Law on Science and Technology No. 29/2013/QH13

LAW

SCIENCE AND TECHNOLOGY 

BASED ON THE CONSTITUTION OF THE SOCIALIST REPUBLIC OF VIETNAM IN 1992 AS AMENDED AND COMPLEMENTED BY RESOLUTION NO. 51/2001/QH10;

The National Assembly enacts the Law on Science and Technology.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law stipulates the organization and activities of individuals and entities engaged in science and technology; the implementation of scientific and technological activities; measures to ensure the development of science and technology; state management of science and technology.

Article 2. Applicability

This Law applies to individuals and entities conducting scientific and technological activities in Vietnam.

Article 3. Explanation of Terms

In this Law, the following terms shall be understood as follows:

1. Science is a system of knowledge about the nature, existence, and development rules of natural phenomena, social phenomena, and thought.

2. Technology is a solution, process, technical secret accompanied or not accompanied by tools and means used to transform resources into products.

3. Scientific and technological activities include scientific research, experimental and applied research, technological development, technology application, scientific and technological services, promoting initiatives and other creative activities aimed at developing science and technology.

4. Scientific Research is the activity of discovering, identifying, and understanding the nature and laws of natural phenomena, social phenomena, and thought processes; creating solutions for practical application.

5. Basic research is an activity aimed at discovering the nature and rules of natural phenomena, social phenomena, and thought.

6. Applied Research is the activity of researching and applying scientific research results to create new technologies, improve existing technologies to serve human and societal benefits.

7. Technological development is the activity of using basic research results, applied research results, through experimental deployment and trial production to perfect existing technologies and create new ones.

8. Experimental deployment is the activity of applying scientific research results and technological development outcomes to create new technology products in prototype form.

9. Experimental production is the activity of applying experimental deployment results to conduct trial production to perfect new technologies and products before mass production and commercialization.

10. Scientific and technological services include technical support activities for scientific research and technological development; activities related to intellectual property, technology transfer, technical standards, metrology, product quality, radiation safety, nuclear and atomic energy, information, consulting, training, dissemination, and application of scientific and technological achievements in economic and social fields.

11. Scientific and technological organizations are organizations with the main function of conducting scientific research, experimental and applied research, technological development, and scientific and technological service activities, established and registered according to the provisions of the law.

12. Individuals engaged in scientific and technological activities are persons who carry out scientific and technological activities.

13. Scientific and technological tasks are scientific and technological issues that need to be resolved to meet the requirements of economic and social development, national defense, security, and the development of science and technology.

14. Ordering the performance of scientific and technological tasksis the act of the ordering party proposing requirements for scientific and technological products, providing funding for individuals and entities engaged in scientific and technological activities to produce such products through contracts.

15. Infrastructure for the development of science and technology includes the material and technical facilities of scientific and technological organizations; standard measurement systems, key laboratories; high-tech zones, high-tech agricultural zones, technology incubation centers, science and technology business incubation centers; information and statistical infrastructure for science and technology.

16. Innovation (đổi mới sáng tạo) is the creation and application of scientific and technological achievements, technical solutions, and management solutions to enhance the effectiveness of economic and social development, increase productivity, product quality, and value added.

Article 4. Tasks of scientific and technological activities

1. Building theoretical foundations for socialism and the path to socialism in Vietnam; establishing scientific grounds for formulating policies, laws on economic and social development, ensuring national defense and security; contributing to building an advanced education system, shaping new Vietnamese individuals; inheriting and promoting traditional historical and cultural values, absorbing the finest elements of world culture, and contributing to the global cultural and scientific treasury.

2. Enhancing scientific and technological capabilities to master advanced technologies, high technologies, and advanced management methods; using natural resources rationally, protecting the environment, and safeguarding human health; promptly forecasting, preventing, mitigating, and remedying the consequences of natural disasters.

3. Absorbing achievements in science and technology from around the world to create and effectively apply new technologies; producing competitive new products; developing Vietnam's science and technology to reach advanced levels in the region and approach world standards, serving as a solid foundation for modern industry development; promoting the dissemination and application of scientific and technological achievements in production and daily life.

Article 5. Principles of scientific and technological activities

1. Starting from practical needs, serving economic and social development, ensuring national defense and security, and developing science and technology.

2. Building and enhancing internal capacity in science and technology while selectively absorbing achievements in science and technology from around the world, in line with Vietnam's reality.

3. Ensuring freedom of creativity, promoting democracy in scientific and technological activities for the country's development.

4. Being honest, objective, emphasizing professional ethics, self-reliance, and accountability.

5. Ensuring the safety of human lives and health, and environmental protection.

Article 6. State Policies on Science and Technology Development

The State implements the following policies to ensure that the development of science and technology is a top national strategy:

1. Prioritizing and concentrating all national resources for the development of science and technology; applying comprehensive mechanisms and measures to encourage and provide incentives to highlight the key role and driving force of science and technology in economic and social development, ensuring national defense and security, protecting the environment, and improving the quality of people's lives.

2. Developing comprehensively fields of social sciences and humanities, natural sciences, engineering sciences, and technology; linking tasks of science and technology development with economic and social development tasks, ensuring national defense and security; creating preconditions for the formation and development of a knowledge-based economy.

3. Promoting research and application of advanced and modern scientific and technological achievements, researching to master and create new technologies to innovate, improve the level of technology, and enhance the competitiveness of products.

4. Concentrating investment in building material and technical infrastructure, focusing on priority and key national science and technology areas; applying special preferential mechanisms and policies to develop, train, attract, and effectively utilize scientific and technological human resources.

5. Creating conditions for the development of the science and technology market.

6. Encouraging and creating favorable conditions for businesses to invest in scientific and technological activities, innovate, and improve the level of technology.

7. Encouraging and creating conditions for scientific and technological associations, political and social organizations, social organizations, and occupational organizations to participate in advisory, critical review, social appraisal, and scientific and technological activities.

8. Actively integrating internationally in science and technology; enhancing the country's position in science and technology in the region and globally.

Article 7. Vietnam Science and Technology Day

May 18 each year is Vietnam Science and Technology Day.

Article 8. Prohibited Acts

1. Exploiting scientific and technological activities to infringe upon the interests of the State, rights, and legitimate interests of organizations and individuals; causing damage to natural resources, the environment, and human health; contravening ethics and national customs and traditions.

2. Infringing upon intellectual property rights; appropriating, transferring, or illegally transferring scientific and technological results.

3. Disclosing documents and scientific and technological results listed in the state secrets directory; deceiving or falsifying in scientific and technological activities.

4. Obstructing lawful scientific and technological activities of organizations and individuals.

PART II

SCIENCE AND TECHNOLOGY ORGANIZATIONS

Section 1

ESTABLISHMENT, RIGHTS AND OBLIGATIONS OF SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS

Article 9. Forms and classification of scientific and technological organizations

1. The forms of science and technology organizations are specified as follows:

a) Scientific research organizations, scientific research and technological development organizations are organized in the form of academies, institutes, centers, laboratories, research stations, monitoring stations, testing stations, and other forms prescribed by the Minister of Science and Technology;

b) Higher education institutions are organized in accordance with the provisions of the Higher Education Law;

c) Scientific and technological service organizations are organized in the form of centers, offices, testing laboratories, and other forms prescribed by the Minister of Science and Technology.

2. Scientific and technological organizations are classified as follows:

a) According to the authority for establishment, scientific and technological organizations include those types prescribed in Clause 1 of Article 12 of this Law;

b) According to function, scientific and technological organizations include basic research organizations, applied research organizations, and scientific and technological service organizations;

c) According to ownership form, scientific and technological organizations include public scientific and technological organizations, non-public scientific and technological organizations, and scientific and technological organizations with foreign capital.

1. Based on the tasks of economic and social development, ensuring national defense and security, and the national strategy for science and technology development, the Ministry of Science and Technology shall take the lead and coordinate with ministries, ministerial-level agencies, government agencies, provincial people's committees under central cities, and other state agencies to build and submit for approval the Prime Minister's approval of the planning of the network of public scientific and technological organizations.

2. The construction of the planning of the network of public scientific and technological organizations must be carried out according to the following principles:

a) Building a unified, synchronized, and reasonably distributed network of scientific and technological organizations that meets the requirements of science and technology development and economic and social development, ensuring national defense and security;

b) Linking scientific and technological organizations with training institutions and organizations applying scientific research and technological development results;

c) Ensuring the achievement of the goal of enhancing the country's scientific and technological capacity, focusing on fields of science and technology directly serving economic and social development, national defense, and security;

d) Ensuring efficient use of state resources, promoting social investment in science and technology development, especially in priority and key areas of science and technology.

Article 11. Conditions for establishment and registration of operation of scientific and technological organizations

1. Scientific and technological organizations shall be established when they meet the following conditions:

a) Having organizational and operational charters, objectives, and directions consistent with legal provisions;

b) Scientific and technological human resources and material-technical infrastructure that satisfy the requirements to achieve the objectives, directions, and organizational and operational regulations.

