Science, technology, and innovation to elevate Viet Nam’s status in the new era

On the occasion of the 14th National Party Congress of Viet Nam a pivotal milestone opening a new developmental phase for the country, Minister of Science and Technology Nguyen Manh Hung shared insights regarding the role of science, technology, innovation, and digital transformation in becoming the central driver for Viet Nam’s rapid and sustainable development.

Minister, looking back at the 2021-2025 term, what substantive changes do you believe have been implemented to create a foundation for enhancing the competitiveness of the economy?

Minister Nguyen Manh Hung: I believe the most outstanding result of science, technology, and innovation over the past period does not lie in isolated achievements, but rather in a fundamental shift in perception, mindset, and methodology. We have laid the foundation for a new developmental reference frame in which science, technology, innovation, and digital transformation are output-oriented, with socio-economic efficiency serving as the central criterion. The entire chain of research, application, and commercialization is now structured around solving developmental problems rather than operating in a fragmented manner.

These substantive changes are most clearly reflected in three aspects. The first is the constructive institution, focusing on removing bottlenecks so that science and technology can rapidly integrate into daily life, production, and business. In the final year of this term (2025) alone, the volume of legislative work was immense and left a distinct mark. The Ministry of Science and Technology presided over and coordinated the drafting and revision of ten laws and one resolution passed by the National Assembly. At the government level, 23 decrees, one resolution, and five decisions issued by the Ministry were signed. This policy system demonstrates a determination to unlock institutional bottlenecks, which have long been among the greatest barriers to the development of science, technology, and innovation.

The second aspect is that digital infrastructure and digital governance capacity have been significantly enhanced and recognized internationally. According to United Nations assessments, Viet Nam rose 15 places in the 2024 E-Government Development Index, ranking 71st out of 193 nations. In terms of telecommunications, Viet Nam’s internet speed has improved significantly, placing it among the leading countries in the region and ranking among the top 10-15 globally. 4G coverage reaches over 99.8% of the population, while 5G reaches more than 91%. All communes and wards have fiber-optic broadband infrastructure, with household fiber-optic coverage reaching 87.6%, and the smartphone user rate is estimated at over 85%. These figures show that Viet Nam has transitioned from digitization to data-driven operations, with digital infrastructure becoming the foundation for improving governance efficiency and reducing costs for citizens and businesses.

The third aspect is the innovation capacity and the startup ecosystem, which have contributed to raising national competitive status. Viet Nam's innovation index ranks 44th globally, and it is recognized as one of the nine middle-income countries that have improved their rankings most rapidly over the past decade. In my opinion, the most valuable part of the 2021-2025 period is not just the numbers, but the momentum for transformation that has been established: innovation is entering business activities, digital transformation is entering economic operations, and results-based governance is step-by-step becoming the standard.

Scientific achievements are often difficult to see immediately in daily life. From your perspective, over the past five years, what specific changes have citizens and businesses benefited from most, ranging from administrative procedures and public services to production capacity and product quality?

Minister Nguyen Manh Hung: I believe there are three most specific groups of changes. First, there is a shift in how the State serves citizens and businesses. Administrative procedures and public services have become more convenient and transparent through digital transformation. Paperwork has been reduced, travel has decreased, and waiting times have been cut. By 2025, the rate of fully online-processed documents among the total number of online public service files reached nearly 78%, while the rate of public services generating online documents reached nearly 84%. These figures show that the processing of procedures is moving strongly from "queuing and waiting" to a digital environment.

The capacity and productivity of enterprises have also been markedly improved and deepened through the application of technology and process innovation. Automation, digital management, and data exploitation help businesses optimize operations, shorten production times, reduce errors, conserve materials and energy, and improve supply chain efficiency. From the perspective of citizens, as comprehensive digital transformation unfolds, the digital space becomes a new living space where essential services in education, healthcare, finance, and trade are delivered quickly and in a personalized manner, ensuring that everyone can participate in and benefit from the digital environment. Citizens benefit from convenience, businesses benefit from productivity and quality, and the State benefits from governance capacity. That is the most substantive measure of science, technology, and innovation in daily life.

You once emphasized that the major difference in Resolution 57 is management based on output results. Could you state specific goals and indicators to demonstrate this?

Minister Nguyen Manh Hung: Previously, we managed science with an administrative mindset: strictly controlling inputs down to every receipt and invoice, while the requirements and evaluation of outputs were unclear or insufficient. Consequently, the creative space was narrowed, and scientists spent more time on procedures than on research. Resolution 57 has reset the priority order, shifting from management by methodology and process to management by goals and final results. The resolution also emphasizes pilot mechanisms and the acceptance of controlled risks. Without accepting risk, there can be no innovation.

