RFI_Vietnam Innovation Ecosystem.pdf

REQUEST FOR INFORMATION

RFI number: 72044024RFI00001 Posting Date: September 20, 2024 Response Due Date: October 3, 2024 at 17:00 Hanoi Time

To: All Interested Respondents/Parties

The United States Agency for International Development’s Mission to Vietnam (USAID/Vietnam) is issuing this Request for Information (RFI) to inform an upcoming Vietnam Innovation Ecosystem (VIE) activity. This potential five-year award will support the Government of Vietnam (GVN)’s efforts to strengthen Vietnam's innovation ecosystem to drive the development and productivity of Vietnamese value-added enterprises.

The purpose of this RFI is to offer interested parties and stakeholders an opportunity to review and comment on a draft Statement of Work. USAID welcomes any relevant feedback and comments that offerors may wish to share.

This RFI is issued solely for information and planning purposes – it is not a Request for Proposals (RFP) or Notice of Funding Opportunity (NOFO) and is not to be construed as a commitment by USAID to issue a RFP or NOFO or to make an award. Please note that responding to this RFI will not give any advantage or to preclude any organization or individual from any NOFO/RFP that may be subsequently issued as any/all comments received will be strictly for information gathering purposes only. USAID will not pay for any costs associated with responding to this RFI and information received shall become the property of USAID. Therefore, information that cannot be shared should not be sent.

Furthermore, USAID/Vietnam is not seeking technical or cost proposals/applications at this time and will not accept unsolicited proposals. If a solicitation is issued, it will be announced on sam.gov and/or www.grants.gov in the near future.

Responses to this RFI must be submitted by email to me at pkollars@usaid.gov and Van Trinh at vantrinh@usaid.gov no later than the date shown above. Please include RFI #72044024RFI00001 in the subject line. USAID will not respond to individual submission.

Thank you for your assistance and interest in USAID programs. We look forward to receiving your comments.

Regards, /s/

Patrick Kollars Supervisory Contracting Officer http://www.grants.gov/ mailto:pkollars@usaid.gov mailto:vantrinh@usaid.gov

DRAFT STATEMENT OF WORK

I. TITLE OF THE ACTIVITY

Vietnam Innovation Ecosystem1 (VIE) (hereinafter referred to as the “Activity”).

II. PURPOSE

USAID/Vietnam is seeking technical assistance and strategic advisory services to support the Government of Vietnam (GVN)’s efforts to strengthen Vietnam's innovation ecosystem to drive the development and productivity of Vietnamese value-added enterprises.

For the purposes of this Activity, an Innovation Ecosystem is defined as a community of interconnected actors engaged in innovating Fourth Industrial Revolution (4IR) technologies or processes, related resources (e.g., natural environment, social capital, human capital, infrastructure, financing), and a conducive business enabling environment (e.g., legal and regulatory, market systems, and institutional and cultural contexts) to empower the creation, adoption, commercialization, and dissemination of 4IR technologies or processes. This Activity will develop Vietnam's innovation ecosystem by supporting the GVN to strengthen the business enabling environment; strengthening interconnections and resources among actors;

and enhancing the Ministry of Planning and Investment's (MPI) National Innovation Center's (NIC) capabilities to facilitate the ecosystem's development. The purpose of this Activity is to promote Vietnamese Growth-oriented Businesses (GOBs) 2 that are developing, commercializing, or implementing innovative 4IR technologies or processes to realize untapped business growth opportunities, in alignment with Vietnam’s National Strategy on the Fourth Industrial Revolution to 2030 (NS/4IR). By bridging the gap between innovation supply and market opportunities, the Activity will increase the visibility and market reach of local innovatorsions, contributing to economic growth and technological advancement in Vietnam.

