Improve endogenous capacity in science and technology for promoting industrialization and modernization

Photo: tapchitaichinh.vn

1. The Party’s viewpoint on the role of science and technology as part of the country’s industrialization and modernization process

Science is a system of knowledge about the nature, laws of existence and development of objects, natural phenomena, society, and thought⁽¹⁾.

Technology is a solution, process, or technological know-how,with or without tools, and a means used to transform resources into products⁽²⁾.

The endogenous national capacity in science and technology (S&T) is generally understood as the capacity to master science and technology to effectively serve the national development goals. Basically, it is the capacity to create, absorb, master, and creatively apply the new scientific and technological knowledge of the world to the specific conditions of the country; the ability to create specific technologies, and to build advanced Vietnamese science and technology. Improving the endogenous capacity of science and technology is the driving force and the most important factor for the successful implementation of the national development goals.

Industrialization and modernization is the process of creating a fundamental and comprehensive transformation of economic activities and socio-economic management, from using manual labors as the main tool, to using labor force universally along with advanced and modern technology, means, and methods based on scientific and technological development, creating high levels of social labor productivity⁽³⁾.

Thus, in essence industrialization and modernization are processes of creating fundamental and comprehensive changes in economic activities and economic and social management, transforming from mainly using manual labor to widely using labor together with advanced technology, means, and methods based on the development of science and technology, generating high social labor productivity.

These two processes are closely interrelated: the technological process creates material conditions for the implementation of the process of the socio-economic development; while the latter creates conditions and motivation for the implementation of the former. Therefore, industrialization and modernization are one of the leading tasks of the development process in each country. In every development stage, based on the socio-economic conditions, the industrialization and modernization process need to be implemented in specific ways and following specific steps suitable to the new context.

Vietnam began the construction of socialism at the starting point of a backward agriculture country, which was severely dismantled by the war. The 3rd National Party Congress (September 1960) identified industrialization as the central task during the transition to socialism, with emphasis on the implementation of the technological revolution and the new allocation of social labours. In essence, it is an accumulation process of constant reproduction and expansion. The Congress determined that the goal of industrialization in this period was to develop our country into a country with modern industry, modern agriculture, and advanced science and technology. The content of industrialization in this period was described by our Party as the simultaneous implementation of three revolutions: in production relations, in science-technology, in ideology and culture, in which, the revolution of science-technology plays a key role.

At the next congresses, our Party has made adjustments and supplemented the industrialization policy in line with domestic and world conditions, but continues to always put science and technology in a particularly important position.

At the 7th National Party Congress (January 1994), the Party clearly determined the need to carry out the two processes of industrialization and modernization at the same time to form the spearhead of economic development to advance the level of science and technology according to the levels around the world. In particular, the Party emphasized the view that science-technology is the foundation of industrialization and modernization.

The 8th National Party Congress (1996) specified that the first stage of the transition period to socialism must fully prepare conditions for the acceleration of industrialization and modernization processes: “Science and technology are the driving force of industrialization and modernization”⁽⁴⁾.

The 9th National Party Congress (2001) stated that in the 21st century, science and technology will take a leap forward, and the knowledge-based economy will play an increasingly prominent role. On that basis, the General Assembly stated: “Developing science and technology together with education and training is the leading national policy, the foundation and driving force for industrialization and modernization”⁽⁵⁾.

The 10th National Party Congress (2006) continued to emphasize this by stating the need to “Closely combine scientific and technological activities with education and training to truly promote the role of the leading national policy, creating a driving force to accelerate industrialization, modernization, and development of the knowledge-based economy”⁽⁶⁾.

The 11th National Party Congress (2011) continued to affirm: “Strongly developing science and technology as a driving force to accelerate the process of industrialization, modernization and development of the knowledge-based economy”⁽⁷⁾.

The 12th National Party Congress (January 2016) emphasized: “Strongly develop science and technology, truly making science and technology the leading national policy and the most important driving force for the development of a modern production force and a knowledge-based economy”⁽⁸⁾.

