Circular No. 04/2020/TT-BKHCN amending and supplementing certain articles of Circular No. 32/2011/TT-BKHCN dated November 15, 2011, issued by the Minister of Science and Technology, regarding the determination of criteria for high-tech application projects, high-tech production investment projects, and the examination of applications for certificates of high-tech application activities, newly established enterprises from high-tech production investment projects, and high-tech enterprises.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 32/2011/TT-BKHCN dated November 15, 2011, issued by the Minister of Science and Technology on determining criteria for high-tech application projects, high-tech production investment projects, and reviewing applications for certificates of high-tech application activities, newly established enterprises from high-tech production investment projects, and high-tech enterprises.

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Pursuant to the High Technology Law dated November 13, 2008;

Pursuant to Decree No. 95/2017/NĐ-CP dated August 16, 2017, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

Pursuant to Decision No. 55/2010/QĐ-TTg dated September 10, 2010, issued by the Prime Minister, guiding the authority, procedures, and formalities for certifying organizations and individuals engaged in high-tech application activities, certifying organizations and individuals conducting research and development of high-tech, and recognizing high-tech enterprises;

At the proposal of the Director of the Department of Legal Affairs, the Director of the Department of High Technology, and the Director of the Department of Evaluation, Review, and Technical Appraisal;

The Minister of Science and Technology issues this Circular amending and supplementing certain provisions of Circular No. 32/2011/TT-BKHCN dated November 15, 2011, issued by the Minister of Science and Technology on determining criteria for high-tech application projects, high-tech production investment projects, and reviewing applications for certificates of high-tech application activities, newly established enterprises from high-tech production investment projects, and high-tech enterprises (hereinafter referred to as Circular No. 32/2011/TT-BKHCN).

Article 1. Amending and supplementing certain provisions of Circular No. 32/2011/TT-BKHCN

1. Amending and supplementing Points a, c, d, đ, e Clause 1 Article 2 as follows:

"a) Technology applied in the project is included in the list of priority high-tech investment and development projects as decided by the Prime Minister;"

“c) Human resources participating in the research, development, and application of technology in the project must meet one of the following conditions:

- Condition 1: For projects with an investment capital of VND 60,000 billion or more and a total workforce of 3,000 people or more, the number of workers with a college degree or higher directly involved in research, development, experimental implementation, and trial production must account for at least 1% of the total workforce.

- Condition 2: For projects not meeting Condition 1 but with an investment capital of VND 1,000 billion or more and a total workforce of 200 people or more, the number of workers with a college degree or higher directly involved in research, development, experimental implementation, and trial production must account for at least 2.5% of the total workforce.

- Condition 3: For projects not meeting Conditions 1 and 2, the number of workers with a college degree or higher directly involved in research, development, experimental implementation, and trial production must account for at least 5% of the total workforce.

The number of workers with a college degree as stipulated herein shall not exceed 30% of the total workforce directly involved in research, development, experimental implementation, and trial production;"

“d) Costs for research, development, and application of technology in the project must meet one of the following conditions:

- Condition 1: For projects with an investment capital of VND 60,000 billion or more and a total workforce of 3,000 people or more, annual costs for research, development, experimental implementation, and trial production must reach at least 0.5% of the added value created by the project in Vietnam.

- Condition 2: For projects not meeting Condition 1 but with an investment capital of VND 1,000 billion or more and a total workforce of 200 people or more, annual costs for research, development, experimental implementation, and trial production must reach at least 1% of the added value created by the project in Vietnam.

- Condition 3: For projects not meeting Conditions 1 and 2, annual costs for research, development, experimental implementation, and trial production must reach at least 2% of the added value created by the project in Vietnam.

The added value created by the project in Vietnam as stipulated herein is calculated as the total net revenue minus the cost of imported raw materials and domestically purchased raw materials.

The contents of annual costs for research, development, and application of technology in the project as stipulated herein include:

- Investment costs for technical infrastructure construction for research (annual depreciation) including: construction and installation costs for research facilities, testing, and trial facilities; equipment procurement costs for research, testing, and trial facilities; prototype product purchase costs, software, data, information procurement costs for research purposes.

