As the global economic landscape changes rapidly, innovation has become the core driving force of national competition. Vietnam, an emerging economy in Southeast Asia, is moving towards a new era of innovation-driven development with firm steps. This paper will explore Vietnam’s innovation strategy in depth and focus on the key role of industrial parks in this grand blueprint.

In recent years, the Vietnamese government has attached great importance to innovation and development, and regards it as a strategic protagonist in the country’s modernization process. In 2011, Vietnam completed the “2011-2020 Science and Technology Development Strategy”, which systematically proposed the goal of building a national innovation system for the first time. In 2019, Vietnam further formulated the “Science and Technology Innovation Development Strategy to 2030”, which clearly proposed to build Vietnam into an innovation center in Southeast Asia.

The core elements of this strategy include:

Increase R&D investment: The goal is to increase R&D spending to 2-3% of GDP by 2030.

Cultivate innovative talents: increase efforts to cultivate scientific and technological talents and improve the quality of higher education.

Optimize the innovation environment: improve the intellectual property protection system, simplify administrative procedures, and encourage entrepreneurship and innovation.

Promote industry-university-research cooperation: Promote close cooperation among enterprises, universities and research institutions to accelerate the transformation of scientific research results.

Key development areas: Focus on strategic emerging industries such as artificial intelligence, biotechnology, and new materials.

International cooperation: Actively participate in international innovation networks and attract multinational companies to set up R&D centers in Vietnam.

1. The role of industrial parks in the national innovation system

Industrial parks play a vital role in Vietnam’s innovation ecosystem. They are the key carriers for the implementation of innovation strategies. Specifically, industrial parks play a unique role in the following aspects:

Aggregation of innovative resources:Industrial parks gather innovative elements such as enterprises, research institutions, and talents, creating an innovative “magnetic field effect”.

Industry chain collaboration:Through close cooperation with downstream enterprises, the industrial park has promoted collaborative innovation in the industrial chain and improved overall innovation efficiency.

Policy Experimental Field:Innovative policies and measures will first focus on industrial parks to accumulate experience for national promotion.

International cooperation platform:Industrial parks are important windows for attracting foreign investment and international talents, and promoting international innovation cooperation.

Entrepreneurship incubation base:Many industrial parks have set up incubators and accelerators to provide comprehensive support for small and medium-sized enterprises.

Industry-University-Research Framework:The industrial park has built an effective platform for industry-university-research cooperation through cooperation with surrounding universities and research institutions.

Technology Transfer Center:Technology transfer institutions within the park promote the commercialization of scientific research results and accelerate the diffusion of innovation.

With the in-depth implementation of Vietnam’s innovation strategy, industrial parks are gradually transforming from traditional manufacturing bases to new innovation-driven industrial parks. They are not only the gathering places of manufacturing, but also the gathering centers of innovation elements, incubators of emerging industrial parks and promoters of industrial upgrading.

In the following chapters, we will deeply analyze the innovation capabilities and supporting measures of Vietnam’s four major industrial parks, and explore their specific practices and achievements in promoting national innovation development. Through this comprehensive assessment, we aim to provide valuable references for companies that want to invest in Vietnam or seek innovative cooperation, and also provide constructive suggestions for Vietnam to further improve its innovation ecosystem.

2. Analytical methodology: Scientifically assessing the innovation capacity of Vietnam’s industrial parks

In order to comprehensively and objectively evaluate the innovation capabilities and support measures of various industrial parks in Vietnam, we have established a systematic analytical methodology. This methodology not only takes into account the internationally accepted innovation evaluation standards, but also fully combines the specific national conditions and development stage characteristics of Vietnam. Our evaluation framework mainly consists of two core parts: the innovation capability evaluation indicator system and the data collection and analysis method.

In terms of the evaluation index system for innovation capability, we have designed a comprehensive framework covering five dimensions. These five dimensions are innovation input, innovation infrastructure, innovation output, industry-university-research cooperation, and innovation environment. Innovation input mainly examines indicators such as the intensity of R&D funding, the number and proportion of high-tech enterprises, and the number and density of full-time R&D personnel. Innovation infrastructure focuses on the number of key laboratories and R&D centers, the area of ​​science and technology enterprise incubators and accelerators, and the number of public technology service platforms. Innovation output evaluates the number of invention patent applications and authorizations, the number of scientific and technological papers published, and the proportion of new product sales revenue. The industry-university-research cooperation dimension examines the number and funding of industry-university-research cooperation projects, the number of co-built R&D institutions, technology transfer and licensing, etc. The innovation environment evaluates soft environment factors such as the perfection of innovation policies, the strength of intellectual property protection, and the frequency of innovation and entrepreneurship activities.

Each indicator is assigned a specific weight to reflect its relative importance in the overall assessment. These weights are determined based on an in-depth analysis of Vietnam’s innovation development stage and expert opinions, ensuring that the assessment results accurately reflect the innovation strength and characteristics of Vietnam’s industrial parks.

In terms of data collection and analysis methods, we adopted a diversified data collection strategy and a rigorous analysis process. Data sources include official statistics, questionnaires, field visits, expert interviews and literature research. We collected relevant data from official agencies such as the General Statistics Office of Vietnam and the Ministry of Science and Technology, and designed detailed questionnaires for park management agencies, resident companies, research institutions, etc. In order to obtain first-hand information, we also conducted field visits to key parks and conducted in-depth interviews with government officials, industry experts, and corporate executives. In addition, we systematically sorted out relevant academic papers, policy documents and industry reports to ensure the comprehensiveness and authority of the data.

During the data analysis process, we first standardized the indicators of different dimensions to ensure comparability. Then, we calculated the scores of each dimension and the overall score based on the preset weights. We also used cluster analysis to identify different types of innovation parks and explore their characteristics and development patterns. Through time series analysis, we studied the dynamic trend of the park’s innovation capabilities. At the same time, we also conducted a benchmarking analysis with leading parks at home and abroad to find out the gaps and improvement directions.

To ensure the reliability of the analysis results, we have adopted a series of quality control measures, including cross-checking with multi-source data, inviting industry experts to review and evaluate the analysis results, conducting sensitivity analysis by adjusting weights and parameters, and selecting typical parks for in-depth case studies to verify the quantitative results.

In addition, we have introduced some innovative analytical tools. For example, we used social network analysis to map the innovation cooperation network inside and outside the park. Through text mining technology, we analyzed the park’s policy documents and corporate reports to extract key information. We also used the geographic information system (GIS) to visualize the spatial distribution of the park’s innovation resources.

3. Comparison of innovation capabilities of major industrial parks in Vietnam

Industrial parks in Vietnam are widely distributed, but are mainly concentrated in three major regions: the north, south, and center. Industrial parks in these regions have their own characteristics in terms of innovation capabilities, reflecting the different characteristics and strategic priorities of Vietnam’s regional economic development. We will conduct an in-depth comparative analysis of the main industrial parks in these three regions.

3.1 Industrial parks around Hanoi (such as Bac Ninh Province, Bac Giang Province, etc.)

Industrial parks around Hanoi benefit from the talent, education and policy advantages of the capital region and have performed well in certain high-tech fields. The Quy Vu Industrial Park and the Viet An Industrial Park in Bac Ninh Province have performed particularly well in electronic manufacturing and software development. These parks have attracted many multinational companies to set up R&D centers, such as Samsung and LG. The Viet Huu Industrial Park in Bac Giang Province has emerged in the fields of smart manufacturing and new materials.

Industrial parks in this region generally have a strong foundation for industry-university-research cooperation. For example, Hanoi National University has established close cooperative relations with multiple parks to jointly carry out cutting-edge technology research. In terms of innovation investment, the region’s R&D investment intensity averaged 1.8% of GDP, higher than the national average.

However, these parks still have room for improvement in terms of intellectual property protection and technology transformation efficiency. Although the number of patent applications is considerable, the proportion of high-value patents is relatively low. In addition, the innovation activities of some parks are still overly dependent on foreign-funded enterprises, and the innovation capabilities of local enterprises need to be strengthened.

3.2 Ho Chi Minh City and surrounding industrial parks (such as Binh Duong Province, Dong Nai Province, etc.)

As the engine of Vietnam’s economy, industrial parks in Ho Chi Minh City and surrounding areas are at the forefront of the country in building an innovation ecosystem. The Vietnam-Singapore Industrial Park (VSIP) in Binh Duong Province is an innovation benchmark in the region, with outstanding performance in emerging technologies such as artificial intelligence and the Internet of Things. Long Thanh Industrial Park in Dong Nai Province is unique in biotechnology and medical device innovation.

