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Innovation of Vietnamese enterprises in the context of Industrial Revolution 4.0

Evidence from enterprise surveys and case studies

Vietnam was ranked 48th out of 132 countries and economies in the 2022 Global Innovation Index (GII). This position in the GII also places Vietnam third in ASEAN, following Singapore (7th) and Thailand (43rd). Over the past decade, Vietnam has been among the countries that have made significant progress in fostering innovation.

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Innovation has become an inevitable and imperative trend that cannot be delayed, and it undoubtedly brings valuable opportunities to enterprises. Let us explore the three most important reasons behind this paradigm shift:

1. Innovation and effective reforms enhance firms' ability to adapt to changes in the dynamic business environment. The recent Covid-19 pandemic has been the most significant "test" for the sustainability and stability of enterprises.

2. Innovation and effective reforms are the driving force behind growth. Real innovation and effectual reforms must add value and propel growth, and successful innovation can significantly contribute to net growth for firms. 

3. Innovation and effective reforms help improve the competitiveness of enterprises. This is considered one of the main factors determining competitiveness and creating sustainable values for enterprises.

Although the benefits of innovation are undeniable, the ability to innovate and harness the advantages of 4.0 technology depends greatly on the internal capacity and strength of enterprises. Based on this premise, a joint survey between the Institute for European Studies and the KAS Foundation Vietnam Office on "Innovation of Vietnamese enterprises in the context of Industrial Revolution 4.0: Evidence from enterprise surveys and case studies” was carried out in 2022 in 31 enterprises representing the FDI and private sectors in Bac Ninh, Da Nang, Dong Nai, and Ho Chi Minh City. The survey was also conducted in the form of in-depth interviews with state management agencies responsible for promoting innovation.

Experts at the dissemination workshop held at the Institute for European Studies (IES) premise on 17th July 2023 shared: “While the survey was small-scale with a modest sample size, its findings were fairly reliable, of high quality, and accurately reflected the current state of innovation in enterprises”. The full draft of the survey report titled "Innovation of Vietnamese Enterprises in the context of technology revolution 4.0 - Evidence from enterprise surveys and case studies" can be found in this article.

In recent years, innovation has been a key theme in the cooperation between the KAS Foundation Vietnam Office and the IES. In 2023, we seek to delve deeper into this topic through a research survey with the theme " Entrepreneurship and Innovation in Agriculture in Vietnam - Current Situation and Policy Recommendations".


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Vu Thi Thu Phuong

Vu Phuong

Project Manager +84 24 3 7186194 /17 +84 24 37186197


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