Connect with us

Project

Technology primed as next modern growth driver

Published

3 weeks ago

on

Obstacles in funding sci-tech projects could soon be resolved to release resources and create momentum for the country’s economic growth.

Technology primed as next modern growth driver
Ministries are working to draft rules for spending in technology, innovation, and the digital transition, Photo: Shutterstock

At last week’s conference on science, technology, innovation, and human resources, Minister of Information and Communications Nguyen Manh Hung said that growth by traditional drivers had gradually reached its limit. Vietnam’s economy can grow up to 7 per cent by traditional drivers, but finding new drivers is essential for the higher growth rate, which can only come from these areas.

“Agriculture has helped Vietnam escape poverty. Foreign investment, and industrial development have enabled the country to become an upper middle-income country. To become a high-income country, we must rely on science and technology, innovation, and digital transformation. These three factors are the main drivers to develop modern productive forces, perfect production relations, innovate national governance methods, develop the socioeconomic landscape and become rich,” he said.

According to Hung, science and technology would contribute to the country’s economic growth if research outcomes could be commercialised. So these outcomes, funded by state budget, should be owned by research institutions.

“To stimulate the creativity, scientists and engineers should enjoy about 30-50 per cent of commercialised gains, while the state can benefit from taxes and jobs after research results commercialised and generating revenue and profit,” he said.

Hung proposed that the state accept risks in research, along with risk management solutions, such as budget allocation and management of research results by stage, classification, and risk levels. “We can change awareness and the way of doing very soon, right in the first half of this year, by amending the Law on Science and Technology and other relevant legislation,” he said.

Minister of Science and Technology Huynh Thanh Dat emphasised removing difficulties in sci-tech and innovation activities to submit in the draft decree to the National Assembly for approval at this month’s meeting, including piloting policies related to assets formed from research using the state budget, and policies for developing the market.

“The law is being revised to institutionalise the Party’s policies. Moreover, a decree including content on innovation and creative startups is being built to create a legal basis for the establishment and strong development of innovation centres and organisations, supporting innovation and creative startups in application, technology transfer, and innovation. These will be submitted to the government in the first quarter,” Dat said.

The Ministry of Information and Communications has proposed the appointment of contractors and shortening the process of digital transformation projects.

“The state should assign tasks and place orders to master strategic technologies and large digital transformation projects, increase the budget for hiring IT services, develop a cloud computing centre exclusively to support such a transformation at authorities, build a high-performance AI computing centre, and fund 30 per cent of the first semiconductor factory in Vietnam,” Hung said.

Minister of Finance Nguyen Van Thang proposed to amend the Law on Science and Technology and stipulate that the Ministry of Finance (MoF) allocates enough state budget for this.

“Based on the total assigned budget, the Ministry of Science and Technology (MoST) and related authorities at all levels develop a plan for budget allocation, management, use, and expense, ensuring compliance with the goals and orientations for this development,” Thang said. “We should strengthen decentralisation, autonomy and responsibility to research organisations in reviewing, approving and using the state budget for sci-tech and innovation.”

The MoF is working with the MoST in drafting a resolution of the National Assembly on pilot policies for related spending. The MoF is reviewing and proposing amendments to the Law on the State Budget that will collect comments and proposals of relevant ministries and agencies on financial mobilisation and the budget.

The MoF is submitting revised documents for the Law on Corporate Income Tax, and Personal Income Tax, including proposals for corporate income tax incentives for investment in small and medium-sized technical and service facilities, incubators, and personal income tax incentives for high-tech employees.

“We will build tax sandboxes, allowing testing of new, more flexible tax policies to support development, regularly reviewing, updating, and adjusting tax policies to suit the development of sci-tech and digital transformation,” Minister Thang said.

According to the MoF, the state budget allocation for 2021-2025 for innovation and the digital transition is allocated with integrated funding from different sources. However, spending in this area is still modest, at 1.39 per cent in 2023, 1.97 per cent in 2024, and expected to reach 2 per cent this year.

Moreover, the current state budget spending on sci-tech is noted in many laws, including the Law on Science and Technology, the Law on the State Budget, the Law on Public Investment. The regulations on spending are also inconsistent, causing difficulties in arranging and allocating capital sources, and settling projects.

Marc Woo, CEO, Google Vietnam

I highly appreciate the ambitious science and technology goals of the Vietnamese government. For us, Vietnam is an important partner, and AI has been developing very well here. However, for rapid growth, we need a high-skilled workforce, talent, and businesses that are proficient in AI technology.

Specifically, there are four promising lands for cooperation. The first space is AI models. Google has spent plenty of resources building large language models, which need to be trained by data sources, especially diverse and high-qualified Vietnamese people.