3. The establishment of scientific and technological organizations with foreign capital must comply with the provisions of Clause 1 of this Article and meet the following requirements:

a) Objectives, contents, and fields of activity must be consistent with legal regulations, development requirements of science and technology, and economic and social development of Vietnam;

b) Approval by the Minister of Science and Technology to establish;

c) Permission by the People's Committee of the province or centrally governed city (hereinafter referred to as the provincial-level People's Committee) to set up offices in localities.

4. Scientific and technological organizations must register their operations with competent state management agencies on science and technology and obtain certificates of registration for scientific and technological activities.

5. The Government shall specify detailed conditions for establishment, authority, procedures, and formalities for registering the operation of scientific and technological organizations.

Article 12. Authority, procedures, and formalities for establishment, merger, division, separation, and dissolution of scientific and technological organizations

1. The authority to establish scientific and technological organizations is defined as follows:

a) The National Assembly, the Standing Committee of the National Assembly establishes scientific and technological organizations under the National Assembly, the Standing Committee of the National Assembly;

b) The Government establishes scientific and technological organizations under the Government;

c) The Supreme People's Court establishes scientific and technological organizations under the Supreme People's Court;

d) The Supreme People's Procuracy establishes scientific and technological organizations under the Supreme People's Procuracy;

đ) The Prime Minister establishes or delegates to Ministers, Heads of ministerial-level agencies, or agencies under the Government to establish scientific and technological organizations under ministries, ministerial-level agencies, or agencies under the Government;

e) Ministers, Heads of ministerial-level agencies, or agencies under the Government establish scientific and technological organizations under ministries, ministerial-level agencies, or agencies under the Government, except in cases provided for in point đ of this clause;

g) Provincial-level People's Committees establish scientific and technological organizations of the locality within their authority;

h) Political organizations, political-social organizations, social organizations, and occupational social organizations establish scientific and technological organizations in accordance with the law and their charters;

i) Enterprises, other organizations, and individuals establish their own scientific and technological organizations.

2. Agencies, organizations, and individuals establishing scientific and technological organizations have the right to decide on mergers, divisions, separations, and dissolutions of scientific and technological organizations; and define the functions and tasks of the scientific and technological organizations they establish in compliance with the law.

3. The Government shall specify detailed procedures and formalities for the establishment, merger, division, separation, and dissolution of scientific and technological organizations.

Article 13. Rights of scientific and technological organizations

1. Self-management and self-responsibility in scientific and technological activities within the fields certified by registration certificates. Public scientific and technological organizations are allocated staffing by the State.

2. Register to participate in selection or be directly assigned to implement scientific and technological tasks; sign scientific and technological contracts; train human resources and nurture talents in scientific and technological fields.

3. Establish affiliated scientific and technological organizations, enterprises, or scientific and technological enterprises, representative offices, branches both domestically and abroad for scientific and technological activities according to this Law and other relevant laws.

4. Cooperate, form joint ventures, receive financial support from organizations and individuals; contribute capital in the form of money, assets, intellectual property rights for scientific and technological activities and production and business operations according to the law.

5. Be protected in intellectual property rights; transfer and assign results of scientific and technological activities according to the law on intellectual property and technology transfer.

6. Publish results of scientific and technological activities according to the Law on Press and Publication and other relevant laws.

7. Advise and propose opinions on policy, legal system, socio-economic development plans, and national scientific and technological development plans with competent authorities.

8. Participate in international integration activities in scientific and technological fields.

9. Be allowed to convert partially or entirely into scientific and technological enterprises according to the law.

Article 14. Obligations of scientific and technological organizations

1. Register scientific and technological activities; conduct scientific and technological activities strictly within the fields specified in the registration certificate.

2. Fulfill signed scientific and technological contracts and assigned scientific and technological tasks by competent agencies and organizations.

3. Implement democracy, equality, and transparency in the use of funds and execution of scientific and technological tasks.

4. Ensure funding for regular basic research activities according to their functions; use investment funds for science and technology in accordance with the law.

5. Register, retain, and transfer research results and technological development outcomes funded by state budget.

6. Implement reporting and statistical systems on science and technology.

7. Protect the interests of the State and society, lawful rights and interests of individuals engaged in scientific and technological activities within their organization; keep state secrets related to science and technology.

Article 15. Representative offices and branches in Vietnam of foreign scientific and technological organizations

1. Foreign scientific and technological organizations may establish representative offices and branches in Vietnam to engage in scientific and technological activities and activities directly related to scientific and technological activities according to this Law and other relevant laws.

2. The establishment of representative offices and branches in Vietnam by foreign scientific and technological organizations must meet the following conditions:

a) Being a legitimate scientific and technological organization of an international, national, or territorial organization where it was established or registered to operate;

b) Meeting the conditions stipulated in Clause 3, Article 11 of this Law;

c) Operating in scientific and technological fields that Vietnam has a need for;

d) Committing to strictly comply with Vietnamese laws and international treaties to which Vietnam is a member.

3. The permit for establishing representative offices and branches in Vietnam by foreign scientific and technological organizations shall be issued by the Minister of Science and Technology and shall not exceed five years but shall not exceed the remaining validity period of the registration certificate or equivalent document of the foreign scientific and technological organization if the law of that country specifies a validity period for the registration certificate of foreign scientific and technological organizations.

4. Representative offices and branches in Vietnam of foreign scientific and technological organizations shall carry out scientific and technological activities recorded in the establishment permit and have rights and obligations according to this Law and other relevant laws.

5. The Government shall specify detailed regulations on conditions, procedures, and formalities for establishing representative offices and branches in Vietnam by foreign scientific and technological organizations.

Section 2

EVALUATION AND RANKING OF SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS

Article 16. Purpose and Principles of Evaluation and Ranking of Scientific and Technological Organizations

1. The evaluation of scientific and technological organizations is the process of using knowledge and specialized expertise to determine the capacity and effectiveness of their activities.

2. The evaluation of scientific and technological organizations aims at the following purposes:

a) To create a basis for ranking scientific and technological organizations;

c) To serve the consideration of selection and direct assignment of tasks to leading organizations in science and technology, implementation of preferential investment policies from the state budget, loans, funding, and loan guarantees provided by funds in the field of science and technology.

3. The evaluation and ranking of scientific and technological organizations shall be carried out according to the following principles:

a) Appropriate methods and criteria for evaluation must be applied;

b) Independence, equality, honesty, objectivity, and compliance with the law;

c) The results of the evaluation and ranking must be publicly disclosed and transparently.

Article 17. Evaluation of Scientific and Technological Organizations for State Management Purposes

1. Public scientific and technological organizations must be evaluated to serve state management.

2. The evaluation of scientific and technological organizations for state management purposes shall be conducted by state management agencies on science and technology or through independent evaluation organizations.

3. The evaluation of scientific and technological organizations shall be based on criteria and methods of evaluation prescribed by the Minister of Science and Technology for each type of scientific and technological organization.

Article 18. Independent Evaluation Organizations

1. Legal entities and individuals implementing the evaluation and ranking of scientific and technological organizations in accordance with this Law and other relevant laws.

2. The evaluation and ranking of scientific and technological organizations must comply with the principles stipulated in Clause 3 of Article 16 of this Law.

3. Legal entities and individuals conducting evaluations and rankings shall bear responsibility for the results of such evaluations and rankings.

PART III

INDIVIDUALS ENGAGED IN SCIENCE AND TECHNOLOGY, DEVELOPMENT OF SCIENTIFIC AND TECHNOLOGICAL HUMAN RESOURCES

Article 19. Research Scientist Titles, Technology Titles

1. A research scientist title is a name that reflects the level and research capability of an individual working in the field of science, including assistant researcher, researcher, senior researcher, and distinguished researcher. Individuals engaged in science and technology who participate in teaching and higher education training may be considered for appointment as professor or associate professor. Procedures for appointment follow regulations on higher education.

2. A technology title is a name that reflects the level and professional competence of an individual working in specific fields of technology. The Government shall specify technology titles, procedures, and processes for recognizing and appointing research scientist titles and technology titles.

3. An individual holding a doctorate degree or having outstanding scientific and technological research works or winning high awards in science and technology may be recognized and appointed to a higher research scientist or technology title regardless of years of service.

4. The Ministry of Home Affairs shall lead and coordinate with the Ministry of Science and Technology and related ministries and agencies to establish a system of directories, standards, and code numbers for research scientist titles and technology titles.

Article 20. Rights of individuals engaged in science and technology activities

1. Freedom to create and equality in science and technology activities.

2. To engage in science and technology activities independently or in cooperation with organizations or other individuals, and to enter into science and technology contracts.

3. To be provided conditions to participate and carry out science and technology tasks according to the functions of the science and technology organization they belong to.

4. To establish science and technology enterprises or science and technology organizations in certain fields as prescribed by the Prime Minister.

5. To register to participate in selection or be directly assigned to implement science and technology tasks.

6. To be protected for intellectual property rights; transfer or assign results of science and technology activities in accordance with laws on intellectual property and technology transfer.

7. To publish results of science and technology activities in accordance with the Law on Press, the Law on Publishing, and other relevant laws.

