Chuyển giao công nghệ trong lĩnh vực công nghiệp an ninh tại tổng cục hậu cần kỹ thuật (bộ công an) tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING
FOREIGN TRADE UNIVERSITY

------------

SUMMARY OF PH.D. THESIS

TECHNOLOGY TRANSFER IN THE FIELD OF SECURITY
INDUSTRY AT GENERAL DEPARTMENT OF LOGISTICS AND
ENGINEERING (MINISTRY OF PUBLIC SECURITY)

Branch: Economics
Major: International economics
Code: 9.31.01.06

TRAN TUAN MINH

Hanoi – 2019


THE THESIS IS COMPLETED
AT FOREIGN TRADE UNIVERSITY

Scientific Instructor:
Assoc. Prof. Ph.D. Nguyen Van Hong

Opponent 1:
Opponent 2:
Opponent 3:
The Thesis will be defensed in front of the Board of Judges
of university level at ..............................

At
hour
day
month
year

The Thesis can be referred at:
- National Library of Vietnam
- Library of Foreign Trade University


LIST OF WORKS OF THE AUTHOR
1.

Tran Tuan Minh, 2014, Research on establishing the plan of
connection and supervision of temperature and humidity
parameters in the archives, storage of the Ministry via the
Internet, scientific and public themes and Ministry of Public
Security.

2.

Tran Tuan Minh, 2017, Effectiveness of Technology Transfer
in Security Industry, Journal of Finance, 2nd period of
December 2017, p. 31- 33.

3.

Tran Tuan Minh, 2018, Factors Affecting Technology
Transfer in the Security Industry, Journal of Finance, 1st

period of March 2018 (677), p. 29 - 32.


1
INTRODUCTION
1. The urgency of the theme:
At the request of the country's renewal and development, in the context
of international economic integration, the scientific capacity and potential of
our country, of the Ministry of Public Security in general and the General
Department of Logistics – Engineering in particular has been improved
constantly. The technological content of many products has increased the
quality and created added value for products and services to improve the
competitiveness of units inside and outside the public security
branch. Scientific staff are better equipped with research infrastructure and
facilities through the investment programs of the State and the Ministry of
Public Security. The system of scientific and technological organizations is
supported and facilitated to transform the management structure to suit the
situation of each unit.Technological market has been gradually formed,
promoting application and transfer of technology, boosting the
commercialization of scientific research results, linking scientific research
results with practical activities of the public security branch.
To meet the increasing demands of the industrialization and
modernization of the country in the new period, effectiveness of resources for
investment in science and technology, science and technology shall be
developed in the direction of considering the development and application of
technology transfer results as one of the most important driving forces for
developing socio-economy, defending the fatherland and maintain the political
security and social safety and order.
According to the functions and tasks of the units in the General
Department of Logistics and Engineering of the Ministry of Public Security, a

number of specialized technical equipment must be mass-produced in the
country and the concept of «security industry» is set and considered as a key
industry, play an important role in the sustainable development of the cause of
national security protection in the current situation.
However, our security industry has been facing more opportunities and
challenges than ever before. In general, the current system of research and
production facilities of the security industry has a small scale, not in line with
the requirements of fighting and development of the public security forces in
the new period. The professional facilities, specialized weapons and supportive
tools equipped to units and localities are shortage of quantity and their quality
is not high; material facilities, equipment and technological level of the
majority of research and production establishments have low technological


2
content. At present, the technical equipment of the new security industry meets
50% - 60% of the demand.
The question is how to have a strong security industry to develop
sustainably to meet the increasing demands of the national security
protection. Many technology transfer deals from abroad into Vietnam are to
serve the activities of public security forces, ensure the national socioeconomic security. However, in most of these deals, Vietnam does not have
access to the countries that own the technology, limiting the ability of
absorbing and developing technological capabilities from international transfer
technologies. Therefore, the research student forcibly studies the theme of
«Technology transfer in the field of security industry at General
Department of Logistics and Engineering (Ministry of Public Security)»,
aimed at promoting technology transfer activities at General Department of
Logistics and Engineering (Ministry of Public Security) in a young industry as
the security industry, thereby contributing to socio-economic development and
ensuring social order and security in the current situation in Vietnam.

2. Objectives of the research, Questions and Tasks of the study:
Objectives of the study:
The study objective of the Thesis is to study the scientific foundation and
propose solutions to improve and promote international technology transfer in
the field of security industry in the Ministry of Public Security.
Study questions:
- What is the technology transfer in the field of security industry? Why
transfer technology in the field of security industry?
- How is the current state of technology transfer in the field of security
industry through the General Department of Logistics and Engineering
(Ministry of Public Security)?
- What are the factors that affect the international technology transfer in
the field of security industry?
- What measures should be taken to promote the technology transfer in
the field of security industry at the General Department of Logistics and
Engineering (Ministry of Public Security) ?
Study tasks:
To carry out empirical studies and to achieve objectives and answer
study questions, 4 specific tasks have been identified as follows:
(i) Systematize and supplement theories on technology transfer
(defining connotation, channels for technology transfer and the necessity for
technology transfer in the field of security industry).
(ii) The current situation of technology transfer in the field of security
industry is implemented through the General Department IV of the Ministry of
Public Security


