Removing 4 Technology Bottlenecks: The Key to Achieving Double-Digit Business Growth
To achieve an average growth target of 10% during the 2026-2030 period, Vietnam can no longer rely solely on expanding investment capital or cheap labor. Instead, it must create breakthroughs in productivity and business competitiveness. This assessment was presented at a recent specialized seminar titled "Solutions to Improve Labor Productivity and Competitiveness of Vietnamese Enterprises."
Economic Context and Objectives
The government has set a target of 10% average annual GDP growth for the 2026-2030 period - an ambitious yet challenging goal. According to economic experts, the growth model based on investment capital and cheap labor is gradually revealing limitations and is no longer suitable in the current context.
Deputy Minister of Planning and Investment Tran Quoc Phuong stated: "We need to transition from an extensive growth model to an intensive one, focusing on improving labor productivity and quality of growth. This is the only path for Vietnam to compete fairly with countries in the region and worldwide."
4 Core Bottlenecks to Address
To realize the double-digit growth target, Vietnamese enterprises need to focus on resolving 4 main bottlenecks:
1. Low Labor Productivity
Vietnam's labor productivity remains among the lowest in the ASEAN region, equivalent to only about 7.5% of Singapore's, 14.6% of Malaysia's, and 34.6% of Thailand's. The main reasons are limited technology levels, workforce skills, and business management capabilities.
According to the General Statistics Office, Vietnam's labor productivity in 2022 was estimated at $4.85/hour, significantly lower than the ASEAN average ($9.45/hour) and the global average ($48.3/hour).
2. Limitations in Technology and Innovation
Vietnamese enterprises, especially small and medium-sized ones, still heavily rely on imported technology and lack research and development capabilities. Vietnam's R&D expenditure accounts for only about 0.54% of GDP, much lower than the world average (1.7%) and developed countries (2.5-3%).
Economic expert Le Dang Doanh commented: "The lack of technology and innovation prevents Vietnamese enterprises from creating high-value-added products, leading to low profits and difficulty competing in international markets."
3. Incomplete Business Ecosystem
The business support ecosystem in Vietnam still has many shortcomings, from capital access and market information to specialized support services. Only about 20% of enterprises can access preferential capital sources, while high-quality consulting and training services remain scarce and expensive.
Ms. Nguyen Thu Phuong, Chairwoman of the Vietnam Association of Small and Medium Enterprises, stated: "We need to build a comprehensive business ecosystem where enterprises can easily connect, share resources, and develop together."
4. Weak Corporate Governance
Many Vietnamese enterprises, particularly small and private ones, still practice family-style governance, lacking professionalism and transparency. This leads to low operational efficiency and difficulty achieving sustainable development.
According to a World Bank survey, only about 30% of Vietnamese enterprises have modern, transparent, and effective governance systems. This rate is much lower than in regional countries like Malaysia (65%), Singapore (80%), and Thailand (70%).
Breakthrough Solutions for Each Bottleneck
To address the four bottlenecks mentioned above, experts have proposed a coordinated set of solutions:
| Bottleneck | Breakthrough Solutions |
|---|---|
| Labor Productivity | - Invest in high-quality skills training - Apply digital technology to production - Improve labor management and production organization |
| Technology and Innovation | - Increase investment in R&D - Promote collaboration between enterprises and research institutes - Develop policies to encourage technology transfer |
| Business Ecosystem | - Improve the legal framework to support enterprises - Develop venture capital funds - Build enterprise connection networks |
| Corporate Governance | - Train professional management teams - Apply international governance standards - Enhance transparency in corporate governance |
The Role of Government and Enterprises
To achieve the double-digit growth target, coordination between the government and enterprises is crucial. The government needs to create a favorable business environment, improve institutions, and support policies, while enterprises need to proactively innovate and enhance competitiveness.
Minister of Science and Technology Huynh Thanh Dat emphasized: "We need to build a national innovation ecosystem where enterprises are at the center, science and technology are the driving forces, and policies are the catalyst. Only in this way can Vietnamese enterprises create breakthroughs in productivity and competitiveness."
Outlook and Conclusion
Despite numerous challenges, experts remain optimistic about Vietnam's growth prospects if the bottlenecks are effectively addressed. With a young population, large domestic market, and strategic geographical location, Vietnam has many advantages to create a sustainable and efficient growth model.
Mr. Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), stated: "To achieve the double-digit growth target, Vietnamese enterprises need to shift from a small-scale business mindset to a digital economy mindset, from simple production to value creation, and from competing on low prices to competing on quality and brand."
Addressing the four bottlenecks mentioned above is not only an urgent requirement to realize the growth target but also a prerequisite for Vietnam to develop sustainably, enhance its international position, and improve people's living standards.