In the National Development Plan for the 2021-2030 period, with a vision to 2045, the Party and State place high expectations on the fundamental role of science, technology and innovation, considering this a “Breakthrough Strategy” and the “main motivation” to create breakthroughs in productivity, quality, efficiency and economy's competitiveness.

Manufacturing and assembling cars at Ford’s Hai Duong Factory

The target is “fast and sustainable development primarily based on science and technology, innovation and digital transformation”, striving to be a developing country with modern industry, and a high per capita income by 2030.

Those orientations and expectations have brought the science and technology forces not only opportunities but also many significant challenges that require innovation to advance faster, more substantively and sustainably in order to contribute more strongly and effectively to the national medium and long-term goals.

Facilitating Science and Technology Enterprises

In the past half term, the Ministry of Science and Technology focused on completing major orientations for the development of science, technology and innovation such as: Formulating and submitting to the Politburo of the Communist Party of Vietnam to promulgate the Resolution “To develop and apply biotechnology for serving national development in the Fourth Industrial Revolution background”; formulating and submitting to the National Assembly for enacting amended and supplemental law on the Intellectual property law; formulating and submitting to the Prime Minister for promulgating the Strategy for Science, Technology and Innovation Development to 2030; completing the legal corridor in order to deploy the reengineering of National Programs for Science and Technology in the 2021-2030 period, with a vision to 2045.

One of the directions, duties and solutions for socio-economic development in the 10-year socio-economic development strategy (2021-2030) is promoting science, technology and innovation, enterprises-centric; implementing economic and financial mechanisms and policies to encourage enterprises to participate in researching, developing and innovating technology. Hence, the policy's completion aims to create more and more favourable conditions for enterprises operating in science and technology, making them the core of the national innovation system.

The Ministry of Science and Technology has submitted to the Government and Prime Minister for promulgation many documents to promote the comprehensive and sustainable development of the national innovation startup ecosystem; promoting the development of science and technology market, improving enterprises' capacity to absorb, mastering and innovating technology; and encouraging large enterprises to invest in high technology.

In particular, implementing Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies supporting socio-economic recovery and development program, the Prime Minister has directed the ministries and departments to urgently research, amend and supplement mechanisms and policies to solve problems in using Foundation for Science and Technology Development of enterprises for technological innovation, production and business serving. The Ministry of Science and Technology has urgently issued Circular 05/2022/TT-BKHCN guiding the use of the Enterprises’ Science and Technology Development Fund; The Ministry of Finance has promulgated Circular 67/2022/TT-BTC guiding tax liability when enterprises provide and use the Enterprises' Science and Technology Development Fund.

These new regulations have returned the autonomous role to enterprises in deciding the content and implementing science and technology tasks the fund requires, clarifying expenditure from the fund, especially spending on machinery and equipment to innovate technology, directly serving production and business activities; encouraging enterprises to invest in science and technology.

Carrying the task of reengineering national programs for science and technology out, the Ministry of Science and Technology has approved 19 national level programs for science and technology following developmental orientations towards basic research, priority technologies, national key products or serving and associating the national target programs with the technology roadmap of industries and fields.

According to Deputy Minister of Science and Technology Bui The Duy, the reengineering programs for science and technology’s goals aim to effectively allocate budget investment resources so that enterprises can easily access and participate in the program, thereby looking for technology solutions, improving enterprises' ability, allowing enterprises to look up information, actively approach appropriate researchers, scientific organizations; and thereby facilitating enterprises to invest in science and technology, promoting innovation and enhancing competitiveness.

Additionally, the Ministry has also coordinated with related ministries and departments to establish policies promoting "enterprises as the centre of the national innovation system". The activities of building the national innovation system as well as developing the capacity of research institutes and universities all towards a mutual goal of creating an open environment so that research results can be transferred to enterprises or enterprises can combine with institutes and universities to solve their technological innovation challenges.

According to the assessment of the Ministry of Science and Technology, recent policies have encouraged large enterprises to invest in science and technology. In 2022, large corporations and companies such as Viettel, VinGroup and Samsung have continued to invest more in science and technology activities and innovation. This has contributed to increasing the proportion of investment by enterprises and society in science and technology, opening a promising future for Vietnam to quickly enhance its national technological ability, narrowing the gap with regional countries and the world.

10 years ago, investment expenditure for research and development mainly depended on the state budget (estimated at 70-80% of total social investment). Currently, investment in research and development from the non-state budget, especially from enterprises, accounts for the main proportion.