Industrial parks in this region are generally more market-oriented, and the cooperation between industry, academia and research is closer and more fruitful. For example, the technology transfer center jointly built by Ho Chi Minh City National University and several parks has effectively promoted the commercialization of scientific research results. In terms of the innovation environment, the entrepreneurial ecosystem in the region is particularly active, with the number of incubators and entrepreneurial accelerators ranking first in the country.

It is worth noting that these parks have performed well in attracting international innovative talents. Many parks have implemented flexible talent introduction policies and successfully attracted a large number of overseas Vietnamese professionals to return to start businesses in the country. However, compared with developed countries, these parks still have a gap in the construction of high-end R&D equipment and cutting-edge scientific research platforms.

3.3 Industrial parks in the central region (such as Da Nang City, Khanh Hoa Province, etc.)

Compared with the north and south, industrial parks in the central region started later, but have developed rapidly in recent years and have shown unique innovative characteristics. Da Nang High-Tech Park in Da Nang City has performed well in the fields of information technology and marine technology, successfully attracting many international IT companies to set up R&D centers. Van Phong High-Tech Park in Khanh Hoa Province has achieved remarkable results in renewable energy and environmental protection technologies.

Industrial parks in the central region generally focus on green innovation and sustainable development. For example, many parks have implemented strict environmental standards to promote enterprises to innovate in clean production and circular economy. In terms of industry-university-research cooperation, local universities such as Da Nang University have increasingly deepened cooperation with industrial parks, jointly cultivating a large number of innovative talents that meet the needs of local industries.

However, compared with the north and south, industrial parks in the central region still lag behind in terms of innovation infrastructure and high-end talent attraction. The intensity of R&D investment is relatively low, averaging only 1.2% of GDP. In addition, the industrial structure of some parks is still dominated by traditional manufacturing, and the proportion of high-tech industries needs to be improved.

In general, industrial parks in various regions of Vietnam show a trend of differentiated development in terms of innovation capabilities. Hanoi and surrounding areas have outstanding performance in certain high-tech fields with their policy and talent advantages; Ho Chi Minh City and surrounding areas have strong innovation results transformation capabilities relying on a strong market and active entrepreneurial ecosystem; although the central region started late, it is catching up rapidly in special fields such as green innovation. This regional differentiated development pattern not only reflects the resource endowments and development strategies of various parts of Vietnam, but also provides diversified choices for different types of innovation entities.

In the future, as the Vietnamese government further promotes regional coordinated development and the optimal allocation of innovation resources, we have reason to believe that these industrial parks will play a more important role in enhancing the country’s overall innovation capabilities.

4. R&D Facility Assessment

R&D facilities are one of the important indicators to measure the innovation capacity of industrial parks. In recent years, major industrial parks in Vietnam have invested heavily in the construction of R&D facilities and strived to create a world-class innovation environment. This section will comprehensively evaluate the R&D facilities of Vietnam’s industrial parks from three aspects: advanced laboratories and testing centers, incubator and accelerator facilities, and shared R&D space and equipment.

1. Advanced laboratories and testing centers

The construction of advanced laboratories and testing centers in Vietnam’s industrial parks is developing rapidly. Taking Hanoi High-Tech Park as an example, the park has a national nanotechnology laboratory equipped with advanced electron microscopes and spectral analysis instruments to provide high-precision material analysis services for park enterprises. Ho Chi Minh City High-Tech Park has established a biotechnology research and development center with a P3-level biosafety laboratory that meets international standards, playing an important role in vaccine research and development and biopharmaceuticals.

However, compared with developed countries, Vietnam’s industrial parks still lag behind in terms of quantity and scale of advanced laboratories. According to statistics, there are currently less than 10 industrial parks in the country with internationally recognized high-level laboratories. Most of the parks’ testing centers are still mainly focused on meeting basic quality control needs, making it difficult to support cutting-edge technology research and development. In addition, the operating efficiency and openness of the laboratories need to be improved, and the utilization rate of some high-end equipment is less than 50%.

2. Incubator and accelerator facilities

Incubators and accelerators are important platforms for fostering innovation and entrepreneurship. The Vietnamese government attaches great importance to this field and has introduced a series of supporting policies. By 2023, there will be more than 100 incubators and more than 50 accelerators registered in industrial parks across the country. Among them, the Hanoi HNTP Technology Incubator and the Ho Chi Minh City SIHUB Accelerator are particularly outstanding, not only providing office space and infrastructure, but also providing a full range of services such as financing docking and market promotion for entrepreneurial teams.

It is worth mentioning that incubators and accelerators in Vietnam’s industrial parks are developing towards specialization and internationalization. For example, the Marine Technology Incubator in Da Nang High-Tech Zone focuses on cultivating entrepreneurial projects in the fields of marine biotechnology and marine renewable energy. The VSIP Industrial Park in Binh Duong Province cooperates with the Singapore Technology Business Incubator to introduce internationally advanced incubation models.

However, challenges still exist. Many incubators and accelerators have limited service capabilities and find it difficult to provide in-depth technical guidance and market connection. In addition, the success rate of incubation projects is still low, with an average of less than 20% of projects successfully “graduating” and obtaining subsequent financing.

3. Shared R&D space and equipment

Sharing R&D space and equipment is an effective way to optimize resource allocation and promote collaborative innovation. Vietnam’s industrial parks are actively exploring this aspect. The Viet Huu Industrial Park in Bac Giang Province, Hanoi, took the lead in launching the “Innovation Sharing Laboratory” program, where enterprises in the park can use high-end R&D equipment on demand, greatly reducing the R&D costs of small and medium-sized enterprises. The Long Thanh Industrial Park in Dong Nai Province has established an “Open Innovation Center” to provide 24-hour open workspace and experimental facilities for R&D personnel inside and outside the park.

Some parks have also tried to introduce “equipment sharing platforms” to achieve efficient deployment of R&D equipment through online systems. For example, the “E-Lab” platform developed by the Ho Chi Minh City High-Tech Park has connected 80% of the shareable R&D equipment in the park, greatly improving equipment utilization.

Despite this, the promotion of shared R&D facilities still faces many challenges. The first is the issue of intellectual property protection. Many companies are cautious about participating in shared R&D for confidentiality reasons. Secondly, equipment maintenance and use specifications still need to be improved, and some shared facilities are idle due to poor management. In addition, a cross-park and cross-regional R&D resource sharing mechanism has not yet been established, which limits the widespread flow of innovation resources.

Overall, the construction of R&D facilities in Vietnam’s industrial parks is progressing rapidly, but there is still a gap compared with the international advanced level. The number and quality of advanced laboratories and testing centers need to be further improved, the service capabilities of incubators and accelerators need to be strengthened, and the operating model of shared R&D space and equipment needs to be optimized. In the future, with the government’s continued increase in investment and the active participation of enterprises, the R&D facilities in Vietnam’s industrial parks are expected to achieve a qualitative leap and provide strong support for the country’s innovation-driven development strategy.

5. Industry-University-Research Cooperation Ecosystem

Industry-university-research cooperation is a key engine to promote innovation and plays an increasingly important role in the development of Vietnam’s industrial parks. In recent years, the Vietnamese government has vigorously promoted collaborative innovation between industry, academia and research, and various industrial parks have also actively explored new models of cooperation. This section will deeply analyze the industry-university-research cooperation ecosystem of Vietnam’s industrial parks from three aspects: cooperative projects with local universities, joint laboratories between enterprises and research institutions, and technology transfer and commercialization mechanisms.

5.1 Cooperation projects with local universities

The cooperation between Vietnam’s industrial parks and local universities is becoming increasingly close and diverse. The most common is the joint talent training project. For example, the Hanoi High-Tech Park cooperates with the Hanoi University of Technology to carry out “order-based” talent training, customizing professional courses according to the needs of park enterprises. The Ho Chi Minh City High-Tech Park has established a “park-university” two-way interactive mechanism with the Ho Chi Minh City National University, where students can intern in park enterprises and enterprise employees can also go to the university for further studies.

Scientific research cooperation projects are also deepening. Da Nang High-Tech Park and Da Nang University jointly established the “Marine Technology Innovation Center”, focusing on marine resource development and environmental protection technology research. This cooperation not only enhances the university’s applied research capabilities, but also solves many technical problems for enterprises in the park.

However, challenges still exist. Some cooperation remains at the formal level and lacks substantive content. There is still a disconnect between university research results and corporate needs, and the conversion rate is not high. In addition, the cooperation mechanism is not flexible enough to adapt to the rapidly changing market needs.

