Science - technology, innovation, digital transformation will help Vietnam's economy "take off"

For the economy to grow at a high and continuous rate, Vietnam must rely on science and technology, innovation and digital transformation.

For the economy to grow at a high and continuous rate, Vietnam must rely on science and technology, innovation and digital transformation. (Source: Pexels)

For Vietnam’s economy to grow by over 8% this year and double digits in the coming period, contributing to realizing the aspiration for prosperity by the milestones of 2035 and 2045, there is no other way but to rely on science and technology, innovation and digital transformation. This is not only a choice, but also a “path of survival” for Vietnam.

This was actually affirmed by General Secretary To Lam right from the time Resolution No. 57-NQ/TW of the Politburo on breakthroughs in science and technology development, innovation and national digital transformation was issued at the end of 2024. And there is another reality, which is that when the Socio-Economic Development Strategy 2021-2030 was issued, science, technology and innovation were identified as one of the important factors driving economic growth.

Over the past 4 years, science, technology and innovation have also been promoted. Thanks to that, the contribution rate of Total Factor Productivity (TFP) to economic growth has increased continuously. If in the 2011-2015 period, this figure was only 37.5%, then in the 5-year period (2021-2025), that rate has improved significantly.

In 2022, the contribution rate of TFP to GDP growth reached 43.8%, and in 2023 it increased to 44.8%.

However, there is still a considerable gap compared to the target of 55% in the 2025-2030 period set out in Resolution 57-NQ/TW. In this context, science - technology, innovation and digital transformation are the "keys".

To maintain and increase the TFP ratio in GDP, there is no other way but for Vietnam to continue promoting institutional reform, encouraging innovation and applying modern technology to improve labor productivity as well as national competitiveness.

That is also one of the reasons why, right after the Politburo issued Resolution No. 57-NQ/TW, the Government had an action program to implement the Resolution, with the goal of making science, technology, innovation and digital transformation the three pillars of national development in the new era.

A series of conferences related to promoting science - technology and innovation have been held. Most recently, the first meeting of the Government Steering Committee on science - technology development, innovation, digital transformation and Project 06.

The consistent viewpoint is once again affirmed that in the current context, it is necessary to develop breakthroughs in science and technology, innovation and digital transformation. That is the choice, the solution for rapid and sustainable development. This is also an important growth driver of the economy, the "path to survival" if we want to make a breakthrough in development.

In the current situation, the immediate solution - there is no other way - is to remove institutional and policy obstacles; increase investment in science and technology; and promote training of high-quality human resources to meet development requirements.

There is a story that has long been mentioned in the development of science - technology, innovation, which is whether to accept risks in scientific research or not? The good news is that the Government is willing to accept and is perfecting this mechanism.

Administrative procedures in the above-mentioned field are also being studied for reform, because the Prime Minister himself has clearly stated that with a jungle of procedures, nothing will be done.

The state budget expenditure for science and technology is also expected to increase to 3%, initially in 2025. 2% of the budget (equivalent to 51,000 billion VND) has been allocated for investment in this field. In addition, 1% of regular expenditure is also being arranged, initially from the reserve fund.

The “door” is opening wide for Vietnam to promote science and technology, innovation and digital transformation. Cooperation with foreign investors in cutting-edge technology fields, including research and development (R&D) activities, will also facilitate Vietnam to move up the ladder of the global value chain.

On its "path to survival", besides the efforts of the domestic economy, Vietnam also needs such cooperation from foreign partners.

Source: https://baoquocte.vn/khoa-hoc-cong-nghe-doi-moi-sang-tao-chuyen-doi-so-se-dua-kinh-te-viet-nam-cat-canh-308366.html