How has outdated Chinese technology entered Vietnam?
Vietnamese businesses are continuing to import outdated Chinese technology despite repeated warnings by scientists that the country could become a ‘technology landfill’. The latest report of the Ministry of Science & Technology shows that technologies used in most industries in Vietnam are outdated, causing serious pollution to the environment. While Vietnam’s global competitiveness in 2015 ranked 56th among 140 surveyed countries, its readiness in technology ranked 92nd, technology absorption 121st and ability to adopt new technology 112th. Experts have found a common characteristic of non-performing investment projects: they all use outdated technologies. These include the Ninh Binh fertilizer plant, Dinh Vu polyester plant and Thai Nguyen steel mill. Meanwhile, the leaders of the Vietnam Railway Corporation have been reprimanded for buying 160 used carriages from China. Why do Vietnamese businesses like Chinese equipment? At Hoa Sen Group’s extraordinary shareholders’ meeting held some days ago, when asked about the technology to be used at the Ca Na steel project, Le Phuoc Vu, president of Hoa Sen, said cheap materials in China were used to make equipment.