The 13th National Party Congress (in 2021) specified the policy: “Continue to promote industrialization and modernization on the basis of scientific, technological and innovation progress”⁽⁹⁾.

The use of the terms “foundation” in the Conference of the midterm session  of 7th Central Committee of the 9th National Party Congress, and “the driving force”, “the leading national policy” in the 9th, 10th, 11th, 12th, and 13th Party Congresses shows that the Party has consistently affirmed the leading role of science and technology in the implementation of national industrialization and modernization.

2. The current situation of Vietnam’s endogenous scientific and technological capacity and its contributions to the industrialization and modernization process of the country

The achieved results

Over the last few years, implementing the Party’s guidelines and policies on promoting the role of science and technology in the industrialization and modernization process of the country the country’s scientific and technological capacity has been gradually enhanced. Up to now, the country has 687 public S&T research and development organizations and thousands of private S&T research institutions, 236 universities, 3 national hi-tech parks, 13 hi-tech application industrial parks, 8 concentrated information technology parks⁽¹⁰⁾, 17 national key laboratories, and 2 international centers of mathematics and physics recognized and sponsored by UNESCO. There are more than 500 science and technology information agencies at central and local levels⁽¹¹⁾. The research infrastructure in many fields such as biotechnology, petrochemicals, building materials, energy, automation, nanotechnology, medical technology is enhanced, some facilities have already reached some of the most advanced levels in the region.

Further, the human resources in the fields of science and technology have been improved in both quantity and qualifications. In 2019, the country had 185,436 people participating in research and development activities, an increase of nearly 7.4% (12,753 people) compared to 2017) and an increase of 10.54% (17,690 people) compared to 2015⁽¹²⁾. In which, researchers accounted for the highest proportion (increased from 78.12% in 2015 to 78.8% in 2017 and 80.94% in 2019), the rest being supporting staff and technological staff⁽¹³⁾. The proportion of researchers with university degrees out of the total number of researchers increased rose from nearly 50% in 2015 to nearly 57% in 2019. The number of highly qualified researchers (doctorates) increased rapidly, from nearly 11% in 2015 to 15% in 2019 The number of researchers with master’s degrees also increased from over 39% in 2015 to over 42% in 2019 (see Table 1).

Moreover, the social investment capital for science and technology has increased over the years, from VND 29,777.6 billion in 2015 to VND37,611.59 billion in 2017 and VND44,926.8 billion in 2019⁽¹⁴⁾.

As a result, a number of fields in the natural sciences have reached advanced levels on par with the region and the world such as mathematics, physics, chemistry, medicine, and so on. Vietnam has been able to successfully design and manufacture a number of modern technologies and equipment that are up to international standards. For example, our country is the first country in ASEAN to manufacture and put into operation a 500kV transformer, a large-capacity super-voltage three-phase power transformer⁽¹⁵⁾.

The fields of social sciences and humanities have contributed to providing scientific grounds for the formulation of the Party’s guidelines and policies, and the State’s policies and laws, protecting the ideological foundation of the Party, steadfastly follow the path to socialism, protecting national sovereignty and territorial integrity, preserving and promoting the quintessential values of the nation.

In recent years, the country’s innovation startup ecosystem has also been gradually formed and developed. Currently, the country has more than 3,000 innovative start-ups, attracting about USD 1 billion for two consecutive years. This is 3 times higher than in 2017, making Vietnam the third most dynamic country in Southeast Asia in terms of innovative start-ups⁽¹⁶⁾.

In particular, Vietnam has gradually become an equal and mutually beneficial cooperation partner in international cooperation in science and technology. Up to now, our country has cooperated with 70 countries, territories, international and regional organizations on science and technology. The science and technology market is gradually and strongly developing. There are 15 trading floors and 50 technology incubators. The number of intellectual property and industrial property degrees has increased rapidly, while the ranking of international publication has increased, from 73rd position (2001-2005) to 59th (2011-2015) and 56th position (2016-2020). The growth rate of Vietnam’s international publication is also quite high, reaching 45% in 2020, while that of Indonesia is 4.2%, Malaysia 1.5%, Singapore 7.2%, Thailand 7.4%. Among ASEAN countries, Vietnam’s international publication ranks fifth, after the above-mentioned four countries, but the gap has been narrowed⁽¹⁷⁾.

