VietNamNet Bridge – HCM City is taking steps to support enterprises to implement technological innovations, according to director of the city's Sciences and Technology Department, Phan Minh Tan.

The strategy also aims to have 60-70 per cent of current companies, including the entire manufacturing sector, must complete clean technology plans by 2030.— Photo vietq

The move comes as many enterprises have encountered difficulties harnessing vital innovations in technology due to the economic slowdown.

Tan said that adopting innovations would dramatically increase the value of products and services by reducing costs and improving competitiveness.

Under a national strategy on clean technology approved by the Prime Minister late last month, new investment projects in energy-guzzling industries or those posing significant threats to the environment through dyeing operations, fertiliser production, mineral mining and thermal electricity must meet clean technology criteria.

The strategy also aims to have 60-70 per cent of current companies, including the entire manufacturing sector, must complete clean technology plans by 2030.

However, as quoted on Thoi bao Kinh te Viet Nam (Viet Nam Economic Times), Tan acknowledged that HCM City was still facing difficulties in enabling the use of advanced technology.

At present, only 1 per cent of manufacturing enterprises in the city use advanced methods, with over 50 per cent using ‘outdated' or ‘extremely outdated' technologies.

"This partly explains why they fail to develop their position in the market, sustainably," he said, adding that outdated technologies also resulted in high amounts of wasted input materials, energy and environmental pollution.

In a bid to promote technological innovation, the city committed to support enterprises, offering financial incentives and simplifying administrative procedures to enable faster access to assistance.

Enterprises who take bank loans of less than VND100 billion (US$4.7 million) to upgrade technology used in production can have half or the entire loan's interest paid by the city's budget, Tan said.

The city's technology department have also launched 15 programmes helping enterprises to fund improvements in productivity, brand development and energy efficiency.

Vice chairman of the municipal People's Committee Le Manh Ha, said the city would invest more to develop scientific and technological projects.

The move is yet another one designed to address existing problems plaguing the city in the areas of urban planning, land use, traffic congestion and pollution, he said.

Authorities are also hoping the improvements in technology and product quality will coincide with policy aims to meet product demands fuelled by the country's economic development.

This includes the demand for items such gas-storage technology to replace current energy sources and hybrid organic-inorganic materials that can be applied to medicine and environmental sustainability.

Source: VNS