to create breakthroughs to improve the economy’s competitiveness.

The main driving force of economic growth 

Dr. Nguyen Dinh Cung, a senior expert, and a permanent member of the Editorial Team of the Socio-Economic Sub-Committee, which prepares for the 13th National Party Congress, said that the strong development of science, technology and innovation as emphasized by the draft report is the driving force for Vietnam’s economic development. Implementing digital transformation in national governance, state management, production, business, and social organization will help promote publicity, and transparency, and strengthen effectiveness and efficiency of state management.

Inside a modern automobile factory in Vietnam.

"To develop quickly and sustainably, Vietnam needs to rely mainly on science and technology, innovation and digital transformation," Dr. Cung said. “To do that, it is necessary to renew thoughts and actions, proactively grasp and effectively utilize the opportunities of the 4th Industrial Revolution associated with the international integration process to restructure the economy, develop the digital economy, digital society, to improve productivity, quality, efficiency and competitiveness."

The draft report affirms that Vietnam needs to focus on perfecting institutions, policies and laws in accordance with the market mechanism and international practices to develop Vietnamese science; strongly develop science, technology and innovation, taking enterprise as the center; and promote the development of new business models, the digital economy and digital society.

In addition, it is necessary to have economic and financial mechanisms and policies to encourage enterprises to participate in research and development (R&D) and technological renovation; to allow the implementation of the mechanism of testing new policies, promote the application of new technologies, innovation and creation of new business models; and clearly define targets and action plans to apply and develop science, technology and innovation in all aspects of activities at all levels, branches and localities.

The mindset that it is necessary for science and technology is a new one, facilitating competition and development of "players".

The world recognizes Vietnam's efforts

Mr. Cung said that it is necessary to have economic and financial mechanisms and policies to encourage enterprises to participate in research, development and technological innovation. In addition, it is necessary to allow the implementation of a mechanism for testing new policies, promoting the deployment and application of new technologies, innovation, and new business models.

The Global Innovation Index 2020 (GII 2020) report published by the World Intellectual Property Organization (WIPO) shows that Vietnam maintained its high rank, standing at 42nd out of 131 countries and economies for two consecutive years. With this ranking, Vietnam holds the leading position in the group of 29 countries with the same income level and ranks 3rd in Southeast Asia.

The countries ranked above Vietnam in the GII 2020 are all developed countries/economies and members of the high income group. Among 10 Southeast Asian countries, Vietnam maintained its 3rd position, after Singapore and Malaysia.

Many barriers remain

Despite this fact, the Politburo said that Vietnam’s initiative to participate in the 4th Industrial Revolution is still low. The country’s institutions and policies still have many limitations and shortcomings. The structure and quality of human resources have not met requirements.

Science-technology and innovation are not really the driving force for socio-economic development; a new national innovation system has been formed, so it is not synchronous and is ineffective.

Resolution 52 NQ-TW issued in 2019 stipulating a number of guidelines and policies to proactively participate in the 4th industrial revolution stated that the process of national digital transformation is slow, there is a lack of initiative due to limited infrastructure, the number converter has many limitations. Many businesses are still passive, and their capacity to access, apply and develop modern technology is low. Digital economy is still small in scale. There are also many challenges in fighting cyber-crime and ensuring cybersecurity.

The resolution stated: “The above-mentioned limitations have subjective and objective reasons, mainly subjective reasons. Awareness of the 4th industrial revolution in the political system and the entire society is still limited, inadequate and inconsistent. The ability to analyze and forecast strategies on scientific and technological development trends affecting the socio-economic life of the country is still limited."

According to Dr. Cung, the compilation board of the draft report observed that there should be a breakthrough in infrastructure development, especially digital infrastructure, synchronous construction and development of national, regional and local data infrastructure, to create a foundation for the development of digital economy and digital society; 

Also: Develop sci-tech, hi-tech enterprises; Improve operational efficiency of research facilities and national laboratories, high-tech parks; Promote the role of funds for sci-tech development and technological innovation in promoting research, start-up, innovation, application and transfer of technology; Aim to have the rate of businesses with innovative activities reaching 40% by 2030; 

Focus on the improvement of Vietnamese enterprises’ capacity to absorb, master and innovate technology; Create competitive pressure in business environment to push enterprises to use technology and increase labor productivity; Strengthen the protection and enforcement of intellectual property rights; Expand and improve the system of standards and regulations in harmony with international standards; 

Develop a number of key telecommunications and information technology enterprises to  perform the leading role in digital infrastructure, a foundation for the digital economy and digital society in association with ensuring information safety and security; Focus on manufacturing equipment for the 5G system.

Long-term goals

Resolution 52 sets out very specific goals to make the economy more competitive in the region and the world. Accordingly:

By 2025 maintain the ranking on the Global Innovation Index (GII), named in the top three ASEAN countries.

Resolution 52 NQ-TW dated 2019 sets the goal that the digital economy should account for about 20% of the country’s GDP.

Build the digital infrastructure that reaches the advanced level of ASEAN; Broadband internet covers 100% of the communes; Digital economy accounts for about 20% of GDP; labor productivity increases 7%/year on average.

Basically complete digital transformation in Party, State agencies, the Vietnam Fatherland Front, socio-political organizations; Enter the top four among ASEAN countries in the e-government rankings of the United Nations; Have at least 3 smart cities in 3 key economic regions in the North, the South and the Central Region.

Some specific goals to 2030: Maintain Vietnam’s position in the Global Innovation Index (GII) rankings – among the group of 40 leading countries in the world; the 5G mobile network covers throughout the country; Broadband Internet is available to everyone at a low cost.

Digital economy accounts for over 30% of GDP; labor productivity increases about 7.5%/year on average; Complete construction of the digital government; Form a number of smart urban chains in key economic regions in the North, the South and the Central Region; step by step connect with smart urban networks in the region and the world.

The vision to 2045: Vietnam becomes one of Asia's leading centers for smart production and services, start-up and innovation centers in Asia; has high labor productivity, capable of mastering and applying modern technology in all fields of economy - society, environment, national defense and security.

Obviously, these goals, according to Dr. Cung, are far-sighted, requiring comprehensive development of human resources, science, technology, and innovation associated with arousing aspirations for national development, national pride and self-reliance, and upholding the cultural values and people of Vietnam.

He emphasized that it is necessary to accelerate the implementation of fundamental and comprehensive innovation and improve the quality of education and training, with the focus on modernizing and changing the mode of education and training, especially higher education and vocational training. Also, focus on training high-quality human resources, discovering and fostering talents; and adopt outstanding policies to attract and appreciate talents and experts both at home and abroad.

Lan Anh

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