Viettel, one of the very few local firms to be involved heavily in research and development (R&D) activity, has set the target of obtaining the area’s revenue of up to US$1 billion by 2015, said the Viettel R&D Institute.
The military-run mobile operator aims to increase the current number of staff to 10,000-15,000 by 2015 as cited by Nguyen Dinh Chien, head of the institute. It plans to deploy all related processes from research, design to production in line with the present global trend, expected to help save thousands of billions of dong on imports as a result.
In fact, Viettel’s financial capacity is strong enough to implement such large-scale schemes following the State policy allowing local enterprises to spend 10% of their pre-tax profits on R&D activity. This year Viettel has poured VND2 trillion into the plan.
To translate the ambitious target into reality, Viettel will focus on producing products for internal demands within five years before establishing its presence on the market as a supplier.
As a new player in the increasingly competitive market, the group specializes in individual products in small quantities targeting certain market segments instead of competing head-on with foreign giant hi-tech groups or imitating what Chinese counterparts have done.
In 2011, the institute succeeded in designing and manufacturing 16 sample products for military and civil purposes among 22 products that the institute has been studying. This year it looks to turn out 350,000 USB 3G, 400,000 3G mobile phones, 10,000 wireless fidelity accessing devices, and 20,000 base transceiver station automatic monitoring devices among others.
R&D activity plays an important role in forming their competitive capacity on the market. However, most local companies have still disregarded this area, leading to their poor investment in this activity consequently.
The Saigon Times Daily