3
(iii) Identify factors that affect international technology transfer in the
field of security industry using case studies and questionnaires. Analyze

factors affecting the technology transfer in the field of security industry
(iv) Provide recommendations on measures to promote the technology
transfer in the field of security at General Department IV
3. Objects and scope of the study:
3.1. Study objects:
The thesis studies international technology transfer activities in the field
of security industry through the General Department of Logistics and
Engineering (Ministry of Public Security).
3.2. Study scope:
- Regarding space: technology transfer activities of units inside and
outside the General Department of Logistics and Engineering under the
Ministry of Public Security. For projects of units outside the General
Department of Logistics and Engineering under the Ministry of Public
Security, the thesis will only research the technology transfer projects
authorized to the General Department to perform.
- Regarding time: The thesis studies the technology transfer activities in
the field of security industry at the General Department of Logistics and
Engineering under the Ministry of Public Security in the period from 2009 (the
official time of establishing the General Department of Logistics and
Engineering) to 2017. During this period, almost all technology transfer
activities in the security industry are carried out through the Department of
Security Industry and Enterprises, which is a part of the General Department
of Logistics and Engineering. In 2018, although the organizational structure of
the General Department of Logistics and Engineering has changed, but the
Department of Security Industry and Enterprises is still responsible for
management of security industry. Therefore, the results of research on
industrial transfer activities in the security industry in the Ministry of Public
Security are still valuable both in practice and reasoning.
- Regarding content: The thesis deals with the technology transfer from
the perspective of the technology recipient rather than the transferor, because

the units in the General Department of Logistics - Techniques of the Ministry
of Public Security usually play a role as a recipient or as an intermediary in
international technology transfer activities.
4. Study method:
4.1. Data source:
* Secondary data:
The documents used for reference in the Thesis include: Statistical figures
and data on projects of receiving technology transfer from abroad of units under
the General Department of Logistics – Engineering – Ministry of Industry


4
Security and projects that the General Department carried out under the
authorization of units outside the General Department. The statistics were taken
from 2009 to 2017.
The analyses and comments in the Thesis are also based on the legal
documents on the security industry of the Government of the Socialist
Republic of Vietnam, the Ministry of Public Security and the General
Department of Logistics and Engineering (Ministry of Public Security).
In addition, the author also relies on statistical data, as well as research
arguments of the reports and research papers of domestic and foreign authors
about the situation of technology transfer in the field of security industry.
* Primary data
Primary data is collected through questionnaire survey. Conduct the
survey by questionnaires to the units in the General Department of Logistics
and Engineering (Ministry of Public Security) such as: enterprises, research
institutes, hospitals and departments for state management, partners and
customers inside and outside the armed force sector of General Department IV.
- The information in the questionnaire: The research student developes a
questionnaire to find out the technology transfer activities of the units in the

General Department of Logistics and Engineering and who their customers
are, find out what these units has been learned, how to innovate and renew
transfer technology, the costs of technology transfer in the technology transfer
projects, the capacity of operation and the capacity of renewal of transfer
technology, the quantity of technology transfer and smooth running rates,
number of solutions and development initiatives from the technology transfer
projects.
4.2. Study method
* Method of collecting data:
- Destop study (Method of document research): To collect secondary
data, the research student uses this method to search and synthesize from
sources such as books, journals, scientific seminar summary records,
synthesized reports of Ministry of Public Security, General Department of
Logistics and Engineering, websites of agencies and enterprises in the industry
as well as domestic and foreign magazines.
- Method of survey:
+ Study Sample: To conduct the study, the author conducted a survey
with the sample of 300 survey forms. The objects of the survey are individuals
involved in technology transfer projects in the field of security industry. The
number of survey forms obtained is 251, reaching the rate of 83.67%. The
author used a method of cluster sampling, thereby each unit participating in the
survey is considered as a cluster. The author conducted the survey with 35
units inside and outside the General Department, equivalent to 35 clusters of


5
survey. For clusters with few technology transfer projects, the author issued 5 10 survey forms for each cluster. For units regularly implementing technology
transfer activities, the number of survey forms issued is 20. Thus, the survey
sample covers most objects involved in technology transfer activities in the
field of security industry (implemented through the General Department of

Logistics and Engineering (Ministry of Public Security).
+ Objects of the survey: enterprises in Department H59 (Department of
Security Industry and Enterprise Management), research institutes, hospitals,
departments in charge of state management and units under the departments at
General Department of Logistics and Engineering, customers and partners of
General Department of Logistics and Engineering (including armed force units
inside and outside the industry such as: public security of units, localities;
customs; army). The respondents are those who have been involved in security
technology transfer projects.
+ The survey period is 4 months, from July 2017 to November
2017. As a result of the post-cleansing survey, 251 survey forms were
obtained to conduct the EFA and regression analysis using SPSS 20
software.
* Method of data analysis
The thesis uses a combination of study methods such as:
- Qualitative method: (Method of statistics, description, analysis and
synthesis). The research student uses data analysis software tool SPSS 20 to
synthesize and analyze data. The author uses this method with criteria such as
number of average, frequency, percentage... to describe the current state of
technology transfer and evaluate the results of technology transfer in the field
of security industry at General Department of Logistics – Engineering. The
evaluation of the current status of technology transfer in the security industry
is also based on a number of judgments, reports and self-assessments of units
in the General Department of Logistics - Technology (Ministry of Public
Security) over time.
- Quantitative Method: The research student uses the method of
checking the reliability of scale (Cronbach's alpha factor), Exploratory Factor
Analysis (EFA) method, and then performs multi-linear regression to see if
there is a linear relationship between a single dependent variable (technology
transfer result) and different independent variables (influencing factors) to

estimate and test the factors affecting the transfer technology in the field of
security industry.
5. Structure of the theme:
Apart from lists of tables, acronyms, conclusions, appendices,
references, the Thesis is structured in five chapters as follows:
- Chapter 1. Overview of study situation related to the Thesis


