VIETNAM SCIENCE AND TECHNOLOGY OUTLOOK 2016

VIETNAM SCIENCE AND TECHNOLOGY OUTLOOK 2016 Department of International Cooperation, MOST 3/2017

INTRODUCTION Vietnam s economy has been growing fast. Over the last 10 years, the average annual growth is 6.29%. Science and Technology (S&T) plays an important role both in fostering the Industrialization Modernization process and innovating the economic growth model. S&T is considered a primary national policy (Vietnam Constitution 2013, Article 62, Paragraph 1); a national priority as prescribed in various national Resolutions and documents issued by the Government; and the key to ensure a long-term and sustainable economic development as stated in the National Strategy for S&T development in the 2011 2020 period. 2

CONTENTS 1. Overview of S&T in Vietnam 2. Orientation for S&T development 3. Solutions 3

Mapping of actors in the S&T network Association, NGOs Enterprises Universities, colleges, academies Ministries /Sectors MOST Provincial People Committee Vietnam Academy of S&T Vietnam Academy of Social Sciences S&T Organizations Public S&T Organization 4 Private S&T Organization

S&T Organizations According to statistics, Vietnam has approximately 2,230 S&T organizations up till 2016 11.15 times that of 1996 as specified below: Public organizations 5 Private organizations Central Local Central Local 553 521 608 546 Total: 1.074 Total: 1.154 More than 1000 S&T organizations at different levels are research and development (R&D) organizations, which mainly belong to 02 national academies, ministries/sectors, universities, colleges, enterprises and NGOs. There are approximately 420 universities, colleges, academies and S&T service organizations (e.g: S&T information, STAMEQ...) nationwide. The number of private R&D organizations has increased, accounting for more than 52% of the total number of R&D organizations. Upon exercising autonomy and self-responsibility, public R&D organizations have also improved their work performance with higher efficiency.

S&T Organizations In 2016, MOST developed a list of criteria (5-point scale )for evaluating primary research and secondary research organizations that match regional and international standards and have full capacity to solve national S&T key problems. These criterias applied for 66 organizations (Vietnam Academies: 25/ Vietnam National University (NVU) in Hochiminh City :16, NVU in Hanoi: 11 / Hanoi University of Science and Technology (HUST): 14). Results: 06 organizations received a score of approximately 4/5 and above (Vietnam Academies: 03, NVU in HCM City: 03). Given such score, these organizations can be considered matching regional and international standards (equivalent to that of the Institute of Physics and Institute of Mathematics which are recognized and supported by UNESCO). 14 organizations received a score of approximately 3/5 and above (Vietnam Academies: 03, HUST: 06, VNU in Hochiminh City: 01, VNU in Hanoi: 02). Until 2016, there are 3,000 S&T enterprises nationwide, including: 250 certified S&T enterprises, 36 certified high-tech enterprises, 400 enterprises operating in High-tech parks, 818 enterprises fulfilling all criterias to be S&T enterprises and awaiting certification (mostly in Hanoi and Hochiminh City), 1,400 IT software enterprises.

S&T Human resources According to UNESCO, S&T personnel is categorized as below: S&T personnel = Total personnel who obtain a university/college degree and above, including R&D personnel. R&D personnel comprises persons who directly involve in R&D activities, including researchers, technicians, support staff and others. Vietnam currently has approximately 4.28 million people who hold a university/college degree and above, including: 24.3 thousand PhD (41% working in universities, colleges), 101 thousand masters (35% working in universities, colleges) with an average age of 38,5. R&D personnel by qualifications 7

S&T Human resources According to the survey conducted in 2014, the number of R&D personnel is 164.744, equivalent to a rate of 14 persons every 10.000 residents R&D personnel by sector of employment and occupation Sector of employment Total R&D personnel Rate (%) Occupation Researcher Technician Support Staff Others Total R&D 164.744 100 128.997 12.799 15.149 7.799 personnel Public sector 139.531 84,7 112.191 8.898 12.829 5.613 Private sector 20.917 12,7 15.076 2.837 1.569 1.435 Foreign investment 4.296 2,6 1.730 1.064 751 751 8

S&T Human resources Distribution of R&D personnel by sectors of employment 9

S&T Human resources Distribution of researchers in different sectors of employment Percentage of researchers in different sectors of employment 10

S&T Human resources Proportion of researchers by fields of science 11

S&T Investment 12 Since 2000, the percentage of State budget spent on S&T activities has roughly matched the required number 2% of the total State budget(including expenditure for S&T in national safety and security) In the 2011 2016 period, the average expenditure for S&T accounts for 1.46% of the total budget spent (~0.4% GDP) Expenditure for R&D accounts for 40% of the total budget spent for S&T; the remaining budget is for development investment. Other financial sources other than State budget accounts for 40% of total investment in S&T.

