Japanese Ambassador to Việt Nam Ito Naoki. — VNA.VNS Photo Việt Đức

The Japanese government recently gave an official development aid (ODA) grant of 300 million yen (US$2 million) to support Việt Nam's National Innovation Center through the United Nations Development Programme (UNDP). The grant will be used to improve the centre's infrastructure, facilities, expand the workforce and establish a social impact fund. Japanese Ambassador to Việt Nam Ito Naoki spoke to Việt Nam News reporter Bảo Hoa about the project.

Why is it necessary to implement this project right now?

Việt Nam is a vibrant economy and growing very fast, and DX (digital transformation) and innovation have become the driving force for that economic development. The leadership for Việt Nam is very much focussed on how to establish an ecosystem of DX and innovation. We know that the National Innovation Center (NIC) has been the key to create an ecosystem for development through DX and innovation in Việt Nam, and that is the very reason why we wanted to provide our grant to the centre, through which the Hòa Lạc campus will be better equipped.

I think it is really timely, as Việt Nam embarks upon this path of growth through innovation and DX. The scale of this project is 300 million Japanese yen, which is equivalent to roughly 50 billion Vietnamese đồng, and the project period covers 18 months. I do hope that this is going to be a very successful and meaningful project that contributes to Việt Nam's growth.

What specific impacts or improvements do you expect the project will have on the National Innovation Center?

One of the key elements of this project is the establishment of a social impact fund, or an impact investment fund.

The NIC already has the Việt Nam innovation funds, so the important thing is we will help create an ecosystem of social impact bonds or investment funds, so that the investment can be used for finding solutions to issues of social concern. I'm sure that, with the expertise of UNDP, as well as the participation of Japanese companies – both of which have already had experience in this particular area – the NIC will be able to create a new ecosystem for innovation and DX, through the use of this impact investment fund for all start-ups. That’s one of the tangible results which we expect out of this grant aid project.

The Hòa Lạc campus of the National Innovation Center, located in the Hòa Lạc Hi-Tech Park on the outskirts of Hà Nội. — Photo vietnamplus.vn

What are your thoughts on the Vietnamese Government's recent focus on innovation and creativity?

We welcome this policy direction taken by the Government, focusing on innovation and DX as one of the pillars. Without a doubt, DX and innovation are the driving force for the economic development of any country, but particularly in countries like Việt Nam, which is capable of recording very high growth. Now Việt Nam is looking at 8 per cent growth down the line or double-digit growth, so you need a key driver for economic development. In this day and age, DX and innovation should clearly play a very important role.

In that sense, we really welcome Vietnamese policy direction to focus on DX and innovation, and I'm sure that Japan can play a role for Việt Nam to develop further in this particular sector. This new direction of policy will provide further opportunities for Japan to expand bilateral partnership, comprehensive strategic partnership with Việt Nam.

What do you think Việt Nam can learn from Japan in terms of creativity and technology breakthroughs?

Japan has gone through a period of high, double-digit growth in the past and has become an advanced nation in terms of innovation and technology. Japanese economic development was sustained by technological development and innovation, so Japan's experience of high growth will be informative for the Vietnamese growth. For example, Kaizen was a business management philosophy that helped Toyota grow from 30 or 40 years ago. It was adopted by other Japanese companies and I think will also be beneficial for Việt Nam.

In terms of infrastructure, the HCM City Metro Line 1 recently started its commercial operation. If you look at the city’s metro system, that is a compilation of Japanese technology, which was the basis for Japanese development.

Việt Nam is now working on the North-South high-speed railway. The Shinkansen is a real example of how technology and innovation can drive the country forward, and also of how the Japanese infrastructure system is sustained by technological developments. I hope that Việt Nam will have a chance to learn from Japan, looking at those successful examples, and understand why Japan grew rapidly in the 1960-70s, and how Japan became a technologically advanced country. — VNS