8. To contribute capital in the form of money, assets, or intellectual property value for science and technology activities, production, and business; to receive sponsorship for science and technology activities in accordance with the law.

9. To provide advice and propose policies, laws, plans for national socio-economic development to competent authorities, and plans for science and technology development of science and technology organizations they belong to, and to participate in monitoring implementation.

10. To participate in science and technology organizations, science and technology associations; to participate in training, consulting, scientific conferences, seminars; to participate in international cooperation activities in science and technology.

11. To be considered for recognition and appointment to positions specified in Article 19 of this Law.

12. To be awarded honors, enjoy preferential rights, and receive support as prescribed by law.

Article 21. Obligations of individuals engaged in science and technology activities

1. To contribute intellect and talent to the development of science and technology, economic and social development, ensuring national defense and security.

2. To fulfill signed science and technology contracts.

3. To carry out science and technology tasks assigned by competent agencies or organizations.

4. To register, retain, and deliver research results and technological development outcomes that have utilized state budget funds.

5. To keep state secrets related to science and technology, protect the interests of the State and society.

Article 22. Training human resources and nurturing talents in science and technology

2. The Ministry of Education and Training shall take the lead and coordinate with the Ministry of Science and Technology and specialized management agencies to organize undergraduate and postgraduate education; identify, train, and nurture talents to supplement science and technology human resources, ensuring sectoral, field-specific, and regional structures; focusing on training high-level human resources for priority and key areas of science and technology.

3. The Ministry of Science and Technology shall take the lead and coordinate with relevant agencies and organizations to organize training, nurturing, and enhancing professional expertise for the science and technology workforce nationwide.

4. The State encourages and creates conditions for organizations and individuals to self-train, participate in, and sponsor training and retraining of human resources and nurturing of talents in science and technology; encourages the training and utilization of female human resources in science and technology activities; prioritizes attracting and training science and technology human resources in regions with difficult socio-economic conditions.

5. The funding for implementing human resource training as stipulated in Clause 2 of this Article shall be guaranteed by the state budget. The funding for organizing training, nurturing, and enhancing professional expertise as stipulated in Clause 3 of this Article shall be sourced from the science and technology affairs budget. The funding for sponsoring training and retraining of human resources in science and technology as stipulated in Clause 4 of this Article shall be deductible when determining taxable income.

6. The Government shall specify this provision.

Article 23. Incentives for the use of human resources, scientific and technological talents

1. Persons appointed to scientific research positions and technological positions shall enjoy the following incentives:

a) Being assigned to a job position and receiving a salary and allowance commensurate with their expertise and capacity within public scientific and technological organizations;

b) Enjoying tax incentives as provided for in Article 64 of this Law;

c) Being equipped with means of work and provided with more favorable working conditions than those stipulated for state officials and civil servants, and in accordance with the requirements of the assigned scientific and technological tasks;

d) Being exempted from civil liability in cases where damage or risk is caused to the State during the implementation of scientific and technological tasks due to objective reasons, even though all procedures and regulations on scientific research have been fully complied with.

2. Leading scientists outside the incentives prescribed in Clause 1 of this Article shall also enjoy the following incentives:

a) Priority in being entrusted to lead important scientific and technological tasks;

b) Being allowed to establish outstanding research groups in their fields of expertise and being granted or supported with funding for the activities of these groups;

c) Directly proposing, participating in building, evaluating, and criticizing policies of the sector, field, and country regarding the development of science and technology;

d) Priority in being entrusted to independently review national, ministerial, and provincial-level scientific and technological tasks;

đ) Receiving special allowances as prescribed by the Government;

e) Being supported with funding to participate in domestic and international scientific conferences and seminars in their fields of expertise.

3. Scientists entrusted to lead particularly important national scientific and technological tasks, in addition to the incentives prescribed in Clause 1 of this Article, shall also enjoy the following incentives:

a) Receiving a salary and special allowances as agreed upon with the state agency assigning the task; being provided with official accommodation and transportation during the implementation of the assigned task;

b) Proposing the mobilization of scientific and technological human resources, funding for the task, and material and financial resources to ensure the implementation of the task;

c) Hiring and negotiating costs for hiring domestic and foreign experts; deciding independently on purchasing patents, designs, technical documents, and technological secrets serving the task within the allocated budget;

d) Deciding independently and being supported with funding to participate in domestic and international scientific conferences and seminars in their fields of expertise;

đ) Having full authority to organize the assigned task.

4. Talented young scientists, in addition to enjoying the incentives prescribed in Clause 1 of this Article, shall also enjoy the following incentives:

a) Priority in being granted scholarships to enhance their qualifications domestically and internationally;

b) Being allowed to establish outstanding research groups in their fields of expertise and being granted or supported with funding for the activities of these groups;

c) Being entrusted to lead potential scientific and technological tasks and having priority in leading and participating in other scientific and technological tasks;

d) Being supported with funding to participate in domestic and international conferences and seminars in their fields of expertise.

5. The Government shall specify this Article.

Article 24. Attracting individuals engaged in scientific and technological activities who are overseas Vietnamese and foreign experts

1. Individuals engaged in scientific and technological activities who are overseas Vietnamese and foreign experts are encouraged to participate in scientific and technological activities in Vietnam.

2. Individuals engaged in scientific and technological activities who are overseas Vietnamese during their time working in Vietnam shall have rights and obligations as prescribed in Articles 20 and 21 of this Law and shall enjoy the following incentives:

a) Being appointed or hired to hold leadership positions in scientific and technological organizations; being entrusted to lead scientific and technological tasks at various levels, and being considered for appointment to scientific research positions and technological positions as prescribed in Article 19 of this Law;

b) Receiving expert salaries as prescribed by the Government and other incentives according to contracts;

c) Enjoying incentives related to entry and exit, residence, housing, and other incentives as prescribed by law.

3. Foreign experts encouraged to participate in scientific and technological activities in Vietnam shall enjoy the following incentives:

a) Being hired to hold leadership positions in scientific and technological organizations; being entrusted to lead scientific and technological tasks;

b) Enjoying incentives related to entry and exit, residence, housing, and other incentives as prescribed by law;

c) Receiving expert salaries as prescribed by the Government and other incentives according to contracts.

4. Individuals engaged in scientific and technological activities who are overseas Vietnamese and foreign experts who have made significant contributions to the development of science and technology in Vietnam shall be honored, awarded, and given science and technology awards by the Vietnamese State.

5. The Government shall specify this Article.

CHAPTER IV

 DETERMINATION AND ORGANIZATION OF IMPLEMENTATION OF SCIENTIFIC AND TECHNOLOGICAL TASKS

Section 1

DETERMINATION OF SCIENTIFIC AND TECHNOLOGICAL TASKS

Article 25. Scientific and technological tasks

1. Scientific and technological tasks are organized in the form of programs, topics, projects, research tasks according to the functions of scientific and technological organizations and other forms.

2. Scientific and technological tasks using state budget funds include national-level, ministry-level, provincial-level, and grassroots-level scientific and technological tasks as determined by the competent authority prescribed in Article 27 of this Law. National-level, ministry-level, and provincial-level scientific and technological tasks must be implemented through procurement.

3. The State encourages and creates conditions for all organizations and individuals to propose scientific ideas and scientific and technological tasks. The Government stipulates criteria for determining scientific and technological tasks at various levels appropriate to each stage of development and field of science and technology; measures to encourage the proposal of scientific ideas and scientific and technological tasks.

Article 26. Proposing scientific and technological tasks

1. The proposal of scientific and technological tasks using state budget funds is regulated as follows:

a) Agencies, organizations, and individuals submit proposals for scientific and technological tasks to ministries, ministerial-level agencies, government agencies, provincial People's Committees, and central state agencies in accordance with their respective sectors, fields, and areas of management for consolidation.

Ministries, ministerial-level agencies, government agencies, provincial People's Committees, and central state agencies organize consultations to determine and publicly announce their own procurement tasks and submit proposals for national-level scientific and technological procurement tasks to the Ministry of Science and Technology;

b) The Ministry of Science and Technology is responsible for consolidating procurement proposals, organizing consultations on national-level scientific and technological tasks, and publicly announcing them;

c) The Minister of Science and Technology has the responsibility to proactively or upon request from the Government, the Prime Minister, propose urgent and newly emerging national-level scientific and technological procurement tasks that have significant impacts on national economic and social development and national defense and security; organize consultations on these tasks;

d) The consultation to determine scientific and technological tasks is carried out through the Scientific and Technological Task Consultation Council.

The Scientific and Technological Task Consultation Council is established, assigned tasks, and granted powers by the head of the competent agency or organization. The council members include reputable scientists, managers, and businesspeople with qualifications suitable for the tasks. In necessary cases, the head of the competent agency or organization may seek independent expert advice before or after the council meeting. Council members and independent experts must be responsible for their advisory opinions.

2. The proposal of scientific and technological tasks not using state budget funds may apply the provisions of Clause 1 of this Article.

3. Proposals and consultations to determine applied research tasks in the fields of science, technology, and engineering must include content on experimental implementation, trial production, and budget estimates for these activities or proposals for experimental implementation and trial production projects.

