Vietnam increases spending on sci-tech development

14:15 | 01/07/2019 Science - Technology

(VEN) - Investment in science and technology development is the shortest way to help businesses achieve greater economic efficiency, improve competitiveness and gain higher positions in global value chains.

vietnam increases spending on sci tech development

According to the Ministry of Science and Technology, Vietnam’s investment in science and technology has been rising in the last few years. In addition to big groups and corporations, small- and medium-sized enterprises have also paid attention to investment in science and technology.

However, Vietnam’s spending on science and technology development remains very modest. According to the World Economic Forum, Vietnam is lagging behind in terms of technology preparedness, innovation and labor productivity compared to many of its neighbors in Asia, such as China, India, Thailand, Malaysia and Singapore.

Vietnam’s spending on science and technology development, including both the state and private sectors, accounted for just 0.44 percent of gross domestic product (GDP), much lower than the world’s average of 2.23 percent. If Vietnam does not make bold investments in science, technology and innovation, the country will become stuck in a low-productivity, low added value and middle-income trap.

As business is the core of science and technology innovation, the Ministry of Science and Technology has established funds and programs to support the development of businesses, such as the National Science and Technology Program and the National Technology Innovation Fund. These financial channels provide aid and loans to help businesses conduct research and development activities serving trade and production. In addition, the Ministry of Industry and Trade has also provided support for businesses in developing high-tech projects.

However, most Vietnamese businesses have not taken the initiative in accessing new technologies. In addition, an incomplete legal framework, mechanisms and policies are holding back technological development and failing to inspire innovation. Therefore, Vietnam needs to create a favorable environment together with new mechanisms and policies to promote technology innovation.

In the immediate future, the science and technology sector needs to complete legal documents on promoting absorption and development of science, technology and innovation; encourage the establishment of venture funds to invest in research, development and commercialization of creative products; and improve institutions to attract social resources in order to promote investments in science, technology and innovation.

Quynh Nga