6
- Chapter 2. Overview of technology transfer in the field of security
industry
- Chapter 3. Current status of technology transfer in the field of security
industry at the General Department of Logistics and Engineering of the
Ministry of Public Security
- Chapter 4. Analysis of factors affecting the technology transfer in the
field of security industry at the General Department of Logistics and
Engineering of the Ministry of Public Security
- Chapter 5. Solutions of completing technology transfer in the field of
security industry at the General Department of Logistics and Engineering of
the Ministry of Public Security.
CHAPTER 1. OVERVIEW OF STUDY SITUATION RELATED TO
THE THESIS
1.1. Foreign study situation
There are many foreign studies that deal with technology transfer such
as some authors: Tyhanyi and Roath (2002), Mascus ( 2003 ), Li.Q
(2014); Sanjay Kumar et al., (2015); Astrid Szogs (2010); Rashid Ali Al-Saadi
(2010), Bozeman, (1994); Geisler and Clements (1995); Sandelin
(1994); Phillip H. Phan and Donald S. Siegel (2004), Schlie et
al. (1987), approaching on many different aspects. Regarding the technology
transfer model, many authors approached the qualitative model Behrman and

Wallender (1976), Dahlman and Westphal (1981), Chantramonklasri
(1990). However, many authors studied the quantitative model, assessing the
factors affecting the technology transfer such as Li.Q ( 2014 ); Sanjay
Kumar et
al.
( 2015 ) ; Astrid
Szogs ( 2010 ) ; Rashid
Ali
AlSaadi (2010); Tang Ming Feng (2009); Jean-francois Eck ( 2011), Kneller et
al. ( 2010).
There are not many studies on the security industry and technology
transfer in the field of security industry, mainly from the studies from the
perspective of security and defense. The main authors mainly in this issue
include: ASIS Foundation (2013) ; Vincent Boulanin (2012) ; Ecorys research
and Consulting (2009) ; Martí Sempere, C. (2010), James B. Rose,
B.S ( 1995), Wayne M. Johnson (1998) . These studies do not address public
civil security (of the armed forces) or merely cover the general technology
transfer for the economy in general, of which a small portion related to national
security, not mentioning the effectiveness of technology transfer in the field of
security industry. These are gaps in the study that the research student can take
advantage.
In the study, the research student only approaches in the respect of the
security industry in the armed forces, (notably at the General Department of


7
Logistics and Engineering under the Ministry of Public Security), not in terms of
military (defense) or at private security service companies. This is also a new
topic and has not been studied by many authors so this can also be considered a
new point in the study. The research student depends on models of Schlie et al.,

and analyses of some other authors such as Li.Q to establish the research model
on the basis of quantitative analysis to determine the factors that influence the
outcome of transfer technology in the field of security industry, then propose
appropriate solutions.
1.2. Domestic study situation
There are quite many study works on technology transfer in Vietnam,
authors or group of authors through their own study works such as books,
textbooks, theses, articles, etc. (of authors such as Ho Sy Hung (1996), Pham
Duc Nghiem et al. (2011), Dang Kim Nhung (1994 ) ; Shoichi Yamashita; Luu
Quy Tan ( 1994 ), Phan Xuan Dung (2004), Ngo Van Que (2001), Ha Thi
Ngoc Oanh (2006), Vu Chi Loc (2016), Phan Xuan Dung (2017) etc. But most
of the works haven’t established the model of technology transfer and in the
qualitative aspect, only a few in quantitative aspect such as of Nguyen Van
Anh (2012), Pham Duc Nghiem et al. (2011). The studies generally refer to
technology transfer in Vietnam, not technology transfer in a particular sector
such as security industry.
Regarding security industry and technology transfer in the security
industry, there are almost very little domestic studies mentioning these
contents, except for a number of management agencies such as Ministry of
Public Security, General Department of Logistics and Engineering. In addition,
there are a number of separate studies on the security and security industry of
many authors compiled and published by the Theoretical Council of Vietnam
Ministry of Public Security in 2014 and some studies of Tran Dai Quang, Nguyen
Quang Yem (2015) outlined some issues of security industry product and
definition of security industry. The arguments and research data of these authors
are also used as reference materials in the Thesis. However, the arguments about
technology transfer in the field of security industry have been still very lacking,
the research student has not found any study that covers, in a systematic and
comprehensive way, the technology transfer in the field of security industry. .
Through the review of study works in Vietnam, it can be seen that there

are no study themes on technology transfer in the field of security industry in
Vietnam and the General Department of Logistics – Engineering (Ministry of
Public Security). These are the gaps that the research student can use up to carry
out the study.
1.3. Study gap of the theme
In the above study works, the author finds some gaps in the study such
as: (i) Regarding study content: There are not many studies in the world


8
related to security industry, mainly about defense industry. In Vietnam today,
the concept of security industry is vague, and is often understood within the
scope of the defense industry. As a result, there is no study on security industry
in Vietnam, moreover, at the General Department of Logistics and
Engineering; (ii) Regarding study method: The study works in the world
mainly use qualitative, quantitative methods or both, the study works in
Vietnam mainly use qualitative method. The thesis boldly adopts and
selectively uses quantitative study method in analyzing the factors that affect
the technology transfer in particular fields such as security industry, thereby
have appropriate solution to improve the efficiency of this activity, ensuring
the development of the security industry in the coming years.
CHAPTER 2. OVERVIEW OF TECHNOLOGY TRANSFER IN
THE FIELD OF SECURITY INDUSTRY
2.1. General issues on security industry and technology transfer in
the field of security industry
2.1.1. Related concepts:
“Technology is a collection of knowledge, information or way of
organization combined with tools and means to a certain extent to reach a
particular objective of an organization”.
"Technology transfer is the transfer of ownership of or right to use a