4. The Minister of Science and Technology shall specify this Article.

Article 27. Authority to Approve and Sign Contracts for Implementing Scientific and Technological Tasks

1. The authority to approve scientific and technological tasks shall be as follows:

a) Based on the national economic and social development strategy and the national scientific and technological development strategy, the Ministry of Science and Technology shall approve the direction, objectives, five-year scientific and technological tasks, and annual national-level scientific and technological tasks;

b) Ministries, ministerial-level agencies, government agencies, central state agencies, and provincial People's Committees shall approve ministry-level and provincial scientific and technological tasks;

c) Organizations and individuals not covered under points a and b of this clause shall self-approve or submit to the competent authority for approval of grassroots-level scientific and technological tasks according to their organizational structure and activities.

2. The authority to sign contracts with organizations and individuals to implement scientific and technological tasks shall be as follows:

a) The Ministry of Science and Technology shall sign contracts for implementing national-level scientific and technological tasks;

b) Ministries, ministerial-level agencies, government agencies, central state agencies, and provincial People's Committees shall sign contracts for implementing ministry-level and provincial scientific and technological tasks;

c) Organizations and individuals specified in point c of Article 27, Clause 1 of this Law shall sign contracts for implementing grassroots-level scientific and technological tasks.

3. Ministries, ministerial-level agencies, government agencies, central state agencies, and provincial People's Committees shall have the responsibility to report to the Ministry of Science and Technology on the approval and signing of contracts for implementing scientific and technological tasks for consolidation and inclusion in the national database on science and technology.

Section 2

METHODS FOR IMPLEMENTING SCIENTIFIC AND TECHNOLOGICAL TASKS

Article 28. Methods for Assigning Scientific and Technological Tasks

1. Scientific and technological tasks funded by the State budget shall be assigned through selection, direct assignment, or examination for funding from the State's science and technology fund.

2. Scientific and technological tasks not funded by the State budget may be implemented through the methods prescribed in Clause 1 of this Article or other methods chosen by organizations and individuals.

Article 29. Selection of Organizations and Individuals to Implement Scientific and Technological Tasks Funded by the State Budget

1. Selecting organizations and individuals to implement scientific and technological tasks funded by the State budget involves determining the organizations and individuals to undertake these tasks and ensuring competitiveness, fairness, and effectiveness.

2. Scientific and technological tasks that multiple organizations and individuals can participate in must be assigned through selection to achieve the highest efficiency.

3. National science and technology management agencies at all levels must publicly announce on their electronic information portals or other mass media the list of scientific and technological tasks; conditions and procedures for participating in the selection process.

4. The selection of organizations and individuals to implement scientific and technological tasks must ensure transparency, fairness, democracy, and objectivity; the results of the selection must be publicly announced on electronic information portals or other mass media.

5. The heads of national science and technology management agencies at all levels shall establish a Selection Council for organizations and individuals to implement scientific and technological tasks and define the duties and powers of this Council.

The Selection Council for organizations and individuals to implement scientific and technological tasks, established by the heads of national science and technology management agencies at all levels, defines the duties and powers of the Council. The Council has the duty to advise and must bear responsibility for its advice. The Council members include reputable scientists, managers, and businesspeople with appropriate qualifications for the tasks. Council members must have the capacity, moral character, and professional expertise suitable for the scientific and technological tasks and be responsible for their advisory opinions.

6. The heads of national science and technology management agencies at all levels shall be responsible under the law for decisions to select organizations and individuals to implement scientific and technological tasks after receiving the Council's advisory opinion. In necessary cases, the heads of national science and technology management agencies at all levels have the right to seek additional independent expert advice before making a decision.

7. The Minister of Science and Technology shall specify in detail the selection of organizations and individuals to implement scientific and technological tasks.

Article 30. Scientific and technological tasks funded by the state budget assigned directly

1. The State assigns scientific and technological tasks directly to organizations or individuals in one of the following cases:

a) Scientific and technological tasks involving national secrets, special services for security and defense;

b) Urgent scientific and technological tasks;

c) Scientific and technological tasks that can only be carried out by one organization with sufficient human resources, expertise, and equipment.

2. The head of the competent state management agency shall decide to assign scientific and technological tasks as stipulated in this Article after consulting the Science and Technology Advisory Council and shall be responsible for their assignment. Organizations or individuals entrusted with the main responsibility for the task must have sufficient capacity, conditions, and appropriate expertise. In necessary cases, the head of the state management agency may seek additional advice from independent experts before making a decision.

3. The Government shall specify this Article.

Article 31. Scientific and technological tasks funded by science and technology funds for sponsorship, loans, and loan guarantees

Organizations and individuals have the right to propose scientific and technological tasks for the science and technology development fund, the technology innovation fund, the high-tech venture capital fund, and other science and technology funds to consider sponsorship, loans, and loan guarantees according to the charter and operation regulations of the funds.

Article 32. Collaboration in defining and implementing scientific and technological tasks

1. The State encourages and creates conditions for scientific and technological organizations and scientists to collaborate with enterprises and other organizations to define and implement scientific and technological tasks serving the needs of innovation, improving technological levels, productivity, quality, and competitiveness of products and goods.

2. Financial support from the state budget for the implementation of scientific and technological tasks as stipulated in Clause 1 of this Article shall be regulated as follows:

a) Support up to 30% of the investment capital for enterprise projects applying the results of scientific and technological tasks to create new products or improve the productivity, quality, and competitiveness of products from the results of scientific and technological tasks; support up to 50% of the investment capital for projects implemented in economically and socially difficult areas, particularly difficult areas;

b) Support up to 50% of the investment capital for national-level scientific and technological tasks in priority and key fields of the State.

3. The Government shall specify the conditions, forms, procedures, formalities, and levels of support provided by the State for scientific and technological tasks as stipulated in this Article.

Section3

SCIENTIFIC AND TECHNOLOGICAL CONTRACTS

Article 33. Classification of scientific and technological contracts

1. Scientific and technological tasks and scientific and technological service activities are carried out through written scientific and technological contracts.

2. Types of scientific and technological contracts include:

a) Research and development contracts;

b) Technology transfer contracts;

c) Scientific and technological service contracts.

3. The Minister of Science and Technology shall specify the model of the contract as stipulated in point a of Clause 2 of this Article.

Article 34. Rights and obligations of the ordering party under research and technology development contracts

1. The ordering party under research and technology development contracts has the following rights:

a) Ownership of research and development results, unless otherwise agreed in the contract;

b) Organization of the transfer of ownership or usage rights of research and development results.

2. The ordering party under research and technology development contracts has the following obligations:

a) Provision of necessary information for contract performance;

b) Organization of acceptance of the results of the ordered task;

c) Acceptance and organization of application or transfer of research results after acceptance;

d) Full payment of costs to the contracted party according to the agreement in the contract.

Article 35. Rights and Obligations of the Party Receiving Orders to Perform Scientific Research and Technological Development Contracts

1. The party receiving orders to perform scientific research and technological development contracts shall have the following rights:

a) Enjoying authorship rights over the results of scientific research and technological development according to the agreement in the contract;

b) Requesting the ordering party to provide information and other conditions agreed upon in the contract for the performance of the contract;

c) To receive funding from the ordering party to implement the contract.

2. The party receiving orders to perform scientific research and technological development contracts shall have the following obligations:

a) Handing over the research results and submitting products in accordance with the provisions of the contract;

b) Keeping confidential about the results of scientific research and technological development according to the agreement;

c) Not transferring the results of scientific research and technological development to others without the consent of the ordering party.

Article 36. Resolution of Disputes in Scientific and Technological Contracts

1. The party violating a scientific and technological contract must compensate for damages caused by their fault and be dealt with according to the provisions of the law.

2. Disputes in scientific and technological contracts shall first be resolved through mediation and direct negotiation between the parties. In cases where the parties cannot resolve the dispute themselves, it shall be resolved through arbitration or court proceedings.

Section 4

EVALUATION, ACCEPTANCE, REGISTRATION, AND STORAGE OF RESULTS OF SCIENTIFIC AND TECHNOLOGICAL TASKS

Article 37. Evaluation and Acceptance of Results of Scientific and Technological Tasks

1. Scientific and technological tasks funded by state budget, upon completion, must be objectively and accurately evaluated and accepted through a specialized Science and Technology Council. The authority responsible for assigning the scientific and technological task decides on the acceptance of the results of the scientific and technological task. In necessary cases, the authority responsible for assigning the scientific and technological task has the right to seek additional advisory opinions from independent organizations or experts before making the decision to accept.

2. Scientific and technological tasks not funded by the state budget, organized and evaluated by the organization or individual themselves. In cases where the organization or individual does not have the ability to organize evaluation and acceptance, they have the right to request the competent state management agency for science and technology at the local level to consider evaluation and acceptance.

3. The results of scientific and technological tasks not funded by the state budget that affect national interests, defense, security, environment, human life, and health must be reviewed by the competent state management agency for science and technology.

4. Annually, the Ministry of Science and Technology publicly announces the list of scientific and technological tasks funded by the state budget that have been accepted.

