Circular No. 40/2020/TT-BTTTT stipulates criteria for determining domestic information technology products and services that are prioritized for investment, leasing, and procurement.

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[ELECTRONIC GOVERNMENT INFORMATION COMMUNICATION 111' STATE COUNCIL

MINISTRY OF INFORMATION AND COMMUNICATIONS SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness

No.: 40/2020/TT-BTTTT Hanoi, October 10th 2020

— _x , ELECTRONIC GOVERNMENT INFORMATION COMMUNICATION

OFFICE OF THE STATE COUNCIL CIRCULAR A- Time:

OFFICIAL DOCUMENT NO. 1 ...

Regulations on criteria for determining domestic information technology products and services to be prioritized for investment, leasing, and procurement information-

Time .9 ■■ domestic production is prioritized for investment, leasing, and procurement

Respected,

Pursuant to the Law on Information Technology dated June 29, 2006;

Pursuant to the Law on Bidding dated November 26, 2013;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to Decree No. 63/2014/NĐ-CP dated June 26, 2014 of the Government detailing implementation of certain provisions of the Bidding Law regarding selection of contractors;

Pursuant to Decree No. 73/2019/NĐ-CP dated September 5, 2019 of the Government on management of investment in application of information technology using state budget funds;

Pursuant to Decree No. 40/2020/NĐ-CP dated April 6, 2020 of the Government detailing implementation of certain provisions of the Investment Law;

Pursuant to Decree No. 17/2017/NĐ-CP dated February 17, 2017 of the Government on functions, tasks, powers, and organizational structure of the Ministry of Information and Communications;

At the proposal of the Director of the Department of Information Technology;

The Minister of Information and Communications issues this Circular to regulate criteria for determining domestic information technology products and services to be prioritized for investment, leasing, and procurement (hereinafter referred to as prioritized products and services).

Article 1. Scope of Regulation

1. This Circular regulates criteria for determining domestic information technology products and services to be prioritized for investment, leasing, and procurement (hereinafter referred to as prioritized products and services).

2. Prioritization shall be implemented in the following activities applying information technology:

1. Projects investing in and procuring information technology applications using development investment funds from state budget sources;

Activities leasing and procuring information technology applications using regular expenditure funds from state budget sources;

2. Information technology application projects using mixed funding sources where state budget capital accounts for 30% or more or is the largest portion of the total project investment.

3. This Circular does not apply to:

3. Activities applying information technology that are classified as state secrets;

1. Activities applying information technology as stipulated in Clause 2 of Article 1 of this Circular carried out by Vietnamese representative agencies abroad in accordance with specific regulations of the Government based on proposals and recommendations of the relevant agencies, consistent with the nature of the project and the laws of the host country;

2. Information technology application projects invested in under public-private partnership models in accordance with laws on public-private partnerships;

3. Tender packages within the scope of commitments on government procurement in international agreements.

4. This Circular applies to agencies, organizations, and individuals when implementing information technology application activities as stipulated in Clause 2 of Article 1 of this Circular to invest in, lease, and procure information technology products and services.

Article 2. Applicability

1. It is encouraged for organizations and individuals not falling within the scope specified in Clause 1 of Article 34 to apply the provisions of this Circular when investing in, leasing, and procuring information technology products and services.

2. Information technology products include hardware products, software products, and digital content products.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. Information technology services include market-available information technology services and non-market-available information technology services as prescribed in Clause 3 and Clause 4 of Article 3 of Decree No. 73/2019/NĐ-CP dated September 5, 2019 of the Government on management of investment in application of information technology using state budget funds.

2. Information technology services include information technology services available on the market and information technology services not available on the market as prescribed in Clause 3 and Clause 4 of Article 3 of Decree No. 73/2019/NĐ-CP dated September 5, 2019 of the Government on management of investment in application of information technology using state budget funds.