S&T Investment State investment in S&T in the 2006-2015 period (billion dongs) (Source: MOST, Ministry of Finance,General Statistics of Vietnam, 2015) 13

S&T infrastructure Key laboratories (PTNTĐ) is one type of R&D organizations that receive governmental funds to buy modern facilities and equipments and become forefront in primary research, primary research oriented towards applied research and technological development. There are 16 national PTNTD at 13 research institutes, 3 universities under ministries, sectors and 1 company focusing on 7 fields of science, including: Biotechnology (5); Information Technology (3); Material technology (2); Automation and machination (2); Petrochemistry (1); Energy (1); Infrastructure (2). These PTNTD attract 726 top scientists, including 528 scientists with full-time employment (34 professors and associate professors; 185 obtaining PhD s and master s degrees, 234 obtaining bachelor s degrees) and 198 scientists with part-time employment (35 professors and associate professors, 54 obtaining PhD s and master s degrees, 32 obtaining bachelor s degrees) 14

S&T infrastructure Up until 2016 Vietnam has: 03 national High-tech Park in three regions: North (Hoa-Lac High-tech Park), South (Hochiminh City) and Central (Da Nang City) with140 projects and a total investment capital of 7.085 million USD. 08 Software cities located in big cities such as Hochiminh City, Da Nang, Hanoi, Hai Phong, Can Tho, Thua Thien Hue (mostly built and went into operation since 2003-2005) 13 high-tech applied agricultural zones in Hochiminh City, Ha Hoi, Thai Nguyen, Son La, Can Tho, Hai Phong, Quang Ngai, Phu Yen, Binh Dinh, Lam Dong, Bac Lieu and Hau Giang. Other cities, provincies in the key economic regions also expect to establish their own high-tech applied agricultural zones. 11 high-tech and start-up incubation facilities. 06 high-tech and start-up incubation facilities under construction or awaiting approval for establishment. 15

S&T publications Annual S&T publications Year Total papers published Increased no. of papers Increased rate(%) 2011 123.610 16.214 2012 140.861 17.251 14,0 2013 159.213 18.352 13,0 2014 177.694 18.481 11,6 2015 196.324 18.630 10,5 16

International S&T publications In the 2011-2015 period, the total number of Vietnam S&T publication as recorded in the Web of Science Database is 11,953 papers, the total number of international S&T publication on ISI journals is 11.791 papers. Vietnam International S&T publication in the 2011-15 period and in 2016 (NASATI and S4VN) 17

International S&T publications Vietnam international S&T publication in 2011 2015 as recorded in the Web of Science Database on March 31, 2016 Year Number of publication Growth rate (%) Number of citations Average number of citations per publication Average number of citations per publication per year 2011 1.584-12.917 8,15 2,04 2012 1.964 23,99 16.509 8,41 2,80 2013 2.509 27,75 12.593 5,02 2,51 2014 2.759 9,96 7.662 2,78 2,78 2015 3.137 13,70 2.413 0,77 Total 11.953

International S&T publications The number of Vietnam international publication in the 2011-2015 period in comparison to other ASEAN countries accessed from Web of Science on 31/3/2016 No. Country Publication 1 Singapore 69.107 2 Malaysia 54.368 3 Thailand 39.226 4 Vietnam 11.953 5 Indonesia 10.679 6 Philippine 7.306 7 Campuchia 1.242 8 Laos 873 9 Brunei 681 10 Myanmar 461 19

International S&T publications 20 As can be seen from the number of Vietnam s international publication, Physics, Maths, Chemistry and Engineering (clinical medicine, computer science, agricultural engineering) are the country s advantages with global impacts. These 4 fields of science account for 44% of Vietnam s international S&T publication.

