Innovation and creation to improve competitiveness for businesses

Remarks at the Workshop on Announcing Productivity and Competitiveness Report of Vietnamese Enterprises published by Ministry of Planning and Investment, Vietnam Academy of Social Sciences and United Nations Development Program (UNDP) In Hanoi, many experts believe that innovation will help Vietnamese businesses improve their competitiveness.

According to Prof. Dr. Dang Nguyen Anh, Vice President of Vietnam Academy of Social Sciences, with per capita income expected to reach 3,000 USD by 2020, according to the methodology of the World Economic Forum, Vietnam has passed The growth segment is mainly based on an increase in inputs that begin to move into a growth phase mainly based on efficiency and productivity.

The drivers of growth that have helped Vietnam achieve high results in the period since the renovation till now, such as mineral resources, cheap labor, etc, are approaching the limit ceiling. Therefore, Vietnam needs to transform its growth model towards relying more on increasing productivity, innovation and competitiveness of businesses.

According to the report on productivity and competitiveness of Vietnamese enterprises, the index of industrial competitiveness, manufacturing export and Vietnam’s current comparative advantage (RCA) in recent years has been continuous improved compared to other countries in the region.

The report also recommends that Vietnam should prioritize improving the productivity and competitiveness of domestic private enterprises in the next stage of development as an integral part of public investment reforms, State-owned enterprises and policies to attract and use foreign direct investment (FDI).

Specifically, Vietnam needs to shift its focus to attract FDI from quantity to quality and increase the linkage between domestic private enterprises and FDI enterprises; at the same time, developing ecosystems, moving to higher levels in local and global value chains.

According to Ms. Caitlin Wiesen, UNDP Resident Representative in Viet Nam, improving the productivity of enterprises in manufacturing, processing and innovation industries is the key so that Vietnam can avoid the middle income trap and advance to achieve inclusive growth. The Government should facilitate the testing and application of new innovations for private businesses so that they can identify bottlenecks that inhibit the development of each sub-sector and take actions. specifically to support this transition.

Productivity and Quality Office