VietNamNet Bridge - The Ministry of Science and Technology recognized the role of enterprises on developing science and economy early by providing funding worth 30% of the total investment for technological innovation projects of local enterprises. However, the ministry has supported only 111 businesses in technology innovation.

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The Minister of Science and Technology Nguyen Quan cited two main reasons:

Firstly, budget funding for science and technology is modest, including for enterprises.

He said that Vietnam does not have any research institute as big as Samsung’s research institution. Annually Samsung alone spends more than $3 billion for research activities while Vietnam invests less than $1 billion for research projects in the country, Quan said.

Secondly, in Vietnam it is not common to use state money to support private enterprises although the Sci-Tech Law 2013 days that the budget should be responsible for support of science and technology for all sectors of the economy, including private and joint stock firms.

"The budget revenue mainly comes from taxes, which are paid by everyone, including private companies, and private enterprises pay more taxes than state-owned enterprises. Moreover, we support businesses though science and technology is legal and in accordance with WTO commitments," he said.

Currently, the Ministry of Science and Technology applies three financial mechanisms for science and technology: placing orders to certain enterprises; having a fund for new ideas; and ask-give mechanism where businesses submit their projects to ask for funding.