Decree No. 133/2008/ND-CP detailing and guiding the implementation of certain provisions of the Law on Technology Transfer

DECREE

Regulations on detailing and guiding the implementation of certain articles of the Law on Technology Transfer

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Technology Transfer dated November 29, 2006;

Upon the proposal of the Minister of Science and Technology,

DECREE:

Article 1. Scope of application

This Decree stipulates detailed regulations and guidance for implementing certain provisions of the Law on Technology Transfer regarding technology transfer contracts, technology appraisal services, and measures to encourage and promote technology transfer.  Article 2. Establishment of Technology Transfer Contracts

1. The transfer of technology and the conclusion of technology transfer contracts shall be carried out in accordance with the provisions of Article 12 and Clause 1 of Article 14 of the Law on Technology Transfer and other relevant laws.

2. In cases where the transferring party transfers multiple objects of technology to the receiving party, a single contract may be established or several separate contracts may be created, but the contents of these contracts must not overlap in terms of the transferred technology objects.

Where the transferring party transfers technology accompanied by machinery, equipment, and technical means, the list and agreements concerning such machinery, equipment, and technical means must be reflected in the contract or its annexes.

3. In technology transfer contracts where the transferred object includes documentation containing technical solutions, technical secrets, design drawings, formulas, and technological processes, the contract must specify the names and contents of the technology-related documents to be transferred.

4. In technology transfer contracts that include training activities, the number of workers and technical staff, trades, training content, training costs, duration, and location must be agreed upon in the contract or its annexes, ensuring that the recipient can master the transferred technology after training.

5. In technology transfer contracts that involve the dispatch of technical consultants by the transferring party to assist and provide technical advice to the recipient in applying the transferred technology to production, the number of consultants, content, duration, and costs of assistance and technical advice must be agreed upon in the contract or its annexes to ensure that the recipient produces products meeting quality standards and resolves difficulties during the application of the transferred technology in production.

Article 3. Payment Methods in Technology Transfer Contracts

The parties to the contract may agree on payment according to one or more of the following methods:

1. Payment in one or several installments in cash or goods;

2. Conversion of the value of the technology into capital contribution to an investment project or business equity;

In cases where the parties agree to contribute capital through technology, after completing the technology transfer and obtaining confirmation from all parties, the value of the technology will be included in the capital contribution of the transferring party in the investment project or business equity;

3. Payment in installments based on a percentage (%) of net selling price.

The net selling price is determined by subtracting from the selling price of the product or service produced using the transferred technology (as shown on the sales invoice) the following items: value-added tax, special consumption tax, export tax (if applicable); costs of purchasing semi-finished products, parts, components, and imported or domestically purchased spare parts; packaging costs, product transportation costs to the point of sale, advertising costs;

4. Payment based on a percentage (%) of gross revenue.

Gross revenue is determined by subtracting trade discounts, price reductions, and returned goods from the total sales revenue and service income generated by the transferred technology;

5. Payment based on a percentage (%) of pre-tax profit of the recipient.

Pre-tax profit is determined by subtracting reasonable production costs for marketed products utilizing the transferred technology from the gross revenue;

6. Combination of payment methods specified in Clauses 1, 2, 3, 4, and 5 of this Article.

6. Combine the payment methods provided for in Clauses 1, 2, 3, 4, and 5 of this Article.

Article 4. Technology transfer using state capital

1. In cases where state capital is used to receive technology transfer in investment projects, the recipient of the technology must prepare a plan for receiving technology transfer, specifying the content of the technology transfer and the estimated price of the technology to be submitted to the competent authority for investment decision-making. The recipient of the technology shall be responsible for the content of the technology transfer and the payment price for the transferred technology according to the decision of the competent authority for investment decision-making.

2. In cases where multiple sources of capital are used to receive technology transfer, with state capital accounting for 51% or more, the provisions of Clause 1 of this Article shall apply.

Article 5. List of encouraged technology transfers, list of restricted technology transfers, and list of prohibited technology transfers.

1. The following lists of technologies are promulgated together with this Decree:

a) List of encouraged technology transfers (Annex I);

b) List of restricted technology transfers (Annex II);

c) List of prohibited technology transfers (Annex III).