5.2 Joint laboratories between enterprises and research institutions

Joint laboratories are an important platform for the deep integration of industry, academia and research. Some leading industrial parks in Vietnam have made significant progress in this regard. The Vietnam-Singapore Industrial Park (VSIP) in Binh Duong Province and the Vietnam Academy of Science and Technology have jointly established the “Smart Manufacturing Joint Laboratory”, focusing on the research and development and application of Industry 4.0 technologies. The laboratory not only serves enterprises in the park, but also attracts many multinational companies to participate in cooperative R&D projects.

The Quy Vu Industrial Park in Bac Ninh Province has adopted an “enterprise-led” model, encouraging leading enterprises to build laboratories with research institutions. For example, the “New Energy Vehicle Technology Laboratory” established by Vietnam Wa Che Electronics Company and Hanoi University of Technology has successfully developed a number of core technologies for electric vehicles.

Despite this, the construction of joint laboratories still faces many challenges. The first is insufficient funding. Most laboratories are small and cannot support large-scale R&D projects. The second is that the talent flow mechanism is not smooth, and the communication between corporate R&D personnel and academic researchers is not sufficient. In addition, the research direction of some joint laboratories is too academic and out of touch with market demand.

5.3 Technology transfer and commercialization mechanism

Technology transfer and commercialization are the ultimate goals of industry-university-research cooperation. Vietnam’s industrial parks are actively exploring effective technology transfer mechanisms. The Ho Chi Minh City High-Tech Park has established a “Technology Exchange” to build a docking platform for technology supply and demand parties inside and outside the park. In 2023, the exchange facilitated technology transactions exceeding US$100 million, setting a new record.

Some industrial parks have also tried to introduce internationally advanced technology transfer models. The Long Thanh Industrial Park in Dong Nai Province has cooperated with the University of Southern California in the United States to introduce a “proof of concept” mechanism to provide initial verification funds for potential scientific research results, greatly improving the success rate of technology transformation.

In terms of commercialization, the Vietnamese government has introduced a series of support policies, such as the establishment of a scientific and technological achievement transformation fund to provide financial support for high-risk technology commercialization projects. Some parks have also established special technology commercialization service teams to provide full guidance for scientific researchers and enterprises.

However, the overall efficiency of technology transfer and commercialization still needs to be improved. Insufficient intellectual property protection, imperfect value assessment system, unprofessional intermediary services and other issues have restricted the progress of technology transfer to a certain extent. In addition, the low enthusiasm of scientific researchers for the transformation of their achievements is also a key problem that needs to be solved.

In general, the industry-university-research cooperation ecosystem in Vietnam’s industrial parks is developing rapidly, but it is still in the growth stage. Cooperation with local universities is becoming increasingly in-depth, joint laboratories between enterprises and research institutions are constantly emerging, and technology transfer and commercialization mechanisms are constantly improving. However, the depth and breadth of cooperation need to be improved, and the efficiency of resource integration and collaborative innovation still needs to be improved. In the future, with the continuous optimization of the policy environment and the improvement of the participation of all parties, the industry-university-research cooperation in Vietnam’s industrial parks is expected to reach a new level and provide stronger support for the country’s innovation-driven development strategy.

6. Talent Training and Attraction Measures

Talent is the core driving force of innovation. Vietnam’s industrial parks are well aware of this and have invested a lot of resources in talent training and attraction in recent years. This section will analyze the talent strategy of Vietnam’s industrial parks in detail from three aspects: professional skills training programs, overseas talent introduction policies, and innovative and entrepreneurial talent support projects.

6.1 Professional skills training plan

Vietnam’s industrial parks generally recognize that the supply of high-quality technical talents is the basis for supporting innovation and development. Therefore, various parks have launched targeted and practical professional skills training programs.

Take Hanoi Hi-Tech Park as an example. The park cooperated with Siemens (Vietnam) to establish an “Industry 4.0 Skills Training Center”. The center is equipped with an advanced intelligent manufacturing simulation system to provide practical training for park employees. The training content covers cutting-edge technologies such as industrial Internet of Things, big data analysis, and robot programming, which greatly improved the overall technical level of the park.

Ho Chi Minh City High-Tech Park has adopted an “order-based” training model. The park regularly collects the talent needs of enterprises and cooperates with local vocational schools to offer customized courses. This model not only ensures that the training content is highly matched with the needs of enterprises, but also provides trainees with a clear career direction. By 2023, the park will have trained more than 5,000 technical talents through this model, with an employment rate of more than 95%.

However, professional skills training still faces some challenges. First, there is insufficient training resources, a lack of high-level trainers, and limited advanced training equipment. Second, some training content is updated slowly and it is difficult to keep up with the pace of technological development. In addition, small and medium-sized enterprises are not very enthusiastic about participating in training, often due to cost considerations.

6.2 Overseas Talent Introduction Policy

Recognizing the importance of international talent in improving innovation capabilities, Vietnam’s industrial parks have actively introduced policies to attract high-end overseas talent.

The Da Nang High-Tech Park has launched the “Returnees Innovation and Entrepreneurship Program” to provide one-stop services for overseas Vietnamese talents who return to Vietnam to start businesses. This includes housing subsidies, children’s education support, scientific research start-up funds, etc. Since its implementation in 2020, the program has attracted more than 200 high-level overseas talents to return to China, including many professors from internationally renowned universities and executives of multinational companies.

Long Thanh Industrial Park in Dong Nai Province has cooperated with many multinational companies to implement the “International Talent Rotation Program”. Through this program, the park introduces about 100 senior technical and management talents from overseas branches of cooperative enterprises every year for a period of 1-2 years. This not only brings advanced technology and management experience, but also helps local employees expand their international perspectives.

Despite this, the introduction of overseas talents still faces many challenges. The first is the salary gap. The salary level provided by Vietnam’s industrial parks is still far behind that of developed countries. The second is the problem of cultural adaptation. Some overseas talents find it difficult to adapt to the local work and living environment. In addition, the continuity and stability of policies are also important factors for overseas talents to consider.

6.3 Innovative and entrepreneurial talent support projects

In order to stimulate innovation and entrepreneurship, Vietnam’s industrial parks have launched targeted talent support projects.

The Vietnam-Singapore Industrial Park (VSIP) in Binh Duong Province has implemented the “Young Innovation Leaders Program”, which selects 100 young talents with innovative potential from park enterprises and local universities every year and provides one-year innovation and entrepreneurship training and practice opportunities. The training content includes innovative thinking, project management, financing skills, etc. Outstanding students have the opportunity to obtain entrepreneurial seed funds provided by the park.

The Guiwu Industrial Park in Bac Ninh Province has set up an “Innovation Talent Incubation Base” to provide free office space, legal advice, market matching and other services for innovative and entrepreneurial talents in the park. The base also regularly holds innovation and entrepreneurship competitions, and the winners can get the attention of venture capital institutions. In 2023, five of the innovative projects incubated by the base successfully obtained Series A financing, with a total amount of more than 10 million US dollars.

However, there are also some shortcomings in the innovative and entrepreneurial talent support projects. First, the breadth and depth of support are limited, and most projects can only cover a small number of elite talents. Second, follow-up tracking services are insufficient, and many projects lack continuous support after initial training. In addition, the connection between innovative and entrepreneurial projects and market demand is not close enough, and the commercialization success rate needs to be improved.

In general, Vietnam’s industrial parks have made significant progress in talent training and attraction, but there is still much room for improvement. In the future, the parks need to further improve the talent training system, optimize the policy of introducing overseas talents, and strengthen support for innovation and entrepreneurship. At the same time, it is also necessary to create a more open and inclusive innovation environment and provide a stage for all kinds of talents to fully display their talents. Only in this way can Vietnam’s industrial parks occupy a favorable position in the increasingly fierce global innovation competition.

7. Intellectual Property Protection and Management

In the context of innovation-driven development, intellectual property protection and management are crucial to the sustainable development of Vietnam’s industrial parks. In recent years, the Vietnamese government and industrial park management agencies have increased their investment in this area. This section will analyze in detail the current status and challenges of Vietnam’s industrial parks in intellectual property protection and management from three aspects: patent application support, intellectual property trading platform and legal consulting services.

7.1 Patent application support

Major industrial parks in Vietnam generally recognize the importance of patent applications in protecting innovative achievements and have introduced support measures.

Hanoi High-Tech Park has set up a “Patent Application Subsidy Fund” to provide financial support to small and medium-sized enterprises and individual inventors in the park. The fund can cover up to 70% of patent application costs, including patent search, writing and application costs. Since the establishment of the fund in 2021, the annual growth rate of patent applications in the park has exceeded 30%, among which the proportion of invention patents has increased significantly.