5. The Minister of Science and Technology shall stipulate criteria and procedures for evaluating and accepting the results of the implementation of scientific and technological tasks.

Article 38. Specialized Science and Technology Councils, Independent Organizations, and Experts Evaluating and Accepting Results of Scientific and Technological Tasks

1. The authority responsible for assigning scientific and technological tasks shall be responsible for establishing a specialized Science and Technology Council or hiring independent organizations or experts to evaluate and accept the results of the implementation of scientific and technological tasks.

2. The composition of the specialized Science and Technology Council includes scientists, representatives of the agencies or organizations proposing the order, the agencies or organizations placing the order, managers, and business people with the appropriate expertise and qualifications for the task.

3. Independent organizations and experts must have the appropriate expertise and qualifications for the task.

4. The specialized Science and Technology Council, independent organizations, and experts shall conduct evaluations and acceptances of the results of the implementation of scientific and technological tasks according to the purpose, requirements, content, results, and progress recorded in the signed contract and shall be responsible to the authority responsible for assigning the scientific and technological task.

5. The specialized Science and Technology Council, independent organizations, and experts shall be responsible for the results of their evaluations.

Article 39. Registration and preservation of results from implementing scientific and technological tasks

1. Results from implementing scientific and technological tasks funded by the state budget must be registered and preserved at the national science and technology information agency and at the competent authority of the relevant ministry, sector, or local government. Results from implementing scientific and technological tasks listed in the state secrets directory shall be registered and preserved according to confidentiality regulations.

2. Results from implementing scientific and technological tasks not funded by the state budget are encouraged to be registered and preserved at the national science and technology information agency or at the competent authority of the relevant ministry, sector, or local government.

Article 40. Responsibility for receiving and organizing the application of results from implementing scientific and technological tasks

1. For scientific and technological tasks funded by the state budget, the Minister, Head of a ministerial-level agency, agency under the Government, other central state agencies, Chairman of the People's Committee of a province, head of political organizations, and political-social organizations have the responsibility to receive, organize the application, allocate funds, evaluate the effectiveness of applying the results of scientific and technological tasks proposed or ordered by them after evaluation, acceptance, and annually report the application results to the Ministry of Science and Technology.

2. For scientific and technological tasks not funded by the state budget where organizations or individuals lack the ability to organize the application of research results, they have the right to request the local state management agency on science and technology to consider creating conditions for application.

3. In cases where the results of scientific and technological tasks not funded by the state budget are donated to the State by organizations or individuals, the competent state agency has the responsibility to receive, preserve, and consider organizing the application.

Section 5

RIGHTS OF OWNERSHIP AND COPYRIGHT FOR RESEARCH RESULTS IN SCIENCE AND TECHNOLOGY DEVELOPMENT

Article 41. Rights of ownership and rights of use of research results in science and technology development

1. Organizations and individuals investing financial resources and material-technical infrastructure for the implementation of scientific and technological tasks are the owners of research results in science and technology development, except in cases where the parties agree otherwise in the scientific research and technology development contract.

2. For research results in science and technology development created using the state budget, the representative of the state owner is defined as follows:

a) The Minister of Science and Technology is the representative of the state owner of the results of national-level scientific and technological tasks;

b) The Minister, Head of a ministerial-level agency, agency under the Government, other central state agencies, Chairman of the People's Committee of a province is the representative of the state owner of the results of scientific and technological tasks at the ministry level, provincial level, or grassroots level approved by themselves;

c) The Head of an agency or organization not falling under the provisions of point a and point b of this clause is the representative of the state owner of the results of scientific and technological tasks decided and approved by themselves.

3. The representative of the state owner defined in Clause 2 of this Article has the right to examine and transfer all or part of the ownership or usage rights of research results in science and technology development created using the state budget according to the regulations of the Government to the leading organization implementing the scientific and technological task.

4. The implementation of ownership and usage rights of research results in science and technology development created using the state budget defined in Clause 3 of this Article is regulated as follows:

a) In cases where all or part of the ownership rights are transferred, the leading organization implementing the scientific and technological task implements these rights according to the laws on intellectual property and laws on technology transfer;

b) In cases where usage rights are transferred, the leading organization implementing the scientific and technological task implements these rights according to the laws.

5. In cases where the leading organization implementing the scientific and technological task cannot use the research results in science and technology development according to the provisions of point b Clause 4 of this Article, the representative of the state owner defined in Clause 2 of this Article decides to transfer those usage rights to another organization capable of using the research results in science and technology development.

6. The Government specifies in detail the cases, procedures, and formalities for transferring all or part of the ownership or usage rights of research results in science and technology development as stipulated in this Article.

Article 42. Copyright for scientific research and technological development results

The person directly performing the scientific research and technological development task is the author of the scientific research and technological development result. The author of the scientific research and technological development result enjoys rights as provided for in this Law and other relevant laws.

Article 43. Profit distribution when using, transferring usage rights, transferring ownership, contributing capital with scientific research and technological development results funded by state budget

Profits obtained from using, transferring usage rights, transferring ownership, or contributing capital with scientific research and technological development results funded by the state budget shall be allocated to the author at a minimum of 30%; the remainder shall be divided between the owner, the leading agency, and the intermediary according to the provisions of the Government.

CHAPTER V

APPLICATION OF SCIENTIFIC RESEARCH AND TECHNOLOGICAL DEVELOPMENT RESULTS, SPREADING SCIENTIFIC AND TECHNOLOGICAL KNOWLEDGE

Article 44. Responsibility for implementing the application of scientific research and technological development results

1. The responsibility for implementing the application of scientific research and technological development results of the party proposing the order or ordering the performance of scientific and technological tasks funded by the state budget shall be carried out in accordance with the provisions of Article 40 of this Law. In case the party proposing the order or ordering does not fulfill the responsibility prescribed in this clause, it will be handled according to the provisions of the law.

2. Organizations and individuals in charge of performing scientific and technological tasks funded by the state budget have the responsibility to directly or participate in implementing the application of scientific research and technological development results into production and daily life in accordance with the scientific research and technological development contract, requirements, and guidance of the ordering party, except in cases of force majeure.

In case organizations and individuals in charge of performing scientific and technological tasks do not fulfill the responsibility prescribed in this clause, they will be handled according to the provisions of the law, and at the same time, they will not be allowed to participate in performing scientific and technological tasks funded by the state budget within three years from the date of violation handling.

Article 45. Encouragement for the application of scientific research and technological development results

1. Organizations and individuals applying scientific research and technological development results, especially high technologies and exploiting, using patents to innovate economic and social management, technological innovation, and enhance product competitiveness are entitled to tax benefits, credit support, and other incentives as stipulated in this Law and other relevant legal documents.

2. Owners, authors, and successful users of scientific research and technological development results benefit from the application of these results in production and daily life according to the scientific and technological contract and the provisions of this Law.

3. Successfully applying scientific and technological achievements to production and daily life is one of the main criteria for evaluating the capacity of authors, heads of scientific and technological organizations, enterprises; it serves as a basis for the State to prioritize when selecting and assigning scientific and technological tasks funded by the state budget; it is considered by state funds in the field of science and technology for funding scientific and technological activities.

4. Agricultural extension organizations, forestry extension organizations, fishery extension organizations, industrial extension organizations, and scientific and technological service organizations are supported and given tax incentives and other incentives as prescribed by law to quickly apply scientific research and technological development results to production and daily life, and commercialize scientific research and technological development results.

5. Political organizations, political-social organizations, social organizations, and occupational social organizations, according to their functions and tasks, have the responsibility to create conditions for members to apply scientific research and technological development results.

Article 46. Application of science and technology in investment projects and socio-economic development programs

1. Investment projects and socio-economic development programs funded by state budget must establish items for expenditure on applying, researching, and developing to serve the establishment of scientific bases during the investment preparation phase, implementation phase, and resolution of science and technology issues arising during the implementation process.

2. Investment projects and socio-economic development programs must be reviewed regarding their scientific basis and technological level in accordance with legal requirements before approval.

3. The Government shall stipulate the authority, procedures, and formalities for reviewing technology in investment projects and socio-economic development programs.

Article 47. Encouragement of initiative activities, technical improvements, production rationalization, and innovation

1. State management agencies at all levels responsible for science and technology must take measures to promote initiatives, technical improvements, production rationalization, and innovation.

2. Annually, the Ministry of Science and Technology shall coordinate with political organizations, political-social organizations, social organizations, occupational associations, and enterprises to organize contests for initiatives, technical improvements, production rationalization, and promotion of innovation; allocate funds from the science and technology affairs budget to support these activities.

3. If an enterprise allocates funds to organize contests for initiatives, technical improvements, production rationalization, and innovation, the expenses incurred for such activities shall be considered as investment in the enterprise's science and technology activities.

4. The State shall sponsor and encourage organizations and individuals to organize and fund activities related to initiatives, technical improvements, production rationalization, and innovation, as well as to organize contests for these activities.

Article 48. Communication and dissemination of scientific and technological knowledge

1. The State shall invest and encourage organizations, enterprises, and individuals to invest in developing communication and dissemination of scientific and technological knowledge.

