Vietnam has five years to reach 2% of GDP in science and technology investment, a pace Korea took 40 years and China 30 years

At the Vietnam International Industry Exhibition 2025 (VIET INDUSTRY 2025), Dr. Nguyen Quan, President of the Vietnam Automation Association, said Vietnam’s science and technology development requires very large investment. He noted that government budget investment should reach at least 3% of total annual spending, alongside funding from the private sector.

Investment targets and the financing gap

Dr. Nguyen Quan said the target by 2030 is to invest about 2% of GDP in science and technology, a level he described as highly challenging. He compared Vietnam’s timeline with other countries, saying Korea took 40 years and China 30 years to reach 2% of GDP investment in science and technology. With only five more years to reach the 2% GDP target, Vietnam would need to complete in five years what China and Korea took 30–40 years to accomplish.

He argued that progress depends not only on state-owned enterprises but on investment interest across the entire Vietnamese business system. Over the long term, private enterprises are expected to become the largest source of investment for science and technology.

Policy and institutional changes required

To mobilize the required capital, Dr. Nguyen Quan said Vietnam’s current institutional and policy framework must undergo breakthrough changes. He referenced the Resolution’s direction for 2030, including strengthening potential and capabilities in science, technology, and innovation across multiple important fields.

Key 2030 targets cited

• Technology level and enterprise innovation capacity should be above the world average; some areas should reach international standards.
• Vietnam’s digital competitiveness and government digital development indicators should remain among the leading in Southeast Asia; the country is cited as being in the top 50 globally for digital competitiveness and government digital development.
• At least five digital technology enterprises should be on par with advanced nations.
• Total factor productivity (TFP) contribution to growth should exceed 55%.
• High-tech product exports should account for at least 50% of total goods exports.
• The digital economy should reach at least 30% of GDP.
• Online public service usage by citizens and businesses should exceed 80%; cashless transactions should reach 80%.
• The share of enterprises engaged in innovation should exceed 40% of total enterprises.
• R&D spending should reach 2% of GDP, with societal funding accounting for more than 60%.
• At least 3% of the total annual budget should be allocated to R&D, digital transformation, nationwide science and technology innovation, and should increase as required.
• The science, technology, and innovation system should be restructured to ensure effectiveness.
• Human resources for science and technology should reach 12 researchers per 10,000 people.
• 40–50 science and technology organizations should be ranked regionally and globally.
• International scientific publications should grow by an average of 10% per year.
• Patent filings should grow by an average of 16–18% per year, with 8–10% commercialization.

Digital infrastructure and technology mastery

The plan also calls for developing advanced digital infrastructure, including super-large capacity and wide bandwidth, to be on par with advanced countries. It includes gradually mastering key technologies such as AI, IoT, big data, cloud computing, blockchain, semiconductor, quantum technology, nano, 5G/6G mobile communications, satellite communications, and other emerging technologies.

It further includes nationwide 5G coverage and completing smart city construction for centrally governed cities and selected provinces/cities with suitable conditions.

Attracting global technology investment

Dr. Nguyen Quan said Vietnam should attract at least three world-leading technology organizations to establish headquarters and invest in research, development, and production in Vietnam.