III. BACKGROUND

Vietnam has been a global economic star over the last 30 years, during which it has experienced one of the fastest GDP growth rates in the world. From 1990 to 2021, Vietnam’s GDP per capita grew at an average annual rate of 5.3 percent, faster than any other economy in the region, except China. Today, Vietnam needs to increase productivity of the domestic private sector to meet its target of becoming a high income country by 2045. In order to achieve the ambitious 2045 target, the domestic private sector will need to sustain an average GDP growth of 5.9 percent per year. The role of private sector led productivity growth will be

1 The Innovation Ecosystem referred to in this Activity is a network of interconnected organizations, institutions, and individuals (as mentioned in paragraph III.4 of this Section - Stakeholders) that work together to commercialize new ideas and technologies.

It's a collaborative environment where knowledge, resources, and expertise are shared to drive innovation 2 Growth-oriented businesses are defined as entrepreneurs, innovators, or existing businesses that seek to develop and commercialize or implement innovative 4IR technologies or processes to realize significant value-based business growth, as opposed to incremental increases in revenue or net income.

especially important as the country’s historic sources of growth are gradually losing steam:

capital accumulation is constrained by relatively low public investment due to a conservative fiscal policy and implementation challenges, while the contribution of labor supply is also declining due to an aging population. This leaves private sector led productivity growth, in addition to further private sector capital accumulation, as the key growth engine going forward. (World Bank, 2023)

The term “Industrial Revolution 4.0” or 4IR was popularized by Prof. Klaus Schwab of the World Economic Forum. Broadly, 4IR refers to technological innovations built on systems of interconnected components that potentially substitute human decision-making. These "smart" and connected systems leverage vast arrays of core, enabling, and application technologies to sense, predict, and interact with the physical work to make real-time production decisions. 4IR is expected to harness and leverage technologies (e.g., artificial intelligence, the Internet of things, robots, drones, three-dimensional printing, blockchain, smart production, smart cities, renewable energy) to drive a technological paradigm shift in economic behavior and organization. It is broadly anticipated that 4IR will result in disbursed automated manufacturing, digital integration, competitive niche markets and local production, process decentralizations, increased vertical and horizontal integration of value chain actors, systems' self-correction, and heightened demand signal responsiveness. In sum, it is anticipated that 4IR will further increase firm-level and country-level total factor productivity by applying systems of existing and new technologies to reduce economic frictions.

Realizing the potential benefit to the Vietnamese economy, on December 31, 2020, Vietnam's Prime Minister Minister Nguyen Xuan Phuc signed a decision approving the NS/4IR. On January 26, 2021 the Socialist Republic of Vietnam Government News published the translated text.

Driving the design and implementation of this Activity, the NS/4IR indicates that 4IR in Vietnam will require: improving the quality of institutional performance and policy making capacity;

implementing measures to improve the business enabling environment and encourage private sector investment in innovation; strengthening linkages between scientific research, higher education institutions (HEIs), and businesses; and developing a national innovation system that puts businesses in the center and develops linkages to HEIs and research institutes.

The World Intellectual Property Organization (WIPO) characterizes the following three categories of technologies that underpin 4IR3:

● Core technologies - e.g., IT hardware, software and connectivity technologies, including processors, operating systems, network protocols, wireless technologies

● Enabling technologies - e.g., artificial intelligence, 3D printing, user interfaces, geo-positioning systems, smart power supply, data management systems.

● Application technologies - e.g., smart factories, intelligent robots, autonomous driving vehicles, smart farming systems, smart personal devices.

3 Productivity impact of the Fourth Industrial Revolution https://en.baochinhphu.vn/national-strategy-for-4th-industrial-revolution-11140283.htm https://www.wipo.int/edocs/pubdocs/en/wipo-pub-2000-2022-expert-contribution2-en-productivity-impact-of-the-fourth-industrial-revolution-global-innovation-index-2022-15th-edition.pdf

WIPO explains that core technologies constitute the base on which all other 4IR technologies are developed and deployed. The second layer of enabling technologies intermediate core and application technologies by enabling the propagation of 4IR technologies in an economy.

