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REVIEW of FINANCE - Issue 4, 2021
4. Difficulties and challenges For the State authority agencies
Currently, science and technology and innovation - Continuing to renew perception on establishing
in Viet Nam still face many difficulties and challenges, institutions and policies towards creating a favorable
specifically: environment and mobilizing the participation of the non-
- Viet Nam has expanded and diversified the structure state sector for science and technology and innovation.
of its export industry, but the process of restructuring to Strongly promoting innovation activities as a bridge for
export "high-tech" goods and services, which are more science and technology to directly serve socio-economic
complex and have a higher knowledge content, still development, thereby creating breakthroughs to improve
remains quite slowly. Stuck in low-value-added activities productivity, quality, efficiency and competitiveness.
limits the ability to learn technology and enhance competition of the economy, contributing to the renewal
creativity. of the growth model.
- Viet Nam is now standing at an important crossroads. - Promoting mobilization of investment resources for
GDP growth has slowed in a less active international science and technology and innovation. Strengthening
context. The former growth momentum is waning, social resources to invest in science and technology and
increasing the risk of falling into the “middle income innovation, especially from enterprises. Especially, in
trap”. Viet Nam will have to rely more on increasing labor the context of the COVID-19 pandemic, it is necessary to
productivity through innovation. To do so, Viet Nam needs further increase investment in research and development
to significantly improve its domestic innovation capacity. as well as to fund innovation. Prioritizing innovation
- Programs in science & technology and innovation amid the COVID-19 pandemic is key to boosting
have not been linked with related each other mean while economic growth.
allocation of funding and human resources for specific - Perfecting institutions, policies and laws on science
purposes and fields have not been linked in a way and technology and innovation. At the same time,
systematic. removing obstacles in the legal and policy system so
- Viet Nam's polices for science and technology that science, technology, and innovation can serve socio-
and innovation focus on research, development and economic development.
knowledge creation, but have not focused on application - Improving the operational efficiency of the national
in use. Currently, there is still a lack of a viable solution innovation system, the innovation and start-up ecosystem;
to encourage enterprises and private investment in developing new business models, digital economy and
researching, innovating and applying science and digital society; improving the enterprise's capacity to
technology. innovate, absorb and master technology; focusing on
- Vietnamese private enterprises rarely use and developing high technologies, key technologies of the
improve technology advance and innovation. According Fourth Revolution with high applicability.
to the Ministry of Science and Technology (2020), 97% - Implementing the restructuring of scientific and
of Vietnamese enterprises are small and medium-sized, technological programs and tasks associated with
and have not innovated strongly in thinking to catch social needs, the value chain of products, creating
up with technology trends. Policies also lack linkages added value; promoting the development of the
between enterprises and the research sector, leading to science and technology market in association with
limited commercialization of research products, or a the building of a national database on science and
lack of applied research, which limits the contribution of technology.
technological progress. in productivity growth. - Promoting international integration and
- In spite of being quite abundant, Viet Nam's labor cooperation in science and technology and innovation to
force lacks in-depth expertise, high technology level develop Viet Nam's strengths and mobilize international
and necessary skills. Meanwhile, the human resource is resources, thereby creating breakthroughs to improve
one of the most important conditions in the process of productivity and quality, efficiency and competitiveness
innovation. of the economy, contributing to the renewal of the
- The capacity of research organizations and growth model.
researchers is still limited. At the institutional level, - Human resources are a key issue for innovation.
research institutes and research organizations face a National innovation capacity depends largely on the
shortage of financial and human resources. quality of education and training for scientists, industry
and other professionals, and it also depends on the
5. Recommendations
coverage of the education system. However, more needs
In the Fourth Industrial Revolution Viet Nam has a to be done to increase the quantity and quality of human
"golden opportunity" to break through and accelerate resources, especially in vocational training at secondary
through the promotion of innovative activities. To take and tertiary levels. Funding for college vocational training
advantage of this opportunity, the author makes some has not kept pace with the growth in engineering and
recommendations as follows: research students.

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