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Unveiling Vietnam’s Digital Progress: Tech-Driven Insights

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The Ministry of Science and Technology (MST) unveiled the Provincial Innovation Index (PII), a key milestone in Vietnam’s digital transformation. This index provides valuable insights into the socio-economic development models of provincial-level localities, guiding policy-making and investment decisions.

Image credits: Vietnam Plus

Leveraging data from the Global Innovation Index (GII) and collaboration with the World Intellectual Property Organization (WIPO), the PII was piloted in 20 localities in 2022 before its nationwide rollout in 2023, in line with Vietnam’s digital transformation goals.

The index’s results, which include rankings of top-performing localities like Hanoi and Ho Chi Minh City, reflect their favourable conditions for technological advancement and innovation, highlighting the correlation between socio-economic development and digital readiness.

Minister Huynh Thanh Dat stressed the PII’s role in guiding informed decision-making, enabling authorities and investors to identify strengths, weaknesses, and areas for improvement in innovation ecosystems, thus facilitating targeted policy formulation for science, technology, and innovation-led development.

Since 2017, Vietnam has relied on the Global Innovation Index (GII) to shape innovation policies, but to better understand local innovation ecosystems, the MST partnered with WIPO to create the PII. This index assesses factors like research spending and collaboration between academia and industry at the provincial level, providing insights into regional innovation capacity and guiding resource allocation for inclusive development.

The PII 2023 results reveal a clear correlation between socio-economic development and innovation performance. Top-ranking localities like Hanoi and Ho Chi Minh City benefit from favourable geographical conditions, robust infrastructure, and a vibrant ecosystem of research institutions, universities, and technology companies.

These regions have emerged as hubs for innovation, attracting talent and investment from both domestic and international sources. In contrast, provinces with limited resources and infrastructure face challenges in promoting innovation and technology adoption, highlighting the need for targeted interventions to narrow the digital divide and promote inclusive growth.

In parallel with the efforts to assess and enhance innovation capacity at the provincial level, Ho Chi Minh City has embarked on a comprehensive digital transformation journey to modernise governance and improve public service delivery. At a recent conference, the Chairman of the municipal People’s Committee Phan Van Mai commended various agencies for their proactive approach to administrative reforms and digitalisation initiatives.

By deploying tools like the Public Administration Reform Index (PAR INDEX) and the Department and District Competitiveness Index (DDCI), Ho Chi Minh City has made significant strides in enhancing transparency, efficiency, and accountability in governance.

The city’s commitment to digital transformation is evident in its efforts to streamline administrative procedures, digitise records, and leverage emerging technologies to improve service delivery. Agencies like the HCM City Export Processing and Industrial Zones Authority (HEPZA) and the Department of Tourism have emerged as leaders in embracing digital innovation, setting benchmarks for excellence in administrative efficiency and customer service. The successful implementation of the Digital Transformation Index (DTI) reflects the city’s progress in adopting digital technologies to drive economic growth and enhance competitiveness.

Looking ahead, Ho Chi Minh City remains committed to accelerating its digital transformation agenda, with a focus on promoting innovation, fostering collaboration, and enhancing the resilience of its digital infrastructure. By harnessing the power of technology to address key challenges and seize opportunities, the city aims to create a vibrant ecosystem for innovation and entrepreneurship, driving sustainable development and improving the quality of life for its residents.

As Vietnam continues its journey towards becoming a digital economy, initiatives like the Provincial Innovation Index and Ho Chi Minh City’s digital transformation efforts will play a crucial role in shaping the country’s future success in the digital era.


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