Participants at the workshop (Photo:https://www.undp.org/) Vietnam has enjoyed over three decades of uninterrupted economic growth tobecome a popular destination for private investors. However, socio-economicchallenges remain, and the impact of the COVID-19 pandemic has slowed progress.Private capital and blended finance investments will continue to be animportant component of Vietnam’s sustainable development.
Against this backdrop, the Government of Vietnam has made a strong commitmentto meet the Sustainable Development Goals (SDGs) by the 2030 Agenda through itsNational Action Plan 2030. Sci-tech and innovation are considered among themain drivers for socio-economic development in the country, as indicated inmany regulatory documents, and are key enablers for achieving the SDGs.
However, Vietnam’s public and private investment in science and technologies isrelatively low compared to the global average. At less than half a percent ofGDP, investment rates are almost five times lower than the average sci-techinvestment rate of 2.23%.
Unlocking private capital requires robust market intelligence and stronginvestment relationships. Participants in the conference shared goodinternational practices to attract private investment in sci-tech andinnovation development, exchanged insights around SDG investment areas in Vietnam,as well as existing and potential barriers that need to be overcome wheninvesting in sci-tech and innovation with the aim of generating a greaterimpact on society, the environment, and the economy.
During the conference, the Vietnam SDG Investor Map (the Map) was launched toprovide policymakers, investors, and relevant stakeholders with marketintelligence to direct their capital and activity toward SDG-aligned investmentthemes and business models, known as Investment Opportunity Areas (IOAs). Thisserves as a basis for Vietnam to invest in SDG-priority areas to generateprofit and consider environmental and social outcomes. The Map was madepossible with support from the non-profit Centre for Impact Investing andPractices (CIIP), UNDP SDG Impact’s anchor partner in the ASEAN region.
The Map will be used to guide the private sector to where funding is neededmost within the country, and they are encouraged to apply sci-tech innovationand efforts to realise the IOAs. Using UNDP SDG Impact’s robust methodology,the Map has identified 14 IOAs across 6 SDG priority sectors that requirefunding, and match the Government’s policies, including Education, Healthcare,Food & Beverages, Infrastructure, Renewable Energy and Financial Services.
The Map also identified seven white spaces which are IOAs that have growthpotential and are aligned with the national development needs, but whereGovernment policies can go further to foster private sector investmentparticipation.
To accelerate private investment in sci-tech and innovation development, theMinistry of Science and Technology, UNDP Vietnam and its partners willfacilitate dialogues among ministries, investors, academia, experts, andbusinesses to identify solutions to overcome existing barriers and contributeto the development of sci-tech and innovation in Vietnam.
The market intelligence from the Map is freely available on the SDG InvestorPlatform./.
VNA
