[Research Contribution] Applying Ho Chi Minh Ideology to the Development of Science, Technology and Innovation in Ho Chi Minh City – Part 1: Current Status
4 December, 2025
Keywords: Application; Ho Chi Minh Ideology; Science and technology development; Innovation; Ho Chi Minh City; Solutions
Ho Chi Minh Ideology emphasizes the critical role of science, technology and innovation in national development, regarding these as key drivers for advancing industrialization and modernization. Ho Chi Minh City has actively implemented programs to support the startup and innovation ecosystem, developed high-tech research centers, and invested in strategic fields such as biotechnology, artificial intelligence, and smart urban development. However, for science, technology and innovation to truly become a top national priority, research by authors from the University of Economics Ho Chi Minh City (UEH) indicates that it is necessary to refine preferential mechanisms and policies, increase synchronized investment in science and technology infrastructure, enhance the quality of human resources, and expand international cooperation. This will not only ensure sustainable development but also affirm Vietnam’s position in the global knowledge economy.
Achievements in research and application of Ho Chi Minh Ideology in science, technology and innovation
Public-Private Partnership (PPP) in science and technology (S&T) is a strategic instrument that maximizes the utilization of resources from both the public and private sectors, thereby promoting innovation and the practical application of technology in production and daily life. According to the Ho Chi Minh City People’s Committee report (2023), the City has implemented numerous cooperation programs between universities, research institutes and enterprises in key areas such as artificial intelligence (AI), biotechnology and digital transformation. Notable examples include collaborative projects between Vietnam National University – Ho Chi Minh City, Saigon Hi-Tech Park and major technology enterprises such as FPT and VNG, which have produced high-value applied products and contributed to enhancing the competitiveness of the City’s economy.
Ho Chi Minh City is also accelerating AI development cooperation programs between Vietnam National University – Ho Chi Minh City and technology enterprises, which have brought into operation Big Data analytics systems that support urban management and the development of AI applications in smart transportation.
During the period from 1986 to 2020, under the Doi Moi (Renovation) policy, Ho Chi Minh City made remarkable strides in S&T development. Investment in S&T from the City’s budget increased by an average of 12% per year, contributing to the formation of more than 1,000 technology enterprises concentrated in key sectors such as information technology, food processing and biotechnology (HCMC People’s Committee, 2020). However, the contribution of total factor productivity (TFP) to the City’s GRDP during this period reached only 33% per year, reflecting the need for a long-term strategy to enhance the application of S&T in key economic sectors.
During the 2021–2024 period, through the profound application of Ho Chi Minh Ideology on S&T and the support of National Assembly Resolution No. 98/2023/QH15 dated June 24, 2023 on piloting certain special mechanisms and policies for the development of Ho Chi Minh City, the City achieved remarkable breakthroughs. The contribution of total factor productivity to GRDP rose to 47% per year, surpassing the national average of 40% (Dung, 2023). The innovation and startup ecosystem developed robustly, with more than 2,200 startups and 200 venture capital funds in operation – double the figures from the previous period. These numbers confirm that Ho Chi Minh City is undergoing a powerful transformation to become a leading innovation hub in Southeast Asia.
Digital transformation in enterprises: Digital transformation has become a core strategy of Ho Chi Minh City in recent years. According to the Ho Chi Minh City Department of Information and Communications report (2023), the proportion of enterprises adopting digital transformation increased from 22% in 2020 to 42% in 2023. Sectors such as finance, education, e-commerce and logistics have witnessed a strong surge in the adoption of technologies including artificial intelligence (AI), Big Data and blockchain. In the context of the Fourth Industrial Revolution, Ho Chi Minh City has seen a marked increase in the application of advanced technologies such as AI, Big Data and blockchain in key sectors including finance, education, e-commerce and logistics. According to the HCMC People’s Committee report (2023), the proportion of enterprises adopting digital transformation rose from 22% in 2020 to 42% in 2023, creating a powerful impetus for the digital economy. Technology solutions have not only enhanced productivity but also generated new business models and optimized management and operational processes within enterprises.
A prime example of successful technology application is the smart water metering system developed by domestic technology enterprises. This technology has not only helped reduce production costs but also improved the efficiency of water resource management, making a positive contribution to the City’s sustainable development goals. Additionally, the implementation of Building Information Modeling (BIM) guidelines in urban railway projects has significantly improved construction progress, minimized errors and saved costs by up to 15% compared to conventional methods.
Ho Chi Minh City has affirmed its pioneering role in applying S&T to practical contexts, particularly through the application of Building Information Modeling (BIM) guidelines in urban railway projects. BIM technology, developed to optimize the design and construction management process, has demonstrated outstanding effectiveness in reducing errors and improving construction progress. The implementation of BIM in urban infrastructure projects has helped the City save up to 15% in costs compared to traditional methods while enhancing interaction among project stakeholders, including contractors, engineers and management authorities.