2. Ministries, ministerial-level agencies, and government agencies shall be responsible for:

a) Organizing the identification of specific technologies within the lists prescribed in Clause 1 of this Article;

b) Annually, based on economic and social development conditions and management requirements, proposing amendments and supplements to the lists of technologies prescribed in Clause 1 of this Article.

3. The Ministry of Science and Technology shall be responsible for:

a) Guiding ministries, ministerial-level agencies, and government agencies on the procedures and criteria for identifying specific technologies within the lists of technologies prescribed in Clause 1 of this Article.

b) Reviewing proposals from ministries, ministerial-level agencies, and government agencies regarding amendments and supplements to the lists of technologies prescribed in Clause 1 of this Article, and compiling them to submit to the Government for decision.

Article 6. Registration of technology transfer contracts

1. Technology transfer contracts are not required to be registered, but the parties involved in the contract have the right to register if they so desire. In cases where there is a need to register a technology transfer contract, within ninety days from the date of signing the technology transfer contract, the recipient of the technology (in cases of transferring technology from abroad into Vietnam) shall represent all parties in submitting the registration dossier to the competent authority for issuance of the Certificate of Contract Registration under Article 9 of this Decree.

2. For technology transfer contracts included in the List of Encouraged Technology Transfers, the Certificate of Contract Registration serves as the basis for enjoying incentives stipulated in this Decree and other relevant laws.

3. The Certificate of Contract Registration for technology transfer contracts is in the form specified in Annex IV of this Decree.

Article 7. Dossier for registering technology transfer contracts

1. The dossier for registering technology transfer contracts includes:

a) Application for registration of technology transfer contract;

The application for registration of technology transfer contract is in the form prescribed in Annex V of this Decree.

b) Original or certified copy of the technology transfer contract in Vietnamese and foreign languages. The contract must be signed, stamped, and have the initials of the parties on each page of the contract and its annexes if one of the parties to the contract is an organization.

2. The submission of the dossier for registering technology transfer contracts shall be carried out as follows:

a) In cases covered by Clause 1 of Article 9 of this Decree, the recipient of the technology (in cases of transferring technology from abroad into Vietnam and domestic technology transfer) or the provider of the technology (in cases of transferring technology from Vietnam to abroad) shall represent all parties in submitting three (3) sets of dossiers, including at least one (1) original set to the Ministry of Science and Technology;

b) In cases not covered by Clause 1 of Article 9 of this Decree, the recipient of the technology (in cases of transferring technology from abroad into Vietnam and domestic technology transfer) or the provider of the technology (in cases of transferring technology from Vietnam to abroad) shall represent all parties in submitting three (3) sets of dossiers, including at least one (1) original set to the Department of Science and Technology where the recipient (or provider) has its main office.

Article 8. Registration for Supplemental and Amended Technology Transfer Contracts

1\. A technology transfer contract that has been issued with a Certificate of Registration, if the parties agree to supplement or amend the contents of the contract, must submit the supplemental or amended contract to the authority that issued the Certificate of Registration for the technology transfer contract to obtain a Certificate of Registration for the supplemental or amended contract.

2\. The registration dossier for amending and supplementing a technology transfer contract includes:

a\. An application for amending and supplementing a technology transfer contract;

The application for registering to amend and supplement a technology transfer contract shall be in accordance with the model attached at Appendix V of this Decree.

b\. The original or notarized copy of the amended and supplemented contract in Vietnamese and foreign languages. The contract must be signed, stamped, and have the initials of the parties on each page of the contract and its annexes if one of the parties involved in the contract is an organization.

3\. The competent authority responsible for registering technology transfer contracts for technologies listed in the Encouraged Technology Transfer Catalogue shall accept the registration dossier for amending and supplementing technology transfer contracts as stipulated in Clause 2 of Article 7 of this Decree.

Article 9. Authority to Issue Certificates of Registration for Technology Transfer Contracts

1\. The Ministry of Science and Technology shall issue Certificates of Registration for technology transfer contracts for technologies within investment projects approved by the Prime Minister.

The Certificate of Registration for a technology transfer contract shall be sent one copy to the Department of Science and Technology where the receiving party's main office is located for coordination in monitoring and inspecting the implementation of the contract.

2\. The Department of Science and Technology shall issue Certificates of Registration for technology transfer contracts for technologies not covered by the provisions of Clause 1 of this Article.

The Certificate of Registration for a technology transfer contract shall be sent one copy to the Ministry of Science and Technology for comprehensive management.

