Difficulties in establishing and spending funds for development of science and technology in enterprises
The Article 9 of Decree 95 on Deduction for setting up science and technology development funds of enterprises: A state enterprise shall annually deduct between 3% and 10% of the income liable to enterprise income tax to set up its science and technology development fund. A non-state enterprise may make deductions for setting up its science and technology development fund at an appropriate level not exceeding 10% of the income liable to enterprise income tax.
Dr. Dao Quang Thuy, Head of Department of Development of Science and Technology Enterprises under Ministry of Science and Technology said that setting up science and technology development funds has not yet welcomed by enterprises.
Current status on establishment and expenditure on science and technology funds
In Ho Chi Minh City, after 3 years since the promulgation of Decree No.95/2014/ND-CP, the number of enterprises sets their own funds for science and technology development is very modest, only 50 out of a total of 9,000 enterprises having the ability to set up a fund.
In Ba Ria - Vung Tau province, from 2009 to December 2015, there has been 7 enterprises establishing their funding for developing science and technology, of which 4 enterprises have appropriated funds with the total amount of about 152 billion VND. Of which, only 48 billion VND was used (account for 32%) and 34 billion VND was transferred to the parent company (account for 22%).
From 2009 to November 26, 2015, Hanoi has 45 businesses and two organizations establishing science and technology funds, mostly state-owned enterprises.
Some businesses such as Vissan company, Vietnam Rubber Group, etc. which have set funds for science and technology development confuse about how to use the fund.
Why enterprises less enthusiastic about funding for science and technology development
Firstly, it is due to regulations on tight expenditure control to the state budget. To majority of businesses, they set up the fund, so they have the right on how to use.
Secondly, the lack of regulations for the approval, acceptance of projects and topics on science and technology while the financial settlement procedures relating to this fund very complex. So far there are no written regulations of the State Government on approval and acceptance procedures of the topics and projects in science and technology for enterprises.
Thirdly, enterprises in Vietnam, mostly are small-scale enterprises, even tiny-scale enterprises. The maximum deduction rate of 10% for the fund on science and technology development is not enough for in science and technology investment. Therefore, the enterprises of this scale are almost not interested in the fund.
To promote enterprises to establish the fund on Science and Technology development, removing these difficulties is considered key points need to be urgently implemented.
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