Institutionalisation of Law on Capital City: Many Preferential Policies for Science and Technology Development

5:03:57 PM | 5/15/2013

Hanoi currently has more than 100 universities, colleges and research institutes of science and technology, accounting for 80 percent of number in the country. The number of professors, assistant professors, doctors and scientists in the country living and working in Hanoi accounts for 65 percent. However, over the years, this brain resource has yet to be effectively promoted to contribute to the capital’s socio-economic development.
 
To concretize Article 13 of the Capital Law (coming into effect on 1st, July, 2013), the Municipal Department of Science and Technology has developed a project and draft report on development policy on science and technology to submit at the next meeting of the Hanoi Municipal People’s Council.
 
Synchronous development of science and technology
According to Nguyen Thi Bich Ngoc, Vice Chairwoman of Hanoi Municipal People's Committee, during this period, the city should focus on the development of high-level science and technology which is environment friendly, and energy saving background and/or core industries serving several fields. Therefore, the city is giving priority to producing products based basically on high technology obtained from research on science and technology development. Also priority is given to projects of infrastructure development for science and technology research such as a nursery, high technology service. The draft law should meet the objective of focusing on the development of social science, natural science and technology. It also has to ensure the promotion of potential of intellectual experts and scientists. In particular, participation and coordination of research institutes and universities should be mobilised to develop scientific and technological services, and research on transferring and assigning advanced technology, especially high and clean technology in the metropolitan area.
 
Many preferential policies
Under the scheme, domestic and foreign experts and scientists can participate in the municipal key science and technology programme. Enterprises will be given land and tax grants under the principle of not being less than the prescribed incentives of government for organisations investing in the high technology field. Specifically, companies are exempted from income tax in the first four years (after having benefit income). From the fifth year, the city supports this amount of income tax and continues to cut tax by 50 percent for the next nine years and 50 percent in the 10th year. Topics and projects on development of science and technology are supported with non-refundable 30 percent of the total cost of implementing the project. The project can borrow capital at interest rates of 0 percent or 50 percent of commercial banks (from the time of signing the contract). Similarly, in infrastructure construction phase, they are offered the same loan interest rate. In testing period and production period, they are offered the interest rate of 30 percent in the first three years.
 
The city also supports up to 40 percent of the total value of contracts buying technology secrets, technical solutions and technology processes, 60 percent of the design and simulation cost for the kind prioritizing innovation, projects researching technologies which help improve productivity, quality, saving and environment friendliness, and 70 percent of funds evaluating technology in enterprises. The funding levels will not exceed VND1 billion per year per institution (VND300 million a year under current regulations).
 
Scientists and experts participating in the city’s key science and technology programme are ordered the workload at a cost which is 1.5 times as high as prescribed wages. Salary is paid according to mutual agreement. In special cases, wages can be higher than they are being paid in the country and abroad. They have promotion opportunities and are assigned as president or deputy vice president of the city’s science and technology programme.
 
Foreign professionals and scientists or those who are Vietnamese working abroad assigned to carry out programmes on science and technology of the capital, in addition to the above preferences, also enjoy other preferential treatment such as accommodation, travel and working expenses. Those who have particularly outstanding contributions are considered to be supported 30 percent when buying housing. Their family members can receive preferences of the city’s educational services.
 
In addition, those who are major contributors to the development of the city will be honoured as the capital’s elite citizen. Also they will be rewarded with merit certification and money 10 times as high as current regulations.
 
Along with the policy of meritocracy, preferential policies to develop science and technology will provide an opportunity for domestic and foreign scientists and professors to promote their talent and intellect, contributing to the development of the capital towards the intellectual economy and sustainable development.