[Research Contribution] Applying Ho Chi Minh Ideology to the Development of Science, Technology, and Innovation in Ho Chi Minh City – Part 2: Policy Implications for HCMC
4 December, 2025
Keywords: Application; Ho Chi Minh Ideology; Science and Technology Development; Innovation; HCMC; Solutions
In Part 1 of this article, the author from the University of Economics Ho Chi Minh City (UEH) analyzed the current state, achievements, and limitations of studying and applying Ho Chi Minh Ideology in science, technology, and innovation in HCMC. Building on this foundation, the author emphasizes the need to refine priority mechanisms and policies, strengthen comprehensive investment in science and technology infrastructure, improve the quality of human resources, and expand international cooperation. These efforts will not only ensure sustainable development but also affirm Vietnam’s position in the global knowledge economy. Read on in Part 2 of the article!
Solutions for Developing Science, Technology, and Innovation in HCMC
Although HCMC has achieved significant milestones in developing science and technology (S&T) and innovation, numerous challenges remain that must be addressed to achieve sustainable development and international competitiveness.
To drive S&T and innovation forward, HCMC must focus on implementing breakthrough strategic solutions. Key priorities include refining institutional mechanisms and policies, developing human resources, strengthening international cooperation, and establishing research and innovation centers. These form the foundation for the city to enhance its competitiveness and solidify its role as a leading S&T hub in the region.
First, institutional mechanisms and policies for science, technology, and innovation development must be refined.
The current policy framework lacks the flexibility and coherence needed to robustly promote innovation, particularly in key industries. According to a report from the HCMC Department of Science and Technology (2023), policies encouraging research and development (R&D) and technology transfer still contain significant gaps, especially regarding financial support and administrative procedures. Specifically, small and medium-sized enterprises (SMEs), despite constituting a large proportion of the city’s startup ecosystem, face considerable difficulties accessing public budget support programs. This has constrained their capacity for innovation and growth amid global competition. Compared with regional cities such as Singapore and Bangkok, HCMC’s innovation policies still lack the flexibility and special incentives needed to attract investment in high-technology sectors.
Second, human resource development must be accelerated to meet the demands of S&T application and innovation.
Although the number of S&T personnel has increased considerably, the quality and specialization of the workforce have not kept pace with development requirements in strategic fields such as microchips, artificial intelligence (AI), and biotechnology. A report from the HCMC People’s Committee (2023) indicates that the proportion of leading experts in these fields remains very low, forcing the city to rely heavily on international experts or foreign companies. Moreover, compensation policies and the working environment have not been sufficiently attractive to retain talent. For instance, under Resolution No. 27/2023/NQ-HDND, the incentive income level for S&T experts ranges from VND 30–100 million per month – lower than what is offered in regional countries with more competitive compensation packages.
Human resource development is a core strategy for effectively implementing innovation solutions. Currently, the proportion of leading experts in strategic fields such as artificial intelligence (AI) and biotechnology remains low (Dung, 2023). The city needs to strengthen cooperation with international educational organizations to improve training quality and attract experts through competitive compensation packages. The implementation of Resolution No. 27/2023/NQ-HDND on financial support for scientists must be monitored and adjusted to meet practical requirements, particularly in creating an attractive working environment to retain talent.
Third, international cooperation must be strengthened to advance science, technology, and innovation.
International cooperation is a pivotal factor in accessing advanced technologies and expanding markets for S&T products. HCMC needs to strengthen collaboration with foreign research organizations, enterprises, and governments. Partnering with international S&T centers not only helps the city access modern technologies but also creates opportunities to learn effective management models and innovation deployment approaches. For example, collaboration with major technology corporations such as Google, Microsoft, or Intel could help the city accelerate digital transformation and the application of Industry 4.0 technologies in areas such as urban management and healthcare. Additionally, the city should actively participate in regional cooperation programs, such as the ASEAN Innovation Network, to expand connections with regional innovation ecosystems. Developing multilateral cooperation projects in fields such as artificial intelligence, blockchain, and renewable energy will enable the city to leverage international resources for the development of high-technology products and services. HCMC must invest substantially in establishing and developing Innovation and Research Centers (IICs) to create a solid foundation for R&D and innovation activities. The HCMC Innovation and Startup Center (Sihub) has achieved notable success, but it needs to expand in scale and enhance its capacity to meet the development demands of the new phase. According to a Sihub report (2023), the city supported over 6,000 startups and innovative enterprises during the 2021–2023 period. However, the commercialization rate for technology products remains low, reaching only approximately 30%. The Institute of Advanced Technology and Innovation (IIC), expected to become operational in 2025, is anticipated to emerge as a leading interdisciplinary research center in the region. Tasked with connecting universities, research institutes, and enterprises, the IIC will serve as a bridge to promote technology transfer and the practical application of research outcomes. Furthermore, the city needs to establish additional advanced laboratories and co-working spaces to support technology startups and research teams.
