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PROMOTING INNOVATION IN VIET NAM'S ECONOMY

AND RECOMMENDATIONS

PHAM TRUNG HAI
Abstract: Innovation currently becomes a inevitable trend in the world. Innovation is defined as the introduction and adoption
of new products, technologies, business processes, business models and ideas in the market, as well as invention of new ideas. In
Viet Nam, the Socio-Economic Development Strategy for the 2021-2030 period has emphasized the contents of science, technology
and innovation as being presented synchronously and comprehensively, from the theme of the Strategy to the development of
perspectives, goals, and strategic breakthroughs, tasks and solutions, ensuring inheritance and development from successes and
taking into account new domestic and international contexts. The paper mentions the overview on innovation, achievements,
difficulties and challenges and makes recommendations for promoting innovation in Viet Nam's economy in the coming time.

Keywords: Innovation, technology, Socio-Economic Development

Received: October 14 , 2021 from the theme of the Strategy to the development of
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Revised: November 26 , 2021 perspectives, goals, and strategic breakthroughs, tasks
Accepted: December 2 , 2021
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and solutions, ensuring inheritance and development
1. Introduction from successes and taking into account new domestic and
international contexts.
The word "innovation" once had a quite different On September 27th, 2019, the Vietnamese Politburo
meaning. The first full-length discussion about innovation issued Resolution No. 52-NQ/TW on a number of
is the account by Xenophon - the Greek philosopher guidelines and policies to actively participate in the
and historian (430–355 BCE). He viewed the concept as Fourth Industrial Revolution, clearly defining the role of
multifaceted and connected it to political action... In the innovation centers, as well as affirming that enterprises
1900s, the concept of innovation did not become popular are the focus of the innovation ecosystem. To concretize
until after the World War II. This is the point in time this resolution, in 2020, the Government has issued
when people started to talk about technological product Resolution No. 50/NQ-CP assigning specific tasks to
innovation and tie it to the idea of economic growth ministries and sectors and encourages the establishment
and competitive advantage. Joseph Schumpeter (1883- of innovation centers in locals and businesses… to create
1950) is often credited for being the one who made the breakthroughs in productivity, quality, efficiency and
term popular and he contributed greatly to the study of competitiveness of the economy.
innovation economics.
In business and in economics, innovation can be a 2. The overview on innovation
catalyst for growth. Joseph Schumpeter argued that 2.1. Definitions
industries must incessantly revolutionize the economic
structure from within, that is innovate with better or Innovation is the practical implementation of ideas
more effective processes and products, as well as market that result in the introduction of new goods or services
distribution, such as the connection from the craft shop to or improvement in offering goods or services. ISO TC 279
factory. He famously asserted that "creative destruction in the standard ISO 56000:2020 defines innovation as "a
is the essential fact about capitalism". Entrepreneurs new or changed entity realizing or redistributing value".
continuously look for better ways to satisfy their consumer Others have different definitions; a common element in
base with improved quality, durability, service and price the definitions is a focus on newness, improvement, and
which come to fruition in innovation with advanced spread of ideas or technologies.
technologies and organizational strategies. Innovation often takes place through the
In Viet Nam, the Socio-Economic Development Strategy development of more-effective products, processes,
for the period 2011-2020 has emphasized the importance services, technologies, art works or business models
of science, technology, and innovation, especially driven that innovators make available to markets, governments
by the industrialization and modernization process of the and society. Innovation is related to, but not the same
country. In the Socio-Economic Development Strategy for as, invention: innovation is more apt to involve the
the 2021-2030 period, the contents of science, technology practical implementation of an invention (i.e. new/
and innovation are presented synchronously, throughout improved ability) to make a meaningful impact in a

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