part or the entire technology from the technology transferor to the technology
transferee under certain legal regimes in order to create a certain
technological capacity for the transferee technology"
"Security Industry is a system of units of research, production, repair,
improvement and modernization of technical equipment, supportive tools,
information technology, specialized weapons. ... to serve the work and fighting of
the public security force and serve the needs of security and social
safety " (Theoretical Council of the Ministry of Public Security, 2014). Within the
scope of the study, in the perspective of a person working in the public security
branch, the author of the thesis applies the definition of the Theoretical
Council of the Ministry of Public Security of Vietnam, because the concept
also mentions dual security, including military security (in state security units)
and civil security.
" Technology transfer in the field of security industry is the process of
transferring the ownership or the right to use part or all of the technology from
the technology transferor to the technology transferee under certain legal
regimes aimed for the purpose of serving the work and fighting of the public
security force and meeting the needs of ensuring security and safety in society".
Thus, technology transfer is not only carried out in the public security
branch (public security force) in order to improve the operation capacity,
ensuring the work of maintaining social safety of the sector but also


9
implemented in the field of civil security (at private security companies),
meeting the need for self-protection of the people. However, in the perspective
of the Thesis, the author refers only to technology transfer in the field of
security industry in the public security branch (ie. within the scope of security
forces such as police). Even so, technology transfer products in the field of
public security industry are also in double purposes, meaning that they serve

the professional work of the public security branch and the double purposes of
other civil areas.
2.1.2. Characteristics of technology transfer in the security industry
* Characteristics of the security industry : (i) Confidentiality; (ii)
Double applicability; (iii) Economy; (iv) Science
* Characteristics of technology transfer in the field of security industry: (i)
Technology transfer in the field of security industry is increasingly
diversified; (ii) Increase the global cooperation, technology transfer in the field
of security industry; (iii) Trend of transfer of double-applicable technology.
2.1.3. Theories of industrial security
At present, there are only some theories about security industry. These
theories also lay the foundation for the development of this new
industry. However, the research student has not found the theory of technology
transfer in the field of security industry. Theories of technology transfer in the
field of security industry are based on theoretical models (procedures) of
technology transfer (discussed in section 1.1.3).
2.1.3.1. Theory of the security industry market
Ecorys research and Consulting company, 2009, in the analysis of the
competitiveness of the EU security industry, developed a model of the security
industry market (or security area) in the aspects of: (i) ) Approach from
security threats; (ii) Approach from the demand; (iii) Approach from the
supply; (iv) Common scope of security area
Through this model, the authors have come up with a comprehensive
picture, distinguishing between military and non-military security, clarifying
the relatively fragile boundary between the two these forms.
2.1.3.2. The theory of Carlos Martí Sempere and Vincent Boulanin on
the boundary of the security industry
Based on the analyses of risk-based classification by Carlos Martí
Sempere (2010) related to the boundary of the security industry when
analyzing the EU security industry, Vincent Boulanin (2012) has developed

references to classification of security industries. According to Vincent
Boulanin, the term "security industries" should be used instead of "security
industry" because of the diversity as well as difficulty in delimiting the
industry. This classification, according to the authors, would allow the research
students to analyze different security industries in a better way.


10
2.1.4. Process of technology transfer
In the world, technology transfer processes are carried out in different
models.
Model 1: Behrman and Wallender Model: Behrman and Wallender
(1976) proposed a seven-stage process in international technology transfer
involving multinational corporations, a seven-stage model.
Model 2: Dahlman and Westphal Model: Dahlman and Westphal (1981)
conducted study in Korea, and based on their experience of industrialized
countries in the 1980s, in the Far East, proposed a nine-stage modeling process
from feasibility studies prior to investment to handling the incidents and work
arrangement.
Model 3: Model of Schlie, Radnor, and Wad: Schlie et al. (1987)
proposed a simple common pattern, outlined seven factors that can affect the
planning, implementation and ultimate success of any project of
technology transfer, including the transferors, the transferees, the technology
and transfer mechanism, the environment of the transferor and the transferee and
the surrounding environment of both Parties.
Model 4: Model of Chantramonklasri: The model of Dahlman and
Westphal was further improved when Chantramonklasri (1990) proposed a
five-stage model from pre-investment and feasibility study to the
commencement of commercial production.
In practice, depending on the specific situation of each country, the

process or model of technology transfer in the field of security industry is
different. In China, the technology transfer for technological products in the
field of security industry is done through regulatory authorities, but in France,
each unit of the public security force or enterprise can conduct the technology
transfer in the field of security industry by its own through the security industry
market without performing the application for license from the management
agency (except in some special cases).
2.2. Necessity and content of technology transfer in the field of security
industry
2.2.1. Necessity for technology transfer in the field of security industry
Firstly, the progress of politics is increasingly complex
Secondly, high tech crime tends to increase and become more
sophisticated
Thirdly, the stormy change speed of technology in the world
Fourth, the conflict between increased demand for security and
backwardness in the supply of security products and services
2.2.2. Forms and channels, objects of technology transfer in the field
of security industry
2.2.2.1. Forms of technology transfer


11
* According to the flow of technology transfer
Technology in the field of security industry can be delivered vertically
and horizontally.
Vertical technology transfer: Technologies in the civil security industry
can be co-operatively transferred in this form to save study costs, as well as to
accelerate technology transfer to the market, reduce the invisible wear of
technology and technological products in the context of faster replacement of
technologies as today.

