Director of the Agricultural Electrical Engineering and Post Harvest Technology Institute (AEEPHI), Phan Thanh Tinh, said some research projects undertaken in recent years have failed to take into account what innovations are actually needed.

As a result, though the research results are considered outstanding, they remain in the concept stage and almost never make it into production.

Problems often begin at the start of the project. Scientific research is initiated and completed without any connection or communication with production facilities.

Scientists fail to pay attention to enterprises' demands and needs, and as a result, those same enterprises begin looking outside the country for effective and high-tech innovations.

Critics have complained that the State wastes money on scientific research that isn't used, scientists lose out on contracts and their creativity is curbed, and enterprises are forced to pay for expensive imported products.

Vu Van Tieu, from the Vietnam-Russia Tropical Centre, said a new trend in Vietnamese and European businesses is to set up an in-shop research department with its own production facilities.

The creation of scientific research workshops, known as a science and technology enterprise, is still in the beginning stages. Most of these enterprises are established by institutes or universities, and most are State-owned.

First begun in 1998, the establishment of these enterprises in research institutes and universities has seen significant success.

A petroleum and petroleum additive joint stock company called APP, developed from an institute of the same name, is a good example.

After eight years of operation, APP has had an average turnover of VND100bil (US$6.2mil) per year since 2000.

APP's director Nguyen Bach Chuc said his firm's prosperity is based on a determination to serve market demand.

Chuc added that this has been the most important factor in APP's success.

In response to the need for change, the government issued Decision 115 last September to outline the rules for a state-owned science and technology organisation.

Deputy minister of Science and Technology Le Dinh Tien said that under the decision, science and technology units must become either self-financing or for profit enterprises.

Data indicates there are currently nearly 1,300 science and technology units, 53% of which are State-owned.

The deadline for the changes is late 2009, when they will have to decide whether to merge or dissolve, Tien said.

The deputy also said that this year, it and another 15 ministries and departments will choose 15 test units for the year 2007. Those results will then be applied in 2008.

Source: Viet Nam News, 21/02/2006