Decision No. 214/2005/QD-TTg Approves the Scheme for Developing the Technology Market

 Pursuant to …;

Approving the Scheme for Developing the Technology Market

PRIME MINISTER

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

Pursuant to Decision No. 188/2002/QĐ-TTg dated December 31, 2002 of the Government Chairman regarding the approval of the Program of Action of the Government to implement the Conclusions of the Sixth Plenary Session of the Central Committee of the Communist Party of Vietnam's Ninth Term on science and technology;

At the proposal of the Minister of Science and Technology,

DECISION:

Article 1. Approving the "Scheme for Developing the Technology Market" with the following main contents:

I. OBJECTIVES

1. Building and perfecting the basic institutional framework of the technology market, a healthy competitive environment.

2. Promoting and supporting enterprises to invest in technological innovation, contributing to rapid and sustainable economic development.

3. Increasing the quantity and quality of technology purchase and sale transactions; striving for an average annual growth rate of transaction value of 10% during the period from 2006 to 2010.

II. MAJOR TASKS UNTIL 2010

1. Building and implementing the Intellectual Property Law, the Technology Transfer Law, and the system of guiding regulations for these laws.

2. Completing the transition of public scientific and technological organizations to operate under an autonomous mechanism, bearing their own responsibility, and transferring state research and application organizations with products linked to the market to operate under a corporate mechanism.

3. Issuing regulations on ownership, management, and commercial exploitation of intellectual property assets created from state funding in a manner that strongly encourages material and spiritual benefits for organizations and individuals who create, transfer, and apply technology to serve high-efficiency economic and social development.

4. Perfecting policies to encourage enterprises to invest in scientific research and technological development, application, and technological innovation, especially high technologies; supporting enterprises in building quality management systems and intellectual property management systems.

5. Establishing and putting into operation several centers for promoting and supporting technology purchase and transfer activities at central and local levels, including: two regular technology trading centers in Hanoi and Ho Chi Minh City; some independent evaluation, appraisal, inspection, and valuation centers for technology; some technology incubation centers and science and technology business incubators in areas concentrated with training and research institutions and in high-tech zones. At the same time, promoting the development of networks of advisory, brokerage, and promotion organizations for technology purchase and transfer activities across all economic sectors.

III. SOLUTIONS

1. Group of solutions to improve the legal environment for developing the technology market.

a) Building and perfecting the necessary legal system for the technology market to function.

Reviewing, amending, supplementing, and promulgating new regulatory documents related to intellectual property and technology transfer to promote creative activities and technology transfer, ensuring national interests, and meeting international commitments to which Vietnam is a party. Building and implementing the Intellectual Property Law, the Technology Transfer Law, and the system of guiding regulations for these laws. Simultaneously, advancing the legal system for businesses, investment, finance, science, and technology, and other relevant institutional provisions to support technology purchase activities.

b) Enhancing the enforcement of laws.

Perfecting the implementation provisions in the legal system concerning intellectual property and technology transfer. Strengthening the capacity of law enforcement agencies; enhancing the understanding and capability of officials in detecting violations and resolving disputes over intellectual property rights, effectively protecting the actual rights and interests of individuals and organizations recognized by law.

Enhancing legal awareness about intellectual property and technology transfer throughout society, particularly among the scientific and technological community and the business sector. Emphasizing training on intellectual property and technology transfer in universities; establishing supplementary programs on intellectual property and technology transfer for officials in research institutes, universities, businesses, and law enforcement agencies. Strengthening the training of lawyers in intellectual property.

Supplementing the function of managing the development of the technology market for state management agencies at the Ministry, sector, and local levels.

2. Group of solutions to stimulate technology demand.

a) Creating a competitive business environment to promote technological innovation.

Perfecting the macroeconomic environment to facilitate and motivate organizations and individuals to participate in investing in technological innovation, creating a healthy competitive environment among different economic sectors; accelerating the restructuring and shareholding reform of state-owned enterprises; proactively integrating into the international and regional communities. Developing financial markets, labor markets, real estate markets, and other markets, creating synchronization and interconnection, mutual support among these markets in a socialist-oriented market economy.

b) Encouraging, supporting, and promoting enterprises to innovate technologically.

