For the first time, Vietnam held a national event honoring innovation, attended by General Secretary To Lam, Prime Minister Pham Minh Chinh, and other senior leaders of the Party and State on October 1.

Speaking at the forum, General Secretary To Lam sent a message to the nation: "May the flame of innovation in each of us always burn brightly, continuously unlocking new knowledge, transforming ideas into value, and contributing to building a prosperous and powerful Vietnam.”

His message, and the National Innovation Day itself, affirmed a strategic direction: innovation must become the leading driver of national development in the digital age.

The world is shifting at unprecedented speed.

Artificial intelligence, big data, biotechnology, clean energy, and new materials are reshaping global competitiveness.

Nations that act first will gain the advantage and leap ahead.

Those that fall behind risk being left out.

Vietnam has no choice but to make science - technology, innovation, and digital transformation the core breakthroughs in renewing its growth model.

This is not a slogan.

It is a matter of survival.

Innovation is not just about boosting GDP.

It’s a path to improving productivity, competitiveness, environmental protection, climate resilience, and quality of life.

Throughout history, technological breakthroughs have driven societal leaps.

Yet for Vietnam, turning innovation into real power will not be easy.

Initial progress in high-tech industries is noteworthy.

Electronic exports surpassed USD 132 billion, positioning Vietnam as a global hub for electronics processing and assembly.

However, the foundation remains heavily reliant on foreign direct investment (FDI): 85% of export value is generated by foreign firms.

Domestic operations are largely assembly-based, while critical stages like chip design and advanced semiconductor fabrication remain in foreign hands.

According to the World Bank’s recent Vietnam Economic Update, over the past decade, Vietnamese inventors have barely filed international patent applications for semiconductor technologies.

Domestic filings in microelectronics have only started rising recently - by about 28% annually from 2018 to 2023 - but from a very low base.

Around 70% of these applications come from foreign companies operating in Vietnam.

Meanwhile, middle-income peers such as Malaysia and Thailand each filed dozens of international semiconductor patents in the past decade.

China alone accounted for 55% of all global filings in this sector during 2021-22.

This gap highlights the challenges Vietnam faces in converting knowledge into intellectual property.

Geopolitically, Vietnam is strategically located in East Asia, neighboring five global science and technology leaders: China, South Korea, Japan, Singapore, and Taiwan.

This proximity offers a tremendous advantage: access to regional knowledge networks and value chains.

Yet it also brings pressure, as neighbors have spent decades investing in talent and R&D and now lead in attracting capital and high-quality resources.

Vietnam stands at a crossroads: rise or fall behind.

Vietnam’s undeniable asset is its youthful workforce.

In 2023, the country had about 560,000 STEM professionals aged 22–35 - a substantial figure for an emerging economy.

The number of STEM students rose by 10% annually from 2019 to 2023.

In software and chip design, over 80% of workers hold a university degree, and nearly 90% work in highly skilled positions.

This forms a strong foundation to nurture innovation.

Yet deeper challenges persist.

According to the World Bank, there are only about 80,900 full-time R&D personnel, making up just 0.15% of the labor force.

Vietnam has fewer than 800 researchers per million people - far below international standards and the country’s own targets.

No Vietnamese university ranks in the world’s top 200 for science and engineering.

Vietnam also lacks globally recognized scientists in critical fields.

More worrisome is the shortage of PhD-qualified faculty, which limits postgraduate education and reduces the pipeline of high-level researchers.

Investment in higher education and R&D remains low.

Universities are underfunded, and businesses show limited interest in research.

University-industry collaboration is weak.

Curricula are outdated and lack practical relevance.

Research infrastructure and pilot testing facilities are inadequate, making it difficult to commercialize scientific outcomes.

This vicious cycle has persisted for years, preventing innovation from reaching its full potential.

To break this cycle, Vietnam needs bold and comprehensive policy shifts.

First, develop tech talent through national graduate scholarships, global talent attraction policies, and elite faculty programs.

Second, invest in research and development infrastructure, including national centers, open technology platforms, and experimental innovation zones to bridge the gap between labs and markets.

Third, strengthen university - enterprise - government collaboration via technology clusters, workforce mobility schemes, and research partnership initiatives.

These three pillars reinforce one another, creating a virtuous loop of talent and technological products that boosts national competitiveness.

Innovation is the only viable path for Vietnam’s breakthrough.

It cannot be delayed.

Vietnam's strengths include its young population, strategic location, and growing STEM education.

Its challenges are talent quality, weak R&D base, and slow institutional reforms.

If Vietnam does not act, it risks remaining a mere assembly hub.

But if it dares to go all in, transforming knowledge into power, the nation can rise into the ranks of advanced tech nations within decades.

Lan Anh