Vietnam's tech firms should pursue end-to-end product strategy, avoid ‘halfway’ innovation: minister

Vietnamese technology firm ought to pursue a product-driven strategy and sustain long-term global ambitions, said Minister of Science and Technology Nguyen Manh Hung.

Hung made the remarks during a three-hour dialogue, themed “strategic thinking, disciplined culture and global ambition: guidance for CMC’s breakthrough journey,” with executives of CMC, a leading tech company in Vietnam, on Wednesday.

The Minister, who used to be chairman cum CEO of military-run tech giant Viettel, said Vietnamese tech companies can only build sustainable competitiveness by bringing market-ready products to scale, rather than stopping at research.

"Many domestic firms invest heavily in R&D but stop halfway because they fail to commercialize their technologies. Besides, they need to control the full value chain from design and integration to manufacturing, sales, and after-market services," he added.

Commenting on CMC’s AI ecosystem, C-OpenAI, Hung advised the group to avoid attempting an all-purpose platform and instead focus on targeted segments. “Talk less about technology, talk more about products. In the end, customers only pay for products”, he stressed.

On strategic choices between AI and semiconductors, Hung argued that the real determinant is not what to choose but whether the company is willing to “go all the way".

AI is a natural path, he said, provided that CMC has clear data strategies and defined products and markets. On the other hand, semiconductor development, although broad, does not require billion-dollar fabs in the early stages, so companies can target niches such as chip design, IP blocks, testing or IoT semiconductors if they have the persistence and resources for a sustained effort.

“A correct decision matters less than a decision that is carried through to the end. Once chosen, you must go all the way,” he said.

Hung also cautioned that outsourcing cannot be a long-term foundation for Vietnamese technology firms seeking global relevance. While software outsourcing generates revenue, he said it should serve only as “seed capital” to build financial strength and experience before companies invest in core technologies and proprietary products.

“Firms that remain in outsourcing will struggle to build a global Vietnamese tech brand,” he said. “To go far, you must own the intellectual property, platforms, and products that carry your identity,” he stressed.

Vietnam is now home to more than 50 chip design firms employing an estimated 7,000 engineers. Around 15 companies with some 6,600 engineers and over 10,000 technicians are engaged in chip packaging, testing, and production of semiconductor equipment and materials, according to the Ministry of Industry and Trade.