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Article Summaries and Presentation China’s Technology Transfer: Lessons Learnt Introduction Recent experience shows that science and technology take important role in economics development for developing or less developed countries. Science and technology development in China, a neighbor country of Vietnam with similarities in political and economics mechanism, should be lessons learnt for Vietnam in the course of industrialization and modernization Slide 2 Team Members V_BluePrint Mr. Pham Dinh Doan Director Phu Thai Co., Ltd Ms. Le My Hanh Chief Controller VID Public Bank Mr. Nguyen Thang Quang Mr. Nguyen Anh Tuan Officer Manager EVN Vietnam Auditing Company Slide 3 Outline Reasons for Selection of Articles Summaries of Articles Integration of Articles Lessons Learnt from China Discussions on Vietnam Slide 4 Reasons for Selection Similar political background Transitional economy Proven success Potential future Slide 5 Outline Reasons for Selection of Articles Summaries of Articles Integration of Articles Lessons Learnt from China Discussions on Vietnam Slide 6 Summaries of Articles “Technology transfer: A mode of collaboration between the European Union and China”, by Andreosso-O’callaghan, Bernadette and Quian, Wei Overview of technology transfer policy in China through encouragement of FDI and transfer from import mode to technology tranfer R&D policy Relationship with EU in TT Slide 7 Summaries of Articles “Breaking in China: Strategic considerations for multinational corporations”, by Ji Li, Gongming Quian, Kevin Lam and Dennis Wang A study of 233 large multi-national corporations investing in China Capital and technology intensive strategy has better performance than labor intensive Slide 8 Summaries of Articles “Negotiation a joint venture in China: The problem of market access”, by John Allee and Doulaglas M. Sanford Problems in negotiation to set up a joint venture in physical distribution system between Japan and China due to cross cultural issues and local administrative problems Slide 9 Outline Reasons for Selection of Articles Summaries of Articles Integration of Articles Lessons Learnt from China Discussions on Vietnam Slide 10 Integration of Articles Observation Technology transfer policy: From import into self innovation and FDI encouragement China’s view as technology buyer’s perspective MNC and JV’s perspective as sellers to China Slide 11 Outline Reasons for Selection of Articles Summaries of Articles Integration of Articles Lessons Learnt from China Discussions on Vietnam Slide 12 Lessons Learnt from China Science and Technology Highlights in 10 years Highest numbers of mobile phones in the world (190 mil) The world second country in computer using (50 mil) and the second internet user after US Slide 13 Lessons Learnt from China Science and Technology Highlights in 10 years Science cooperation with 152 countries 3rd generation mobile phone (3G/TDSCDMA) Involvement in space and biology development Slide 14 Lessons Learnt from China Technology Transfer Policy From import into technology transfer Export oriented Priority industries Encourage FDI Encourage self learning and innovation Slide 15 Lessons Learnt from China Modes of Technology Transfer FDI Licensing Technical advise Consultancy Co-production Slide 16 Lessons Learnt from China FDI Trends 1979 - 1991: Labor intensive 1992 - 2000: Capital intensive 2001 - present: Technology intensive Slide 17 Lessons Learnt from China FDI Encouragement Strategy Geographical regions: Coastal & large provinces Priority industries: 12 industries Investment incentives Special Economics Zones Slide 18 Lessons Learnt from China R&D Strategy 2% GDP year 2000 in which 40% for basic R&D Encourage local corporate R&D (60% of total national R&D budget) 400 internationally found R&D institutions Slide 19 Lessons Learnt from China Science and Technology Strategy since 1991 “Human capital attaining” strategy Appropriate salary, compensation, shares Slide 20 Lessons Learnt from China Education and Training Historical track records Largest system in the world University entry exam nationally standardized Centralized management Leadership’s awareness Trends of studies in foreign countries International students in China Slide 21 Lessons Learnt from China Technology Transfer Constraints MNCs & FIEs prefer 100% ownership mode Cross cultural issues in JVs Gap between central & local governments Corruption Slide 22 Outline Reasons for Selection of Articles Summaries of Articles Integration of Articles Lessons Learnt from China Discussions on Vietnam Slide 23 Discussions on Vietnam Vietnam Industry Highlights Industry/GDP: 21.86% (1995) -> 26.71% (1998) -> 29.05% (1999) Average growth: 12.7%/year Industry/exports: 60% Investment for industry by FDI: 61% (while FDI accounts 32% GDP) Industry revenue of FDI: 25% (1995) -> 32% (1998) -> 34.7% (1999) 67 industrial zones with high technology capabilities, exporting 50% of FDI Slide 24 Discussions on Vietnam Three Groups of Industries Competitive group: Textile & garment, shoe, metal components manufacturing Future competitive group if protected by Government in infant stage: Fibre, electric equipment, electronics, IT, chemicals, paper, glass & chinaware, construction materials, processing foods Low competitive group: Steel Slide 25 Discussions on Vietnam Implemented Industry Development Policies Economics reform Adjustment of economics structure through adjustment of investment capital Industry development: focus on priority industries which add more value, labor intensity, export oriented Legal system improvement SOE reform, private sector development, financial sector reform, administration reform Slide 26 Discussions on Vietnam Industry Development Strategy Building strong enough industry with import substitution strategy Export oriented strategy Exploring national competitive advantages Mixed between technology and labor intensities Slide 27 Discussions on Vietnam Government’s Support Policies Sufficient education and training and effective utilitisation of human resources Support to science and technology development (through policies of import or FDI) and to corporate level capability building; enhance relationships between corporate and R&D institutions Attracting investment capital in priority industries (local and FDI capitals) Protection of priority industries and encourage exports Slide 28 Discussions on Vietnam Targets for Industry Development 2010: average growth rate 10-15%; accounting for 4041% GDP; using 23-24% labor; 70-75% exports Adjustment of industrial structure in economics Slide 29 Discussions on Vietnam Solutions To Reach Targets Early establishment of industry development policies Establishment of strategy for efficient using of state’s budget for industrial development Establish of long term economics policies to support corporate development Continuing economics reform Improvement of Government’s administration Slide 30 Discussions on Vietnam Challenges of Vietnam Industries Lower competitive capabilities in compared with other countries Out of date technology Low consumption of industrial products Low rate of processing industry (foods) Low value added processing products (textile & garment) Problems in economics mechanism (SOE, private sector, financial sector, administrative procedures, etc) Slide 31 End of Presentation