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Vietnam’s commitment to digital transformation and innovation has gained international recognition, as the nation climbed two places to rank 44th among 132 countries and economies in the 2024 Global Innovation Index (GII). Released by the World Intellectual Property Organisation (WIPO) in late September, the GII evaluates global innovation performance and highlights the strengths and weaknesses of economies, offering a roadmap for further advancement.
Vietnam’s rise in the GII ranking reflects its continued efforts to position itself as a regional leader in digital transformation. This improvement not only showcases the nation’s progress but also serves as a guiding tool for businesses to develop future strategies.
The government has placed innovation at the centre of its development strategy, with Prime Minister Pham Minh Chinh stressing that innovation must be people-centric, inclusive, and globally oriented. This approach, combined with the promotion of multilateral cooperation, has led to Vietnam’s sustained improvement in innovation over the past 14 years.
One of Vietnam’s standout achievements is its global leadership in several high-tech sectors. The 2024 GII ranks the country 1st in high-tech exports, high-tech imports, and creative goods exports. Additionally, Vietnam boasts top-10 rankings in three key areas: labour productivity (3rd), number of smartphone applications (7th), and research and development (R&D) spending by businesses (9th). These indicators reflect a thriving innovation environment supported by strong entrepreneurial activity, especially in the technology sector.
The GII indicators provide valuable insights for Vietnamese startups, helping them better understand market trends and opportunities. The government’s efforts to foster innovation, particularly among tech startups, enable them to develop forward-looking strategies.
While Vietnam’s strengths in high-tech exports and labour productivity are evident, there are still areas that require attention. Minister of Science and Technology Huynh Thanh Dat noted that the country must focus on both innovation inputs and outputs, particularly in areas where performance lags, such as institutions, ICT infrastructure, and human capital.
Education, in particular, was highlighted as a critical area for improvement. The minister stressed the need to enhance educational standards, attract more international students, and foster greater collaboration between universities and the business sector in research and innovation.
Furthermore, Vietnam has made notable progress in venture capital activity. The number of venture capital deals surged by 27 places to rank 50th, and the country climbed 10 places to 44th in terms of venture capital recipients. This indicates a growing appetite for investment in the country’s tech ecosystem and innovation landscape.
Vietnam has also made a remarkable leap in global digital governance, climbing 15 spots in the 2024 United Nations E-Government Development Index (EGDI) to rank 71st out of 193 countries. This improvement from 86th place showcases the country’s progress in enhancing digital government services.
Despite these successes, the GII also points out several areas where Vietnam must improve to maintain its upward trajectory. The country faces challenges in institutional reforms, ICT infrastructure, and research capacity.
Minister Dat emphasised the need for breakthrough policies to further drive science, technology, and innovation. He urged ministries, agencies, and localities to work together to improve poor indicators and enhance Vietnam’s overall GII ranking.
Institutional reforms will be particularly crucial to facilitate socio-economic development driven by innovation. Vietnam must continue to improve the Provincial Innovation Index and create favourable conditions for businesses to adopt cutting-edge technologies. Enhancing the capacity of enterprises, especially in the tech sector, will be essential to solidifying Vietnam’s position as a global innovation leader.
As Vietnam looks ahead, the country’s ambitions for digital transformation are clear. By focusing on strategic investments in education, technology, and institutional reforms, and fostering an innovation-friendly environment, Vietnam is well-positioned to continue its climb in the global innovation landscape.
