Hanoi (VNS/VNA) - Vietnam would have difficulty achieving the goal of having5,000 science and technology enterprises this year under the 2011-20science and technology development strategy.

The Ministry of Science and Technology has proposed many solutions to reachthis goal, including the Decree 13/2019/ND-CP on developing science andtechnology enterprises effective from March 20, 2019 with better incentives andopened mechanisms.

It has also improved policies and institutions, including amendments of somelaws on investment, enterprises and corporate income tax and regulationssupporting incubation and development of science and technology enterprises.

The system of mechanisms, policies and regulations on development of scienceand technology, and creative innovation is synchronised to ensure efficiency insupporting the development of science and technology enterprises and usingresults of State-invested research on science and technology.

However, Vietnam now has about 500 science and technology enterprises, reaching10 percent of the target.

The ministry has found many barriers to having 5,000 science and technologyfirms this year.

Pham Duc Nghiem, deputy director of the ministry’s Department for Developmentof Market and Science and Technology Enterprises, said that the number ofenterprises interested in science and technology is not high and programmes aswell as disbursement of capital for the development of science and technologyfirms are also limited.

Recently, the ministry has reformed mechanism on investment to create morefavourable conditions for businesses in becoming science and technology firmsbut they still need to renew themselves, Nghiem said.

Deputy Minister of Science and Technology Bui The Duy said the failure toachieve this goal firstly is the responsibility of the science and technologyministry because its communication on the target is limited.

"The ministry has not cooperated with media agencies to encouragedevelopment for science and technology enterprises as well as incentives forthose enterprises," Duy said.

Meanwhile, Nguyen Hong Phong, general director of the Tien Nong AgricultureJoint Stock Company, one of the first science and technology companies in ThanhHoa province, said it has had a difficult beginning to be recognised as ascience and technology company.

Since its establishment in 1995, the enterprise has identified science andtechnology as a foundation for its development and built a research anddevelopment (R&D) centre with modern equipment and technology.

With this R&D centre, the company has implemented many research projects toproduce high-quality farming products to increase its revenue and output infarmers’ production.

However, to become a science and technology company is not easy, especially forsmall and medium sized enterprises like the Tien Nong, according to Phong. TheState has many incentives to support the development of science and technologycompanies such as tax, land and credit, but whether they receive theseincentives or not is another issue.

Besides that, Luu Hai Minh, chairman of the Nhat Hai New Technology Joint StockCompany with a certificated science and technology enterprise, said the rightof using a State-invested scientific and technological research project has thesame value as land use rights.

An enterprise could mortgage its land use right to get loans for developmentbut is not permitted to mortgage the use right of State-invested scientific andtechnological research to have capital for producing new products, he said./.