Currently, many businesses operating in Da Nang, except for local foreign direct investment (FDI) ones, are using outdated equipment and technologies in their production methods.  This is the main reason for their low production capacity and business inefficiency.

According to a recent survey conducted by the municipal Department of Science and Technology, the majority of the city’s enterprises are using technologies which lag far behind the global average.  Up to 20% of the surveyed businesses use advanced equipment, 38% apply intermediate-level technologies, but the remainder use outdated ones.  This has adversely affected the quality of output.

Many local businesses need to upgrade their equipment and technologies

The survey also reveals that 61.4 % of the surveyed businesses do not show much interest in technological innovations.  Many of them find it very hard to upgrade the currently used production technologies due to a severe shortage of capital and difficulties in selecting suitable equipment suppliers. According to some businesses, the shortage of capital is considered the biggest obstacle to technological innovation.

Technological innovation is the process through which advanced technologies are developed and brought into widespread use, and it plays a vitally important role in promoting production efficiency.  Hence, it is essential for local enterprises to take advantage of local and central support policies to accelerate technological innovations to ensure their sustainable development.