Vietnam’s Innovation Policy: Driving Economic Growth

LONG

03/03/2025

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Policy

Vietnam’s innovation policy plays a crucial role in fostering economic growth and enhancing the country’s competitiveness. Since the official implementation of the Doi Moi policy in 1986, Vietnam has made significant strides in transitioning from a centrally planned economy to a socialist-oriented market economy.

The Importance of Vietnam’s Innovation Policy

Vietnam’s innovation policy creates a favorable environment for businesses to develop and apply new technologies, thereby improving productivity, product quality, and services. Furthermore, this policy contributes to attracting foreign investment, creating jobs, and improving the living standards of the people.

Priority Areas in Vietnam’s Innovation Policy

The Vietnamese government focuses on several priority areas in its innovation policy, including:

Science and Technology: Investing in research and development (R&D), supporting innovative startups, and attracting domestic and international talent.
Education and Training: Enhancing the quality of human resources, providing vocational training to meet the needs of the labor market, especially in the high-tech sector.
Businesses: Supporting businesses in technological innovation, accessing capital, expanding markets, and participating in global value chains.
Infrastructure: Developing technical and information technology infrastructure, creating favorable conditions for innovation activities.

Challenges in Implementing Vietnam’s Innovation Policy

Despite the achievements, Vietnam still faces several challenges in implementing its innovation policy:

Limited Technological Absorption Capacity: Many businesses, especially small and medium-sized enterprises (SMEs), lack the resources and capacity to access and apply new technologies.
Shortage of High-Quality Human Resources: The demand for human resources with skills and expertise in technology remains high.
Business Environment: Continuous improvement of the business environment, simplification of administrative procedures, and enhancement of national competitiveness are necessary.

Development Trends of Vietnam’s Innovation Policy

In the context of the strong impact of the Fourth Industrial Revolution, the Vietnamese government is focusing on perfecting its innovation policy towards:

Digital Transformation: Promoting the application of digital technology in all sectors, aiming to build a digital government, digital economy, and digital society.
Green Economic Development: Encouraging innovation in renewable energy, cleaner production, and environmental protection.
International Cooperation: Strengthening international cooperation in science and technology, attracting foreign investment in high-tech sectors.

Conclusion

Innovation policy plays a vital role in promoting sustainable economic growth in Vietnam. By continuing to improve policies and focusing on priority areas, Vietnam can leverage opportunities from the Fourth Industrial Revolution to become an innovative nation.

FAQ

1. What is innovation policy?

Innovation policy refers to a set of government measures aimed at creating a favorable environment for innovation activities, including research and development, application of new technologies, and commercialization of new products.

2. What is the goal of Vietnam’s innovation policy?

The goal of this policy is to enhance national competitiveness, promote economic growth based on innovation, and improve people’s living standards.

3. How can businesses benefit from Vietnam’s innovation policy?

This policy offers numerous benefits to businesses, such as support in accessing capital, tax incentives, human resource training support, and facilitation of participation in global value chains.

4. How can I contribute to Vietnam’s innovation policy?

Citizens and businesses can contribute to Vietnam’s innovation policy through various channels, such as submitting online feedback on the government’s portal, participating in seminars and forums organized by relevant authorities.

5. What resources support businesses in accessing Vietnam’s innovation policy?

Ministries, sectors, and localities have specific support programs for businesses to access Vietnam’s innovation policy.

Support for Businesses under Vietnam's Innovation Policy