Majority of Vietnamese SMEs Use Outdated Technology
Almost all Vietnamese small and medium-sized (SMEs) are using backward technology and invest just 0.1 per cent of their revenues to update their technology, a seminar held in Hanoi on April 20 to discuss solutions for technology development of SMEs was told.
Up to 80 per cent of local SMEs do not have strategies for sci-tech investment, said Dr. Ho Sy Hung, Deputy Director General of Agency for Small and. Medium Enterprise Development under the Ministry of Planning and Investment (MPI).
A survey conducted by the Vietnam Chamber of Commerce and Industry in 2006 showed that less than 5 per cent of enterprises in eight sectors of garment and textile, seafood, electronics, auto, sea transport, banking, insurance and telecommunications carry out technology research and development activities.
At present, SMEs account for 97 per cent of total enterprises in Vietnam, generating around 3 million jobs and contributing 40 per cent to the country’s GDP and 29 per cent to total export turnover.
SMEs in Vietnam complained that they were facing difficulties in getting subsidized loans, state media said.
The MPI has proposed incentives for SMEs to the government, including the establishment of a fund to help SMEs ease capital shortage. (Youth, Saigon Liberation)
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