Vietnamese businesses innovate for comprehensive integration

Innovation, creativity, and business support mechanisms in realizing innovation efforts are challenging businesses, ministries, sectors, and localities amid the rapid development of science and technology.

Innovation and creativity are an area in which Vietnamese businesses are weak during the Fourth Industrial Revolution in which labor productivity is of utmost importance. Vietnam's labor productivity is approximately US$4,000 per person per year, a very low rate compared to others in the region.

FPT Software President Hoang Nam Tien said, “Currently businesses which are faster will win, defeating even bigger enterprises. How to embrace digital transformation remains an important question for all enterprises. The answer is to be quick to seize opportunities. Businesses should begin with small, simple things but be as quick as possible. In that way, it can quickly produce the desired effect.”

Dr. Nguyen Dinh Cung, Director of the Central Institute for Economic Management, says that innovation and creativity include already available things and things Vietnam hasn’t got yet. The most important thing is that its institutions must be favorable for innovation to flourish.

“The current biggest hurdle is our mindset and institutions which remain based on set regulations and process. We should create motives that can force businesses to innovate,” Cung said.

According to Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry, with the current development of e-commerce, micro enterprises can reach world markets with their products. Small and micro businesses can apply the digital economy to production and sales - the most important driver for Vietnam’s economic growth.

Loc said, “We are facing many transformations but the digital transformation is the most important right now and fundamental to the Vietnamese economy. The government will work to create a favorable environment. But the center of innovation, creativity, and digital transformation is business, not the government. Our goal is to create breakthroughs and promote sustainable development.”

Addressing the CEO Forum 2019 themed “Business Revitalisation and Innovation: Breakthroughs from Mind to Action”, Deputy Prime Minister Vuong Dinh Hue said the Party and State advocate the transformation of growth models based on the application of science and technology and innovation in order to improve the productivity, quality, and competitiveness of the economy.

He said the government has steadily improved the business environment and strengthened the macroeconomic foundation, in addition to promoting the start-up ecosystem and innovation and creating the most favorable conditions to support enterprises.

He said that the Government has taken drastic steps to develop an e-Government, build a digital economy, embrace digital transformation, and apply 5G technology and shared economic models.

Deputy Prime Minister Hue said “Enterprises should follow up breakthroughs and innovative thinking by taking immediate action to gain success in each sector, each field, and each company. Every business must be a center of innovation to be successful. In this cause, you cannot go alone but must unite with each other. The Government, ministries, and localities are committed to supporting the future.”