IT: Information Technology MOD: Ministry of Defence R&M: Research and Manufacturing STI: Science, Technology, and Innovation S&T: Science, and Technology R&D: Research and Development BO
INTRODUCTION
Rationale
In the current dynamic economic landscape, the integration of science, technology, and innovation is essential for fostering sustainability and ensuring the long-term success of businesses.
Science, Technology, and Innovation (STI) are pivotal in driving economic transformation in today's fast-evolving global landscape They serve as the foundation of contemporary economies, shifting growth models away from reliance on traditional elements like capital, labor, and natural resources, and emphasizing total productivity and technological advancement.
Enterprises are continually advancing their science and technology initiatives to boost innovation and achieve prosperity The promotion of innovation activities has garnered significant interest from researchers, business leaders, and policymakers alike Effective innovation management strategies are crucial for gaining competitive advantages and ensuring sustainable growth For companies operating at the crossroads of advanced technologies and national strategic goals, the integration and promotion of Science, Technology, and Innovation (STI) is essential and unavoidable.
This thesis investigates the dynamics of science, technology, and innovation (STI) management, particularly in relation to the business performance of Vietnamese enterprises A key focus is on Viettel Group, a notable organization under the Ministry of National Defense, recognized for its military ties and substantial investments in STI development, which have led to significant achievements in the sector.
The author chose Viettel Group for a study on its Science, Technology, and Innovation (STI) activities, particularly focusing on the Research and Manufacturing of Defense and High-Tech Industrial Products (R&M Division) This division is essential to Viettel's operations and one of the four key pillars outlined in the group's strategic development goals The research aims to explore how Viettel utilizes STI to drive strategic growth and support national technological progress.
The thesis presents strategies for Viettel to enhance its management of Science, Technology, and Innovation (STI) activities, ensuring a robust foundation that adapts swiftly to technological advancements and market demands By adopting this strategic approach, the R&M Division can strengthen its role within Viettel Group, significantly contributing to national defense and security while reinforcing Vietnam's status as a leader in technological innovation.
Literature review
In recent years, Science, Technology, and Innovation (STI) have become a key focus in Vietnam's socio-economic development strategy, highlighting the nation's commitment to harnessing innovation for growth and competitiveness Numerous studies have explored STI activities across various regions, organizations, and business types, indicating the increasing attention and relevance of STI in Vietnam This growing interest has established STI as a prominent topic in information forums.
The "Strategy for the Development of Science, Technology, and Innovation to 2030," established by Vietnam's Prime Minister in 2022, sets forth clear objectives and actionable solutions aimed at advancing the country's scientific and technological landscape Key focus areas include perfecting the National Innovation System by positioning enterprises as central to innovation, developing high-quality human resources through targeted training, and enhancing international cooperation to integrate Vietnam's innovation ecosystem globally By concentrating on these pillars, the strategy seeks to create an innovative environment that promotes economic growth and improves Vietnam's standing in global innovation rankings.
The "Science, Technology and Innovation in Vietnam" report, produced by the Ministry of Science and Technology in partnership with the World Bank, offers an in-depth evaluation of Vietnam's science, technology, and innovation landscape It features a SWOT analysis, assesses existing capacities, and suggests strategies to enhance innovation within enterprises Additionally, the report highlights the crucial role of government in fostering and supporting the advancement of science, technology, and innovation in the country.
Associate Professor Dr Trần Ngọc Ca has conducted an in-depth analysis of Vietnam's Science, Technology, and Innovation (STI) system, highlighting its achievements and challenges while offering strategic policy recommendations He underscores the significance of learning from international examples, particularly Cuba, to guide Vietnam's STI policy development His insights advocate for improved policy frameworks aimed at promoting innovation and technological progress in Vietnam, addressing the current state of the STI system and proposing tailored solutions that align with global STI integration trends.
“Innovation in Vietnamese enterprises” (Le Thi My Linh, National Economics University, 2019): In-depth research on small and medium enterprises (SMEs), analyzing the role of STI in enhancing competitiveness.
Most research on Science, Technology, and Innovation (STI) development primarily emphasizes macro-level analysis and broad solutions for enhancing overall enterprise performance However, there is a significant gap in detailed studies focused on the specific STI activities of individual enterprises, particularly military organizations like Viettel Group, which have distinct operational characteristics This deficiency is particularly pronounced in the defense product research and production sectors, as well as the high-tech industry, where tailored strategies and frameworks are essential for effective development.
Purpose of research
- Explore and identify existing issues in the management of science, technology, and innovation (STI) at Viettel Group
- Propose solutions to improve Viettel's management of STI activities.
Objects of Research
The organizational model of Viettel Group's R&D and Manufacturing division outlines the functions, responsibilities, and roles essential for managing science, technology, and innovation (STI) activities It includes specific regulations, policies, and guidelines that address various challenges and issues related to effective STI management.
Scope of research
The study focuses on the management of science, technology, and innovation (STI) activities within the R&D and High-Tech Industry division of Viettel Group.
The research scope involves collaboration with various departments and offices at the Group Headquarters, including the High-Tech Industry Board (CNCNC), Finance Department, Investment Department, Strategy Department, IT Department, and Inspection and Audit Department.
The High-Tech Industry Division Unit comprises two key entities: Viettel High-Tech Industries Corporation (VHT) and Viettel Manufacturing Corporation Collaboration with the Boards of Directors of these units, along with relevant departments and offices, is essential for effective management of STI activities.
Research Methodology
In this research dissertation, the author will employ documents, and interview methods to collect data.
The research process will involve reviewing theoretical foundations and methodologies to shape the research direction, followed by designing a questionnaire and conducting semi-structured interviews This approach enables a deeper exploration of relevant topics while ensuring alignment with the research objectives (Adam, 2015).
