CMC Group, one of Vietnam’s leading technology groups, has established a research and development (R&D) institute with an operating capital of 100 billion VND (some 4.7 million USD), the Saigon Times Daily reported.

The institute will conduct research in technology applications and develop high tech products and services in order to enhance group's competitiveness.

The corporation currently has seven affiliates in information technology and telecommunications sectors, with a total number of 1,600 employees.

The institute will participate in a number of research projects, cooperation programmes for training and theme seminars.

Nguyen Trung Chinh, Chief Executive Officer of CMC, said the institute has been set up to boost research and application of new technologies to the group.

“To survive in tough competition, CMC should create an advantage in research activities, scientific applications and technological development. The institute is very important to enhance competitiveness of the group in a long run,” said Chinh.

Previously, CMC spent nearly 50 billion VND on R&D activities. Chinh expected the institute will help attract finance from foreign organisations, the nation’s national development research and investment fund, and other sources.

Besides CMC, other major technology companies in Vietnam, including Viettel and FPT have established their R&D institutes.-VNA