New space for growth
Digital transformation in the manufacturing sector is one of the key solutions to improve competitiveness, contribute to promoting the digital economy, and create a new driving force for Vietnam's economic growth.
According to the Ministry of Information and Communications, in 2021 and 2022, the proportion of Vietnam's digital economy reached 11.91% and 14.26% of GDP. Preliminary estimates for the first six months of 2023, show this number has increased to about 14.96%, the boosted digital economy will support economic growth, especially in the current difficult context.
The room for economic growth in the new context has also come from innovation activities. In 2019, the National Innovation Centre (NIC) was established with the function of supporting and developing Vietnam's startup and innovation ecosystem, contributing to innovating the science and technology-based growth model.
As planned, in October 2023, the NIC will inaugurate a new operation base at Hoa Lac Hi-Tech Park and organise the Vietnam Innovation International Exhibition (VIIE) 2023, which is expected to attract the participation of 300 domestic and international enterprises, and about 40,000 visitors.
The fact that many large technology firms such as Meta, Google, Samsung, SK, Siemens, VISA and investment funds, and innovative start-up support organisations have confirmed their plans to attend VIIE 2023, with commitment activities in addition to Vietnam's development, will open up expectations for a stronger development of the innovation ecosystem in the near future.
Despite the volatile global investment environment, Vietnam remains a preferred destination for investors, thanks to its strong economic growth and young and highly skilled workforce. Up to now, 41 venture capital funds have committed to invest 1.5 billion USD during the 2023-2025 period, the total value of innovative startup investment in Vietnam is expected to reach 5 billion USD in this period.
Completing the legal framework
Vietnam's economic growth prospects in the last months of 2023 are gradually improving in a more positive direction. However, the economy still faces many risks, complicated and unpredictable fluctuations from the slow recovery of major trading partners, inflationary pressure in the world, and risks of disruption in the supply chain.
According to Nguyen Anh Duong, Head of the General Research Department, Central Institute for Economic Management (CIEM), in recent policy advice, CIEM still thinks in the direction of creating a large enough space so that businesses and investors can deploy new economic models.
For example, CIEM is proposing to the Government to develop pilot mechanisms in sectors that can soon create impetus for growth recovery, through several circular economic models, such as agriculture, forestry and fisheries; industry; energy and building materials.
In the research report on the overall solution to increase the capital absorption capacity of businesses and people in the current context, Dr. Can Van Luc and the authors of the Institute of Training and Research (the Bank for Investment and Development of Vietnam) said, that businesses also need to focus on digital transformation and application of information technology in development, management and operation of production and business activities; at the same time, training and developing high-quality human resources and promoting green and sustainable development, to match the trend of sustainable growth.
According to the Ministry of Planning and Investment, in addition to the task of focusing on implementing solutions to boost growth drivers in terms of investment, export, and domestic consumption, it is necessary to activate new growth drivers of the economy and take full advantage of external support resources to carry out innovation, digital transformation, green transition, new industries and fields such as semiconductors and hydrogen energy, to generate growth.
During this time, the Ministry of Planning and Investment is coordinating with agencies to research and propose amendments and supplements to relevant legal documents, to create more incentives for innovative businesses, promoting the innovation ecosystem in Vietnam to develop stronger.
In particular, it is proposed to amend Decree No.94/2020/ND-CP, stipulating preferential mechanisms and policies for the National Innovation Centre, to concretise regulations on investment incentives and institutions; particularly preferential policies and regimes for innovation activities.