Statistical secondary data are described and descriptive from the World Bank's Vietnam Enterprise Survey Database The data are also collected from the
Reviewing theoretical and related methodology
The Central Institute for Economic Management and the World Economic Forum provide insights into the current state of technological innovation within Vietnamese enterprises Recent studies highlight global trends in science and technology governance and design Additionally, secondary statistical data regarding Viettel's activities in science, technology, and innovation have been gathered from the R&M Management Department.
The High-Tech Industry Board at Viettel Headquarters oversees the Group's scientific and technological initiatives, focusing on industrial engineering, infrastructure planning, production assurance, and quality management within the high-tech and defense sectors.
1 The author works directly with the High-Tech Industry Board (CNCNC) to understand its functions and responsibilities within the organizational model of the Group, as well as its role and the roles of related departments in the management of science, technology, and innovation (STI) within the Group.
2 Ask permission to review the relevant documents for research, including the organizational model of the Group and the structure, functions, responsibilities, and role of the CNCNC Board Identify STI management activities defined within the Group's functions
3 Develop an interview questionnaire and seek advice from the CNCNCBoard regarding the target audience for the survey on STI management.This includes the CNCNC Board, the Science and TechnologyDepartment, the Industrial Engineering Department, and representatives from the leadership of the R&D Division, including VHT Corporation and VMC Corporation.
4 Interview the High-Tech Industry Board including Directors Managers and Specialists on evaluation for STI Management activities (Refer to Appendix 1 for detailed interview questions).
5 Interview the High-Tech Industry Board including Directors Managers and Specialists on the evaluation of R&M Division top management problems to find out the most STI Management activities issues (Refer to Appendix 3 for detailed interview questions).
6 Interview BOD Representatives of VHT, VMC (M1 + M3) on desire and expectation on R&M Division innovation development This helps to understand the vision and target of Viettel R&M for Development and Goals,(Refer to Appendix 2 for detailed interview results).
7 Combine the interview results and the reports conducted by NTTD and E&Y for evaluation of the critical issues involving STI management only.
8 From the above information, the dissertation will analyze the advantages and disadvantages of Viettel's STI management system.
9 Give some recommendations for the R&M Division to enhance the STI management activities based on current issues and matters that’s R&M Division is facing.
The author leverages comprehensive data from the Viettel Group and R&M Division Units to conduct a thorough analysis of STI management, enabling the formulation of targeted recommendations that directly address the current challenges faced by Viettel.
THEORETICAL FRAMEWORK
Some basic concepts
Management is the process of effectively controlling people and resources to achieve organizational goals It involves coordinating and integrating resources efficiently to pursue objectives According to Henri Fayol in "Administration Industrielle et Générale" (1916), management encompasses preparation, organization, and analysis of organizational resources to fulfill desired outcomes.
1.1.2 Concept of Science, Technology and Innovation (STI)
STI, or Science, Technology, and Innovation, encompasses the systematic quest for knowledge via scientific research, the application of this knowledge to create new technologies, and the dissemination of innovative solutions aimed at enhancing economic performance and societal well-being This definition underscores the vital link between scientific discovery, technological progress, and innovation, which are essential for driving economic growth and advancing society.
2015, "Frascati Manual: Guidelines for Collecting and Reporting Data on Research and Experimental Development").
Technology encompasses the knowledge system of information, material processes, and techniques, incorporating expertise, equipment, methods, and procedures for product creation and service delivery, as defined by the Asia and the Pacific Economic and Social Commission (ESCAP) This definition marks a significant shift from viewing technology solely in the context of physical production to recognizing its application across all social activities The four essential components of technology include: (i) physical means such as machinery and infrastructure; (ii) human capacity, which involves skills, experience, and creativity of users and operators; (iii) information, represented through theories, concepts, and accumulated knowledge; and (iv) organizational aspects that define responsibilities, relationships, and coordination among individuals to enhance operational effectiveness.
Technology Management (TM) is a strategic discipline that leverages technology and organizational resources to create value and competitive advantage It encompasses aspects of science, engineering, and management, focusing on enhancing technological capabilities from national policies to individual business practices Policymakers foster innovation in science and technology for national security and sustainable development, while at the firm level, management decisions dictate the necessary technologies and development strategies to create new products and improve competitiveness.
Innovation involves the implementation of new or significantly enhanced products and processes in business operations, both internally and externally (OECD, 2005; 2015) As defined by the OECD (2015), innovation encompasses research and development (R&D) activities; however, it is important to note that not every R&D effort results in innovation.
Innovation can be categorized into two main types: radical innovation and incremental innovation Incremental innovation focuses on enhancing existing technologies or structures for new purposes, while radical innovation, often referred to as disruptive innovation, fundamentally alters business models and displaces previous technologies Harvard professor Clayton Christensen introduced the concept of "sock-break technology," which illustrates how certain innovations can disrupt industries by rendering old technologies obsolete While incremental innovation may involve some research and development, disruptive innovation typically relies heavily on R&D The innovation process encompasses idea generation, opportunity recognition, concept design, problem-solving, and the market launch of new products.
H.D Phi (2011), new ideas including designs, know-how, and formulas are simply sub-factor of the knowledge factor (K) among the three-factor of the technology equation, which is used to transform the input into products or services In most cases, technology is considered a tangible or intangible asset depending on its nature; Innovation is mainly treated as the means, method, or process for the development of technology or technological capabilities Dr. H.D Phi (2011) also proved that “To many extents, innovation means technological innovation and the management of innovation can be understood as a process within the processes of technology management.” Logically, any functional management involves systematic activities of building and executing its strategies, plans, and sub-plans Promote systematic innovation in the organization, including planning (Strategy, policy), organization (building an organization that supports creation), management (operating and working assurance), and inspection (Tools, measurement and testing, monitoring). Thus, similar to technology management, to achieve high efficiency, innovation management must also be deployed from the national level to the enterprises At the national level, there is a national innovation system (NIS).
