Developing science and technology enterprises: quality and quantity must go hand in hand

The report assessing the development of science and technology enterprises in Vietnam by the Ministry of Science and Technology at the end of 2020 shows that there are only 538 enterprises in the country granted Certificates of scientific and technological enterprises. In particular, the total revenue in 2019 of 235 industrial enterprises with full information reports reached 2.39% of the country's GDP. With estimates that the whole country has over 3,000 enterprises operating under the model of industrial enterprises, if all industrial enterprises have real strength, their contribution to GDP will not be small.

The concept of scientific and technological enterprises has been officially mentioned in legal documents since 2005, with Decree 115/2005/ND-CP, when the Government guided the transformation of science and technology organisations into industrial enterprises. This concept also appeared in many subsequent related legal documents such as Decree 80/2007/ND-CP, Decree 96/2010,... By 2013, the regulations on industrial enterprises were clarified in Article 58 of the Law on Science and Technology and recently, the Government was given detailed instructions in Decree No. 13/2019/ND-CP on industrial enterprises, issued on April 1, 2019. February 1, 2019.

Accordingly, DNKHCN is "an enterprise established and operating in accordance with the provisions of Vietnamese law and carrying out production, business and services from the results of science and technology". In particular, "science and technology results" (which is the basis for considering granting a Certificate of Science and Technology Enterprise) are expressed in one of the following forms: inventions, utility solutions, industrial designs, semiconductor integrated circuit layout designs, plant varieties that have been granted protection titles (or recognized for international registration), computer programmes that have been granted copyright registration certificates; new livestock breeds, new crop varieties, new aquatic breeds, new forestry tree breeds, recognized technical advances; The results of implementing the tasks have achieved science and technology awards; The results of science and technology and technology transferred are confirmed by competent authorities. DNKHCN is the subject of strong support from all levels of government, from central to local levels: corporate income tax exemption and reduction (tax exemption for the first 4 years, 50% reduction for the following 9 years), land rent, investment credit loans, and implementation of science and technology tasks using state capital; create preferential conditions for participating in seminars, exhibitions, connecting supply and demand, technology and equipment markets (strengthening product introduction and promotion); Support in registering and establishing intellectual property rights (increasing brand value), etc. Thanks to that, industrial enterprises have many conditions to focus investment capital on science and technology, physical facilities and human resources to create and commercialise new products with quality and competitiveness, meeting domestic demand and promoting exports. From a demand side perspective, customers will also be more assured about quality, because DNKHCN's products are certified by competent authorities.

Efforts to implement activities to develop technology markets and industrial enterprises of all levels of government in recent times have brought some initial encouraging results: the number of industrial enterprises across the country is increasing; The number of industrial enterprises that have been granted certificates of industrial enterprises by the Department of Market and Enterprise Development (Ministry of Science and Technology) and the Departments of Science and Technology of provinces and cities is increasing (according to the Report assessing the development of industrial enterprises in Vietnam by the Ministry of Science and Technology at the end of 2020, the whole country had 538 enterprises granted certificates of industrial enterprises. Of which, the total revenue in 2019 of 235 industrial enterprises had full information reports on their status. production and business activities reached 2.39% of the country's GDP).

Number of certified industrial enterprises nationwide (Source: Compiled)

Thanks to the advantage of being home to many institutes, research agencies and leading scientific staff, with favourable conditions in terms of technical infrastructure and service provision for science and technology enterprises to form and develop, big cities like Hanoi and Ho Chi Minh City are the places with the majority of science and technology enterprises in the country. However, according to actual statistics, the number of enterprises granted Certificates of Industrial Enterprises, even in these localities, is still quite small compared to the total number of thousands of enterprises operating under the Industrial Enterprise model in Vietnam.

