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.