Enterprises encouraged to invest in science and technology
14:06, 2016/02/21
In recent years, Vietnam has been recognized internationally as one of the world’s top 10 software outsourcing countries and recognized by UNESCO as one of four nations producing vaccine to treat Rota virus.
Vietnam’s modest investment in science and technology represents 2% of the state budget or about US$70 million in 2014. And Vietnam’s science and technology development depends almost entirely on state funding. There is little of the kind of private investment found in more developed nations.
Economist Le Dang Doanh told VOV that “Vietnam’s modest application of science and technology reflects a total-factor productivity of 26%. The figure is 50% in the Republic of Korea and some ASEAN countries. That means we depend too much on low cost labor and resources to support growth.
Once Vietnam still continues this trend, its economy will not grow sustainably and efficiency will never improve. Vietnam needs stronger renovation and the most important thing is to encourage private businesses to invest in science and technology.”
In economics, Total Factor Productivity (TFP) is the portion of output not explained by the amount of inputs used in production.
Associate Professor Vu Minh Khuong suggested that Vietnam should outline specific preferential policies for science and technology so that enterprises can receive direct benefits.
According to Khuong, “the state needs to help businesses, especially small enterprises, to access technology information. In Singapore a company which invests its own capital in science and technology gets a 30% of tax exemption if it makes a profit. Vietnam should learn from the Republic of Korea and Singapore who both have institutes that specialize in finding out about the world’s most advanced technologies and transferring the information to enterprises. The costs of the government-supported institutes come largely from the businesses which benefit. This is the public and private partnership model.”
Deputy Minister of Science and Technology Tran Van Tung said Vietnam has promulgated preferential policies, especially in tax reduction for equipment imports, transfer of technology, and land lease.
Tung noted that “our issue is that implementation of these legal policies in the provinces hasn’t been synchronized between localities and the tax sector, necessitating increased coordination among agencies. In the future the Ministry of Science and technology will work more closely with the Finance Ministry to provide instructions for tax bureaus nationwide.”
Economist Le Dang Doanh told VOV that “Vietnam’s modest application of science and technology reflects a total-factor productivity of 26%. The figure is 50% in the Republic of Korea and some ASEAN countries. That means we depend too much on low cost labor and resources to support growth.
Illustrative image
|
In economics, Total Factor Productivity (TFP) is the portion of output not explained by the amount of inputs used in production.
Associate Professor Vu Minh Khuong suggested that Vietnam should outline specific preferential policies for science and technology so that enterprises can receive direct benefits.
According to Khuong, “the state needs to help businesses, especially small enterprises, to access technology information. In Singapore a company which invests its own capital in science and technology gets a 30% of tax exemption if it makes a profit. Vietnam should learn from the Republic of Korea and Singapore who both have institutes that specialize in finding out about the world’s most advanced technologies and transferring the information to enterprises. The costs of the government-supported institutes come largely from the businesses which benefit. This is the public and private partnership model.”
Deputy Minister of Science and Technology Tran Van Tung said Vietnam has promulgated preferential policies, especially in tax reduction for equipment imports, transfer of technology, and land lease.
Tung noted that “our issue is that implementation of these legal policies in the provinces hasn’t been synchronized between localities and the tax sector, necessitating increased coordination among agencies. In the future the Ministry of Science and technology will work more closely with the Finance Ministry to provide instructions for tax bureaus nationwide.”
11:37, 2025/02/23
Government-backed waste management startups to be launched
By 2030, each province will have at least five models of senior-led waste collection and sorting.
15:59, 2025/02/16
Hanoi makes remarkable leap in the DTI ranking
Hanoi has been rolling out initiatives to accelerate digital transformation.
22:13, 2025/02/12
Hanoi develops e-commerce database
The database allows for identifying which tax collector supervises each taxpayer.
18:35, 2025/02/09
Hanoi to pilot multiple digital transformation models
Hanoi will step up efforts to build a modern, proactive administrative structure, and improve the legal system.
21:17, 2025/01/13
Government to set aside 3% budget for sci-tech development: Party Chief
Policies to remove barriers to scientific and technological development and maximize creativity must be finalized by 2025.
16:50, 2025/01/09
Hanoi aims to maintain its second-highest EBI ranking
Hanoi laid out a goal to expand consumer market through e-commerce channels and promote cross-border transactions to help businesses export.
- Hanoi honors outstanding faces in innovation, digital transformation
- Land deed digitization accelerated in Hanoi
- Vietnam's capital boosts iHanoi usage by citizens
- Technology, innovation identified as key drivers for Hanoi's growth
- Hanoi intensifies efforts to achieve its digital goals by 2025
- Second Hanoi Technical Innovation Contest launched