Investment in science and technology reached 2% of total state budget expenditure.

(Baonghean) - According to the Ministry of Finance, during the period 2011-2015, despite difficult economic conditions, state budget investment in science and technology accounted for 2% of total state budget expenditure, achieving an average growth rate of 17% per year and being one of the sectors with the highest growth rate in state budget expenditure.

Checking the amount of money transacted at Vietinbank Ben Thuy branch (Vinh City). Photo: Thu Huyen

Over the entire period, total state budget expenditure on science and technology was 5.6 times higher than in the 2001-2005 period and 2.2 times higher than in the 2006-2010 period.

However, in absolute terms, investment in science and technology is still not high. In 2015, investment from the state budget for science and technology reached over 23 trillion VND (equivalent to over 1 billion USD). The total investment of the entire society in science and technology in Vietnam is currently estimated at less than 1% of GDP, while South Korea's is 3.1% and the world average is 2.1%.

Conversion is still slow.

Along with the shift in awareness regarding the crucial role of science and technology in socio-economic development, the legal environment for this field has also been adjusted in recent years to create more favorable conditions and incentives for science and technology activities. In 2005, with the goal of reforming the management mechanism and improving the efficiency of public science and technology organizations, the Government issued regulations on the autonomy and accountability of public science and technology institutions in performing their tasks, organizing their structure, staffing, and finances.

Furthermore, science and technology organizations are entitled to production and business activities like enterprises, are granted business registration certificates, and enjoy all the same incentives as enterprises. The issuance of the autonomous mechanism has unleashed the potential of human resources and the capabilities of science and technology organizations, likened to the "contracting mechanism" in science and technology, and is constantly being supplemented and improved to maximize creativity, promote and facilitate the connection of science and technology results with practice; contributing to a fundamental change in the operating methods of public science and technology organizations, encouraging them to focus on applied results, connecting with organizations that utilize the results, and connecting with the market...

According to statistics from the Ministry of Science and Technology, by 2015, out of a total of 642 public science and technology organizations, 193 organizations operating in the fields of basic research, strategy, and policy were undergoing transformation (accounting for 30%); 295 organizations had switched to a self-financing model (accounting for 46%); and 154 organizations were developing or submitting proposals for self-management to competent authorities for approval (accounting for 24%).

The above figures show that the implementation of these regulations has yielded positive results, with 76% of science and technology organizations completing the transformation and operating under a self-governing and self-responsible mechanism.

However, compared to the government's target of completing the conversion of all public science and technology organizations to autonomous models by December 31, 2009, this has not yet been achieved. To date, 154 science and technology organizations (accounting for 24%) have not completed the conversion.

Urgent synchronization

To ensure the timely, unified, synchronized, and comprehensive implementation of the provisions of this Decree, the Ministry of Finance has submitted to the Prime Minister specific regulations outlining the work content, deadlines, completion progress, and responsibilities of ministries and localities. Accordingly, seven ministries have been assigned to develop and submit to the Government decrees stipulating the autonomy mechanism for public non-business units in the following specialized fields: healthcare; education and training; vocational training; culture, sports, and tourism; information, communication, and journalism; science and technology; economic and other non-business sectors.

In addition, the Government has also instructed ministries, central agencies, and localities to urgently develop a list of public service activities using state budget funds within their respective areas of management; plan the network of public service units providing public services; develop a system of specialized economic and technical norms for public services managed by the State; develop criteria and standards for public services; and establish mechanisms for ordering and bidding for public services...

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