REVIEW
of
FINANCE -
November, 2018
37
from the state budget was on the upward trend
from 2006 to 2015: VND 5,429 billion in 2006,
VND 17,390 billion in 2015. This demonstrates
that the Party and the State are really interested
in science and technology.
The total national investment in research
and development of science and technology is
13,390.6 billion, the state investment accounts
for more than a half: 7,591.6 billion (equivalent
to 56.7%), while investment from enterprises is
VND 5.597.3 billion, equivalent to 41.8% and
VND 201.7 billion (equivalent to 1.5%) from
foreign sources.
In general, investment in science and
technology from the state budget plays a very
important role, and the total investment in
science and technology mainly focuses on: (i)
Scientific research, technical application, State
tasks 50%; (ii) Human resources 25%; (iii)
Support for ministerial-level pprojects 15%;
Investment to facility renovation 15%. Investment
for science and technology development from
the state budget is classified into: the central
budget accounting for 70-75% and local budgets
accounting for 25-30% (according to the report of
the Ministry of Science and technology).
TABLE 2: ANNUAL NATIONAL INVESTMENT IN RESEARCH
AND DEVELOPMENT
Investment
sources
The total national
expenditure on research
and development
(billion VND)
The rate of
Research &
Development
investment (%)
Total
13.390,6
100,0
State budget
7.591,6
56,7
Enterprises
5.597,3
41,8
Foreign capital
201,7
1,5
Source: The book “Vietnam Science and Technology 2014”, Ministry of Science and Technology
Efficiency of the state budget investment in
science and technology activities
Investments in science and technology from
the state budget have achieved the following
results:
Firstly,
the state budget is always the main
source of investment in science research;
contributes significantly to the development of
human resource training and technology transfer
(the annual average state budget spending on
science and technology activities accounts for
about 2% of total state budget expenditures,
equivalent to 0.6 GDP and the annual average
increase of 19%.
TABLE 3: INVESTMENTS FOR RESEARCH AND DEVELOPMENT OF
TECHNOLOGY SCIENTIFIC / GDP OF SOME COUNTRIES IN THE
REGION AND THE WORLD
Countries, territories
(year figures)
Total expenditure on Research
& Development/GDP (%)
28 European countries (2013)
2,01
America (2012)
2,81
Russia (2013)
1,13
China (2013)
2,01
Japan (2013)
3,47
Korea (2013)
4,15
Singapore (2013)
2,10
Malaysia (2011)
1,07
Source: World Bank: Science and Technology in ASEAN Countries (Tentative edition).
Secondly,
there is a change in the structure
and classification to match the current demand
for investment resources, thus contributing
to the sustainable development of science and
technology.
Thirdly,
the legal basis of State budget
investment in science and technology has been
completed, detailedand concretized. Particularly,
there are 38 documents by the Government, the
PrimeMinister (decrees, decisions), 88ministerial
documents (joint circulars and circulars).
Although the investment in scientific and
technological development from the state budget
has achieved certain results, there are still many
limitations as follows:
- Although the state budget investment in
science and technology has increased, it has not
fully met the demand for development, research
improvement and technological renovation. In
comparison with other countries, Vietnam’s state
budget investment in science and technology is
still limited, accounting for only 0.6 % Of GDP,
Europe 2.01% in 2013, Japan 3.47% in 2013, the
US 2.81% in 2012...
- The allocation of state budget for science
and technology development is scattered;
moreover, it lacks concentration, prior objectives
and transparent mechanism (only focus on the
government; Expenditure on training science and
