Vietnam Forges New Growth Model on Tech, Innovation, and Governance Reform

Documents from the 14th National Party Congress have begun to articulate, in relatively comprehensive terms, the core components of Vietnam’s development model for the new era. The framework addresses the development context, objectives, perspectives, and operational mechanisms, as well as key tasks and strategic breakthroughs.

Professor Nguyen Quang Thuan, Member of the Central Theoretical Council and former President of the Vietnam Academy of Social Sciences

The framework centers on four key priorities. First, Vietnam’s new development model is people-centric, with national self-reliance as its foundation. Science and technology, innovation, and digital transformation are designated as the principal drivers, while sustainable development and improved quality of life are the highest objectives. Notably, economic development is required to proceed in tandem with social progress, equity, and the comprehensive development of individuals.

Simultaneously, the reform of the development model is situated within both international and domestic contexts. The official documents also delineate key solutions for refining this new model, particularly through the ongoing enhancement of institutions to facilitate rapid and sustainable development.

Second, significant advancements in science and technology must be coupled with human development, especially the cultivation of high-quality human resources. This is viewed as a decisive factor in elevating labor productivity, bolstering competitiveness, and securing the long-term autonomy of the economy.

Third, infrastructure development remains a key component of growth model reform. The definition of infrastructure has been expanded beyond traditional socio-economic systems to encompass infrastructure that supports science and technology, innovation, and digital transformation. This will establish a critical foundation for generating new growth drivers for the economy.

Fourth, a greater emphasis is being placed on the role of businesses, particularly the private sector. In the new development landscape, effectively mobilizing the business community, especially private enterprises, is expected to enable Vietnam to accelerate the application of science, technology, innovation, and digital transformation in production and business activities. This, in turn, will improve competitiveness and create new growth momentum.

Associate Professor Vu Trong Lam, Deputy Editor-in-Chief of the Communist Review and Director-General and Editor-in-Chief of the National Political Publishing House

In shaping Vietnam’s national development model for the new era, two fundamental and decisive issues demand special attention to determine the country’s long-term development position and competitiveness.

First, Vietnam must fundamentally alter its “national development logic” as the world transitions to a new mode of development. In the 21st century, particularly under the influence of AI, big data, digital technologies, and the green economy, the foundations of national competitiveness are shifting rapidly toward knowledge, technology, data, and innovation capacity. This poses a fundamental challenge for Vietnam: transitioning from a development model based on exploiting existing advantages to one centered on creating new ones. This represents a qualitative shift in development thinking.

Specifically, Vietnam’s strategic task in the coming period is to move decisively from a mindset of “development based on existing resources” to one of “creating new development capabilities.” In this new model, science, technology, and innovation must become the primary engines of growth; data must be recognized as a strategic resource; high-quality human resources must form the core of national competitiveness; and innovative enterprises must become the center of the national development ecosystem.

Second, Vietnam must pursue breakthrough reforms in its institutions and national governance capacity amid profound changes in the global development landscape. Three institutional priorities merit particular focus: building sufficiently flexible institutions capable of adapting to the rapid pace of change in science, technology, and the digital economy; establishing a data-driven, real-time national governance model to replace fragmented, slow, and procedure-heavy management systems; and creating a coordinated development mechanism between the State, the market, and society, where businesses are the center of innovation and people are the central actors in development.

Reforming the national development model today is not merely about changing the pattern of growth but about reconstructing the country’s entire operational foundation for the digital era. This is both a development imperative and a strategic requirement for Vietnam to achieve its ambition of becoming a high-income developed nation by 2045.

Mr. Nguyen Tuan Anh, Deputy Secretary of the Can Tho City Party Committee

Can Tho has identified science and technology, innovation, and digital transformation as the core drivers for shifting its growth model from extensive to intensive development, aiming to improve growth quality and economic competitiveness. Since the start of the current term, the city has established a relatively comprehensive political and legal foundation to implement this orientation in a coordinated and systematic manner.

In its development model, Can Tho is prioritizing rapid and sustainable economic growth based on science and technology, the construction of synchronized infrastructure, the development of high-quality human resources, institutional reform, and the promotion of innovation and startup ecosystems.

In recent years, the city has worked to implement Politburo Resolution No. 57-NQ/TW and has progressively developed a science-, technology-, and innovation-driven development model through several concrete measures.