Reviewing to amend and abolish regulations hindering enterprises in technological innovation investments; issuing new specific, transparent, easy-to-implement guidelines and implementing the principle of a single window in reviewing incentives for technological innovation activities. Specifying investment in technological innovation as a criterion for evaluating enterprise performance.

Building a coordination and dialogue mechanism between state agencies at all levels and scientific and technological organizations and enterprises to promptly identify and resolve issues in the implementation of preferential policies and encouragement of technological innovation activities.

There shall be mechanisms and policies to support enterprises, particularly small and medium-sized enterprises, in developing their technological capabilities, specifically: establishing programs to enhance enterprises' capacity for research and development, design, and technology management; implementing programs to assist enterprises in developing intellectual property assets; encouraging organizations and individuals from all economic sectors to participate in vocational training activities; utilizing official development assistance (ODA) funds for training technological skills in industries, with a focus on strategically significant investment projects; supporting small and medium-sized enterprises in building advanced quality management systems.

Encourage enterprises to establish science and technology development funds to proactively conduct research, development, and application of technology. Enterprises may account investments in scientific and technological activities as reasonable production costs and apply higher accounting rates for high-tech fields.

Develop a network of industrial promotion services with active participation from business associations, technology transfer and application centers under local Science and Technology Departments to provide services for technological innovation support, improve technological management awareness, learn technology at enterprises; summarize and disseminate lessons, experiences, and good practices in technological management; identify and propose solutions to address industry-wide and cross-industry technological limitations.

Establish mechanisms to encourage enterprises to set up research and technological innovation departments, utilize services from key laboratories, technology incubation centers, and science and technology enterprise incubators to advance technological innovation.

c) Develop technological needs in agriculture and rural areas.

The State supports activities to promote and develop domestic and international agricultural product markets, encourages commercial agricultural production based on technology with sufficient scale in suitable locations.

Implement policies to support farmers with information, training, and funding for technology application, especially in economically disadvantaged and extremely disadvantaged regions. Improve and enhance the effectiveness of the agricultural extension system in transferring technology to agriculture and rural areas.

Strengthen the implementation of mechanisms linking state management agencies, science and technology organizations, enterprises, and farmers to develop, apply, and transfer advanced techniques serving agricultural production and rural development. Local Science and Technology Departments shall act as the lead agency to implement these linkages.

3. Group of measures to promote technology supply.

a) Develop domestic technology supply sources.

- Create strong incentives for organizations and individuals to create and commercialize practical technologies:

Clearly define responsibilities for technology transfer institutions and recipients regarding research results serving public welfare; establish appropriate reward systems for organizations and individuals whose research results are widely applied and yield high socio-economic benefits.

- Shift research and technology development activities towards market orientation:

Reform the method of determining state science and technology tasks towards aligning task formation with practical needs and market demands. Establish mechanisms and policies to encourage and promote enterprises from all economic sectors to commission work from domestic and foreign science and technology organizations and participate in proposing and selecting organizations and individuals to undertake state science and technology tasks.

Implement autonomy and self-responsibility mechanisms for public science and technology organizations to enhance their dynamism in the market economy. Transition state research and development organizations with market-linked products to operate under business mechanisms. Provide support mechanisms and policies for these organizations during the transition process. Encourage research institutes and universities to establish or form joint ventures and partnerships with domestic and foreign organizations to create science and technology enterprises; implement special investment policies regarding infrastructure, tax, and land use for science and technology enterprises operating in high-tech fields.

- Reform investment policies for science and technology:

Focus on selective investment to build infrastructure and develop human resources for key technological directions that significantly impact modernization of economic and technical sectors, national defense, and security; facilitate the development of new professions, create jobs, and enhance the competitiveness of the economy.

Shift the structure of state investment in science and technology activities towards increasing investment ratios for development and improvement of technology, experimental production, technology incubation, science and technology enterprise incubation, research on technology needs, and technology marketing. Support funding for defense technology transfer projects for civilian purposes according to market demand.

Form and put into operation science and technology development funds at the ministry, sector, provincial, municipal, organizational, and individual levels, while effectively operating the National Science and Technology Development Fund. Establish regulations on the organization and operation of venture capital funds by domestic and foreign organizations for research, development, and application of technology.

