Prime Minister Nguyen Xuan Phuc on January 9 attended the groundbreaking ceremony of the Viet Nam National Innovation Center (NIC) and the opening ceremony of the Viet Nam International Innovation Expo 2021-VIIE 2021. 

Prime Minister Nguyen Xuan Phuc (7th from left) attends the
groundbreaking ceremony of the Viet Nam National Innovation Center (NIC)
and the opening ceremony of the Viet Nam International Innovation Expo
2021-VIIE 2021, Ha Noi, January 9, 2021 - Photo: VGP/Quang Hieu 

Speaking at the events, the PM said that Viet Nam’s spending for science and technology in both State and private sectors only accounts for 0.44% of the nation’s GDP, much lower than the average proportion of the world (2.23%).  

The nation has lagged behind other Asian peers such as China, India, Thailand, Malaysia and Singapore in terms of technological readiness, innovation and labor capacity, he added. 

As part of the strategy to turn the country into a developed and high income nation by 2045, PM Phuc said Viet Nam must rely on knowledge, science, and technology, especially innovation, all of which can be considered important factors for growth.

Most notably, it is the use of new technology coupled with suitable human resources that will be the decisive factor for long-term growth, the key to achieving development breakthroughs, and helping the country to get out of the middle-income trap, said PM Phuc.

The Government chief emphasized that innovation has become the key to the success and plays an important role in socio-economic development strategies devised by most nations and territories.

He urged ministries, policy-making agencies and the NIC to propose policies and institutions to encourage and promote innovation in business sector, particularly start-ups and innovation. 

Phuc stressed the need to promote the role of universities and institutes in strengthening human capital foundation for innovation and attaching research activities to the demands of enterprises and economy. 

The PM also called for beefing up the connectivity of domestic and foreign innovation networks on the basis of upholding the crucial role of the NIC. 

The construction of the NIC and organization of the Expo have manifested the Government’s commitments to joining with enterprises and individuals in accelerating innovation, he affirmed. 

Earlier in October 2019, PM Nguyen Xuan Phuc signed Decision No. 1269/QD-TTg on the establishment of the Viet Nam National Innovation Center (NIC).

The move aims to develop start-up and innovation eco-system, contributing to growth model transformation based on science and technology development. 

The NIC is part of the Government’s efforts to join the 4th Industrial Revolution and the Government will expand this model if the NIC is successful.

The NIC is located at Ha Noi based-Hoa Lac Hi-Tech Park on the area of 35 hectares. 

According to the project’s draft plan drawn up by the MPI’s Central Institute for Economic Management (CIEM), the NIC will be developed with total investment of VND 1.9 trillion (US$82.6 million), including VND1.7 trillion (US$73.9 million) for the physical construction and VND200 billion (US$8.7 million) for operating capital.

The NIC is expected to lure 40 big technology companies, 150 startups and small- and medium-sized enterprises, and 15 venture investment funds, thereby creating more than 5,000 jobs.

The NIC will focus on a number of priority sectors to begin with, such as developing hardware and software for smart factories and smart cities, digital content, and network security.

Meanwhile, the Viet Nam International Innovation Expo 2021-VIIE 2021 has attracted the participation of 156 stalls from 113 enterprises nationwide, 22 Foreign Direct Investment (FDI) firms and 21 institutes and schools.