The OECD-World Bank Review of Science, Technology and Innovation in Viet Nam was carried out through a partnership between the Organisation of Economic Co-operation and Development (OECD) and the World Bank (WB). It forms part of a series of OECD country reviews of innovation policy and of the ongoing policy dialogue on science, technology and innovation (STI) policies between the World Bank and the OECD with the Government of Viet Nam. The review was requested by the Viet Nam Ministry of Science and Technology (MoST) with financial support from the Viet Nam-Finland Innovation Partnership Programme (IPP).

Viet Nam’s economic and social development has been impressive. High economic performance has translated into a rise in per-capita income and reduction of poverty. This has meant better lives for many.

This chapter brings together key parts of the assessment derived from the review. It discusses some of their policy implications and develops specific policy recommendations.

This chapter discusses the robust economic growth Viet Nam achieved based on openness to international trade, foreign direct investment and integration in global value chains, but which has slowed down somewhat recently. It highlights the composition of exports which until recently has been dominated by low value-added, low-technology goods. The chapter then looks at the current state of framework conditions for innovation which, in a number of ways, constrain innovative activities. It concludes with a discussion of the role of science, technology and innovation as a driver of Viet Nam’s future economic development.

This chapter reviews Viet Nam’s overall innovation performance and examines the innovation capabilities of the business and public research sectors. It begins with a review of a range of indicators of science, technology and innovation from the perspectives of capacity building and innovation output. It then examines the characteristics and recent evolution of the business sector and assesses the sector’s capacity to absorb knowledge and engage in research and innovation. The chapter concludes with an examination of the main features of the public research sector, including universities and public research organisations.

This chapter examines the skills that are critical for innovation and discusses where Viet Nam stands in terms of its human resource capacity for innovation. It first looks at human resource capacity in universities, research institutes, firms, intermediary organisations and the government. It then analyses main constraints on producing human resources and skills for innovation, moving from those most directly related – faculty and the education and training curriculum and programmes – to broader constraints affecting the education and training systems and the labour market.

This chapter reviews the range of public activities the shape Viet Nam’s innovation system. It begins with a description of the system of governance and of its evolution over time. It then examines the main government institutions and their role in the innovation system in some detail. A particular focus is placed on institutions and procedures dedicated to the allocation of public RandD funding. The chapter concludes with an examination of selected policy tasks which are critical the innovation system’s further development. These include fostering policy learning, securing the availability of qualified human resources, enhancing the contribution of public research to innovation, promoting business RandD and innovation, providing supporting infrastructures to innovators and harnessing global opportunities.