Vietnam is pushing the transformation to an industrial economy from an agriculture-based one but its rank in the global knowledge economy is quite low.
The country’s knowledge economy index (KEI), which was prepared by the World Bank, is 3.51 whereas that of Singapore, Malaysia and Thailand is 8.44; 6.07; and 5.52, respectively.
Its labor structure has yet changed considerably with 41 percent of the labor force working in industrial sector, 20.6 percent in agriculture and 38.3 percent in service sector in 2010. Meanwhile some 80 percent of the US workforce works in service R&D areas.
The rate of high-tech products also remains low. By 2020, Vietnam expects to increase the rate to around 45 percent of the gross domestic product (GDP), according to the documents passed by the 11th National Party Congress in 2011.
Investment (0.3 percent of GDP) for science and technology development is relatively low in comparison with neighboring countries, with 1 percent in Malaysia and 3 percent in Singapore.
Robert Walter - a global leader in specialist professional recruitment said despite economic hardship in 2012, Vietnam is still thirsty for qualified labor. Currently, the rate of trained labor in Vietnam just reached 35 percent.
One of the most important criteria of knowledge economy is the application of technology in management and business. The majority of our enterprises lack technological information.
According to a recent survey, only 16 out of 82 Vietnamese enterprises have the ideas of renovating technologies, signaling the fact that the components of knowledge economy are now under formation in Vietnam.
In order to facilitate knowledge economy, Vietnam should follow certain solutions. Firstly, the country needs to increase investments in science and technology and develop policies to encourage the development of science and technology.
Secondly, the capacity of scientific research and workforce training must be enhanced as they are the backgrounds for economic growth and for the formulation of knowledge economy.
Thirdly, it is necessary to create a healthy legal environment to spur creativity and renovation while adequate attention should be paid to intellectual property protection and technological transfer.
Fourthly, the process of economic restructuring and growth model transformation should be accelerated.
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