Patents and other intellectual properties The number of international patent applications from Vietnam is low, but the number of domestic patent application has increased 62% in the 2011-2015 period as compared to the 2006 2010 period (an equivalent of approximately 12% per year). The number of exclusive patent license granted accounts for only 5% of the total number of patent applications. The number of GPHI patent accounts for 65% of the total number of GPHI patent granted. 21

Patents and other intellectual properties Year No. of Patent Applications No. of Patent Grants No. of GPHI Applications No. of GPHI Grants VN Overseas VN Overseas VN Overseas VN Overseas 2011 300 22 48 5 193 1 46 N/A 2012 382 44 52 4 199 1 59 N/A 2013 443 54 59 11 226 0 74 N/A 2014 487 74 36 24 246 0 66 N/A 2015 582 97 63 25 310 4 86 N/A 2016* 475-72 - 276-95 - The number of patent application and patent grants in 2011-2015 and 2016 Source: WIPO, NOIP 2016 (updated till 11/2016)

I. TỔNG QUAN KHOA HỌC VÀ CÔNG NGHỆ VIỆT NAM S&T Contributions High-tech export, which accounts for 10.6% of total regional export, equals to that of Thailand and is only behind Singapore (45.9%), is one of Vietnam s advantage. According to UNESCO s statistics, Vietnam has an impressive growth in high-tech export, which increased 10 35 times as compared to the 2008-2013 period. In 2008 the total value of hightech export is 2,960 million USD while 25 30 in 2013, it reached 32,489 million USD, 20 increasing 997%. 15 Main field of export: telecommunication, computers and laptops, accounting for 10 80% and 18% of the total high-tech 5 export respectively. Most of high-tech 0 export come from FDI enterprises. 2.960 32.489 Năm 2008 Năm 2013

I. TỔNG QUAN KHOA HỌC VÀ CÔNG NGHỆ VIỆT NAM S&T Contributions The contribution of high-tech and applied products towards the total industrial manufacturing value has increased over the 2011-2013 and 2015 period. (in % respectively: 18,46; 26,64; 28,03 and ~ 30% as can be seen below): 35 30 26,64 28,03 ~30 25 20 18,46 15 10 5 0 Năm 2011 Năm 2012 Năm 2013 Năm 2015 24

S&T Contributions According to Asian Productivity Organization (APO) statistics, Vietnam s labor productivity has increased 4.3%/year over the 2010-2013 period, in which TFP accounts for 26% and increasing funding accounts for 74% (as compared to TFP in Thailand 61%, Phillipines 80%, Indonesia 44% and Malaysia 51%) In 2013, increased TFP contributed 32.5% to the increased of total productivity. In 2104, TFP contributed 36.7%. As estimated from 2015, the contribution of TFP to GDP growth would be 48.4%. The contribution of TFP to the whole 2011-2015 period would be over 30%. According to the Global Competitiveness Report 2016-2017, Vietnam ranked 6 th as compared to Singapore (2 nd ), Malaysia (25 th ), Thailand 34 th ), Indonesia (41 st ), and Phillippines (57 th ) in the Global Competitive Index. In 2016, Vietnam ranked 56 th among 140 countries in the world. 25

S&T Contributions The Global Innovation Index (GII) 2016 is the result of the collaboration between the World Intellectual Property Organization, Cornell University and INSEAD. It ranks the innovation performance of 128 countries in the world. GII Report was released on 15 Aug 2016, in which Vietnam ranked 59 th with a score of 35.4/100. Among ASEAN countries, Vietnam ranked 4 th behind Singapore (7), Malaysia (33) and Thái Lan (48). In 2015, Vietnam ranked 52 nd among 141 economies surveyed with a score of 38,3/100. 26

S&T Funding programs Vietnam has changed its funding mechanism for S&T activities via S&T national foundations: competing based on work efficiency. E.g: NAFOSTED, NATIF and several other foundations will soon be established to encourage venture capital in S&T activities. Development of national key S&T programs. Development of specific S&T programs. Projects, programs collaborated with foreign partners. S&T programs for sustainable development.