- Costs for regular annual research, development, and application of technology activities including: salaries and allowances similar to salaries (bonuses, subsidies, travel expenses, conference fees) for personnel specified in Point c Clause 1 and research support personnel; honoraria for experts reviewing, critiquing, and evaluating research results; costs for scientific conferences and meetings related to research content; rental costs for facilities serving research, testing, and trial activities; maintenance and repair costs for technical infrastructure serving research and development activities; other regular costs (purchase of tools, materials, raw materials, chemicals, energy, communication, office supplies, labor protection equipment, inexpensive consumables for research).

The following items shall not be counted towards regular annual costs for research, development, and application of technology in the project: quality control product inspection costs or periodic raw material, material, fuel, energy inspection costs; periodic data collection costs unrelated to research; costs for effectiveness surveys or management research; marketing and sales promotion research costs.

- Training costs include: long-term or short-term training expenses within the country or abroad for human resources specified in point c of this Clause; support training expenses (or scholarships, equipment, machinery) for scientific and technological organizations in Vietnam; other training expenses serving the research and development activities of the project.

- Copyright fees and license fees under high-tech technology transfer contracts applied in the project and recognized by competent state authorities with a Technology Transfer Registration Certificate (except where laws on technology transfer stipulate that registration is not mandatory).

d) The project's quality management system meets one of the national standards TCVN ISO 9001, HACCP, CMM, GMP, or equivalent certificates/certifications (depending on the specific characteristics of the high-tech application project applying national or international standards).

e) Implementing environmentally friendly measures and energy-saving practices in production and product quality management to meet Vietnamese technical standards and regulations; in cases where there are no Vietnamese technical standards and regulations, applying international organization sector-specific standards.

Encouraging projects to apply international environmental and energy-saving standards such as ISO 14000 or equivalent standards; ISO 50001 or equivalent standards.

2. Amend and supplement points a, d, and đ of Clause 1, Article 3 as follows:

"a) Producing high-tech products and providing high-tech services listed in the Catalogue of High-Tech Products Encouraged for Development issued together with the Prime Minister's Decision;"

"d) The project's quality management system meets one of the national standards TCVN ISO 9001, HACCP, CMM, GMP, or equivalent certificates/certifications (depending on the specific characteristics of the high-tech production investment project applying national or international standards);"

"đ) Implementing environmentally friendly measures and energy-saving practices in production and product quality management to meet Vietnamese technical standards and regulations; in cases where there are no Vietnamese technical standards and regulations, applying international organization sector-specific standards."

Encouraging projects to apply international environmental and energy-saving standards such as ISO 14000 or equivalent standards; ISO 50001 or equivalent standards.

3. Amend and supplement Clause 1 and Clause 2 of Article 7 as follows:

"1. The source of funds for reviewing applications and inspections shall be taken from the annual science and technology public service budget allocated by the Ministry of Science and Technology to the Office of Registration of Scientific and Technological Activities.

2. The content and level of expenditure shall be implemented according to the provisions set out in Circular Joint No. 55/2015/TTLT-BTC-BKHCN dated April 22, 2015, of the Minister of Finance and the Minister of Science and Technology guiding the establishment, allocation, and settlement of budgets for scientific and technological tasks using state funds."

4. Supplement Clause 3 of Article 9 as follows:

"3. Annually, the Office of Registration of Scientific and Technological Activities will review reports from organizations and individuals, and periodically inspect enterprises regarding their compliance with the criteria stipulated after obtaining the Certificate."

5. Replace the forms issued together with Circular No. 32/2011/TT-BKHCN with the forms issued together with this Circular.

6. Amend the phrase "(office) Office of High-Tech Activity Certification and Science and Technology Enterprises" in the contents of Articles 4, 5, 6, 7, and 9 to the phrase "Office of Registration of Scientific and Technological Activities".

Article 2. Effective Date

1. This Circular takes effect from November 15, 2020.

2. During implementation, if difficulties arise, organizations, institutions, and individuals are advised to promptly report in writing to the Ministry of Science and Technology for consideration and resolution.

Article 3. Transitional Provisions

1. From the date this Circular takes effect, organizations and individuals who have been granted Certificates according to Circular No. 32/2011/TT-BKHCN shall apply the criteria stipulated in Article 1 of this Circular in their annual periodic activity results reports.

2. Organizations and individuals who have submitted applications for Certificates before the date this Circular takes effect but have not yet been processed shall apply the criteria stipulated in Article 1 of this Circular to complete their applications./.