from other countries' experience in science and technology development

Kinhtedothi - According to experts and scientists, the establishment of a specific mechanism to gradually build Hanoi into a leading center of science, technology and innovation in the country and the region is a wise policy of our Party and State...

Special mechanisms and policies on science and technology development in Hanoi

According to Associate Professor Dr. Truong Ho Hai (Director of the Institute of State and Law, Ho Chi Minh National Academy of Politics) and Master Dang Thi Hoai (Institute of State and Law, Ho Chi Minh National Academy of Politics), today, breakthrough technologies continuously appear to fundamentally solve a series of important scientific problems, thereby significantly changing the balance of national power in global development. Faced with these opportunities and challenges, most countries are strengthening their innovation strategies through the promulgation of public policies to enhance the capacity to support innovation in national strategies.

The capital is the national political and administrative center, where the central agencies of the Party, the State, socio-political organizations, diplomatic missions, and international organizations are headquartered. The capital of the Socialist Republic of Vietnam is Hanoi - a centrally-governed city, a special-class urban area, a major center of economics, culture, education, training, science, technology, and international integration of the whole country.

The 2024 Capital Law has stipulated a number of specific mechanisms and policies, superior to current laws, creating favorable conditions for the capital to develop and exploit its strengths in accordance with the content of Resolution No. 15-NQ/TW dated May 5, 2022 of the Politburo on the direction and tasks of developing the capital Hanoi to 2030, with a vision to 2045, which has been determined: "Build a number of specific mechanisms and policies and decentralize to the Hanoi capital government the authority and responsibility to handle work in accordance with the specific requirements and tasks of the capital, focusing on the fields of investment, finance, planning, land, construction order management, traffic, environment, population, organizational structure, staffing..."

In the Capital Law 2024, there are specific and outstanding regulations to implement the goal of science and technology development; in which, key science and technology fields and preferential policies are identified.

Specifically, the 2024 Capital Law identifies key science and technology fields of the Capital (Clause 1, Article 23) and applies incentives to attract and maximize the potential of experts, scientists, and science and technology organizations participating in presiding over and implementing key science and technology tasks (Clause 2, Article 23), attracting talented Vietnamese citizens and foreigners to general science and technology activities (Clause 1, Article 16).

Apply income tax incentives to organizations and individuals with creative start-up activities in key areas (points a and b, clause 3, Article 43). Investment incentives for projects using or developing high technology, innovation and creative start-ups (points d and e, clause 1, Article 43), especially prioritizing attracting strategic investors for projects, industries and fields of science and technology (points b and c, clause 1, Article 42)...

The Law also details the authority and responsibility of the City People's Council in promulgating institutions to specify the criteria, conditions for selection and the order and procedures for permitting, adjusting, extending and terminating controlled trials (Clause 9, Article 25); the responsibility and authority of the City People's Committee in permitting, organizing guidance and controlling the trial process (Clause 6, Article 25).

A special and outstanding provision of the Law is to allow the City People's Council to decide on the scope of exemption from the provisions of the law for each specific pilot project in accordance with the requirements and purposes of the pilot project as proposed by the City People's Committee based on the assessment of the level of risk and controllability (Clause 5, Article 25). 38 Point a, Clause 3, Article 25 stipulates: "Technologies, products, services or business models proposed for testing must be innovative and have a scope of application and implementation in the city, with priority given to technologies, products, services and business models implemented within the scope of high-tech zones, the National Innovation Center and the City's Innovation Center" creating a mechanism for Hanoi to apply controlled testing for new innovative technologies, products, services and business models.

The establishment of a specific mechanism to gradually build Hanoi Capital into a leading center of science, technology and innovation in the country and in the region based on the specific legal mechanism established by the Capital Law 2024 is a wise policy of our Party and State. The feasibility of the specific mechanism and the prospect of implementation in practice are very large when Hanoi is the place where more than 70% of the science and technology organizations, universities, and research institutes of the whole country converge, along with more than 80% of laboratories and many leading experts, and is the connection point between domestic and foreign research centers.

