Ordinance No. 02/2008/PL-UBTVQH12 on National Defense Industry

ORDINANCE

National Defense Industry

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NATIONAL ASSEMBLY STANDING COMMITTEE

BASED on the Constitution of the Socialist Republic of Vietnam in 1992 as amended and supplemented by Resolution No. 51/2001/QH10;

BASED on Resolution No. 11/2007/QH12 of the National Assembly regarding the Program for Law and Ordinance Building during the XIIth term (2007-2011) and in 2008.

The Standing Committee of the National Assembly promulgates this Ordinance on the national defense industry.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Ordinance stipulates principles for building and developing the national defense industry; tasks and organization of activities in the national defense industry; planning, plans, resources for building and developing the national defense industry; policies towards the national defense industry; authorities and responsibilities of agencies, organizations, and individuals in managing and implementing tasks related to the national defense industry.

Article 2. Applicability

This Ordinance applies to agencies, organizations, and individuals of Vietnam, and foreign organizations and individuals participating in national defense industry activities.

Article 3. Position and Tasks of the National Defense Industry

1. The national defense industry is an important part of the country's defense and security strength and potential; it is a component of the national industry.

2. The national defense industry has the following tasks:

a) Researching, developing, producing, maintaining, overhauling, improving, and modernizing weapons, military technical equipment, technical materials, and other products serving national defense;

b) Participating in economic and social development, contributing to industrialization and modernization of the country.

Article 4. Principles for Building and Developing the National Defense Industry

1. Under the leadership of the Communist Party of Vietnam and unified management by the Government.

2. Adhering to the objectives, tasks, and strategies for building and defending the country, meeting the strategic requirements for equipping the people's armed forces.

3. Consistent with the country's economic development capabilities, having advanced scientific and technological levels, gradually becoming modern, ensuring confidentiality, safety, effectiveness, and environmental protection.

4. Self-reliance, closely combining economic and social development with enhanced national defense, based on leveraging internal strengths combined with expanding international cooperation.

Article 5. International Cooperation in the National Defense Industry

1. Principles of international cooperation in the national defense industry include:

a) The State creates conditions for foreign organizations and individuals to participate in national defense industry activities according to the principle of respecting independence and sovereignty, not interfering in each other's internal affairs, equality, mutual benefit, and compliance with Vietnamese laws and international treaties to which the Socialist Republic of Vietnam is a party;

b) Ensuring state secrets about national defense and security;

c) Prioritizing high-tech and dual-use technology fields;

d) Complying with legal provisions on organizing and managing military external activities; export-import regulations, procurement of defense goods, and other relevant regulations concerning the national defense industry.

2. Contents of international cooperation in the national defense industry include:

a) Establishing, consolidating, and developing cooperative relations with other countries;

b) Exchanging technical information and transferring technology to serve the construction and development of the national defense industry;

c) Joint venture and production linkage activities, major overhaul cooperation; research and application collaboration, production deployment serving the national defense industry;

d) Training human resources for the national defense industry.

Article 6. Prohibited Acts

1. Disclosing state secrets about planning and development plans for the national defense industry, scientific and technological results related to the national defense industry, production tasks serving national defense and security.

2. Sabotaging, buying, selling, giving, renting, mortgaging, exploiting, and using illegally equipment and assets assigned by the State to national defense industry facilities.

3. Buying, selling, storing, and using illegally weapons, military technical equipment, and specialized products produced by the national defense industry.

4. Illegally appropriating, using, and transferring information, documents, inventions, processes, and technological secrets belonging to state secrets about the national defense industry.

5. Obstructing or evading responsibility in carrying out tasks related to the construction and development of the national defense industry.

6. Misusing positions and powers to commit illegal acts in national defense industry activities.

Chapter II

ORGANIZATION OF ACTIVITIES IN THE NATIONAL DEFENSE INDUSTRY

Article 7. National Defense Industrial Bases

1. National defense industrial bases include:

a) Research, production, major repair, improvement, and modernization facilities for weapons, military technical equipment, and technical materials invested by the State to serve national defense and security, serving as the core for building and developing the national defense industry under the direct management of the Ministry of National Defense (hereinafter referred to collectively as key national defense industrial facilities);

b) Production facilities invested by the State to build production capacity to serve national defense according to the provisions of the Law on Mobilization of Industry (hereinafter referred to collectively as mobilization industrial facilities).

2. The Ministry of National Defense shall take the lead and coordinate with the Ministry of Industry and Trade and relevant ministries and sectors to compile a list of national defense industrial bases to be submitted to the Prime Minister for approval.

Article 8. Activities of Key National Defense Industrial Facilities

1. Conduct research, development, production, maintenance, major repair, improvement, and modernization of weapons, military technical equipment, technical materials, and other products serving national defense according to orders or plans assigned.