Lastly, application technologies are the autonomous systems of interconnected components that substitute human decision-making.

USAID aims to foster economic growth in Vietnam by promoting collaboration among the public, private, and higher education sectors. This initiative focuses on empowering startups and growth-oriented enterprises with the necessary capacities and support services to successfully enter or expand in regional and international markets. By leveraging the skills of graduates from Vietnamese HEIs, and fostering innovation, products, services, and operational efficiencies will be enhanced. These efforts will support the Government of Vietnam’s trajectory toward achieving high income status by 2045.

IV. STATEMENT OF WORK

1. Theory of Change

If Vietnam's innovation ecosystem is sufficiently strengthened, then Vietnamese enterprises will have the potential to develop and implement 4IR innovations or processes to increase their productivity, enter regional and international markets with value-added products and services, and contribute to fulfilling the GVN's NS/4IR.

2. Overall Objective

Support the GVN's efforts to strengthen Vietnam's innovation ecosystem to drive the commercialization of 4IR innovations and contribute to fulfilling the GVN's NS/4IR.

3. Specific Objectives (not listed in sequence or priority)

1. Improve business enabling environment challenges and constraints to commercialize and implement innovative 4IR technologies or processes, by investing in growth-oriented businesses, to increase firms' productivity;

2. Strengthen the interconnections between actors engaged in innovative 4IR technologies or processes, and furnish support and resources; and

3. Enhance the capabilities of the Ministry of Planning and Investment's (MPI) National Innovation Center (NIC) to facilitate the development of Vietnam's innovation ecosystem.

4. Key Stakeholders and Illustrative Actors

1. Government agencies: central and provincial state agencies, public innovation centers

2. Higher education institutions (HEIs): universities, colleges, academies, research institutions, career placement centers, and HEI innovation centers

3. Growth-oriented businesses (GOBs) 4 : entrepreneurs, innovators, startup, existing businesses.

4. Business support organizations (BSOs): innovation centers and supporting organizations, incubators, accelerators, and business associations, business consultants, lawyers, and accounting firms.

5. Investors: venture capital and private equity firms, angel investors, banks, and insurance companies.

6. Corporates: Vietnamese- and foreign-owned and operated businesses, corporate venture capital and business development offices, research and development (R&D) facilities

5. Key Components and Expected Results

USAID assumes that VIE will be implemented in a context-driven approach to achieve the Activity's Objective and Specific Objectives. Accordingly, detailed annual work plans will be developed in discussion with NIC (i.e., the Activity's Project Management Unit) and relevant stakeholders, and approved by USAID Contract Officer's Representative. This Activity will require the contractor to maintain astute political economy awareness to mitigate threats to required policies and advance recommendations to the GVN to strengthen Vietnam's innovation ecosystem.

Component 1. Enhance public-private dialogue to identify and resolve challenges and constraints to commercialize or implement innovative 4IR technologies or processes, investing in GOBs and increasing firms' productivity.

Sub-component 1.1: Leverage BSOs, the NIC and other other relevant GVN agencies to facilitate public-private dialogue, via workshops, roundtables, technical working group meetings et cetera, to (1) identify barriers to commercializing or implementing innovative 4IR technologies or processes, investing in GOBs, and increasing firms' productivity, and (2) develop recommendations to resolve challenges and constraints in the business enabling environment.

This sub-component focuses on developing the capabilities and capacities of BSOs and the NIC to independently and sustainably convene Key Stakeholders. The purpose of this sub-component is to identify and propose recommendations to improve the innovation ecosystem business enabling environment. Specifically, Key Stakeholder engagement will focus on challenges and constraints to commercializing or implementing innovative 4IR technologies or processes, investing in GOBs and individuals, and increasing firms' productivity. With respect to BSOs, the contractor must identify and provide technical assistance to a select group of BSOs.

