Talking about supporting businesses in high-tech and innovation fields, Ho Thi Thu Uyen, MA, consultant and former Director of External Affairs at Intel Products Vietnam, said that policies on linking FIEs (foreign invested enterprises) and domestic enterprises remain fragmented, mainly due to inconsistent approaches and the lack of clear legal obligations.

Having worked many years with FIEs in the technology sector, Uyen believes that from the investment licensing stage, the Government needs to require FIEs to have plans and roadmaps for technology transfer and cooperation with domestic enterprises. Timelines and levels of technology transfer need to be clarified in the investment license.

“Most FIEs only focus on exploiting the host country's existing advantages when making investment in Vietnam. Therefore, requiring these enterprises to commit to technology transfer is a condition that must be weighed with very specific and clear obligations and benefits,” she said.

Next, to help Vietnamese enterprises build and participate effectively in the innovation ecosystem, the Government needs to act as a “midwife” for small and medium enterprises (the majority) to access technology early with FIEs through specific cooperation projects.

On the other hand, domestic enterprises that wish to engage with FDI firms in technology transfer must have a skilled workforce and strong management capacity. They must also build trust and professionalism to compete in the regional and global innovation ecosystem.

To create motivation, the government should design incentive or reward mechanisms for domestic companies that successfully cooperate with FIEs in technology transfer and innovation. Such incentives would encourage all parties to take innovation activities more seriously.

She noted that the semiconductor industry has been present in Vietnam for 20 years. The presence of major foreign invested technology corporations such as Intel and Samsung highlights Vietnam’s existing advantages and potential.

FPT has developed its semiconductor design and commercial chip development division; CT Group has established a chip factory; Geleximco has entered the semiconductor field by acquiring shares of Viettronics; and startups like VSAP Lab (Da Nang) are helping strengthen both the innovation ecosystem and Vietnam’s potential to participate more deeply in the global semiconductor value chain.

According to Uyen, Vietnam’s position today is very different from 20 years ago. The determination of the government, the pioneering efforts of domestic enterprises, and the presence of FIEs are already in place. What Vietnam needs now is to fine-tune its approach, review its support policies and operating mechanisms, and connect individual projects into a unified national innovation strategy.

The expert cited practical examples of how other countries invest in their innovation ecosystems, considering innovation a pillar of sustainable development. Their policies are designed for mutual benefit, rather than a “ask and grant” mechanism, ensuring that businesses can actually achieve results from innovation ecosystems.

For example, South Korea has developed the Pangyo Techno Valley model in Gyeonggi province. The government requires large corporations to collaborate in R&D with small and medium-sized tech firms and domestic startups to optimize the innovation ecosystem.

In addition, the Ministry of SMEs and Startups runs an Open Innovation Public-Private Collaboration program that connects large corporations with advanced technologies and smaller firms, enabling them to jointly solve problems and turn innovative ideas into market-ready, high-quality products. The program can also create entirely new markets for innovative products.

The program has proven highly effective because the Korean government plays a coordinating role, not only providing financial support at the initial stage but also monitoring and intervening when new challenges arise. The ultimate goal is to ensure high-quality, effective cooperation between enterprises.

In the case of Vietnam, Uyen said the country already has several private universities capable of building similar technology incubation centers, such as VinUni and FPT University, as well as prestigious public universities under the Vietnam National University system.

At this point, regulators should organize and distribute innovation centers by region or cluster to leverage the advantages of high-tech zones and industrial parks, especially after administrative boundary adjustments.

Vietnam already has strong human resources and more than 200 venture capital and private innovation funds, in addition to government funds such as the National Technology Innovation Fund and the National Venture Capital Fund. With these existing factors, Vietnam’s startup and innovation ecosystem could become a strong pillar of its future knowledge-based economy.

Tran Chung