Hai Phong Paint Joint Stock Company carries out a project on researching, developing and commercialising environmentally-friendly products in the first phase of the Finland-Vietnam Innovation Partnership Programme (IPP). The second phase of the programme kicked off on December 12 in Ha Noi. — Photo VNA/VNS Vu Sinh

The phase will cover the period of 2014-18. Its total expenditure is EUR11 million (US$13.6 million), with EUR9.9 million ($12.3 million) from the non-refundable official development assistance of Finland and EUR1.1 million ($1.36 million) from Viet Nam's reciprocal capital.

Speaking during the launch ceremony here on December 12, IPP Chief Technical Advisor Lauri Laakso said that Vietnamese enterprises have an inadequate understanding of the market, which hinders them in employing appropriate innovative solutions.

He said that corporate culture is one of the crucial factors in creativity and innovation. Moreover, he stressed that leaders of firms need to create a driving force to enhance innovation.

In the second phase, the program will offer training courses to boost the creative and innovative capacities of enterprises and individuals in Viet Nam.

The first phase of the IPP was implemented in the period of 2009-13, with a budget of EUR7 million ($8.69 million).

The programme is under the management of Viet Nam's Ministry of Science and Technology and the Ministry of Foreign Affairs of Finland.

The programme currently supports more than 60 projects covering four angles: improving institutional capacity, building innovation competence, supporting initiatives and innovative projects of enterprises and increasing cooperation between Viet Nam and Finland.

The IPP supports Vietnam's goal of becoming an industrialised middle-income economy by the year 2020. The programme's objective is to boost sustainable economic growth in Viet Nam through increased production and export of innovative products and services. — VNS