What can technology enterprises do to grow?

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In order to grow, technology enterprises need many favorable conditions on policy mechanisms. Photo: Internet

Many barriers

In the region, economies such as Japan, South Korea and Taiwan have advanced to the top of the world in technology in just a few decades. The main growth momentumfor thesecountries is based on technology, especially information and communication technology. Technology enterprisesand corporations such as Sony, Toshiba, Samsung and LG have led the way in developing many new technologies, which demonstrates the economic strength of these countries.

In Vietnam, according to leaders of some technology enterprises, the safety and transparency of the business environment, reducing business conditions, minimizing administrative procedures that the Government is committing to implement is a very good corridor and astepping stone to help technology enterprises develop. However, it is necessary but not enough – technology enterprises need more togrow.

Looking at the reality of current technology enterprises, many experts said that the preferential policies of the State for technology enterprises had not focused much on supporting successfully commercialization of science and technology research results. The technology market development policy mainly focuses on the organization of technology transfer promotion activities andthe development of intermediary service organizations,there was no direct support for technology enterprises to commercialize their products.

According to Mr. Nguyen Xuan Thanh, Head of Fulbright's Public Policy and Management Department, speeding up the development of Vietnam's economy could only be based on technology enterprises. The reason given was that this group of enterprises always had a growth rate 2.5 times as high as the GDP growth rate.

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However, according to Mr. Thanh, the State now has many preferential policies for technology enterprises such as enterprise income tax exemption, preferential interest rates and preferential land prices, but many enterprises still could not access them. In addition, the commercialization process of scientific and technological results of enterprises still faces many barriers, such as regulations on recognition of new products, hesitationof consumers, difficulties in commercializing products aimed at low-income subjects and intellectual property protection issues.

In addition, opinions ofsome technology enterprises show that the registration of certification on technology companies still facesmany complicated regulations when they must prove ownership, legal use of research results or must explain the incubation process to master the technology.

Mr. Lu Thanh Long, Chairman of Misa Joint Stock Company, said that not all enterprises were willing to share technology secrets. Even when the certification wasissued, the technology enterprises also faced difficulties in capital when it is difficult to access investment support from the State because of many complicated procedures and intermediaries.

To growthese enterprises, according to a Fulbright expert, the development of innovative technology complex, promotion of the human resourcerenewaland infrastructure orpromotion of the participation of investment fundswere particularly necessary. Besides, the State management agencies should also pay special attention to financial factors and create conditions for enterprises to access capital for development.

"The government cannot pour capital continuously intostart-ups, but the State authorities can offer other solutions with tax incentives, such as tax incentives for human resources in the field of research and development (R&D),"said Mr. Thanh.

Emphasizing core values

The application and development of technology, building a community of Vietnamese technology enterprises will be one of the breakthrough solutions for Vietnam's economy to break out is beyond controversy, but the destination is quitehard. Mr. Nguyen Trung Chinh, Chairman of CMC Technology Group Joint Stock Company said that in the last 10 years, the leading technology enterprises in the world had a strategyto build theecological systemsurroundingcore products - their strengths to maintain and develop competitive advantages,such as Amazon, Alibaba, Apple, Microsoft, Google.In which most ecosystems movetowards creating a foundation for linking technical hardware, software online, operating systems and applications on that hardware.

Seen from the world and applied in Vietnam, the Chairman of CMC said that the State should have a roadmap and strategy to support technology enterprises to improve the quality of products and services, become the pillar of the national economy, reaching the world. Because according to Mr. Chinh, the rise of Chinese technology enterprises in the global market such as Huawei, ZTE, Alibabawas the clearest evidence that the Government of this country focused on investment in technology.

In addition, the Chairman of CMC said that othercountries were now completing policy institutions to match the digital economy. Vietnam had also changed but was still relatively slow and had not met the requirements of the digital change yet. Therefore, the Government should have clear regulationsondigital business, conditions for digital business and application of digital technology in production, business and distribution of enterprisessoon.

In order to stimulate enterprises to convert to digital, according to him, the Government should encourage enterprises to apply digital technology to raise funds before paying higher taxes, which encouragedthese enterprises to apply digital technology, to deduct pre-tax. "In particular, now, technology enterprises need to be aware to change, because if not, it will be difficult to adapt and be out of the digital economy,"Mr. Chinh said.

On the side of enterprises, the Chairman of CMC said that it was necessary to actively improve the quality of products and services towards world-class international quality and standards whichwould protect domestic consumers' interests and strengthen competitive ability and export.

On the side of the State management agency, Ms. To Thi Thu Huong, Deputy Director of the Information Technology Department, Ministry of Information and Communications, said that in order to facilitate enterprises, we should modify theinadequaciesrelated toinvestment incentivepolicy, have mechanisms of transfer and cooperation in research and development activities of enterprises.At the same time, Vietnam needs to complete a State specializedmanagement agencyto develop information technology, electronics andremote sensing technology, and at the same timeallocate preferential resources and policies to develop some big enterprises which areable to become Vietnamese technology corporations.