Innovation, green growth should drive Vietnam’s future development: minister

Vietnam's Minister of Planning and Investment says four economic drivers are conceptualized for upcoming development phases: innovation, an international financial center in Ho Chi Minh City, semiconductor-chips and green growth.

Minister Nguyen Chi Dung identified the economic drivers while addressing the Singapore Regional Business Forum (SRBF) in Hanoi Friday. The goal is all-round sustainable development, he said.

Discussing energy issues, Dung noted that Vietnam was focusing on renewable energy, but the resource was too reliant on the weather. Meanwhile, hydropower development was close to its maximum potential. Therefore, Vietnam may reconsider the development of nuclear power as a source to stabilize the electricity system.

He said that the National Innovation Center (NIC) within the Hoa Lac high-tech park in Hanoi, which will be officially launched this October, aims to become a top facility in Southeast Asia.

On the international financial center in HCMC, the minister said they were studying suitable models and looking to learn from Singapore’s experiences. He said the idea was to complement the financial hub in Singapore and diversify investment sources, not to compete against the island nation.

On semiconductor-chips and green growth, the ministry hoped for cooperation from businesses of both countries in building plans, he said.

Dung added he expected the four economic drivers to help Vietnam achieve net zero emissions.

Singapore was the second-biggest foreign investor in Vietnam as of May 2023 with a total registered capital of $73.38 billion in 3,240 projects, according to the planning ministry.

Facilitating FDI inflows

UOB, a leading Singapore banking group, said at the event that the MoU that it has just signed with the Foreign Investment Agency (FIA) under Vietnam's Ministry of Planning and Investment would facilitate more foreign direct investment (FDI) inflows into Vietnam and create more jobs.

The newly-signed MoU, which renews the previous one inked in 2015, will boost high-quality FDI into Vietnam, focusing on technology, digitalization, sustainability, renewable energy, semi-conductors and financial services, it said.

The UOB, with its extensive network in the ASEAN, was well positioned to connect global companies to the region. The group said it was committed to continuing investments in Vietnam as it believed in the country’s potential.

The forum also saw UOB FinLab signing several MoUs with Vietnamese agencies and higher education institutions to provide internship opportunities to students.

Tech innovation as growth driver

Speaking at a discussion on technology innovation in the ASEAN's digital development, managing director Thai Ha Le of VinFuture Prize stressed challenges facing the information technology industry.

She said the sector needs supporting policies, infrastructure, skilled labor force and effective collaboration between the government, industry stakeholders and research institutes. It is a problem that some excellent students do not have the skills required by the industry, she noted.

She suggested more dialogues between stakeholders to help the government keep pace with the demand of the industry and academic institutions. They can cooperate to set up funds and financial mechanisms to facilitate the utilization of emerging technology, Le said.

VinFuture and the Vingroup ecosystem saw emerging technology solutions helping with carbon footprint reduction, she said.

For example, the use of electric vehicles can help reduce carbon emissions towards a cleaner transportation system. Other applications include renewable energy sources, sustainable construction materials, smart lighting systems, and the use of smart management systems and intelligent routing algorithms to optimize traffic routes and reduce fuel consumption.