UNDP and Japan Collaborate to Enhance Vietnam's Innovation Ecosystem
On February 27, 2025, the United Nations Development Programme (UNDP) and the Japanese Embassy signed an exchange agreement aimed at boosting Vietnam's innovation ecosystem. This initiative seeks to fortify the capabilities of local startups, address social challenges, and contribute to sustainable economic growth.
The project aligns with Vietnam's ambitious goal to achieve developed country status by 2045. It embraces a systematic approach to enhancing the national innovation ecosystem, involving various stakeholders, including government agencies, angel investors, venture capital funds, business incubators, universities, research institutes, and entrepreneurs.
By fostering collaboration among these parties, the initiative will create favorable conditions through policy refinements, financial support mechanisms, market access, and the nurturing of an innovation culture. A significant focus will also be placed on empowering women by eliminating barriers to their involvement in innovation fields.
Ramla Khalidi, the UNDP representative in Vietnam, emphasized the significance of the project, stating, "The project will help maximize the potential of startups in Vietnam." She reiterated the UNDP's commitment to enhancing the national innovation ecosystem, aiming to increase access to capital and improve skills and collaboration.
Japanese Ambassador to Vietnam Ito Naoki described the collaboration as pivotal for strengthening the Comprehensive Strategic Partnership between the two nations. He remarked, "I believe in the stronger development of our Comprehensive Strategic Partnership," highlighting Japan's focus on digital transformation and innovation as key areas of cooperation.
The project is set to span 18 months, with three primary outcomes planned. The first is to establish the Vietnam Innovation Fund (VIF) under the National Innovation Center (NIC), creating transparent operational models guided by international best practices.
The second outcome seeks to solidify the national innovation ecosystem by enhancing collaboration among government bodies, academic communities, research institutes, and enterprises through strategic partnerships and international cooperation. This includes the establishment of an Incubation Center at NIC Hoa Lac, where businesses can accelerate their development using design and experimentation methodologies.
The final outcome involves enhancing skills and innovation capabilities. This will be achieved through specialized training programs on innovation management and design thinking, partnering with top organizations to provide local entrepreneurs and NIC officials with the necessary tools for promoting innovation.
Vu Quoc Huy, director of the National Innovation Center, commented on the importance of this collaboration, stating, "This is an important milestone in our long-term cooperation," emphasizing the project’s practicality and timeliness amid Vietnam's current developmental phase.
Through this initiative, Vietnam aims to address several Sustainable Development Goals (SDGs), particularly SDG 8, focused on decent work and economic growth; SDG 9, aimed at building resilient infrastructure, promoting sustainable industrialization, and fostering innovation; and SDG 12, which promotes sustainable consumption and production patterns.
By aligning the project with the UNDP's National Cooperation Program, the emphasis remains on sustainable prosperity and innovation as integral drivers to propel Vietnam beyond the middle-income trap and to bolster the competitiveness of domestic enterprises.