Ninety-seven per cent 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of the Ministry of Planning and Investment, said the centre was needed because most of the country’s SMEs were using outdated technology.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 Viet Nam Technology Transfer Centre will open in HCM 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 per cent 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 Viet Nam Chamber of Commerce and Industry shows that R&D departments exist in only 5 per cent 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.