On October 6, 2023, the supervisory delegation led by Mr. Nguyen Phuong Tuan, Deputy Head of the National Assembly’s Committee for Science, Technology, and Environment, visited Dong Nai to follow up on the province’s implementation of legal policies for the development of the science and technology market from 2018 to 2022.

Ms. Hoang Thi Bich Hang, Vice Chairwoman of the Dong Nai Provincial People’s Council; Ms. Nguyen Thi Hoang, Vice Chairwoman of the Dong Nai Provincial People’s Committee; Mr. Bui Xuan Thong, Deputy Head of the Provincial National Assembly Delegation; along with leaders of various departments and agencies, participated in the working session with the supervisory delegation.

Challenges in developing the science and technology market

According to the report by the Dong Nai Provincial People’s Committee, during the period from 2018 to 2022, the province implemented numerous activities to promote the development of the science and technology market. These activities include but are not limited to the formulation of policies on the science and technology market, the launch of the Dong Nai Online Technology and Equipment Exchange (donatex.vn), and the allocation of financial resources to the Science and Technology Development Fund (although the fund has yet to be legally and organizationally established).

Mr. Nguyen Phuong Tuan, Deputy Head of the National Assembly’s Committee for Science, Technology, and Environment speaks at the working session with Dong Nai Provincial People’s Committee

The Department of Science and Technology also played a significant part by managing the implementation of 33 science and technology projects at the provincial and institutional level, providing enterprises with training courses on the IPPlatform, and organizing Techfest Dong Nai 2023.

Regarding challenges, the Department of Science and Technology stated that the commercialization of research results and intellectual assets remained limited, that technology was primarily purchased and sold through contracts as opposed to technology platforms and e-commerce platforms, and that intermediary organizations for developing the science and technology market are scarce and lack capacity.

During the working session, Ms. Nguyen Thi Hoang, Deputy Chairwoman of the Dong Nai Provincial People’s Committee, stated that the province allocates 2% of its budget to science and technology development activities, but the disbursement rate is low. Besides, Dong Nai’s science and technology market is somewhat dormant and the implementation of policies encounters several issues related to public asset management. If the challenges are not promptly addressed, it would be impossible for the province to launch the Robot Center by the end of the political term.

Another concern is that the province only has six science and technology enterprises (S&T enterprises), despite having more than 1,500 FDI projects. This phenomenon can be attributed to the reluctance of many eligible enterprises to register as S&T enterprises, which stems from the awareness that countless S&T enterprises in Vietnam have yet to be granted tax incentives or reductions in annual land lease fees.

In order to encourage enterprises and promote the growth of the science and technology market, Dong Nai province has suggested that the Government should direct relevant Ministries to study and adjust the mechanisms and policies related to the Science and Technology Development Fund for Enterprises; as well as clarify the responsibilities of each government agency in advising enterprises on tax and land lease incentives.

Results of science and technology application and suggestions from units and enterprises:

Within the scope of supervision, the delegation worked with Meggitt Vietnam Co., Ltd (located in Bien Hoa 2 Industrial Park), Sonadezi Corporation, and Lac Hong University.

The supervisory delegation in a meeting with Sonadezi Corporation

The representative of Sonadezi Corporation reported to the supervisory delegation that among over 800 FDI and DDI projects in the 11 industrial parks managed by Sonadezi, there are numerous high-tech projects from leading global corporations and enterprises such as Fujitsu, Meggitt, Mabuchi, Bosch, Olympus, Shell, Atus, Hans Vina, 3M, Samsung, Sony, Kenda, etc.

Regarding environmental services, the subsidiary companies of Sonadezi Corporation apply modern European technologies for waste treatment and disposal. Regarding clean water supply, one of its subsidiary companies, Dong Nai Water Supply Joint Stock Company, implements the SCADA system to automate the factory’s operations, installs smart devices, and plans to build a centralized control center.

Sonadezi is currently accelerating the digital transformation process, aiming to form Sonadezi’s data ecosystem. On September 18, 2023, Sonadezi officially launched the TABLEAU BI System throughout the corporation.

According to Ms. Luong Minh Hien, Deputy General Manager at Sonadezi, the corporation will continue to selectively attract investments to the industrial parks, prioritizing projects that align with environmental protection measures, as well as those falling under the high-tech and supporting industry categories. In addition, its college, Sonadezi College of Technology and Management, will strengthen the S&T training to provide quality human resources for enterprises and industrial parks.

Ms. Luong Minh Hien, Deputy General Manager at Sonadezi, presents some suggestions

“Many enterprises seeking to invest in technology are lacking information on the latest trends and technological solutions for effluents and waste treatment. This may put them at stake, as technology evolves at a rapid pace. Therefore, it is hoped that the Ministry of Science and Technology and other relevant ministries will soon provide guidance and strengthen information access to allow enterprises to make informed decisions regarding the technology that is most suitable for local and business conditions,” Ms. Hien suggested.

Mr. Paul Tran, General Manager at Meggitt Vietnam, shares his thoughts

As a high-tech project in the aviation industry, Meggitt Vietnam specializes in manufacturing aircraft equipment and components, many of which come with a 20-year warranty. With collaborative research and development efforts from its team of experts and engineers, Meggitt Vietnam has successfully produced various engines, transformers, and control devices that are widely used in the aviation sector. Meggitt Vietnam also heavily invests in data digitalization to enhance production capacity and customer service.

Mr. Paul Tran, General Manager at Meggitt Vietnam, emphasized challenges related to tax policies and fire prevention regulations, as well as those that make it difficult for enterprises to scale up production. He also mentioned that Vietnam currently lacks enterprise in supporting industries, which leaves Meggitt Vietnam with no alternative but to import raw materials from abroad.

On-site inspection at the Meggitt Vietnam factory

A representative from Lac Hong University disclosed to the supervisory delegation that Dong Nai province plans to establish a Robot Center at its premises, given that robotics is one of its strengths. However, the project has not yet begun due to challenges posed by public investment regulations.

The supervisory delegation noted the opinions of the Dong Nai Provincial People’s Committee, units, and enterprises, and will consolidate them into a comprehensive report that addresses these issues.

Mr. Nguyen Phuong Tuan, Deputy Head of the National Assembly’s Committee for Science, Technology, and Environment, emphasized: “To develop the science and technology market, it is crucial to have a high-tech workforce. I suggest that Dong Nai province devotes even more attention to training and developing its science and technology human resources. At the same time, Dong Nai province should review the policies for high-tech enterprises in order to instruct them more effectively and facilitate the development of the science and technology market.”