First, Can Tho has focused on building and strengthening its innovation ecosystem by expanding cooperation with agencies and institutions to foster stronger links between universities, research institutes, and businesses. This is considered a critical foundation for promoting research, technology transfer, and the commercialization of scientific products.

Second, the city established a Science, Technology, and Innovation Development Fund to support research, startups, and the development of new technologies.

Third, it has gradually developed “grand challenges” linked to practical development needs, while introducing mechanisms for commissioning and assigning scientific research tasks. This model has started to yield positive results by aligning research more closely with local socio-economic needs.

Fourth, the city is prioritizing high-tech and digital agriculture, consistent with the Mekong Delta’s role as Vietnam’s primary agricultural and agro-processing hub.

Fifth, Can Tho is developing a data center-based growth model and digital operating systems for the Mekong Delta region, helping to advance digital transformation in governance, administration, and regional economic development.

Sixth, the city is accelerating the development of an innovation center, with the ambition of becoming a regional hub for innovation.

Seventh, it is gradually establishing concentrated information technology parks and high-tech zones, laying the groundwork to attract technology enterprises, promote innovation, and support the digital economy's growth. According to the city, these models have already shown encouraging early results.

In terms of implementation, Can Tho has experimented with multiple approaches while developing a regional-scale innovation and startup center. The model was initially state-led before the city expanded to an innovation-oriented joint stock company model to mobilize additional social resources. Concurrently, Can Tho has increasingly entrusted businesses to lead certain innovation and technology development initiatives.

Mr. Hoang Minh Cuong, Vice Chairman of the Hai Phong City People’s Committee

Hai Phong considers the reform of its development model to be more than just an adjustment of its economic structure or the addition of digital transformation programs. At its core, it represents a fundamental shift in development thinking, economic organization, urban governance, and the creation of new growth drivers.

The city has adopted a development model built on science and technology, innovation, and digital transformation. This model places people at the center, with knowledge and technology as the foundation, innovation as the driving force, modern governance as a competitive advantage, and strategic development spaces as platforms for new growth ambitions. This is not a simple replacement of an old model but an upgrade of the city’s “operating system” to a higher level.

Hai Phong has identified four strategic pillars for this new model. First is economic restructuring based on high technology. The city is shifting from a mindset of “attracting manufacturing” to “building a high-tech industrial ecosystem.” This includes developing green, eco-friendly port-industrial urban areas connected in both physical and digital realms. Factories will be not only large-scale but also “smart factories” deeply integrated into global value chains, leveraging advantages in technology, productivity, and innovation.

Second is the digital economy and smart logistics. The digital economy is viewed not merely as a technological trend but as a strategic necessity for Hai Phong to maintain and enhance its international competitiveness. In the digital era, logistics competitiveness hinges on the ability to optimize data flows. Consequently, Hai Phong will prioritize the data economy, smart seaports, the blue economy, and large-scale logistics hubs linked to high-speed rail and aviation networks.

Third is data-driven urban governance. The city aims to be governed through real-time data using digital twins and AI, enabling authorities to conduct smart analysis, make early forecasts, and deliver faster, more accurate, and transparent decisions, thereby transforming urban governance capacity.

Fourth is expanding pilot applications of scientific and technological advances, new technologies, and smart solutions. This will allow residents to benefit from higher-quality healthcare, education, and cultural services, while expanding development opportunities, preserving heritage values, and building a globally livable city.

To achieve this vision, Hai Phong is focusing on six decisive groups of solutions: institutional breakthroughs; strategic infrastructure development; placing businesses at the center of the new development model; building a substantive innovation ecosystem; ensuring people remain the focus and ultimate beneficiaries of digital transformation; and pursuing sustainable development while preserving and promoting the city’s unique identity.

Mr. Nguyen Tuan Anh, Deputy Secretary of the Lai Chau Provincial Party Committee

There are four key priorities related to the application of science and technology, innovation, and digital transformation today.

First, regarding institutions, reform is often implemented via a top-down approach. However, in practice, many applications with the greatest potential to deliver tangible benefits to people tend to emerge from real needs at the grassroots level, or from the bottom up. Controlled pilot models have been an effective solution. Yet many localities still face challenges due to the lack of sufficiently clear mechanisms to safeguard proactive innovation, particularly concerning authority, experimentation space, implementation timelines, and regulatory flexibility for localities willing to think boldly, act decisively, and take responsibility.