The National Innovation System (NIS) plays a crucial role in fostering innovation by establishing a legal framework, while universities, research institutes, enterprises, and intermediaries contribute to the creation of innovative products and a robust national innovation ecosystem At the corporate level, managers must embrace their responsibility to drive innovation within their departments to enhance job performance and overall enterprise success The CEO's role is pivotal in aligning innovation activities with the company's strategic objectives Ultimately, the effectiveness of these innovation efforts is reflected in the company's competitiveness and sustainability relative to its peers, highlighting that effective management of Science, Technology, and Innovation (STI) is essential for long-term success and maintaining a competitive edge.
1.1.5 Science, Technology and Innovation (STI) Management
STI Management, as defined by the OECD, refers to the strategic planning, organization, coordination, and control of science, technology, and innovation activities Its primary goal is to achieve strategic objectives, promote technological advancement, and enhance socio-economic development This management approach involves overseeing resources, policies, and strategies to bolster innovation systems, improve competitiveness, and tackle societal challenges.
Technology and Innovation Policy Review").
This definition highlights the structured approach to governing STI activities,ensuring that scientific research, technological development, and innovation efforts are effectively aligned with organizational and societal goals.
External factors that influence the STI management
External factors play a crucial role in shaping the environment for Science, Technology, and Innovation (STI) activities within enterprises Key influences include the strength of value chain linkages, geographic proximity among stakeholders, and institutional support, as noted by Romijn and Albaladejo (2002) Additionally, Nguyen (2015) emphasizes the importance of research and development collaboration, technological advancements, connections with expert associations, and innovation-promoting policies Ultimately, these external factors can be categorized into institutional frameworks, collaborative networks, and distinct industry characteristics.
Innovation is a critical driver of economic growth, leading countries to adopt policies that promote innovation-led development These strategies emphasize the importance of Science, Technology, and Innovation (STI) as essential elements for enhancing national competitiveness and economic expansion By integrating STI advancements with job creation, nations can thrive in the global economy Successful STI policies leverage the global innovation ecosystem, ensuring that innovation permeates all sectors and fosters competitive, internationally-focused business models To develop effective research, technology, and innovation policies, it is essential to understand the key components of the innovation ecosystem, including the business environment, regulatory framework, and environmental innovation policies, with the STI policy environment being vital for supporting business innovation and sustaining economic growth.
Strengthening collaboration between enterprises and research institutions enables them to leverage their strengths, share resources, and enhance productivity This integration of R&D outcomes has become a global standard for innovative companies Such partnerships are built on mutual benefits, risk-sharing, and complementary expertise, facilitating technology exchanges and promoting a seamless cycle of scientific research, product development, and market application.
The partnership model, a key element of national innovation systems, arises from market and knowledge-based economies It involves collaborative economic activities such as scientific research, product development, marketing, and consulting among businesses, universities, and research institutes This collaboration aligns consumer demands with mutual economic benefits, utilizing various strategies within a market-driven context.
Strengthening relationships between businesses and academic or research institutions is essential for converting scientific and technological advancements into productive forces This approach enhances the utilization of technological resources, financial capital, and economic capabilities, while incorporating science, technology, and innovation (STI) into national financial frameworks By promoting these connections, countries can unlock their innovation potential, stimulate economic growth, and maintain competitiveness in the global market.
In the era of Industry 4.0, enterprises across various sectors face unique innovation demands as automation reshapes traditional economic activities With robots increasingly assuming roles once held by humans, the significance of Science, Technology, and Innovation (STI) is on the rise Rapid growth in technology-driven industries is often eclipsing and transforming conventional sectors Notably, industries such as information technology, nanomaterials, energy, logistics, and biomedical engineering are in urgent need of swift transformation.
Industries like hospitality, innovative design, electronics, and manufacturing are evolving by integrating advanced technologies to boost efficiency and productivity Although robots and computers cannot fully replace human roles, leveraging these tools is essential for professions at risk of obsolescence Embracing science, technology, and innovation (STI) is vital for adapting to new trends and ensuring sustainable growth in the changing global economy.
Internal factors that influence STI Management
The thesis identifies five key elements that influence an enterprise's STI management: STI Management capabilities, Leadership support, Finance Support, Infrastructure support, and Technology absorption capabilities.
STI strategies significantly influence STI activities by impacting organizational employees, as noted by Smith et al (2008) These strategies encompass various aspects that shape the innovation process, and they consist of four key elements.
To align with corporate culture and overall vision, businesses must upgrade their research, technical, and growth plans, ensuring all employees understand the Science & Technology (S&T) and Innovation strategy to achieve goals Research by Kenneth et al (2015) highlights the importance of a clear S&T strategy in enhancing innovation capacity, while Lawson (2001) emphasizes the critical connection between vision, strategy, and effective innovation management A well-defined S&T strategy guides resource allocation and adapts to environmental uncertainties, making a clear vision essential for driving innovation This strategy should include a detailed action plan to meet innovation goals (Johnston and Bate, 2007) and is crucial for fostering innovation (Pane et al., 2003) Integrating a well-planned S&T strategy with business strategy ensures alignment in vision and mission (Wong, 2005) Additionally, Kowang (2015) points out that combining design, strategic communication, and leadership commitment significantly influences innovation efficiency Ultimately, successful enterprise innovation strategies must integrate business, intellectual property, and research and development (Samson, 2005).
Table 1.1: Enterprise Innovation Management Model
Senior managers are vital in fostering STI activities by creating an environment that enhances creativity and knowledge utilization They provide insights into employees' motivations to innovate and solve problems, addressing their needs for empowerment and self-efficacy The encouragement from senior leadership is essential for promoting research and technology, enabling organizations to adapt to changes in volatile environments Their support significantly influences organizational knowledge, creating a resource-rich atmosphere that encourages knowledge sharing among employees Studies indicate that senior management's incentives positively impact employees' willingness to share knowledge with colleagues.