The enhanced endogenous capacity in the areas of national science and technology has contributed positively to the cause of the industrialization and modernization of the country. Vietnam’s economic growth rate is quite high and relatively stable: 7.58% (period 1991-2000); 7.26% (period 2000-2010); 6.21% (period 2011-2020). The size of the economy increased quite quickly, from USD 9.613 billion in 1991 to 31.17 USD billion in 2010 and USD 346.6 billion by 2020⁽¹⁸⁾.  Thanks to this, the ranking among ASEAN members has increasef from sixth to fourth (surpassing Singapore and Malaysia)⁽¹⁹⁾.

The country’s economic structure has undergone a shift towards industrialization and modernization, gradually reducing the proportion of agriculture and gradually increasing the proportion of industry and services. In the period 2000-2022, the share of agriculture’s contribution will decrease from 24.53% (in 2000) to 11.88% (in 2022); industry - construction has increased from 36.73% to 38.26%; services increased from 38.74% to 41.33%⁽²⁰⁾.

The economic growth model gradually shifted from extensiveness to intensiveness and the quality of growth improved, gradually reducing dependence on resource exploitation, the exporting of raw materials, cheap labours and expanding credit, step by step changing to relying on the application and innovation of science and technology. The contribution of the processing and manufacturing industry to economic growth is increasing, from 18.02% in 2011⁽²¹⁾ to 24.62% in 2021⁽²²⁾; the contribution of the mining industry will decrease from 10.34% in 2011 to 2.44% in 2021.

The proportion of export value of high-tech products in total export value increased from 19% in 2010 to about 50% in 2020. Labour productivity has improved markedly, increasing by nearly 1.5 times in 2020 compared to that in 2015. The average productivity growth rate in the 2016-2020 period reached 5.9%/year, higher than that in the 2011-2015 period (4.3%/year) and exceeded the set target (5%/year).

Economic growth increasingly relies on the contribution of total factor productivity (TFP): from 33.6% in the 2011-2015 period to 45.7% in the 2016-2020 period, exceeding the target set for the 2011-2020 period by 30-35%⁽²³⁾. The improved endogenous science and technology capacity contributes to improving the ranking of Vietnam’s global innovation index: in 2022, Vietnam ranked 48/132 countries (up 4 places compared to that in 2015), ranked second among 36 low-middle-income economies; ranked fourth among ASEAN countries (after Singapore, Malaysia, and Thailand)⁽²⁴⁾.

Some limitations

Firstly, Vietnam’s endogenous science and technology capacity is still low

Although it has improved in recent years, in general, our country’s endogenous science and technology capacity is still low. Specifically, the technological infrastructure for science and technology development is backward and weak. Human resources for science and technology are lacking in quantity and weak in quality. Although human resources for science and technology has improved in recent years, the number of researchers who spend their full time per ten thousand people in Vietnam is still low. In 2019, there were only 7.6 full-time researchers per ten thousand people. This falls short of the target set for 2015, which was to have 9-10 researchers per 10,000 people, and the target set for 2020, which was to have 11-12 researchers per 10,000 people⁽²⁵⁾. Compared with other ASEAN countries, Vietnam ranks fourth, after Singapore (69.6), Malaysia (21.8), Thailand (13.5)⁽²⁶⁾. Currently, Vietnam is lacking in science and technology personnel in critical areas, such as biotechnology, new materials, and core technology, etc. There is also a shortage of leaders and experts in these fields, those that have the capability of leading, orienting research and the development of science and technology for important industries and fields.