Horizontal technology transfer: Under-developed and developing
countries often import the technology horizontally due to limit in technological
study capacity as well as limit in investment capital for technological study
and development. Maintaining the national security and safety is largely
dependent on technologies and technological products transferred from abroad.
2.2.2.2. Channels and objects of technology transfer According to
technology transfer channel
Technology transfer can be implemented in two channels: direct channel
and indirect channel. For industrial security products, the transfer method is also
implemented through these two channels.
The objects of technology transfer in the field of security industry as
well as other industrial fields, include: (i) technical know-how (technological
know-how); (ii) technological plans and procedures, technical solutions,
specifications, drawings, diagrams; formulas, computer software, data
information; (iii) solutions of production rationalization, technological
innovation; (iv) machinery and equipment accompanying one of the above
objects.
In many cases, as owning countries often prefer to keeping technical
know-how, most of the technology transferors in the field of security industry
often transfer products, machinery, deliver technical know-how.
Technological products transferred under technology transfer projects in
the field of security industry are quite diverse due to the highly increasing need
for ensuring security and safety in society, including the military and civilian
sectors. Technological products imported under technology transfer projects in
the military field are often focused on specialized tools, facilities and
professional technical equipment for combat operations of armed and security
forces, such as types of weapons, tools to suppress and prevent from crimes;
audiovisual, surveillance, inspection, forensics and other professional
documents; specialized equipment to fight against terrorism, riots; specialized
means of transport, patrol, search and rescue activities; security and safety

equipment in military and civil.
2.3. Model of factors influencing technology transfer in the field
of security industry


12
2.3.1. Theoretical background on factors influencing technology
transfer
There are many studies on the factors that affect the technology transfer
in many different fields. The studies of Kumaraswamy and Shrestha (2002),
Malik (2002), Lin and Berg (2001), Fisher and Ranasinghe (2001), Cohen and
Levinthal
(1990),
Fosfuri
and
TRIBO (2008),
Todorova
and
Durisin ( 2007), Tsai ( 2001), Deeds ( 2001), Jones and Craven ( 2000), Lim
and Klobas (2000), Lihua (2001), Ma du (1989) and Lai and Tsai (2009), Zhou
and Sun (2005), Odigie (2012) and Megantz (2002), Sun and Scott (2005),
Li.Q (2014) showed that when studying technology transfer, each author looked
at a different aspect, under the various technology transfer models. Therefore,
the viewpoint on factors influencing the outcome (or success) in technology
transfer is different. In this Thesis, the author bases on the model of technology
transfer of Schlie, Radnor, and Wad (1987), and the results of study by Li Q.
(2014), Kumaraswamy and Shrestha (2002), Malik (2002) to build model of
factors influencing technology transfer efficiency in the field of security
industry.
Since the security industry is a specific, relatively new and confidential

area, there is almost no study in the field, and moreover is the issue of
technology transfer in the security industry field. Therefore, the author chooses
to study this issue on the basis of many studies on technology transfer and
application in specific fields such as security industry.
2.3.2. Factors affecting technology transfer in security industry field
Based on many studies on factors influencing technology transfer, the
author of the Thesis presents six groups of factors that may affect the results of
technology transfer in the field of security industry as follows: i)
Characteristics of technology in the field of security industry; (ii) external
environment (including political, cultural, social environments); (iii) the
Government; (iv) Characteristics of the technology transferor; (v)
Characteristics of the technology transferee; (vi) communication environment
between two parties.
Technology characteristics in the field of industrial security is
expressed through a number of criteria such as: (1) high complexity, require a
high level of technology that can not be produced domestically; (2) double
application , can be applied in many different fields, including the field of
civil and national security; (3) inheritance and consistency with the current
technology of the beneficiaries.
Characteristics of technology transferor will also affect the result of
technology transfer in the field of security industry. These characteristics are
expressed through: (1) the willingness to perform the transfer contract;
(2) good cooperative attitude ; (3) experienced in transfer; (4) the ability to


13
manage and own source technology ; (5) have full intellectual property
rights over the transferred technology.
Characteristics of the transferee include: (1) ability to readily receive
and learn the technology ; (2) clear understanding of the transferor and the

technology to be transferred; (3) full experience to acquire and apply
technology; (4) full investment in R&D to control technology, improve and
complete the technology; (5) adequate technical facilities to receive and
operate the technology; (6) human resources with the necessary skills and
qualifications to receive and operate the technology; (7) encourage and
create learning environment for employees.
Government factor affects the technology transfer in the field of
security industry through the following activities: (1) issuing policies to
encourage businesses to learn foreign know-how; (2) encourage the
recipient of the technology to link with the research units and assist the
company in absorbing technological knowledge; (3) encourage businesses to
invest effectively in R&D ; (4) support in financial terms; (5) protect the
interests of enterprises when joining the security industry; (6) issue technical
standards prominently for transferred technology; (7) assist in the search for
technology supplies and promotion of technology transfer activities; (8)
systematic provisions for the protection of intellectual property
rights; (9) regulations on the technology transfer process in the field of
security industry; (10) issue a mechanism for the formation of the domestic
security industry market; (11) participate directly in the project of technology
transfer. Government factor is separated from the external environment
because the security industry is characterized by the great impact of the State.
In order for technology transfer activities to be successful, the
communication environment between two parties should be ensured : (1)
create mutual understanding: (2) having a firm commitment to the
performance of the obligations of both Parties; (3) have mutual trust ; (4)
have easy and convenient communication; (5) the Parties are willing to
assist, train and operate the transfer technology; (6) have strict supervision
of the transfer project; (7) may be made through third parties.
The external environment (in political - social – cultural terms) can be
influenced by: (1) political stability ; (2) cultural differences between two

countries. The specialty of the security industry is related to risk.
2.3.3. Evaluation of the result of technology transfer in the field of
security industry
As far as study is concerned, the research student believes that the
results of technology transfer, especially in the field of security industry, are
reflected in the ability to meet the defined objectives of the economic,
political and social transferee.


