VIETNAM TARGETS SCIENCE, TECHNOLOGY AND AI AS CORE DRIVERS OF NEXT GROWTH MODEL

Vietnam is moving to place science, technology and artificial intelligence (AI) at the center of its next development model, as traditional growth engines weaken and the global economy shifts toward knowledge- and data-driven expansion.

Vietnam is preparing a strategic shift in its growth model, with policymakers and business leaders calling for science, technology and innovation to become the primary engines of future development.

At the Vietnam Economic Forum 2026, organised by the Vietnam Institute of Economics and World Economy under the Vietnam Academy of Social Sciences, Nguyen Duc Hien, Deputy Head of the Party’s Policy and Strategy Commission, said the Politburo has tasked the commission with drafting a new development framework based on science, technology, innovation and digital transformation.

The move comes as Vietnam reassesses its economic trajectory after nearly four decades of reforms. Traditional drivers such as capital investment and low-cost labor are losing effectiveness, while global growth is increasingly fueled by innovation, digital technologies and data.

From the business perspective, Nguyen Trung Chinh, Chairman of CMC Corporation, said Vietnam must urgently establish new growth engines, with the digital economy and AI at the core. He described data as a new “factor of production,” comparable to land, labor and capital.

“Data is the digital workforce and the foundation of innovation,” Chinh said, adding that AI should be treated not just as a technology, but as strategic national infrastructure with economy-wide impact.

Estimates presented at the forum suggest that, if effectively developed, the digital and AI economy could contribute up to 30% of Vietnam’s gross domestic product. By 2030, the sector could reach a value of around $80 billion, driven by productivity gains, the emergence of new industries and the “intelligentization” of economic activities.

AI is also expected to generate exponential growth, with rates ranging from 20% to 30%, and up to 50% in some sectors, providing a foundation for sustained double-digit expansion. International experience shows that economies such as the United States, China and Singapore have achieved significant gains from data- and AI-driven strategies. In Singapore, the data economy accounts for 18.6% of GDP.

However, experts cautioned that institutional reform will be critical to turning these ambitions into reality. Huynh Quyet Thang, President of Hanoi University of Science and Technology, said science, technology and digital transformation must serve as a “cross-cutting axis” of the development model, rather than a supporting component.

He called for more flexible regulatory frameworks, expanded policy experimentation and a shift from a control-oriented approach to a more facilitative and risk-tolerant mindset.

Human capital is another key factor. With a relatively young population, Vietnam has an opportunity to strengthen its workforce, particularly in digital skills and technological capabilities, while accelerating the development of digital infrastructure.

Despite broad agreement on policy direction, implementation remains a major bottleneck. Vu Sy Cuong, Associate Professor at the Academy of Finance, said Vietnam’s spending on science and technology has remained modest, at around 1–2% of the state budget, while total research and development (R&D) expenditure stands at approximately 0.4% of GDP.

Private sector participation is limited, contributing only about 0.2% of GDP, with most spending coming from state-linked enterprises. Complex administrative procedures and risk-averse governance have discouraged businesses from fully utilizing existing incentives.

“We do not lack policies; we lack mechanisms to make them work,” Cuong said.

Dang Xuan Thanh, Vice President of the Vietnam Academy of Social Sciences, said mobilizing resources for science and technology will require a coordinated approach involving the state, businesses and the market. While the government should play a leading role, the private sector must be central in allocating and deploying capital.

Simplifying procedures, reducing compliance costs and accepting managed risks will be essential to unlocking investment and accelerating innovation, he added.

As Vietnam seeks to reposition its growth model, the key challenge will be not only setting priorities, but ensuring effective implementation.

Source: VCCI