens. Laws on science and technology and mental property needs to be revised to be extra open and business-friendly. Transparent mechanisms are additionally wanted to forestall vested pursuits in useful resource allocation.
She additional known as for improved monetary mechanisms, together with clearer and extra sensible tax incentives, simpler entry to credit score and land, and assist schemes similar to mortgage ensures or curiosity subsidies for SMEs investing in R&D. In parallel, the federal government ought to foster a nationwide innovation ecosystem with start-up centres, technology incubators, high-tech parks, and stronger hyperlinks between analysis institutes, universities, and companies.
Legal innovation and strategic technology growth
Nguyen Thu Dung, additionally from the Institute of State and Law, highlighted the necessity for brand new legal approaches within the digital age, the place technology usually outpaces laws. She pointed to the “sandbox” mannequin, the place corporations can check new applied sciences underneath state supervision, as an efficient software. Expanding sandboxes past fintech to areas similar to synthetic intelligence (AI), blockchain, biotechnology, and clear power would, she argued, flip establishments right into a aggressive benefit.
Echoing this view, Dr. Ha Huy Ngoc of the Vietnam Institute of Economics harassed that Vietnam should establish and focus sources on strategic applied sciences. He proposed nationwide programmes on semiconductors and new supplies, the institution of a nationwide AI analysis hub, strengthening biotechnology for well being care and agriculture, and scaling up clear power.
To obtain these targets, Vietnam ought to undertake insurance policies to entice expertise, grant better autonomy to analysis institutes and universities, and set up a clear nationwide strategic technology fund to assist large-scale tasks.
According to Dr. Ngoc, funding in strategic applied sciences just isn’t solely about financial progress but in addition about guaranteeing nationwide safety, safeguarding digital sovereignty, and elevating Vietnam’s worldwide profile. In an period of fierce technological competitors, daring insurance policies and cautious prioritisation will allow Vietnam to safe key positions in world worth chains, he famous.
By combining legal reforms with centered funding in core applied sciences, consultants say, Vietnam can unlock science, technology, and innovation as highly effective inside drivers of progress. This imaginative and prescient aligns with Resolution 57-NQ/TW, which identifies innovation as the inspiration for Vietnam to obtain its aim of turning into a high-income, developed nation by 2045./.VNA