Number of industrial enterprises certified by the Department of Science and Technology in 5 major cities (Source: Compiled)

Although the operating environment has many advantages, research and technology enterprises still have to face many barriers: the State's support policy focuses mainly on the stage of creating science and technology products, support for market development for new products (which also has many potential risks) is still quite limited; Facilities for science and technology activities of science and technology enterprises are lacking, due to lack of investment capital or inability to rent land to build and expand production and business facilities; Some science and technology products do not bring high profits because the technology is not really outstanding, or there is no market; The association with institutes and schools in investing to create new scientific and technological results and new products of some scientific and technological enterprises is still on a small scale and has not taken advantage of the potential of research results and intellectual property at institutes and schools; Products from advanced countries have strongly penetrated the domestic market, causing fierce competition for the products of industrial enterprises, in addition to the fact that intellectual property violations have not had a thorough solution. In addition, recently, the impact of the Covid-19 pandemic has created problems for businesses across the country in general such as: lack of production materials, labour shortage, limited consumption market, decline in revenue,... then industrial enterprises are also more or less affected.

Speaking at the conference "Promoting science and technology for businesses" organised by the Vietnam Association of Industrial Industrial Enterprises on May 15, when mentioning industrial enterprises, Deputy Minister of Science and Technology Tran Van Tung emphasized: “…We do not need to worry Expect quantity, but must focus on quality, contributing much to the country's economic development". This is a very correct direction, when in reality "currently there are many enterprises belonging to the Association that have limited capacity, have not promoted market research, and have modest revenue...", as shared by Mr. Hoang Duc Thao (Chairman of Vietnam Association of Industrial Industrial Enterprises).

Also in the context of "in Vietnam, currently the research results of scientists and creative ideas are many but slow to be brought to market and commercialised, not commensurate with the potential", as assessed by Deputy Minister Tran Van Tung, promoting links between institutes, schools and businesses to support the formation and development Industrial enterprises are very necessary. To do this, according to experts, there needs to be appropriate mechanisms to create connections between institutes, schools and businesses, helping businesses receive new science and technology results to form research and technology enterprises; Promote support for the development of spin-off business models from institutes and schools to commercialise research results created by institutes and schools.

In addition, in the context that the creative startup ecosystem in Vietnam has developed quite strongly, promoting large enterprises that have experience in linking support with creative startups and placing orders so that these businesses can participate in solving market problems to create high-quality products to meet domestic and international needs is a very important factor for international economic integration. In recent times, science and technology has always been considered to play an important role in the socio-economic development of Ho Chi Minh City. Therefore, many contents related to activities connecting science and technology with the business sector and developing industrial enterprises have been strongly implemented, especially in the first months of 2022: In February, Ho Chi Minh City University of Technology signed a cooperation programme with the Port and Marine Engineering Consulting Company (Portcoast), creating a basis for lecturers of the Faculty of Civil Engineering and a number of other departments of the University to work at the University. Portcoast. Accordingly, lecturers will contribute professionally when participating in enterprises' seaport projects and projects to gain more practical experience to serve scientific research and teaching. Moreover, "Through cooperation between universities and businesses, research activities will be promoted, creating new ideas and products for businesses" according to Mr. Pham Anh Tuan (Chief Executive Officer (CEO) of Portcoast). This is the expectation of businesses to further improve their competitiveness when cooperating with the research sector. In March, the Ho Chi Minh City Science and Technology Business Club held an establishment congress, gathering more than 60 science and technology enterprises of Ho Chi Minh City to connect and link businesses in scientific research activities, application - transfer of science and technology achievements into production - business, etc. The City's science and technology industry expects that, with the birth of the Science and Technology Business Club, businesses Ho Chi Minh City will pay more attention to science and technology and innovation activities, devote investment resources to scientific research activities, and find breakthrough solutions for the City.

