The pivotal role of science and technology has been the driving force behind the miraculous economic growth of many countries such as the U.S., China, Germany, Japan, India, Ireland, South Korea, and Singapore, he said at a conference Monday.

Party General Secretary To Lam speaks at a conference on science and technology development on Jan. 13, 2025.

These success stories have demonstrated how technology can transform economic models, boost labor productivity, and enhance global competitiveness.

With the goal of becoming a modern industrialized country by 2030 and a high-income developed nation by 2045, Vietnam must prioritize science, technology, innovation, and digital transformation as its central drivers.

The Party chief said technology is the "golden key" to overcoming the middle-income trap and the risk of lagging behind, paving the way for national strength and prosperity.

Breakthroughs and innovation are critical to achieving remarkable, revolutionary progress, transcending current barriers and limitations, he added.

However, bureaucratic procedures can cost up to 50% of scientists’ time, while the budget allocated for research and development is less than 0.7% of GDP, compared to 2% of developed nations, with some expanding the limit to 5%.

Institutions are hesitant to embrace research risks, hindering the commercialization of innovations. The main reason for the underperformance lies in ineffective execution.

Lam therefore called for the reorganization of the scientific and technological apparatus by the end of this quarter and directed targeted investment to develop strong research institutions.

"The new resolution of the Politburo, therefore, does not seek to replace previous ones but to open the door for new mindsets and actions," he said, adding that when barriers are removed to allow for scientific and technological breakthroughs, the country can thrive in a new era.

Investments in science and technology can result in profits or losses, but they are part of a long-term development strategy for innovation and digital transformation, in which data are the new resources.

The Party General Secretary said all tasks will be monitored and evaluated; successful implementation will be rewarded, while delays or mistakes will be criticized and addressed.

"Weak or irresponsible leaders will be immediately replaced, ensuring the country does not miss development opportunities."

Within this year, all institutional frameworks and policies must be improved, and all bottlenecks and barriers to the development of science, technology, innovation, and digital transformation must be removed.

Creativity should be maximized, and bold thinking, decision-making, and accountability should be encouraged.

Outdated regulations should be abolished outright, and any laws requiring amendments should be promptly revised in a synchronized and streamlined manner, ensuring that a single issue is regulated by only one law.

He urged the implementation of breakthrough solutions to attract leading technology corporations, as well as scientific and technological talents from abroad, including overseas Vietnamese, to work in the country.

Deputy head of the Central Economic Commission, Thai Thanh Quy, said at the same conference that science and technology development and digital transformation must be clearly mapped out in annual programs of government bodies, and qualified professionals need to be appointed at all levels to foster innovation.

He said the government needs to turn institutional frameworks into a competitive advantage for the development of science and technology.

All agencies must focus on resolving bottlenecks, unlocking resources, fostering science, technology, innovation, and national digital transformation, and developing human resources, he said.

He wanted the government to establish trial mechanisms that allow enterprises to experiment with new technologies under supervision and compensate those that suffer losses during such experimentation.

The setting up of venture capital funds to back innovative startups, technology incubation and digital transformation should be encouraged, he said.

He called on government bodies to offer scholarships to attract talented students into streams like mathematics, physics, biology, chemistry, and engineering, especially at postgraduate levels.

Priority should also be given to attracting top-notch lecturers in science, semiconductor technologies, microchips, and other key engineering and technology fields, he said.

He pointed out that the government does not even earmark 2% of its expenditure for science and technology (it was 0.82% in 2023).

Research and development expenditure accounted for just 0.67% of GDP, far below the 2-5% average of developed countries, he added.

Prime Minister Pham Minh Chinh said at the meeting that the new resolution would lead Vietnam into a new era of development during which it would strive to become a developed high-income country with global competitiveness.

Science and technology breakthroughs would enable the country to increase labor productivity, strengthen economic competitiveness, develop new products, and improve production and management, he said.

His government would strengthen its policies to hike spending on innovation and skilling workers and harness digital transformation to improve public administration and ensure national security, he added.

National Assembly chairman Tran Thanh Man said while the legislature has passed many amendments to laws to eliminate obstacles to science and technology development, some limitations and inconsistencies between laws and policies persist.

There are issues related to investment and finance that hamper development, and the country needs transparent changes to the laws to promote innovation, he added.