There are still many challenges in developing science and technology enterprises

​(News Portal – Dong Nai) - Science and technology is considered a spearhead to develop Vietnam's economy, however investment in this field from both the State and enterprises is still facing multiple challenges. Limited investment resources, the market has just been initially established, and not many businesses are interested in establishing their own science and technology development fund are issues that need to be resolved. 

Supporting businesses in technological innovation and production automation is one of the tasks that Dong Nai province will carry out. In the photo, production at a supporting industry enterprise in Bien Hoa city

In Dong Nai, the province has recently issued policies to support and promote the development of businesses in the field of science and technology. It is important that the implementation needs to be carried out soon and businesses are encouraged to respond.

Disappointed results

In reality, not only for Dong Nai but also for the entire country, objectively assessing that the development of science and technology still has many difficulties and challenges, especially not keeping up with the requirements of socio-economic development, as well as it has not really become a driving force. State and social investment in this field is not commensurate with the potential; scientific and technological management mechanisms have innovated but have not kept up with market mechanisms. In addition, some policies are still limited and inadequate; not to mention the lack of leading experts, especially in key fields such as biotechnology, microchips, artificial intelligence...

The development of the science and technology market is also incomplete in terms of policies, laws on technology transfer, and technology trading floors are not synchronized; the lack of mechanisms and policies to encourage and motivate commercialization and promote technology supply and demand. Besides, many research results do not meet market needs. Commercialization of research results is still unpopular. Businesses have difficulty accessing quality technology supplies; and the enterprises' ability to absorb and master technology is still need further improvement.

Even with the issue of developing science-technology enterprises, even though it is a province with a large number of businesses, up to now, Dong Nai has only had a few units certified as science-technology enterprises. However, the scale of production and operations of these enterprises is still limited, which hardly has a pervasive impact on other units. Up to now, the province has only had 3 enterprises establish a Science and Technology Development Fund with a total capital of 9.4 billion VND. These are two joint stock companies with state capital including: General Dong Nai Rubber Company; Industrial Park Development Joint Stock Corporation (Sonadezi Corporation) and an enterprise with 10% foreign investment, OPV Pharmaceutical Joint Stock Company. As for private enterprises, there is no unit establishing a fund. The above small number shows that many businesses still do not clearly see the benefits and importance of the Science and Technology Development Fund for business development.

Implement support programs

Faced with this situation, the government and relevant ministries have also set out many solutions to develop science-technology and the science-technology market, and consider this a breakthrough for the country's development. In Dong Nai, the Provincial People's Council issued Resolution No. 31 (in 2022) on Policy Regulations to support businesses in the field of technology in Dong Nai province until 2030 and the Provincial People's Committee has also initially deployed it to affiliated units.

Accordingly, the province will allocate a balanced budget source in the annual estimate from the province's science and technology expenditures to support projects and businesses in the technology sector. The support level is from 30-50% of the contract or project value, equivalent to a maximum of 50 million VND to 1 billion VND/business.  

Specifically, for businesses that produce products with higher features, quality and competitiveness than imported products of the same type; having a new production technology that contributes to increasing product value by at least 5%, and mastering this technology for at least 2 years will receive a maximum support of 30% of the total cost of implementing the development project from the local budget which is not exceeding 1 billion VND.

For businesses that need support for the transfer of new technology, deploy advanced technology applications, and develop smart production management models, the support budget should not exceed 100 million VND. Enterprises in the agricultural sector applying advanced technology need to invest in automating farming models, improving plant varieties and livestock, investing in technology to minimize post-harvest losses... and traditional craft villages, the budget will support a maximum of 30% of the total cost which is no more than 500 million VND...  

In addition to these policies, Dong Nai province will also support businesses in drafting and implementing a technological innovation roadmap. At the same time, businesses wishing to promote cooperation with agencies, organizations and individuals operating in the field of science and technology to seek and transfer new scientific and technological achievements will also receive the same level of support (maximum 50 million VND/enterprise).

As one of the enterprises specializing in the production of automation products and machinery, Mr. Le Xuan Thoi, Director of Astek Co., Ltd. (Bien Hoa City) hopes to evolve into a capable unit in the future that is capable of designing and building new products according to partners' requirements. Therefore, according to Mr. Thoi, support from localities is very essential, not only in the field of science and technology but also in other aspects such as production infrastructure, market, business environment... ​