📖 TABLE OF CONTENTS 📖
To stay ahead, large corporations can no longer rely solely on internal capabilities. Resolution 68-NQ/TW strongly affirms that the private sector will be the key engine of growth where major enterprises are expected to lead the way.
To realise the vision of contributing over 60% of GDP by 2045 and boosting global competitiveness, traditional “closed” mindsets must give way to open innovation. That means actively partnering with startups, research institutes, universities and intermediaries to accelerate R&D, shorten innovation cycles, and drive digital transformation across the entire economy..
I. Understanding resolution 68-NQ/TW: The driving force behind private sector development
On 4 May 2025, the Politburo issued Resolution 68-NQ/TW, marking a milestone in the policy framework for private sector development. A key highlight of this resolution is the significant shift in perception. Once considered a supplementary component, the private sector is now recognised as a crucial driving force, leading innovation, digital transformation, and sustainable development.
The resolution aims to establish a transparent, fair, and stable business environment that enables the private sector to grow strongly, efficiently, and sustainably. By 2030, the private sector is expected to achieve an average growth rate of 10 to 12 percent per year, contribute 55 to 58 percent of GDP, increase labour productivity by 8.5 to 9.5 percent annually, and position Vietnam among the leading ASEAN and Asian countries in technology and innovation. The vision for 2045 is to develop a globally competitive private sector contributing over 60 percent of GDP.
Here are some key highlights of the private economy (Source: Internet)
To achieve these targets, the resolution outlines several key measures. First, it focuses on creating a truly open, transparent, and stable business environment that protects property rights and business freedoms while ensuring fair competition. Notably, the resolution includes plans to abolish fixed taxes for small business households by 2026 to support their development and transition into enterprises.
The resolution also stipulates that enterprises and small businesses shall not be inspected or audited more than once per year, except in cases of clear violations, aiming to reduce administrative burdens and create a stable business climate.
Efforts will be made throughout 2025 to review and eliminate unnecessary business conditions, overlapping regulations, and obstacles hindering private sector growth. Additionally, the state will reduce administrative processing times, compliance costs, and business conditions by at least 30 percent, continuing these reductions in the following years.
The resolution places strong emphasis on science and technology, innovation, digital transformation, and green transition as essential factors for improving productivity and building long-term competitive advantages. The goal is for Vietnam to become one of the top three ASEAN countries and among the top five in Asia in technology and innovation. Private enterprises are encouraged to engage in research and apply advanced technologies such as artificial intelligence and blockchain.
Alongside encouraging businesses, the government will support by developing green credit platforms, implementing interest rate incentives, encouraging financial institutions to lower rates for green projects and circular economy initiatives, and promoting adoption of ESG standards.
The resolution also aims to build a strong and competitive private sector. The spirit of entrepreneurship, innovation, and the development of small and medium-sized enterprises and startups are central priorities. These businesses will receive better access to land, capital, and high-quality human resources, as well as opportunities to participate fully in the national innovation ecosystem. The resolution includes programmes to train 10,000 CEOs, involving experienced entrepreneurs in mentoring, sharing knowledge, inspiring, and providing practical support.
Another important focus is to strengthen connections within the private sector and between private companies, state-owned enterprises, and foreign-invested enterprises to create effective value chains and technology diffusion. Promoting cooperation, knowledge sharing, and technology transfer is seen as a key driver to elevate the entire private sector.
Finally, the resolution sets the goal of developing large private corporations with regional and international competitiveness, acting as leaders to drive the development of Vietnam’s entire private economy.
Resolution 68-NQ/TW is expected to help Vietnam overcome the middle-income trap and achieve high-income status by 2045.
For the private sector to truly become the pioneering force envisioned by the resolution, the approach to innovation must be reconsidered. In a context where knowledge is dispersed, technology changes rapidly, and collaboration is increasingly necessary, open innovation emerges as the most suitable solution for the digital age a time when no one can innovate alone.
