Vietnam is a nation that has experienced rapid economic growth over the past few decades, and its innovation culture has been a key factor in this success.
Vietnam’s commitment to promoting innovation and entrepreneurship is evident in its policies, such as tax breaks and start-up subsidies. This commitment has enabled Vietnamese scientists to make important contributions to fields such as medicine and aerospace technology; Dr Doan Thi Huong was the first woman to receive a medical degree in Vietnam, while Dr Tuan Trinh was the first scientist in Vietnam to develop an artificial heart valve.
Mark Zuckerberg once said: “The only strategy that is guaranteed to fail is not taking risks” – a sentiment perfectly encapsulates Vietnam’s innovative spirit. Through its rich history of technological advancement, strong economic growth, competitive environment and government support for innovation, Vietnam has become increasingly competitive on the global stage – something that will only continue into the future.
This article will explore the unique characteristics of Vietnam’s innovation culture, from its historical roots to its current state. It will also examine how these characteristics have enabled Vietnam to become an increasingly competitive player in the global economy.
Historical Roots of Vietnamese Innovation Culture
Vietnam’s history is one of resilience and adaptation. Despite centuries of foreign occupation, Vietnam has maintained its distinct cultural identity. This identity is characterized by a strong sense of self-reliance and resourcefulness, which has enabled the nation to develop innovative solutions to problems faced by its citizens. The traditional Vietnamese culture greatly emphasises education and knowledge acquisition, strongly focusing on practical skills such as engineering and mathematics. This emphasis on practical skills has allowed Vietnam to develop a highly skilled workforce that can quickly adapt to changing circumstances and create new solutions for existing problems.
In terms of educational attainment, Vietnam ranks first in Southeast Asia in terms of literacy rate, with 96% of the population being literate. Additionally, according to the World Economic Forum’s Human Capital Index, Vietnam’s education system is ranked third in Asia for quality. Furthermore, over 70% of students in higher education are studying science or technology related subjects.
This focus on education and practical skills has enabled Vietnam to become an increasingly important player in the global economy, with exports increasing by 8% annually since 2000 and total exports reaching $240 billion in 2018. This economic growth has been accompanied by reduced poverty levels from 58% in 1993 to just 6% today.
As former Prime Minister Phan Van Khai said: “Education is the foundation for development; it is an essential factor for social progress” – this statement encapsulates the importance that Vietnamese culture places on education to achieve success both individually and collectively as a nation.
Vietnam’s resilience and resourcefulness have enabled it to overcome centuries of foreign occupation while maintaining its distinct cultural identity. Through its emphasis on education and practical skills, Vietnam has developed a highly skilled workforce that can quickly adapt to changing circumstances and create new solutions for existing problems – allowing it to become an increasingly important player in the global economy, with exports increasing annually since 2000 and poverty levels reducing significantly over the past two decades.
Current State of Vietnamese Innovation Culture
Innovation has been a driving force in Vietnam’s economy for the past few years, with both the public and private sectors playing an essential role. The government has invested heavily in R&D initiatives, which have helped spur technological advancement in artificial intelligence (AI), robotics, biotechnology, and nanotechnology. Private companies have also played an essential role in driving innovation, with many investing heavily in R&D projects that are aimed at creating new products or services that can be used by consumers or businesses alike.
Vietnam is now home to over 1,000 startups, and venture capital investments in these startups have increased by more than 400% since 2018. This influx of capital has helped fuel the growth of many successful startups now making significant contributions to the country’s economy. In fact, according to a report by the World Bank Group, Vietnam’s total startup funding reached $1 billion USD in 2020 – a staggering increase from just $200 million USD in 2017.
The impact of this increased level of innovation on Vietnam’s economy as a whole has been immense. According to Nguyen Thanh Phong, Ho Chi Minh City People’s Committee Chairman, “Startups are important drivers for economic development and job creation. They help create new products and services to transform traditional industries and bring about positive social changes.”
The government continues to invest heavily in research and development initiatives, while private companies are also doing their part by investing in innovative projects that can benefit consumers and businesses alike. With this continued investment into innovation, it is clear that Vietnam will continue to see economic growth for years.
Factors Contributing To Successful Innovation In Vietnam
Several factors have contributed to successful innovation within Vietnam’s economy:
- A highly educated population: With more than 95% literacy rate among adults aged 15+, Vietnam boasts one of the most educated populations in the Asia Pacific region. This high level of education enables people from all backgrounds to contribute towards innovative solutions for existing problems within their communities or industries they work in.
- Government support: The government has invested heavily in research & development initiatives over recent years, enabling companies across various sectors to innovate successfully without worrying about a lack of resources or funding constraints.
- A vibrant entrepreneurial ecosystem: There are numerous incubators, accelerators and venture capital firms operating within Vietnam which provide entrepreneurs with access to mentorship programs as well as financial support when launching their businesses or developing innovative products/services for existing markets
- An open attitude towards collaboration: Companies across various sectors are increasingly engaging with each other through collaborations which enable them to share resources while simultaneously working towards achieving common goals related to innovation
- A growing number of tech hubs: Over recent years, there has been an increase in tech hubs being established throughout different cities within Vietnam, which provide entrepreneurs with access to resources such as co-working spaces as well as mentorship programs.