Arabfields, Meriem Senouci, Correspondent, Hanoï, Vietnam — Vietnam has moved up one place to 43rd in the 2026 Global Innovation Index, strengthening its position among emerging economies as the country seeks to turn investment in technology, research and digital transformation into a broader source of economic growth.

The latest ranking places Vietnam 43rd among 139 economies, one position higher than last year. The country has also improved its innovation performance indicator from 37th to 35th globally, reflecting progress in areas linked to research, technology and creative output.

The improvement marks another step in a longer-term rise. Vietnam has gained 16 positions since 2016 and has remained among the economies whose innovation performance exceeds what would normally be expected from their level of economic development.

For entrepreneurs and young technology workers in Hanoi and Ho Chi Minh City, the figures reflect changes that are increasingly visible beyond international rankings. More companies are investing in digital tools, artificial intelligence and advanced technologies, while universities and research institutions are being encouraged to work more closely with businesses.

Vietnam now ranks second among lower-middle-income economies, behind India, and third within ASEAN, after Singapore and Malaysia. Its position has been supported by strong creative production, the expansion of high-tech industries and the presence of three technology companies valued at more than $1 billion.

The country’s progress comes as artificial intelligence becomes a major driver of investment in innovation worldwide. The 2026 index points to a recovery in venture capital and continued expansion in research and development linked to emerging technologies.

Vietnam is seeking to capture part of that momentum. The government has identified science, technology, innovation and digital transformation as key components of its economic strategy and is encouraging greater participation from companies, universities and research institutions.

For businesses, however, the next stage may be more difficult than simply moving higher in the rankings. Vietnam still faces shortages of highly skilled workers, limited international patent activity and a need for greater private-sector investment in research and development.

The government has set a target of placing Vietnam among the world’s 40 most innovative economies by 2030 and in the top 30 by 2045. Reaching those objectives would require the country to maintain its current pace of progress while increasing the quality and commercial impact of research.

The push is also closely connected to Vietnam’s ambition to become a regional technology hub. In recent months, authorities have called on major international companies to expand investment in artificial intelligence, semiconductors and research and development, part of a broader effort to move the economy toward higher-value activities.

The country’s growing technology sector could benefit from that strategy if investment translates into new products, patents and higher productivity. For Vietnamese businesses, the challenge will be to move beyond adopting imported technologies and develop more home-grown intellectual property.

The outlook for the coming years will therefore depend not only on Vietnam’s ability to attract technology investment but also on how effectively it develops skilled workers and converts research into commercial applications.

If investment in research, artificial intelligence and advanced manufacturing continues to increase, Vietnam could make further progress toward its 2030 innovation target. The pace of improvement is unlikely to be uniform, however, and competition from other Asian economies is expected to remain intense.

For students entering technology-related fields and entrepreneurs building new companies, the country’s rise in the innovation ranking offers a sign of a changing economic landscape. The larger question is whether Vietnam can turn that progress into higher-value jobs, stronger companies and technologies capable of competing beyond its domestic market.