2. The Ministry of Science and Technology shall lead and coordinate with the Vietnam Association for Science and Technology, relevant agencies, and organizations to develop and implement annual and five-year plans for communication and dissemination of scientific and technological knowledge.

3. Expenses allocated by organizations, enterprises, and individuals for activities related to communication and dissemination of scientific and technological knowledge shall be considered reasonable costs.

Chapter VI

INVESTMENT AND FINANCIAL SUPPORT FOR THE DEVELOPMENT OF SCIENCE AND TECHNOLOGY

Section 1

STATE INVESTMENT

Article 49. State budget for science and technology

1. The State shall ensure that at least 2% of the total annual state budget expenditure is allocated to science and technology and gradually increase this allocation according to the development needs of the science and technology cause.

2. The budget for science and technology must be recorded as a separate item in the annual state budget of ministries, sectors, and localities.

3. The allocation of the state budget for science and technology for the following year shall be based on practical needs and the results of the use of the previously allocated budget.

Article 50. Purpose of State Budget Expenditure for Science and Technology

1. Implement priority and key science and technology tasks serving the common interests of society; focus on basic research tasks in various fields of science and technology.

2. Maintain and develop national scientific and technological capacity, invest in and support the construction of material and technical infrastructure for scientific and technological organizations; ensure the continuous operation of basic research activities of public scientific and technological organizations.

3. Develop human resources in science and technology.

4. Allocate funds to state funds in the field of science and technology as stipulated in Article 59 of this Law.

5. Support the implementation of applied research and technological innovation in priority and key areas.

6. Promote the application of science and technology at local levels.

7. Purchase results of scientific research and technological development, support the importation of source technologies, high technologies, designs, and hiring of domestic and foreign experts in priority fields.

8. Popularize knowledge, communicate, disseminate information, and statistics on science and technology; support the registration of intellectual property rights protection, publication of scientific research results and technological development outcomes, and science and technology awards.

9. Support other scientific and technological activities.

Article 51. Preparation of Budget Estimates and Management of State Budget Expenditure for Science and Technology

1. The Ministry of Science and Technology shall take the lead and coordinate with ministries, ministerial-level agencies, government agencies, central state agencies, and provincial People's Committees to prepare proposals for annual budget estimates for state expenditure on science and technology in accordance with the provisions of the law.

2. The Ministry of Planning and Investment and the Ministry of Finance shall prepare investment budget estimates for science and technology and operational budget estimates for science and technology based on the proposal from the Ministry of Science and Technology.

3. Specialized agencies assisting provincial People's Committees in managing state administration over science and technology shall prepare proposals for annual budget estimates for state expenditure on science and technology and request specialized agencies assisting provincial People's Committees in managing state administration over planning and investment, financial consolidation to prepare investment budget estimates for science and technology and operational budget estimates for science and technology, ensuring that allocated funds are fully and timely disbursed.

Provincial People's Committees shall submit the budget estimate for state expenditure on science and technology to the same-level People's Council for approval.

4. Financial authorities at all levels shall be responsible for timely and appropriate disbursement of science and technology funds in accordance with the progress of the science and technology plan; urge and inspect sectors and levels to ensure the proper and effective use of science and technology funds.

Article 52. Application of Cost Allocation for Science and Technology Tasks Using State Budget; Purchase of Scientific Research Results and Technological Development

1. The application of cost allocation for science and technology tasks using the state budget is regulated as follows:

a) Cost allocation is applied to science and technology tasks using the state budget in the fields of natural sciences, social sciences and humanities, engineering and technology, which have been approved by competent authorities regarding objectives, contents, product requirements, and budget estimates.

b) Science and technology tasks that clearly define final product criteria based on assessment explanations and budget estimates may apply cost allocation up to the final product.

c) Science and technology tasks that cannot apply cost allocation up to the final product and those with high risk shall implement cost allocation for each defined work with clear criteria.

2. In necessary cases, the State purchases scientific research results and technological development according to agreements with organizations and individuals.

3. The Government shall specify criteria, procedures, and processes for implementing cost allocation for science and technology tasks using the state budget and purchasing scientific research results and technological development.

Article 53. Granting, Using, and Managing State Budget Funds for Implementing Scientific and Technological Tasks

Clause 1. The granting of state budget funds for implementing scientific and technological tasks must be timely and appropriate to the procurement schedule and approval of scientific and technological tasks.

Clause 2. Funds for implementing scientific and technological tasks shall be granted through the State's science and technology development fund or transferred into the bank account of the leading agency responsible for implementing such tasks at the National Treasury.

Clause 3. The use of funds for implementing scientific and technological tasks shall be carried out according to the mandate payment authorization of the leading agency responsible for implementing such tasks and settled upon completion of the contract, regardless of the fiscal year.

Clause 4. The Government shall specify this provision.

Article 54. Special Investment Mechanism for Implementing Special Scientific and Technological Tasks

Clause 1. Large-scale scientific and technological tasks serving national defense and security, with significant impact on productivity, quality, and competitiveness of national products, shall apply a special investment mechanism.

Clause 2. The Government shall submit to the National Assembly for consideration and decision on scientific and technological tasks that are important national projects or works decided by the National Assembly on investment policy.

Clause 3. The Prime Minister decides to implement special scientific and technological tasks, except in cases provided for in Clause 2 of this Article.

Clause 4. The Government shall stipulate criteria for determining special tasks, investment mechanisms, and implementation methods for scientific and technological tasks applying the special investment mechanism as specified in this Article.

Section 2

INVESTMENT BY ENTERPRISES, ORGANIZATIONS AND INDIVIDUALS

Article 55. Mobilizing Non-State Budget Funds for Investment in Science and Technology

Clause 1. The State encourages all organizations and individuals to invest in and sponsor science and technology.

Clause 2. Organizations and individuals may establish science and technology development funds in accordance with Articles 62 and 63 of this Law.

Clause 3. Organizations and individuals investing in and sponsoring science and technology shall enjoy the following incentives:

Point a. Enjoy tax incentives as prescribed by law;

Point b. Be honored and rewarded as prescribed by law.

Article 56. Enterprises' Investment in Science and Technology

Clause 1. Enterprises must allocate funds for investment aimed at innovation, enhancing technological level, increasing productivity, quality, and competitiveness of products and goods.

Clause 2. Enterprise funds for developing science and technology shall be considered actual expenses related to business operations.

Clause 3. Enterprises investing or jointly investing in research and development in priority and key areas of the State, innovating and enhancing technological levels, increasing productivity, quality, and competitiveness of products and goods shall be supported, lent, and enjoy other incentives as prescribed by this Law from funds in the field of science and technology.

Article 57. Encouraging Enterprises to Apply Research Results and Technological Development

Clause 1. Enterprises applying research results and technological development to innovate, enhance technological levels, increase productivity, quality, and competitiveness of products and goods shall be sponsored, lent with preferential interest rates, interest rate subsidies, and guarantees for loans from State funds in the field of science and technology.

Clause 2. Enterprises applying high technology shall enjoy the highest incentives as prescribed by laws on high technology. Enterprises applying technology as a result of domestic scientific and technological tasks shall be subsidized interest rates for loans from banks.

Article 58. Development of Science and Technology Enterprises

1. A science and technology enterprise is an enterprise that engages in production, business, and scientific and technological services to create products and goods from the results of scientific research and technological development.

2. Science and technology enterprises must meet the following conditions:

a) It is an enterprise established, registered for business, managed, and operated according to the provisions of the Enterprise Law.

b) It has the capacity to perform scientific and technological tasks.

c) Revenue from producing and trading products and goods formed from the results of scientific research and technological development reaches the prescribed ratio.

3. In addition to the incentives stipulated in Article 57 of this Law, science and technology enterprises also enjoy the following incentives:

a) Being considered and granted ownership or usage rights over the results of scientific research and technological development owned by the state.

b) Enjoying preferential policies on corporate income tax and exemption from registration fees when registering land use rights and property ownership according to the provisions of the law.

c) Being prioritized for leasing land and infrastructure in industrial zones, export processing zones, economic zones, and high-tech parks.

d) Enjoying preferential policies on investment credit from the Vietnam Development Bank, the National Technology Innovation Fund, and other funds to implement investment projects in production and business.

đ) Being prioritized for using equipment serving scientific research and technological development activities at national key laboratories, technology incubation centers, business incubators, and state-owned scientific and technological research institutions.

Clause 4. The Government shall specify this provision.

Section 3

SUPPORT AND INVESTMENT FUNDS FOR SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES

Article 59. Support and Investment Funds for Scientific and Technological Activities

1. The State establishes and encourages organizations and individuals to establish funds to mobilize social resources to support and invest in scientific and technological activities.

2. The science and technology development fund is established according to the provisions of this Law. The technology innovation fund and the high-tech venture capital fund are established according to the provisions of the Technology Transfer Law and the High-Tech Law.

3. The mechanism and form of support and investment for scientific and technological activities by the fund are implemented according to the charter of the fund's organization and operation.

