The initiative to set up a hi-tech risk investment fund under the hi-tech draft law is expected to boost Vietnam's development in the field.
According to the bill which is scheduled to be adopted at the fourth National Assembly session in October 2008, this is a State financial fund specializing in investing in and providing consultation services to hi-tech businesses, organizations and individuals with hi-tech products development projects.
The fund is to be set up with the State capital and financial contributions by domestic and foreign businesses, joint ventures and international organizations, and other sources.
According to Minister of Science and Technology Hoang Van Phong, Vietnam is now home to more than 30 operating venture funds with an arm of the International Data Group being the sole fund focusing on hi-tech.
Chairman of the NA's Committee for Science, Technology and Environment Dang Vu Minh said that the two percentage of the total State budget for scientific and technological activities is much lower than that of other countries in the world.
An investment fund's initial capital given by the State will help attract capital from domestic and foreign economic sectors for hi-tech activities, he said.
The NA will propose the Government to develop mechanisms for orders and biddings of hi-tech key development projects with the aim of raising the efficiency of investment in the field.
According to the Ministry of Science and Technology, information technology, bio-technology, new materials technology and automation technology have been taken into the government's sci-tech programmes since early 1990s.
These research programmes have helped the agriculture and fisheries sectors earn tens of thousands of billions VND each year. The achievements in IT, automation and advanced materials have helped enormously reduce the cost of imported facilities.
At present, Vietnam has around 100 research institutes and 80 colleges and universities involved in hi-tech activities. More than 60 projects totalling over 2.1 billion USD are operating in Ho Chi Minh City and Hanoi hi-tech parks
Venture fund for hi-tech development
