Vietnamese Science and Technology Firms Strive to Convert Innovation into Market Value Amid Policy Support

In Vietnam's evolving knowledge economy, the value of science and technology enterprises extends beyond tangible assets to include technological capability and intellectual property. Despite this, many start-ups in the sector struggle to translate ideas and research outcomes into commercially valuable products, underscoring the necessity for fostering authentic innovation within enterprises.

The rapid advancement of science and technology has heightened demands for improved corporate quality and value. Application of technology in production processes enables enterprises to increase automation, optimize workflows, and reduce operational costs. Additionally, technology enhances product quality, boosts market competitiveness, and facilitates the emergence of new business models. Amid deeper economic integration, many companies are also adopting technological solutions to reduce emissions and comply with international environmental standards.

Nonetheless, many science and technology enterprises continue to face difficulties in effectively harnessing new technologies. Nguyen Quang Kien, Director of Thuan Thanh Technology Solutions Company, observed that numerous enterprises have yet to embark on genuine innovation and technology application, often due to a lack of clarity about their core needs prior to investment. This results in hesitancy or misguided investments that fail to yield expected outcomes and may lead to business failure.

Dang Tan Duc, Director of the R&D Institute under Becamex Group, highlighted the need for Vietnamese science and technology firms to accelerate their shift from simple assembly operations to higher value-added sectors driven by science, technology, and innovation. He advocated for the decentralization of innovation and start-up support centers beyond major urban areas, aligning them with local strengths and enterprise capabilities.

Duc further recommended organizing budgets and investment strategies for science, technology, and innovation along integrated chains to ensure flexibility and continuity. He proposed a public-private partnership model for scientific research activities, combining state mechanisms and policies with enterprise resources and advantages to optimize operational quality, efficiency, and commercialization.

Current state policies position enterprises at the center of innovation through measures such as tax incentives, interest rate support, and financial assistance for activities including scientific research, technology development, application, transfer, and innovation. Financial support vouchers are also provided to promote innovation and product commercialization by facilitating market access and encouraging user engagement with new products and services.

Moreover, authorities are exploring the establishment of a specialized stock trading market for innovative start-ups, alongside national and local venture capital funds to invest in and support the innovative start-up ecosystem.

Despite a relatively open and favorable legal framework and operational mechanisms, science and technology enterprises still confront numerous barriers. Many lack inventions or innovations with practical and economic value. Funding for research, innovation, and implementation remains limited, while investment in technological transformation and workforce training is insufficient. Confidence in the applicability of domestic innovations is low, hindering competition with established or imported products.

Policy and procedural obstacles also persist, including cumbersome intellectual property registration processes, inadequate copyright protection mechanisms, and weak enforcement against infringement. Additionally, insufficient supervision has allowed some entities to exploit preferential policies for personal gain, undermining national science and technology development objectives.

Hoang Ngoc Nhan, Director General of the National Agency for Start-ups and Technology Entrepreneurship under the Ministry of Science and Technology, emphasized that technological capability and innovation are vital for science and technology enterprises. He described the current period as a 'golden' opportunity for technology firms to achieve breakthroughs, supported by policies that place enterprises at the ecosystem's core, recognize science and technology as strategic priorities, and acknowledge the private sector as a driving force.

Nhan stressed that technology enterprises, especially start-ups, require the intellectual community's ideas, initiatives, and inventions to transform concepts into practical products. This collaboration creates opportunities for commercialization, enhances corporate value, strengthens domestic market presence, and facilitates gradual international expansion.

Additionally, artificial intelligence is driving profound industry changes, coinciding with a restructuring of Vietnam's education and vocational training system. These developments are reshaping labor market dynamics and expanding choices for learners.

In related developments, the Vietnam National Space Centre has signed a cooperation agreement with the Japan Aerospace Exploration Agency, signaling ongoing international collaboration in science and technology.