Innovation in Industry: Vietnam's Future on the Global Map

The Role of Innovation in Modern Industry

Innovation has become an indispensable factor in the industrial development of nations. Technological breakthroughs such as artificial intelligence (AI), 3D printing, and blockchain have transformed how businesses manufacture, distribute, and access markets. For instance, Germany has leveraged Industry 4.0 to enhance productivity and product quality, establishing itself as a leading global exporter.

In Vietnam, innovation in industry goes beyond improving labor productivity; it also helps businesses reduce costs and enhance competitiveness. Heavy industries such as steel production, chemicals, and energy are adopting automation and big data to optimize production processes.

Meanwhile, light industries, particularly consumer goods and food production, are shifting toward more sustainable models, utilizing green technologies to minimize environmental impacts. This is not only an inevitable trend but also an urgent requirement as Vietnam commits to achieving net-zero emissions by 2050.

Resolution 57: Driving Force for Industrial Innovation

Resolution 57 places innovation at the heart of the national industrial development strategy, considering it a solution for Vietnam to “leapfrog” in the new era.

In addition, priority is given to key industries such as information technology, new material production, renewable energy, and biomedical science. These sectors not only have high growth potential but also the ability to produce breakthrough technological products, enabling Vietnam to compete in international markets.

A highlight of the policy is the establishment of venture capital funds and innovation support funds, expected to facilitate small and medium enterprises (SMEs) and tech start-ups in implementing innovative projects.

Challenges and Solutions in Industrial Innovation

Although innovation is yielding positive results, Vietnam’s industrial sector still faces significant challenges.

First, the legal framework and policies supporting innovation remain inconsistent. Many businesses report that registering technology patents and securing funding for research projects involve cumbersome and time-consuming procedures. Institutional reform and administrative simplification are prerequisites for fostering innovation in the industry.

Second, human resource capacity is a major limitation. While demand for high-tech engineers and R&D specialists is rising, the current education and training system does not meet the practical needs of businesses. The government must focus on developing high-quality human resources through programs linked with enterprises and international organizations.

Third, a lack of investment in R&D is a considerable barrier. Despite increased public funding for science and technology, private sector participation remains limited. Policies offering tax incentives, credit support, and public-private partnership mechanisms need to be aggressively implemented to encourage businesses to invest in innovation.

To achieve this goal, close coordination among the government, businesses, and the scientific community is essential. Only by addressing current barriers and making effective investments in human resources and technology can Vietnam build a modern, innovative, and sustainable industrial base, ready to compete in the global market.

By Nguyen Vu Anh