The application of BIM has not only delivered economic benefits but also enhanced construction quality, exemplifying the practicality of Ho Chi Minh Ideology: “S&T must be applied to solve social problems and create value for the community” (Ho Chi Minh, 2002, p. 128). This Ideology clearly guides that S&T should not remain at the theoretical level but must be transformed into concrete solutions serving daily life, thereby improving people’s quality of life.
In urban railway projects such as Metro Line 1 and Metro Line 2, BIM has helped integrate design, construction and operational data into a single platform. This has not only enhanced transparency but also minimized risks arising during project implementation. The use of BIM has reduced design errors by up to 30% and construction time by 20% thanks to its capacity for detailed simulation and conflict detection from the design stage. This represents a significant advancement in construction management in Vietnam, bringing Ho Chi Minh City closer to international standards in urban infrastructure project management (Dung, 2023).
Furthermore, BIM supports the management of a structure’s entire lifecycle – from planning and construction through to operation. This is particularly important in the context of modern cities that demand sustainability and a high degree of adaptability to environmental and social changes. Ho Chi Minh City has demonstrated that, when properly implemented, technology solutions not only improve economic efficiency but also enhance the locality’s competitiveness in the region.
Research and Development (R&D) in enterprises: Ho Chi Minh City has invested heavily in R&D to enhance competitiveness. During the 2021–2023 period, the average R&D expenditure of enterprises in the City accounted for 1.5% of revenue, up from 0.8% during the 2010–2020 period (HCMC People’s Committee, 2023). Ho Chi Minh City has witnessed the strong rise of high-tech enterprises such as FPT Software, VNG and VinAI – entities leading the development of breakthrough technology products. These enterprises have not only driven the growth of the knowledge economy but also demonstrated the effectiveness of the City’s R&D support policies. According to the HCMC Socio-Economic Report for the 2021–2023 period, high-tech enterprises have made significant contributions to enhancing the competitiveness of the economy while creating momentum for digital transformation and innovation (HCMC People’s Committee, 2023).
The pioneering role of high-tech enterprises: FPT Software, with its global network, has successfully developed enterprise management software integrating artificial intelligence (AI) and Big Data. These solutions have not only improved management efficiency but also optimized production processes for enterprises both domestically and internationally. Meanwhile, VNG, with its online platforms such as Zalo and ZaloPay, has accelerated the digitization of public services and e-commerce in Vietnam. These products have not only met domestic market demands but also affirmed the position of Vietnamese enterprises on the global technology map. VinAI, an enterprise focused on artificial intelligence research, has developed AI applications in facial recognition, production automation and traffic management. VinAI’s products have not only been applied in key industries but also contributed to building the image of Ho Chi Minh City as a regional innovation hub in Southeast Asia. All of these achievements reflect the City’s sound development strategy, in which S&T is placed at the core, driving pioneering enterprises to harness technology to address socio-economic challenges.
Effectiveness of the City’s R&D support policies
Ho Chi Minh City’s enterprise R&D support policies have created a favorable environment for high-tech enterprises to develop. The proportion of enterprise investment in R&D in the City accounts for 1.2% of GRDP, higher than the national average of 0.5%. This demonstrates the City’s commitment to encouraging enterprises to innovate and apply modern technology in production and business operations.
Ho Chi Minh City has implemented numerous practical policies to support innovation activities and the development of high-tech enterprises. One of the most important policies is the S&T Development Fund, designed to finance research projects, new product development and technology improvement. The Fund prioritizes enterprises with innovation capabilities in fields such as artificial intelligence (AI), biotechnology and renewable energy, with the goal of enhancing the added value of products and services.
The City has also established enterprise support centers, a notable example being the Innovation and Advanced Technology Center (IIC). This center not only provides consulting and training services on innovation but also facilitates connections between enterprises and international research networks and funding organizations. Cooperation programs at the center help enterprises access new technologies, implement technology transfer and commercialize products, accelerating the process of bringing products to market.
In addition, the City has enacted corporate income tax exemption and reduction policies in the S&T sector, particularly for innovative startups. Financial support includes preferential loans from the S&T Development Fund at low interest rates and investment stimulus programs aimed at encouraging enterprises to innovate production technologies.
Furthermore, the local government has focused investment in S&T infrastructure, such as the construction of Saigon Hi-Tech Park and startup incubators at universities. These serve as innovation spaces, helping enterprises and individuals gain easier access to technical resources, talent and markets.
The growth of high-tech enterprises such as FPT Software, VNG and VinAI has demonstrated the effectiveness of Ho Chi Minh City’s R&D support policies. These achievements have not only enhanced the competitiveness of the local economy but also affirmed the City’s pioneering role in building a knowledge economy. With a long-term vision and strong investment in S&T, Ho Chi Minh City is increasingly becoming a major innovation hub in the Southeast Asian region.