HCMC stands before a major opportunity to become a leading regional S&T and innovation hub, but achieving this goal requires the synchronized implementation of feasible solutions with strong commitment from all stakeholders. Refining institutional mechanisms and policies is a prerequisite. According to the HCMC People’s Committee (2023), existing policies are insufficiently flexible to promote innovation, necessitating improvements oriented toward tax incentives for technology enterprises, the reduction of administrative procedures, and greater transparency in investment fund management. Referencing models from cities such as Singapore – where advanced technology development policies have been effectively implemented – is a necessary approach to building a favorable legal environment. Additionally, the deployment of innovation support funds such as the S&T Development Fund needs to be expanded to ensure financing for enterprises across all stages, from research and development through to product commercialization.
International cooperation serves as a lever to accelerate digital transformation and high-technology application. The city should proactively participate in regional cooperation programs such as the ASEAN Innovation Network to connect regional innovation ecosystems. At the same time, collaboration with major corporations such as Microsoft and Intel can drive advanced technology transfer projects, thereby expanding markets and enhancing competitiveness for local technology enterprises (Nguyen & Tran, 2023). Policies to attract foreign investment must be aligned with commitments to support domestic enterprises in order to create a cohesive innovation ecosystem.
Fourth, the application of research outcomes to advance S&T and innovation must be strengthened.
Another noteworthy issue is the effectiveness of transferring and applying research outcomes to practice. Although research institutes and universities in the city have achieved considerable research accomplishments, the majority of these results have not been effectively commercialized or have not aligned with market demands. According to the HCMC Department of Science and Technology (2023), the rate of successful technology transfer reached only approximately 20% during the 2021–2023 period. This reflects a lack of integration between research institutes, universities, and enterprises, particularly in key industries such as manufacturing and processing, and information technology.
The challenges surrounding institutional mechanisms and policies, human resources, and the application of research outcomes not only pose difficulties but also present opportunities for HCMC to reshape its S&T and innovation development strategy. Necessary solutions include bold reform of the policy framework to incentivize innovation, improving both the quality and quantity of human resources, and fostering stronger linkages between research and the market. Effectively addressing these issues will help the city not only consolidate its domestic standing but also emerge as a leading innovation center in the region.
Establishing research and innovation centers represents a strategic step toward realizing these objectives. The HCMC Innovation and Startup Center (Sihub) needs to be upgraded to provide deeper support for startups through mentorship programs and enhanced technical infrastructure (Sihub, 2023). The Institute of Advanced Technology and Innovation (IIC), expected to become operational in 2025, must be rapidly implemented to serve as a bridge among research institutes, enterprises, and international partners. To achieve high effectiveness, the city needs to establish specific evaluation and monitoring criteria for research and technology transfer projects, ensuring that resources are utilized optimally. The construction of additional advanced laboratories and co-working spaces will also provide the foundation for driving innovation activities and creating favorable conditions for research teams and technology startups to thrive.
These solutions must be implemented in a synchronized manner with coordination among the government, enterprises, and research organizations. Specifically, the city needs to establish a high-level coordinating council to ensure that policies and resources are allocated appropriately, while organizing regular dialogue forums among stakeholders to promptly address emerging issues. Only through the consistent application of these solutions can HCMC build a comprehensive S&T and innovation ecosystem, realizing its aspiration to become a leading regional S&T center.
HCMC, with its potential and role as the nation’s foremost socio-economic center, must focus on the synchronized implementation of strategic solutions to develop S&T and innovation, positioning the city as the country’s driving force in this domain. First and foremost, institutional mechanisms and policies supporting S&T investment and development must be refined, with a focus on spearhead fields such as artificial intelligence (AI), biotechnology, and Industry 4.0. Preferential tax policies, financial support from funds such as the S&T Development Fund, along with greater transparency in administrative procedures, will create momentum to attract both domestic and foreign investment. In parallel, the city must develop high-quality human resources through in-house training programs combined with international cooperation, while implementing competitive compensation policies to attract leading experts. Strengthening international cooperation is also a critical solution, enabling the city to access advanced technologies and learn modern management models from global S&T centers. Furthermore, investing in the construction of research and innovation centers, such as the Institute of Advanced Technology and Innovation, together with startup support spaces, will lay the groundwork for a comprehensive innovation ecosystem. To achieve effectiveness, these solutions must be implemented in a synchronized fashion, with close coordination among the government, enterprises, and the research community. This is the key to HCMC’s sustainable development and its emergence as a growth engine for the nation.
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.
News and photos: Author, UEH Department of Communications and Partnerships
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