High technologies prioritized for development investment in Vietnam

What is high technology?

Pursuant to the Law on High Technologies 2008, high technology means a technology which has a high scientific research and technological development content; is integrated from modern scientific and technological achievements; can turn out environmentally friendly products of superior quality and utilities and high added value; and plays an important role in the formation of a new production or service industry or the modernization of an existing production or service industry.

Hi-tech activities means hi-tech research, development, seeking, transfer and application; hi-tech human resource training; hi-tech incubation or hi-tech enterprise incubation; hi-tech production and hi-tech service provision; and hi-tech industrial development activities.

 High technologies prioritized for development investment in Vietnam (Internet image)

High technologies prioritized for development investment in Vietnam

Pursuant to Article 5 of the Law on High Technologies 2008, hi-tech development investment will be prioritized in the following technological domains:

- Information technology;

- Biotechnology;

- New material technology;

- Automation technology.

Based on socio-economic development, defense and security requirements, the Government may adjust and supplement technological domains prioritized for hi-tech development investment specified in Clause I of Article 5 of the Law on High Technologies 2008.

High technologies prioritized for development investment in the technological domains specified in Clauses 1 and 2 of Article 5 of the Law on High Technologies 2008 must be in line with the world’s advanced and modern scientific and technological development requirements and trends, promote the country’s advantages, be feasible, and satisfy any of the following conditions:

- Having great impacts on and bringing about high benefits for socio-economic development and defense and security maintenance;

- Contributing to the modernization of existing production and service industries;

- Playing a decisive role in the formation of new production and service industries with high competitiveness and socio-economic benefits.

The Ministry of Science and Technology shall assume the prime responsibility for, and collaborate with concerned ministries and ministerial-level agencies in, submitting to the Prime Minister for promulgation a list of high technologies prioritized for development investment and objectives and implementation roadmaps and solutions, as well as their modifications and supplementations.

State policies towards hi-tech activities in Vietnam

State policies towards hi-tech activities are mentioned in Article 4 of the Law on High Technologies 2008 as follows:

- To mobilize investment resources and apply in a coordinated manner mechanisms and measures to offer the highest land, tax and other incentives for hi-tech activities with a view to promoting the leading role of high technologies in scientific and technological development for socio-economic development, defense and security maintenance, environmental protection, and improvement of the quality of people’s life.

- To speed up the application, research, mastering and creation of high technologies and hi-tech products: to form and develop a number of hi-tech industries; to raise the competitiveness of products, and participate in stages creating high added value in the global supply system.

- To concentrate investment in developing hi-tech human resources up to regional and international level: to apply special incentive mechanisms and policies for training, attracting and effectively employing hi-tech human resources at home and abroad and talented youth in hi-tech research, teaching and incubation, hi-tech enterprise incubation and other hi-tech activities.

- To encourage enterprises to raise their hi-tech application capacity and invest in hi-tech development; to facilitate the formation of a network of medium- and small-sized enterprises providing support products and services for the hi-tech industry.

- To allocate state budget funds and apply a special financial mechanism for hi-tech tasks, programs and projects and the import of high technologies which are important to socio-economic development and defense and security maintenance.

Mai Thanh Loi

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