Shift accelerates with innovation and tech

Vietnam is well positioned to become a regional innovation hub and a strategic destination for global tech investment in Asia-Pacific.

- By Bich Ngoc

According to Deputy Prime Minister Nguyen Van Thang, there has been a strong recovery in investment flows into Vietnam’s technology and innovation ecosystem.

“Strategic sectors such as AI, fintech, data, digital infrastructure, and green technology continue to attract strong interest from international investment funds and investors. This demonstrates that Vietnam is steadily shifting from being a manufacturing hub to becoming an innovation and tech development partner in global value chains,” DPM Thang said at the Vietnam Innovation and Private Capital Summit (VIPC) held last week in Ho Chi Minh City.

The forum was jointly organised by the National Innovation Centre under the Ministry of Finance, in collaboration with the Vietnam Private Capital Agency and Do Ventures.

According to the Ministry of Finance, Vietnam currently ranks 44th globally in the Global Innovation Index, placing it among the leading middle-income economies.

Total private investment in the tech sector last year reached approximately $4.5 billion across 149 deals, marking a significant increase compared to the previous year. Of this, private equity investment reached a record high of around $4 billion, while venture capital investment grew by approximately 28 per cent.

“Vietnam is strongly advancing institutional reforms in sci-tech, innovation, and private sector development. It is also finalising a series of policy frameworks for strategic sectors, digital finance and innovation, including the Law on Science, Technology, and Innovation, the Law on Digital Technology Industry, and the Law on Artificial Intelligence,” DPM Thang said.