2. Guide technology transfer, training, and preparation for industrial mobilization.

3. Prepare conditions to ensure production and repair of weapons and equipment when the country transitions to wartime.

4. Joint venture and cooperation with economic organizations to produce products serving national defense and security and participate in socio-economic development according to the law.

5. The Government shall stipulate the roadmap for organizational and managerial reform of key national defense industrial facilities according to the National Defense Industry Development Strategy.

Article 9. Activities of Mobilization Industrial Facilities

1. In peacetime, perform tasks of managing and preserving, trial production to maintain equipment capacity; participate in researching, producing, and supplying products and services serving national defense and security according to orders from the Ministry of National Defense.

2. Perform industrial mobilization tasks according to the provisions of the Law on Mobilization of Industry.

Article 10. Organizations and Individuals Participating in National Defense Industry Activities

1. Organizations and individuals participating in national defense industry activities are those not specified in Clause 1, Article 7 of this Decree and individuals participating in national defense industry activities.

2. Organizations and individuals participating in national defense industry activities may conduct research, production, and supply of products and services serving national defense and security through bidding or orders. The product and service catalog serving national defense and security shall be prescribed by the Government.

3. Conditions and procedures for organizations and individuals to participate in national defense industry activities as stipulated in this Article shall be prescribed by the Prime Minister.

Article 11. National Defense Orders

1. The Prime Minister decides on the plan for national defense orders, ordering conditions, product catalog, prices, and payment procedures.

2. The Ministry of National Defense shall place national defense orders with organizations and individuals to produce and supply products and services serving national defense and security according to the Prime Minister's decision.

Chapter III

NATIONAL DEFENSE INDUSTRY DEVELOPMENT PLANNING AND PLANS

Article 12. Planning and Plans for Building and Developing the National Defense Industry

1. Planning and plans for building and developing the national defense industry must comply with the principles set forth in Article 4 of this Decree and meet the following requirements:

a) Exploiting and utilizing all potential and resources of the country effectively to build and develop the defense industry; ensuring that weapons and military technical equipment become increasingly modern and advanced;

b) Ensuring balance, synchronization, and reasonable scale, being appropriately arranged in strategic areas;

c) Consistent with the planning and plans for socio-economic development of the country.

2. The basis for developing planning and plans for building and developing the national defense industry includes:

a) National defense and security tasks and socio-economic development tasks of the country;

b) Strategy for ensuring weapons and military technical equipment for the people's armed forces;

c) National industrial development planning and plans, and the ability to balance state investment resources for building and developing the national defense industry.

3. The content of planning and plans for building and developing the national defense industry includes:

a) Determining objectives, tasks, key programs, and projects;

b) Organizing the system of defense industry facilities;

c) Balancing resources, conditions for assurance, and implementation solutions.

Article 13. Competence to Approve Planning and Development Plans for National Defense Industry

1. The Government shall approve planning and development plans for the national defense industry.

2. The Ministry of National Defense shall take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Industry and Trade, the Ministry of Finance, and relevant state agencies in drafting planning and development plans for the national defense industry to be submitted to the Government for approval.

Article 14. Building, approving, and implementing investment programs and projects on the defense industry

Based on the approved planning and development plans for the national defense industry, the Ministry of National Defense shall take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Industry and Trade, the Ministry of Finance, and relevant state agencies in formulating investment programs and projects for the national defense industry to be submitted to the Prime Minister for decision-making and implementation.

Article 15. Inspection and Supervision of Implementation of Planning, Programs, and Investment Projects for the National Defense Industry

The Ministry of Planning and Investment, the Ministry of National Defense, the Ministry of Industry and Trade, the Ministry of Finance, and other relevant ministries and sectors within their respective duties and authorities shall organize inspections and supervision of the implementation of planning, programs, and investment projects for the national defense industry.

Chapter IV

RESOURCES FOR DEVELOPMENT

NATIONAL DEFENSE INDUSTRY

Article 16. Capital for Developing the National Defense Industry

1. Capital for developing the national defense industry includes:

a) State budget;

b) Development funds of key national defense industrial establishments;

c) Investments from organizations and individuals, both domestic and foreign, participating in the construction and development of the national defense industry.

2. The State shall ensure budgetary funding for research, production, major repairs, improvements, modernization of weapons, military technical equipment, technical materials, and other products serving national defense and security.

3. Management and utilization of capital for developing the national defense industry must be carried out according to plans and legal regulations.

Article 17. Human Resources for the National Defense Industry

1. Human resources serving at key national defense industrial establishments include:

a) Individuals with professions and specialized qualifications that meet usage requirements, meeting standards for moral character, ethics, health, having a willingness to serve, and being recruited by authorized agencies or organizations;

b) Cadres, civil servants, and workers, both within and outside the military, who are mobilized by authorized bodies to serve during wartime and urgent situations related to national defense.

c) Contract laborers.