14
From the establishment of definition of technology transfer, a number of
studies identified criteria for technology transfer. Based on the studies of Chen
(2011), Teece (1976), Staikarn (1981), Mansfield (1982), Leonard-Barton &
Sinha
(1993),
Davenport
&
Prusak
(1998), Bhatia
(1998) , Pursell (2000), Rouach
(2003), Waroonkun
&
Stewart
(2008), Mohamed et al. (2010), the author of the thesis found that the result of
technology transfer in the field of security industry must be measured by the
targets of added value in economic and added value terms in the application of
security industry product production, increase the knowledge acquisition
capacity of the technology recipient from the transfer technologies.
Regarding economic targets, the result of technology transfer are
reflected in the added values delivered by the transfer technology in terms of

(i) consistent with cost and quality of technology, (ii) increasing competitive
capacity for security enterprises and (iii) meeting the commercialization
potential of the transfer technology.
Regarding the production, the result of technology transfer is reflected
in the added values of production activities through targets of (i) accelerating
the time between the transfer to the time when the product is applied in mass
production , (ii) increasing the production capacity of the product of the the
transferee, (iii) technology suitable for the environment of Vietnam without
needing following processing stages: (iv) products produced from transfer
technology transfer is modern, synchronous and suitable to the needs in the
industry and the whole society. Production targets also reflect the quality of the
technology transfer.
Regarding the ability to absorb knowledge and technology transferred in
projects, the following criteria shall be ensured: (i) improve knowledge and
workmanship for employees; (ii) ensure confidentiality in the professional
operations of the security industry; (iii) help the technology recipient to
apply and improve technology features to put into operation in the long
run; (iv) help shorten the technological gap in Vietnam's security industry
compared to other countries, ensuring efficiency in ensuring security work in
Vietnam.
2.3.4. Model of evaluating factors that affect the technology transfer
in the field of security industry
The model of factors affecting the technology transfer in the field of
security industry is defined in linear regression as follows:
Y = β0 + β1.X1 + β2.X2 + β3.X3 + β4.X4 + β5.X5 + β6.X6 + ε
In which:
Y: dependent variable, showing the result of technology transfer.
β0: intercept, constant

15
β1, β2, β3, β4, β5, β6: regression coefficients corresponding to independent
variables
X1, X2, X3, X4, X5, X6: independent variables, corresponding to variables
Characteristics of the transfered technology, Characteristics of the technology
transferor, Characteristics of technology transfee, the Government, the
communication environment between two parties, external environment.
ε: error.


16
CHAPTER 3. CURRENT SITUATION OF TECHNOLOGY
TRANSFER IN THE FIELD OF SECURITY INDUSTRY AT GENERAL
DEPARTMENT OF LOGISTICS – ENGINEERING OF MINISTRY OF
PUBLIC SECURITY
3.1. General information about General Department of Logistics –
Engineering of Ministry of Public Security and Department of Security
Industry and Enterprise Management
3.1.1. General introduction of General Department of Logistics –
Engineering of Ministry of Public Security
General Department of Logistics and Engineering under the Ministry of
Public Security of Vietnam, is the leading strategic agency advising the
Minister of Public Security on the logistics and engineering work in the entire
People's Public security branch. The organizational structure of the General
Department of Logistics and Engineering has 29 units directly under the
General Department, divided into 4 blocks: Block of units helps the General
Department perform the State management functions, Block of research
institutes, Block of hospitals and enterprises.
3.1.2. General introduction of Department of Security Industry and
Enterprise Management

Department of Security Industry and Enterprise Management (H59) is a
unit of General Department of Logistics and Engineering (Ministry of Public
Security). The Department was set up in 2015 under Decision No. 1136/QDBCA dated March 6th, 2015 by the Minister of Public Security. Accordingly,
the Department of Security Industry and Enterprise Management is responsible
for assisting the General Director of the General Department IV in unifying
the management of the security industry, enterprises and public non-business
units with revenues and production establishments in People’s Public
Security; Formulate and implement investment projects on investment,
research and production of equipment and means in service of combat work
and the building of the People's Public Security force; Organize the investment
in the development and management of the security industry infrastructure
according to the regulations of the State and the Minister.
3.1.3. Study capacity and application of science and technology of
units in General Department of Logistics and Engineering (Ministry of
Public Security)
Units in the General Department regularly apply scientific study into
professional activities to ensure the adequate supply of professional facilities
and increase the fighting capability of the units of the People's Public Security
force, contributing to security in society.