Ho Chi Minh City High-Tech Park has adopted a “one-stop service for patent applications” model. A special intellectual property service center has been set up in the park, equipped with experienced patent agents to provide enterprises with full-process services from patent search, writing to application. This has greatly simplified the patent application process and improved application efficiency and success rate. In 2023, the park’s patent authorization volume exceeded 1,000 for the first time, ranking among the top industrial parks in the country.

However, patent application support still faces some challenges. First, the quality of patents varies. Some companies apply for low-quality patents in order to obtain policy support. Second, there is a shortage of patent agent talent, especially in emerging technology fields. In addition, companies lack understanding of patent strategy and often overlook the importance of patent layout.

7.2 Intellectual Property Trading Platform

In order to promote the effective circulation and utilization of intellectual property rights, some leading industrial parks have begun to explore the establishment of intellectual property rights trading platforms.

Da Nang High-Tech Park cooperated with the Vietnam Intellectual Property Office to launch the “Intellectual Property Online Trading Platform” in 2022. The platform not only provides display and trading functions for intellectual property rights in the park, but also introduces third-party evaluation agencies to provide professional support for intellectual property pricing. In the past year since the platform was launched, it has facilitated more than 100 intellectual property transactions with a total transaction value of more than US$5 million.

Long Thanh Industrial Park in Dong Nai Province has tried to introduce blockchain technology and established an “intelligent intellectual property trading system”. The system uses smart contracts to automate the trading and profit distribution of intellectual property rights, greatly improving transaction efficiency and transparency. This innovative model has attracted many technology companies to settle in, promoting the prosperity of the park’s intellectual property ecosystem.

Despite this, the development of intellectual property trading platforms is still in its infancy and faces many challenges. The first is insufficient trading volume, and most platforms have not yet formed good liquidity. The second is the difficulty of intellectual property evaluation and the lack of a unified valuation standard. In addition, barriers to cross-regional and cross-industry intellectual property transactions still exist.

7.3 Legal consulting services

With the increase in intellectual property disputes, industrial parks have gradually realized the importance of providing professional legal consulting services.

The Vietnam-Singapore Industrial Park (VSIP) in Binh Duong Province has cooperated with several well-known law firms to provide regular intellectual property legal consulting services to enterprises in the park. The monthly “Intellectual Property Law Clinic” event provides one-on-one consulting opportunities for enterprises. This not only helps enterprises solve practical problems, but also improves the awareness of intellectual property protection throughout the park.

The Quy Vu Industrial Park in Bac Ninh Province has established an “Intellectual Property Dispute Mediation Center” and hired senior legal experts as mediators. Resolving intellectual property disputes through mediation not only saves time and costs, but also helps maintain good relations between companies. In 2023, the center successfully mediated more than 50 intellectual property dispute cases, with a mediation success rate of 85%.

However, there are still some shortcomings in legal consulting services. First, there is a shortage of high-level intellectual property legal talents, especially experts familiar with international intellectual property laws. Second, the service coverage is limited, and most small and medium-sized enterprises find it difficult to obtain continuous legal support. In addition, the legal awareness of intellectual property rights of enterprises still needs to be improved, and many enterprises only seek legal help when they encounter disputes.

In general, Vietnam’s industrial parks are constantly improving in terms of intellectual property protection and management. Support for patent applications has been increased, intellectual property trading platforms have been gradually established, and legal consulting services have become increasingly professional. However, compared with developed countries, Vietnam’s intellectual property ecosystem is still in the development stage. In the future, it is necessary to further improve relevant laws and regulations, strengthen the training of intellectual property talents, and enhance the intellectual property awareness and management capabilities of enterprises. Only by establishing a sound intellectual property protection and management system can we provide a strong guarantee for the continuous innovation of Vietnam’s industrial parks.

8. Financial and policy support

The Vietnamese government and local governments are fully aware of the key role of financial and policy support in promoting the innovative development of industrial parks. In recent years, Vietnam has continuously improved its policies in terms of R&D tax incentives, funding support for innovative projects, and high-tech enterprise certification and related incentives, providing strong support for the innovation activities of industrial parks. This section will analyze in detail the specific measures in these three aspects and their implementation effects.

8.1 R&D tax incentives

In order to encourage companies to increase their investment in research and development, the Vietnamese government has introduced a series of tax incentives.

In 2021, Vietnam revised the Corporate Income Tax Law, increasing the additional deduction rate for R&D expenses from 150% to 200%. This means that for every VND1 million invested in R&D expenses, an enterprise can deduct VND2 million before tax. This policy has received a positive response in major industrial parks. Taking the Hanoi High-Tech Park as an example, after the implementation of the policy, the R&D investment of enterprises in the park increased by 35% year-on-year in 2022, among which the increase of local small and medium-sized enterprises was the most significant.

In addition, Vietnam has also implemented a policy of exempting import tariffs on imported equipment and materials for R&D. The Ho Chi Minh City High-Tech Park has simplified the approval process by setting up a “green channel for R&D equipment imports”, shortening the equipment import time from an average of 45 days to 15 days, greatly improving the efficiency of enterprises in introducing advanced R&D equipment.

However, the implementation of the R&D tax incentives also faces some challenges. First, the policy publicity is not in place, and some small and medium-sized enterprises do not have a good understanding of the incentives. Second, the application procedures are complicated, and some companies hesitate because they are worried about subsequent audits. In addition, the definition of R&D activities is not clear enough, which is prone to disputes.

8.2 Financial support for innovative projects

In order to solve the financing difficulties of innovative projects, especially early-stage projects, governments at all levels and industrial park management agencies in Vietnam have launched various forms of financial support programs.

At the national level, the Ministry of Science and Technology of Vietnam has established the “National Technology Innovation Fund” to provide low-interest loans or equity investments for projects with significant innovation potential. In 2023, the fund supported more than 200 innovation projects in industrial parks across the country with a total investment of US$50 million.

At the local level, each industrial park has also introduced targeted support measures based on its own characteristics. For example, the Da Nang High-tech Park has established a “Marine Science and Technology Innovation Fund” to focus on supporting innovative projects in the fields of marine biotechnology and marine energy. The fund adopts the “investment-loan linkage” model, providing low-interest loans and equity investments, effectively reducing the financing costs and risks of innovative projects.

However, there are still some problems with the funding support for innovation projects. First, the scale of funds is relatively limited and it is difficult to meet the growing demand for innovation. Second, the efficiency of fund allocation is not high, and some projects progress slowly after receiving support. In addition, the follow-up tracking and supervision mechanism is not perfect, and there is a situation of inefficient use of funds.

8.3 Certification of high-tech enterprises and related preferential policies

To encourage the development of high-tech enterprises, the Vietnamese government has implemented a high-tech enterprise certification system and granted a number of benefits to certified enterprises. According to the latest regulations, enterprises certified as high-tech enterprises can enjoy a 15-year preferential income tax rate (10%, while ordinary enterprises are 20%), including 4 years of tax exemption and 9 years of 50% tax reduction. In addition, high-tech enterprises can also enjoy land use fee reductions, accelerated depreciation and other benefits.

All industrial parks actively promote enterprises in the parks to apply for high-tech enterprise certification. The Vietnam-Singapore Industrial Park (VSIP) in Binh Duong Province has set up a “High-tech Enterprise Cultivation Working Group” to provide enterprises with policy interpretation, application guidance and other services. In 2023, the number of high-tech enterprises in the park increased by 50% year-on-year, accounting for 35% of the total number of enterprises in the park.

The Guiwu Industrial Park in Bac Ninh Province has innovatively launched the “High-tech Enterprise Cultivation Program”, which provides two-year systematic guidance to potential enterprises to help them meet the certification standards for high-tech enterprises. This approach not only improves the innovation capabilities of enterprises, but also expands the coverage of high-tech enterprises.

Despite this, the recognition of high-tech enterprises still faces some challenges. First, the recognition standards are high, and many small and medium-sized enterprises find it difficult to meet the standards. Second, the recognition process is time-consuming, taking an average of 6-9 months. In addition, after obtaining recognition, some enterprises lack the motivation to innovate, and there is a phenomenon of “focusing on recognition and neglecting development”.

In general, Vietnam has made significant progress in financial and policy support, providing strong support for the innovative development of industrial parks. However, compared with developed countries, the intensity and precision of support need to be improved. In the future, Vietnam needs to further improve its policy system, improve support efficiency, and strengthen supervision and evaluation to ensure that limited resources can maximize the promotion of innovative development. At the same time, it is also necessary to strengthen the continuity and stability of policies and provide a predictable policy environment for enterprises’ long-term innovation investment.

