Phan Phuong Tung, Director of the HCMC Digital Transformation Support and Consulting Center (DXCenter) under QTSC, talked to VietNamNet about how to implement Resolution 57 that calls for breakthroughs in science and technology, innovation, and national digital transformation.

Resolution 57 is believed to be a lever that helps Vietnam escape the middle-income trap. Do you think so?

Resolution57 not only supports startups, innovation, and businesses but also promotes digital governance which is a critical factor in helping the country escape the middle-income trap.

According to the World Bank, Vietnam’s per capita income is currently around $4,300, placing it among the lower-middle-income countries. So, there is a large gap between Vietnam and other regional countries, such as Malaysia ($11,900), and Thailand ($7,000), while the gap between Vietnam and Indonesia ($4,900) has narrowed rapidly.

Obtaining upper-middle-income status by 2030 is a challenge for Vietnam, but with current foundations, it is a significant opportunity.

What are the key points in Resolution 57 that will strongly impact Vietnam’s science, technology, and tech businesses?

Resolution 57 sets the target of making the digital economy account for 30 percent of GDP by 2030. It is also expected that businesses with innovation activities will account for more than 40 percent of total businesses.

The financial resources for R&D will be about 2 percent of GDP by 2025, while the state will reserve at least 3 percent of the annual budget expenditure for science, technology and innovation. Of this, 15 percent will be prioritized for strategic technologies such as AI, semiconductors and Big Data.

The commitment on exact funding level and the significant increase in financial resources will help fix the chronic budget shortages which is one of the major reasons hindering long-term research projects.

The resolution also highlights willingness to accept risks in scientific research, removing the “must-succeed” barrier, thereby encouraging scientists to experiment and innovate, and boost R&D activities.

How will Resolution 57 drive the development of concentrated IT Zones like QTSC?

With a commitment to allocate 3 percent of the state budget to science and technology and investments in infrastructure, Resolution 57 could enable IT zones like QTSC to secure funding to upgrade data centers and 5G networks, and attract R&D businesses thanks to preferential policies.

QTSC could also pilot AI, smart cities projects, and collaborate with major corporations thanks to policies attracting experts and investors.

Moreover, QTSC enjoys an additional advantage from the National Assembly’s Resolution 98/2023/QH15, which allows HCM City to apply special mechanisms to develop its economy and society, particularly in high-tech and digital transformation.

The resolution allows HCM City to pilot digital economy models and advanced technologies. QTSC can take full advantage of the special mechanisms to develop projects on data centers, smart cities, and R&D Labs aligning with green, smart urban area policies.

The synergy given by Resolutions 98 and 57 can create a ‘dual push’ for QTSC, enabling it to play a central role in HCM City’s and the country’s IT and innovation ecosystem, positioning itself as Southeast Asia’s leading digital technology hub.

Are there any challenges QTSC are currently facing that need to be solved to meet Resolution 57’s goals?

One of QTSC’s biggest challenges is the unsynchronized technological infrastructure, particularly in 5G coverage and large-scale data centers.

This could affect its goal of ranking among the world’s top 50 in digital infrastructure set by QTSC for 2030. Upgrading infrastructure to ensure sustainable digital infrastructure development and serve state management and the digital economy is an urgent task, and this requires a special financial mechanism for QTSC to operate its infrastructure and the city’s data systems.

QTSC previously benefited from land rental incentives to attract investment. However, the municipal authorities have adjusted the official land price framework, which has increased land prices. This will make costs for land rental increase, which may make investors rethink their decision to invest in QTSC.

The land price increases will prompt investors to seek other areas which can offer lower costs. So, it is necessary to adjust the policy to continue to support and encourage enterprises to invest in the IT sector.

Moreover, QTSC’s high-quality human resources remain limited. It lacks experts in AI and semiconductors, and has had few breakthroughs in R&D, which affects the competitiveness in the region. So, it is necessary to lay down policies to attract talents.

Le My