S&T management system and policies Vietnam has an integrated S&T management system from central to local level (MOST, Department of S&T at provinces and cities centrally governed, Department of S&T at ministries/sectors). There are 09 laws on S&T, including 01 for general S&T and 08 for specific matters of S&T: Law on S&T, Law on Intellectual Property, Law on Technology Transfer, Law on High technology, Law on Atomic Energy, Law on Product Quality and Goods, Law on Standards and Technical regulations, Law on Metrology, Law on efficient and economical use of energy. Many other documents under the law have also been enacted and implemented to encourage and foster S&T activities. S&T policies have been well-adjusted considering all aspects of S&T: finance and investment, human resources, organization, infrastructure, intellectual property, S&T services

II. ORIENTATION FOR S&T DEVELOPMENT Vietnam lay down as a policy that S&T development is first and foremost for the acceleration of industrialization and modernization, growth model innovation on the basis of technological premise, S&T application to manufacturing and sales. Strive to pass other ASEAN countries and transition to the creativity phase, owning technology and manufacturing high-quality products. Adapt to the Industrial Revolution 4.0 with newly updated technology and business model 29

II. ORIENTATION FOR S&T DEVELOPMENT Goals for S&T development and innovation till 2020 In 2020, S&T will contrib ute 35% value to the total econo mic growth thanks to TFP. Hightech and applied product s account s for 40% of total industri al export Technol ogy innovati on rate will be approxi mately 20% Transa ctional value of S&T market increas es at an averag e rate of 15% per year Total invest ment in S&T will be above 2% of GDP in 2020 Establis hment of a networ k of foundat ion for S&T develop ment Highlyskilled S&T person nel A syste m of autono mous and selfrespon sible S&T organi zation Develop ment of S&T enterpri ses 30

III. PRACTICAL SOLUTIONS Renovate organization, management mechanism, S&T activities operation Enhance S&T potentials Continue implementing solutions specified in the Strategy for S&T development in the 2011-2020 period 31 Develop S&T, applications of S&T results in S&T services

III. CÁC GIẢI PHÁP THỰC HIỆN Renovate organization, management mechanism, S&T activities operation Encourage the establishment of R&D organizations within enterprises; develop technology-based enterprises using know-how from universities, research institutions. Implement policies that encourage domestic and international patent applications and GPHI; increase the number of applicants from universities, research institutions Innovate the management of S&T projects, financial mechanism for S&T projects at ministries/sectors/localities. Employ talented S&T personnel to release their full potential and creativity. Develop a simplification-oriented S&T management system, focusing on building strategy, mechanism, policies; enhance multi-sectoral/regional collaboration capacity with proper assignments for appropriate levels; reduce functions that have not yet been in operation. Develop a cooperation mechanism for joint research and technology innovation, human resource development between universities, colleges and research institution Adjust policies on the development of S&T foundations at ministries, sectors, localities and enterprises; Change public S&T organizations to self-control and self-responsible ones. 32

III. PRACTICAL SOLUTIONS Enhance S&T potentials Invest in key S&T organizations; associate S&T organizations of the same characteristics, fields of sciences or intersector; develop young researcher groups at universities, research institutions Enhance capacity and efficiency of high-tech parks, high-tech applied agricultural zones, national key laboratories, technology incubation centers, S&T start-up incubation centers, information and S&T application centers Develop a system of technology transfer service organizations, especially at universities, research institutions 33

III. PRACTICAL SOLUTIONS Develop S&T, applications of S&T results in S&T services Enhance forecast research in development trend, industrial revolution, S&T that impacts Vietnam s development; recommend new economic growth model. Develop S&T areas that are the country s strengths, intersectoral research areas for sustainable development; forecast impacts from disasters, climate changes; recommend solutions to reduce, prevent and adapt to such challenges. Build an overall strategy for development of prioritized technology Enhance manufacturing and sales of S&T products from universities, research institutions Develop different types of S&T services for enterprises, especially for manufacturing, sales and import-export. Build a network of supporting organizations offering services in intellectual property appraisal, valuation, exploitation and development. Research and develop management model for S&T tasks (avoid coincidence, implement reasonable number of tasks with efficiency) 34

III. PRACTICAL SOLUTIONS Continue implementing solutions specified in the Strategy for S&T development in the 2011-2020 period Policies to encourage enterprises operating in S&T, applications of newly S&T research results Build a mechanism for State s order and purchase of S&T research Renovate investment policies for S&T organizations based on efficiency and output Foster socialization of investment in S&T, espcially enterprise investment Policies to attract investment/human resources overseas for S&T activities Policies for S&T personnel development, hiring domestic and international experts using State budget Policies on the use of state-funded research results; build a system of administrative and civil courts on intellectual properties. Policies that encourage the association, cooperation in joint research and technology development between domestic enterprises, universities, research institutes and individuals and foreign partners. Policies to attract foreign-invested R&D institutes in Vietnam Enhance distribution and exchange of experience in organization and operation of S&T activities to establish a sharing network. 35

Thank you 36