Global Innovation Index 2021: Vietnam leads the group of countries with the same income

Vietnam continues to be an example for other developing countries in treating innovation as a national priority. The Government’s use of the EIA as a tool to measure and evaluate the effectiveness of the country’s EIA is the clearest example of Vietnam’s awareness of the importance of EIA for the country’s development.

Speaking at the Innovation Index (GII) 2021 and Vietnam’s Results conference organized by the Ministry of Science and Technology (MOST) on September 21, Mr. Marco M. Aleman – Head of The Department of Solar and Intellectual Property Ecosystems, Assistant – Special Envoy of WIPO emphasized as above.

The workshop was attended online by experts from WIPO, Ambassador, Head of Delegation of Vietnam besides the United Nations, The World Trade Organization (WTO) and international organizations and representatives of Vietnam Science and Technology in Geneva, Switzerland; representatives of ministries, agencies and units assigned to take charge of improving GII index. At the workshop, experts provided the latest information on the results of Vietnam’s GII index in 2021, the adjustments in methodology, the meaning of the index and the issues posed.

Vietnam to catch up with the rise of the world’s EIA index

In the GII 2021 ranking, Vietnam ranked 44th out of 132 countries/economies (compared to 42nd in 2019 and 2020) after WIPO updated its GDP figures according to Vietnam’s new calculations (up about 36% compared to 2020). Although Vietnam maintains its ranking in terms of EIA output (38th) and continues to improve its entry ranking by 02 places (from 62 to 60) compared to 2020, the new and larger GDP value has adjusted Vietnam’s ranking due to many component indicators calculated based on the total value of GDP division (there are 27 indicators). Out of a total of 81 indicators using GDP for calculation, of which 24 use GDP as a model).

Due to the impact of many factors on ranking results, including the influence of calculation and ranking methods, besides ranking positions, GII report also publishes the confidence range of rankings to base when comparing rankings close to each other. In 2021, WIPO published Vietnam’s ranking of 44 and published a confidence interval of this ranking between 42 and 47. In 2020, Vietnam has a ranking of 42 and a confidence interval of 41 to 50. Therefore, if evaluated according to the confidence interval, Vietnam’s GII rankings in 2021 and 2020 are almost the same.

Among the 34 low-middle-income countries included in the GII ranking in 2021, Vietnam continues to hold the top position. Vietnam continues to maintain its ranking in the top 45 countries globally. In the countries ranked above Vietnam in 2021, there are no low-middle-income countries like Vietnam, only 5 countries with high middle income (China, Malaysia, Thailand, Bulgaria and Turkey), the rest are all developed countries/economies, in the high-income group.

According to WIPO’s assessment in 2021, Vietnam’s GII index has outstanding results in terms of market level of development, ranking 22nd, up 12 places from 34th place in 2020 – the highest ranking ever of Vietnam for this pillar. It is also the highest ranked of GII’s seven pillars. In particular, the strongest progress is the index group on Trade, Diversification and market size has increased by 34 places, from 49th to 15th – also the best ranking ever of this index group. Specifically, the tariff rate applied, the average weighting / all products (%) – increased by 61 places (from 82nd to 21st). This is the result of efforts to remove tariff barriers through a series of bilateral and multilateral trade agreements that we have actively participated in in the last few years.

The Domestic Market Size Index increased by 9 places (from 32nd to 23rd). In particular, the new index used in GII 2021 is the diversification of domestic industries (replacing the Domestic Competitiveness Index) with a high ranking, ranking 9th.

Vietnam’s credit index group is always highly appreciated, continues to hold the 9th ranking achieved since 2020, and is the highest ranked index group out of 21 index groups of GII. In this index group, the Domestic Credit index for the private sector (% of GDP) continues to improve by 3 places (from 15th to 12th).

In the index group on EIA Linkage, the index of university-business cooperation in research and development increased by 31 places (from 65th to 34th). The Industrial Cluster Development Scale Index increased by 25 places (from 42nd to 17th). Policies, mechanisms to encourage and support EIA, promote cooperation between the enterprise sector and the school institute, develop industrial parks, economic zones, high-tech parks and small industrial clusters have been promoted, thanks to which the EIA Link index group has improved the most positively ever, up 17 places (from 75th to 58th).