Support organizations and individuals in developing intellectual property and transferring technology. Organize publicity and training on intellectual property rights and technology transfer. Develop programs to assist enterprises, universities, research institutes, and other organizations and individuals in developing, establishing ownership, managing, and exploiting intellectual property both domestically and internationally. Clearly define the responsibility of public science and technology organizations in managing intellectual property and technology transfer.

Promote scientific and technological activities, innovation, and technology transfer at the local level. Strengthen collaboration between research institutes, universities, financial organizations, and businesses, with coordination and support from state management agencies in business technological innovation activities. Integrate technology innovation programs, scientific and technological programs with local economic and social development programs. Support enterprises, organizations, and individuals of all economic sectors to transfer and apply technology to serve local economic and social development through the provincial and municipal Science and Technology Development Fund.

b) Enhance international technology cooperation

Develop policies for importing technology towards importing machines, equipment, technical services that meet quality standards, labor safety, and environmental protection; encourage technology imports linked to mastering and domesticating technology in certain areas where Vietnam has strengths, based on collaboration between science and technology organizations and domestic companies through supporting costs related to the exploitation of industrial property objects, technology transfer fees, training staff costs, and hiring both domestic and foreign experts.

Encourage the establishment of science and technology organizations linking foreign companies with domestic companies and research-training institutions; develop special investment attraction policies to draw multinational corporations with source technologies and high-tech companies to invest and transfer technology in Vietnam; encourage foreign companies to transfer technology to Vietnam in joint venture and business cooperation contracts; have mechanisms to attract excellent domestic and foreign experts to work professionally and manage in science and technology organizations and enterprises in Vietnam.

c) Strengthen the provision of advanced techniques and new seeds for the agricultural and rural areas.

Diversify and improve channels for transferring technology to the agricultural and rural areas through science and technology support programs and other socio-economic programs. Organize regular technology trading points at regional and provincial levels in areas with demand and suitable conditions.

Develop a chain of enterprise-farmer-scientist connections to address input-output issues in agricultural production to meet market requirements. Develop high-tech agricultural zones invested in by enterprises.

Mobilize financial resources, including science and technology funds, to serve the economic and social development of underdeveloped rural areas, economically disadvantaged regions, and extremely disadvantaged regions. Continue to support free technology transfer activities, partially or fully support information, training, and extension activities serving poor farmers.

4. Group of solutions to develop types of services and promote technology trade.

a) Form and develop technology trade promotion organizations.

In the short term, the State supports the organization of regular technology and equipment markets nationwide; encourage organizing such activities at the local level. Increase support from specialized agencies and provincial Science and Technology Departments in implementing technology purchase and sale contracts after signing. The Ministry of Science and Technology promulgates the Rules on Technology and Equipment Markets.

Establish and put into operation two regular technology trading centers in Hanoi and Ho Chi Minh City to provide infrastructure for service organizations supporting technology trade, including foreign service providers; create a favorable trading environment for market participants to understand information, negotiate, and trade technology; organize exhibitions, introductions, and demonstrations of technology; build databases on offered and needed technology to serve the center's operations, including electronic trading activities; conduct statistics on technology trade transactions.

Reorganize the activities of science and technology information centers under state agencies towards balancing functions to ensure information for state management bodies, community service, and commercial technology information business; enhance the professionalism and usefulness of information services; focus on building and utilizing technology databases to serve agriculture and rural development, developing electronic information supply networks about the technology market down to districts and communes.

Promote socialization of services for organizing technology and equipment markets, technology trading centers, and technology information services.

b) Develop advisory, appraisal, evaluation, and technology assessment services.

Improve the operational capacity and service quality of state advisory, appraisal, evaluation, and technology assessment organizations. Establish two technology evaluation, appraisal, and valuation centers in Hanoi and Ho Chi Minh City. Attract science and technology organizations, social organizations, occupational associations, professional service providers, and other domestic and foreign organizations and individuals to participate in providing these services. Simultaneously, raise awareness and promote the use of advisory, appraisal, evaluation, and technology assessment services in economic and social activities.

Develop intellectual property legal services and other legal services related to technology trade. Encourage the establishment of enterprises providing intellectual property legal services and technology transfer services.

Review and revoke regulations that are no longer appropriate concerning the practice of legal advisory services in the field of intellectual property and technology transfer. Develop provisions on financial incentives for legal services related to intellectual property and other legal services related to the purchase and sale of technology. Establish non-profit legal advisory organizations in the fields of intellectual property and technology transfer.

d) Develop financial services.