9. International Cooperation and Technology Introduction

In the context of globalization, international cooperation and technology introduction are crucial to the innovative development of Vietnam’s industrial parks. The Vietnamese government and industrial park management agencies are actively promoting international cooperation, attracting multinational companies to set up R&D centers, participate in international scientific and technological cooperation projects, and strive to simplify the process of technology licensing and transfer. This section will analyze the development status, achievements and challenges of these three aspects in detail.

9.1 R&D centers of multinational companies

In recent years, Vietnam has successfully attracted a number of multinational companies to set up R&D centers in industrial parks, which not only brought advanced technology and management experience, but also promoted the development of the local innovation ecosystem.

Hanoi High-Tech Park has successfully introduced Samsung Electronics’ largest overseas R&D center. The center focuses on the R&D of artificial intelligence, big data and Internet of Things technologies, and has more than 3,000 R&D personnel, 90% of whom are local Vietnamese talents. This not only enhances Vietnam’s position in the electronics industry chain, but also drives talent training in surrounding universities and technology upgrades for local suppliers.

Ho Chi Minh City’s Hi-Tech Park has attracted Intel to set up the world’s largest chip testing and assembly base. In addition to production functions, the base also has a research and development center specializing in the development of IoT and artificial intelligence chips. This has greatly promoted the development of Vietnam’s semiconductor industry and provided valuable learning opportunities for local engineers.

However, Vietnam still faces many challenges in attracting R&D centers of multinational companies. The first is the insufficient supply of high-end talents, especially in cutting-edge technology fields. The second is that the intellectual property protection environment needs to be improved, and some multinational companies are cautious about the R&D of core technologies. In addition, although the R&D cost is relatively low, it has risen rapidly in recent years, which has partially weakened Vietnam’s attractiveness.

9.2 International scientific and technological cooperation projects

Vietnam actively participates in international scientific and technological cooperation projects to accelerate technological progress and enhance its innovation capabilities.

Da Nang High-Tech Park cooperated with the Japan International Cooperation Agency (JICA) to implement the “Green Technology Innovation Support Project”. The project lasts for five years and focuses on supporting the research and development and application of environmental protection technology, renewable energy and other fields. By introducing advanced Japanese technology and management experience, the park has made significant progress in water treatment, solar energy utilization and other aspects, and many innovative achievements have been industrialized.

Long Thanh Industrial Park in Dong Nai Province has established a strategic partnership with the Fraunhofer Society for the Promotion of Applied Research in Germany. The two parties have jointly established the “Industry 4.0 Technology Transfer Center” to promote the application and localization of smart manufacturing technology in Vietnam. The center has successfully incubated a number of industrial automation projects, significantly improving the production efficiency of enterprises in the park.

Despite this, the implementation of international scientific and technological cooperation projects still faces some difficulties. The first is language and cultural barriers, which affect the depth and efficiency of cooperation. The second is the problem of project sustainability. Some cooperation projects are difficult to continue after the foreign support ends. In addition, the participation of local enterprises is not high enough, and some project results are difficult to effectively transform.

9.3 Measures to facilitate technology licensing and transfer

To promote the introduction and absorption of advanced technologies, the Vietnamese government and industrial park management agencies have taken a series of measures to simplify the technology licensing and transfer process.

In 2022, Vietnam revised the Technology Transfer Law, greatly simplifying the approval procedures for technology transfer. For technologies in non-restricted fields, a filing system is implemented instead of an approval system, which greatly shortens the processing time. On this basis, the Vietnam-Singapore Industrial Park (VSIP) in Binh Duong Province has established a “one-stop service window for technology transfer” to provide enterprises with a full range of services such as policy consultation, document preparation, and process tracking. These measures have led to a 40% year-on-year increase in the number of technology transfer contracts in the park in 2023.

The Guiwu Industrial Park in Bac Ninh Province has innovatively launched a “technology licensing trading platform” to provide online docking, contract signing, payment settlement and other services for both technology supply and demand parties. The platform also introduced a third-party evaluation agency to provide professional support for technology pricing. This model not only improves the efficiency of technology transactions, but also reduces transaction risks.

However, there are still some obstacles in technology licensing and transfer. First, the technology evaluation capacity is insufficient, making it difficult to accurately judge the value and applicability of the imported technology. Second, the supporting policies are not perfect, such as taxation, foreign exchange management and other policies need to be optimized. In addition, the technology absorption capacity of local enterprises varies, and some imported technologies are difficult to effectively digest and re-innovate.

In general, Vietnam has made significant progress in international cooperation and technology introduction, which has injected strong impetus into the innovative development of industrial parks. However, compared with developed countries and some emerging economies, Vietnam still has a lot of room for improvement in attracting high-end R&D resources, deeply participating in international scientific and technological cooperation, and promoting effective technology transfer. In the future, Vietnam needs to further optimize the business environment, increase talent training, and improve relevant laws and regulations to better integrate into the global innovation network. At the same time, it is also necessary to focus on improving the innovation and technology absorption capabilities of local enterprises, realize the virtuous cycle of introduction, digestion, absorption, and re-innovation, and promote the innovation capabilities of Vietnam’s industrial parks and even the entire country to a new level.

10. Innovation infrastructure

Innovation infrastructure is an important guarantee for supporting the innovative development of industrial parks. In recent years, the Vietnamese government and industrial park management agencies have attached great importance to the construction of innovation infrastructure, and have invested heavily in high-speed Internet and 5G network coverage, smart manufacturing demonstration lines, and big data centers and cloud computing facilities. This section will analyze the development status, achievements and challenges of these three aspects in detail.

10.1 High-speed Internet and 5G network coverage

Vietnam recognizes that high-speed and stable network connections are crucial to promoting digital transformation and innovation, and is therefore vigorously promoting the construction of high-speed Internet and 5G networks in industrial parks.

Hanoi Hi-Tech Park took the lead in achieving 5G network coverage throughout the park in 2021. The park cooperated with Vietnam Military Telecommunications Group (Viettel) to deploy more than 100 5G base stations, achieving network performance with an average download speed of more than 1Gbps. This provides strong support for innovative applications such as the Internet of Things, remote control, and augmented reality in the park. For example, an electronics manufacturer in the park used the 5G network to achieve real-time monitoring and remote debugging of the production line, significantly improving production efficiency.

Ho Chi Minh City High-Tech Park has launched the “Gigabit Fiber to Enterprises” plan. The park has cooperated with a number of telecom operators to provide enterprises with fiber-optic broadband access of up to 10Gbps. By the end of 2023, 98% of enterprises in the park have access to the gigabit fiber-optic network. This move has greatly improved the data transmission capacity of the park and laid the foundation for applications such as big data analysis and cloud computing.

However, high-speed network construction still faces some challenges. The first is the high construction and operation costs, and some small and medium-sized enterprises cannot afford the high-speed network service fees. The second is the increase in network security risks, and it is necessary to strengthen network security protection measures at the same time. In addition, some traditional industries lack awareness of high-speed network applications and their utilization rate is not high.

10.2 Intelligent manufacturing demonstration line

In order to promote the digital transformation of the manufacturing industry, industrial parks in Vietnam are actively building smart manufacturing demonstration lines to promote overall industrial upgrading from point to surface.

Da Nang High-tech Park cooperated with Siemens (Vietnam) to establish the country’s first Industry 4.0 demonstration production line. The production line integrates advanced technologies such as industrial Internet of Things, artificial intelligence, and augmented reality, achieving a high degree of automation and intelligence in the production process. The park organizes corporate visits and learning every month, and provides technical consulting services to help companies plan their own intelligent transformation paths. According to statistics, more than 200 companies participated in the demonstration line learning activities in 2023, of which 30% of companies have started intelligent transformation projects.

Long Thanh Industrial Park in Dong Nai Province has built a “Smart Factory Innovation Center” to provide smart manufacturing solutions for small and medium-sized enterprises. The center has several simulated production lines covering electronic assembly, mechanical processing and other fields, where enterprises can conduct small-scale experiments and personnel training. The center has also cooperated with technology companies to develop a set of low-cost, modular smart manufacturing solutions, which has lowered the threshold for small and medium-sized enterprises to transform themselves into smart factories.

Despite this, there are still some obstacles to the promotion and application of smart manufacturing demonstration lines. First, the degree of technology localization is not enough, and some solutions are difficult to adapt to the actual needs of Vietnamese companies. Secondly, there is a shortage of professional talents, and many companies lack the compound talents required for smart manufacturing. In addition, large capital investment and long payback period also restrict the enthusiasm of some companies.