Article 60. National Science and Technology Development Fund

1. The Government establishes the National Science and Technology Development Fund with the purpose of providing financial sponsorship and funding for basic and applied research; providing financial sponsorship and funding for urgent scientific and technological tasks of significant scientific and practical importance, potential scientific and technological tasks; lending at low interest rates or without interest for the application of scientific research results and technological development in production and daily life; guaranteeing loans for certain specialized scientific and technological tasks; supporting young scientists' participation in international conferences and seminars; supporting activities to enhance national scientific and technological capabilities.

2. The National Science and Technology Development Fund is formed from initial capital, annual supplementary capital from the state budget allocated for scientific and technological development, the results of the fund's operations; voluntary contributions, donations, and other legitimate sources from organizations and individuals.

3. The Government stipulates the Charter of Organization and Operation of the National Science and Technology Development Fund.

Article 61. Science and Technology Development Fund of Ministries, Ministerial-Level Agencies, Government Agencies, Provinces, and Central-Supervised Cities

1. Ministries, ministerial-level agencies, government agencies, People's Committees of provinces shall establish Science and Technology Development Funds to serve their science and technology development needs.

2. The Fund shall be used for purposes as prescribed in Clause 1 of Article 60 of this Law.

3. The Fund shall be formed from initial capital granted once from the State budget allocated for science and technology development of ministries, ministerial-level agencies, government agencies, provinces, and central-supervised cities; annual supplementary capital from the allocation of the State budget for ministry-level and provincial-level science and technology tasks and the results of the Fund’s operations; contributions from enterprises in accordance with the law; voluntary donations from organizations and individuals and other lawful sources.

4. The Minister of Science and Technology shall stipulate the Model Charter for the organization and operation of the Science and Technology Development Fund of ministries, ministerial-level agencies, government agencies, provinces, and central-supervised cities.

Article 62. Science and Technology Development Fund of Organizations and Individuals

1. The State encourages organizations and individuals to establish Science and Technology Development Funds in accordance with the law. The Science and Technology Development Fund of organizations and individuals is a non-profit organization that provides non-repayable grants, low-interest loans, or interest-free loans, and guarantees for loans to serve the science and technology development needs of organizations and individuals.

2. The Science and Technology Development Fund of organizations and individuals shall be formed from capital contributed by the establishing organizations and individuals without originating from the State budget; voluntary donations from organizations and individuals and other lawful sources.

3. The Charter for the organization and operation of the Fund shall be stipulated by the establishing organizations and individuals and must be registered with the competent financial management agency, and simultaneously notify the establishment of the Fund to the local science and technology management agency where the Fund’s main office is located.

Article 63. Science and Technology Development Fund of Enterprises

1. Non-state-owned enterprises are encouraged to establish their own Science and Technology Development Fund or contribute to the Science and Technology Development Fund of their industry or locality and enjoy benefits as prescribed by the Fund.

2. State-owned enterprises must allocate a minimum percentage of their taxable income to establish a Science and Technology Development Fund for the enterprise. The Government shall specify the specific percentage of taxable income to be allocated for establishing the Fund and the management and utilization mechanism of the Science and Technology Development Fund of state-owned enterprises.

3. Enterprises have the right to independently manage and utilize the Fund for its intended purpose and notify the establishment of the Fund to the local science and technology management agency where the enterprise’s main office is located.

Section 4

TAX INCENTIVES AND CREDIT SUPPORT FOR SCIENCE AND TECHNOLOGY ACTIVITIES

Article 64. Tax Policy for Scientific and Technological Activities

The following cases shall enjoy preferential tax policies as prescribed by tax laws:

1. Income from the performance of scientific research and technological development contracts;

2. Income from products produced using new technology applied for the first time in Vietnam; products currently in the experimental production phase;

3. High-tech enterprises, high-tech agricultural enterprises, and certain activities within the high-tech sector;

4. Scientific and technological services;

5. Machinery, equipment, spare parts, materials that are not yet domestically produced and need to be imported for direct use in scientific research and technological development activities;

6. Funding provided by organizations and individuals for scientific research activities; funding received to be used for scientific research activities;

7. Technology transfer in priority sectors transferred to organizations and individuals in economically disadvantaged areas and extremely economically disadvantaged areas;

8. Other cases as specified in tax laws.

Article 65. Credit Policy for Scientific and Technological Activities

1. Organizations and individuals engaged in scientific and technological activities borrowing medium and long-term capital for scientific and technological activities shall enjoy preferential interest rates when borrowing from the National Science and Technology Development Fund and other state funds.

2. Organizations and individuals borrowing capital to invest in scientific and technological activities shall enjoy credit preferences according to the charter of the borrowing fund.

3. Organizations and individuals borrowing from commercial banks to invest in scientific and technological activities, especially for experimental implementation and trial production activities, shall be considered for interest rate support after investment or investment loan guarantees by the Vietnam Development Bank, with a certain percentage of outstanding credit allocated for scientific and technological activities.

4. Programs, topics, and projects in scientific and technological activities directly serving key national socio-economic programs and developing national scientific and technological potential, particularly experimental implementation and trial production projects requiring large capital, shall be prioritized for consideration to use official development assistance funds through the following methods:

a) Non-repayable grants or preferential loans for scientific research and technological development activities;

b) Loans for investment in building scientific and technological capacity or repayable loans for projects applying research results and technological development outcomes.

CHAPTER VII

BUILDING INFRASTRUCTURE AND DEVELOPING THE SCIENTIFIC AND TECHNOLOGICAL MARKET

Article 66. Building Technical Infrastructure to Support Scientific and Technological Development

1. The State shall have a policy of synchronized investment and effective utilization of material and technical facilities of national scientific research and technological institutions; encourage and support the construction of centers for applying advanced scientific and technological progress, high-tech zones, and technology parks; upgrade and build new research centers within higher education institutions to integrate training with scientific research, application, implementation, and commercialization of new technologies.

2. Based on socio-economic development goals and the national strategy for scientific and technological development, the Ministry of Science and Technology shall take the lead in coordinating with relevant ministries and agencies to develop plans for investment in constructing material and technical facilities of important scientific and technological organizations; national key laboratories meeting regional and international standards; national databases on science and technology. The Prime Minister shall approve these investment plans.

3. Ministries, ministerial-level agencies, government agencies, and other central state agencies shall mobilize resources to invest in constructing material and technical facilities of subordinate scientific and technological organizations.

4. Provincial People's Committees shall decide on plans for investment in constructing material and technical facilities of local scientific and technological organizations.

5. The Ministry of Science and Technology shall take the lead in coordinating with relevant agencies to inspect and supervise the use of state budget funds for scientific and technological development at ministries, sectors, and localities, and report periodically to the Prime Minister.

Article 67. Infrastructure Development for High-Tech Development

1. The State shall invest and mobilize social resources to build infrastructure serving high-tech development.

Article 68. Construction of Information Infrastructure, National Databases, and Statistics on Science and Technology

The State shall invest in building information infrastructure, national databases, and statistics on science and technology, encouraging organizations and individuals to sponsor the construction of modern information infrastructure, national databases, and statistics on science and technology to ensure full, accurate, and timely information about domestic and international science and technology activities.

The Government shall specify this provision.

Article 69. Building and Developing the Science and Technology Market

The State shall adopt policies and measures to build and develop the science and technology market as follows:

1. Encourage all voluntary, equal, mutually beneficial technology transfer and technology transfer activities;

2. Improve policies and laws on intellectual property rights and technology transfer;

3. Apply preferential policies for products in the trial production phase using new technologies; products made from new technologies first applied in Vietnam; scientific and technological consulting activities; import and export of high-tech equipment and technology;

4. Implement reward systems for collectives and individuals engaged in innovation, inventions, improvements, rationalization of production, and application of transferred new technologies;

5. The State shall establish, encourage organizations and individuals to establish science and technology service organizations, promotion and support centers for technology transfer activities; technology trading centers and markets.

CHAPTER VIII

INTERNATIONAL INTEGRATION IN SCIENCE AND TECHNOLOGY

Article 70. Principles of International Integration in Science and Technology

1. Actively, proactively, and ensuring independence, sovereignty, national security, equality, and mutual benefit.

2. Diversify and multilateralize cooperation and investment with foreign countries in the field of science and technology.

3. Develop science and technology according to international standards and in line with economic and social development needs, ensuring national defense and security.

4. Selectively absorb the experience of advanced countries, maximize opportunities to enhance research capabilities and technological development, particularly high technology.

Article 71. Activities of International Integration in Science and Technology

1. Linking and participating in science and technology activities with foreign countries, including:

a) Participating in foreign science and technology organizations, science and technology associations;

b) Participating in research, training, consulting, scientific and technological conferences and seminars organized by foreign individuals and organizations, both domestically and internationally;

c) Establishing science and technology organizations with foreign capital in Vietnam and setting up representative offices and branches of Vietnamese science and technology organizations abroad.

2. Building and implementing joint programs and projects on scientific research and technological development within the framework of bilateral, multilateral, regional, sub-regional, and international agreements.

3. Attracting and hiring overseas Vietnamese experts and scientists, foreign experts and scientists to participate in scientific research and technological development programs and projects, human resource training programs in science and technology, and other scientific and technological activities in Vietnam.