This is quantified by "speaking" targets. First is the measure of growth quality through the goal of Total Factor Productivity (TFP) contributing to economic growth, reaching over 55%. This is a very important indicator, affirming that Viet Nam's growth in the coming period must rely primarily on productivity, science, technology, and management innovation, rather than continuing to rely heavily on capital expansion and labor as before. Second, the goal is to form at least five digital technology enterprises on par with those in advanced countries. This means that science, technology, and innovation cannot develop in a scattered manner but must be focused, with powerful "locomotives" to lead the ecosystem and create momentum for the entire economy.

Third is measuring research results by their ability to enter the market. The resolution sets a target for the commercial exploitation rate of research results and inventions to reach 8% to 10%. This reflects a very clear shift from the mindset that "acceptance is the end" to regarding acceptance as a technical milestone, while the true value lies in application and commercialization. The output of science is not the number of report pages, but the number of "Make in Viet Nam" technologies and products that are put into operation, sold on the market, and solve the country's problems.

Fourth is the goal of allocating at least 3% of total annual budget expenditure to science, technology, innovation, and digital transformation, with the allocation gradually increasing in line with development requirements. At the same time, we are shifting from a detailed control mechanism to lump-sum spending based on results; from reclaiming research results for the state to leaving ownership rights to research organizations for commercialization; and from researchers receiving only fixed remuneration to a reasonable benefit-sharing mechanism upon successful commercialization. A scientific field only truly has vitality when it is nurtured by the market. Therefore, the resolution sets a target for expenditure on research and development (R&D) to reach 2% of GDP, with social funding accounting for over 60%. The State serves as "seed capital." When businesses spend their own money on science, they will demand real results. That market pressure is the most natural and effective mechanism for realizing the output-based management mindset.

In 2025, the Ministry of Science and Technology oversaw the drafting, revision, and submission to the National Assembly of 10 laws on science, technology, and innovation, which is considered an important step toward removing institutional bottlenecks. Could the Minister tell us how these bottlenecks have been unlocked for research, innovation, and technology commercialization, especially for enterprises?

Minister Nguyen Manh Hung: To speak of "institutional bottlenecks" is essentially to speak of barriers that have existed for many years: excessive procedures, a management style leaning toward process control, narrow experimental spaces, and ownership and exploitation rights for research results that did not create enough incentive, resulting in a technology market that was not a fluid stream. Therefore, the National Assembly's passing of ten laws in the field of science, technology, and innovation is not just about adding documents but creating a new framework and opening new development spaces. Among these are laws in which we lead the world, such as the Law on Artificial Intelligence and the Law on Digital Transformation.

The unlocking of institutions this time is most evident in the innovation of management thinking. For the first time, many regulations acknowledge the nature of science, technology, and innovation activities as involving risk, failure, and the need for experimentation; however, risks must be managed rather than eliminated through procedures. Enterprises are also established as the center of the innovation ecosystem. Businesses are not just "recipients" of technology but are paved the way to participate from the beginning: presiding over tasks, ordering research, coordinating with institutes and universities, and importantly, having clearer mechanisms regarding ownership, exploitation, and commercialization rights for research results, including those formed from the state budget, based on the principle of transparency. When enterprises have rights and interests, they will dare to spend money on R&D and persist with innovation.

Technology commercialization has been freed from technical knots: procedures for transfer, valuation of intellectual property, capital contribution with patents, technical secrets, and research results have been simplified to be more seamless. This shortens the road from the laboratory to the market, turning knowledge into products, services, and added value. Another important point is opening a legal corridor for new technologies and models through a controlled experimental mechanism (sandbox). Many new things cannot "apply for permission under old laws," but they also cannot be left unmanaged. The sandbox creates a legal policy space for businesses to experiment, with limits and risk monitoring, before expanding, helping science and technology enterprises and innovative startups. Finally, we are linking research with the market and development needs through ordering mechanisms, public-private partnerships, and State-institute-business links. When problems stem from reality, and there is a clear "buyer," research will enter the application faster, and social resources will be drawn in more strongly.

Over the past five years, Viet Nam has significantly improved its ranking on the Global Innovation Index (GII). Besides the state budget, what solutions has the Ministry implemented to unlock capital flows from the private sector, venture capital funds, and international resources, thereby realizing the goal of making Viet Nam a dynamic startup hub in the region, as you proposed at the ASEAN Digital Ministers' Meeting?