Second, people are the ultimate beneficiaries of digital transformation, making user experience a critical factor. Technologies supporting governance, such as monitoring, screening, tracing, evaluation, and forecasting, are important. However, these are insufficient on their own, as many still function mainly as tools for high-level management rather than directly improving productivity and efficiency at the grassroots level.

While data is critically important, user experience may be even more so. Currently, many large language models and AI technologies are focused primarily on developing “smart assistants” for government agencies, while insufficient attention is given to optimizing social resources by supporting the digital economy for micro, small, and medium-sized enterprises.

Third, internal knowledge and synchronized, interconnected data systems are essential in applying science, technology, innovation, and digital transformation. At the same time, local characteristics and cultural identity must be respected and preserved. This means maximizing citizen satisfaction and benefits without eroding the distinct identity of each locality.

Finally, it is essential to create an environment that encourages and nurtures innovative ideas in the application of new technologies. If society focuses only on fear and hesitates to experiment with and adopt emerging technologies, it will be difficult to achieve breakthrough development.

Associate Professor Nguyen Ba Chien, Director of the Academy of Public Administration and Governance and Member of the Central Theoretical Council

A country seeking rapid and sustainable development must possess a sound philosophy for both its development model and national governance. In this context, philosophy is a system of core principles guiding the thinking and actions of stakeholders. For national governance, it refers to the foundational perspectives shaping how a country is organized, governed, and developed long-term.

Three groups of philosophies deserve particular attention. First is the philosophy of development objectives, which comprises four core elements. The first is a people-centered philosophy, where citizens are the center, subject, objective, and driving force of development. All policies must aim to improve quality of life and create conditions for comprehensive human development. This is followed by a philosophy of comprehensive and inclusive governance, ensuring no sector is overlooked and no group is left behind.

Concurrently, there is the philosophy of rapid development, aimed at seizing opportunities, strengthening national competitiveness, and narrowing the development gap with advanced economies. Finally, sustainable development must ensure harmony between economic growth, social progress, environmental protection, and long-term human development.

Second is the philosophy of development drivers. The key drivers are knowledge-based development, technology-driven development, innovation-led development, and data-driven development.

Technology development plays an especially important role in the current context. However, knowledge-based governance is indispensable for ensuring the efficiency, quality, and sustainability of development. Technology can only deliver its full value when supported by a strong foundation of knowledge and appropriate governance capacity.

Third is the philosophy of development content, which includes five key priorities. The State must play a development-enabling role, creating a favorable environment and incentives for economic actors. Institutions must stay ahead of development, paving the way for reform and innovation. The spirit of innovation must be continually sustained to adapt to rapid changes. Development should follow an open approach, strengthening domestic and international connectivity. The ability to adapt flexibly to global shifts will be essential for long-term sustainable development.

Ms. Sinwon Park, Director of the International Labour Organization (ILO) Country Office for Vietnam

Regarding the economic development model, I believe there are three key dimensions that Vietnam should prioritize, the most fundamental being the need to place people at the center of development.

Specifically, economic development policies should not focus solely on growth but must be closely linked with social policies and social protection systems to ensure all citizens benefit from development gains. This is a key challenge for Vietnam today: how to sustain productivity and strengthen economic competitiveness while building an effective, inclusive, and sustainable social protection system.

At the same time, greater efforts are needed to improve people’s access to healthcare, education, and broader development opportunities. This will also serve as an important foundation for achieving long-term sustainable development goals.

Amid today’s rapid transformation, creating sustainable employment opportunities and ensuring gender equality must also be prioritized. Through these efforts, the State can gradually improve social welfare quality while enabling all citizens to participate in and adapt to the economic transition. A more inclusive approach is needed to strengthen the resilience of the workforce against future shocks.

This will require raising awareness and strengthening workers’ knowledge and skills to ensure fair and sustainable access to new development opportunities. Alongside this, institutions should continue to be improved, accountability among stakeholders enhanced, and conditions created for businesses and workers to proactively engage and adapt to potential disruptions during the development process.

Furthermore, expanding access to employment opportunities during the current transition is essential, particularly in strengthening social protection systems to shield people from socio-economic risks. Economic development must go hand-in-hand with social and human development. Labor markets should also be expanded through appropriate policies that help workers access new employment opportunities and improve job quality.