Effective business management plays a crucial role in shaping the growth and investment strategies of a company Managers assess whether their organization is fostering innovation and make decisions that are influenced by various factors, including the owners' risk tolerance and judgment capabilities, which can be affected by age, gender, and education.
According to studies by Delbecq & Mills (1985), Wong (2005), Cooper
According to Kleinschmidt (2007), insufficient STI resources hinder innovation success, while Smith (2008) emphasizes that both general and financial resources significantly influence STI activities through human factors, such as employees Metrick and Yasuda (2011) further assert that organizational funding is crucial for effective STI initiatives, indicating that financial support has a positive impact on STI activities.
According to Triguero and Corcoles (2013) and Segarra and Teruel (2014), the financial aspect of a business is crucial for managing its operational capacity, which in turn supports innovation and development Larger enterprises tend to experience more positive effects on their innovation efforts, as those with greater revenue and workforce are more likely to engage in Science, Technology, and Innovation (STI) activities However, successful implementation of STI initiatives necessitates significant investments in finance, machinery, and human resources, making it feasible primarily for businesses with adequate resources.
Infrastructure encompasses the essential physical and organizational structures, such as buildings, roads, and power supplies, vital for the functioning of a society or enterprise It serves as the foundational framework that supports economic activities, facilitates social interactions, and enables the provision of public services.
Hirschman (1958) highlighted the importance of infrastructure in facilitating productive activities and driving economic development, asserting that it establishes connections that promote wider industrial and societal advancement.
From a contemporary perspective, scholars like Baldwin and Dixon
Infrastructure is defined as a network of interconnected structural elements that serve as a framework for development and operation This definition includes both physical and digital components, as well as institutional elements that are vital for the functioning of modern economies and societies.
STI infrastructure is fundamental to fostering innovation ecosystems, enabling technological breakthroughs, and achieving strategic national and organizational goals in science and technology.
STI infrastructure is crucial for progress, driving knowledge advancement through research and fostering technological innovations It stimulates economic growth by converting ideas into new products and services, supporting entrepreneurship, and generating jobs Globally, it enhances competitiveness, enabling nations to thrive in high-tech markets and attract investments Additionally, it tackles societal challenges such as climate change and healthcare, improving quality of life and reducing inequalities As a cornerstone of innovation ecosystems, STI infrastructure is essential for sustainable growth, economic resilience, and overall societal well-being.
Cohen and Levinthal (1990) propose that organizations' external knowledge is the primary determinant of S&T capacity and innovation.
Absorbent capacity is the ability to acquire, assimilate, transform, and exploit knowledge to determine an organization's innovation and power level (Cohen
Research by Cohen and Levinthal (1990) and Daghfous (2004) indicates that a firm's absorption capacity enhances organizational learning and R&D efforts Schilling (1998) emphasizes that companies can expand their knowledge and skills through competency absorption, which leads to improved assimilation abilities and more effective future information utilization, thereby boosting technology development efficiency Consequently, a company's absorption capacity significantly influences the efficiency of its science and technology activities and innovation outcomes (Minhyung Kang & Mi-Jung Lee, 2017).
Jiménez-Barrionuevo et al (2019) found a significant positive relationship between absorption capacity and science, technology, and innovation (STI) activities, highlighting their role in establishing a competitive advantage for organizations Additionally, Joe Tidd (2021) demonstrated that certain competencies stem from a long-term process of knowledge accumulation and investment, which are fundamentally linked to a business's absorption capacity.
Absorption capacity encompasses the ability of a company's employees, the physical conditions of the organization, and its adaptability to change This capacity is rooted in the knowledge and learning capabilities of both leaders and employees, which are crucial for successfully navigating technological advancements.
In the Introduction, the author outlines key definitions and concepts related to management, including STI (Science, Technology, and Innovation), technology management, innovation management, and STI management Additionally, the author identifies common internal and external factors that impact the STI activities of independent enterprises and organizations, drawing on research findings from various scholars in the field.
Therefore, grasping and understanding STI activities' factors will help evaluate an enterprise's STI capacity comprehensively.
The upcoming section of the thesis will outline the current status of Viettel's Science, Technology, and Innovation (STI) activities The author will assess everyday scenarios and analyze aggregated data and statistics from advanced countries to provide recommendations for the STI initiatives of Viettel's Research and Management Division, ensuring they align with contemporary development trends The analysis model will be detailed below.
Table 1.2: Diagram of Research analysis
CURRENT STATUS OF STI MANAGEMENT IN VIETTELL
Viettel STI Management
2.1.1 Viettel Group Formation and Development
Viettel was established on June 1, 1989, initially named the Electronics and Informatics Equipment Company, under the General Department of
The Military Electronics and Telecommunications Company, originally established under the Ministry of National Defense to construct and maintain military communication lines, rebranded in 1995 to expand into the civilian sector, offering VoIP fixed-line services and telecommunications infrastructure By 2004, the company launched Viettel Mobile, rapidly establishing itself as Vietnam's leading mobile network operator In 2009, it evolved into the Viettel Military Industry and Telecoms Group, diversifying its focus to include high technology and industrial sectors.
From 2010 to 2020, Viettel expanded internationally, beginning in Cambodia in 2006 and ultimately operating in 10 markets across Asia, Africa, and the Americas During this period, the company enhanced its research and development in telecommunications, defense, and digital technology Since 2020, Viettel has emerged as a leader in 4.0 technologies, including AI, 5G, IoT, and Big Data, spearheading digital transformation and innovation with ambitious goals to rank among the world's top companies.
150 largest corporations by 2030 and a pioneer in the Fourth IndustrialRevolution.
Today, Viettel is Vietnam’s largest telecommunications group and a trailblazer in defense technology and innovation, making significant contributions to economic growth and national security.