3\. Within fifteen days from the date of receipt of a valid dossier, the competent authority specified in Clauses 1 and 2 of this Article shall be responsible for reviewing and issuing the Certificate of Registration for the technology transfer contract. In case of refusal to issue the Certificate of Registration for the technology transfer contract, a written response must be provided with clear reasons stated.

Article 10. Approval for Transferring Technologies Listed in the Restricted Technology Transfer Catalogue

1\. Organizations and individuals wishing to receive or transfer technologies listed in the Restricted Technology Transfer Catalogue must meet the following conditions:

a\. For transferring technologies from abroad to Vietnam: Organizations and individuals wishing to receive technologies must have functions and tasks directly related to the use of received technologies; they must have sufficient material and human resources with appropriate qualifications to safely receive and operate the technologies and strictly comply with national technical standards and regulations;

b\. For transferring technologies from Vietnam to abroad: Organizations and individuals wishing to transfer technologies must ensure that such transfers do not harm national interests.

2\. Organizations and individuals wishing to receive or transfer technologies listed in the Restricted Technology Transfer Catalogue shall submit dossiers to the Ministry of Science and Technology to request approval for technology transfer.

3\. The Ministry of Science and Technology shall be responsible for coordinating with ministries and ministerial-level agencies in approving technology transfers involving industries and sectors managed by these ministries and agencies.

4\. Within thirty days from the date of receipt of a valid dossier, the Ministry of Science and Technology shall review and issue a written approval for technology transfer. In case of refusal, a written response must be provided with clear reasons stated.

5\. The application dossier for approval to transfer technologies listed in the Restricted Technology Transfer Catalogue shall be implemented in accordance with the provisions of Clause 1 of Article 12 of this Decree.

Article 11. Granting permission for technology transfer concerning technologies listed in the Restricted Technology Transfer Catalogue

1. The Ministry of Science and Technology shall be responsible for reviewing and issuing the Technology Transfer Permit for technologies listed in the Restricted Technology Transfer Catalogue as stipulated in Article 52 of the Law on Technology Transfer.

2. Within sixty days from the date of signing the technology transfer contract, the recipient of the technology (in cases where technology is transferred from abroad to Vietnam and within the country) or the provider of the technology (in cases where technology is transferred from Vietnam to abroad) shall submit three (3) sets of application files, including at least one (1) original set to the Ministry of Science and Technology requesting issuance of the Technology Transfer Permit.

Within ten days from the date of receiving complete and valid application files, the Ministry of Science and Technology shall be responsible for reviewing and issuing the Technology Transfer Permit.

3. In cases where the application files are incomplete or do not comply with legal regulations, the Ministry of Science and Technology shall issue a written request for the party that submitted the files to amend and supplement the application files. Within ten days from the date of receiving the amended and supplemented application files, the Ministry of Science and Technology shall be responsible for reviewing and issuing the Technology Transfer Permit. If the permit is not issued, a written response must be provided with clear reasons stated.

Within sixty days from the date of the written request for amendment and supplementation issued by the Ministry of Science and Technology, if the parties involved in the contract fail to meet the requirements for amendment and supplementation, the application for the Technology Transfer Permit will lose its validity.

4. During the implementation of the technology transfer contract that has been granted a Technology Transfer Permit, if the parties wish to change the contents recorded in the Technology Transfer Permit, one of the parties involved in the technology transfer contract must submit an application file on behalf of all parties requesting issuance of a new permit.

5. The Technology Transfer Permit shall follow the model attached in Appendix VI of this Decree.

Article 12. Application Files for Approval of Technology Transfer and Application Files for Issuance of Technology Transfer Permit for Technologies Listed in the Restricted Technology Transfer Catalogue

1. Application files for approval of technology transfer for technologies listed in the Restricted Technology Transfer Catalogue include:

a) Application form for approval of technology transfer;

b) Legal status documentation of the applicant: certified copy of Investment Certificate or Business Registration or Industry Operation License;

c) Documentation explaining the technology;

d) Documentation explaining compliance with conditions specified in Clause 1 of Article 10 of this Decree.

The application form for approval of technology transfer and the basic content of the documentation explaining the technology shall follow the models attached in Appendices VII and VIII of this Decree.

