Vietnam pivots to 'enabling institutions' to spark tech productivity

Vietnam is fundamentally rethinking its approach to science, technology, and innovation (STI) to move beyond traditional growth models. At a national quality and productivity forum in Ho Chi Minh City, experts urged the government to stop acting as a primary funder and manager of research and instead become an architect of "enabling institutions."

This proposed shift focuses on the creation of foundations, infrastructure, platforms, and standards that allow the private sector to lead innovation. According to Nguyen Nam Hai, head of STAMEQ, science and technology only generate actual productivity when businesses are capable of accessing, absorbing, mastering, and applying those tools within their own production and management systems. The goal is to ensure that technical advancements translate directly into economic gains, particularly for small- and medium-sized enterprises (SMEs).

A New Innovation Ecosystem

To achieve this, Professor Dr. Vu Minh Khuong of the Lee Kuan Yew School of Public Policy proposed expanding the traditional "three-party" linkage—consisting of the state, research/education institutions, and businesses—into a more open innovation ecosystem. This expanded model would integrate start-ups, venture capital, and international partners to accelerate the flow of technology into the market. Dr. Vu emphasized that the government's role should evolve toward coordinating this ecosystem and developing the necessary markets and platforms rather than simply providing grants.

This transition is supported by a broader shift in management philosophy. Dr. Nguyen Duc Hien of the Party Central Committee's Commission for Policy and Strategy noted a move away from pre-license inspection and control toward a system of facilitation and post-license inspection. This regulatory pivot is guided by the legal framework established in Politburo Resolution No. 57-NQ/TW, dated December 22, 2024, which provides the roadmap for STI and digital transformation.

Driving Global Competitiveness

This strategic pivot addresses the bureaucratic friction that often stalls the adoption of new technologies. By moving from a "funding" role to an "enabling" role, the Vietnamese state aims to empower the private sector to drive the country's productivity and global competitiveness. The current objective is to integrate artificial intelligence, digital tools, and green technologies into traditional industrial sectors to enhance the efficiency of capital, energy, and natural resources.

The Path Forward

As Vietnam enters this new phase of development, the focus remains on whether these enabling institutions can be scaled quickly enough to support SMEs. While the policy framework is now in place via Resolution 57-NQ/TW, the success of the transition depends on the government's ability to successfully delegate the leadership of innovation to the private sector while maintaining the necessary infrastructure to support it. This shift represents a critical gamble on market-led growth over state-directed research, aiming to transform Vietnam into a high-tech hub in Southeast Asia.