Encourage financial institutions from all economic sectors to provide financial services supporting technological innovation, technology transfer, and application; domestic and foreign organizations and individuals to participate in venture investments for technology incubation and science and technology business incubation. Create an environment and conditions for the operation of the securities market to support and promote the development of science and technology businesses after successful incubation.

Article 2. Implementation

1. Ministries, ministerial-level agencies, government agencies, and People's Committees of provinces and centrally governed cities within their respective functions, tasks, and authorities shall take the initiative to organize implementation and attract the participation of social organizations, occupational associations, and other organizations and individuals to implement the goals and solutions for developing the technology market.

The Ministry of Science and Technology shall take the lead and coordinate with ministries, ministerial-level agencies, government agencies, provincial and centrally governed city people's committees to implement this Project and report annually to the Prime Minister.

2. From now until the end of 2007:

a) The Ministry of Science and Technology shall take the lead and coordinate with the Ministry of Culture, Information, the Ministry of Planning and Investment, the Ministry of Education and Training, the Ministry of Finance, relevant ministries and agencies, and provincial and centrally governed city people's committees:

- Review and propose amendments, supplements, and new promulgation of legal regulations related to the development of the technology market (to be submitted to the Prime Minister in 2005);

- Draft the Intellectual Property Law (to be submitted to the National Assembly in 2005) and the Technology Transfer Law (to be submitted to the National Assembly in 2006); draft guiding legal documents for these two Laws (to be submitted to the Government in 2006 and 2007);

- Draft policies on importing technology (to be submitted to the Prime Minister in 2006);

- Draft regulations on ownership, management, and exploitation of intellectual property created using state funds (to be submitted to the Prime Minister in 2006);

- Draft a project to develop technology incubation centers and science and technology business incubation centers (to be submitted to the Prime Minister in 2006);

- Draft a project to establish a venture capital fund (to be submitted to the Prime Minister in 2006).

b) The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Science and Technology:

- Draft policies to mobilize various sources of capital to support technological innovation investment for enterprises of all economic sectors;

- Draft a project to enhance enterprise management and technological development capabilities (to be submitted to the Prime Minister in 2006).

c) The Ministry of Finance shall take the lead and coordinate with the Ministry of Science and Technology to review and propose amendments, supplements, and new promulgation of legal regulations on finance for developing the technology market (to be submitted to the Prime Minister in 2006).

d) The Ministry of Agriculture and Rural Development, the Ministry of Industry, and the Ministry of Fisheries shall take the lead and coordinate with the Ministry of Science and Technology to draft projects to improve mechanisms and policies encouraging technological innovation in agriculture, industry, and fisheries; enhance the effectiveness of agricultural extension, industrial extension, and fisheries extension systems (to be submitted to the Prime Minister in 2006).

đ) The People's Committee of Hanoi City and the People's Committee of Ho Chi Minh City shall take the lead and coordinate with the Ministry of Science and Technology and relevant ministries and agencies to draft projects to establish two regular technology trading centers in Hanoi and Ho Chi Minh City (to be submitted to the Prime Minister in 2006).

e) Ministries, sectors, provincial and centrally governed city people's committees shall implement the projects mentioned in points a, b, c, and d of this item after approval.

g) By the end of 2007, the Ministry of Science and Technology shall take the lead and coordinate with ministries, sectors, and provincial and centrally governed city people's committees to conduct a mid-term review and draw lessons learned, and propose actions needed to develop the technology market in subsequent years.

3. From 2008 to 2010:

a) Ministries, sectors, provincial and centrally governed city people's committees shall intensify the implementation of approved projects.

b) The Ministry of Science and Technology shall take the lead and coordinate with ministries, sectors, and provincial and centrally governed city people's committees to evaluate the implementation of the Project's objectives for developing the technology market (by 2010).

4. Funding for Implementation:

a) Funding for implementing the Project will be secured from the following sources:

- Central and local state budgets.

- Other sources of funding, including corporate capital, individual capital, and foreign investment.

b) Annually, the Ministry of Science and Technology, the Ministry of Finance, the Ministry of Planning and Investment, and provincial and centrally governed city people's committees shall balance the budget to implement the Project's tasks.

Article 3. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decision./.