To develop the workforce, we will continue to provide scholarships and AI skills training programmes for individuals. Students and teachers need AI-supported learning and teaching tools. We are willing to provide free access to Google Works, Google Space, and Google Classroom, which will support young people to use AI at an early age.

We welcome and highlight that the government plays an important and pivotal role in supporting and development of AI applications. Based on Google’s practical experience working in many countries, we positively acknowledge that the government is building an open national dataset and allowing businesses to build useful and responsible AI applications based on this dataset.

We can exchange and share experience with the Vietnamese government. If working together, we will achieve many good results for Vietnam, and enable it to enter a new era of national development.

Suk Ji-won, general director Samsung R&D Centre Vietnam

Samsung is interested in training science and technology talents in Vietnam. We have awarded 875 scholarships to talented IT students, provided programming courses for more than 25,000 students, and internships at the centre for about 2,400 Vietnamese students. Samsung has sponsored labs and provided more than 700 computers to universities to improve the IT training environment, and sponsored programming competitions for students.

The Samsung Innovation Campus programme offers free courses on the Internet of Things, AI, big data, and coding and programming. Since 2019, more than 12,000 students have participated. We will do the utmost to train high-quality personnel by expanding and specialising cooperation initiatives with universities in talent training activities.

I suggest the Vietnamese government builds a high-skilled and professional workforce in AI and semiconductors. The government should issue incentive policies to recruit foreign managers and experts for training and nurturing talents such as visa support policies or tax exemptions, as well as housing, healthcare, and education support policies for families of foreign experts. These will be essential conditions for them to participate in training talents for a long-term in Vietnam.

I hope that these policies will also be applied to excellent workers selected by Vietnamese authorities and organisations, and also experts sent by enterprises to Vietnam to work on high-tech projects.

In addition, the country also needs to improve the investment environment to encourage foreign-invested enterprises investing in high-tech industries such as AI and semiconductors.

I believe that if the government continues to improve the investment environment by simplifying licensing procedures and providing preferential policies for foreign-invested enterprises in high-tech projects, the country will become a hub for the high-tech industry.

Vu Manh Cuong, director, Nvidia Vietnam

Vietnam will need hundreds of thousands of AI engineers within the next three years as it is facing a shortage of personnel at all levels and in various fields such as data science and AI operations. When AI is applied to specialised fields like biology, medicine, banking, and telecommunications, Vietnam will need even more scientists and engineers mastering AI technologies.

Nvidia launched the Deep Learning Institute, offering free curricula, tools, and cloud-based graphic processing resources for universities to train students in six components, including machine learning, data science, and large language models.

We are working with many local universities and businesses, such as Hanoi University of Science and Technology, Vietnam National University, Danang University, Duy Tan University, Posts and Telecommunications Institute of Technology, and FPT University to train students.

Nvidia can train a large number of personnel and the programme covers three areas: upscaling and reskilling IT workers in public agencies, businesses, and startups; training students; and providing high-quality training for top talents.

However, the government should support more new schemes, in addition to orders from large companies like Viettel and FPT, for AI training and support for instructors. Funding is necessary to train large numbers of people.

Related Topics:

Project

Real estate capital heading into suburban areas

Published

9 hours ago

on

March 12, 2025

By

The shortage of affordable apartments in Ho Chi Minh City has led buyers with tight budgets to seek properties in neighbouring markets.

The real estate market in Ho Chi Minh City is facing a scarcity of land, while the cost of project development is continuing to rise. This has forced investors to carefully consider which product segments to focus on to ensure profits.

Real estate capital heading into suburban areas
Photo: baodautu.vn

Investors with land in strategic locations close to the city centre are prioritising the development of mid-range and high-end products to optimise financial outcomes.

As a result, buyers seeking affordable options are being forced to look elsewhere.

“The shortage of affordable apartments in Ho Chi Minh City has led buyers with limited finances to seek items in neighbourhoods like Binh Duong, Dong Nai, and Long An. In these areas, apartment prices hover at around $1,200-$1,600 per square metre, creating strong demand,” said Giang Huynh, head of research and S22M at Savills Ho Chi Minh City.

From another perspective, the average rental yield for apartments in Binh Duong is currently 4.7 per cent, well above the 3.7 per cent yield in Hanoi and 3.6 per cent in Ho Chi Minh City.

Dinh Minh Tuan, southern regional director of real estate trading platform Batdongsan.com.vn, shared that the high rental yield in Binh Duong is largely due to reasonably priced luxury apartments, with high rental prices and stable occupancy rates.

On average, a luxury apartment in Binh Duong can be rented for $400-$480 per month for a one-bedroom unit, and from $600-$800 for a two- to three-bedroom unit.

