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January 28, 2025

Resolution 57: Breakthroughs in Science and Technology as the “Golden Key” to Vietnam’s Prosperity

vietnam tech 2025
— https://www.vietnam.vn/tong-bi-thu-to-lam-lam-truong-ban-chi-dao-trung-uong-ve-phat-trien-khoa-hoc-cong-nghe-doi-moi-sang-tao-va-chuyen-doi-so
January 28, 2025

On December 22, 2024, Vietnam's Politburo issued Resolution 57/NQ-TW on "Breakthroughs in Science and Technology Development, Innovation, and National Digital Transformation," aiming for the digital economy to contribute at least 30% of Vietnam’s GDP by 2030 and 50% by 2045. On January 13, 2025, the Central Steering Committee for Science, Technology, Innovation, and Digital Transformation was established, chaired by General Secretary Tô Lâm, to lead policy implementation and drive breakthroughs. 

General Secretary Tô Lâm regarded the development of science, technology, innovation, and digital transformation as the "golden key" to Vietnam’s prosperous development and the best opportunity for success in the new era. He called for allocating at least 3% of the national budget to this mission and increasing spending on science and technology to 2% of GDP over the next five years, up from 0.82% in 2023. By 2030, Vietnam aims to rank among the leading upper-middle-income countries, be a top-three Southeast Asian nation in AI research, and serve as a hub for competitive digital industries. Key objectives include developing world-class digital infrastructure and mastering emerging technologies such as AI, IoT, Big Data, Blockchain, and 5G/6G communications. 

In his remarks at the 6th National Forum on the Development of Vietnamese Digital Technology Enterprises on January 15, General Secretary Tô Lâm praised Vietnam’s digital technology sector’s growth with the expansion of digital technology startup ecosystem with nearly 74,000 enterprises, the global reach of 1,900 digital enterprises generating US$11.5 billion in revenue by 2023, and a growing workforce of over 1.67 million. According to the Deputy Head of the Central Economic Commission, Vietnam's digital technology industry is estimated to generate US$152 billion in revenue in 2024, contributing 18.3% to GDP, with hardware and electronics exports estimated at US$132 billion.  

However, he also pointed out several limitations hindering the sustainable development of digital technology in Vietnam. Key issues include major weaknesses is the capacity for R&D, which still heavily relies on foreign resources, limiting Vietnam’s technological autonomy, and a shortage of high-tech talents, which impacts innovation. Vietnamese enterprises still have low technological levels and modest participation in the global supply chain.  

Despite impressive growth in various sectors, he questioned whether Vietnam is stuck at the lowest segment of the value chain, mainly performing subcontract work for foreign countries. He pointed to the electronics sector as an example, where FDI enterprises export 100% of the value of phones and components but import 89% of the value of those components. For instance, although Samsung has invested in Vietnam since 2008, most first-tier suppliers in Thai Nguyen and Bac Ninh are foreign-owned enterprises (55 out of 60 in Thai Nguyen and 164 out of 176 in Bac Ninh). 

He addressed the persistent challenges of regional disparities in digital technology development and emphasized that inadequate investment in digital infrastructure hampers national connectivity and the sustainable growth of the sector. He stressed the need for a clearer understanding of where Vietnam stand in the global value chain, urging efforts to improve international competitiveness. He called for more selective FDI to prevent Vietnam from becoming a low-tech assembly hub.  

Prime Minister Phạm Minh Chính, in his speech at the National conference on January 13, reiterated that implementing Resolution 57 is a key political priority for the Government. The Government's Action Program in Resolution 03/NQ-CP includes developing special experimental mechanisms for science, technology, innovation, and digital transformation, with tailored approaches for investment, public procurement, and pilot sandbox testing for new technologies. Notably, the Government will introduce special regulations on nationality, property ownership, visas, work permits, and income to attract and retain top science and technology experts. Additionally, the Government will prioritize the draft Law on Science, Technology, and Innovation, as well as the draft Law on Digital Technology Industry, which will be presented to the National Assembly later this year. 

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