How Sci-Tech Is Reshaping Việt Nam’s Growth Path

ARGO CAPITAL
9 Min Read

Strategic Policy Shifts And The New Economic Foundation

The implementation of Resolution 57 marks a historic turning point for Vietnam as the nation prioritizes the sci-tech sector to drive its next phase of economic evolution. Within the first year of this strategic push, the government has successfully positioned innovation and digital transformation at the very heart of its macroeconomic policy, moving away from a traditional model reliant on low-cost labor. This shift is essential because the historical advantages of cheap manufacturing and abundant natural resources are rapidly fading in the face of the fourth industrial revolution.

By adopting a knowledge-based approach, the country aims to avoid the middle-income trap and secure long-term double-digit growth. The resolution serves as a strategic declaration that technology is no longer just a supporting tool but the primary engine for breakthrough expansion. The framework sets ambitious targets for 2030, including achieving upper-middle-income status and ensuring that the digital economy contributes at least thirty percent of the total gross domestic product. By 2045, the vision extends even further, aiming to transform the nation into a high-income developed country.

The success of this transition depends heavily on a fundamental change in governance thinking that favors an enabling environment over strict control-oriented regulation. Historically, new business models in fintech and blockchain faced significant legal uncertainty, but the new policy landscape encourages experimentation and risk-taking among researchers and entrepreneurs. This change in mindset is backed by high levels of political commitment, ensuring that the integration of advanced systems remains a national priority. The rapid translation of these goals into practice is evident through the passage of specialized mechanisms that allow for piloting new technological solutions in real-world environments.

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Institutional Reforms And Measurable Digital Progress

The past year has functioned as a foundational period for institutional growth, characterized by an unprecedented wave of legal reforms designed to clear decades-old hurdles in the research sector. The government has submitted dozens of related laws and decrees to establish a clear legal framework for data management, digital transactions, and the development of specialized human resources. These structural improvements have already yielded tangible results, with the sci-tech and digital sectors contributing over sixteen percent to the national economy in the most recent fiscal year.

Furthermore, the country has seen a dramatic rise in global rankings for telecommunications infrastructure and internet speed, reflecting a massive investment in fixed broadband and 5G coverage. By the end of 2025, over half of the population gained access to high-speed mobile networks, placing the nation among the top global performers in connectivity. The official operation of the first national data center meeting international standards marks another milestone in the quest for technological sovereignty and data security, providing a secure environment for the storage and processing of vital national information.

Beyond infrastructure, the nation has identified thirty-five strategic product groups that will receive prioritized investment, ranging from artificial intelligence and aerospace to rare earth and biomedical technology. This targeted approach has helped the country climb significantly in the Global Innovation Index, leading the group of lower-middle-income economies and fostering a startup ecosystem that now ranks fifth within the regional trade bloc. With approximately four thousand innovative startups already established, the synergy between the state and the private sector is stronger than ever. Private investment now accounts for the majority of research and development spending, indicating that domestic enterprises are taking a lead role.

Professional Analyst Report On Technological Integration And Growth Forecasts

From a professional financial and analytical perspective, the inaugural year of Resolution 57 represents a successful de-risking of the national growth model through the institutionalization of innovation. We observe that the shift toward a knowledge-based economy is being supported by a sophisticated blend of legislative reform and targeted infrastructure spending. This is mathematically significant because the transition to a high-tech manufacturing base is expected to improve total factor productivity, which is the primary driver for sustained double-digit GDP growth.

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The establishment of high-standard data centers and the rapid deployment of 5G networks create a high-performance environment for the deployment of industrial AI and automation. By placing the business sector at the center of the innovation system, the government is ensuring that research activities are aligned with market demand, thereby increasing the return on investment for both public and private capital. The move toward technology self-reliance in critical fields like semiconductors and next-generation networks is a strategic move to insulate the domestic economy from global supply chain disruptions.

The institutionalized support for high-tech sectors also facilitates the attraction of high-quality foreign direct investment. Global technology giants are increasingly looking toward Vietnam as a stable and advanced production base that can integrate into their global supply chains. This virtuous cycle of investment and innovation is expected to result in a more resilient and diversified economic foundation. As the government continues to refine its regulatory frameworks, the focus will remain on ensuring that the benefits of technological progress are distributed across the economy, supporting broad-based growth and improved living standards for the population.

Comprehensive Analysis Of Regional Market Dynamics And Investment Shifts

The acceleration of Vietnam’s sci-tech infrastructure under Resolution 57 is catalyzing a profound shift in the regional competitive landscape of Southeast Asia. We are observing an aggressive reallocation of international venture capital toward the Hanoi and Ho Chi Minh City tech corridors, primarily driven by the newfound legal clarity surrounding digital assets and public-private partnerships. This maturation of the local ecosystem is significantly lowering the risk premium for foreign institutional investors who were previously deterred by regulatory ambiguity.

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The rise of the digital economy to nearly nineteen percent of GDP suggests that the domestic market is reaching a critical mass where network effects will start to drive exponential growth in sectors like e-commerce logistics and fintech. From a regional perspective, Vietnam’s move to prioritize semiconductors and AI creates a high-tech corridor that directly challenges the traditional manufacturing dominance of neighboring states. The focus on high-quality human resource development is intended to create a sustainable talent pipeline that can support complex operations in the aerospace and biomedical fields.

This strategic positioning is likely to spark a regional talent war as multinational corporations seek to capitalize on the country’s rapid digital infrastructure upgrades. Furthermore, the establishment of technology groups focusing on thirty-five strategic products indicates a move toward vertical integration that could reshape regional supply chains for the next decade. The success of the national data center and 5G rollout provides a localized testing ground for smart city applications and large-scale automation that can be exported as a service model across ASEAN.

Investors should view the current phase as a foundational buy-in period where early adopters of the new growth model will likely see the highest returns as the economy scales toward its 2030 targets. As we move into 2026, the convergence of political will and private sector agility remains the most critical variable for maintaining this momentum. The shift from institution building to impact measurement will likely result in more disciplined capital allocation, ensuring that resources are directed toward technologies with the highest multiplier effect on the broader economy, eventually solidifying the country’s position as a global innovation leader.

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