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Minister Nguyen Manh Hung: Innovation, mastering technology to escape the 'middle-income trap'

DNVN - Minister of Science and Technology Nguyen Manh Hung said that without innovation and mastery of technology, it will be impossible to escape the "middle-income trap" and become a high-income developed country.

Tạp chí Doanh NghiệpTạp chí Doanh Nghiệp29/08/2025

The second innovation of Vietnamese science and technology
Speaking at the forum "Future of science and technology, innovation and national digital transformation", held on the morning of August 29 at the National Exhibition and Fair Center ( Hanoi ), Minister Nguyen Manh Hung said that science and technology, innovation and digital transformation are the three central pillars and breakthrough driving forces for Vietnam to develop rapidly, sustainably and self-reliantly.
This viewpoint is completely consistent with the spirit of Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo when emphasizing that these three factors are decisive for Vietnam to rise up, narrow the gap with developed countries and achieve national strategic goals.

 Minister of Science and Technology Nguyen Manh Hung. Photo: Hien Thao

"Combining science and technology, innovation and digital transformation aims to create a synergistic power where science and technology provide the knowledge foundation and technical tools, innovation transforms that knowledge into new products, services, and business models, digital transformation opens up space for deployment and expansion of application scale at high speed and low cost. The combination of these three factors will determine the country's competitiveness, is the driving force to realize the aspiration of making Vietnam a developed country with high income and affirming the position and national character in the digital age" - Minister Nguyen Manh Hung said.

According to Mr. Hung, over the past 80 years, science and technology have accompanied the nation in overcoming wars, building the country, and gradually bringing Vietnam into integration and development. Minister Nguyen Manh Hung said that Vietnam's first renovation in 1986 opened the era of integration and development of a socialist-oriented market economy, and the second was to "escape the middle-income trap" and become a developed country with high income.

"As the second innovation in science and technology after the first in 1986, this innovation Vietnam needs to build a national innovation ecosystem with enterprises at the center, scientists as the core and the state playing the role of creator and leader. Vietnam must master technology because if it does not master technology, Vietnam will continue to be stuck in the low value chain, stuck in middle income and unable to decide the nation's destiny," said Minister Nguyen Van Hung.

Regarding digital transformation, Mr. Hung emphasized that digital transformation must be comprehensive and inclusive: from digital government, digital economy to digital society so that all people and businesses can enjoy the fruits of development. Digital transformation needs to be carried out synchronously and comprehensively, not half-heartedly. This is the environment, the new land for rapid development of science and technology and innovation.

6 solutions to develop science and technology

Reporting at the Forum, Mr. Hoang Minh, Deputy Minister of Science and Technology, said that despite many achievements in the field of science and technology, Vietnam still has problems that need to be solved: Spending on research and development (R&D) is only about 0.5% of GDP, lower than the world average (2.4%). Resolution 57 sets a target that by 2030, R&D spending will reach 2% of GDP, with society contributing over 60% of total spending on science and technology.

 Deputy Minister of Science and Technology Hoang Minh. Photo: Hien Thao

"Vietnam is one of the few pioneering countries that clearly recognizes the importance of integrating science and technology, innovation and digital transformation. To develop science and technology, Vietnam needs to focus on six solutions, including perfecting institutions, developing human resources, investing in upgrading scientific infrastructure and appropriate tax policies. In particular, it is necessary to focus on strategic technology as well as prioritizing basic research to support the development of strategic products of the country," said Deputy Minister Hoang Minh.

Innovation is expected to contribute significantly to GDP growth, with a contribution of 3% out of the total 4% of science, technology and innovation. Vietnam has a vibrant startup ecosystem, with more than 3,000 startups by 2024 and venture capital investment reaching 1 billion USD. However, the number of patents is still low and the commercialization rate is only 5-7%. Deputy Minister Hoang Minh said that to solve this problem, it is necessary to build a national innovation ecosystem, promote the development of intermediary organizations such as innovation support centers, provide financial support and promote innovation culture.

According to Deputy Minister Hoang Minh, digital transformation is a "creative destruction" when creating a digital environment, giving rise to many new, very new things, such as new products, services, new business models, new assets such as technology taxis, data, digital money... Therefore, the field of digital transformation needs to be concerned with institutional issues rather than technology.

The forum "Future of science and technology, innovation and national digital transformation" includes:

Session 1 focuses on the future of science and technology, with a focus on fundamental technologies and strategic technologies.

Session 2 delves into solutions to promote innovation and build a national creative startup ecosystem.

Session 3 discussed digital transformation, especially digital infrastructure and digital society.

Session 4 is an in-depth discussion revolving around 4 topics: Developing human resources for the future of science and technology, innovation and digital transformation; perfecting mechanisms, policies and laws on science and technology, innovation and digital transformation; enhancing international cooperation and promoting the leading role of technology enterprises.

The forum is not only an opportunity for the science and technology community, innovation and technology enterprises at home and abroad to share visions and connect resources, but also an event to affirm the determination to make science and technology, innovation and digital transformation become the central driving force for Vietnam's rapid and sustainable development in the new period.
Hien Thao

Source: https://doanhnghiepvn.vn/cong-nghe/bo-truong-nguyen-manh-hung-doi-moi-sang-tao-lam-chu-cong-nghe-de-thoat-bay-thu-nhap-trung-binh/20250829020643856


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