Ambassador of Japan to Vietnam Ito Naoki and Resident Representative of the United Nations Development Programme (UNDP) in the country Ramla Khalidi on February 27 signed an exchange of notes concerning the "The Project for Vitalizing the Vietnam National Innovation Center”, with grant amount of ¥299 million (equivalent to nearly $2 million) to support the vitalization of the Vietnam National Innovation Center (NIC).

The project focuses on strengthening Vietnam'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, and startups.

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 per cent women-led startups in key initiatives, integrating diverse  perspectives into the innovation process.  

Addressing at the signing ceremony, Ambassador Ito Naoki emphasized his confidence in the continued growth of the Comprehensive Strategic Partnership between the two countries.

The Ambassador also highlighted digital transformation and innovation as key areas of cooperation, with a particular focus on strengthening collaboration with the NIC, a leading institution in advancing these efforts.

“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,” the Japanese Ambassador noted.

According to Ms. Ramla Khalidi,  this project comes at a crucial time when Vietnam is prioritizing investments and breakthroughs in science, technology and innovation to drive long-term, high-quality growth.

“By enhancing access to capital, fostering skills, and promoting collaboration, this project will help unlock the full potential of Vietnamese startups,” Ms. Khalidi added

Specially, the 18-month project focuses on three interconnected outcomes: 

The first is enabled investment environment: supporting the establishment of the Vietnam Innovation Fund (VIF) under the NIC, focusing on a strong operational model based on  international best practices, including clear measures to track progress. 

The second is strengthened national innovation ecosystem: strengthening Vietnam'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 (Hanoi) 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. 

The third is 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, Director of the NIC, said this is an important milestone in the long-term and effective cooperation  between Japanese partners, UNDP and NIC.

“The results of the project are very practical, meeting the requirements of the NIC 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,” Mr. Huy added