Viettel’s core Business industries include:
• Research and manufacturing of telecommunications electronics equipment
By 2035, Viettel Group aims to rank among the world's top 100 corporations, focusing on technological innovation and digital transformation The Group plans to lead in 6G network development while transitioning to a digital service provider with integrated solutions for governments, businesses, and individuals Viettel will adjust its product portfolio to a 10/90 ratio of military to civilian products, emphasizing scalable dual-use technologies and manufacturing advanced defense systems, including next-generation satellites and AI-enabled tools Committed to driving Vietnam's national digital transformation, Viettel will develop smart cities, e-government platforms, and digital healthcare systems, alongside AI and Big Data centers to foster innovation.
Viettel aims to expand its international footprint to over 30 markets, particularly in Africa, Latin America, and South Asia, while establishing global R&D centers to harness advanced technologies The company plans to triple its R&D investments to drive innovation in AI, IoT, Big Data, semiconductors, and quantum computing, creating world-class innovation hubs in Vietnam to attract global talent Financially, Viettel targets annual revenue growth to reach $50 billion by 2035, optimizing costs and enhancing operational efficiency through digital transformation and AI-driven tools To support these objectives, Viettel will cultivate a competitive workforce through strategic talent acquisition, advanced training programs, and partnerships with top educational institutions, fostering a culture of creativity, agility, and excellence.
Viettel as a global powerhouse in technology and innovation, driving Vietnam’s economic growth, digital sovereignty, and national security.
Table 2.1: Organization of Viettel Group
(Source: Viettel Group) 2.1.2 Viettel R&M Division Foundation and Development
Viettel is transitioning from a telecommunications service provider to a digital service provider, aiming to diversify revenue streams through digital channels and develop new business models with technological and product advantages.
Viettel aims to uphold its leadership in Vietnam's telecommunications and IT sectors while significantly contributing to the development of high-tech industrial complexes The company is engaged in the research and production of strategic weapons and defense equipment, including dual-use products that utilize military technology These initiatives play a vital role in the strategic integration of national defense with the country's economic, cultural, and social development.
Viettel’s Research & Manufacturing (R&M) Division, identified as the central pillar expected to drive breakthrough innovations in the group’s innovation process through advancements in science and technology.
The History of Formation and Development of Viettel in Military Research and High-Tech Industry is shown as follows:
Initial Stage (1989–2006): Laying the Foundation for Military Research
Founded in 1989, Viettel's primary mission was to build and repair military communication lines to support national defense Initially, the company concentrated on small domestic projects, supplying essential equipment and communication technology for the military This period was vital for laying the groundwork and gaining experience in military research and development.
Expansion into High-Tech and Defense (2006–2010): Dual-Use Orientation
Since 2006, Viettel has been at the forefront of developing dual-use technologies that serve both civilian and military purposes The company has invested significantly in modern laboratories to enhance its research and production capabilities for military products, including communication devices, encryption software, and surveillance radars This strategic focus not only addresses domestic needs but also positions Viettel to export its defense technology products globally.
Comprehensive Development and Technology Expertise (2010–2020)
Viettel has undergone a significant transformation, advancing in various aspects and mastering key technologies to meet both current and future demands This phase highlights the company's development of military communication devices, surveillance radars, airspace management systems, and unmanned aerial vehicles (UAVs) By 2020, Viettel positioned Vietnam as the 9th country globally capable of producing radar systems and UAVs Additionally, the company focused on cutting-edge technologies like 5G, catering to both civilian and military applications.
Leading Innovation in Defense (2020–Present)
Viettel has established itself as Vietnam's premier defense enterprise, emphasizing the advancement of high-tech and defense technologies The Group effectively utilizes artificial intelligence (AI), Big Data, and cloud computing for military system management and operations Furthermore, Viettel is actively researching integrated technology solutions such as satellite systems, guided missiles, and cyber defense systems, contributing to Vietnam's growing self-reliance in modern defense capabilities.
Viettel aims to establish itself as a top player in the global high-tech defense industry by investing in research and development to fulfill domestic defense requirements and export advanced defense products This strategic approach enhances Vietnam's standing in the international arena.
The general level and relationship between units in Viettel's R&M
Source: Research and Manufacturing Division High-Tech Industry Board in Headquarters takes responsible for:
• Managing the scientific and technological activities of the Group.
• Researching, advising, advocating, and implementingstate mechanisms and policies in the fields of science, technology, and industry for the
• Overseeing theindustrial engineering of the Group, including: ü Infrastructure planning and production assurance, ü Standards, measurement, and quality management in high-tech and defense industries.
• Providing direction, critique, and appraisal of strategies, roadmaps, plans, and technology development projects in the Group's industrial sectors.
• Managing products in the high-tech industrial sector of the Group,
Effective management of business activities in a high-tech industrial unit involves proposing and developing policies for product commercialization, monitoring project implementation and revenue recognition progress, and coordinating business activities between research and production units.
The Viettel High-Tech Industry Corporation (VHT), formed in March 2019 through the merger and reorganization of multiple branches, focuses on technological research, positioning the R&M Division as a strategic business unit.
The Viettel Equipment Manufacturing Corporation (VMC), previously known as M1 and M3 Information Companies, manufactures and processes products for domestic and international partners, supporting various group operations.
Figure 2.1: Vision of R&M Division of Viettel
The R&M Division aims to evolve into a profitable global high-tech industrial group, transitioning from a defense-focused enterprise to a civilian-oriented business model This shift involves navigating a competitive market and addressing the challenges of innovation across all business units Strategic innovation is crucial for enhancing the research, development, and production processes The revenue model has shifted dramatically from an 80/20 defense-to-civilian ratio to a 20/80 ratio, necessitating swift decision-making and effective risk management by the Group's Board of Directors and unit leaders to achieve ambitious growth targets.