4. Organizing exhibitions, forums, technology markets, trading centers, introducing and transferring scientific research results and technological development outcomes, especially advanced and high technologies from other countries and Vietnam.

5. Seeking and transferring advanced foreign technologies to Vietnam.

6. Developing a network of overseas representatives for science and technology in Vietnam.

Article 72. Measures to Promote International Integration in Science and Technology

1. Improve the legal foundation for international integration activities in science and technology.

2. Vigorously participate in, sign, and implement international treaties and agreements on scientific and technological cooperation.

3. Vigorously train, develop, and enhance the professional expertise and foreign language proficiency of the scientific and technological workforce.

4. Establish some research organizations and groups in science and technology that meet regional and international standards.

5. Strengthen infrastructure serving the development of science and technology, particularly the national database system on science and technology, and key laboratory systems that meet regional and international standards. Connect with advanced and modern information networks in the region and internationally for research and training.

6. Improve mechanisms and policies providing incentives and support for organizations and individuals in Vietnam to participate in international integration activities in science and technology.

7. Develop mechanisms and policies to attract overseas Vietnamese and foreign organizations and individuals to contribute to the development of Vietnam's science and technology.

8. Utilize effectively foreign loans and aid invested in science and technology.

Chapter IX

RESPONSIBILITIES FOR THE MANAGEMENT OF SCIENCE AND TECHNOLOGY

Article 73. Responsibilities of the Government

1. Uniformly manage state affairs concerning science and technology nationwide and issue regulatory legal documents, mechanisms, and policies to ensure that the development of science and technology is a top national policy.

2. Direct the issuance and implementation of regulatory legal documents, mechanisms, policies, strategies for the development of science and technology, and planning the network of public scientific and technological organizations.

3. Allocate and decentralize functions in managing state affairs concerning science and technology.

4. Direct international integration activities in science and technology; develop the scientific and technological human resource.

5. Direct propaganda, dissemination, and education on laws related to science and technology; inspect the enforcement of laws on science and technology.

6. Direct inspection, audit, complaint resolution, and handling of violations of laws on science and technology. Annually, the Government reports to the National Assembly on the implementation of policies and measures to develop science and technology; the use of the state budget for investment in science and technology; results of scientific and technological activities.

Article 74. Responsibilities of the Ministry of Science and Technology

The Ministry of Science and Technology is responsible before the Government for managing state affairs concerning science and technology nationwide and has the following responsibilities:

1. Issue or submit to competent authorities for issuance and organize the implementation of regulatory legal documents, mechanisms, policies, strategies, plans for the development of science and technology, and planning the network of public scientific and technological organizations;

2. Build and approve the direction, goals, and tasks of science and technology for five years and annually;

3. Uniformly manage science and technology tasks at all levels; guide the construction and organization of the implementation of science and technology tasks using state budgets at all levels, directly manage and organize the implementation of national-level science and technology tasks; build and organize the implementation of tasks within programs and projects on science and technology that have been approved by the Prime Minister;

4. Manage and use effectively the state budget for investment in science and technology; propose the structure and proportion of the state budget allocation for science and technology as a basis for annual state budget allocation;

5. Appraise the establishment of public scientific and technological organizations according to the delegation of the Government; permit the establishment of scientific and technological organizations with foreign capital; register scientific and technological activities according to authority;

6. Build and manage the information system, national database on science and technology; the statistical system on science and technology and unified statistical criteria nationwide; promote the exploitation and utilization of inventions; develop the market for science and technology;

7. Organize the management of training and professional development in science and technology;

8. Propagate, disseminate, and organize guidance on the implementation of laws on science and technology;

9. International cooperation in science and technology;

10. Inspect or coordinate inspections, and handle complaints and accusations, and deal with violations of laws on science and technology according to authority; based on inspection results and the effectiveness of state budget usage for science and technology by agencies and organizations, propose adjustments to funding allocations for the next phase;

11. Perform other tasks delegated or assigned by the Government.

Article 75. Responsibilities of Ministries and Equivalent Agencies

1. The Ministry of Planning and Investment shall have the following responsibilities:

a) Prepare and submit to the Government the budget for science and technology development investment expenditures as proposed by the Ministry of Science and Technology;

b) Coordinate with the Ministry of Science and Technology in reviewing projects for constructing scientific and technological infrastructure; urge and inspect relevant sectors and levels to ensure that funds for science and technology development are used for their intended purposes and effectively.

2. The Ministry of Finance shall have the following responsibilities:

a) Prepare and submit to the Government the budget for science and technology public expenditure as proposed by the Ministry of Science and Technology regarding the structure and proportion of state budget spending on science and technology;

b) Balance and allocate sufficient funds in a timely manner according to the approved budget;

c) Coordinate with the Ministry of Science and Technology to urge and inspect relevant sectors and levels to ensure that public expenditure for science and technology is used for its intended purposes and effectively.

3. The Ministry of Home Affairs shall have the following responsibilities:

a) Take the lead and coordinate with the Ministry of Science and Technology to develop policies for utilizing and valuing scientific and technological human resources;

b) Take the lead and coordinate with the Ministry of Science and Technology and related agencies to allocate personnel quotas for public scientific and technological organizations.

4. Ministries and Equivalent Agencies shall have the following responsibilities:

a) Implement state management over science and technology and be responsible for scientific and technological activities within their assigned sectors and fields; determine and implement scientific and technological tasks and manage and utilize scientific and technological resources effectively within their assigned sectors and fields; establish specialized bodies to manage science and technology;

b) Coordinate with the Ministry of Science and Technology to draft and promulgate regulations, mechanisms, policies, strategies, plans, and measures to promote science and technology development and technological innovation according to their authority or submit them to competent authorities for promulgation and implementation; build and manage systems of databases, information, and statistics on science and technology;

c) Timely and fully report information and statistical data on science and technology to the Ministry of Science and Technology;

d) Manage and utilize science and technology development investment funds and public expenditure for science and technology for their intended purposes and effectively, in accordance with the characteristics and progress of the science and technology plan.

Article 76. Responsibilities of Provincial People's Committees

Provincial People's Committees shall implement state management over science and technology within their localities according to the delegation of the Government and shall have the following responsibilities:

1. Draft and promulish regulations, mechanisms, policies, strategies, and plans for science and technology development according to their authority or submit them to competent authorities for promulgation and implementation;

2. Ensure that state budget funds for science and technology and other social resources are mainly used for science and technology application at the local level;

3. Receive, organize the application, and evaluate the effectiveness of applying results from science and technology tasks proposed and commissioned by themselves or commissioned after evaluation and acceptance, and annually report the results of application to the Ministry of Science and Technology;

4. Manage and utilize science and technology development investment funds and public expenditure for science and technology for their intended purposes and effectively; ensure adequate and timely allocation of funds suitable to the characteristics and progress of the science and technology plan to achieve local and national science and technology development goals and tasks;

5. Build and manage systems of databases, information, and statistics on science and technology; fully and truthfully report statistical data on science and technology to competent state management authorities;

6. Promote and disseminate laws on science and technology and organize guidance on their implementation;

7. Inspect and examine compliance with laws on science and technology or coordinate with inspections and examinations; resolve complaints and denunciations and handle violations of laws on science and technology according to their authority.

CHAPTER X

REWARDS AND VIOLATION HANDLING

Article 77. State Honorary Titles, Awards, and Prizes for Science and Technology

1. Organizations and individuals who have achievements in the cause of developing science and technology shall be conferred state honorary titles, prizes, and other forms of state awards in accordance with the laws on competition and rewards.

2. Ministries, ministerial-level agencies, government agencies, central-level state agencies, and provincial People's Committees shall examine and confer science and technology prizes to collectives and individuals with outstanding scientific research and technological development projects within their respective management scopes.

3. Domestic organizations and individuals, overseas Vietnamese, international organizations, and foreign organizations and individuals may establish and confer science and technology prizes to encourage the development of science and technology in Vietnam in accordance with the law.

Clause 4. The Government shall specify this provision.

Article 78. Accepting Honorary Titles and Prizes from Foreign Organizations and Individuals, International Organizations

Scientific and technological organizations and individuals engaged in scientific and technological activities may accept honorary titles and prizes for science and technology conferred by foreign organizations and individuals, and international organizations in compliance with Vietnamese law.

Article 79. Handling Violations

1. Individuals who violate the law on science and technology shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation; if damage is caused, they must compensate according to the law.

2. Organizations that violate the law on science and technology shall be subject to administrative penalties depending on the nature and severity of the violation; if damage is caused, they must compensate according to the law.

CHAPTER XI

IMPLEMENTING PROVISIONS

Article 80. Effective Date

This Law takes effect from January 1, 2014.

The Law on Science and Technology No. 21/2000/QH10 ceases to be effective from the date this Law takes effect.

Article 81. Detailed Provisions and Guidance for Implementation

The Government and other competent state agencies shall provide detailed regulations and guidance for implementation of the provisions assigned in this Law.

This Law was adopted by the National Assembly of the Socialist Republic of Vietnam, the 13th term, fifth session, on June 18, 2013.