Social investment in science and technology in Ho Chi Minh City is the highest in the country.

In the period of 2021 - 2023, social spending on science and technology in Ho Chi Minh City accounts for 0.88% of GRDP, twice as high as the national average of 0.4%.

The information was announced by Mr. Nguyen Viet Dung, Director of the Department of Science and Technology of Ho Chi Minh City, on the afternoon of June 19. The reason is that the city has a large number of enterprises, a creative spirit, a dynamic working environment...

The leaders of the Department of Science and Technology said that by 2025, the possibility of completing the term target of 1% spending on science and technology on the city's GRDP is very feasible. However, Mr. Dung acknowledged that the city's 1% figure compared to developed countries is not up to expectation.

Mr. Nguyen Viet Dung shared information about social spending on science and technology on the afternoon of June 19. Photo: Ha An

According to World Bank statistics, Asian countries such as South Korea, Japan, Singapore... spend about 3-4% of their social spending on science and technology. The GDP of these countries is high, so the amount of investment in science and technology is very large. "In developed countries, up to 90% of social spending on science and technology comes from businesses, the remaining small amount comes from the state," said Mr. Dung. In Vietnam, social spending on science and technology from the business sector is still limited, mainly in large businesses, and half of this comes from the state budget.

According to Mr. Dung, there needs to be a solution to promote science and technology spending from the business sector, because if the state does this, it will never be enough. The state plays a role in building policies to encourage businesses to spend more on science and technology. "HCMC aims to have social spending on science and technology reach 3-4% of GRDP by 2030," he said.

In the draft Resolution replacing Resolution 54 on special mechanisms, Ho Chi Minh City proposed a number of outstanding mechanisms for the science and technology sector to promote research and development (R&D) and innovation activities. Accordingly, the city proposed 4 groups of policies including tax exemption and reduction support for investment funds, enterprises, intermediary organizations, experts... operating in the fields of science, technology and innovation.

The city will have a policy of non-refundable support for scientific and technological research to remove obstacles in regulations on the use of state budget for research, creating conditions for scientists to commercialize results.

Regarding the policy testing mechanism (sandbox), Ho Chi Minh City will organize this activity at the High-Tech Park and Quang Trung Software Park to test new technologies. Income policies will also be built accordingly for scientists specializing in R&D to encourage them to research.

Ha An

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