Viettel Group utilizes an integrated science and technology management model aimed at enhancing the research, development, and implementation of cutting-edge technologies across military and civilian domains This approach encompasses several essential components that drive innovation and efficiency.
The Group's science and technology (S&T) initiatives are guided by the Party Committee and the Board of General Directors, ensuring centralized management of all activities Viettel implements a structured oversight system to effectively manage and direct its S&T operations.
(1) Party Committee: Leads the organization and implementation of S&T activities; Passes resolutions on policies related to major and important S&T programs, projects, and initiatives.
(2) Board of General Directors: The General Director has comprehensive directive authority and approves S&T programs, projects, and initiatives.
Delegates and authorizes Vice General Directors specializing in different fields to manage and direct S&T activities accordingly.
(3) Sectoral S&T Councils: Viettel organizes Sectoral S&T Councils, chaired by specialized Vice General Directors, with members comprising leaders from relevant management units Currently, Viettel has three S&T Councils:
• S&T Council for Military, Dual-use, and Emerging Technologies
These councils advise the Board of General Directors on S&T strategies and plans and review S&T initiatives before submitting them for approval by the Chairman of the Group.
The Group's primary science and technology (S&T) management agencies consist of the High-Tech Industry Board, Technical Board, and Information Technology Board, complemented by S&T Departments at the unit level that oversee related activities In total, 24 personnel are dedicated to managing S&T within the Group, including 7 at the Group level and 17 across various units.
(5) Functional Support Units for S&T Activities:
• Supporting units at the Group level include: Finance and Accounting Board
• Sectoral Departments within individual units
These entities oversee financial management, asset control, human resources, procurement, legal compliance, and adherence to corporate and governmental regulations.
(6) S&T Execution Units: The primary S&T execution units at Viettel include:
• Viettel High-Tech Industries Corporation (VHT): Researches and manufactures high-tech defense industry products and telecommunications infrastructure.
• Viettel Aerospace Institute (VTX): Develops high-tech weaponry.
• Viettel Manufacturing Corporation (VMC): Focuses on mastering manufacturing technologies for high-tech products and supporting industries.
• Viettel Semiconductor Technology (VSI): Develops and masters semiconductor chip design.
• Cyber Security Company and Data Services & Artificial Intelligence Center: Develop cybersecurity solutions and cyber warfare tools.
• Other Viettel Group entities, such as:
Each of these has dedicated R&D and technology innovation teams supporting their respective business operations.
Assessment of Viettel STI Management
Based on interviews with the Leader of the High-Tech Industry Board and leaders of VHT and VMC (M1+M3) regarding STI management challenges, the author collaborated with the S&T Department at Viettel Headquarters to gather information and assess the issues faced by the R&M Division The findings reveal insights into the current status of S&T management, particularly concerning the organizational structure, which was evaluated through the organizational model, establishment decisions, operational regulations, and discussions with leaders in the Viettel High-Tech Industry Boards.
The R&D Division has created models and outlined specific functions and tasks tailored to the management of science and technology Within the organizational structure, dedicated units are assigned to oversee science and technology management, ensuring comprehensive functions in this area.
To enhance the management of intellectual property (IP) in science and technology (S&T) management, it is crucial to address undocumented aspects and integrate them into daily research and management activities A thorough review of management policies and mechanisms, including regulations, processes, and implementation guidelines, was conducted through interviews with leaders in Viettel High-Tech Industry Boards This approach aims to strengthen the overall framework for IP management within the organization.
The VMC Corporation has established a comprehensive system of documents for science and technology (S&T) management that aligns with the Group's regulations This system includes specific processes and regulations such as the S&T Development Fund, S&T Regulations, guidelines for preparing S&T budgets, and S&T settlement regulations, ensuring effective management and oversight of S&T initiatives.
VMC Corporation has not reissued the decision to establish the S&T Council as per the existing S&T regulations Additionally, an examination of regulatory documents revealed the provision and utilization of tools and equipment for effective S&T management across various fields within the unit.
The CNCNC Division has created S&T management software, but its full implementation is hindered by numerous classified projects, preventing uniform management of comprehensive project information across the unit and relevant authorities of the Group Additionally, personnel quality is assessed through task assignment decisions and established position standards.
The NCSX CNCNC has successfully fulfilled the requirements for vertical management, ensuring that personnel are well-organized and actively engaged in training programs to continually update and enhance their professional skills and expertise.
The current staffing levels for managing Science and Technology (S&T) activities are below the approved limits, which negatively impacts the quality of project dossier reviews prior to submission to the Group The performance quality of S&T projects and tasks is evaluated based on annual task results aligned with the unit’s annual plan, adherence to corporate and unit regulations, and the execution of ad-hoc plans and directives from higher authorities.
The units successfully met their science and technology targets as scheduled, with the approval and acceptance of institutional-level projects conducted in accordance with established regulations Additionally, adjustments for Group-level projects were made within the authority granted to the Group.
Viettel primarily focuses on Application Research and Experimental Design to develop products that meet the needs of the Ministry of Defense and the market However, basic research activities remain limited, primarily addressing core technology topics without alignment to a comprehensive development strategy This limitation stems from ongoing project demands and the current organization of the research team, as well as the business environment, where each project must demonstrate business efficiency, making it challenging to quantify the value of basic research These factors highlight key issues in Viettel's STI management and illustrate the differences between its R&D organizational model and those of international enterprises.
Source: according to the synthesis of the R&M Management Department of Viettel from major corporations such as Samsung, Apple, and Huawei.
Effective R&D project management faces challenges due to the use of disparate tools by various teams, leading to a lack of linkage and synchronization This results in difficulties for managers in tracking project status and monitoring quality, particularly for projects involving multiple divisions Additionally, many project topics lack scientific rigor, often merely describing tasks without in-depth analysis, and fail to engage the appropriate experts for consultation and evaluation during the review process.
