Sandbox model drives technological innovation

In the context of the fourth industrial revolution, a controlled testing mechanism, commonly known as a “sandbox,” is increasingly recognized as an important policy instrument for promoting innovation and technological development.

Nguyen Minh Quang (right), Deputy Director of the Department of Science and Technology, visits an exhibition featuring innovative technology products during Techfest Dong Nai 2025.

The sandbox model is expected to help advance the development of science, technology, innovation and digital transformation in line with the orientation set out in Resolution No. 57-NQ/TW.

Developing technology and innovation

A sandbox is a controlled testing mechanism that allows enterprises and organizations to test new technologies, products, services, or business models within a limited legal framework and under the close supervision of state agencies before formally scaling them up. According to many experts, the sandbox mechanism should not only help remove regulatory barriers but also serve as a "safe space" for testing new technologies, management models, and policies before they are widely adopted.

Dr. Le Van, Director of the Financial Technology Program at the Innovation Institute of the University of Economics Ho Chi Minh City, said that implementing sandboxes for digital business models would encourage innovation and experimentation in a secure environment. Evidence shows that transforming processes, business models, and data connectivity not only improves operational efficiency but also promotes innovation, enabling enterprises to create distinctive value and strengthen their competitive advantage in the digital economy.

Speaking at a thematic seminar held in early July 2026 on "AI Applications and Innovation Ecosystem Linked with Digital and Green Transformation for Sustainable Business Development," Nguyen Minh Quang, Deputy Director of the Department of Science and Technology, said that Dong Nai greatly needs support from experts and scholars at major universities. He said the locality hopes these experts will offer recommendations on innovation policies and effective sandbox mechanisms that can be appropriately applied in Dong Nai, thereby creating a strong launchpad for the local startup and innovation ecosystem.

Dong Nai has many competitive advantages in regional connectivity and economic development in Southeast Vietnam. As the sandbox model gains momentum through efforts to promote science, technology, innovation and digital transformation, the city has additional opportunities to pursue its sustainable development goals.

Assoc. Prof. Dr. Nguyen Thi Thu Thuy, Vice Rector of Hong Bang International University, proposed that, to promote the development of the innovation system and the startup ecosystem, Dong Nai should further improve its policy framework, establish appropriate institutional arrangements, and develop a sandbox mechanism. The mechanism could be applied to new digital business models, financial technology (fintech) platforms, digital logistics technology (logtech), and applications involving smart autonomous devices.

Implementing multiple solutions

Assoc. Prof. Dr. Tu Diep Cong Thanh, Director of the Intellectual Property and Technology Transfer Center (IPTC) at Vietnam National University Ho Chi Minh City, emphasized that developing sustainable innovation activities requires localities to formulate long-term plans and strategic orientations for the startup and innovation ecosystem, with priority given to the development and transfer of strategic technologies. This would provide the city with additional conditions and mechanisms to implement flexible pilot models, including technology sandboxes with preferential incentives for innovative enterprises and the establishment of venture capital funds. Such measures would create favorable conditions for testing new ideas, accepting controlled risks, and further promoting the startup and innovation ecosystem.

A business representative introduces a prototype device at a technology product exhibition in Dong Nai. Photo: Hai Quan

Dr. Le Van added that establishing sandboxes for digital business models, including those in financial technology and data services, would provide a secure environment for testing innovative business models, fostering innovation, and enhancing enterprises' market differentiation. One proposal for effectively implementing the sandbox model in Dong Nai is to activate key enablers of digital transformation. The proposal focuses on strengthening "digital transformation readiness" and enhancing organizational capabilities, particularly among small and medium-sized enterprises, which often face constraints related to resources and digital capacity.

Within this mechanism, management support plays a pivotal role through intensive training programs, strategic consulting, mentoring on digital transformation implementation, and the sharing of practical experience. These measures help business leaders and employees enhance their understanding, improve their skills, and strengthen their capacity to apply digital technologies in business operations. At the same time, communication about the benefits of digital transformation and measures to mitigate risks, including guidance on data security and on testing business models in a sandbox environment, will help enterprises translate their "intent" into practical action, increase the success rate of implementation, and reduce resistance to change.

By Hai Quan – Translated by Minh Hong, Minho