Affirming the effectiveness of investment in innovation

According to WIPO experts, in the context of the Covid-19 pandemic is extremely complex and has many unpredictable impacts, greatly affecting the socio-economic, science, technology and innovation globally, the fact that Vietnam still maintains its position in the top 50 countries is a great effort.

There are many important factors that bring the above positive results, including that from 2017 to now, the Government has used GII as an important management tool, and has assigned ministries, agencies and localities to improve this index, and the Ministry of Science and Technology is tasked with being a common monitoring and coordination focal force. With the strong direction of the Prime Minister, Deputy Prime Ministers as well as the participation of many ministries, sectors, localities, research institutes, universities, enterprises, the GII index of Vietnam has maintained its leading position in the group of low-middle-income countries in recent years.

According to WIPO, Vietnam’s seven GII pillars are higher than the average of the group of countries in the same income group and for more than 10 consecutive years, Vietnam has always had higher EIA results than its development level, showing Vietnam’s effectiveness in converting input resources into EIA output.

In WIPO’s GII 2021 report and WIPO’s GII 2021 press release, Vietnam continues to be stated by WIPO as a learning model”Vietnam is among the 50 GII economies that have made the most significant progress in innovation ratings over time. Together with China, Turkey, India and the Philippines, Vietnam has real potential to change the global innovation situation in the coming years. That’s the key for other countries to learn from countries like Vietnam and join the group of countries that are constantly going up in innovation.”

Mr. Marco M. Aleman – Head of The Department of Solar and Ip Ecosystems, Assistant – Special Envoy of WIPO noted: “Vietnam continues to be an example for other developing countries in considering innovation as a national priority. The government’s use of GII as a tool to measure and evaluate the effectiveness of the country’s EIA is the clearest example yet that Vietnam is aware of the importance of innovation for national development. Other countries are learning from Vietnam how to systematically use GII to assess changes in EIA performance at the highest level.”

Speaking at the workshop, Deputy Minister of Science and Technology Bui The Duy shared that in the past two years, Vietnam as well as most countries in the world have experienced the global Covid-19 pandemic, with a significant impact on the economy, from production, business, research and development to all aspects of life, Certainly, EIA activities are also affected and Vietnam is no exception. However, WIPO assesses that investment in EIA has been maintained throughout the past two years, showing that only investment in EIA is one of the sustainable directions for the world as well as Vietnam to fight the Covid-19 pandemic. The Deputy Minister cited this also reflected in the results of Vietnam’s research and development investment in EIA over the years and timely put into response to the Covid-19 pandemic such as the test kits that Vietnam has researched, manufactured and developed at the right time and put into production, Use in the last two years.

Besides, a series of other results such as Vietnam has researched and developed autonomous robots, high-flow oxygen generators, Nanocovax vaccine research as well as many types of research will be licensed to help quickly control the pandemic. All factors related to science and technology continue to respond to the Covid-19 pandemic as well as fight the breakage in the production and business chain, restore the economy in the coming time … It is also partly reflected in Vietnam’s global innovation index in 2021. The deputy minister stressed.

Ms. Le Thi Tuyet Mai, Ambassador – Head of the Permanent Mission of Vietnam besides the United Nations, WTO and other international organizations in Geneva (Switzerland) said that it can be affirmed in the GII ranking, the position of 44 out of 132 countries is a great effort of Vietnam. The continued retention of Vietnam’s position on EIA in the top 50 countries since 2017 shows that the drastic directions of the Party and Government leaders have been translated into concrete actions of ministries, central and local agencies in improving Vietnam’s EIA capacity. These efforts have been rewarded by GII ratings over the years and especially from 2017 onwards.

Andrew Michael Ong, representative of WIPO’s Asia Pacific Regional Office, said Vietnam needs to have a strategic goal in promoting a variety of innovation. He also mentioned the Mobile Isolation Helmet to prevent Covid-19 Vihelm with ventilation system for doctors of the group of students and said that this is a solution that demonstrates innovation beyond challenges, limitations and resources.

According to experts, in order to continue to improve the capacity of EIA in a sustainable way, it requires basic, long-term solutions, with the coordinated participation of the whole political system with the focus on bringing the national EIA system to a new level of development, in which science and technology really become the pillar of economic growth.