Driving Innovation and Digital Transformation to Improve Lam Dong’s BPI Ranking

Innovation gap weighs on business competitiveness

With a score of 3.26, Lam Dong ranked among Vietnam's lowest-performing provinces in the 2025 Private Business Performance Index (BPI). Provincial authorities identified limited innovation capacity and slow digital transformation among businesses as the primary factors behind the result.

BPI data show an uneven performance across the province's innovation indicators. The strongest area was environmental responsibility, where private enterprises scored well above the national median in sustainability-related metrics. The result reflects Lam Dong's economic strengths in high-tech agriculture and eco-tourism, sectors that have increasingly incorporated environmentally friendly production models.

However, eight of the ten innovation-related indicators ranked at low levels, with several finishing last nationwide.

Among the weakest indicators:

• Only 0.09% of businesses received provincial support for clean technology adoption.
• Average digital solution utilization scored 1.10 points.
• Only 22.68% of enterprises participated in domestic private-sector supply chains.

All three indicators ranked 34th out of 34 provinces and centrally governed cities.

Other weak areas included:

• Companies maintaining dedicated research and development (R&D) departments.
• Businesses investing in process innovation.
• Enterprises allocating at least 3% of annual revenue to digital transformation.

According to the provincial Department of Science and Technology, these shortcomings stem from several structural challenges.

Most local businesses are small or micro enterprises with limited financial resources, management capacity and technology absorption capabilities. The province's innovation ecosystem also remains underdeveloped, lacking research facilities, testing centers and technology commercialization mechanisms. In addition, data sharing and inter-agency coordination for monitoring innovation performance remain insufficient.

Comprehensive reforms aim to strengthen innovation ecosystem

To improve future BPI rankings, Lam Dong is reshaping its approach to technology transfer and digital transformation support.

Authorities are focusing on strengthening enterprises' internal capabilities by promoting technological upgrades across priority industries, particularly deep processing and post-harvest preservation.

Infrastructure development is another priority.

Instead of treating Techfest primarily as an annual event, Lam Dong plans to develop a long-term innovation ecosystem. By 2030, the province aims to establish seven incubators and innovation centers providing shared research and development infrastructure.

The province is also proposing policies to attract strategic investment in key technology facilities, including:

• A Big Data Center in Da Lat or Duc Trong.
• An Agricultural Innovation Center.
• A High-Tech Park.

Authorities are also introducing public procurement mechanisms for technology products and piloting regulatory sandbox frameworks to encourage innovation and accelerate technology commercialization.

Pham Thi Nham, Deputy Director of the provincial Department of Science and Technology, said the province has proposed new policies to remove financial bottlenecks affecting innovation activities.

"We have advised the provincial government to issue resolutions specifying funding mechanisms for science, technology and innovation programs, while supporting enterprises in technology commercialization, intellectual property development and innovation activities financed by the state budget," she said.

The province plans to support approximately 300 enterprises in adopting science, technology and innovation solutions, evaluate the effectiveness of these initiatives, and replicate successful models across the local business community.

Officials also expect policies under Resolution No. 57-NQ/TW on breakthroughs in science, technology, innovation and national digital transformation, together with Resolution No. 68-NQ/TW on private-sector development, to strengthen business competitiveness, improve Lam Dong's BPI ranking, and enhance the province's long-term innovation capacity.