Furthermore, investment in science and technology is still low. Social investment in science and technology accounts for about 0.53% of GDP, lower than the world average of 0.7% of GDP and not reaching the target of 1.5% of GDP in 2015 and 2% of GDP in 2020⁽²⁷⁾. Low investment capital for science and technology not only limits the ability to create, access, and absorb technology, but also leaves Vietnam’s science and technology infrastructure backwards and asynchronous. Besides this, the national level of science and technology is still far below that of the leading countries in the ASEAN region. Many enterprises in the manufacturing sector are using outdated technology compared to the world standards. The capacity to absorb and innovate technology, and the ability to innovate in business are still limited.

Secondly, science and technology have not yet become the foundation and driving force of the process of industrialization and modernization

Although the contribution of science and technology to economic growth (shown by TFP) has increased, reaching 45.72% in the period 2016-2020, it is still low compared to developed countries and is still far from other Asian countries during the same period of rapid growth. Specifically, in the period of accelerating development, the contribution of TFP to the economic growth of developed countries was 60-80%; Korea 64.9%; Thailand 53%; China 52.6%; Malaysia 50%⁽²⁸⁾.

Science and technology have not yet become a lever to improve the efficiency of using other resources. In the period 2011-2020, Vietnam’s ICOR coefficient is at 6.2, showing that the efficiency of capital use is much lower than that of other countries and territories during the same growth period and science and technology level. For example, China’s ICOR 4.1 (1991-2003); Japan 3.2 (1961-1979); Korea 3.2 (1981-1990); Taiwan 2.7 (1981-1990).

The labor productivity of our country is much lower than other countries in Asia. In the period of 2011 to present, although Vietnam is a country with one of the higher labor productivity growth rates in ASEAN, it is still 60 years behind Japan, 40 years behind Malaysia, and 20 years behind Thailand⁽²⁹⁾. Further, the endogenous capacity in science and technology is low, therefore Vietnam still mainly exports raw or semi-processed products with low added value. Consequently, the economic growth model of our country is still mainly a model of growth in breadth, in which growth is still mainly based on the increase of capital and labour.

Science and technology have not yet become a driving force for economic restructuring. The pace of economic restructuring in Vietnam is still slow and the quality of the transformation is low. Agriculture: the fields using high technology and with high added value accounts for a low proportion; Cultivation accounts for a high proportion (70%). In regard to industry, the processing and manufacturing industry is heavily processed and assembled, heavily dependent on foreign countries, and lacks a foundation for independent development. The service industry growth mainly comes from traditional, low-tech, and outdated services (accounting for 90%). High-tech service industries and the backbone of the economy (finance, banking, science, and technology...) account for a low proportion.

The above facts show that science and technology have not really become “the leading national policy, the foundation and driving force for industrialization and modernization” in our country. There is still a rather large gap between “thoughts, views, and policies” on the role and development orientation of science and technology and innovation and “actual results”. Therefore, the endogenous capacity of science and technology at the national, enterprise and sectoral levels is still weak. The risk of falling further and further behind in terms of both economic and technological development is a big challenge “or Vietnam in ”the context of deeper international integration and the rapid development of science and technology.

The cause of the limitations

The system of mechanisms and policies has not really created a driving force for the development of science and technology and its application to production, especially investment, taxation, and bidding policies. Funding for science and technology is low, but investment is scattered, lacking focus and concentration. Many administrative procedures are troublesome and not suitable for the field of science and technology. There is no attractive mechanism to draw and encourage the private sector to invest in the research and development of science and technology. There is no mechanism to attract, retain and use domestic, overseas Vietnamese, and foreign talent to participate in the research and transfer of science and technology. Mechanisms and policies have not created favourable conditions for the exchange of scientific and technological products at home and abroad.

Most Vietnamese enterprises are small-scale and have limited financial resources, so the acquisition and application of technological advances face many difficulties, and they have little ability to research and develop technology. In addition, many businesses do not have a long-term vision of technological innovation and innovation for sustainable development. Technological innovation among enterprises is still small and unsystematic.

The labor quality in our country is still low. Despite having a large labour force, today, only over 26% of the country’s laborer’s have gained professional and technological training. Vietnam is facing a shortage of skilled workers in many industries and fields, especially high-tech industries, and agriculture. The number of trained workers has not yet met the needs of the enterprises. The low quality of labor has limited the capacity to receive and apply technological advances to production; limited in the development of new industries, fields, high-tech products, and new technologies.

