Hanoi (VNA) – The third plenum of the Party Central Committee has adopted a resolution to retool Vietnam’s development model around science – technology and innovation, which are expected to jolt the economy into a higher gear.
Growth model driven by science – technology
Dr. Le Xuan Sang, Deputy Director of the Institute of Vietnam and World Economy under the Vietnam Academy of Social Sciences, said the Vietnamese economy has long thrived on comparative cost advantages such as cheap labour and natural resources. Yet, these edges are gradually eroding as around-the-clock automation and robotics deliver superior productivity.
Raising the level of scientific and technological development is the only way to break out of the middle-income trap. Without it, Vietnam will remain stuck in low-value segments, Sang said.
According to him, rolling out the new development model still hits major roadblocks, including inadequate disbursement mechanisms and cumbersome, lengthy procedures that hamstring researchers. Investment remains too modest, with sci-tech spending still below 2% of GDP, while a management mindset and limited innovation awareness across society and businesses continue to drag.
Notably, the state budget approach is still captive to a “capital preservation” doctrine that treats technology investment as something that must be absolutely safe and loss-proof — a posture directly at odds with the nature of venture investment and innovation, undercutting the willingness of researchers and firms to take risks and chase new ideas.
To make policies like Resolution 57-NQ/TW and Resolution 68-NQ/TW actually work, Vietnam needs breakthrough solutions, Sang said.
First, financial mechanisms must be unlocked fast, with disbursement procedures for sci-tech projects stripped down as much as possible. Management thinking needs to pivot from “cost control” to “development facilitation” while making room for risk in experimental research.
Second, investment must be bold and effective, with a steady rise in the state budget share for science – technology and market-based capital channels opened up. The stock market, in particular, should play a bigger role in pooling medium- and long-term capital for tech firms instead of sitting on the sidelines.
Third, Vietnam needs to build a broad innovation ecosystem. That means technology incubators, startup investment funds and sharper incentives to pull in top talent.
“Only by shifting decisively from a "management" mindset to a "development facilitation" one can Vietnam fully unleash its resources and turn science – technology into a lever that ushers the economy into a new phase,” Sang affirmed.
Shipbuilding charts the course
Engineer Hoang Hung, Chairman of the Vietnam Shipbuilding Industry Association under the Vietnam Union of Science and Technology Associations, said several groups of policies have to move in lockstep.
In science – technology, Vietnam needs mechanisms for commissioning and supporting research as well as technology transfer for the design and construction of hi-tech vessels and ships powered by clean fuels such as liquefied natural gas, methanol and hybrid. Shipyards should also be pushed to digitise design and production and adopt digital simulation and automated production lines.
On the business development front, preferential credit and capital guarantees should help shipbuilders upgrade their infrastructure. At the same time, Vietnam should foster a domestic supporting-industry ecosystem, including steel, machinery, marine equipment, to lift the share of locally made components.
Shipbuilding companies should also be encouraged to strike partnerships with international shipping groups to secure orders and technology transfers, he said.
In his view, training courses for shipbuilding engineers and technical workers need a full overhaul to meet international standards. Scholarships and job commitments can lure students into the field while cooperation among schools, professional associations and enterprises be much tighter, so workers get hands-on training and stay current on new technologies.
Green transition, digital transformation and the push for a sustainable marine economy raise the stakes. The domestic shipbuilding industry must quickly master technologies for building ships that run on alternative and eco-friendly fuels, in line with increasingly tough emissions rules from the International Maritime Organisation (IMO).
On digital transformation, shipyards should gradually digitise the entire design – production – quality chain and tap artificial intelligence for design optimisation and predictive maintenance. That will slash construction times and improve precision.
On workforce and production, the country needs a corps of engineers and workers capable of mastering new technologies. Shipbuilding facilities must be restructured toward specialisation and away from a fragmented approach. Each shipyard should develop its own strengths and go head-to-head with major regional hubs.
At the same time, Vietnam needs a clear market strategy that ties shipbuilding development to domestic demand for maritime transport fleets, oil and gas services and offshore renewable energy. That will create steady orders before Vietnamese builders push into international competition, Hung added./.
