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Vietnamese government outlines ambitions for development of Domestic Tech Unicorns

  • Aug 23, 2019

The Vietnamese government has set the goal of having at least 5 domestic technology firms worth USD 1 billion by 2025, and at least 10 of these tech “unicorns” by 2030, as outlined by a draft announced by the Ministry of Planning and Investment.

The draft means that the total social investment to be put into research and development is anticipated to account for around 1.5% of Vietnam’s GDP by 2025. Should the draft be followed through, it would put Vietnam amongst the top 30 countries in the world in terms of patents in the prioritised technology sectors, according to a report by ViệtNam News.

The Vietnamese government also hopes that by 2025 there will be 5 firms exporting services and products that utilise Industry 4.0 technologies, such as factories in which machines are augmented with wireless connectivity and sensors, or capitalise on modern technology offerings, such as 5G, Data Analysis and AI.

In its mission to have Vietnam enter the top 30 countries in the Global Innovation Index, the government aims to increase efforts in technology transformation in the areas of manufacturing, education, information technology, utilities, finance, among others.

The draft produced by the Ministry of Planning and Investment includes two plans. These outline the strategy for achieving the governments goals and include the innovating growth model to National Steering Committee to focus on Industry 4.0 development, reinforced by the change of name of the committee to “National Steering Committee for growth and Industry 4.0.”

This endeavour is being supported by the Minister of Finance, who has been assigned to introduce Industry 4.0 to tax policy implementation and management.

A joint report by Cento Ventures and ESP Capital has revealed that Vietnam start-ups have raised USD 246 million through 58 deals in the first half of 2019 alone, and the amount of invested capital in the local market has multiplied by 6 since 2017.

Nguyen Xuan Phuc, the Prime Minister of Vietnam, approved a national project, entitled the Project on Promoting Sharing Economic Model, with the intended goal of encouraging innovation, the application of digital technology and the development of the digital economy in Vietnam.

The project will also focus on ensuing an equal business environment among enterprises, whilst also ensuring the rights of those who participate in the sharing economic model, which will include service users, platform providers, and service providers, as described in a report by Nhan Dan.

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