Executive Committee of Science and Technology Enterprise Club Ho Chi Minh City. (Source: vneconomy.vn)

Recently, on May 20, the Department of Science and Technology Ho Chi Minh City announced "Research programme and orientation for scientific, technological research and innovation for the period 2021-2025". Accordingly, in the period 2021-2025, the City's science and technology sector will focus on promoting research, transfer and application of technology to build a smart city, serving the digital transformation programme, etc. The science and technology tasks that the City supports ordering or implementing will solve the issues Ho Chi Minh City is concerned about, such as improving productivity, quality and competitiveness of businesses,... In Chapter In this programme, the City no longer sets specific targets for the number of scientific and technological enterprises to develop by the end of the period (2025) like the Programme of the previous period (2016-2020), but focuses on the effectiveness of scientific and technological tasks, with the requirement that the direct application rate for enterprises must reach 60%. According to the leaders of the Department of Science and Technology Ho Chi Minh City, "...research will follow a more applied direction. In addition, science and technology tasks will need to be closely connected with businesses.".

It can be said that closely linking science and technology with businesses will bring many outstanding results. Reality has shown that Vietnamese industrial enterprises with the strength of mastering technology have overcome many challenges and developed sustainably, even during the Covid-19 pandemic. This is also the general trend of the world, when science and technology, technology transfer, knowledge transfer, etc. increasingly contribute to the economy.

According to many experts, currently, there are many creative ideas and research results in the institute and school sector, but they are slow to be commercialised, not commensurate with their potential. Therefore, appropriate solutions are needed to strongly develop industrial enterprises. Strengthening the review and selection of technology solutions with high market potential at institutes and schools; promote the work of "incubating" industrial enterprises from incubators of institutes, schools or State incubator facilities; increase cooperation between institutes, schools and businesses; Building a database on industrial enterprises to understand the fluctuations, "health" of the enterprise, and having solutions to support and promote timely development are very necessary tasks, mentioned in many forums.

In efforts to link science and technology with businesses for economic development, in addition to supporting the development of scientific and technological enterprises in quantity (the goal is that by 2030, the number of enterprises meeting the criteria of industrial enterprises will increase twice compared to 2020, according to the Strategy for developing science, technology and innovation until 2030 recently issued by the Prime Minister. May 11, 2022), it is necessary to pay attention to supporting industrial enterprises to develop qualitatively, which are factors related to value, output for products, new technology, etc. Thereby, industrial enterprises have more competitiveness and development; contribute more to the socio-economic development of the locality and the country.

Tuan Kiet

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Main References

[1] Department of Science and Technology Enterprise and Market Development. Promoting the development of Vietnam's science and technology enterprise system in the period 2021-2025 - from strengthening the connection between institutions and enterprises. https://www.most.gov.vn/vn/tin-tuc/19068/thuc-day-phat-trien-he-thong-doanh-nghiep-khoa-hoc-va-cong-nghe-viet-nam-giai-doan-2021-2025--tu-viec-tang-cuong-moi-lien-ket-giu.aspx [2] Ba Manh. Developing Vietnamese science and technology enterprises focusing on quality. https://doanhnghiepvn.vn/tin-tuc-su-kien/phat-trien-doanh-nghiep-khoa-hoc-va-cong-nghe-viet-nam-chu-trong-chat-luong/20210213015734828 [3] Ha An. Lecturers come to scientific research enterprises. https://vnexpress.net/giang-vien-den-doanh-nghiep-nghien-cuu-khoa-hoc-4427990.html [4] Moc Minh. Launching Science and Technology Enterprise Club Ho Chi Minh City. https://vneconomy.vn/ra-mat-clb-doanh-nghiep-khoa-hoc-va-cong-nghe-tp-hcm.htm [5] T.Ha. It is necessary to monitor the 'health' of science and technology enterprises. https://congnghe.tuoitre.vn/can-theo-doi-suc-khoe-cac-doanh-nghiep-khoa-hoc-cong-nghe-20220515194458266.htm

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Source: CESTI – Centre for Science & Technology Information and Statistics Ho Chi Minh City. Original article: https://thongke.cesti.gov.vn/an-pham-thong-ke/thong-tin-chuyen-de-khoa-hoc-cong-nghe-and-doi-moi-sang-ta o/1014-phat-trien-business-industry-science-cong-listening-chat-luong-phai-song-hanh