II. Open Innovation: A strategic imperative in resolution 68-NQ/TW
In the context of implementing Resolution 68, the traditional closed innovation model, which relies heavily on internal resources and knowledge, may no longer be suitable for achieving ambitious goals in the digital era. Closed innovation, where companies create, develop, and commercialize ideas internally, presents several limitations.
First, this model risks missing valuable ideas and expertise from external sources. In the fast-evolving digital age, knowledge and technology advance rapidly, and no single organization can hold a monopoly on all necessary innovation knowledge. Limiting innovation to internal resources slows development and causes missed market opportunities.
Second, closed innovation often requires large R&D investments and carries high risks. Vietnamese private enterprises, especially small and medium-sized businesses, frequently lack sufficient resources to sustain large-scale independent R&D efforts. Third, this model can lead to duplicated efforts and poor coordination among businesses, reducing the overall effectiveness of the national innovation ecosystem.
In contrast, open innovation is a broader concept: companies not only leverage internal resources but also actively absorb external ideas (inbound) while sharing or commercializing underutilized intellectual property (outbound). This coupled, two-way collaboration enables parties to co-develop solutions, improve efficiency, accelerate innovation, and expand application potential.
Currently, there are four open innovation models:
- Outside-in: Companies seek ideas and technologies from startups, customers, universities, or research institutes to improve products and boost competitiveness.
- Inside-out: Companies externalize internal ideas through research partnerships, technology transfer, or licensing to commercialize innovations.
- Coupled: Combining internal resources and ideas with external partners to create new products or services, maximizing creativity and speeding up innovation.
- Collaborative: Long-term partnerships with multiple stakeholders, including competitors and startups, jointly researching, developing, and commercializing sustainable technologies and ideas.
These models are not just theoretical; many global and regional companies have flexibly applied them in the digital competitive landscape. Depending on their scale, resources, and innovation strategy, companies can select the most suitable approach.
The difference between traditional Innovation Ecosystems and Open Innovation Ecosystems (Source: Internet)
Adopting open innovation offers many advantages: access to a broader pool of ideas and expertise, shorter innovation cycles, reduced R&D costs, shared risks, faster adaptation to market trends, and new revenue streams. This model overcomes the limitations of closed innovation, which demands substantial resources and risks falling behind rapid technological change.
Within Resolution 68-NQ/TW, open innovation is regarded as a framework for reorganizing businesses, especially in the private sector. Instead of operating in isolation, companies need to collaborate closely with research institutes, startups, intermediary organizations, and global partners to harness the distributed knowledge in society. This creates a foundation for sustainable and dynamic growth in the digital age.
III. Why Open Innovation is a core strategy in implementing resolution 68
Open innovation is not merely an innovation model but a key tool to enhance policy effectiveness and foster an entrepreneurial spirit in today’s digital economy. When businesses, especially SMEs, are encouraged to contribute feedback and pilot reform solutions within a flexible legal environment, they become more proactive and develop greater trust in government support policies.
Moreover, sharing success stories of collaboration between startups and corporations, or between businesses and research institutes, serves as powerful inspiration. These real-life examples demonstrate the strength of connectivity and innovation, igniting entrepreneurial enthusiasm and fostering national pride — precisely the first goal that Resolution 68 aims to achieve.
Secondly, open innovation enables regulators to implement legal sandboxes — controlled policy testing environments — allowing the development of flexible legal frameworks tailored to emerging technologies such as digital finance, AI, digital assets, and e-commerce. This approach has been successfully applied in many countries and aligns well with the reform spirit of Resolution 68.
Additionally, digital platforms and open data systems facilitate transparent information sharing and connectivity between businesses, regulators, and partners, helping reduce time, cost, and risk during interactions.
