Free enterprise launches new products more than Laos, lost to Cambodia

“The data indicates, the Vietnam business is trying to improve the product and its manufacturing process, not least what the business sector in other countries in the region, but rarely the introduction of new products and new functions compared with the existing products to the market, “the report commented, and for that cause by free enterprise product enhancements to the main goal is just to cut the cost of production.

The rate of free enterprise has launched three new products in recent years are over Laos but inferior to Cambodia.

About 23% of Vietnam businesses claim to have introduced a new service or product, be significantly improved within three years back. This rate is lower than that of Cambodia and the Philippines with more than 30% and higher than some other Southeast Asian countries such as Laos, Malaysia and Thailand. This is one of the notable results in the study entitled “enhancing the competitiveness and small and medium business links” that the World Bank (WB) has announced.

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In particular, the level of pay for R & D of Vietnam business also are slightly inferior with Cambodia and also not high compared to many countries in Southeast Asia, the Vietnamese businesses spent 1.6% of the annual turnover for R & D While this rate in Cambodia is 1.9%. Notably, the Lao business spending to 14.5% of the annual turnover for R & d. this rate in some countries such as the Philippines is 3.6% and Malaysia’s 2.6%.

WB commented, while a large percentage of businesses claiming to spend on R & D, then the proportion of the average amount spent on the actual total revenue remains lower than most of the other Southeast Asian countries. At the same time, relatively few enterprises investing in the knowledge that has been patented or licensed to support innovation efforts.

The report also said, the large and medium enterprises innovation more than small businesses. 26% of large and medium companies claimed to spend on R & D while only 9% of small businesses have invested in this activity.

About 20% of the declared Vietnam business training for their staff to develop and introduce new products or processes. This higher rate of Laos, Malaysia, Thailand but were again lower Cambodia and the Philippines.

Overview, the level of product innovation, process innovation, the proportion spent on R & D of Vietnam business all fall into the average in Southeast Asia. In it, the Cambodian business are more dynamic free enterprise in this activity. Businesses Laos despite not yet having a high rate of new products out by free enterprise but future prospects are remarkable when the rate of spending for R & D on the turnovers.

According to many experts, the pressure on acquiring new and innovative technology for Vietnam business are increasingly high in 4.0 revolution if not want to lag in comparison with neighboring countries.

“If we want to step up the ladder to higher global production value chain, the key issue is technology and innovation. The fourth revolution are making the boundary between the manufacturing and service industries are increasingly blurred. For example, Apple’s way. They have the product, the iPhone, is the result of industry but in fact they do room service is the main source of their income, from the services provided by ecosystems that created phone is huge, “said Nguyen Thang-Director of the Center for analysis and The forecast, the Academy of social sciences.

“The local companies in Vietnam should improve its technology. We previously had no advanced technology as it is now that we must also go to school from Taiwan and Japan to learn something not an overnight right through each step, by linking with foreign enterprises ” Mr. Jang, Yoonho-Director of partner support center for purchase of Samsung Electronics Vietnam “Vietnam recommendations about urgency to study the new technology in order to have more opportunities to do business with this company.

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