10.3 Big data centers and cloud computing facilities

With the rapid development of the digital economy, Vietnam’s industrial parks are paying more and more attention to the construction of big data centers and cloud computing facilities to support the growing demand for data processing and storage.

The Vietnam-Singapore Industrial Park (VSIP) in Binh Duong Province has cooperated with Singtel to build Vietnam’s largest neutral data center. The center is designed with Tier III+ standards and has a total investment of more than US$100 million. It can provide highly reliable data hosting, cloud computing and disaster recovery services for enterprises in the park. The completion of the center not only meets the needs of enterprises in the park, but also attracts many multinational companies to migrate their data businesses in Southeast Asia to this center.

The Guiwu Industrial Park in Bac Ninh Province has adopted a “cloud first” strategy, cooperating with leading domestic cloud service providers to provide one-stop cloud service solutions for enterprises in the park. The park has also set up a “cloud computing innovation laboratory” to help enterprises develop and test cloud-native applications. This move has greatly reduced the company’s IT infrastructure investment and accelerated the process of digital transformation. According to a survey, more than 60% of enterprises in the park have migrated their core business systems to the cloud in 2023.

However, the development of big data centers and cloud computing facilities still faces some challenges. The first is the huge energy consumption, which places higher demands on the power supply and cooling systems of the park. The second is that data security and privacy protection issues are becoming increasingly prominent, and a more complete legal and technical guarantee system needs to be established. In addition, localized advanced cloud services and big data analysis tools are still relatively lacking, and some high-end needs still need to rely on international service providers.

In general, Vietnam’s industrial parks have made significant progress in the construction of innovative infrastructure, providing strong support for the innovative development of enterprises in the parks. However, compared with the global leading level, Vietnam still has a gap in the advancement, popularity and utilization efficiency of infrastructure. In the future, Vietnam needs to further increase investment, improve the top-level design, promote collaborative innovation between industry, academia and research, and promote the continuous upgrading of innovative infrastructure. At the same time, it is also necessary to focus on improving the digital literacy and innovation awareness of enterprises, give full play to the potential of infrastructure, and promote Vietnam’s industrial parks to move towards a higher level of innovation ecosystem.

11. Creating an innovative culture and atmosphere

Innovation culture and atmosphere are the soft power that promotes continuous innovation in industrial parks. In recent years, industrial parks in Vietnam have attached increasing importance to the cultivation of innovation culture and the creation of an innovation atmosphere. They have stimulated innovation vitality and promoted innovation exchanges through organizing innovation competitions and hackathons, building platforms for displaying and exchanging innovation achievements, and building entrepreneurial communities and networks. This section will analyze the development status, achievements and challenges of these three aspects in detail.

11.1 Innovation competitions and hackathons

Vietnam’s industrial parks generally recognize that innovation competitions and hackathons are effective ways to stimulate innovative thinking and cultivate innovative talents.

Hanoi Hi-Tech Park holds the “Future Technology Innovation Competition” every year, covering multiple cutting-edge fields such as artificial intelligence, the Internet of Things, and new materials. The competition adopts an industry-university-research cooperation model, and participating teams must include members from enterprises, universities, and research institutions to promote multi-party collaboration. The 2023 competition attracted more than 300 teams from all over the country to participate, and the final 10 winning projects attracted the attention of venture capital institutions, of which 3 projects have successfully raised funds.

Ho Chi Minh City High-Tech Park cooperates with technology giants to hold a themed hackathon every quarter. For example, the “AI for Vietnam” hackathon in cooperation with Google focuses on the innovation of artificial intelligence in local application scenarios. These activities not only provide opportunities for park companies to discover innovative talents, but also promote the application of cutting-edge technologies in practical problems. According to statistics, 20% of the innovative solutions generated through hackathon activities in 2023 have been put into practical use in park companies.

However, the organization of innovation competitions and hackathons also faces some challenges. The first is uneven participation, and some traditional industrial enterprises are not very enthusiastic about participating. The second is insufficient follow-up support, and many excellent ideas lack continuous incubation and implementation opportunities after the competition. In addition, the internationalization of the activities needs to be improved, and the participation of multinational companies and international innovation teams is relatively low.

11.2 Platform for displaying and exchanging innovative achievements

In order to promote the dissemination and application of innovative achievements, Vietnam Industrial Parks actively build various display and exchange platforms.

Da Nang High-tech Park has established a permanent “Innovation Achievement Exhibition Center”, which uses various forms such as physical display and virtual reality to fully display the innovative products and technologies of enterprises in the park. The center holds “Innovator Night” activities every month, invites innovative teams to conduct roadshows, and organizes investors and industry experts to participate in interactions. This platform has effectively promoted technical exchanges and project docking within the park, and has facilitated more than 50 technical cooperations and 15 investment transactions in 2023.

Long Thanh Industrial Park in Dong Nai Province has created an online “Innovation Achievement Trading Market” where companies can display and trade their innovation achievements. The platform also introduced intellectual property evaluation and transaction protection mechanisms to improve the security of transactions. Since its launch in 2022, the platform has released more than 1,000 innovation achievements and its transaction volume has exceeded US$5 million.

Despite this, there are still some problems in the operation of the innovation achievement display and exchange platform. First, the quality of the achievements is uneven, and a more stringent screening and evaluation mechanism is needed. Second, the user stickiness is insufficient, and some companies lack continuous updates and interactions after publishing the achievements. In addition, the platform is not international enough, making it difficult to effectively connect global innovation resources.

11.3 Building a community and network of entrepreneurs

Vietnam Industrial Parks recognizes that building an active community and network of entrepreneurs is critical to fostering a culture of innovation and entrepreneurship.

The Vietnam-Singapore Industrial Park (VSIP) in Binh Duong Province has created a social space called the “Startup Café” to provide entrepreneurs in the park with a relaxed environment for communication. The weekly “Entrepreneur Breakfast” has become a landmark event for the park’s innovation community, attracting many entrepreneurs, investors and industry experts. This move has effectively promoted the prosperity of the park’s entrepreneurial ecosystem, with the number of new startups in the park increasing by 40% year-on-year in 2023.

The Guiwu Industrial Park in Bac Ninh Province has built an “Online Community for Innovators” with the help of digital technology. The platform not only provides basic functions such as information sharing and problem discussion, but also introduces an “innovation points” mechanism to encourage members to actively share and help each other. The community also regularly organizes online courses and experience sharing sessions to help entrepreneurs improve their abilities. By the end of 2023, the community has more than 5,000 active users, becoming an important support for innovation and entrepreneurship in the park.

However, there are still some challenges in building entrepreneurial communities and networks. First, the community activity is unstable, which requires continuous operation and content support. Second, the uneven distribution of resources makes it difficult for some small entrepreneurial projects to get enough attention. In addition, the cross-park and cross-regional entrepreneurial networks are not well developed, which limits wider resource sharing and collaboration.

In general, Vietnam’s industrial parks have made significant progress in creating an innovative culture and atmosphere, injecting vitality into the park’s innovative development. However, compared with the world’s leading innovation ecosystem, Vietnam still has room for improvement in the depth, breadth and sustainability of innovation activities. In the future, Vietnam needs to further improve the organization and incentive mechanisms for innovation activities, strengthen the construction and operation of innovation platforms, and deepen the cultivation and empowerment of innovation communities. At the same time, it is also necessary to focus on combining innovation culture with Vietnamese local culture to form an innovation ecosystem with Vietnamese characteristics, and promote the continuous improvement of the innovation capabilities of industrial parks and even the entire country.

12. Case Studies

In order to more intuitively demonstrate the innovation achievements of Vietnam’s industrial parks, this section will analyze in depth the successful park innovation projects, industry-university-research cooperation models, and the growth stories of local start-ups through specific cases. These cases not only demonstrate the innovation potential of Vietnam’s industrial parks, but also provide valuable experience references for other companies and parks.

12.1 Successful park innovation project cases

Case: VinFast Electric Vehicle Project (Hanoi High-Tech Park)

VinFast is Vietnam’s first independent brand car manufacturer, and its electric vehicle project is a landmark achievement of innovation in Vietnam’s industrial parks. In 2017, VinFast launched this ambitious project in the Hanoi High-Tech Park.

Innovation highlights:

Fast development: VinFast completed the entire process from concept to mass production in just 21 months, setting a speed record in the global automotive industry.

International cooperation: Cooperate with leading international companies such as BMW and Bosch to quickly acquire core technologies.

Localized R&D: We have established Vietnam’s largest automotive R&D center and trained a group of local automotive engineers.