Meanwhile, in Ho Chi Minh City or Hanoi, apartments in the $1,800-$2,000 per square metre range can only be rented for around $280-$480 per month, depending on the number of bedrooms, not to mention the increasingly stiff competition in enticing tenants.

In response to the strong capital shift, real estate firms in Ho Chi Minh City’s suburban areas are accelerating legal procedures to launch new projects.

This trend reflects the investors’ agility and creates attractive opportunities for both homebuyers and investors in 2025.

Accordingly, Kim Oanh Group plans to launch a 27-hectare urban area in New Binh Duong City in the first quarter of 2025.

This will be the first project the company has collaborated on with Surbana Jurong, a partner from Singapore, under EDGE green standards.

The project features 1,656 townhouses and terraced houses, and 1,666 social apartments, priced from $28,000 per unit.

Major developer Phat Dat Real Estate Development Corporation plans to launch two major projects, Thuan An 1 and 2 in Binh Duong province, covering a total area of 4.46 ha.

The 1.8ha Thuan An 1 will provide 2,604 apartments and shophouses, while the 2.66ha Thuan An 2 will have 3,270 apartments and 16 townhouses. These projects are located on key roads.

Simultaneously, southern developer An Gia Group plans the launch of 3,000 apartments at The Gio Riverside and 76 shophouses in Di An city.

The three-hectare project, located on the provincial route DT16, offers nicely designed apartments with one to two bedrooms.

Regarding opportunities for homeownership, Phan Cong Chanh, an expert in real estate investment, noted that owning a home requires solid knowledge and time to raise financial resources.

For young people, buying a home immediately is a challenge due to limited finances.

Buyers can explore financial support packages and use leverage to shorten the time needed to purchase real estate. This needs to be accompanied by a reasonable plan to ensure long-term affordability.

“Overall, owning a home is not just a purchasing decision; it also requires a smart financial strategy. Whether choosing to buy immediately, rent, or invest in real estate in any segment, individuals must consider their financial conditions and personal plans carefully,” said Chanh.

Continue Reading

Project

VinFast looks to long term with operational roadmap

Published

11 hours ago

on

March 12, 2025

By

Carmaker VinFast aims to become a powerhouse in the electric vehicle market as it grapples with tougher competition abroad.

VinFast looks to long term with operational roadmap
The company wants to double EV sales when compared to last year’s figure

Potential investment from JTA Investment through an MoU between Vingroup and Qatar Investment Fund, which was unveiled last week, aligns perfectly with VinFast’s ambitious vision of scaling up production and sales in a competitive international market, the company said.

JTA Investment is exploring a potential equity investment of at least $1 billion in VinFast, the Nasdaq-listed EV manufacturer, as well as a strategic partnership aimed at supporting the company’s global expansion and technological development.

“This collaboration will unlock significant opportunities for Vingroup and its subsidiaries to drive technological, infrastructural, and sustainable economic advancement in Vietnam, while establishing a foundation for international expansion,” said Le Thi Thu Thuy, vice chairwoman of Vingroup.

Global electric vehicle (EV) competition is expected to get tougher as the demand for EVs is projected to increase further this year, but the outlook is being hindered by uncertainty surrounding tariffs and policy changes.

In 2025, S&P Global Mobility projects that 15.1 million battery EVs will be sold worldwide, a 30 per cent increase on last year. It is anticipated that 16.7 per cent of the light vehicle market will be made up of battery-based EVs.

S&P also reported that major unknowns await Chinese manufacturers BYD and Tesla in 2025 due to assumed changes to the US Inflation Reduction Act.

Last year, VinFast stated that it was delaying the opening of its North Carolina factory until 2028, which will allow the company to optimise its capital allocation and manage short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations.

The company is expanding its strategy in India, Indonesia, and the Philippines, where EV infrastructure is developing rapidly but competition from domestic brands is limited. Experts said that in order to sustain long-term growth, it needs to compete with Chinese manufacturers and prove its competitiveness beyond its home market.

VinFast is scheduled to open factories in Subang, West Java and in the southern Indian state of Tamil Nadu this year. The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market.

On February 28, VinFast and Motech Automotive Service Centres, through its franchisor and operator in the Philippines, signed an MoU on expanding the service network for VinFast’s EVs in the market. The agreement aims to meet the increasing demand for EVs among Filipino consumers, while affirming VinFast’s long-term commitment and determination to utilise green transformation across the region.

VinFast and Motech will collaborate to accredit over 60 Motech service workshops as approved VinFast service centres. In the Philippines, these service centres will have the authority to handle VinFast EV maintenance, warranties, and repairs. This year, VinFast intends to open over 100 similar service workshops throughout the Philippines.