17
3.2. Current status of technology transfer activity in the field of
security industry through the General Department of Logistics and
Engineering
3.2.1. Legal basis for technology transfer in the field of security
industry
The policy system related to technology transfer in the field of security
industry is mainly based on the following legal bases:
(i) System of documents specifying technology transfer

(ii) System of documents specifying security industry
Regulations on the equitization of activities of state enterprises in the
field of security; Regulations on technical standards and regulations in specific
fields.
The system of legal documents on technology transfer in the field of
security industry is currently lacking and incomplete, not updated in line with
the current situation, taken as a guideline for scientific and technological
activities of units in the field of security industry.
3.2.2. Process of technology transfer in the field of security industry at
the General Department of Logistics and Engineering of Ministry of Public
Security
Within the scope of the theme, the author mainly presents the process of
technology transfer in terms of receiving technology transfer from the General
Department of Logistics and Engineering. Technology transfer activity at the
General Department of Logistics and Engineering is usually implemented
through 6 steps as follows: (i) Step 1. Understanding domestic demand; (ii)
Step 2. Find out the source of the transferred technology supply; (iii) Step 3.
Approve the technology transfer project policy ; (iv) Step 4: Conduct the
signing of technology transfer contract; (v) Step 5. Appraise the transferred
technology before import; (vi) Step 6. Implement the technology transfer
contract
Because the large number (about 80%) of facilities of the public security
branch are transferred from abroad through the channel of the General
Department IV, it can be said that the process of receiving technology transfer
in the General Department IV reflects the overall process of the entire branch.
3.2.3. Situation of technology transfer in the field of security industry
at General Department of Logistics – Engineering of the Ministry of Public
Security
3.2.3.1. Number of technology transfer contracts
The technology transfer activity in security industry shall be carried out

in accordance with the internal need of units within the General Department
and entrusted by other units inside and outside the People's Public Security
branch.


18
For contracts performed from internal demand, the enterprises are
mainly focused on, because this is the force of production, supply of goods,
military equipment, military equipment for the public security branch. The
number of technology transfer contracts in enterprises accounts for proportion
higher than that of other units in the General Department. In 2009, this rate
was 32.2%, with 21 contracts, in 2017 it doubled, about 73%, with 234
contracts.
In addition, the majority of the technology transfer contracts also derives
from external demand, not only for production and tooling, for combat, work
and other activities of the public security branch in particular and serve the daily
life of people outside the branch in general. In 2015, the entrusted number of
technology transfer contracts performed through the units of General
Department IV exceeded the number of contracts serving internal needs. The
number of entrusted contracts is mainly through enterprises under the
Department of Security Industry and Enterprise Management. However, in
2016 and 2017, the equitization trend of enterprises under the Ministry of
Public Security, as well as the loosening of regulations on international
technology transfer made the number of entrusted technology transfer
contracts through units of the General Department and the Department of
Security Industry and Enterprise Management tend to slow down.
3.2.3.2. Form and channel of transfer
Most of the technology transfer contracts at the General Department are
implemented in three forms: through ODA projects, through independent
technology transfer contracts and the direct import form, mainly through direct

import from foreign companies. For equipment and technologies in the health
sector, they are mainly imported under ODA projects. Only a few technology
transfer contracts are implemented in the form of independent technology
transfer contracts, mainly with technical know-how and industrial property
rights, which allows the technology recipient to develop the technology.
The cause of the phenomenon is the security requirement in the public
security branch, due to difference in the level between the technology
transferor and the acquisition ability of technology recipients in Vietnam. In
the long run, this situation should be improved to ensure the development of
high-tech resources of the security industry in Vietnam.
3.2.3.3. Technology transfer partners
* For technology serving for medical : Technology transfer partners in
the health sector are mainly in countries with advanced medicine, modern
medical technology and equipment. Most of the technology and medical
equipment are imported under technology transfer contracts with partners from
Japan (33.8%), USA (20%), Germany (18.5%). .
* For technology serving for fighting:


19
Previously, in the 1960s and 1990s, most of the technologies in the
public security branch were received from countries such as the Soviet Union
(then the Russian Federation), China, the GDR and some Eastern Europe
countries, at present, the preferred partners in the selection of technology
transfer acquisition are the United States, Japan, European countries (Austria,
Germany, France, Holland, Finland), Australia, NIEs (new industrial economies)
(mainly from Korea, Singapore) and some Southeast Asian countries such as
Malaysia and Thailand.
3.2.3.4. Transferred objects
Due to the restriction from supplies, most technology transfer contracts

in the units of the General Department are still the transfer of devices,
programs together with the instructions, operation in order that the technology
recipient can put technology into production. However, the technology transfer
contracts of this type often limit the development and innovation of technology
to meet the conditions of Vietnam. This poses quite big challenges for the
enhancement of technological capacity, especially in the public security branch
where modern resources with high quality are needed.
3.2.3.5. Products and technical facilities transferred
Most of above mentioned devices are transferred under the commercial
import channel, some devices are transferred attached with technology transfer
contracts and under ODA projects. Although some types of equipment in the
above-mentioned category have been produced domestically, the supply
capacity is limited, the upgrading and supplement of equipment from abroad
still need to be carried out regularly to avoid the backward situation compared
with the foreign countries.
3.3. Result of technology transfer in the field of security industry at
General Department of Logistics – Engineering of Ministry of Public
Security
3.3.1. Economy
Technology transfer costs (calculated according to a technology
transfer contract) include all expenses related to the transaction, procurement
of equipment, technological lines and services related to technology
transfer. Depending on the type of technology and type of product and the
method of transfer, the technology transfer costs will vary.
Most of the deals with brand transfer and transfer of know-how or plus
solutions (such as know-how of design, manufacture, production, testing and
evaluation under the international standards...) are often quite expensive and
there are not many contracts, expressed in the low proportion of technology
transfer/total transfer contracts. With the brand transfer methods, the proportion
of contracts transferred is relatively small, often allocated at a high cost (about

USD 7 million). The method of product transfer is distributed at all costs, but the


