In recent years, the Da Nang administration has actively assisted local businesses in developing scientific and technological activities, thereby promoting their technological innovation, productivity and quality enhancement, so that they are able to turn themselves into science and technology (S&T) enterprises with high-value products for the sake of the city’s socio-economic development.

Da Nang People's Committee Vice Chairman Le Trung Chinh (1st from left) and a representative of the municipal Department of Science and Technology (1st from right) granting the Certificate of S&T Enterprise for the Ha Giang Phuoc Tuong Mechanical Engineering JSC in November 2019

Data published by the Da Nang Statistics Bureau show that Da Nang is currently home to more than 7,000 businesses, 11 of which have been recognised as science and technology (S&T) enterprises by the municipal Department of Science and Technology.  They are QCM Technologies JSC, Danapha Pharmaceutical JSC, MGB.,JSC, AN SINH Green Science Technological JSC,  WATEC,  Sustech Co., Ltd., Ha Giang Phuoc Tuong Mechanical Engineering JSC, Chau Da Co., Ltd., Smart & Innovative Technology JSC, Micas Co., Ltd.,  and VBPO JSC.

The establishment of S&T enterprises in the city in recent years has achieved remarkable results.  As an S&T enterprise, the Chau Da Co. Ltd, is a typical example in conducting research into new technological products and bringing them to fruition.  In particular, the company has received financial aid from the city’s Science and Technology Development Fund to make a CNC cutting machine. The cutting machine has played an important role in improving the cutting accuracy, reducing the machining time, and bringing high profits. Notably, the quality of the CNC cutting machine was quite similar to that of imported one, but the locally-made machine costs only half of imported one.

In the time ahead, the Da Nang Department of Science and Technology will work with relevant agencies to vigorously promote the publicity of the S&T enterprise model and creating more forums for business to exchange their experience in production and business process for sake of mutual development. These proactive measures aims to support local firms to leverage their innovative research and enhance their product quality and competitiveness.

Besides, special heed will be paid to continuing to simplify administrative procedures for the establishment of S&T enterprises as well as releasing more incentives for businesses.

Along with a handful of support policies issued by the national and municipal governments, businesses must promote their own internal strengths to renew technology and equipment, and actively cooperate with S&T organisations and other enterprises from both home and abroad to improve the performance of their companies.

In parallel, S&T human resource training in each enterprise should be given another special heed in order to ensure sustainable grogress.

For the time being, under the national government-issued Decree No 13/2019/ND-CP, S&T enterprises enjoy preferential treatment in terms of corporate tax cuts and exemptions, credit incentives, and exemption or reduction in land and water surface lease fees, import and export taxes, and additional support.

S&T firms are also entitled to import/export tax incentives for R&D, production, and other business activities.

In addition to incentives, these enterprises can use equipment and facilities free of charge at the national laboratories, the national government-owned research and technology facilities, and technology incubators. They only bear the cost of the materials required to carry out the R&D activities.

Also, during the registration of land use rights and house ownership rights, these enterprises are exempted from the registration fees as well.

By XUAN DUNG – Translated by A.T