Effective production process management is hindered by the absence of tools that connect design departments with production units The manual handling of design data updates and changes in production units results in time-consuming coordination and increases the likelihood of errors during updates.
Effective product data management is crucial in the product development process, which involves navigating multiple stages and handling large volumes of complex data with various versions Additionally, inadequate management of input sources, including materials, components, suppliers, and customer lists, complicates commercialization efforts This lack of organization can lead to challenges when addressing customer feedback and issues, especially when updates are not implemented promptly.
The project and task approval and acceptance rates are currently below expectations, with only 13 projects approved, representing 35% of the six-month target for 2024 The acceptance rate is more promising, with 7 projects accepted, achieving 78% of the plan However, the settlement approval remains low, with only 7 projects settled, completing just 29% of the target Specific performance rates include VHT at 33% for approvals, 60% for acceptances, and 45% for settlements; VTX at 40%, 100%, and 16%; and VAI at 40%, 100%, and 100%, respectively.
The current management of Viettel's R&M Division is characterized by a discrete and cumbersome approach, with many procedures being managed manually This leads to heterogeneous design, knowledge, and data, making it challenging to share information and requiring significant resources Consequently, this management status has severely restricted the Division's capacity for STI management.
Factors that Influence STI Management
The Ministry of National Defense (MND) has established a comprehensive legal framework that includes the Law on Science and Technology, the Law on Technology Transfer, and various circulars for managing science and technology funds, military-technical cooperation, and defense product design Specific decrees related to Viettel's operations, particularly the capital allocation mechanism for after-tax profits that allows the MND to purchase its products, have created a conducive environment for high-tech research and development This framework not only ensures a market for Viettel's innovations but also encourages investment in research, skill enhancement, and product quality, reinforcing Viettel’s crucial role in Vietnam’s national innovation system.
Viettel faces significant challenges in its operating environment, including ambiguities in laws related to science and technology development funds that hinder research collaborations, particularly concerning intellectual property rights Limitations on the use of these funds for startup investments further restrict innovation potential The lack of clear procurement and investment mechanisms complicates access to essential materials and components, exacerbated by complex management procedures Additionally, compliance with extensive public investment regulations to access 30% of its allocated budget leads to considerable delays and resource strain.
The Defense Industry Ordinance in the defense sector lacks specific guidelines regarding the role of enterprises in developing the defense industry, leading to inconsistencies in product orientation and response strategies To address these issues, it is essential to refine the legal framework, streamline processes, clarify the roles of enterprises, and establish mechanisms that enhance Viettel's efficiency and contributions to national defense and technological innovation.
Viettel is strategically committed to innovation and growth through partnerships with academic institutions, domestic businesses, and international tech entities Collaborations with local institutions such as Hanoi University of Technology and the National University of Vietnam enhance its capabilities and foster technological advancements.
Ho Chi Minh City is prioritizing human resource development and collaborative R&D initiatives, while Viettel has partnered with over 120 entities in 35 countries, actively showcasing its offerings at major global defense exhibitions Nevertheless, challenges remain, including a disconnect between academic research and Viettel's application needs, as well as obstacles in investing in external research infrastructure due to cooperation and regulatory issues Security and confidentiality requirements further restrict defense product collaborations, limiting comprehensive partnerships Although some enterprises address specific manufacturing needs, most collaborations are confined to memoranda of understanding, hindered by high-tech demands, substantial investment requirements, and security concerns To enhance these partnerships, Viettel needs customized mechanisms and policies to effectively navigate these complexities and align external contributions with its strategic goals.
Global technological shifts are significantly shaping Viettel's R&D priorities, particularly with the rollout of 5G networks that has established the company as a leader in the field Viettel's development of a 5G ecosystem, highlighted by the innovative 5G Digital Front End (DFE) chip, marks a significant achievement for Vietnam's semiconductor industry The rise of artificial intelligence (AI) has also propelled Viettel's progress, showcased by its AI Human, Vi An, at MWC 2024 In response to increasing global cybersecurity threats, Viettel has enhanced its cybersecurity solutions to protect its infrastructure The strategic importance of semiconductors has led Viettel to pursue Vietnam's goal of self-reliance in this sector Furthermore, international collaborations, such as with United Telecoms Group in India, have been fostered to advance 5G infrastructure and defense product development These global trends are reshaping Viettel's R&D focus, solidifying its position as a leader in innovation within the telecommunications and technology sectors.
Viettel has experienced four key stages of development, showcasing its strategic growth Initially, the company operated as a contractor, building telecommunications infrastructure in challenging environments with limited resources In its second decade, Viettel transformed Vietnam's telecom landscape by making services more accessible The third decade saw the company expand into research, production, and international markets, launching innovative mobile services and solutions for network security By its 30th anniversary in 2019, Viettel entered its fourth stage, aiming to "Pioneer the creation of a digital society" and becoming integral to Vietnam’s National Defense Complex This transformation involved establishing six critical areas: digital infrastructure, digital solutions, digital content, digital finance, network security, and high-tech industrial production by 2020.
Viettel's strategic emphasis on the defense and electronics sectors reflects the principles of the Military-Industrial Complex, fostering collaboration between government and defense companies for mutual gain Adhering to Vietnam’s 2008 Law on High Technology, Viettel utilizes its expertise to create advanced military and dual-purpose high-tech products that strengthen national defense while also modernizing industries and benefiting society This dedication to research and production serves as a cornerstone of Viettel’s growth, solidifying its position as a leader in Vietnam’s digital transformation and industrial modernization.
Figure 2.2: Mission of Viettel towards 2029
Source: Viettel High Tech Industry Department
Viettel faces significant challenges in a rapidly evolving market due to external factors like policy changes and unforeseen circumstances, which often require shifts in research priorities and can lead to inefficiencies Misalignment between product development strategies and business objectives, coupled with inadequate market research, has resulted in underperforming products and slower development compared to competitors, exemplified by ViettelPay Furthermore, the lack of comprehensive frameworks for IT development hampers efficiency, as R&D activities remain predominantly manual or semi-automatic, with inconsistent and fragmented investment These challenges highlight the necessity for a more integrated approach to strategy, resource allocation, and technological advancement to boost productivity and market responsiveness.
