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Strengthening Technology among Domestic Businesses (23/3)

23/03/2011 - 14 Lượt xem

The Central Institute for Economic Management stated that the technological import value of Vietnamese businesses accounts for just 10 percent of total import value and equals 25 percent of developed countries' import value. Noticeably, 76 percent of import technology and production lines were produced in the 1950s, 1960s. Just 10 percent of Vietnamese businesses use advanced technology and most of which are operating in the fields of oil and gas, chemical and electricity.
The industrial sector is an obvious evidence of the technologically backwardness. Businesses applying automated technology account for just 1.9 percent, with businesses adopting semi-automated technology making up 19.6 percent and the rest using mechanized and manual technology. Compared to ASEAN countries, the percentage of the Vietnamese economic sectors which use high tech accounts for less than 20 percent while this figure in Thailand is 31 percent, in Malaysia 51 percent and Singapore 73 percent.
Generally, the budget for technological research and development of Vietnam is still small compared to the demand of economic development and the growth rate of Foreign Direct Investment (FDI) capital recently flowed in Vietnam. Within 10 recent years, the budget for sci-tech activities accounts for two percent of total budget expenditures annually. However, most of the budget for sci-tech activities is spent on construction and administrative affairs. Compared to other countries, the Vietnamese budget for sci-tech activities accounts for 0.5 percent of the Gross Domestic Products (GDP) while this figure in China is 1.8 percent, in Germany 3 percent and in the US 3.5 percent.
There are some reasons for technological backwardness among domestic businesses. The State budget is still small. Businesses have difficulties in mobilizing other capital resources. Renovating technology requires a large amount of money. In addition, profits are considered a method to evaluate business efficiency, thus businesses are afraid of investing in technological development. Furthermore, there are few academic institutes for product development, especially for high-tech products. The insufficiency of high quality human resources is another obstacle in business development, preventing domestic businesses from receiving advanced technology. The number of sci-tech labors in domestic businesses accounts for just 7.25 percent of total human resources.
Technological products have not been sold widely in the market. To create a technological product, there is a need for businesses to sink a large amount of money and cooperate with universities. At present, Vietnamese universities have not been patented by the World Intellectual Property Organization, while Singapore has gained 995 patents with Thailand receiving 158, Malaysia 147 and the Philippines 76. Up to now, about 2,000 technological inventions are patented by the National Office of Intellectual Property of Vietnam. However, all of them are valid within the country. Vietnam has not exported any technologies to other countries. Thus, the competitiveness of domestic businesses is still low compared to other countries. Vietnamese government has made many policies on consumption stimulus, however, the domestic technological market has still been dominated by products from China and ASEAN countries. Thus, it is very difficult for domestic businesses to become original equipment manufacturers and create new brand names.
According to associate professor, Dr. Tran Van Tung from the Institute for Africa and Middle East Studies, it is necessary for Vietnam to make national strategies on technology and technological market development through strengthening activities of technological intermediaries, organizing technological fairs, protecting intellectual property and popularizing technological information. Thanks to those policies, businesses can have access to advanced technology quickly and produce high quality products. Businesses should make larger efforts in research and development activities and pay more attention to human resource improvement. Only by those ways, can domestic businesses take part in regional and global production network and strengthen their competitiveness./.

Source: VEN.