The Ministry of Science and Technology (MoST) of Vietnam and global tech company Ericsson signed a Memorandum of Understanding (MoU) on Wednesday in Hanoi to open an Internet of Things (IoT) Innovation Hub, as reported by Vietnam News.

The agreement states that the IoT Innovation Hub will be located at Hòa Lạc Hi-Tech Park. The Hub aims to foster IoT innovation and collaboration amongst startups and enable them to develop, test, and commercialise IoT applications.

Ericsson also stated that the investment the company made in the country is about building the infrastructure for the IoT platform as well as bringing MoST and entrepreneurs, businesses as well as universities together into an ecosystem which creates technology application on top of the IoT platform

“In the context of globalisation and the rapid development of new technologies in the Fourth Industrial Revolution, Vietnam needs to develop a national strategy to catch up with the trend,” said Minister of Science and Technology Chu Ngọc Anh at the signing ceremony.

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Anh also noted that the country seeks to leverage on the 140 years of experience in technology development and innovation that Ericsson has.

Anh further emphasized the importance of creating favourable conditions for business development by fostering human resources and building synchronous infrastructure system, especially ICT, digital connections, and ensuring network security.

“Vietnam should complete its 4G network and study 5G to meet IoT’s requirements,” added Anh.

“Ericsson fully supports the Government’s ‘National Innovation Network Programme’, which recognises the need for enhancing Vietnam’s innovation capability to meet challenges and capture the opportunities associated with the Fourth Industrial Revolution,” said Denis Brunetti, Head of Ericsson Vietnam and Myanmar cum co-chairman of the European Chamber of Commerce in Vietnam.

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The agreement itself is also a symbol to commemorate the 50 years of bilateral ties between Sweden and Vietnam as well as Ericsson’s 25th anniversary in Việt Nam.

The hub will launch into operation in the first quarter of 2019.

Photo by Joshua Sortino on Unsplash