A technology transfer centre that would further the development of small and medium-sized enterprises (SMEs) is expected to open in Hanoi in August.

Ninety-seven percent of companies nationwide are SMEs.

Ho Sy Hung, an official of the Ministry of Planning and Investment, said the centre was needed because most of the country’s SMEs were using outdated technology.

“This hinders their development, resulting in low productivity and a huge consumption of power,” he added.

The centre would help local companies purchase advanced technology or learn technical skills that could be applied in a number of fields.

A branch office of the Vietnam Technology Transfer Centre will open in Ho Chi Minh City next year, said Tran Vu Hai, an official in the Ministry of Science and Technology.

With new regulations that makes it easier for investors to set up a business, the number of SMEs in the country, which is currently 370,000, is expected to increase.

“Eighty percent of the SMEs have no investment strategy for technology,” Hung said.

Most of them have poor financial capacity and do not emphasise research and development (R&D).

A study by the Vietnam Chamber of Commerce and industry shows that R&D departments exist in only 5 percent of companies in many sectors, including banking, transport, telecommunications, marine transport and textiles.

Nguyen Quang Tuan, head of the technology market division of the Institute for Science, Technology Policy and Strategy Studies, said a national strategy to develop a technology market was necessary.

The national effort would involve many stakeholders, including policymakers, enterprises and society at large, he added./.