Researchers are expected to receive at least 30% of commercialization results.

On the morning of February 17, the National Assembly discussed the draft Resolution on piloting specific policies to remove obstacles for science and technology activities.

Explaining the delegates’ opinions, Minister of Information and Communications Nguyen Manh Hung emphasized that businesses focusing on applied research and developing innovative technologies will create products that have a direct impact on socio-economic development. However, these businesses are in dire need of breakthrough policies and mechanisms.

Mr. Hung said that current mechanisms are limiting business spending on scientific activities to only 10% of science and technology funds, leading to Vietnamese businesses spending 10 times less on research and development than other countries.

According to the leader of the Ministry of Information and Communications, current spending on research and development only reaches 0.5% of GDP, a quarter of the 2% target assigned by the Central Government. Of this 2% of GDP, business spending must account for 70-80%, but currently it only reaches 1/6, equivalent to 20,000 billion VND.

Mr. Hung agreed with the delegates that there should be solutions to further liberate the science and technology fund of enterprises, as well as tax deduction policies for expenses. The State needs to join hands with enterprises to invest in science and encourage enterprises to spend in this field.

According to Minister Hung, reforming the financial management mechanism for scientific research; granting autonomy in research funding; and accepting risks in research are all issues that have been stuck for a long time. He believes that the root of this problem is that the State avoids risks, so it sets out many complicated procedures, putting responsibility on research organizations. As a result, research institutions do not dare to accept large-scale, high-risk research such as basic research.

Therefore, he believes that it is necessary to change the approach in this resolution because the nature of research is risky, a form of high-risk investment. Therefore, this Resolution pilots a mechanism of spending on most research without committing to the final results. The State will manage through evaluating research stages to continue funding; evaluate research facilities with results to assign the implementation of further topics.

In addition, the Resolution also aims to allow the State to provide funding for research through a fund mechanism; exempt from civil liability and not have to repay the funds if the research does not produce the expected results. The Minister of Information and Communications believes that it is necessary to clearly distinguish between basic research and applied research in order to have different policies and mechanisms, creating openness for both.

Scientists have the freedom to decide on their research products.

Minister Nguyen Manh Hung stated that commercialization of research results is a major bottleneck while research results can only contribute to socio-economic development when they are commercialized. This resolution allows research institutions to own and have autonomy over research results, as well as assets formed from research, to proactively commercialize them immediately after the research is completed.

Researchers will receive at least 30% of the commercialization results and be allowed to participate in business management. Mr. Hung said that these are very strong policies on commercializing research results, including research results from previous years. "The State will collect taxes, create jobs, and the country will have a higher level of science. This is an indirect way for the State to recover expenses for science and technology," he said.

Regarding telecommunications infrastructure, Minister Nguyen Manh Hung said that this is the time for the State to invest first, especially in 5G infrastructure and submarine optical cables. Normally, each network operator invests in about 5,000 5G stations each year. However, to reach 20,000 stations and full coverage, State support is needed. Submarine optical cables need to follow different routes outside the East Sea to increase the sustainability of Vietnam's telecommunications infrastructure.

Reiterating the General Secretary’s opinion at the meeting that countries have begun using low-altitude satellites instead of 5G, Mr. Hung said that this is a new technology, suitable for broadband coverage in remote and mountainous areas. To attract foreign investment in these complex technologies, the Resolution allows for a pilot with 100% foreign ownership, but must ensure national defense, security and sovereignty.

The semiconductor industry is considered by the Minister to be a strategic industry. Vietnam aims to fully develop all stages of this industry, of which the most difficult are manufacturing plants and laboratory systems serving research and testing of chips produced in Vietnam.

Due to the importance of this project to high-tech human resources, he said that this factory requires a scale of less than 1 billion USD. "This facility is more like a laboratory than a factory, the State should invest in the whole thing. But to attract businesses to invest, the Government proposes to support 30% of the investment value," said Minister Nguyen Manh Hung.

He emphasized that this resolution focuses on a few special policies and mechanisms under the authority of the National Assembly. The contents presented are clear, can be implemented immediately, and address long-standing bottlenecks and urgent issues to create breakthrough development and immediately implement Resolution 57 of the Politburo.

The draft Resolution will receive delegates' opinions and be submitted to the National Assembly for approval on February 19.