Smart Manufacturing: Introducing Industry 4.0 technology and building a highly automated production line.

Achievements: In 2022, VinFast launched its first pure electric SUV VF8 and began exporting it to international markets such as the United States. The project not only promoted the upgrading of Vietnam’s automobile industry, but also promoted the development of related supporting industries and formed a new industrial cluster.

12.2 Model of Industry-University-Research Cooperation

Case: Vietnam National University (Hanoi) – FPT Software Joint Laboratory for Artificial Intelligence

In 2019, FPT, Vietnam’s largest software company, and Vietnam National University (Hanoi) jointly established an artificial intelligence joint laboratory in the Hanoi High-Tech Park, which is a model project of industry-university-research cooperation in Vietnam.

Cooperation highlights:

Talent training: The laboratory trains 50 AI masters and doctors every year to directly meet the needs of enterprises.

Applied research: Focusing on applied research in areas such as natural language processing and computer vision, we have developed solutions for multiple industries.

Technology transformation: A rapid mechanism for transforming research results has been established, with an average of 5-7 projects being industrialized each year.

Open Innovation: The laboratory regularly holds AI challenges to attract students from universities across the country to participate and promote the cultivation of innovative thinking.

Achievements: By 2023, the laboratory has trained more than 200 AI professionals, published more than 50 international academic papers, applied for more than 30 patents, and incubated 3 AI startups. This cooperation model is being promoted to other industrial parks and technology fields.

12.3 Growth stories of local start-ups

Case: Medigo (Ho Chi Minh City High-Tech Park)

Medigo is a medical technology startup founded in 2019 that focuses on developing smart medical appointment and remote diagnosis and treatment platforms.

Growth process:

Incubation phase: In 2019, Medigo was established in an incubator at the Ho Chi Minh City Hi-Tech Park, receiving free office space and mentorship for 6 months.

Product development: Using the cloud computing resources and AI development tools provided by the park, the first version of the product was developed within 8 months.

Market verification: Through the park’s medical industry alliance, we quickly established cooperation with multiple hospitals and conducted product pilots.

Financing Growth: In 2021, we participated in the investment roadshow organized by the park and successfully obtained US$2 million in Series A financing.

Scale expansion: In 2022, with the help of the park’s international cooperation network, we will begin to expand our business to other Southeast Asian countries.

Achievements: By 2023, the Medigo platform has covered more than 100 hospitals in Vietnam, with more than 500,000 monthly active users, becoming Vietnam’s leading medical technology company. The company’s employees have grown from the initial 5 to the current 120, of which 70% are local talents recruited from universities around the park.

These cases vividly demonstrate the achievements of Vietnam’s industrial parks in promoting innovation, promoting industry-university-research cooperation, and cultivating local innovative enterprises. VinFast’s case shows Vietnam’s ambition and capabilities in the field of high-tech manufacturing; FPT’s cooperation with universities shows the huge potential of industry-university-research collaborative innovation; and Medigo’s growth story proves the good entrepreneurial ecosystem of Vietnam’s industrial parks.

However, these success stories also reflect some common challenges, such as the shortage of international talents, reliance on core technologies, and sustainability of financial support. In the future, Vietnam’s industrial parks need to continue their efforts in these areas to cultivate more successful innovation cases and promote Vietnam’s transformation to an innovation-driven economy.

13. Challenges and opportunities

Although Vietnam’s industrial park innovation ecosystem has made significant progress, it is also facing many challenges in the process of rapid development. At the same time, changes in the global economic landscape and technological innovation have also brought new development opportunities to Vietnam. This section will deeply analyze the main challenges facing the current innovation ecosystem, as well as future development opportunities and potential areas.

Key challenges facing the current innovation ecosystem

13.1Shortage of high-end talents:

Although Vietnam has a large number of young laborers, it still lacks professional talents in high-tech fields. In particular, there is a large gap in high-level R&D talents in cutting-edge fields such as artificial intelligence, big data, and high-end manufacturing. This limits the innovation ability of enterprises and the speed of technological upgrading.

13.2 Core technology dependence:

Most Vietnamese companies still rely on imported core technologies and key equipment. In some high value-added fields, such as integrated circuits and high-end medical equipment, local companies have insufficient technological accumulation and find it difficult to achieve breakthrough innovations.

13.3 Insufficient investment in innovation:

Compared with developed countries, Vietnam’s R&D investment intensity is still relatively low. Due to funding constraints, many small and medium-sized enterprises find it difficult to continue to invest a large amount of resources in innovation and R&D. Although the government’s innovation support funds are increasing, they are still unable to meet the rapidly growing demand.

13.4 Insufficient collaboration between industry, academia and research:

Although there are some successful cooperation cases, Vietnam’s industry-university-research collaborative innovation system is still not mature enough. The research of universities and research institutions often cannot meet the actual needs of enterprises, and the technology conversion rate is low.

13.5 Insufficient intellectual property protection:

The intellectual property protection system is not yet perfect and the enforcement needs to be strengthened. This has affected the innovation enthusiasm of enterprises and, to a certain extent, hindered multinational companies from transferring core technologies to Vietnam.

13.6 Regional imbalance in the innovation ecosystem:

Innovation resources are mainly concentrated around major cities such as Hanoi and Ho Chi Minh City. Industrial parks in other regions have obvious disadvantages in terms of innovation infrastructure and talent attraction.

13.7 Insufficient internationalization:

The internationalization level of Vietnam’s industrial parks still needs to be improved. There is still a gap in attracting international high-end talents, participating in the global innovation network, and integrating into the high-end links of the international industrial chain.

Future development opportunities and potential areas

13.8 Digital Economy and Industry 4.0:

With the development of technologies such as 5G, Internet of Things, and artificial intelligence, Vietnam has great potential in the fields of smart manufacturing, smart cities, and digital services. The government is vigorously promoting digital transformation and creating a favorable environment for the innovative development of industrial parks.

13.9 Green technology and sustainable development:

The global emphasis on environmental protection and sustainable development has brought opportunities to Vietnam. New energy, environmentally friendly materials, circular economy and other fields will become the focus of future innovation. Vietnam’s rich natural resources and government policy support provide a good foundation for the development of these fields.

13.10 Life Sciences and Healthcare:

In the post-epidemic era, new development opportunities are emerging in the fields of biotechnology, medical devices, digital health, etc. Vietnam can use its experience accumulated in responding to the epidemic to vigorously develop related industries.

13.11 Regional integration:

The deepening of the ASEAN Economic Community will bring Vietnam greater markets and cooperation opportunities. Industrial parks can use this opportunity to attract more regional headquarters and R&D centers, and enhance their position in the regional innovation network.

13.12 Reconstruction of global supply chain:

Changes in the international trade pattern have given Vietnam the opportunity to undertake more high-value-added industrial transfers. Industrial parks can take this opportunity to introduce advanced technologies and promote industrial upgrading.

13.13The maturity of the innovation and entrepreneurship ecosystem:

With the continuous improvement of Vietnam’s entrepreneurial environment and the formation of entrepreneurial culture, more innovative local enterprises will emerge in the future, which will inject new vitality into industrial parks.

13.14Talent Return:

With the rapid development of Vietnam’s economy and the improvement of its innovation environment, more and more overseas Vietnamese talents are choosing to return to their country for development, which provides valuable human resources for improving innovation capabilities.

13.15 Integration of emerging technologies:

The cross-integration of emerging technologies such as artificial intelligence, blockchain, and quantum computing will generate new innovation opportunities. Vietnam can achieve “overtaking on the curve” in specific segments.

Facing these challenges and opportunities, Vietnam’s industrial parks need to take positive measures, such as increasing the training and introduction of talents, increasing R&D investment, improving the intellectual property protection system, promoting the deep integration of industry, academia and research, and strengthening international cooperation. At the same time, we must accurately grasp development opportunities, focus on the layout of emerging fields with potential, and promote the development of the innovation ecosystem to a higher level.

By effectively responding to challenges and seizing opportunities, Vietnam’s industrial parks are expected to occupy a more important position in the future global innovation landscape and become an important engine for promoting high-quality national economic development.

14. Comparative Analysis

In order to better evaluate the innovation capacity and development level of Vietnam’s industrial parks, this section will compare and analyze Vietnam’s industrial parks with major high-tech zones in China and innovation parks in other Southeast Asian countries. This comparison can not only highlight the advantages and characteristics of Vietnam’s industrial parks, but also help identify gaps and improvement directions.

