Ho Chi Minh City Eases High-Tech Certification to Spur R&D Investment

The Ho Chi Minh City Department of Science and Technology has started issuing high-tech enterprise certificates under a new decentralized mechanism aimed at helping businesses access support policies, promote innovation, and master core technologies.

At a conference on June 12 to introduce the new certification conditions, Deputy Director Nguyen Hoang Bao Tran emphasized that science, technology, innovation, and digital transformation are considered “vital drivers for socio-economic development in the new era.”

Ms. Tran noted this strategic direction is institutionalized in the Politburo’s Resolution No. 57-NQ/TW, which seeks to transform science and technology into a “direct productive force.” The policy's objective is to cultivate Vietnamese enterprises capable of mastering advanced technology and integrating more deeply into global value chains.

In the modern knowledge economy, a company's competitive advantage is increasingly determined by its technology, data, and intellectual property (IP), rather than traditional factors like capital or low-cost labor. Enterprises that possess core technologies, patents, and robust research and development (R&D) capabilities are positioned for more sustainable competitive strength.

During the conference, Phan Quoc Tuan, Deputy Head of the department's Technology Management Division, outlined the specific criteria for certification. To qualify, a company’s products must originate from scientific research, technological development, or innovation. Acceptable research results include patents, utility solutions, industrial designs, copyrighted software, or other officially recognized research findings.

A key financial requirement is that an enterprise must allocate at least 2% of its average net revenue to R&D and innovation during the review period. Firms must also meet specific standards for R&D personnel and revenue generated from science and technology products.

Despite having strong products and stable markets, many businesses encounter difficulties with the certification process. Common challenges include the absence of structured R&D systems and a failure to prioritize the formal establishment of intellectual property rights.