These organizations should have existing or highly potential capabilities to convene Key stakeholders to affect business enabling environment improvements in consultation with the NIC and other other relevant GVN agencies.

4 Growth-oriented businesses are defined as entrepreneurs, innovators, or existing businesses that seek to develop and commercialize or implement innovative 4IR technologies or processes to realize significant value-based business growth, as opposed to incremental increases in revenue or net income.

The contractor’s work under this component must include, but is not limited to, the following:

● Determine appropriate number and geographical distribution of BSOs to sufficiently address this component.

○ Develop and apply criteria to selected BSOs to receive the following technical assistance.

● Develop capacities and capabilities of the NIC and selected BSOs to:

○ Convene, engage and strengthen linkages between Key Stakeholders;

○ Facilitate Stakeholders' dialogue focused on the business enabling environment through recurring roundtables, workshops, and networking events;

○ Identify, prioritize and reach consensus on key challenges and constraints to commercializing innovative 4IR technologies, investing in GOBs, and improving enterprises' productivity;

○ Facilitate the development of coherent and actionable recommendations to improve the business enabling environment by address prioritized challenges and constraints;

and

○ Aggregate and synthesize recommendations and integrate projected effects of economic models in presentation to and discussion with the other relevant GVN agencies and authorities.

● Leverage BSOs and the NIC to conduct national innovation enabling environment forums to foster public-private dialogue and linkages with senior GVN officials.

Sub-component 1.2: Strengthen the capacity of HEIs and think tanks to quantify the economic effects of implementing recommendations to resolve challenges and constraints in the business enabling environment.

This sub-component focuses on strengthening the capabilities and capacities of Vietnamese HEIs and think tanks to prepare data driven and dynamic economic models. The purpose of this sub-component is to quantitatively demonstrate or justify positive economic benefits of implementing reforms recommended under Component 1.1. The contractor must identify and provide technical assistance to a select group of HEIs and think tanks with existing or highly potential capabilities to develop and sustainably deliver economic modeling services to BSOs and the NIC.

● Determine appropriate number and geographical distribution of HEIs and think tanks to sufficiently address this sub-component.

○ Develop and apply criteria to selected HEIs and think tanks for the following technical assistance.

● Develop capacities and capabilities of selected HEIs and think tanks to:

○ Provide economic consulting and research services to BSOs and the NIC;

○ Develop policy-driven economic models to project economic effects of implementing business enabling environment reforms (i.e. statistical modeling using Stata, r, python, etc.); and

○ Present orally and in writing the assumptions, driver and projected effects of economic models to BSOs, the NIC, and senior GVN officials

● Develop a community of economic modeling excellence by creating linkages and networks among selected HEIs and think tanks.

Sub-component 1.3: Educate GOBs about legal and regulatory measures to protect and promote commercializing or implementing innovative 4IR technologies or processes, investing in GOBs and individuals, and increasing firms' productivity.

This sub-component focuses on creating awareness and developing an understanding among GOBs and individuals of the existing legal and regulatory measures. The purpose of this sub-component is to provide GOBs with a clear understanding of the legal and regulatory environment as they commercialize or implement innovative 4IR technologies or processes, and or create new legal entities. The contractor must leverage appropriate GVN and or private sector expertise to disseminate accurate guidance. This could include, but is not limited to, partnering with various GVN ministry departments, private sector actors, HEIs and think tanks to conduct seminars and training sessions on relevant legal and regulatory topics (e.g., protecting intellectual property, trademarks, legally securing investment funding, understanding innovation incentive policies, registering a business, tax responsibilities, rights and obligations of enterprises in Vietnam). Additionally, the Contractor must facilitate the sharing of international experience and best practices in relevant topics.

● Collaborate with the NIC to conduct seminars and training sessions targeting GOBs and individuals on relevant legal and regulatory topics related to commercializing or implementing innovative 4IR technologies or processes, creating new legal business entities.