Minister Nguyen Manh Hung: Innovation is only sustainable when capital flows are unlocked; the State cannot and should not replace the market. The role of the State is to create mechanisms and initial pull. First, we focus on perfecting the legal corridor to enable private, venture, and international capital to flow into the creative startup ecosystem in a transparent and controlled manner. The Law on Science, Technology, and Innovation has established the basis for establishing national and local venture capital funds using the state budget.

We consider ecosystem connectivity a decisive factor. The Ministry of Science and Technology has stepped up cooperation with major startup centers in the region and the world, such as Singapore, South Korea, Japan, and the United States, while organizing and elevating activities like Techfest and investment and innovation forums to create trust for international investors that Viet Nam is a serious market with stable policies and the ability to absorb capital. Additionally, identifying clear priority areas is the most effective way for the State to lead capital flows. On that basis, Viet Nam has identified 11 strategic technology groups, focusing on areas that ensure the nation's self-reliance and resilience, areas with strong demand, large markets, and the ability to create long-term competitive advantages. These include fundamental and spearhead technologies such as artificial intelligence, semiconductors, digital technology, and green technology, as well as technologies serving energy transformation, healthcare, agriculture, and defense and security.

When the State identifies major problems and long-term priority directions, investors will see the destination and the roadmap, thereby becoming ready to commit long-term capital instead of seeking short-term profits. Capital truly flows strongly only when it is guided by a clear strategic vision and policy consistency. I still maintain that to become a dynamic startup hub in the region, Viet Nam does not need to compete on short-term incentives, but rather on the quality of its ecosystem: transparent institutions, a large enough market, strong human resources, and regional and global connectivity. When those conditions converge, capital will find its own way.

The Draft Documents of the 14th Congress emphasize a new growth model, a double-digit growth target, and requirements for sustainable development. According to the Minister, to realize the above goals, what are the strategic solutions for science, technology, and innovation to transform into productivity, growth quality, and specific competitiveness?

Minister Nguyen Manh Hung: The new growth model emphasized by the 14th Congress places science, technology, and innovation at the center of socio-economic growth, shifting from a specialized role to a cross-cutting driver for national development. To realize the double-digit growth target while remaining sustainable, we must transform macro goals into productivity and competitiveness through five groups of strategic solutions.

First, we must continue to refine institutions and build superior legal frameworks for the data, digital, and low-altitude economies. In particular, we must resolutely implement the controlled experimental mechanism, in line with the spirit that institutions must lead the way to "open the road" for innovation. Creating a legal environment and sandbox experimental spaces will reduce risks for businesses and encourage the commercialization of new technologies, thereby increasing the quality and output of high-tech products. Legislative methods also need adjustment to keep pace with the rapid speed of technology; laws cannot wait 5 to 10 years for revision, but must be adjusted annually when necessary.

Second, we must master strategic technologies and emerging industries. Viet Nam must remain steadfast on the path of self-reliance, firmly controlling core technologies. We are prioritizing resources for the semiconductor chip industry, AI, UAVs, advanced materials, and new energy. Additionally, we need to step-by-step build the aerospace and quantum industries. These are the new "growth poles" with many opportunities to catch up with regional and global levels. The Ministry will aggressively implement programs for strategic technology products, supported by the recently passed laws on AI, Digital Technology Industry, and High Technology.

Third, we must fundamentally reform the management model of national science and technology programs and financial mechanisms, using results as the measure. We are shifting strongly from "spending on research" to "ordering and buying research results," and from managing "inputs" to investing heavily in "outputs." Intellectual property and standardization must be promoted as tools to drive development, with intellectual property protection as the foundation and commercial exploitation as the key driver.

Fourth, we must develop modern science and technology infrastructure, digital infrastructure, and a National Digital Twin. The Ministry will advise on prioritizing resources to build national shared data platforms, national data centers, high-performance computing and AI centers, and national key laboratory systems. Developing a dynamic Digital Twin of the nation will enable simulation, forecasting, and decision-making based on real-time data, helping transition national governance from traditional to smart, more effective models.

Fifth, we must develop an innovation ecosystem and implement a national talent-based startup strategy. Without talent, there is no strong science, and without strong science, there is no strong nation. It is necessary to form a unified education-science-talent ecosystem, along with remuneration mechanisms sufficient to retain and attract the best people. The Ministry will advise on the establishment of remuneration mechanisms for Chief Engineers, international experts, and overseas Vietnamese scientists based on specific assigned tasks. We will effectively implement the "triple helix" model with the enterprise as the center, institutes and universities as the core force, and the State as the architect, while unlocking capital flows for innovation, especially through public-private venture capital funds.

Thank you, Minister!