2. Application files for issuance of Technology Transfer Permit for technologies listed in the Restricted Technology Transfer Catalogue:

a) Application form for issuance of Technology Transfer Permit

The application form for issuance of Technology Transfer Permit shall follow the model attached in Appendix IX of this Decree.

b) Legal status documentation of the parties involved in the contract: certified copy of Investment Certificate or Business Registration or Industry Operation License; confirmation of legal status for representatives signing the contract;

c) Approval document for technology transfer issued by the Ministry of Science and Technology;

d) Original or certified copy of the technology transfer contract in Vietnamese and foreign language. The contract must be signed, stamped, and have abbreviated signatures of the parties, with a cross-stamp on each page of the contract and annexes if one of the parties involved in the contract is an organization;

đ) List of technical documents, machinery, equipment, and technical means accompanying the technology transfer contract (if applicable);

e) In cases where state capital is used, a document from the competent authority deciding on investment must be submitted, agreeing with the content of the technology transfer and the estimated price for the transferred technology.

Article 13. Technology transfer in projects or in trademark licensing contracts, industrial property rights transfer contracts, machine and equipment purchase contracts accompanied by technology transfer

1. In cases where technology transfer content is included in investment projects or trademark licensing contracts, industrial property rights transfer contracts, or machine and equipment purchase contracts, when establishing such projects or contracts, the technology transfer content and costs must be separated into a distinct part within the project or contract.

2. Where the technology falls under the Restricted Technology Transfer List, the establishment of files and issuance of permits for the technology transfer portion in the project or contract shall be carried out in accordance with the provisions of Articles 10, 11, and 12 of this Decree.

3. Where the technology does not fall under the Restricted Technology Transfer List, the establishment of files and registration for the technology transfer portion in the project or contract shall be carried out in accordance with the provisions of Articles 6, 7, 8, and 9 of this Decree.

Article 14. Technology transfer contracts shall not be issued with a Registration Certificate or Technology Transfer Permit

1. Technology transfer contracts whose content does not include the technology objects specified in Article 7 of the Law on Technology Transfer.

2. Technology transfer contracts that violate the provisions of Article 13 of the Law on Technology Transfer.

Article 15. Revocation of Registration Certificate for Technology Transfer Contracts, Technology Transfer Permits

1. The Registration Certificate for Technology Transfer Contracts, Technology Transfer Permits shall be revoked in the following cases:

a) The parties fail to carry out the technology transfer within twelve months from the date of issuance of the Registration Certificate for Technology Transfer Contracts, Technology Transfer Permits;

b) The technology transfer is not conducted in accordance with the technology objects specified in the Registration Certificate for Technology Transfer Contracts, Technology Transfer Permits;

c) False documents are used to register technology transfer contracts or to request technology transfer permits.

2. The authority issuing the Registration Certificate for Technology Transfer Contracts, Technology Transfer Permits has the right to revoke the Registration Certificate for Technology Transfer Contracts, Technology Transfer Permits already issued.

3. In cases where the Registration Certificate for Technology Transfer Contracts, Technology Transfer Permits have been issued and benefits have been received according to the provisions of the Law on Technology Transfer, if the Registration Certificate for Technology Transfer Contracts, Technology Transfer Permits are subsequently revoked, the party receiving the benefits must return to the State all benefits previously received.

Article 16. Reporting on Implementation of Technology Transfer Contracts

1. For technology transfer contracts that have been issued with a Technology Transfer Permit and have been implemented for over one year, annually, the recipient of the technology (in cases of technology transfer from abroad into Vietnam and domestic technology transfer) or the provider of the technology (in cases of technology transfer from Vietnam to abroad) shall be responsible for preparing a report on the implementation of the technology transfer contract of the previous year and submitting it to the Ministry of Science and Technology.

2. For technology transfer contracts that have been issued with a Registration Certificate for Technology Transfer Contracts and have been implemented for over one year, and which utilize state capital accounting for fifty-one percent or more for the implementation of technology transfer, annually, the recipient of the technology (in cases of technology transfer from abroad into Vietnam and domestic technology transfer) or the provider of the technology (in cases of technology transfer from Vietnam to abroad) shall be responsible for preparing a report on the implementation of the technology transfer contract of the previous year and submitting it to the Ministry of Science and Technology or the Department of Science and Technology where the Registration Certificate for Technology Transfer Contracts was issued.

3. The deadline for submitting reports on the implementation of technology transfer is before January 15th of the following year.

