Three drivers of double-digit economic growth.

To move from middle-income to high-income status, Vietnam must rely on science and technology, innovation, and digital transformation. With these three central drivers, we can achieve double-digit growth.

In his speech at the 14th National Congress of the Communist Party of Vietnam on the morning of January 21st, Mr. Nguyen Manh Hung, Minister of Science and Technology, emphasized: All three driving forces—science and technology, innovation, and digital transformation—have been expanded in scope and redefined by the Party with a new approach, creating a broader development space and unleashing new resources to promote growth.

According to Mr. Nguyen Manh Hung, from a situation of lacking science and technology (S&T), innovation, and digital transformation, we will move towards sufficiency, surplus, export, and large-scale export, as we have achieved with agriculture . “Each country has its own culture, context, level of development, and political system. Finding the right approach to breakthrough development in S&T, innovation, and digital transformation is paramount. Vietnam's approach is to place it under the comprehensive leadership of the Party,” Mr. Hung stated.

Minister of Science and Technology Nguyen Manh Hung believes that for science and technology, innovation, and digital transformation to become the central driving force of growth, it is necessary to measure the contribution of these three factors to GDP growth.

Institutional development becomes a competitive advantage. Focus on enhancing national competitiveness, contributing to economic growth and improving the quality of life for citizens. Develop within a complete and balanced ecosystem, encompassing institutions, infrastructure, human resources, the state, researchers, and businesses. Shift from input-based management to output-based management. Place science and technology within the context of digital transformation and innovation. Furthermore, focus on addressing major national challenges such as double-digit growth, productivity, quality, and national governance.

According to Mr. Nguyen Manh Hung, for science and technology, innovation, and digital transformation to truly become the central driving force of growth, the first thing to do is to measure the contribution of these three to GDP growth. The Ministry of Science and Technology considers this the first important step and is developing measurement methods at both the national and local levels. Mr. Hung emphasized: “Vietnam is one of the first countries to set a goal of measuring the impact of science and technology, innovation, and digital transformation on GDP growth. Measuring effectiveness is also a fundamental solution to combat waste. In Vietnam's context, in the period from now until 2031, the order of priority should be digital transformation, innovation, and science and technology.”

Regarding digital transformation, the main focus is on changing operating methods, accounting for 70%, while technology accounts for 30%, and this needs to be achieved immediately at 100% because of the existing digital foundation. Innovation should focus on supporting technological innovation and testing new technologies for businesses. Minister Nguyen Manh Hung stated that the Politburo has tasked the Government with directing the Ministry of Science and Technology to develop a national strategy for innovative startups, a nationwide startup ecosystem, where individuals can establish and operate businesses with the support of national digital platforms.

Mr. Nguyen Manh Hung argued that innovation also means innovating management and business models based on technology, bringing great value. And the institutional framework is crucial for innovation and development. Regarding spending on science and technology, it's important that every dollar from the State activates 3-4 dollars from businesses. In that case, 2% of the State's science and technology budget would become 2% of the entire society's GDP spent on science and technology.

“Another important mechanism to increase the effectiveness of the science and technology budget is to commission and purchase research results or reward effective research results instead of spending on research,” Minister Nguyen Manh Hung noted. According to Mr. Hung, to ensure the nurturing of scientific research capacity, including basic science and social science research, we will invest in knowledge input and accept the risks in output, but initially this budget will be around 15-20% of the total science and technology budget. Changing mindsets, perceptions, approaches, and methods is always the first factor determining the success of major policies and high goals.

"Science and technology, innovation, and digital transformation will be the three driving forces that will enable Vietnam to break through, escape the middle-income trap, and become a high-income developed country," Minister of Science and Technology Nguyen Manh Hung expressed his confidence.

Source: https://skhcn.laichau.gov.vn/tin-tuc/tin-kh-cn-trong-tinh/ba-dong-luc-de-nen-kinh-te-tang-truong-hai-con-so.html