Viettel's impressive success is a result of collective efforts and visionary leadership throughout the years, fueled by a strong commitment to innovation Since its founding, the company has adhered to its motto of "creativity, breakthrough, and difference," which has shaped its current identity and slogan.
The organization's commitment to innovation is evident at every level, with leaders highlighting its significance in everyday activities and promoting a culture where every individual and department plays a vital role in developing creative solutions.
Viettel's motivational strategies focus on establishing ambitious goals that challenge traditional thinking and drive innovation By incorporating innovation into performance metrics, the company keeps employees motivated to exceed limits To address emerging challenges and explore new areas, Viettel forms small, agile teams that promote flexibility, rapid responses, and creative solutions.
Viettel's innovation strategy heavily relies on collaboration with startups, harnessing their fresh ideas to enhance existing solutions This partnership not only supports startups with Viettel's vast resources and customer base but also fosters mutual growth and innovation As Deputy General Director Do Minh Phuong notes, this symbiotic relationship allows smaller entities to maintain agility while Viettel provides the necessary scale and impact for successful implementation.
Viettel's leadership also encapsulates its innovation ethos in its eight core cultural values, emphasizing "quick adaptation as competitive power" and
Creativity is essential for leaders at all levels, who must effectively balance their roles as managers, leaders, and experts By empowering their teams, sharing knowledge, and fostering robust research groups, they are equipped to face new challenges This comprehensive strategy positions Viettel as a leader in innovation, propelling progress and shaping new realities in the digital era.
Viettel underscores the importance of science and technology in its development by dedicating 10% of its pre-tax profits, approximately VND 4,000 billion, to its Science and Technology Development Fund for R&D activities This investment is significantly higher than that of comparable institutions, being double the budget of the Research Institute and 40 times the National Defense Department's allocation for similar initiatives The fund supports diverse R&D projects, allowing Viettel to integrate telecommunications and IT solutions into various aspects of society Furthermore, the government and the Ministry of Defense promote the procurement of Viettel's homegrown products, fostering a technology product market that enhances Viettel’s production capacity, product quality, revenue, and profitability.
Overall Assessment of Viettel STI Management
The analysis of Viettel's Science and Technology (S&T) Management highlights both its strengths and limitations in innovation management Supported by party and state leaders, Viettel benefits from a robust infrastructure and extensive experience in technology application With significant financial and human resources, the company is well-positioned for growth However, to remain competitive amid rapid technological advancements and increasing enterprise rivalry, Viettel must enhance its approach to applying science and technology for innovation Current state policies still contain elements that hinder R&D activities, and Viettel has not been proactive in influencing policy development, which poses challenges to its innovation trajectory.
High-tech products often suffer from inadequate market research, resulting in a lack of customer-centric design The absence of a clear product development strategy creates ambiguity and hinders effective planning Additionally, there is a noticeable deficiency in component development strategies, alongside a lack of cohesion and synchronization among research and development, business objectives, and intellectual property strategies.
In sum: The restrictions that must be improved are below:
In an interview with the Leader of the High-Tech Industry Board, Mr Nguyen Manh Hai, it was highlighted that collaboration with leaders from VHT, VMC (M1+M3), E&Y, and the S&T Department is essential to address the challenges faced by the R&M Division The report on R&M Division STI management activities presented to the Head of MOD underscores Viettel's commitment to overcoming these issues from the Group's perspective.
Ensuring Economic Efficiency
Viettel emphasizes economic efficiency in its science and technology activities, despite the absence of mandatory government regulations R&D projects receive approval only when they demonstrate clear market demand, offer competitive advantages over existing products, and possess the potential to recover research and development costs.
Setting High Goals
Viettel is focused on creating next-generation products that align with those from advanced countries, defining success as 40% achieved upon product development, 70% upon entering the domestic market, and 100% upon successful export.
Research Timeline Goals: Viettel sets strict deadlines to meet Ministry of National Defense requirements.
2 to 3 years for the first-generation product to be production-ready.
1 to 2 years for subsequent generations (longer for large or specialized systems).
Industry Formation Goals: Each field Viettel enters must evolve into a sustainable industry, built on core technologies and continuous product development, optimizing resources and accelerating new product rollouts.
Self-Reliance and Internal Capabilities
Autonomous Research: Viettel ensures self-reliance by mastering system design, integration, testing, and core technologies, limiting external dependence to component-level technology transfers.
Self-Funded R&D: Viettel sustains profitability across all sectors to maintain its S&T Development Fund, ensuring financial independence for innovation investments.
Strengthening Collaboration
Domestic Cooperation: Actively partners with military and civilian entities to accelerate R&D by leveraging their expertise.
Viettel actively engages in international collaboration by partnering with small companies, research groups, and technology experts to foster joint development and facilitate technology transfer Additionally, the company participates in global technology organizations and standards bodies, enhancing its research and development initiatives.
Attracting, Retaining, and Motivating R&D Talent
Competitive Salaries: Viettel offers wages in the top 25% of the market to attract and retain top-tier researchers.
Recognition and rewards play a crucial role in fostering innovation, with incentives provided for patents and scientific publications Outstanding researchers receive honors, including military rank promotions from the Ministry of National Defense and General Staff, acknowledging their exceptional contributions To maintain research efficiency, underperforming individuals may face reassignment or replacement.
This approach ensures Viettel remains a leader in high-tech defense and telecommunications innovation, fostering a strong internal ecosystem for technological advancements.
In the next Chapter III, the thesis gives some suggestions for improvement for the Viettel R&M Division based on findings aboved.