4. Annual reports on the implementation of technology transfer contracts shall be prepared according to the model set forth in Appendix X of this Decree.

Article 17. Liquidation of Technology Transfer Contracts for Restricted Technology Categories

1. The liquidation of technology transfer contracts for restricted technology categories must be documented in a liquidation record by the parties involved.

2. In cases where technology is transferred from Vietnam to another country, the recipient of the technology or the provider of the technology shall submit the liquidation record of the technology transfer contract to the Ministry of Science and Technology within the latest period of thirty (30) days from the date of liquidation.

3. The liquidation record of the technology transfer contract follows the model set out in Appendix XI of this Decree.

Article 18. Fees for Contract Review in Technology Transfer

1. When submitting applications for registration certificates of technology transfer contracts, technology transfer permits, the recipient of the technology (in cases of transferring technology from abroad to Vietnam and domestic technology transfer) or the provider of the technology (in cases of transferring technology from Vietnam to another country) must pay the fee for reviewing technology transfer contracts.

2. The Ministry of Finance shall provide guidance on collecting, managing, and using fees for reviewing technology transfer contracts.

Article 19. Content of Technology Appraisal

1. Determining the legal status and rights related to the transferred technology.

2. Comparing the actual performance indicators of the transferred technology with those stipulated in the technology transfer contract.

Article 20. Rights to Request Technology Appraisal

1. Authorities entitled to request technology appraisal include:

a) Authorities responsible for issuing registration certificates for technology transfer contracts, technology transfer permits;

b) Authorities responsible for resolving disputes, handling violations, and addressing complaints and reports regarding technology transfer.

2. Organizations and individuals entitled to request technology appraisal include:

a) Parties involved in concluding technology transfer contracts;

b) Organizations and individuals required to address violations or complaints and reports concerning technology transfer;

c) Other organizations and individuals with rights and interests related to disputes, violations, complaints, and reports concerning technology transfer.

Article 21. Rights and Obligations of the Party Requesting Technology Appraisal

1. The party requesting technology appraisal has the following rights:

a) To select an appraisal organization that has been recognized as meeting the conditions for technology appraisal;

b) To require the appraisal organization to respond to the appraisal conclusion accurately and within the agreed timeframe;

c) To request the appraisal organization to explain the appraisal conclusion;

d) To request supplementary or repeated appraisals according to Article 26 of this Decree;

e) To agree on the costs of technology appraisal.

2. The party requesting technology appraisal has the following obligations:

a) To provide complete and be responsible for the accuracy of all relevant documents, evidence, and information related to the subject of appraisal as requested by the appraisal organization and appraiser;

b) To clearly and specifically present issues within the scope of the requested appraisal;

c) To pay the costs of technology appraisal according to the agreement.

3. The costs of technology appraisal under a requested appraisal are agreed upon by the parties.

Article 22. Technology Appraisal Organizations and Technology Appraisers

1. A technology appraisal organization may be a scientific and technological organization or a business.

2. A technology appraisal organization must have at least two technology appraisers.

3. Persons meeting the following conditions shall be recognized as technology appraisers:

a) Having a university or college degree and possessing professional competence suitable for the requirements and field of technology to be appraised;

b) Having at least three years of work experience in the field of technology to be appraised;

c) Holding a certification in the field of technology to be appraised when required by law.

4. Ministries, ministerial-level agencies, and government-affiliated agencies shall coordinate with the Ministry of Science and Technology to specify the content of professional examination for technology appraisal.

5. Ministries, ministerial-level agencies, and government-affiliated agencies shall guide the issuance of technology appraisal certifications within their respective sectors and fields based on their functions, tasks, and authorities.

Article 23. Rights and Obligations of Technology Appraisal Organizations

1. Rights of technology appraisal organizations:

a) Conducting appraisals upon request or demand; performing appraisals according to the content and deadlines specified in the request or demand; promptly notifying the requesting party if additional time is needed to complete the appraisal;

b) Refusing to conduct an appraisal if the subject matter or related materials are insufficient or lack value for making an appraisal conclusion; if the appraiser has rights or interests related to the subject matter or case requiring an appraisal, or if there are other reasons affecting the objectivity of the appraisal conclusion but the appraiser is also representing the interests of one of the parties involved in the case;

c) Requesting agencies or organizations to provide relevant materials, objects, and information about the subject matter;

d) Selecting necessary and appropriate methods to conduct the appraisal; using testing results or specialized conclusions, expert opinions to serve the appraisal;

đ) Preparing an appraisal file and explaining the appraisal conclusion when requested.

