Vietnam has quietly become one of Southeast Asia’s most dynamic science and technology stories. Over the past decade, the country has shifted from a low R&D baseline toward a rapidly improving innovation profile, driven by stronger policy direction, rising private investment and increasingly visible research outputs. Its strategy is practical and targeted: upgrade manufacturing, capture more value in electronics and semiconductors, and scale domestic startups and deep-tech ventures that can compete globally.
Progress shows clearly in headline indicators. Vietnam ranked 44th in the 2025 Global Innovation Index—a notable rise for a country still building its research base. R&D intensity remains modest at around 0.42 percent of GDP, but investment is steadily rising, diversified across government agencies, private firms and foreign partners. The upward trend signals a shift from low-cost manufacturing toward higher-value, knowledge-driven activity.
National priorities are long-term and clearly defined. The Ministry of Science and Technology (MOST), together with several line ministries, is implementing a science, technology and innovation strategy running to 2030 with a vision to 2045. The strategy prioritises digital transformation, advanced manufacturing, biotechnology, clean energy and foundational scientific research. Senior leadership consistently frames science and innovation as strategic pillars of Vietnam’s rise. As the Prime Minister has emphasized, STI is not an accessory to development—it is central to Vietnam’s economic future.
Two strands define Vietnam’s execution: institutional strengthening and market integration. Research organisations such as the Vietnam Academy of Science and Technology (VAST), major universities, and a growing network of innovation centres are being reshaped to focus on applied research and industry collaboration. Policy tools—tax incentives, R&D credits, startup support programmes and innovation hubs—are designed to accelerate technology transfer and commercialization. The system aims to reduce fragmentation and ensure that research results flow more directly into the economy.
Human capital trends are encouraging. Vietnam now has roughly 770–780 researchers per million people, a significant increase compared to a decade ago. Yet the country still trails more R&D-intensive neighbours, and talent shortages remain a bottleneck. The government is investing in STEM scholarships, returnee incentives, and expanded PhD and post-doctoral pipelines. These measures reflect a recognition that people—not just infrastructure—determine whether prototypes eventually become market-ready technologies.
The private sector is now a major engine of innovation. High-tech exports, particularly electronics and components, continue to dominate Vietnam’s trade portfolio, and multinational firms increasingly establish R&D and engineering centres in the country. Domestic startups are active in fintech, deep tech, biotech and digital services, supported by a growing but still developing venture-capital ecosystem. The rise of private-sector R&D marks Vietnam’s transition from an assembly-based role in global value chains to higher-value, innovation-integrated positions.
Research outputs show steady improvement. Publication counts, patent filings and high-tech exports have all climbed over the past several years. Vietnam performs especially well on knowledge and technology outputs relative to inputs, reflecting an ability to generate returns from modest resources. Still, the translation of research into commercial products remains a core challenge. Bridging the “valley of death” requires more consistent funding for applied research, stronger tech-transfer offices, and deeper engagement from industry.
Leadership voices underscore the need for balance between ambition and execution. Senior officials within MOST have stressed that Vietnam must focus not only on investing in research inputs but on ensuring that outputs—products, services, patents and real-world innovations—make their way into markets and communities. This signals a shift from input-heavy planning toward outcome-driven policy design.
Infrastructure investment is targeted and strategic. Vietnam is expanding science parks, high-performance computing resources, pilot production lines, AI centres and biotechnology incubators. Rather than attempting to build everything at once, the country is concentrating resources on facilities that can support promising sectors and accelerate industry collaboration. This approach uses capital efficiently and positions the country to scale more advanced research when capacity matures.
Despite strong momentum, structural challenges remain. R&D intensity is still low by OECD standards; researcher density must continue to improve; and coordination across ministries, universities and enterprises can be uneven. Intellectual-property protections, managerial capacity within firms and the depth of venture finance all require strengthening. The global technology landscape is also highly competitive, meaning Vietnam must focus on areas where it can lead, not just follow.
Looking ahead, Vietnam’s most promising path is pragmatic and focused: deepen strengths in electronics and advanced manufacturing; build capabilities in biotech, agritech and AI; invest in national data ecosystems and Vietnamese-language AI models; and continue strengthening university–industry linkages. With political commitment at the highest levels, rising private investment and an increasingly skilled workforce, Vietnam is positioned to move from an emerging innovation performer to a true regional leader—provided it sustains investment in people, institutions and the policy frameworks that turn scientific potential into economic momentum.
