Vietnam's New Growth Model Prioritizes Science, Tech, and Digital Transformation

Vietnam's Communist Party Central Committee is accelerating the implementation of Politburo Resolution 57, which designates science, technology, innovation, and digital transformation as key growth drivers for the nation. A recent meeting of the Central Steering Committee, chaired by Party General Secretary and State President To Lam, confirmed that the resolution's promotion has entered a new phase. Under the new development model, Vietnam aims for self-reliance, innovation, a people-centered approach, sustainability, and global integration. Science and technology, innovation, digital transformation, and artificial intelligence (AI) are positioned as the main engines of growth, with enhanced productivity and efficient resource allocation as core principles. This strategy is crucial for Vietnam to escape the middle-income trap and enhance its international competitiveness in high-value segments. This direction aligns with PwC's forecast that increasing investment in AI-related infrastructure will drive the global M&A market. Vietnam is signaling its ambition to master high-value segments within the global value chain, particularly in the semiconductor industry, laying the groundwork for strengthening competitiveness in AI, electronics, and the digital economy. The progress in digital transformation is also impacting daily life. The simplification of online administrative procedures, such as electronic visa issuance, has made it easier for foreigners to live and work in Vietnam, reflecting early successes of Resolution 57. In terms of infrastructure, 5G base station deployment is progressing rapidly, covering approximately 92% of the population, a pace significantly faster than in many developed countries. Furthermore, a large-scale high-tech park is planned near Hanoi to bolster connectivity within the Northern Key Economic Region. Vietnam is enhancing its international presence in science and technology through student participation in global science competitions and research findings published in prestigious scientific journals. Investments are also being made in cutting-edge fields such as quantum technology and astrophysics, focusing on future technological innovation and talent development. This state-led strategy, driven by the Communist Party's single-party system, to promote science, technology, and digitalization marks a significant step for Vietnam as it transitions to its next phase of development, following rapid economic growth. Source: VietnamPlus English