2. Obligations of technology appraisal organizations:

a) Safeguarding relevant objects and materials related to the appraisal case; keeping confidential the results of the appraisal, related information, and materials;

b) Independently issuing an appraisal conclusion and being responsible under the law for the appraisal conclusion;

c) Compensating for damages caused by issuing a false appraisal conclusion that results in harm to individuals or organizations involved, as stipulated by law;

d) Adhering to procedures and formalities for conducting appraisals and fulfilling other rights and obligations as prescribed by law.

Article 24. Request for Technology Appraisal

1. A request for technology appraisal must be documented in writing.

2. The written request for technology appraisal must include the following main contents:

a) Name and address of the agency requesting the technology appraisal; name and position of the authorized person requesting the technology appraisal;

b) Name and address of the appraisal organization or appraiser;

c) Subject matter and content to be appraised;

d) Relevant materials and objects;

đ) Deadline for delivering the appraisal conclusion.

Article 25. Request for Technical Appraisal

1. A request for technical appraisal must be established in a technical appraisal service contract between the party requesting the appraisal and the technical appraisal organization.

2. The technical appraisal service contract shall include the following main contents:

a) Name and address of the individual or organization requesting the appraisal;

b) Name and address of the technical appraisal organization;

c) Content to be appraised;

d) Relevant materials and objects;

d) Deadline for delivering the appraisal conclusion;

e) Rights and obligations of the parties;

g) Liability for breach of contract.

Article 26. Supplementary Appraisal and Re-appraisal

1. Supplementary appraisal shall be conducted when the appraisal conclusion is incomplete or unclear regarding the content to be appraised, or when new circumstances arise that need clarification. Requests for supplementary appraisal and the conduct of such appraisal must comply with the regulations applicable to initial appraisal.

2. Re-appraisal shall be conducted when the party requesting the appraisal does not agree with the results of the appraisal or there is a contradiction among different appraisal conclusions on the same issue to be appraised. Re-appraisal may be carried out by the previous technical appraisal organization or appraiser, or by another technical appraisal organization or appraiser at the request of the party requesting the appraisal.

Article 27. Technical Appraisal Conclusion Document

1. The technical appraisal conclusion document is one of the legal bases for resolving cases.

2. The technical appraisal conclusion document must include the following main contents:

a) Name and address of the technical appraisal organization;

b) Name and address of the agency requesting the appraisal or the organization or individual requesting the appraisal;

c) Object, content, and scope of the appraisal;

d) Method of conducting the appraisal;

đ) Appraisal conclusion;

e) Time and place of conducting and completing the appraisal.

3. The appraisal conclusion document must bear the signature of the technical appraiser, the head of the technical appraisal organization, and the seal of that organization.

Article 28. Technology Transfer Services

1. Technology transfer services involve supporting activities in the process of searching for, concluding, and implementing technology transfer contracts, including evaluating and valuing technology, brokering and consulting on technology transfer, and promoting technology transfer.

2. The Ministry of Science and Technology shall specify and guide the details of technology transfer services as stipulated in Clause 1 of this Article.

Article 29. Services for Evaluating, Valuing Technology, Conducting Technical Appraisals, and Consulting on Technology Transfer

1. Encouragement is given to organizations and individuals to establish technology transfer service organizations to provide services for evaluating, valuing technology, conducting technical appraisals, and consulting on technology transfer;

2. The Ministry of Science and Technology shall guide the content and methods of operation of organizations for evaluating, valuing technology, conducting technical appraisals, and consulting on technology transfer.

Article 30. Results of Evaluating and Valuing Technology

The results of evaluating and valuing technology must be expressed in writing and serve as one of the bases for:

1. Parties to a technology transfer contract to negotiate and agree on the price of transferred technology;

2. Considering and determining the value of transferred technology from research results if state investment has been made; using state funds to transfer technology; contributing capital based on the value of technology when requested by the parties;

3. Competent authorities to consider and handle breaches of technology transfer contracts and resolve disputes during the implementation of technology transfer contracts.

