Reorganising the science, technology and innovation system in China and lessons for Vietnam

Abstract

This article analyzes China's experience in restructuring the science and technology system that began in 2023 based on the philosophy of national security protection and national technocracy. This reform in China represents a profound shift towards a centralized, state-led innovation model, in which the establishment of the Central Science and Technology Commission as the highest authority and the “Whole-of-Nation System” is the main operating mechanism. This is not a mere administrative adjustment but the activation of a national mobilization model to respond to external threats, especially U.S. technological sanctions. The Vietnam science, technology and innovation strategy up to 2030 identify enterprises as the center of the science, technology and innovation system. In reality, Viet Nam is currently facing significant challenges in terms of fragmentation, lack of linkages and over-reliance on the FDI sector. This requires adjustments in coordination, domestic capacity building as well as institutional reforms to create a national science, technology and innovation system led by domestic enterprises, similar to how China has implemented in recent years. Policy recommendations for Vietnam from China's experience are to focus on creating a flexible coordination mechanism, prioritizing improving the technology absorption capacity of domestic enterprises, “unshackling” financial mechanisms and university autonomy and positioning the role of the state as the creator of the science, technology and innovation system.

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