High technology in the era of progress.

Increase labor productivity

From 2025 onwards, Vietnam will enter an era of rapid transformation, aiming to become an upper-middle-income country by 2030 and a high-income industrialized country by 2045. Average growth rates could reach double digits from 2026 onwards.

This is a time when Vietnam has a very high chance of becoming a highly developed country and a member of the Organization for Economic Cooperation and Development (OECD). Essentially, this is a fundamental shift in the economic structure from a resource-based or efficiency-based model to a growth model based on innovation.

Thanks to the promotion of innovation, businesses have improved productivity and product quality.

Associate Professor Dr. Nguyen Thuong Lang believes that to achieve this unprecedented growth rate, in addition to accumulating significant development resources during 40 years of continuous and decisive reform, and establishing important development foundations, a fundamental reform of the growth model is necessary, with high technology as the core element. Priority technologies include semiconductor materials technology, artificial intelligence, blockchain, automation, data, biotechnology, and space technology.

Sharing this view, Professor Nguyen Dinh Duc pointed out that the lessons from countries like Japan, South Korea, India, China, and many other developed nations have shown that high technology is the key to national prosperity and wealth. Vietnam has no other path. Never before have the scientific and technological achievements of the 4.0 industrial revolution and artificial intelligence impacted all aspects of social life and the globe as quickly and powerfully as they do today.

According to the annual Global Innovation Index (GII) rankings of the World Intellectual Property Organization (WIPO), it can be seen that countries all value innovation. Almost all countries consider innovation to be the only and most effective means of improving their national standing. All high-level resources, or more specifically, elite resources, are focused on improving this innovation index.

One of the particularly important conditions for promoting continuous innovation to create a solid foundation for innovation in the growth model, unleash development potential, and maximize the factors of in-depth growth is the need to increase research and development (R&D) spending. There is almost a fierce race among countries in using R&D to achieve technological excellence in order to create a competitive technological advantage, commercialize technology, and gain a monopoly advantage in high technology. In other words, high technology has become a target to be mastered, and this also indicates the particularly important mission of high technology in determining the strategic position of nations.

In reality, throughout the period from 2013 to 2023, Vietnam's R&D spending remained quite modest, ranging from only 0.3 to over 0.5% of GDP. While this figure has increased significantly in absolute terms, it is still 4-8 times lower than that of countries with leading innovation potential worldwide. Meanwhile, South Korea has the highest rate at around 5% of GDP, while other countries such as the United States, Japan, China (excluding Hong Kong), and the EU all have lower rates of 3-4%.

These figures demonstrate Vietnam's enormous potential for high-tech development if R&D spending is significantly increased and utilized effectively. The state of high-tech development will change considerably when this investment source, both private and state-owned, is actively promoted.

Leading the way, shifting the growth model towards in-depth development.

The model of intensive growth is the means to create momentum for the country's advancement in a new phase. High technology is the core of this new growth model. Both theory and practice show that Vietnam has the conditions to develop high technology to serve the effective transformation phase. During this transitional phase, growth could reach double digits from 2026 onwards. Vietnam is connecting with leading technology corporations to advance towards high technology. This shows that the development of high technology is considered important and linked to innovation.

In the era of national development, high technology needs to take the lead in changing the growth model, increasing labor productivity, affirming its irreplaceable position and role in the model of in-depth growth with great spillover effects, and transforming the country into a high-level industrialization stage, aiming to become an industrialized nation capable of joining the group of the most developed industrialized countries by 2045.

According to Professor Nguyen Dinh Duc, achieving the mission of high technology in Vietnam requires certain solutions. First, there needs to be a more complete understanding of the particularly important, and even decisive, position and role of high technology in improving the nation's long-term standing and in the new development context. Effective communication about high technology needs to be strengthened to maximize interest and continuous efforts in developing all aspects of high technology.

Simultaneously, a high-tech development ecosystem is needed, based on the High-Tech Project and Law, as well as other relevant regulations. More investment in high technology is necessary, along with incentive mechanisms to effectively encourage high-tech development. The high-tech market should be developed in conjunction with appropriate models of high-tech investment cooperation or international joint ventures.

In particular, it is necessary to prioritize the development of a high-tech research and development workforce, value high-tech centers, innovation centers, and the construction of high-tech product chains, connect domestic and international high-tech centers, and find solutions to shorten the development gap, even creating new, effective development models that keep pace with global trends.

On the other hand, high-tech businesses and corporations need a strategic investment plan to master and aggressively develop high technology. Effective and decisive policies are needed to promote this technology. Emphasis should be placed on fostering innovative startups to reach technological peaks in the new development phase. They should proactively learn from best practices and experiences to apply them appropriately to each relevant high-tech field.

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