Article 31. Inspection of Technology Transfer Activities

The agency issuing the Registration Contract Certificate for technology transfer contracts, the Technology Transfer Permit as stipulated in Articles 9 and 11 of this Decree shall be responsible for inspecting technology transfer activities in accordance with the law.

Article 32. Tax Policies to Promote Technology Transfer Activities

1. Organizations contributing capital to establish enterprises or implementing joint business contracts using technology shall be exempt from corporate income tax on the income generated from such technology.

2. Imports of goods for direct use in technological research and development, technological innovation, including machinery, equipment, spare parts, materials, domestic transportation means not yet produced domestically, technologies not yet created domestically; scientific literature, books shall be exempt from import duties.

3. Specialized machinery, equipment, transportation means that are not yet produced domestically and must be imported to serve the implementation of technology transfer contracts shall be exempt from value-added tax.

4. Enterprises investing in technological innovation that accept technology listed in the Encouraged Technology Transfer Catalogue shall be exempt from corporate income tax on the income generated from applying such encouraged technologies for four years, provided that the total tax exemption does not exceed 50% of the total investment cost for technological innovation.

5. Enterprises accepting technology to implement investment projects in areas with difficult socio-economic conditions, particularly difficult conditions shall be exempt from import duties on goods serving the replacement and innovation of technology and raw materials, materials, spare parts used for production within five years from the start of production under new technology.

6. Organizations transferring technology in priority fields to rural, mountainous areas, and areas with difficult socio-economic conditions, particularly difficult conditions shall have their income from technology transfer and provision of plant and animal breeding stock taxed at 50% of the corporate income tax rate.

7. Technology incubation centers, enterprise technology incubation centers shall be exempt from corporate income tax for four years, have their corporate income tax reduced by 50% for the next nine years, and be exempt from land use tax.

8. Organizations and individuals accepting technology in areas with difficult socio-economic conditions, particularly difficult conditions shall be exempt from the fee for contract technology transfer assessment.

9. Procedures and formalities for granting tax exemptions and reductions for corporate income tax and personal income tax, and exemption from contract technology transfer assessment fees shall be carried out in accordance with relevant tax and fee laws.

Article 33. National Technological Innovation Program

1. The Ministry of Science and Technology shall take the lead and coordinate with ministries, ministerial-level agencies, and government-affiliated agencies involved to develop and submit the National Technological Innovation Program for approval by the Prime Minister.

2. Ministries, ministerial-level agencies, government-affiliated agencies, and provincial People's Committees within their respective jurisdictions shall be responsible for implementing the National Technological Innovation Program.

Article 34. National Science and Technology Innovation Fund

The Ministry of Science and Technology shall take the lead and coordinate with relevant ministries, ministerial-level agencies, and government agencies to establish, manage, and utilize the National Science and Technology Innovation Fund.

Article 35. Statistics on Technology Transfer Activities

1. Annually in January, enterprises, scientific research and technological development organizations, universities, colleges, and other training institutions shall be responsible for reporting on their previous year's technology innovation and transfer activities to the Department of Science and Technology at the location where the enterprise, scientific research and technological development organization, university, college, and other training institution is headquartered. The Department of Science and Technology shall be responsible for compiling and reporting to the Ministry of Science and Technology.

2. The Ministry of Science and Technology shall compile and report to the Prime Minister on the annual situation of technology innovation and transfer nationwide.

3. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Science and Technology to specify the format of reports, reporting procedures, and guidelines for statistical technology transfer.

Article 36. Transitional Provisions

1. Technology transfer contracts that have been registered or approved by the Ministry of Science and Technology or the Department of Science and Technology before the effective date of the Law on Technology Transfer shall continue to be valid until the end of the contract term.

2. Applications for registration of technology transfer contracts submitted to the Ministry of Science and Technology or the Department of Science and Technology from July 1, 2007, to the effective date of this Decree must be reviewed and issued a Registration Certificate for Technology Transfer Contracts or a Technology Transfer Permit according to the laws in effect at the time of submission.

Article 37. Effective Date

This Decree shall take effect fifteen days after its publication in the Official Gazette and shall replace Government Decree No. 11/2005/NĐ-CP dated February 2, 2005, detailing regulations on technology transfer (amended).

Article 38. Responsibility for Implementation

The Minister of Science and Technology, ministers, heads of ministerial-level agencies, heads of government agencies, and Chairpersons of provincial People's Committees directly under the Central Government are responsible for implementing this Decree./.