Technology transfers from foreign to local firms are not happening, Tung Dinh Dang, Deputy Director of the Department of Technology Assessment, via Tuoi Tre. Instead, foreign firms are only transferring technology to their Vietnamese subsidiaries. Dang says, the workers often using the technology do not have the skills or education to understand or absorb how it works and that domestic enterprises often don’t have the capacity for new tech or are not interested.
Note: Whereas its been widely reported that China has insisted on technology transfers in order for firms to gain market access, Vietnam takes a far less aggressive approach. Instead, it offers tax incentives for establishing research and development facilities, and also allows technology transfers to be included in registered capital in some instances.
