Presenting a report at the ongoing 14th National Party Congress in Hanoi on January 21, Hung remarked the Party has broadened and redefined the scope of science and technology, innovation and digital transformation under a new approach, creating greater development space and unlocking new resources to support economic growth.

According to Hung, Vietnam is shifting from a position of shortage in science and technology, innovation and digital transformation toward sufficiency, surplus and eventually large-scale exports, similar to what it has achieved in agriculture.

“Each country has its own culture, context, level of development and political system. Identifying the right approach to achieve breakthroughs in science and technology, innovation and digital transformation is of paramount importance. Vietnam’s approach is to place this process under the comprehensive leadership of the Party,” he explained.

Hung stressed the need to turn institutions into a competitive advantage, focusing on enhancing national competitiveness, contributing to economic growth and improving people’s quality of life. Development, he asserted, should take place within a complete and balanced ecosystem encompassing institutions, infrastructure, human resources, the state, researchers and businesses.

He also highlighted the shift from input-based management to output-based management, placing science and technology within the broader context of digital transformation and innovation, while targeting major national challenges such as double-digit growth, productivity, quality and national governance.

To ensure that science and technology, innovation and digital transformation become true growth drivers, Hung noted the first priority is to measure their contribution to GDP growth. The Ministry of Science and Technology is currently developing methodologies to assess these impacts at both national and local levels.

“Vietnam is among the first countries to set a goal of measuring the impact of science and technology, innovation and digital transformation on GDP growth,” Hung said, adding that performance measurement is also a fundamental solution to preventing waste. Taking into account Vietnam’s current conditions, he suggested the priority order through 2031 should be digital transformation, innovation and then science and technology.

On digital transformation, Hung noted that changes in operational models account for about 70% of the process, while technology represents 30%. With digital foundations already in place, implementation must move forward fully and immediately.

Innovation efforts, meanwhile, should focus on supporting technological innovation and piloting new technologies for businesses. Hung revealed the Politburo has tasked the government with instructing the Ministry of Science and Technology to develop a national strategy for a startup nation and mass entrepreneurship, enabling individuals to establish and operate businesses with support from national digital platforms.

Innovation, he added, also involves transforming governance and business models through technology to generate greater value, with institutions playing a decisive role in fostering innovation and development.

Regarding funding, Hung stated the key is ensuring that every unit of state spending on science and technology mobilises three to four units of private-sector investment. Under such a mechanism, the government’s allocation of around 2% of the state budget for science and technology could translate into 2% of GDP in total social spending on the sector.

Another important mechanism to improve the effectiveness of science and technology spending is shifting from funding research inputs to commissioning and purchasing research outcomes, or rewarding effective results, Hung said.

To sustain research capacity, including basic and social sciences, Vietnam will continue to fund knowledge inputs while accepting output risks, with such funding accounting for around 15-20% of the total science and technology budget in the near term.

“Changing mindsets, perceptions, approaches and ways of doing things is always the decisive factor in the success of major policies and ambitious goals,” Hung argued.

He expressed confidence that science and technology, innovation and digital transformation would form the three drivers enabling Vietnam to break out of the middle-income trap and become a high-income developed nation.

Key drivers behind Vietnam’s double-digit growth target in 2026

VOV.VN - Alongside efforts to accelerate institutional reform, develop infrastructure and improve the quality of human resources, these are identified as decisive pillars for growth in a new development period amid a changing global environment.