On December 22, 2024, General Secretary To Lam signed Resolution No. 57-NQ/TW of the Politburo, focusing on breakthroughs in science, technology, innovation, and national digital transformation.

Science, technology, innovation, and digitalization are now seen as prerequisites for achieving Vietnam’s ambitious goals: ranking in the global top 30 for innovation and digital transformation by 2045, with a digital economy contributing at least 30% of GDP by 2030 and 50% by 2045.

Notably, Resolution 57 prioritizes R&D with clearly defined metrics. The science and innovation system is being restructured to integrate research, application, and education more effectively.

Achieving Resolution 57’s goals will be challenging given the current fragmented and underfunded state of R&D in Vietnam. The country must act decisively to improve labor productivity, master core technologies, boost global competitiveness, and accelerate national progress. 

Always lagging behind without technology mastery

“I’ve never been this excited about Vietnam’s science and technology prospects,” said Vo Quang Hue, a former BMW executive with 25 years of experience, including 12 years in R&D. He successfully persuaded Bosch to move a high-tech project to Vietnam. Hue was deeply moved by the launch of Resolution 57.

Recalling the late 1980s when General Secretary Nguyen Van Linh proclaimed, “Reform or perish,” Hue said that same spirit of urgency and optimism is returning. He sees Resolution 57 as a pivotal roadmap, calling for a nationwide awakening through science and technology.

Resolution 57 targets include making Vietnam a leader in science and innovation among upper-middle-income countries by 2030. Goals include having at least 40-50 science and technology organizations ranked regionally or globally, increasing international publications by 10% annually, patent applications by 16-18%, and achieving a tech commercialization rate of 8-10%. The resolution also aims to attract at least three major global tech firms to invest in R&D in Vietnam.

“Without R&D, we’ll always be behind, without technologies of our own,” emphasized Tran Dinh Cuong, Chairman of Ernst & Young Vietnam. He stressed the role of private businesses in leading R&D, where innovation is closely tied to real-world applications and market needs - just as China and South Korea have successfully demonstrated.

Momentum from the private sector

Cuong believes that identifying Vietnam’s current position and destination is vital. According to World Bank data, Vietnam’s R&D spending in 2021 was only about 0.42% of GDP - far below global and regional averages, and dramatically lower than leaders like Israel (5.8%), South Korea (4.9%), and the United States (3.5%).

Increasing R&D investment to 2% of GDP by 2030 will be a leap forward, especially with the private sector playing a central role. The World Bank notes that only 34 countries have escaped the “middle-income trap” since 1990, and a third of them did so by joining the EU or discovering oil. For the remaining 108 developing countries, including Vietnam, science-led growth remains the key path.

High-quality human resources are also essential. In 2021, Vietnam ranked 57th out of 91 countries in innovation human capital, with only 780 researchers per million people. In contrast, South Korea boasts over 9,000 researchers per million. Vietnam’s numbers lag behind nations it hopes to catch up with, including Singapore, Thailand, China, and Japan.

Globally, the private sector drives most R&D spending. According to the European Commission’s 2024 Industrial R&D Investment Scoreboard, the world’s top 2,000 firms invested nearly 1.26 trillion euros in R&D, led by U.S. and Chinese companies. In 2022, Vingroup became the first Vietnamese company to enter the top 2,000, ranked 887th with a 177.9 million-euro R&D investment. As of 2024, no additional Vietnamese firms have joined the list.

Vietnam’s science and tech ecosystem

Vietnam currently has 423 R&D institutions, mainly concentrated in Hanoi and Ho Chi Minh City, along with nearly 900 certified science and tech enterprises. The country also hosts about 4,000 startups, 208 investment funds, 84 incubators, and 20 innovation centers. Its startup ecosystem ranks 56th globally, with Hanoi and Ho Chi Minh City in the top 200 most innovative cities.

In 2024, Vietnam ranked 44th out of 133 countries in the Global Innovation Index and 71st out of 193 in the E-Government Development Index. The digital technology industry earned an estimated USD 152 billion, with hardware and electronics exports reaching USD 132 billion. The digital economy contributed 18.3% to GDP by the end of 2024.

Nhan Dan