The science and technology market has not yet developed. The legal system regulating and operating the science and technology market is not synchronized, and lacks a connection mechanism between research institutes, universities, enterprises and production and business establishments. The system of intermediary organizations connecting the supply and demand of science and technology has not yet developed. There is a lack of mechanisms to bind scientific and technological research institutions to socialize products. Enterprises lack information, databases, and documents on technology and research results have not been widely disseminated to enterprises.

Research cooperation with countries in the region and the world has not been promoted. Therefore, we have not taken advantage of the available resources and knowledge of advanced countries or taken advantage of the spread of knowledge to improve the country’s endogenous scientific and technological capacity.

3. Some solutions to improve endogenous capacity in science and technology to promote the industrialization and modernization of the country

In the context of the Fourth Industrial Revolution and its strong impact on all socio-economic sectors and fields, to improve the endogenous capacity in science and technology, serving the process of industrialization and modernization, towards the country’s development goals by 2030 and vision to 2045, it is necessary to focus on a few basic solutions:

Firstly, renovate the mechanisms for managing science and technology must be to fully exploit the roles of both the state and the market. The state should prioritize and invest in science and technology in important areas of the economy, while also encouraging businesses, organizations, and individuals inside and outside the country to invest in researching and applying science and technology. In addition, the management of science and technology should aim to encourage the creativity of scientists and innovators, as well as to renew procedures for scientific project settlement and accounting. There should be mechanisms in place to attract, retain, and utilize committed, talented scientists and researchers from both inside and outside the country to participate in research, transfer of science and technology through policies such as income incentives, recognition, and favorable working conditions. In addition, policies should be in place to encourage research institutions and universities to partner with businesses, and to collaborate with foreign research agencies. Transparency, competition in bidding and execution of scientific tasks must be upheld. Independent monitoring, criticism, and evaluation of scientific products should be carried out to establish trust in using science and technology products made in Vietnam.

Secondly, perfect and renew policies to encourage businesses to upgrade technology through simplifying procedures for accessing capital, premises, and interest rate support. The Ministry of Science and Technology should coordinate with the Ministry of Finance and relevant sectors and fields to issue a list of priority fields for research and transfer. Once the list has been issued, it is necessary to provide specific instructions for businesses to access capital smoothly. Further, there is a need to develop strategies for innovation for small-scaled and medium-scaled enterprises. Build funds for the development of science and technology, start-ups and innovation, for the application and transfer of technology. Encourage enterprises to invest in the application of high technology and source technology for production; create favourable conditions to attract large domestic and foreign economic groups to establish research and deployment centers for new technologies in Vietnam.

Thirdly, enhance technical training for workers with diversified types of training; fundamentally and comprehensively renovate education and training; build a learning society, create a good environment and opportunities for everyone to learn in different forms, in order to acquire knowledge, improve the capacity to receive and apply technology in all sectors and fields of the economy. Training institutions must combine theory with practice; the content of training programs must be consistent with the socio-economic development strategy; associated with technology development in each stage.

Fourthly, promote the development of the science and technology market. First of all, perfect the legal system and policies relating technological transactions, buying, selling, and renting; develop and form organizations to appraise and evaluate technology quality and the prices of technological products; form brokers, and intermediaries connecting the supply and demand of science and technology between research institutes, universities, and enterprises. Mechanisms should be in place to socialize science products produced by public scientific research organizations. In addition, strict implementation of the laws covering intellectual property; organize technology fairs, introduce databases and documents on new technologies on university websites, and research institutes, creating conditions for businesses and production facilities to access technological information.

Fifthly, enhance international cooperation in research and technology transfer. For effective cooperation, it is necessary to develop a science and technology strategy; develop appropriate methods and cooperation plans. Pilot the establishment of some scientific and technological institutions with foreign investment in Vietnam. In addition, establish some long-term research centers based on cooperation between Vietnamese research institutions and foreign countries. Encourage cooperation in scientific research and technological development among domestic enterprises, universities, research institutes and individuals, and foreign partners. Encourage universities and research institutes to participate in overseas scientific conferences and seminars; send staff members to study in countries with developed science and technology infrastructure.