Deputy Director of Ho Hoan Cau Company Ho Xuan Vinh said that the company always actively invests in research and creation of new products. Besides, they also receive support from the State when their inventions are registered and protected. If tax and loan policies are more favourable for businesses, enterprises will certainly invest more in science and technology.

Many scientific achievements applied

The contribution of science, technology and innovation to economic growth is reflected in the research and technological development activities of research institutes and universities, technological innovation activities and the enhancement of enterprises’ organisational management capacity.

In the past half term, many modern scientific and technological achievements have been quickly and widely applied in the fields of health, agriculture, industry and information.

Typically, the preservation and processing of agricultural products has mastered drying technology to preserve agricultural products, thereby reducing losses to less than 10% with vegetables and fruits, while dried rice can be preserved for up to 12 months.

Biotechnology has applied molecular marker technology to select rice varieties carrying aromatic genes, resistant to pests, diseases and drought; creating drought-tolerant corn varieties and hundreds of biological products for a clean and organic agriculture.

In the industrial field, enterprises have been supported to enhance their potential, innovate technology, master the design and manufacture of valuable industrial products such as lifting equipment for large-load oil and gas rigs, coaches, coal mining and processing lines, main equipmentsin the large capacity cement production line.

According to the leader of the Vietnam Academy of Science and Technology, since June 2020, the Institute's scientists have mastered many core and advanced technologies, with 146 granted patents and useful solutions, including 4 international monopoly patents. In addition to a number of technologies that have been transferred to enterprises to put into production, the whole Institute has had 1,683 science and technology service contracts, with total expenditure of VND 474 billion.

By implementing science and technology tasks under the National Technology Innovation Program, enterprises continue to receive support for technological innovation, with 82% of counterpart financing for enterprises and 18% budget subsidy. The goals of the program are the application of new and advanced technologies, raising the level of automation in the production process, creating high-quality, competitive and exportable products.

The Ministry of Science and Technology has also instructed localities to assess enterprises' technological level and capacity for mainstay and spearhead industries, thereby constructing and adjusting mechanisms and development policies to enhance the potential of science and technology. As of November 2022, 10 localities have completed this assessment, 22 are implementing it, and 27 are expected to implement in 2023.

Up to now, our country has 14 supply-and-demand technology linking hubs, annually addressing the needs of about 400 technology organizations, individuals and enterprises, searching and providing information about 3,000 technology supplies, and organizing more than 4 thousand connections.

According to the Socio-economic situation report in the fourth quarter and in 2022, published by the General Statistics Office of Vietnam, total factor productivity (TFP) is estimated at 43.8%. This result has reflected the contribution of innovation activities, including the research and development of new technologies and technological innovation, etc.

In order to make science and technology truly one of the strategic breakthroughs for rapid and sustainable development following the orientation of the 13th Party Congress Resolution, it is necessary to continue completing a science, technology and innovation legal system in accordance with the new requirements set in the development of science and technology associated with innovation.

Minister of Science and Technology Huynh Thanh Dat

Minister of Science and Technology Huynh Thanh Dat said that, in order to make science and technology truly one of the strategic breakthroughs for rapid and sustainable development under the direction of the 13th Party Congress Resolution, it is necessary to continue completing a science, technology and innovation legal system in accordance with the new requirements set in the development of science and technology associated with innovation.

Accordingly, from now until 2025, the Ministry of Science and Technology will focus on primary tasks such as: Formulating and submitting to competent authorities amended and supplemental laws on the Science and Technology Law; Law on Standards and Technical Regulations; Law on Product Quality; Law on Atomic Energy; continuing to innovate management mechanisms and financial, science and technology programs and tasks management methods to reduce administrative formalities, accepting risks in scientific research according to international routines and standards; removing entanglements in transferring and handling of assets formed from scientific and technological tasks using the state budget; formulating specific mechanisms and policies, prioritizing resources for science, technology and innovation with products and services, considering new technology business models as the main motivation of economic growth; completing mechanisms and policies to attract and effectively use investment resources for science, technology and innovation...; developing a mechanism and proposing the application of an institutional framework for controlled experimentation (sandbox) for scientific research, technology development and innovation in science and technology projects.

In 2023, the Ministry of Science and Technology will focus on formulating and submitting to the Prime Minister a proposal on a piloting policy to create incentives for commercialization and speeding up research results and intellectual property generated from the state budget into production and business.