Innovation in Technology and Skills – Keys to Increasing Added Value

Technology is revolutionizing production and business practices globally. Nations leading in the adoption of modern technologies such as artificial intelligence (AI), blockchain, and automation have significantly boosted productivity and added value in production.

To overcome these barriers, Vietnam needs financial support policies and incentives to encourage businesses to invest heavily in research and development (R&D). Additionally, public-private partnerships to establish innovation centers offer an effective way for enterprises to access advanced technologies quickly and cost-effectively.

Technology is only effective when paired with a skilled workforce. One of the biggest weaknesses in Vietnam's labor market is the lack of highly skilled workers, especially in fields such as information technology, engineering, and supply chain management.

To address this issue, a comprehensive training strategy is essential, combining academic education with practical experience. Large enterprises should participate in designing on-the-job training programs and collaborate with educational institutions to create courses aligned with real-world needs. The government should also promote policies to subsidize tuition fees and provide scholarships to attract young workers to specialized skill training programs.

A prominent trend in the global economy is the “servitization” of manufacturing integrating services into products. These services include design research, maintenance, and technical support, significantly enhancing the value of final products.

Currently, services account for only about 12% of Vietnam’s total export revenue, far lower than countries like South Korea and Malaysia. This indicates ample room for growth in high-quality service industries such as software technology, finance, and digital services.

To promote this trend, Vietnam should invest in digital infrastructure, including 5G networks, data centers, and e-commerce platforms. Simultaneously, a favorable legal environment is necessary for service enterprises to access international markets and build global brands.

In the context of globalization, international cooperation is the fastest way to access advanced technologies. Countries like South Korea and Singapore have succeeded by leveraging strategic partnerships with multinational corporations to transfer technology and enhance domestic production capabilities.

Moreover, the capabilities of investment promotion agencies must be strengthened to build bridges between domestic enterprises and international partners. Sector-specific business connectivity programs, such as those in electronics, automation, and renewable energy, will help Vietnam gain quicker access to advanced technologies and management expertise.

Technological innovation and skill development are not isolated factors but complementary pillars that can help Vietnam build a modern economy capable of adapting to global market changes. To realize this ambition, Vietnam must take strategic steps, from investing in R&D to promoting international cooperation and modernizing vocational education programs.

The journey to increasing added value is not one that can be achieved in the short term. However, with coordinated efforts between the government, businesses, and educational institutions, Vietnam can turn challenges into opportunities. A technology- and skill-based economy not only ensures sustainable development but also affirms Vietnam’s position in the region and on the global stage.

By Ha Phuong