Vietnam has worked out an ambitious economic transformation, propelled by a national blueprint that prioritises sci-tech, innovation and digital transformation.

At the Innovation Centre 4.0 within the Eastern International University in Binh Duong province.

With its National Master Plan for 2021-2030 and the Politburo's Resolution calling for breakthroughs in these areas, the country is pooling all available resources to cement its place as a global hub for hi-tech investment and growth.

Vietnam’s innovation ecosystem is booming, particularly in artificial intelligence (AI), where generative AI has become a magnet for global investors, said Deputy Prime Minister Nguyen Chi Dung.

According to the recently-released Vietnam Innovation and Private Capital Investment Report 2025, investment in innovation hit a record 2.3 billion USD with 141 deals in 2024.

Larger transactions, valued between 100 million USD and 300 million USD, surged 2.7 times year-on-year, while smaller deals under 500,000 USD jumped 73%. Mergers and acquisitions in the sector neared 1.7 billion USD.

Vietnam has emerged as a “hotspot” for next-generation technology investment. AI startups saw funding multiply eightfold in 2024 to 80 million USD, while investment in agritech leapt nine-fold, driven by demand for food security and digital supply chain resilience.

Concurrently, the country is undergoing a massive infrastructure investment cycle, with nearly 500 billion USD in foreign direct investment (FDI) flowing into projects by global giants like Samsung, Intel, Lego, and Foxconn.

These are repositioning Vietnam from a low-cost manufacturing base to a critical node in global supply chains.

Ben Sheridan, Global Director of Financial Investments at BCG, said Vietnam is entering a transformative phase with rare favourable conditions: real GDP growth hit 7.1% in 2024, outpacing much of Asia while inflation remains low and long-term growth opportunities abound.

By 2035, Vietnam's economy is projected to reach 1.1 trillion USD, 2.5 times its current size. The digital economy alone, on track to contribute 18.3% of GDP in 2025, is targeted to hit 35% by 2030.

Dung stressed the need to reassess the role of innovation funds and private capital in building Vietnam’s innovation ecosystem. These funds not only provide vital early-stage capital but also catalyse the private sector's broader engagement and enhance the scale and impact of investment.

Do Tien Thinh, Deputy Director of the National Innovation Centre (NIC), revealed that Vietnam draws over 500 million USD annually in venture capital for startups.

A crucial policy lever is the supply of state-backed seed funding, often less than 5% of total capital, which unlocks larger private investments.

To further scale innovation, Thinh called on ministries and agencies to roll out supportive policies such as regulatory reform, targeted tax incentives, direct grants, and infrastructure development to encourage R&D, business incubation, and digital transformation.

Dung echoed this call, pressing venture funds, startups, and innovation-driven firms to propose policies that foster an open environment for investment in hi-tech and strategic sectors.

Events such as the Vietnam Innovation and Private Capital Summit 2025 will serve as key platforms for dialogue and partnership-building, with investors encouraged to share strategies and build collaboration mechanisms.

The Government agencies, research institutes, universities, and innovation centres are also expected to drive a vibrant and inclusive innovation landscape.

The Government is ready, Dung declared, promising to clear every hurdle for stakeholders to advance innovation.

Key targets for sci-tech, innovation and national digital transformation by 2030

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