Mission-oriented Innovation Policy Strategy for Promoting the Twin Transition of Vietnam’s Leather and Footwear Industry for the Period 2026-2035

Abstract

Abstract: The Vietnamese leather and footwear industry, with an export turnover reaching 28.67 billion USD in 2025, faces an existential structural bottleneck as the traditional competitive model based on low-cost labor and Cut-Make-Trim (CMT) processing loses momentum. The 2026-2035 period presents critical challenges regarding the “Twin Transition” - the organic synergy between green and digital transformation - institutionalized by mandatory regulations from the European Union (EU) market, such as the Deforestation Regulation (EUDR), the Carbon Border Adjustment Mechanism (CBAM) and the Ecodesign for Sustainable Products Regulation (ESPR). This paper applies the “Mission-Oriented Innovation Policy” (MOIP) framework to analyze Vietnam's current policy gaps. The findings reveal a lack of specific implementation tools to realize Resolution 57-NQ/TW and the Industry Strategy, particularly regarding shared data infrastructure and green transition finance. The paper proposes a four-pillar policy framework for 2026-2035: i) Green material sovereignty through innovation hubs; ii) Development of a national digital data infrastructure for traceability; iii) Creation of circular economy ecosystems in industrial parks; and iv) Unlocking green finance through the carbon market under Decree 119/2025/ND-CP. The ultimate goal is to position Vietnam as a sustainable, transparent and high-value link in the global supply chain.

Keywords: STI Policy, Twin Transition, Leather and Footwear Industry, Mission-Oriented Innovation Policy (MOIP), EUDR.