In 2025, the company has set the ambitious target of doubling sales to around 200,000 EV globally after announcing impressive results in 2024, with 97,300 EVs sold globally, of which about 87,000 vehicles came from the domestic market.

Continue Reading

Project

M&As in crucial sectors poised for rapid expansion

Published

13 hours ago

on

March 12, 2025

By

Following the downturn, Vietnam’s merger and acquisition landscape is set to gain momentum in 2025, driven by spearhead industries from technology to manufacturing. Julien Curtet, partner of Index Partners, shared with VIR’s Thanh Van his insights into the overview and the prospect of the market.

How do you see Vietnam’s merger and acquisition (M&A) market affected by global market volatility?

M&As in crucial sectors poised for rapid expansion
Julien Curtet, partner of Index Partners

In 2024, global M&A activity rebounded, reaching approximately $3.5 trillion (a 15 per cent increase from 2023) with around 7,500 deals above $30 million. Corporate acquisitions rose by 12 per cent, and financial investor activity surged by 29 per cent, driven by private equity amid easing interest rates. Key sectors included technology, energy, financial services, and telecom.

Vietnam mirrored global trends with notable M&A activity in technology, energy, and industrial sectors, supported by a resilient macro and rising foreign investment.

In 2024, Vietnam’s M&A market experienced a downturn in transaction value, influenced by global economic uncertainties stemming from geopolitical tensions and currency fluctuations. However, deal volume reached around 160 transactions in the second half of 2024, marking a 25 per cent rise from the first half of 2024 and a 32 per cent jump from the second half of 2023, signalling a strong recovery trend and positive momentum for future growth. Some key deals in the second half of 2024 were Masan’s acquisition of an additional 7.1 per cent stake of VinCommerce from SK Group for $200 million, KIDO’s acquisition of Hung Vuong, Nvidia’s acquisition of VinBrain, and SK Group’s $300 million acquisition of Iscvina Manufacturing.

Mid-cap deals up to $25 million dominated Vietnam’s M&A market, accounting for just over half of total deal volume despite a 28 per cent drop in total transaction value. Mid-size transactions in the second half of the year included ADA’s acquisition of Customore and Elan’s $8.89 million acquisition of TMC Vietnam.

Could you shed light on some key drivers for the Vietnamese market in 2025 and beyond?

In 2025, it is set for strong growth, driven by key sectors such as infrastructure, technology, consumer, and manufacturing. Infrastructure will see a surge in investment, particularly in transportation and logistics, supported by government initiatives.

The technology sector is poised for rapid expansion, fuelled by favourable policies and accelerating digital transformation. Consumer spending is expected to rebound from a low base, signalling a recovery in the consumer sector.

Meanwhile, the manufacturing sector, which contributed over one-quarter of GDP in 2024, is projected to grow by 10 per cent in output, supported by new industrial zones and increased foreign investment.

The market is set to accelerate in the second half of 2025, fuelled by stable global interest rates and rising investor confidence.

Vietnam’s strong economic momentum, pro-investment policies, and booming sectors like technology, manufacturing, infrastructure, and recovery of consumer will drive deal activity, cementing its status as a key M&A hub in Southeast Asia.

How do foreign dealmakers approach strategies amidst global economic uncertainty, especially tariffs and new US policy?

Foreign dealmakers are reshaping their M&A strategies. Despite the challenges, Vietnam remains a key destination for cross-border investment, driven by its rapidly expanding technology, consumer, and manufacturing sectors.

Vietnam is rapidly advancing its technology sector, emerging as a significant player in the global digital landscape. Its commitment to technological innovation is evident through key partnerships, such as the collaboration with Nvidia to establish AI research and data centres in the country.

To further entice high-tech investments, the government offers substantial incentives, including up to four years of tax exemptions and a 50 per cent tax reduction for the subsequent nine years, as well as financial support from national sci-tech development funds.

Additionally, Vietnam’s consumer market is expected to recover in 2025, fuelled by a rising population, and increasing disposable incomes, boosting demand for goods and services. With consumer confidence rebounding and spending accelerating across sectors, Vietnam’s consumer market is regaining momentum as a vital driver of economic growth.

Vietnam is emerging as a manufacturing and logistics hub, attracting foreign investments due to its competitive labour costs (20–50 per cent lower than regional peers) and a 9.8 per cent increase in manufacturing output in 2024. An “anything but China” strategy is driving multinationals to shift production to Vietnam.

The country is also benefiting from major infrastructure projects, including the Long Thanh International Airport and deep-sea ports in Haiphong, are strengthening its logistics position, while expanding industrial areas and cross-border e-commerce fuel growth in both sectors.

Continue Reading

Trending