● Provide technical expertise on relevant legal and regulatory topics focused on regional and international best practices to advance and internationalize Vietnam's innovation ecosystem.

Component 2: Strengthen the interconnections between actors engaged in innovating 4IR technologies or processes, and those furnishing related resources.

Sub-component 2.1: Support and develop the capabilities of the NIC, other other relevant GVN agencies and BSOs to design and hold purposeful and value-adding forums for Key Stakeholder actors.

This sub-component focuses on developing the capabilities and capacities of BSOs, the NIC and other other relevant GVN agencies to independently and sustainably convene Key Stakeholders to strengthen interconnections between the innovation ecosystem actors. The purpose of this sub-component is to cultivate resources necessary for GOBs and a dynamic innovation ecosystem. With respect to BSOs, the contractor must identify and provide technical assistance to a select group of BSOs. These organizations should have existing or highly potential capabilities, contacts and market recognition to convene Key Stakeholders in purposeful and value-adding forums.

address this sub-component.

○ Develop and apply criteria to selected BSOs to receive the following technical assistance.

● Develop capabilities and capacities of the NIC, other other relevant GVN agencies and selected BSOs to:

○ Cultivate input from Key Stakeholder actors to identify purposeful and value-adding forum themes and objectives.

○ Design, plan and execute forums to serve the needs and interests of Key Stakeholder actors.

○ Effectively and effectively conduct exchanges of information, experiences, and best practices among Key Stakeholder actors.

○ Facilitate outreach to and engagement with complementary regional and international Stakeholders (e.g., Government agencies, HEIs, BSOs, Investors).

○ Provide needs-based training on commercializing innovations (e.g., developing viable business and financial plans, market analysis and product positioning, managing business operations from startups through growth stages, equity investors' and debtors' requirements).

○ Conduct Investor-led forums to raise awareness of equity investor's requirements to investing in a GOB (e.g., financial due diligence and reporting, enterprise governance, shareholders' rights) and lenders' requirements to lending to a GOB (e.g., financial due diligence and reporting, enterprise governance, creditor or lien priorities).

○ Conduct seminars and forums to promote innovative thinking and creativity to improve businesses’ productivity by:

■ Developing and commercializing new value-added products and services;

■ Upgrading and increasing the value of existing products and services;

■ Implementing innovative 4IR technologies or processes to enhance operational and cost efficiencies.

Sub-Component 2.2: Develop and or enhance the capabilities and capacities of the NIC, other relevant GVN agencies and BSOs to provide fee-based services to GOBs.

This sub-component focuses on developing the capabilities of the NIC, other other relevant GVN agencies and BSOs to sustainably deliver fee-based services. The purpose of this sub-component is to expand the availability of and access of advisors to GOBs on commercializing or implementing innovative 4IR technologies or processes, raising equity, obtaining debt financing, or increasing firm-level productivity. With respect to BSOs, the contractor must identify and provide technical assistance to a select group of BSOs. These organizations should have existing or highly potential capabilities and market recognition to deliver value-added and fee-based services. It is expected that BSOs will have unique capabilities and not singularly be capable of providing the envisioned suite of advisory services under this component.

address this sub-component.

○ Develop and apply criteria to selected BSOs for the following technical assistance.

● Develop capabilities and capacities of the NIC, other other relevant GVN agencies government agencies, and selected BSOs to:

○ Advise GOBs on commercializing innovative value-added products and services (e.g., developing viable business and financial plans, market analysis and product positioning, managing or modifying business operations, evolving from startups to established enterprises).

○ Advise GOBs on enhancing operational and cost efficiencies by implementing innovative 4IR technologies or processes (e.g., quality control practices, international standards and certifications, workplace management systems, enterprise resource planning).

○ Advise GOBs to address and successfully negotiate investors' expectations and requirements (e.g., financial due diligence and reporting, enterprise governance, shareholders' rights) and lenders' expectations and requirements (e.g., financial due diligence and reporting, enterprise governance, creditor or lien priorities).