_________________

Received: March 2, 2023; Revised: March 11, 2023; Approved for publication: March 22, 2023.

Endnotes:

(1), (2) National Assembly: Law on Science and Technology, 2018.

(3) Tran Thi Van Hoa: Industrialization and modernization of the country on the foundation of science, technology, and innovation from the perspective of the Global Innovation Index, Proceedings of the Scientific Conference “Some theoretical and practical issues on national industrialization and modernization guidelines and policies to 2030, with a vision to 2045”, Hanoi.

(4) CPV: Documents of the 8th National Party Congress, National Political Publishing House, Hanoi, 1996, p.85.

(5) CPV: Documents of the 9th National Party Congress, National Political Publishing House, Hanoi, 2001, p.112.

(6) CPV: Documents of the 10th National Party Congress, National Political Publishing House, Hanoi, 2006, p.210.

(7) CPV: Documents of the 11th National Party Congress, National Political Publishing House of Truth, Hanoi, 2011, p.218.

(8) CPV: Documents of the 12th National Party Congress, National Political Publishing House, Hanoi, 2016, p.119.

(9) CPV: Documents of the 13th National Party Congress, vol.I, Truth National Political Publishing House, Hanoi, 2021, p.122.

(10) Bao Lam: Removing the “blockage” in science, technology, and innovation, 2022, https://tapchixaydung.vn/thao-go-diem-nghen-ve-khoa-hoc-cong-nghe-va-doi-moi-sang-tao.

(11) Ministry of Science and Technology: Vietnam Science and Technology 2015.

(12), (13), (14), (17), (26) Ministry of Science and Technology: Science, technology, and innovation of Vietnam in 2020, Science and Technology Publishing House, Hanoi, 2021, p.73, 50, 50, 58, 61, 73, 57.

(15) Ministry of Industry and Trade: Increasing the localization rate of the mechanical industry through the application of science and technology, 2022, https://moit.gov.vn/khoa-hoc-va-cong-nghe/gia-tang-ty-le-noi-dia-hoa-nganh-co-khi-nho-ung-dung-khoa-hoc-va-cong-nghe.

(16) Le Xuan Dinh: Creating breakthroughs so that science, technology, and innovation can become the main driving force for rapid and sustainable economic growth and national development, 2022, https://tapchicongsan.org.vn/media-story.

(18) General Statistics Office of the year.

(19) Pham Thi Thanh Binh: Factors contributing to the bright spot of Vietnam’s economic growth in 2020, Banking Magazine No. 3+4 in 2021.

(20), (22) General Statistics Office: Statistical Yearbook 2022, Statistical Publishing House, Hanoi, 2022.

(21) General Statistics Office: Statistical Yearbook 2013, Statistical Publishing House, Hanoi, 2013.

(23) CPV: Documents of the 13th National Party Congress, vol.II, National Political Publishing House Truth, Hanoi, 2021, p.18.

(24) Thao Kinh: Global Innovation Index and Vietnam’s Results, https://dangcongsan.vn/khoa-hoc/chi-so-doi-moi-sang-tao-toan-cau-va-ket-qua-cua-viet-nam, 2022.

(25), (27) Prime Minister: Decision approving the Strategy for Science and Technology Development 2011-2020, Hanoi, 2012.

(28) Nguyen Thi Thu Trang: How to improve labour productivity and contribute TFP to economic growth, http://tapchitaichinh.vn/lam-gi-de-nang-cao-nang-suat-lao-dong-va-dong-gop-tfp-doi-voi-tang-truong-kinh-te 2021.

(29) Ha Cuong: Vietnam’s labour productivity is 60 years behind Japan, https://vtc.vn/nang-suat-lao-dong-cua-viet-nam-di-sau-nhat-ban-60-nam.