Enhancing the transfer of modern technology

During the past time, our country has implemented numerous programs and plans to promote the transfer, ownership, and development of technology from abroad for application in prioritized sectors and fields, which yield significant outcomes. Vietnam is currently undergoing economic restructuring towards a new growth model. Therefore, the transfer of technology through projects with foreign direct investment (FDI) to access advanced technologies from developed countries is an important goal in attracting FDI.

The concept of technology transfer is regarded by many international organizations as "the transfer and acquisition of technology across borders through international trade, foreign investment, or voluntary and involuntary means (learning, scientific workshops, economic intelligence...)."

The Technology Transfer Law 2006 defines technology transfer as "the transfer of ownership or the right to use all or part of technology from the transferring party to the receiving party. Technology transfer can occur within Vietnam, from abroad to Vietnam, or from Vietnam to abroad".

A production line of the Technology Transfer and Appraisal Research Center at Hoa Lac High-Tech Park, one of the largest technology transfer centers in Vietnam at present.

Enhancing competitiveness

In Hanoi, during recent years, the city has attached great importance to the transfer of technology from foreign countries and the enhancement of the competitiveness of businesses. The city has issued Plan No. 222/KH-UBND on October 7, 2019, regarding the implementation of the project "Promoting the transfer, ownership, and development of technology from abroad to Vietnam in prioritized sectors and fields until 2025, with a vision to 2030 in Hanoi". This plan aims to provide policy directions and support for the transfer, ownership, and development of technology from foreign countries into the city.

As a result, the units have made efforts to implement plans that align with the functions and tasks of each department, sector, etc. The implementation focuses mainly on the approved seven major tasks and solutions, leading to positive transformations in the transfer and reception of foreign technology, including FDI projects. In 2022, the Hanoi Department of Science and Technology reviewed and issued technology transfer registration for 20 technology transfer contracts and technical assistance contracts from abroad to Vietnam. Additionally, they granted registration extensions, modifications, and supplements for 16 technology transfer contracts and technical assistance contracts from abroad to Vietnam, as authorized.

In the field of electronics industry, the city has transferred technology for the production of electronic components used in cameras and smartphones. It has also transferred technology for the production and sale of flexible printed circuit boards and related module products for automobiles. Furthermore, technology transfer has been carried out for the production process of information devices used in mobile phones and tablets.

Director of the Hanoi Department of Science and Technology, Nguyen Hong Son, stated that in order to support businesses in seeking technology information, providing legal advice, and related incentives for technology transfer activities in general and technology transfer from abroad to Hanoi in particular, the Department has organized three training courses to enhance the professional competence of its staff. Currently, the Department is collaborating with relevant departments and sectors to establish and operate the Hanoi Technology Exchange.

Workers are operating German technology system at the Đuống river surface water treatment plant.

The need to supplement mechanisms and policies

According to assessments, the technology transfer activities from abroad to Vietnam, in general, have not achieved the expected effectiveness. Technology transfer activities mainly occur through foreign direct investment (FDI) projects and import contracts for technological equipment between domestic enterprises and foreign suppliers. On the other hand, the majority of businesses in Vietnam are small and medium-sized enterprises, which lack capital and resources to invest in modern production lines. The process of technology selection is also weak and inadequate.

Mr. Nguyen Kim Son, the CEO of James Boat Technology Joint Stock Company, a company operating in the field of providing high-tech products and new materials, including PPC Rochling from Germany, and has supplied several patrol boats to the coast guard, stated that although the company has received support and attention from relevant authorities regarding land, taxes, loan policies, and guarantees, as well as advice on technology information search through city-level and national-level scientific and technological programs, technology-importing businesses still face certain difficulties, especially concerning regulatory inspections, administrative procedures when importing technology in priority sectors.

To accelerate the implementation of Plan No. 222/KH-UBND, in accordance with Mr. Nguyen Hong Son, Director of the Hanoi Department of Science and Technology, concerned authorities of Hanoi city needs to propose specific policies to attract advanced technology projects in the context of high cost of land. These policies may include: providing price compensation for land clearance to infrastructure businesses, supporting training expenses for high-tech projects, researching tax incentives or reductions for enterprises using advanced technology and employing a high-skilled workforce, and supporting enterprises with large investments.

Hanoi will also focus on directing and expediting the approval process of detailed plans for certain industrial zones currently under development to quickly create clean land reserves and attract secondary investors, including the project of Hanoi High-Tech Biotechnology Zone. "There will be mechanisms and policies in place to create favorable conditions for technology transfer, ownership, and development from abroad to Hanoi in the construction sector. We will also enhance research and application of technology in the construction industry, such as wastewater treatment technology, drainage systems, tree planting and care, waste collection and disposal... to propose additions to the priority list of technology transfer, ownership, and development from foreign countries in Hanoi". added Mr. Nguyen Hong Son.