From regulatory institutions to enabling institutions

At a national quality and productivity forum held recently in Ho Chi Minh City, Professor, Dr. Vu Minh Khuong of the Lee Kuan Yew School of Public Policy under the National University of Singapore said one of the important shifts in science, technology and innovation policy is for the Government to move from primarily funding research and managing projects to becoming a creator of foundations for innovation.

The traditional “three-party” linkage among the State, research and educational institutions, and businesses should also be expanded into an open innovation ecosystem involving start-ups, finance and venture capital, talent, users and international partners, he said. Drawing on international experience, Khuong said businesses must be the main actors in turning science, technology and innovation into productivity and value. The Government should shift from providing funding to creating enabling conditions by developing infrastructure, platforms, standards and markets, while coordinating the innovation ecosystem. Innovation and technology diffusion should also go hand in hand, particularly by bringing AI, digital and green technologies to small- and medium-sized enterprises as well as traditional sectors.

Dr. Nguyen Duc Hien, Vice Chairman of the Party Central Committee's Commission for Policy and Strategy, stressed that institutions constitute the infrastructure of productivity and provide the foundation for resources to circulate and innovation to be encouraged. The management philosophy is also shifting from pre-licence inspection and control to post-licence inspection and facilitation, he said.

Analysing the impact of policies on productivity, Vo Thi Lan Phuong, Managing Director of Vriens & Partners Vietnam and a policy impact assessment expert, said policy formulation should quantify compliance costs, assess long-term impacts on investment and consider implications for competition and innovation. Post-issuance policy evaluation should also be given greater attention to determine whether regulations are genuinely effective and achieving their intended objectives. Alongside reviewing and eliminating duplicative and unnecessary requirements, Phuong said risk-based regulation should be adopted, with simplified procedures for low-risk businesses and a shift from pre-licence inspection to post-licence inspection in appropriate areas.

According to experts, the spirit of Politburo Resolution No. 57-NQ/TW has in fact been gradually reflected in the legal framework governing science, technology, innovation and digital transformation, creating new momentum in the country's new phase of development.

Turning science and technology into productivity

Nguyen Nam Hai, head of the Commission for the Standards, Metrology and Quality of Vietnam (STAMEQ), said policy effectiveness must be reflected in actual productivity, quality, added value and competitiveness. Science and technology can generate productivity only when businesses are able to access, absorb, master and apply them in production and management, he said.

According to Khuong, science, technology and innovation must spread across all sectors and fields, with small- and medium-sized enterprises becoming a key focus of technology diffusion. Technology must be translated into practical outcomes, not only improving labour productivity but also enhancing the efficiency of resource, energy and capital use, while strengthening businesses’ and the economy’s capacity to adapt to changes in technology, markets and supply chains.

He also proposed shifting from general innovation capacity building to harnessing innovation to address specific problems.

From a business perspective, Tran Phuc Hong, Senior Vice President of TMA Solutions and a member of the Vietnam Digital Technology Alliance’s Board Of Directors, highlighted three major groups of policies that need attention, namely procedure, finance-infrastructure, and human resources. Alongside reducing administrative procedures, it is necessary to effectively implement sandbox mechanisms and support policies covering R&D costs, science and technology funds, and tax incentives, he said.

The experts’ analysis shows that when institutions are improved in an enabling direction, policies can be implemented more effectively, while businesses have greater opportunities to invest in and apply science and technology, thereby promoting innovation. This provides a foundation for science, technology and innovation to be gradually transformed into productivity, new value and a growth driver for the economy./. VNA