In this context, science, technology, and AI will play an especially important role in boosting labor productivity, improving workforce quality, and strengthening labor market capacity. They will also provide a foundation for more effective governance and stronger institutional capacity, helping Vietnam take a more proactive approach as it enters a new era of development.

Mr. Nguyen Thanh Nhan, Standing Deputy Secretary of the An Giang Provincial Party Committee and Chairman of the An Giang Provincial People’s Council

For many years, the growth model of most localities in Vietnam, including An Giang province, relied primarily on traditional drivers such as land, natural resources, and low-skilled labor. This model was important in promoting economic growth, ensuring national food security, improving living standards, and laying the foundation for regional development over an extended period.

However, in the current context, these traditional growth drivers are increasingly showing their limitations. In An Giang, it has become clear that the old growth model is approaching its limits. Under the province’s 2026 growth scenario, agriculture, forestry, and fisheries are projected to grow by only around 3.5-3.8 percent. Meanwhile, industry, construction, and services will need to expand by 10-14 percent to achieve the target of over 10 percent gross regional domestic product (GRDP) growth.

This highlights a clear reality: traditional growth drivers are no longer sufficient to generate faster economic progress for the locality in the years ahead.

Against this backdrop, An Giang views reforming its local growth model as more than simply adjusting economic indicators; it requires a fundamental transformation in how growth is generated. This means shifting from a resource-based model to one driven by knowledge and data; from extensive to intensive development; from low-cost competition to competition based on technology, governance quality, and productivity; and from growth driven mainly by output to growth based on added value, productivity, and innovation.

Through practical implementation, An Giang has found that without synchronized development in digital infrastructure, logistics, data systems, digital human resources, and sufficiently strong mechanisms and policies to encourage investment and strengthen regional connectivity, reforming the growth model will be extremely difficult, not only for An Giang but for the entire Mekong Delta region.

The province therefore recommends that the central government continue supporting the development of coordinated mechanisms, policies, and investment frameworks to enable localities to effectively implement new growth models suited to the demands of rapid and sustainable development in the next phase.

Professor Hoang Van Cuong, Vice Chairman of the Vietnam Economic Association and former Vice Rector of the National Economics University

Reforming Vietnam’s national development model should be conducted around five key components: national governance, economic development, social development, environmental governance, and foreign affairs and national defense.

First is reforming the national governance model. This begins with restructuring the State apparatus and reallocating State power. Vietnam is currently advancing efforts to streamline and clarify institutional structures. A key challenge, however, is coordinating power and inter-agency collaboration to avoid fragmentation and ensure smooth, effective operations. Greater decentralization and delegation of authority are needed, along with a more balanced allocation of power.

Institutional and legal reform, as well as governance methods, must also evolve. This requires shifting from a management mindset to one centered on development facilitation; from process- and behavior-based management to governance focused on objectives and outcomes; from State intervention to a development-enabling State; and from rigid administration to flexible and adaptive governance. Mechanisms are also needed to encourage officials to adapt to change and foster innovation, while building governance systems grounded in data, digital technologies, and integrated digital ecosystems.

Second is reforming the economic development model. This requires modernizing the socialist-oriented market economy framework, including the roles of economic actors, market-based operating mechanisms, and institutional frameworks for the digital, green, and circular economies. Only by reforming this framework can Vietnam establish an appropriate foundation for a new national growth model.

Third is reforming the socio-cultural development model. This includes transforming education, training, and human resources development, shifting the focus from knowledge acquisition to capability building and creativity. In healthcare, the emphasis should move from treatment-centered systems toward preventive care, alongside stronger coordination between public and private healthcare and accelerated digital transformation.

Fourth is reforming the environmental governance model. Environmental, social, and governance (ESG) standards may present challenges, but if implemented effectively, they can become powerful tools to enhance competitiveness, deepen integration, attract investment, and transform sustainability criteria into development resources. Vietnam should also shift from resource extraction toward green resource governance focused on carbon reduction and the circular economy, while increasing technology adoption and climate resilience.

Fifth is reforming foreign affairs and national defense. In foreign policy, Vietnam needs to move beyond a narrow focus on economic gains and investment attraction toward enhancing national standing, strategic capacity, and self-reliance. Investment attraction, international cooperation, and connectivity should always strengthen domestic capabilities and reinforce strategic autonomy. Meanwhile, national defense must adapt to the realities of deeper international integration and be closely linked with advances in modern science and technology.