Despite many enterprises overcame crisis by their investment in research and development (R & D), most others have not still dared to spend much on this.

Mr. Nguyen Quan – Minister of Science and Technology visited Busadco’s plant in 2015
Photographer: Thu Cuc

Regarding the popular brand name of "Dien Quang" as today, not many people knew that the company almost has not developed for two decades after their establishment (1973-1990), only focused on manufacturing light bulbs with very less improvement. Only from the 1990s, the competition has been so fiercer and fiercer that Dien Quang met with many difficulties and even times of crisis due to not winning the contracts. In order to adapt to circumstances, in 2012, Dien Quang established a R & D center and changed their operation method.

Mr. Vuong Quan Truong - Director R & D center – said, this center had comprehensively and closely implemented, monitored the market study, product research, manufacture and distribution.

When bringing products to markets, the center also found out how they were received so that they could continue to improve. The R & D center also regularly cooperated with universities and research institutes to utilize the researching subjects, themes which could be immediately applied to manufacture.

The successes of enterprises with R & D center as Dien Quang cannot remove the fact that many enterprises are afraid of investing in this field. After 5 years (2011-2015) of implementing the development strategy of science and technology for the phase of 2011-2020, the real speed of technology innovation of Vietnam is only 10.7% /year although the target is 10-15%/year. 

"There are many reasons why enterprises invest less in science and technology. Firstly, the State has not fully socialized science and technology. Secondly, scientists have not bravely integrated in market orientation. Science and technology is high-risk areas, therefore, the investors and researchers have not bravely, willed to confront "- Mr. Hoang Duc Thao – Busadco General Director said.

In his opinions, effective implementation of preferential policies for enterprises to apply science and technology is not high due to regulations and mechanisms are overlapping and asynchronous.

Not only R & D, high-tech investment have not been prioritized by many enterprises. Explaining this issue, Mr. Nguyen Quang Bao - Director of Truong Hai auto said: “his company less invests in science and technology since most machinery and equipment in the country don’t meet the requirement”.

“To invest in science and technology, we need to import equipment with high tax rates while the most of enterprises are small-scale with low outputs. They are afraid of investing in science and technology because of slow capital recovery. The enterprises are also not able to access to the capital and support policies of the government"- Mr. Bao commented and he also said that, in order to the enterprises bravely invest in science and technology in production, business, the State should have policies facilitate the development and application of science and technology, to create conditions for enterprises accessing preferential funds, the State should closely concern, timely help them to solve problems.