Thanks to its S&T and innovation strategy, Ho Chi Minh City has significantly improved its competitiveness on the regional and global stage. According to the Global Innovation Index (2023), the City currently ranks 111th among global innovation ecosystems, a rise of 17 positions compared to 2020. The City’s startup ecosystem is valued at USD 5.22 billion, second only to Singapore and Jakarta in the Southeast Asian region.
The share of key industries and high-tech services in the City’s GRDP increased from 45% in 2020 to 52% in 2023. This demonstrates that S&T has truly become the primary growth driver, consistent with Ho Chi Minh Ideology that “industrialization must go hand in hand with modern science and technology” (Ho Chi Minh, 2002).
Thus, Ho Chi Minh City, through the creative application of Ho Chi Minh Ideology, has achieved remarkable accomplishments in S&T and innovation – from developing the startup ecosystem, promoting digital transformation, to strengthening R&D investment and enhancing competitiveness. However, to continue developing sustainably, the City needs to maintain policy innovation, focus on training high-quality human resources and invest more vigorously in technology infrastructure. These efforts will help the City not only maintain its leading position domestically but also extend its reach regionally and globally.
Limitations and challenges in investment and development of science, technology and innovation in Ho Chi Minh City
Ho Chi Minh City, Vietnam’s leading economic and S&T center, has achieved many notable accomplishments in recent years. However, relative to its potential and development needs, the S&T sector still faces numerous limitations and challenges. One of the most prominent issues is that investment in S&T remains fragmented, unsynchronized and insufficient for the City’s sustainable development requirements. According to HCMC People’s Committee data (2023), the ratio of budget expenditure on S&T reached only 0.88% of GRDP during the 2021–2023 period, lower than the average for Southeast Asian nations, where investment typically accounts for 2–3% of GDP (Dung, 2023). This reveals limitations in the allocation of financial resources to drive research projects, innovation and technology development.
S&T human resources in Ho Chi Minh City are also facing significant difficulties, particularly the shortage of leading experts in strategic fields such as microchips, biotechnology, artificial intelligence (AI) and nanotechnology. The Ho Chi Minh City Department of Science and Technology report (2023) indicates that, although the number of S&T personnel has increased compared to previous periods, the quality of human resources has not yet met the demands of industrialization and modernization. In-depth training programs and policies to attract talent from abroad remain ineffective, leading to a shortage of leadership capable of managing national- and regional-level projects. Specifically, in the microchip sector, highly qualified experts account for less than 10% of the total workforce in the industry, even though this is considered a foundational field for digital transformation and Industry 4.0.
Another major challenge is the absence of strong scientific teams and breakthrough S&T products. Although Ho Chi Minh City has implemented numerous high-tech research and application projects, the number of S&T products with practical value that have been successfully commercialized remains limited. According to the Saigon Hi-Tech Park Research and Development Center report (2023), over the past five years, only 13 patents were granted, most of which were minor improvements rather than breakthrough inventions. This is partly due to limitations in the linkage between universities, research institutes and enterprises, which prevents research from being transformed into tangible products or results that align with market demand.
Another contributing factor is the lack of coherence in R&D support policies. Although the City has implemented numerous investment stimulus programs and support for innovative startups, these policies often lack sustainability or fail to meet the practical needs of enterprises. For example, high-tech enterprises still face difficulties in accessing preferential capital or S&T development funds. Additionally, the proportion of enterprises conducting R&D activities in the City stands at only 15%, lower than in major Southeast Asian cities such as Singapore and Kuala Lumpur, where this rate typically exceeds 30%.
Currently, the linkages between components of the S&T ecosystem are not yet robust. Cooperative relationships between universities, research institutes and enterprises remain fragmented, leading to resource waste and limiting the effectiveness of research projects. International cooperation programs, although implemented, largely focus on academic exchange rather than technology transfer or application in production and business. This prevents the City from fully capitalizing on opportunities from international research networks to develop high-value S&T products.
Moreover, the research infrastructure for S&T in Ho Chi Minh City has not yet met practical demands. Despite investments in Saigon Hi-Tech Park and startup incubators, many laboratories and research centers still lack modern equipment and facilities meeting international standards. This not only reduces research effectiveness but also creates difficulties in attracting scientists and high-tech enterprises to work in the City.
In addition, a major challenge is the lack of coherence in policies to encourage cooperation. According to the Ho Chi Minh City Department of Science and Technology report (2023), some cooperation programs have not been truly effective due to the absence of flexible financial mechanisms and appropriate preferential policies. For example, small and medium-sized enterprises often face difficulties in accessing R&D support funds, which limits their ability to collaborate with universities and research institutes. This underscores the need for breakthrough policy reforms to create more favorable conditions for public-private cooperation projects.
Author: Assoc. Prof. Dr. Pham Thi Kien – University of Economics Ho Chi Minh City.
This article is part of the Series on Research Dissemination and Applied Knowledge from UEH, carrying the message “Research Contribution For All”. UEH cordially invites readers to follow the next edition of UEH Research Insights.
Text and images: Author, UEH Department of Communications and Partnerships
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