Decision No. 10/2021/QD-TTg on criteria for determining high-tech enterprises

Pursuant to …;

Regulations on criteria for determining high-tech enterprises

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Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

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

Pursuant to the Investment Law dated November 26, 2014; the Investment Law dated June 17, 2020;

Pursuant to the proposal of the Minister of Science and Technology;

The Prime Minister issues this Decision to regulate the criteria for determining high-tech enterprises.

Article 1. Scope of Regulation

This Decision stipulates the criteria for determining high-tech enterprises as provided for in the High-Tech Industry Law.

Article 2. Applicability

This Decision applies to high-tech product manufacturing enterprises, high-tech service supplying enterprises in Vietnam, and relevant agencies and organizations.

Article 3. Criteria for determining high-tech enterprises

A high-tech enterprise must meet the criteria specified in point a and b, Clause 1, Article 18 of the High-Tech Industry Law No. 21/2008/QH12 amended and supplemented by Article 75 of the Investment Law No. 67/2014/QH13 and Clause 3, Article 76 of the Investment Law No. 61/2020/QH14, and at the same time must meet the following criteria:

1. Revenue from high-tech products must account for at least 70% of the enterprise's annual gross revenue.

2. The ratio of total expenditure for research and development activities of the enterprise (including depreciation of infrastructure investment, fixed assets, annual regular expenses for research and development activities; expenses for training and supporting training for research and development laborers of the enterprise, scientific and technological organizations, training institutions in Vietnam; fees for copyright, transfer of ownership, and rights to use industrial property objects serving research and development activities; registration fees for recognition or protection of patents and utility models in Vietnam) over the value of annual gross revenue minus the value of inputs (including the value of raw materials, components for production imported and purchased domestically):

a) For enterprises with total capital of VND 60,000 billion and a total workforce of 3,000 people or more, it must be at least 0.5%;

b) For enterprises not falling under the provisions of point a, Clause 2 of this Article, with total capital of VND 1,000 billion and a total workforce of 200 people or more, it must be at least 1%;

c) For enterprises not falling under the provisions of points a and b, Clause 2 of this Article, it must be at least 2%.

3. The ratio of direct labor force engaged in research and development activities with a college degree or higher of the enterprise (the number of workers who have signed labor contracts with a term of one year or longer or indefinite-term contracts, among which workers with a college degree do not exceed 30%) over the total workforce:

a) For enterprises with total capital of VND 60,000 billion and a total workforce of 3,000 people or more, it must be at least 1%;

b) For enterprises not falling under the provisions of point a, Clause 3 of this Article, with total capital of VND 1,000 billion and a total workforce of 200 people or more, it must be at least 2.5%;

c) For enterprises not falling under the provisions of points a and b, Clause 3 of this Article, it must be at least 5%.

Article 4. Transitional Provisions

Enterprises that have submitted applications for High-Tech Enterprise Certificates before the effective date of this Decision but have not yet been issued such certificates shall comply with the criteria stipulated in this Decision.

Article 5. Implementation Provisions

1. This Decision takes effect from April 30, 2021 and replaces Decision No. 19/2015/QD-TTg dated June 15, 2015 of

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-run city People's Committees are responsible for implementing this Decision.