Financial support and infrastructure for R&D and innovation activities are also critical components of Resolution 68. Various financial mechanisms assist businesses, including loans based on cash flow and intangible assets, the ability to deduct 200% of R&D expenses for taxable income, and allocating up to 20% of income to research funds.
Binh Duong Industrial Park (BDIP) (Source: Internet)
Additionally, they can access public laboratories at reasonable costs, benefit from income tax exemptions on capital transfers into innovative enterprises, and receive a 30% reduction in land lease fees for five years if located in industrial parks where at least 5% of the area is reserved for small and medium-sized enterprises and innovative startups.
However, to maximize the effectiveness of these policies, smaller businesses should prioritize co-developing products with larger companies. This approach helps shorten the time to commercialize ideas and enhances the efficient use of resources, which is also a core principle of open innovation.
Science and technology are the driving forces in building a developed country (Source: Internet)
The spirit of tolerance for risk in innovation is another highlight of Resolution 68, reflected in policies such as decriminalizing unintentional acts, refraining from retroactive application of policies, and amending bankruptcy laws to facilitate easier conditions for businesses. These foundational measures give enterprises the confidence to experiment, accept failures, and learn, essential elements for fostering open innovation.
Finally, Open Innovation serves as a practical tool to operate the “four-actor linkage” model Government, Enterprises, Scientists, and Investors which is considered a key pillar driving sustainable innovation in Vietnam. Frameworks and platforms for Open Innovation enable effective interaction and collaboration among these diverse stakeholders, bridging gaps between groups with different resources and objectives.
At the same time, support from platforms like BambuUP a comprehensive information and resource connection platform for enterprises and corporations contributes to creating a dynamic innovation ecosystem aligned with the spirit and goals of Resolution 68.
In today’s context, Open Innovation is not merely an option but a strategic key to successfully implementing Resolution 68. Through this approach, Vietnam can build a dynamic, flexible, and integrated economy that lays a solid foundation for sustainable development in the future.
IV. BambuUP’s “Open Innovation Challenge” Center
Beyond its mission to connect information and provide comprehensive innovation resources for businesses, BambuUP plays a vital role in fostering an increasingly expansive and sustainable innovation ecosystem. A flagship platform demonstrating this commitment is the Open Innovation Challenge Center.
This unique platform is designed as a conducive space where businesses and organizations can share their critical operational and business challenges. What sets the center apart is its ability to link internal business issues with external innovation expertise and capabilities, embodying the true spirit of the Open Innovation model. Specifically, the center supports enterprises in sourcing practical solutions from talented innovation providers both domestically and internationally.
BambuUP Open Innovation Challenge Center (Source: BambuUP)
Regarding its operational process, the Open Innovation Challenge Center encourages businesses to proactively engage in initiating a challenge diagnosis. Upon receiving a proposal, the center collaborates closely with the company to analyze and clearly identify the core nature and root causes of the issue, then jointly develops a specific “challenge brief” designed to attract solutions from the innovation community.
The center is not only theoretical but also highly practical, demonstrated through its “Challenge Rooms” dedicated challenge spaces tailored to each business. The participation of numerous leading companies across diverse sectors such as Phúc Sinh Corp. (agriculture), FPT Telecom (technology), Viettel Telecom (telecommunications), Kingtrees Ecosystem (landscaping), FasLink (apparel), NAGAKAWA Group (conglomerate), Qualcomm (connectivity technology), Smollan (retail), and Thủ Đô Multimedia (OTT) highlights the platform’s potential and real-world effectiveness in solving business problems through collaborative innovation.
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Dung Tran
BambuUP owns a strong resource network, ready to accompany businesses. We have many years of experience in Open Innovation and connections with top industry experts, helping businesses explore sustainable solutions and create long-term value.
We have collaborated with many major companies such as EVN, Heineken Vietnam, FASLINK, DKSH Smollan... in publishing open innovation challenges.
BambuUP proudly stands as a trusted strategic partner, always supporting businesses in innovation activities and a strong green transformation process.
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