Demonstrating Hanoi's strong determination in building a science and technology ecosystem

Meanwhile, according to Dr. Nghiem Dinh Dat (Head of the Department of State and Law, Le Hong Phong Cadre Training School, Hanoi), the 2024 Capital Law has identified Hanoi as a "special urban area", a "national political and administrative center" and a "major center of economics, culture, education, training, science and technology and international integration of the whole country".

One of the basic contents of the Capital Law is to stipulate specific mechanisms for the Capital, in which, in Article 23, specific regulations and mechanisms are set out to promote the development of science and technology, innovation and digital transformation in the Capital Hanoi. Specifically as follows:

Firstly , on the synchronous development of science and technology fields; prioritizing investment resources to build the Capital into a leading center of innovation, digital transformation, research, development, and technology transfer in the country and the region. This demonstrates a strategic vision, considering science and technology as the foundation and key driving force for the development of the Capital. To realize this goal, the Law not only emphasizes the comprehensive development of science and technology fields but also prioritizes the concentration of resources, especially investment resources, to build Hanoi into a leading center of innovation, digital transformation, as well as research, development and technology transfer, not only at the national level but also at the regional level.

Second , clearly identify the key areas of science and technology in the capital. These areas include: digital technology, information and communication technology, biotechnology, new materials technology, manufacturing and automation technology, environmental technology, carbon emission reduction, and climate change response. The City People's Council has the authority to decide on the addition of other areas, ensuring flexibility and suitability to the actual development situation. The City People's Committee is responsible for promulgating the list of key science and technology tasks and management regulations, ensuring scientific, effective and transparent nature.

Third , it stipulates specific preferential policies for organizations and individuals performing key scientific and technological tasks. These policies include: (1) Empowering organizations and individuals in charge of the task to decide on the form of selecting contractors to provide services and goods; (2) Supporting enterprises and scientific and technological organizations in purchasing and operating machinery and equipment from the city budget; (3) Exempting personal income tax on income from performing key scientific and technological tasks; (4) Enterprises enjoy incentives similar to high-tech enterprises during the period of performing the task.

Fourth, to propose policies to promote scientific research and application activities, and transfer of scientific and technological advances. These policies include: (1) Regulations on methods of selection or direct assignment for key scientific and technological tasks and pilot production projects at the city level; (2) Applying the form of funding allocation based on results and products for scientific and technological tasks using the city budget; (3) Allowing the transfer without compensation of assets, results, and products from scientific and technological tasks using the budget to organizations and individuals that meet the conditions; (4) Supporting enterprises and scientific and technological organizations to form research and development centers, laboratories, and receive technology transfer in key areas.

Fifth, create a mechanism to encourage the commercialization of research results. Accordingly, public universities, public vocational training institutions, and public science and technology organizations in the city are allowed to establish or participate in establishing enterprises, contribute capital to enterprises to commercialize scientific research results, and develop technology under their ownership. Officials at these institutions are allowed to contribute capital, manage, and operate enterprises with the consent of their heads.

"The provisions in Article 23 of the 2024 Capital Law not only create a solid legal corridor but also demonstrate Hanoi's strong determination in building a science and technology ecosystem, innovation and digital transformation development, making the Capital a leading center in this field, contributing significantly to the socio-economic development of the Capital in the New Era - the Era of national growth" - Dr. Nghiem Dinh Dat emphasized.

The Capital Law 2024 has many important and specific contents. Especially policies on science and technology development. In order to synchronously develop the fields of science and technology, the Law prioritizes investment resources to build the Capital into a leading center of innovation, digital transformation, research, development, and technology transfer in the country and the region; there are many incentive mechanisms, creating conditions for science and technology development.

Specifically, science and technology organizations receive support from the city budget to purchase and operate machinery and equipment to perform their tasks. Income from the implementation of key science and technology tasks of the capital is not subject to personal income tax. Enterprises, science and technology organizations, state management agencies, and public service units are allowed to receive the transfer without compensation of assets, results, and products formed from science and technology tasks using the city budget.

Enterprises and scientific and technological organizations operating in the city are supported with a portion of the city budget to establish research and development centers, laboratories, and receive technology transfer in key scientific and technological fields of the capital...

National Assembly Delegate Phan Xuan Dung - President of Vietnam Union of Science and Technology Associations

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