○ Advise GOBs on practices to develop and continually upgrade products and services to meet new and evolving market-based demands (e.g., market research, trends analysis, product testing).

○ Provide advisory services to help GOBs identify opportunities to maximize efficiency and productivity.

Sub-component 2.3: Facilitate career enhancing interconnections between GVN agencies, public and private HEIs, and the private sector.

This sub-component focuses on strengthening linkages between government agencies, HEIs and the private sector to cultivate a future workforce educated in technical and soft skills. The purpose of this sub-component is to enhance the preparation of, and connect HEI graduates for existing and emerging employment opportunities. This component is not intended to replace or conflict with existing Government mechanisms; it is intended to leverage and optimize interconnections between actors in Vietnam's innovation ecosystem.

The contractor's work under this component must include, but is not limited to, the following:

● Collaborate with relevant GVN ministry, HEI, and private sector representatives to define immediate and future demands of 4IR, business, and soft skills5, and related employment opportunities.

● Enhance HEIs' career placement centers to develop and implement formal internship, externship, and apprenticeship opportunities with Key Stakeholder actors, and with regional and international Corporate actors.

● Facilitate collaboration between private sector actors and HEI's research and development facilities.

● Establish "clubs" with links to Key Stakeholders at HEIs to provide business and soft skills mentoring and coaching services to individual students or groups interested in developing their business acumen, ideas, or startup businesses.

● Conduct forums with Investors to raise awareness of equity investor's requirements to investing in GOBs (e.g., financial due diligence and reporting, enterprise governance, shareholders' rights) and lenders' requirements to lending to GOBs (e.g., financial due diligence and reporting, enterprise governance, creditor or lien priorities).

Component 3: Develop the capabilities of the NIC to facilitate the development of Vietnam's innovation ecosystem.

The focus of this sub-component is to strengthen the NIC's capabilities and capacities to effectively serve their mandate as the focal agency for innovation. The Contractor must build up the management and technical capacity of NICs leadership and staff to ensure the organization's sustained development. Additionally, the Contractor must support and leverage the NIC’s central role to foster collaboration among stakeholders.

● Train NIC personnel on innovation and entrepreneurship management and organizational governance skills.

● Provide tailored technical and leadership training to NIC staff to empower them as effective facilitators of innovation and productivity enhancement.

● Strengthen NIC’s management and technical skills to operate as an one-stop shop fostering the exchange of policies and mechanisms among diverse stakeholders.

● Leverage the NIC’s status as the focal point for Vietnam's innovation ecosystem to strengthen linkages among relevant stakeholders, including international counterparts.

This includes but is not limited to:

○ Strengthening and expanding the NIC sponsored networks (e.g., Vietnamese diaspora) to provide advice and support to GOBs (e.g., coaching and mentorship). The contractor must work with NIC to facilitate connections and collaborations among local and international stakeholders, enhancing the flow of knowledge and resources.

○ Leveraging NIC’s convening power to bring together relevant stakeholders for the purpose of enhancing Vietnam’s innovation ecosystem.

5 For the purposes of this Activity, soft skills are personal attributes and abilities that help an individual interact with business processes and others in a professional setting. Examples include, but are not limited, to communication, leadership, teamwork, problem solving, decision-making, critical and creative thinking.

○ Supporting NIC in utilizing digital technology and platforms that serve all innovation ecosystem stakeholders (e.g., facilitating access to mentoring, resources, and collaboration opportunities). The contractor must ensure that NIC is able to assume technical responsibility for any new systems introduced.

V. Notes

This document includes input USAID received from GVN counterparts – MPI and NIC during the activity design process. Information about NIC (in Vietnamese) can be found on https://www.nic.gov.vn/.

[END OF DRAFT STATEMENT OF WORK]

[END OF REQUEST FOR INFORMATION]

https://www.nic.gov.vn/