Industrialisation and automation create both opportunities and challenges for businesses. To participate in this trend, many enterprises across Da Nang have proactively invested in automation and smart manufacturing in the hope of bringing new advances in the production process.

The investment in science and technology helps enterprises increase product quality and revenue, and enhance their competitiveness. In the photo: Staff of the Mayaca Coffee Company Limited in Hoa Minh Ward, Lien Chieu District is seen operating machinery.

Promoting investment in science and technology

According to the municipal Department of Science and Technology, since early 2024, the city has provided VND 9,371 billion in funding for 77 businesses to serve the innovation of production processes and machinery.

Specifically, the city has given a financial support of over VND 7.5 billion to 15 businesses for research and development activities, VND 55 million to 13 businesses for intellectual property activities, and over VND 1.8 billion to 49 enterprises for quality measurement standards.

Some outstanding projects receive financial aid from the city budget to innovate equipment and machinery, including the smart shrimp sorter of the Central Seafood Import-Export JSC with a budget of VND 890 million; the automatic chemical weighing system of the Da Nang Rubber JSC with a budget of VND 670 million; the factory specialising in researching, designing and manufacturing 20mm-80mm thick steel plate rolling machine of the Ha Giang Phuoc Tuong Mechanical VND with VND 930 million; and research, design and manufacture of magnetic baking machine of the QCM Technology JSC with VND 524 million. The investments have, thereby, created practical efficiency in production practice.

Mr. Ho Duc Tien, Director of Mayaca Coffee Company Limited in Hoa Minh Ward, Lien Chieu District, said that the company has proactively invested in machinery and equipment with the aim to expand customer market in Da Nang and other provinces and cities nationwide. Recently, the company has purchased a quantitative roasting machine and a weight screening machine at a total cost of VND 700 million, of which VND 177 million was funded by the city’s budget. Thanks to that, the company's production output in 2024 is estimated to reach 100 tonnes, an increase of 200% compared to the same period in 2023.

A number of businesses choose to cooperate with research institutes and universities to promote innovation in production. For example, the Dong A University assisted the STC Electric Electrical Equipment Manufacturing JSC based in An Khe Ward, Thanh Khe District, with accessing investment sources, and meeting production activities.

Mr. Nguyen Manh Cuong, Director of the STC Electric Electrical Equipment Manufacturing JSC highlighted the benefits of the coordination in saving costs and time and having the opportunity to test and experiment before introducing finished products to the market.

Continuing policies to support businesses

On May 13, 2024, the Politburo issued Conclusion No. 79-KL/TW, with priority given to investment resources for developing science and technology infrastructure and innovative startups, and effectively exploiting concentrated information industrial parks and software parks in order to promote the development of information technology, electronics, telecommunications, the Internet of Things (IoT), artificial intelligence, big data and semiconductor chips.

The city has carried out many activities to support businesses to invest in science and technology development and innovation, and establish a favourable environment for business and production.

At its 19^th session in its 10^th tenure for the 2021-2026 term, the municipal People's Council passed Resolution No. 35/2024/NQ-HDND stipulating policies to support technological innovation in Da Nang. Accordingly, enterprises and organisations will be supported with technological innovation costs in accordance with current laws. The beneficiaries are manufacturers, trading enterprises and cooperatives operating in technology research and transfer.

Mr. Huynh Sang, Head of the Technology Management Office under the Da Nang Department of Science and Technology informed that Resolution No. 35/2024/NQ-HDND clearly stipulated the types of technology that are prioritised for support such as hi-tech, environmental technology and energy-saving technology. Support conditions include compliance with tax obligations and environmental protection as well as the ability to conduct research or technology transfer. The maximum support level for research costs and equipment purchases is up to 70% of the total cost.

The Resolution takes effect from August 10, 2024 and replaces previous regulations on supporting technological innovation.

In addition to Resolution No. 35/2024/NQ-HDND, the city also has regulations and documents to create a corridor to support businesses, including Decision No. 36/2016/QD-UBND dated November 8, 2016 detailing the content and support level for activities of standards, measurement, quality and intellectual property; and Decision No. 26/2019/QD-UBND dated May 16, 2019 amending and supplementing articles of the regulations on a number of policies to support businesses in technological innovation.

The city's specific policies on supporting enterprises in technological innovation have been effectively implemented, thereby creating a favourable legal corridor to support businesses in developing production, creating new products, improving product quality and enhancing competitiveness in the market.

Reporting by HANH ANH - Translating by M.DUNG