Resolution 68 – A Massive Breakthrough For Vietnam’s Innovation Landscape

Over the past year, the Vietnamese government has actively expanded and updated new policies to strengthen the national economy through redefining various initiatives. Recently, the official issuance of Resolution 68 has embarked on a breakthrough shift in the position of the private sector, from being an important part to becoming a key driver of the national economy. The effect of Resolution 68 signifies the government’s new direction towards an economy driven by fairness, accelerated procedures for entry and access to resources, and elimination of legal barriers that prevent business growth.

This critical milestone opens a bright opportunity for private domestic and FDI enterprises to further enhance their business in Vietnam, contributing to leveraging the national economy’s attractiveness and deep integration into the global supply chain. Resolution 68 lays the foundation for Vietnam to become a leading innovation hub in the region with a focus on innovation, technology, and digital transformation.

The resolution fosters a dynamic and competitive private sector, encouraging collaboration between domestic and foreign enterprises, facilitating technology transfer, and capacity building. This collaborative environment not only enhances the competitiveness of individual companies but also strengthens Vietnam’s position in the global market.

Overview of Resolution 68

After more than 40 years of implementing economic reforms, the private sector has steadily grown and become a crucial driver in Vietnam’s modern economy. However, there are still many barriers that hinder or complicate the development of the private sector. As a result, Resolution 68 is expected to provide a new stepping stone for the private sector to break through and be given more opportunities to play a more significant role in the national economic development strategy.

The resolution emphasizes the goal of making the private sector “the most important driving force in the economy, a pioneering force to promote growth, create jobs, increase labor productivity, national competitiveness, industrialization, and modernization.” Accordingly, the resolution outlines specific visions, including:

• By 2030, the average growth rate of the private sector is expected to reach around 10-12% per year, higher than the overall economic growth rate, with labor productivity increasing by about 8.5-9.5% per year. Among these, more than 20 large enterprises will join the global supply chain.
• By 2045, the private sector is expected to contribute over 60% of GDP, actively participate in the global supply chain, and have high competitiveness in the international market.

A new dawn for digital innovation sectors

The focus of Resolution 68 includes promoting the private sector’s involvement in innovation, digital transformation, and the development of science and technology. This demonstrates Vietnam’s strong determination to shape its economic development towards modernization, enhancing its position and role in the global innovation process. With the vision of becoming one of the top 5 countries in terms of technological capacity and innovation, the resolution outlines specific policies for this sector, including:

• Establishing a regulatory sandbox framework for new technologies, creating a favorable environment for private enterprises to engage in research and the application of artificial intelligence, blockchain, big data, e-commerce, fintech, smart healthcare, and more.
  
• Providing easier access to resources for research and development in digital transformation and green growth sectors. Additionally, startups or venture capital funds supporting innovation and technology development will benefit from special tax exemptions and reductions.
  
• Strengthening connections between private enterprises, private enterprises with state-owned enterprises, and FDI companies through strategies to build business linkages within industry clusters and value chains, supporting technology transfer.
  
• Prioritizing resources to support the development of innovation centers for incubation, research, testing, development, and technology transfer, assisting businesses involved in innovation and startups.

A promising digital hub for global enterprises

With policies and orientations that emphasize the role of private enterprises in innovation, Resolution 68 is set to create a major turning point for Vietnam to strengthen its position in the global IT value supply chain. This will also open up new opportunities to promote strategic cooperation and collaboration between Vietnamese and international businesses in high-tech research. International enterprises that choose to cooperate and invest in Vietnam will benefit greatly from several factors:

• Access to High-Quality Talent: Vietnam boasts a young, dynamic, and highly skilled workforce, particularly in science, technology, engineering, and mathematics (STEM). Over 70% of the population is under 35 years old, with a growing number of university graduates, making Vietnam an attractive destination for talent in the tech industry.
  
• Comprehensive Digital Infrastructure: Vietnam is making significant investments in its digital infrastructure, including 5G networks, data centers, and national digital platforms, as well as the development of high-tech parks. These investments provide a solid foundation for technological growth and innovation.
  
• Sustainable Digital Economy: Resolution 68 highlights the importance of a sustainable digital economy, combining economic growth with environmental protection. The government is committed to green transformation and sustainable development, ensuring that technological growth aligns with environmental goals.
  
• Global Understanding: Vietnam currently has over 1,500 digital technology companies with revenues from international markets, accounting for approximately 80% of the total revenue of Vietnamese tech companies. This reflects the ability of Vietnamese tech enterprises to leverage both diverse international experience and effectively utilize national resources.

NTQ’s response to Resolution 68

To implement Resolution 68, NTQ will work alongside Vietnamese technology companies to maximize its role and make significant contributions to the national digital economy development process in various aspects, including:

• Leveraging Resource Competencies: NTQ will continue to focus on internal training activities while collaborating with universities and research institutes in talent incubation programs. We will also support startup projects and ideas led by students in the field of innovation.
• Proactive Global Collaboration: Resolution 68 emphasizes Vietnam’s integration into global value chains, and NTQ is committed to fulfilling this mission by expanding international partnerships. We aim to maximize the effectiveness of our “Global Collaboration” strategy to create long-term, practical, and effective technology collaboration bridges for international businesses.
• Maximizing New Technology for Practical Innovation: NTQ is committed to leveraging new technologies to drive practical innovations, such as applying the NxUniverse ecosystem to enhance productivity, automate processes through AI applications, and develop industry-specific product models and technology solutions

We believe that with our strong commitment to leveraging resource competencies, driving global collaboration, and maximizing new technologies, NTQ will play a key role in advancing the national digital economy, thereby helping to realize the goals and strategies outlined by Resolution 68 from the government.