Wanted Now: A Comprehensive Approach to Innovation

Innovation is a buzzword thrown around without much consideration of the tangibility of the concept. While delivering a healthy 13 Scrabble points, what does innovation mean in practice, especially in emerging economies like Viet Nam? According to the World Bank, for Viet Nam to boost GDP growth, it must improve domestic innovation to improve productivity and reap the subsequent rewards. 

So, What is Innovation?

Innovation is a hot topic, and the tangibility of the concept has been catapulted to the fore with the launch of OpenAI’s ChatGPT in late 2022. While new thinking and technology bolster innovation, real innovative success comes from practically implementing changes and technologies that add value to society, business, or productivity. Innovation implies value creation.  

Innovation streamlines the novel into a practical solution or tool to solve a problem and add value.  

Founder of S22M Giang Huynh commented: “When I was working with conventional data processing tools like Excel, it was obvious that we were missing something operationally. We spent most of our time finding data, rather than analysing it. Although S22M is certainly a high-tech solution, the innovation answers a basic question –  how can this process be more productive and efficient?”  

“In real estate, data is important, therefore, we are always looking for opportunities to innovate and apply technology. When establishing S22M and learning to apply innovation in data management and real estate analytics for Savills Viet Nam, I learnt that innovation facilitates a unique value position and competitive edge. By being innovative in the way we think and do business, we can continue leading in a competitive landscape. Our journey helped us to develop real solutions to real needs, such as giving our clients new ways to interact with data, making us the pioneer in the market.”

Innovation in Viet Nam

In the 2022 Global Innovation Index (GII) Viet Nam ranked 48th of 132 countries. It ranked second after India within the lower middle-income category. However, Viet Nam must recognise that innovation efforts and solutions must be sustainable. This needs serious attention, given the country placed 44th in 2021 and 42nd in 2020.  

Despite a drop in its position since 2020, the 2022 GII report highlights that Viet Nam has the potential for transforming the global innovation landscape. It scores higher than many upper middle-income countries in every pillar, apart from human capital and research.

The Government is committed to transforming Viet Nam into a modern economy that prioritises creativity, productivity, and innovation. The country is moving up the manufacturing value chain, and there are attractive investment policies for high-tech manufacturers. Foxconn recently funnelled an additional US$300 million into its Vietnamese operations, and Samsung will raise its total investment in Viet Nam to US$20 billion with plans to focus on AI and big data. Lego has invested US$1 billion into its state-of-the-art, carbon-neutral facility in Binh Duong.

However, while commitments to smart or high-tech agriculture are topical and receiving policy interest, OECD research from June 2022 highlights that innovation levels in farming are still low. Small, part-time household farms dominate the sector, and although they are open to adopting new approaches, creative innovation is weak. 

Productivity and Growth

Viet Nam holds great potential for utilising innovation to boost productivity. Its strong economic performance, favourable geographical location, solid labour force, export strengths, good reputation in science and technology (S&T) fields, and efforts in developing organisations to support innovation are just a few of its strengths highlighted by the World Bank.  

Given the diverse nature of real estate, the sector presents enormous innovation potential.  

For property management and operations, environmental considerations are part of doing business. Proptech solutions are starting to differentiate buildings and are essential to future-proofing properties. Apps like Property Cube help property managers track operations, density, and resource use. The data-driven approach supports further innovation and informs stakeholders on the areas that require the most attention. Proptech solutions underpin improved environmental performance and operational efficiencies.

Logistics real estate is experiencing steady increases in innovation, with significant automated storage and retrieval systems (ASRS) entering. Automation allows greater storage capacity, saves on power consumption, and boosts warehouse productivity. 

Where Can Viet Nam Improve?

Despite its innovation potential, Viet Nam does face pitfalls. Its inadequate framework for innovation, infrastructure deficiencies, the weak performance of teaching and learning systems, and inadequate public-sector research limit its leap toward innovation.  

Viet Nam ranked 80th on the GII human capital index, with particularly low scores for tertiary education and research and development.  

There is a sense of urgency among innovators and policymakers for technology adaptation and complementary innovations. Even with the opportunities this presents, Viet Nam must be conscious that novel breakthroughs do not always align with its development circumstances. The country also needs to ensure that the level of innovation input does not outweigh the output.

Conclusion

Innovation in Viet Nam has enormous potential to improve productivity and drive GDP growth. While there are significant opportunities, there are areas to improve. Policies must align with development targets, and innovation targets should be quantifiable and achievable, rather than intangible and broad. For Viet Nam, it seems that looking at innovation practically rather than conceptually will be key to meeting its innovative goals.

About S22M

Do you want to access innovative real estate data? No matter if you are planning your entry, expansion, positioning, or marketing strategy, S22M delivers cutting-edge visual dashboards filled with robust data. Giang and her team deliver killer spatials and customisable reports that can highlight national inventories, custom catchment analysis, data and projections at local, provincial and macro levels, or viable demand modelling. Contact Giang for more information.

Learn about S22M and our services: S22M

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