Technological innovation is one of the driving forces for business development in the current digital era. If this issue is not focused on and prioritised, it will be difficult to solve the problem of labour productivity and competitiveness in the market.

Vice Chairwoman of the Da Nang People's Committee Nguyen Thi Anh Thi (right) presents financial support to the Central Seafood Import-Export Joint Stock Company. Photo: T.THAO

Policies are adjusted to business reality

In that context, in order to support businesses in technological innovation and create high-value products, the city has issued many mechanisms and policies to support businesses. Notably, the Da Nang People’s Council has just issued Resolution No. 35/2024/NQ-HDND regulating policies to support businesses in technological innovation.

Accordingly, the city stipulates the content of support in research and development activities, and specific technology transfer such as maximum support levels of 15%, 30%, 50% for the purchase of technological equipment, and 70% for the purchase of technological equipment containing high technology. As for research costs, a support of up to 70% of the cost of research costs to create new technologies and decode technologies, not exceeding VND 3 billion /enterprise/year. Each enterprise has a maximum of 2 projects receiving support.

In addition, the city gives support for standardisation, measurement and quality activities to build/apply a quality measurement standard system, at levels of VND30 - 35 million /enterprise, certification assessment with VND15 million /product, not exceeding two products/year/enterprise. This is an important new policy creating a favourable legal corridor to support enterprises in technological innovation, production development, creating new products, product quality and competitiveness improvement in the market.

Previously, since January 1, 2017, the city’s admibnistarion announced regulations on a number of policies to support enterprises in technological innovation in Da Nang. Many production, service and trade enterprises; organisations and individuals who research, apply, implement technological improvement, innovation, decoding, incubation and transfer have enjoyed many benefits from this policy.

Effective support for technological innovation

Since 2017, the Da Nang Department of Science and Technology has supported 63 enterprises in accelerating technological innovation, manufacturing technological equipment, investing in advanced technology, high technology and purchasing machinery and equipment, or applying advanced quality management systems, building basic standards, assessing and certifying products according to standards and regulations with a total support budget of more than VND 8,136 billion.

In particular, the city’s support has been given to good products and projects that help enterprises develop production and increase revenue. From the end of 2023 to present, the department has supported 10 enterprises with a total aid of more than VND 1.23 billion.

The technology innovation project ‘Investing in smart shrimp grading machines’ developed by the Central Seafood Import-Export Joint Stock Company to help businesses reduce costs, create conditions for rearranging shrimp grading workers to do other value-added processing stages. Investing in modern machinery, equipment, and tools, using high technology, especially with artificial intelligence (AI) is very necessary to improve productivity, quality and competitiveness for businesses.

In addition, many other businesses have also benefited from the city’s policies such as Quang Nguyen Construction and Investment Consulting Joint Stock Company, Medlatec Da Nang Co., Ltd., Chau Da Co., Ltd., Gia Quang Phat Joint Stock Company, Central Electromechanical Joint Stock Company, VAS Viet My Steel One Member Co., Ltd., Dieu Phong One Member Co., Ltd., My Phuong Food Company Limited and Secoin Da Nang Joint Stock Company.

Research on technological innovation and investment in equipment serving technological innovation has brought about practical results to businesses improving productivity and product quality, saving energy, protecting the environment and workers’ health, contributing to increasing business revenue and budget.

With a regard to the use of support funds, businesses have accounted for support funds in fixed assets or other income of the business, paying for investment in machinery and equipment or investing in promoting research, purchasing modern tools and equipment to serve research activities to create new products serving other production and life activities.

It can be seen that supporting technological innovation for enterprises brings very practical benefits. Enterprises will proactively research and manufacture technological equipment to serve production, replace imported goods, reduce product costs; facilitate the operation, maintenance and repair of machinery and equipment; apply quality management systems to improve business management efficiency; conduct product certification assessments to meet market requirements, improve product competitiveness; register for intellectual property protection to increase business competitiveness.

Reporting by THANH THAO - Translating by A.THU