(VOVworld) – The Ministry of Science and Technology has established a 100 million USD fund to encourage scientific and technological innovations in business. VOV brings you the gist of an interview with Minister Nguyen Quan on policies to facilitate scientific innovations.

Minister of Science and Technology Nguyen Quan

Vietnam has been facilitating science and technology businesses with tax reductions and exemptions. Businesses with profits will enjoy tax exemptions in the first 4 years and 50% tax reductions in the following 9 years. However, these policies only encourage technology imports, not innovations. Businesses with no profits gain no tax advantage. Technology businesses are also given other incentives such as lower land rental fees, greater access to financial sources, and tax exemptions for research and in-house training.

More priority policies for high-tech businesses…

Science and Technology Minister Nguyen Quan said businesses that produce high-tech products, new technologies, and high value-added technologies will all be supported. He added that these businesses will not necessarily be in high-tech zones: “The state must support high-tech businesses, be they private or in high-tech zones. However, we still need to prioritize high-tech zones because according to the experience of developed and emerging countries, they play the locomotive role in introducing new high technologies.”

…and for innovative industries

In 2007 Vietnam issued Decree 80 on science and technology, the cornerstone for innovative industries. In 8 years, Vietnam established a number of science and technology businesses including the Hai Phong Import and Export Company and the Ba Ria-Vung Tau Water Supply and Drainage Company. These businesses have shown high sustainable growth despite the recent economic downturn. Minister Quan said Vietnam has increased international cooperation to support such businesses: “The World Bank has approved a 100 million USD project to encourage scientific innovations. Finland has pledged continued support for a similar project worth 10 million Euros. The Vietnamese government sets aside a considerable part of its budget to support science and technology businesses. We hope that there will be approximately 5,000 science and technology businesses by 2020, which will contribute 7-15% of the GDP.”