14.1 Comparison with major high-tech zones in China

Size and quantity:China has 169 national-level high-tech zones, covering a wide area and large scale. In contrast, Vietnam has fewer high-tech parks and smaller scale. For example, the Shenzhen High-tech Zone in China covers an area of ​​about 159 square kilometers, while the largest Hanoi High-tech Park in Vietnam covers an area of ​​about 1,586 hectares (15.86 square kilometers).

Innovation Capabilities:China’s high-tech zones lead in R&D investment, number of patent applications, etc. In 2022, the proportion of R&D expenditure in China’s national high-tech zones to GDP reached an average of more than 6%, while this proportion in Vietnam’s industrial parks was generally less than 2%.

Industry Clusters:China’s high-tech zones have formed a mature industrial ecosystem, such as Shenzhen’s leading position in electronic information and Beijing’s Zhongguancun in artificial intelligence. The industrial cluster effect of Vietnam’s industrial parks is relatively weak, and the high-tech industrial chain is not yet complete.

Talent attraction:China’s high-tech zones have more advantages in attracting and cultivating high-end talents, and have more high-level talents such as the “Thousand Talents Plan”. Vietnam still faces challenges in attracting international high-end talents.

Policy support:China’s policy support for high-tech zones is more systematic and comprehensive, including tax incentives, land use, science and technology finance, etc. Although Vietnam’s policy support is increasing, the system is still not perfect.

Internationalization:Some of China’s leading high-tech zones have become important nodes in the global innovation network. The internationalization of Vietnam’s industrial parks is relatively low, and the connection with global innovation resources is not sufficient.

14.2 Comparison with innovation parks in other Southeast Asian countries

Singapore:

Advantages: Singapore’s “one-stop” service center (one-north) is a global leader in biomedicine, information and communications, and its innovation environment is more international.

Comparison: Vietnam has advantages in labor costs and land resources, but still has gaps in attracting high-end talents and innovative infrastructure.

Malaysia:

Strengths: Malaysia’s Multimedia Super Corridor (MSC) excels in the digital economy and creative industries.

Comparison: Vietnam may have more advantages in manufacturing innovation, but needs to strengthen the development of software and creative industries.

Thailand:

Advantages: Thailand’s Eastern Economic Corridor (EEC) focuses on the development of high-tech industries and has strong government support.

Comparison: Vietnam may be more competitive in attracting foreign investment and developing the processing and manufacturing industry, but it can learn from Thailand in the overall planning of high-tech industries.

Indonesia:

Strengths: Indonesia’s Jakarta Technopark is developing rapidly in terms of digital economy and entrepreneurial ecosystem.

Comparison: Vietnam may be ahead in manufacturing base and technological innovation, but there is still room for improvement in the activity of the entrepreneurial ecosystem.

the Philippines:

Strengths: Clark, Philippines, excels in IT outsourcing and shared services.

Comparison: Vietnam may have more advantages in high-tech manufacturing, but there is still room for development in service outsourcing.

In general, compared with China’s major high-tech zones, Vietnam’s industrial parks still have a large gap in scale, innovation capabilities, industrial clusters, etc. However, Vietnam is catching up quickly, especially in certain sub-sectors (such as electronic manufacturing), which have shown strong development momentum.

Compared with other Southeast Asian countries, Vietnam’s industrial parks have certain advantages in manufacturing innovation, labor resources, etc. However, in terms of high-end services, entrepreneurial ecosystems, and internationalization, they still need to learn from countries such as Singapore and Malaysia.

14.3 In the future, Vietnam’s industrial parks need to:

• Increase R&D investment and enhance independent innovation capabilities
• Improve the industrial chain and strengthen the industrial cluster effect
• Strengthen international cooperation and improve the internationalization level of the park
• Optimize talent policies to attract and cultivate high-end innovative talents
• Learn advanced experience and formulate development strategies according to local conditions

Through these efforts, Vietnam’s industrial parks are expected to occupy a more advantageous position in future regional and global innovation competition.

15.Suggestions and Outlook

Based on a comprehensive analysis of the innovation capabilities of Vietnam’s industrial parks and a comparison with domestic and foreign innovation parks, this section will propose recommendations for enterprises and policymakers and predict future development trends. These recommendations and prospects are intended to provide reference and guidance for the continued innovation and development of Vietnam’s industrial parks.

15.1Suggestions for enterprises

Increase investment in research and development:It is recommended that companies spend at least 3-5% of their sales revenue on R&D, with a focus on the development of core technologies and key products. Consider setting up a dedicated R&D fund to ensure the sustainability of innovation activities.

Cultivate and attract talents:Implement more attractive talent policies, such as equity incentives, career development planning, etc. At the same time, strengthen cooperation with universities, establish talent training bases, and reserve innovative talents for enterprises.

Strengthening Industry-University-Research Cooperation:Actively establish long-term cooperative relations with universities and research institutions, participate in the construction of joint laboratories, and promote the transformation of scientific research results. Consider setting up a special industry-university-research cooperation fund.

Actively participate in international cooperation:Seek technical cooperation with multinational companies and participate in international innovation networks. Consider sending employees abroad for technical exchanges and learning.

Focus on intellectual property protection:Establish and improve the intellectual property management system and strengthen patent application and protection. Consider setting up a special intellectual property department and formulating an intellectual property strategy.

Leverage digital tools to:Comprehensively promote digital transformation and use technologies such as big data and artificial intelligence to improve innovation efficiency. Consider establishing a digital innovation laboratory to explore new technology applications.

Cultivating a culture of innovation:Encourage employees to innovate and establish an innovation incentive mechanism. Internal innovation competitions can be held regularly to create a good innovation atmosphere.

15.2 Recommendations for policymakers

Improve the innovation policy system:Formulate a more systematic and long-term innovation development plan, and improve support policies such as tax incentives and financial subsidies. Consider setting up a national innovation development committee to coordinate innovation policies.

Increase financial investment:Increase government investment in R&D and innovation infrastructure. It is recommended to increase the proportion of national R&D investment to GDP to 2.5-3%.

Optimizing talent policies:Implement a more open talent introduction policy and simplify work permit and residence procedures for high-end talents. Consider establishing a “Vietnam Thousand Talents Plan” to attract high-level overseas talents.

Strengthening intellectual property protection:Improve the intellectual property legal system and strengthen intellectual property law enforcement. Consider setting up intellectual property courts in industrial parks to improve the efficiency of dispute resolution.

Promoting industry-university-research collaboration:Establish a long-term mechanism for collaborative innovation between industry, academia and research institutes, and encourage universities and research institutes to conduct research in response to market demand. Consider setting up a national collaborative innovation fund between industry, academia and research institutes.

Promoting coordinated regional development:Formulate differentiated regional innovation development policies to promote the rational distribution of innovation resources. Consider establishing regional innovation alliances to promote the cross-regional flow of innovation factors.

Deepening international cooperation:Actively participate in international innovation cooperation projects and promote the integration of innovation parks with the international community. Consider setting up innovation liaison offices in major innovation countries and regions.

15.3Forecast of future development trends

Deep integration of digitalization and intelligence:It is expected that in the next 5-10 years, Vietnam’s industrial parks will accelerate digital transformation, and technologies such as artificial intelligence and the Internet of Things will be widely used in production and management processes.

Green innovation goes mainstream:With the world’s increasing emphasis on sustainable development, green technology innovation will become the key development direction of Vietnam’s industrial parks, and fields such as new energy and environmentally friendly materials will usher in rapid development.

The innovation ecosystem is maturing:With the improvement of policy support and market mechanisms, the innovation ecosystem of Vietnam’s industrial parks will be more sound and the collaborative innovation between industry, academia and research will be closer.

Increasing internationalization:It is expected that Vietnam’s industrial parks will be more deeply integrated into the global innovation network, and the number of multinational corporations’ R&D centers and international innovative talents will increase significantly.

Emerging industries are rising rapidly:Emerging industries such as biotechnology, new materials, and high-end equipment manufacturing will form new growth poles in Vietnam’s industrial parks and promote the upgrading of industrial structure.

Innovative SMEs thrive:With the improvement of the entrepreneurial environment and the improvement of supporting policies, a group of innovative small and medium-sized enterprises are expected to emerge and become an important force in promoting innovation.

Regional innovation cooperation strengthened:It is expected that Vietnam will play a more important role in the ASEAN innovation network, and regional innovation cooperation projects and innovation resource sharing will become more frequent.

In general, the innovative development of Vietnam’s industrial parks is in an important strategic opportunity period. Through the joint efforts of the government, enterprises and all sectors of society, Vietnam is expected to establish a more complete innovation system in the next 10-15 years, reach regional leading levels in some areas, and provide strong impetus for the sustained and healthy development of the national economy.