20
number of contracts with only product transfer mainly costs less than USD 3
million.
The technology transfer costs in the contracts of the units of public security
branch are often high, because most deals are performed through intermediary
channels as commercial companies. Costs through these channels are often much
higher than the true quality correlation of the transfer technology.
Possibility
of
commercialization
of
technological
products : Many technological products have been modified according to
Vietnam's environment and can be applied to activities in the security branch,
have a high commercialization in the civil fields. Applied products from the
innovation and improvement of transfer technology have been highly
appreciated by the users inside and outside the industry. In addition to meeting
domestic needs, the technologies of the industry have also been transferred to
Laos and Cambodia in spite of small numbers.
3.3.2. Knowledge added value
Improvement of knowledge and workmanship : The technologies
transferred internationally has contributed to improving the level and skills and
workmanship of the staff in the units of the General Department. The study
capacity of technical science & technology is unbalanced among fields, only
focusing on 4 groups, mainly Informatics (19.5% of study theme), Health
(15.3%), Electronics and Telecommunication (14.2%), Biochemistry
(11.8%). The main reason is the lack of staff, experts and technical facilities

for study.
Ability of technology application and renewal: Average productivity
level of each kind of product or equipment varies, but it is higher than that of
the current technological line of the industry. Regarding technology renewal
capability at the General Department : Most technology transfer contracts are
implemented either in the form of direct import or by the method of product
transfer, which limits their ability of technology renovation based on the
transferred technologies.
Modernity of technology : The quality of technology is reflected by the
modernity of technology (determined by the distance between the level of
technology under the technology standard of the country/the party receiving the
technology and the world (or by the original technology manufacturer) - may
use the terms "one generation", "two generations" ... or measured in years); and
the appropriateness of the transfer technology (measured by the number of new
input devices from the technology transfer project running jointly and stably
with existing equipment of the organization/ industry)
Regarding the remaining average use value rate of equipment
transferred through ODA channels : 82%, NK: 100% . In terms of form and
pattern, the product produced from transfer technology often has an eye-


21
catching, beautiful and diverse shape than the domestic products, meeting the
synchronism with the existing equipment system of the People’s Public Security
Branch (General Department of Logistics – Engineering, 2014). Regarding the
modernity of transfer technology, as compared to the existing technological
products of the People’s Public Security, the transfer technological products
are more modern, often in technological generation II or III, compared to the
current level of technology in the industry. However, if compared with
international standards, most of the transferred technological products in the

technology transfer contracts of the public security branch in general are still
backward in general than about 10 to 20 years.
3.3.3. Production added value
Time of implementation of technology transfer and production
application: It takes time from the implementation of technical and economic
evaluations to obtain the approval of receiving technology transfer to completion
of transfer contract and application to the mass production. The time of
technology transfer corresponding to the products and professional facilities in
types 3, 4 and 5 is usually faster, mainly due to the transfer in the form of
product transfer, after the imported tools and facilities can be applied to the
work of fighting or specialized production. The time of evaluation will also be
faster than other types. For professional facilities that require longer evaluation
duration such as types 1 and 2 because the contracts are often performed
partially, it takes more time compared with types 3, 4 and 5. However, in order
to meet urgent requirements, the implementation of the transfer can proceed
more quickly, usually in the form of product import.
The product production capacity is in line with the needs of the
industry and environment of Vietnam. The security industry products have
initially met the requirements of working, fighting and building the People's
Public Security force, providing timely assistance to Laos and Cambodia
countries, which are recognized and highly appreciated by the friendly
countries.
3.4. Evaluation of technology transfer activity in the field of security
industry at the General Department of Logistics – Engineering of
Ministry of Public Security
3.4.1. Obtained result
a, Result:
Looking back on the technology transfer activity at the General
Department of Logistics and Engineering from 2009 to 2017, it can be seen
that thanks to the efforts of the units in the General Department, the activities

of receiving modern technology from foreign countries have achieved certain
results, such as:
Firstly, access to many high-tech resources in many security fields;


22
Secondly, the modernity of technology in the industry increases
compared to the current level;
Thirdly, the study capacity of the units in General Department IV is
enhanced by the application and renewal of technology transferred from
abroad;
Fourthly, increase the production capacity of professional means for the
works and fighting of units inside and outside the branch;
Fifthly, improve the quality of professional technical products, ensuring
the performance of the industry.
b, Cause of the above results:
Firstly, the units in General Department IV have actively searched
for sources of technology transfer;
Secondly , the units in General Department IV have implemented many
professional training measures for human resources in their units;
Thirdly, the State has a policy of support and preference of finance,
capital, tax and administrative procedures related to the acquisition of transfer of
modern technologies from abroad to Vietnam;
Fourthly, technology transferees have taken the initiative in negotiating
and concluding technology transfer contracts with foreign partners to reduce
transfer costs as well as gain control and development as well as brand of
technology after the deployment.
Fifthly, the Ministry of Public Security has a lot of policies of
encouraging officiers in the branch to intensify study and experiment of new
solutions and innovations and apply scientific and technical achievements.

3.4.2. Limits and causes
a, Limits
In addition to the results, achievements and technology transfer activiy
at the General Department of Logistics and Engineering (Ministry of Public
Security) also encountered many obstacles, such as:
Firstly, depend on the transferor;
Secondly, the cost of technology transfer is still high due to failure to
access technology supply focal point.
Thirdly, the duration of the transfer lasts long, which makes the
application to mass production and commercialization become slow
Fourthly, the modernity of technology is not high;
Fifthly, the quality of technology is not commensurate with the cost of
purchasing technology;
Sixthly, Vietnamese parties still have limited access to know-how, which
limits the ability to innovate, research and develop the technology.
b) Causes of above mentioned shortcomings
Firstly, regarding the State side