Ha Noi, 27 February 2025: The United Nations Development Programme (UNDP) and the Embassy of Japan today signed an Exchange of Notes to launch the "The Project for Vitalizing the Vietnam National Innovation Center". This collaborative initiative aims to enhance the innovation ecosystem, empowering Vietnamese businesses, particularly startups, to drive competitive growth, solve social challenges, and contribute to sustainable and inclusive economic growth. This initiative supports Viet Nam’s ambition to become a developed nation by 2045.

The project focuses on strengthening Viet Nam's national innovation ecosystem using a systems approach and engaging key stakeholders such as government agencies, angel investors and venture capital, incubators and accelerators, universities and research academia, business development service providers, start-ups. Beyond supporting these actors and their inter-linkages, the project also seeks to build an enabling environment by enhancing government policies, legal framework, financial capital, market access, and the broader cultural landscape.

A strong emphasis on women’s empowerment ensures that barriers to women's participation in innovation are addressed through assessments and support networks. By analysing data and amplifying women's voices, the project aims to engage at least 30% women-led startups in key initiatives, integrating diverse perspectives into the innovation process. 

“This project comes at a crucial time when Viet Nam is prioritizing investments and breakthroughs in science, technology and innovation to drive long-term, high-quality growth,” according to UNDP Resident Representative in Viet Nam, Ramla Khalidi. Reaffirming UNDP’s commitment to a robust national innovation ecosystem, Ms. Khalidi explained that “by enhancing access to capital, fostering skills, and promoting collaboration, this project will help unlock the full potential of Vietnamese startups”.

Japanese Ambassador to Viet Nam, Ito Naoki emphasizes: “I am confident further development of Comprehensive Strategic Partnership between our two countries. Japan has identified DX and innovation as one of key sectors of cooperation, this means we focus on cooperation to National Innovation Center (NIC), which is a symbolic institution for driving these progresses. I believe that implementing Grant Aid project, to the NIC with cooperation partner UNDP which has a specialized knowledge and experience, is highly timely for this evolutional period in Vietnam.”.And he added the importance of social impact investment to solve the various social challenges facing Vietnam.

The 18-month project focuses on three interconnected outcomes:

• Enabled investment environment: supporting the establishment of the Viet Nam Innovation Fund (VIF) under the National Innovation Center (NIC) focusing on a strong operational model based on international best practices, including clear measures to track progress.

• Strengthened national innovation ecosystem: strengthening Viet Nam's innovation ecosystem by fostering collaboration and connectivity among government agencies, academia, research institutions and businesses. This is achieved through strategic industry-academia partnerships and expanded international collaborations. A key component is establishing a dynamic Incubation Hub (Co-Working Space) in NIC Hoa Lac to help businesses grow faster using design and testing methods. It also fosters co-innovation by connecting Vietnamese enterprises with international institutions to address societal challenges.

• Improved innovation skills and capabilities: developing innovation skills by implementing specialized training programs in areas like innovation management and design thinking delivered in partnership with renowned institutions, equip businesses, innovation hubs, and government officials with the tools to drive innovation.

Mr. Vu Quoc Huy, NIC Director: "This is an important milestone in the long-term and effective cooperation between Japanese partners, UNDP and the Viet Nam National Innovation Center. The results of the project are very practical, meeting the requirements of the Center in 2025 and 2026, especially the completion of the National Innovation Fund model and the establishment of a co-working space at NIC Hoa Lac, with the vision of making NIC Hoa Lac a destination for national and regional innovation."

The project aligns with the Sustainable Development Goals (SDGs), particularly SDGs 8 - Decent work and economic growth; SDG 9 – Industry, innovation and infrastructure; and SDG 12 – Responsible consumption and production. It is also aligned with UNDP's Country Programme for Viet Nam, which emphasizes shared prosperity and innovation as key drivers for overcoming the middle-income trap and enhancing local enterprise competitiveness.