The Vietnamese Ministry of Science and Technology is currently orchestrating a comprehensive strategic pivot, moving beyond traditional theoretical research to address critical industrial, economic, and energy-related challenges. This national shift is designed to transition the country’s growth model from one reliant on labor-intensive manufacturing and capital accumulation toward a sophisticated, innovation-driven economy capable of achieving sustained double-digit growth.
This strategic direction was underscored by General Secretary and President To Lam during a high-level conference held on November 12, 2026, which reviewed the progress of Resolution 57—a pivotal framework enacted on July 1, 2025. The core objective is to evolve the nation’s economic structure, shifting from a focus on volume to a focus on value creation, thereby reducing dependency on foreign technology and volatile global supply chains.
The Macro-Economic Imperative: Transitioning to TFP-Driven Growth
For Vietnam to sustain a high-speed growth trajectory, the traditional reliance on expanding factory floor space and supplementing the workforce is no longer sufficient. Economic analysts and government officials recognize that long-term prosperity necessitates a significant improvement in Total Factor Productivity (TFP). TFP reflects the efficiency with which capital and labor are utilized, as well as the impact of technological advancement.
Resolution 57 establishes an ambitious goal: by 2030, the contribution of TFP to overall economic growth must exceed 55%, while the digital economy is expected to account for at least 30% of the national GDP. To realize these targets, the Ministry of Science and Technology is currently accelerating the development of ten core technology groups, encompassing 30 strategic products. These include advancements in Artificial Intelligence (AI), robotics, semiconductors, energy storage systems, and high-speed railway technologies.
According to a recent report submitted to the National Assembly, the Ministry has already approved 18 strategic technology missions with a total investment budget of approximately 6.28 trillion VND. Notably, 75.8% of this funding has been mobilized from non-budgetary sources, signaling a robust public-private partnership model designed to alleviate bottlenecks in production costs and technological sovereignty.
Revolutionizing Manufacturing: From Assembly to Smart Factories
Vietnam’s manufacturing sector, historically dominated by low-value assembly and processing, is at a crossroads. As labor costs rise and global standards for production quality become more stringent, the country must modernize. The current challenge is to increase output and quality while simultaneously reducing operational costs within existing facility footprints.
The Ministry’s approach involves the aggressive deployment of industrial robots and automated production lines, governed by AI-driven quality control systems. In October 2026, during the International Science and Technology Week in Quang Ninh, Minister of Science and Technology Huynh Thanh Dat emphasized the urgency of this transition, stating, "We must move beyond mere consultation and training. Our mission is to establish scalable, functional smart factory models that can be replicated across the nation."
To support this, a strategic project in partnership with South Korea has been initiated, utilizing 8.3 million USD in non-refundable ODA capital. This initiative aims to assist 30 domestic enterprises in upgrading their production capabilities, training 150 high-level technicians, and establishing a technology demonstration center by 2029. This is not merely an investment in hardware; it is a systematic attempt to bridge the gap between academic research and industrial application, particularly for small and medium-sized enterprises (SMEs) that often lack the capital and technical expertise to modernize independently.
The Digital Transformation of the Economy
The digital economy is the second pillar of Vietnam’s growth strategy. As of 2025, the value-added component of the digital economy contributed 14.02% to the national GDP. The target to reach 30% by 2030 requires the integration of digital technologies into the core of traditional manufacturing and service sectors.
The Ministry is currently prioritizing the development of high-speed connectivity infrastructure, advanced computational power, and a sovereign Vietnamese-language AI model. As of the end of the third quarter of 2026, the 5G infrastructure coverage has reached 93.4% of the population, providing the foundational bandwidth necessary for real-time industrial automation, logistics management, and smart retail solutions.
A critical hurdle remains the issue of fragmented data. Government agencies and private enterprises have historically maintained siloed systems, leading to inefficiencies, redundant data entry, and slow administrative processing. By streamlining data integration, the government aims to reduce operational costs for businesses, thereby enhancing their competitive edge in the global marketplace. The objective is to support at least 500,000 SMEs in their digital transformation journey by 2030, measuring success not just by software adoption, but by tangible increases in productivity and revenue growth.
Solving the Energy Equation for Industrial Scalability
Industrial expansion is inherently linked to energy availability. According to the revised Power Development Plan VIII, electricity demand in Vietnam is projected to increase by 10.5% to 12.9% annually between 2026 and 2030. Ensuring a stable, cost-effective power supply is essential for the growth of the manufacturing and data center sectors.
The Ministry of Science and Technology is spearheading research into Battery Energy Storage Systems (BESS), advanced materials, and high-efficiency electrical equipment. BESS technology is particularly vital, as it allows for the storage of excess energy during off-peak hours and the release of power during high demand, thereby stabilizing the grid and increasing the efficiency of renewable energy utilization.
By fostering domestic manufacturing of these energy-related components, Vietnam aims to reduce its reliance on imports and potentially create a new industrial sector focused on energy infrastructure. This aligns with the broader goal of balancing immediate industrial needs with long-term technological independence.
Semiconductors and High-Value Electronics
In the electronics sector, Vietnam has successfully attracted major global corporations. However, domestic participation has largely been confined to low-value-added segments. To move up the global value chain, the nation must cultivate capabilities in design, testing, and advanced packaging.
As of 2026, Vietnam boasts approximately 7,000 engineers specializing in microchip design and over 50 domestic companies in the semiconductor space. However, the lack of local manufacturing and testing facilities has historically forced designers to outsource production abroad, significantly increasing costs and lead times.
To address this, the Ministry launched the National Center for Semiconductor Testing in June 2026. This center facilitates the connection between enterprises, research institutes, and universities with established testing and packaging facilities. During the 2026-2027 period, the center will provide full subsidies for testing costs, allowing research teams to validate designs and finalize products locally. Furthermore, a dedicated semiconductor fabrication plant is scheduled for construction and trial production by 2027, serving as a cornerstone for the domestic semiconductor ecosystem.
Infrastructure and Agricultural Innovation
The national focus on high-speed rail and urban transit systems represents another area where technological autonomy is critical. By prioritizing the domestic production of rail components, signaling systems, and control software, Vietnam aims to ensure the long-term safety and operational efficiency of its transport infrastructure. The Ministry is currently finalizing frequency planning for railway information systems, expected to be issued in November 2026, which will serve as the regulatory framework for the deployment of these complex networks.
Simultaneously, the agricultural sector is undergoing a transformation driven by biotechnology and AI. The goal is to maximize value per hectare rather than simply increasing land use. Technologies such as genetic research, specialized veterinary vaccines, and AI-monitored irrigation and fertilization are being deployed to meet the increasingly stringent quality requirements of international markets. The Ministry’s focus here is on standardizing traceability and quality control, which are essential for the global export of Vietnamese agricultural products.
Conclusion: A Coordinated National Strategy
Prime Minister Le Minh Hung has praised the Ministry’s proactive stance in implementing Resolution 57, emphasizing the necessity of accelerating these strategic missions. The government’s directive is clear: research must be translated into commercial success, and that success must be measured by its contribution to national productivity, GDP growth, and economic resilience.
The overarching challenge remains the translation of scientific achievement into industrial reality. By addressing the "missing link" between laboratory innovation and factory-floor implementation, the Ministry of Science and Technology is positioning itself as the primary engine for Vietnam’s future economic growth. If successful, these initiatives will transform Vietnam from an assembly-based economy into a hub of innovation, ensuring that the country’s next stage of development is built on a foundation of technological self-reliance and high-value production.
