Removing obstacles for science and technology enterprises.

Ms. Chu Van Hai, Deputy Director of the Ho Chi Minh City Department of Science and Technology, said that Ho Chi Minh City currently has 111 science and technology enterprises that have been granted certificates. In addition, the number of enterprises eligible for certification is over 700. This shows that the potential for developing a network of science and technology enterprises in the city is still very large. Along with that, the city has 36 incubation centers and organizations supporting innovative startups, 13 co-working spaces, and approximately 2,000 innovative startup enterprises… “In reality, the development of science and technology enterprises also faces many obstacles. To be recognized as a science and technology enterprise, one must prove ownership and legal use of scientific and technological research results; explain the incubation process and mastery of science and technology, and prove intellectual property rights…”, shared Ms. Phan Thi Thuy Ly, Deputy Director of the Ho Chi Minh City High-Tech Enterprise Incubator.

Currently, more than 800 out of 3,000 eligible businesses nationwide have been recognized as science and technology enterprises. The majority of these science and technology enterprises are performing well, creating jobs and contributing to society, with many ranking among Vietnam's top 500 fastest-growing businesses. However, many businesses face numerous obstacles in their operations.

Mr. Hoang Duc Thao, Chairman of the Vietnam Association of Science and Technology Enterprises (VTS), noted that science and technology enterprises currently do not fully benefit from the incentives stipulated by regulations. For example, enterprises need land incentives, but the land available in industrial parks and production zones is limited, making it difficult to apply regulations on land lease fee exemptions. Similarly, enterprises seeking tax incentives also face difficulties as they must ensure growth and revenue from science and technology.

In particular, the issue of personal income tax is unfair and does not encourage creativity. Scientists who invest their own money and take risks to research, experiment, and commercialize scientific and technological products are taxed just like those conducting research projects funded by the state, and who receive salaries from the state.

Review support policies

To promote the development of science and technology enterprises, the Ministry of Science and Technology recently held a meeting with the Vietnam Association of Science and Technology Enterprises to discuss policies supporting these enterprises and propose solutions to overcome difficulties. At this meeting, Mr. Hoang Duc Thao proposed creating conditions for science and technology enterprises to fully benefit from incentives.

Accordingly, the Ministry of Science and Technology has consulted with the Ministry of Finance and the General Department of Taxation to jointly submit a document to the National Assembly and the Government to study a special mechanism to expand the scope of taxable income from copyright (stipulated in Article 16 of the Personal Income Tax Law of 2014), bringing the income of intellectual property rights holders to be subject to the full tax rate of 5%. Along with this, the process of examining intellectual property registration applications needs to be expedited.

According to experts, keeping pace with global trends and implementing government policies, the Vietnamese business community has actively shifted its development direction to focus on science and technology and innovation. Without applying science and technology and innovation, businesses cannot compete or enhance their competitiveness in the domestic market, nor can they penetrate deeper into international markets. Therefore, the crucial issue for Vietnamese businesses is the need to apply science and technology and innovation quickly and effectively.

In reality, many policies and incentive mechanisms for science and technology enterprises already exist, but according to experts and leaders of the Ministry of Science and Technology, they are still insufficient, especially due to obstacles and difficulties in coordinating and implementing policies between relevant ministries and sectors. Therefore, the Ministry of Science and Technology has determined that it is necessary to develop strong incentive and support policies to encourage the development of science and technology enterprises; it is necessary to focus on clearly defining the role and position of science and technology enterprises; and to strengthen discussions and exchanges on incentive policies for science and technology enterprises to clearly assess what can be implemented immediately.

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