The Ministry of Science and Technology will increase investment in science-technology to reach 1.5 percent of the gross domestic product (GDP) in 2011-2015, while changing from the current administrative finance mechanism to a self-control, self-responsible mechanism.
Although investment in science-technology increased annually in 2006-2010, and the average growth was twice the increase in the state budget, state investment in science-technology accounted for just 0.5-0.6 percent of annual GDP, or about one percent of the GDP including non-budget investment.
Insufficient, unfocused and inconsistent investment in science-technology has led to inadequate infrastructure and low efficiency. Many scientists said that financial management of science-technology is too administrative. Annually, the government assigns program direction boards to estimate budget for science-technology. However, the boards do not have the power to adopt the estimation and allocate funds for projects. It is state administration organizations that do the job. This is why annual budget distribution is usually late. Meanwhile, current procedures for project payment are still complicated disheartening many scientists.
Trieu Van Hung, the head of the Department of Science and Technology under the Ministry of Agriculture and Rural Development, said that the current financial management mechanism for science-technology is not favorable for scientists. For example, payment for science-technology projects at flat rates is clarified in Inter-ministerial Circular 93/2006/TTLT/BTC-BKHCN of the Ministry of Finance and the Ministry of Science and Technology. However, there are not guidelines for identifying salaries and wages for researchers. The government also lacks incentive policies to encourage creativity in science-technology research. Moreover, the current financial mechanism does not stimulate businesses to raise capital for science-technology and apply science-technology research achievements.
In this light, Trieu Van Hung pointed out the need to renew the financial mechanism for science-technology in the direction of (1) increasing funds for science-technology assignments, including salaries and wages in science-technology assignments, and paying for final science-technology products at flat rates, (2) unifying scientific content management and financial management meaning that final balance-sheets can only be finalized after science-technology assignments are completed and are adopted and (3) regulating funds for official training and reserves for science-technology assignment development.
Phan Minh Tan, the director of the Ho Chi Minh City Department of Science and Technology, said that it is important to increase financial contributions from businesses and draw non-budget investment capital for science-technology. As for science-technology projects directed by businesses, 70-80 percent of finance should come from businesses and this should be paid totally in advance. The state should support the remaining 20-30 percent and this should be paid after the project is completed. However, businesses also need to show the possibility to commercialize their research products. In addition, the state should provide practical support through favorable business conditions and land/tax/budget preferences for domestic research and technology production.
In 2011-2015, the Ministry of Science and Technology will boost social investment to renew technology and increase its percentage to 1.5 percent of the GDP. A significant amount of budget for science will be paid for importing and applying technology, buying inventions and hiring foreign experts in Vietnam. At the same time, the Ministry will invest sufficient capital in material facilities and manpower of science-technology organizations, and help businesses set up research/experiment centers and develop technology nursery centers. This will include intensive investment in construction of 10-12 research institutes, 20-30 scientific collectives and 100-120 research groups that will be able to carry out good researches and fulfill national key science-technology tasks and apply/renew world advanced technology.
The Ministry also said that it will replace the current administrative finance mechanism with a self-control, self-responsible mechanism, which is expected to create a driving force for science-technology organizations to grow, rapidly and efficiently develop science-technology development funds and operate national technology renewal funds and national high-tech venture investment funds./.
Source: VEN