2. Human resources serving at mobilization industrial establishments and organizations participating in national defense industry activities shall be implemented in accordance with industrial mobilization laws and labor laws.

Article 18. Importation and Reserve of Technical Materials for the National Defense Industry

1. The State shall have preferential policies for importing types of technical materials for the national defense industry that cannot yet be produced domestically, implementing reserves of technical materials to meet national defense and security requirements as stipulated by law.

2. The Prime Minister shall decide the List of technical materials for importation to serve the national defense industry.

3. The Ministry of National Defense shall take the lead and coordinate with relevant ministries and sectors in compiling the List of technical materials for importation to be submitted to the Prime Minister for approval.

Article 19. Land for national defense industry

1. The Government shall approve planning and land use plans for the national defense industry.

2. The Ministry of National Defense shall take the lead and coordinate with competent state agencies in drafting planning and land use plans for constructing and developing key national defense industrial establishments to be submitted to the Government for approval and implementation.

Article 20. Scientific research, development, and technology transfer to serve national defense industry

1. The State encourages and provides preferential policies for organizations and individuals, both domestic and foreign, participating in scientific research, advanced technology development, and technology transfer to serve the construction and development of the national defense industry.

2. The Ministry of National Defense shall take the lead and coordinate with the Ministry of Science and Technology, relevant ministries, and sectors to determine and implement tasks related to scientific research, technology development, and technology transfer to serve the national defense industry.

Chapter V

POLICIES FOR THE NATIONAL DEFENSE INDUSTRY

Article 21. Policies of the State towards core national defense industrial facilities

1. The policies of the State towards core national defense industrial facilities include:

a) Prioritizing investment in the construction and development of infrastructure, resources, key industries, and special characteristics of the national defense industry, dual-use technologies serving both national defense and economic purposes;

b) Preferential and support policies for the production of new materials, high-tech products; construction and development of infrastructure for important projects in areas with difficult socio-economic conditions.

2. The policies of the State towards workers in core national defense industrial facilities include:

a) Wage systems, social insurance, health insurance, labor protection, and other preferential benefits as prescribed by law;

b) Training, upgrading, enhancing professional knowledge, skills at schools within and outside the military and abroad;

c) Benefits and policies as prescribed by law in cases of injury or death while performing duties.

Article 22. Policies of the State towards mobilization industrial facilities

1. The policies of the State towards mobilization industrial facilities include:

a) Policies as prescribed by law when preparing and implementing industrial mobilization;

b) Tax preferences and support systems as prescribed by law when participating in the production of national defense goods;

c) Budget support for completing dual-use technologies.

2. Workers participating in national defense industry activities shall enjoy benefits and policies as prescribed by law on industrial mobilization and as stipulated in Clause 2, Article 23 of this Ordinance.

Article 23. Policies for organizations and individuals participating in national defense industry activities

1. Organizations and individuals participating in national defense industry activities shall enjoy the policies prescribed in point b and point c, Clause 1, Article 22 of this Ordinance.

2. Workers in organizations participating in national defense industry activities who directly perform the task of producing national defense goods, in addition to their wages, shall also enjoy other preferential allowances as prescribed by law. Enterprises have the responsibility to pay these preferential allowances. The preferential allowances paid to workers shall be included in the production and business costs.

3. Foreign individuals participating in national defense industry activities shall enjoy benefits according to the provisions of Vietnamese law or relevant agreements, except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise.

Chapter VI

STATE MANAGEMENT OF THE NATIONAL DEFENSE INDUSTRY

Article 24. Contents of State Management on National Defense Industry

1. Issuing and implementing regulatory legal documents on national defense industry.

2. Developing and implementing policies, planning, plans, and tasks on national defense industry.

3. Organizing and guiding registration for organizations and individuals participating in national defense industry activities.

4. Organizing and enhancing professional training and vocational skills in national defense industry.

5. Organizing and managing international cooperation in national defense industry.

6. Inspecting, auditing, resolving complaints and accusations, and handling violations of laws on national defense industry.

Article 25. Responsibilities for State Management on National Defense Industry

1. The Government shall uniformly manage state administration over national defense industry.

2. The Ministry of National Defense shall lead and coordinate with the Ministry of Industry and Trade and relevant ministries and sectors to implement state management over national defense industry; guiding, urging, and inspecting the implementation of national defense industry laws.

3. The Ministry of Public Security shall lead and coordinate with the Ministry of National Defense to ensure security, order, and fire safety at national defense industrial facilities.

4. Provincial People's Committees and municipal people's committees under the central government shall implement state management over national defense industry within their respective duties and authorities.

Chapter VII

IMPLEMENTING PROVISIONS

Article 26. Effective date

This Ordinance takes effect from July 1, 2008.

Article 27. Detailed Provisions and Guidance for Implementation

The Government shall provide detailed provisions and guidance for the implementation of this Ordinance./.