Article 4. Products and services to be prioritized

Products and services to be prioritized fall under one of the following cases:

1. Products and services that meet the general criteria specified in Article 5 and specific criteria corresponding to each type of product and service as stipulated in Articles 6, 7, 8, and 9 of this Circular, and are included in the list of information technology products and services to be prioritized published by the Ministry of Information and Communications in accordance with the regulations.

2. Products and services produced or provided by individuals who are Vietnamese citizens and meet the criteria specified in Article 5 of this Circular shall proactively consider cooperation with Vietnamese organizations and enterprises that meet the quality standards and security requirements for such products and services as stipulated in Articles 6, 7, 8, and 9 of this Circular.

Article 5. General criteria for prioritized products and services

Prioritized products and services must meet the following general criteria:

1. The domestic production cost must comply with preferential provisions under the laws on public procurement.

2. Technical documentation and user manuals must be available in Vietnamese.

3. The supplier must commit to providing technical support, warranty, maintenance, upgrades, and post-sales services.

Article 6. Specific criteria for prioritized hardware products

The product must simultaneously meet the following criteria:

1. The functions and technical requirements of the product must be compatible with business needs or state agency regulations (if applicable).

2. It must be created, designed, or manufactured in Vietnam by organizations, enterprises, or individuals. Creativity and design are evidenced through patents, utility models, industrial designs, or other documents proving creativity and design as specified in Appendix II attached to this Circular.

3. Criteria related to product quality and security standards

1. Produced by Vietnamese organizations or enterprises holding a Certificate of Conformity to the ISO 9001 Quality Management System standard issued by a registered certification body or equivalent.

2. The product must ensure information security in accordance with the laws on information security.

4. The ratio of research and development costs to total revenue from the product over the last three years must be at least 1%.

Article 7. Specific criteria for prioritized software products

The product must simultaneously meet the following criteria:

1. The functions and technical requirements of the product must be compatible with business needs or state agency regulations (if applicable).

2. At least one of the two stages: Requirement definition, Analysis and Design, as specified in Clause 1 and Clause 2 of Article 3 of Circular No. 13/2020/TT-BTTTT dated July 3, 2020, of the Ministry of Information and Communications, must be performed by Vietnamese organizations, enterprises, or individuals.

3. The product must be registered with a Copyright Registration Certificate held by a Vietnamese citizen and protected under Vietnamese law.

4. Criteria related to product quality and security standards

1. The product must be produced by Vietnamese organizations or enterprises holding a Certificate of Conformity to the ISO 9001 Quality Management System standard issued by a registered certification body or a Certificate for Software Production Activities at CMMI Level 3 or higher or equivalent.

2. The product must ensure information security in accordance with the laws on information security, or it must be produced and operated by a supplier holding a Certificate of Conformity to the ISO/IEC 27001 standard issued by a registered certification body or equivalent.

5. The ratio of research and development costs to total revenue from the product over the last three years must be at least 3%.

6. For software products provided as a service (with accompanying services), such software products must also meet the additional criteria specified in Article 9 of this Circular.

Article 8. Specific criteria for prioritized digital information content products

The product must simultaneously meet the following criteria:

1. Produced in Vietnam by organizations, enterprises, or individuals from Vietnam.

2. Criteria related to product quality and security standards

1. Produced by Vietnamese organizations or enterprises with a Certificate of Conformity to the ISO 9001 management system standard issued by a registered certification organization received or equivalent.

2. The product must ensure information security in accordance with the laws on information security.

3. The ratio of research and development costs to total revenue from the product over the last three years must be at least 3%.

Article 9. Specific criteria for prioritized information technology services

The service must meet the following criteria simultaneously:

1. Provided by organizations, enterprises, or individuals from Vietnam.

2. Criteria on quality standards and security of the service

1. Produced by Vietnamese organizations or enterprises with a Certificate of Conformity to the ISO 9001 management system standard or ISO/IEC 27001 standard issued by a registered certification organization or equivalent;

2. The server system providing the service (if applicable) must be located in Vietnam. For cloud computing services, they must meet the set criteria and technical specifications according to the guidelines of the Ministry of Information and Communications;

3. Measures to ensure the safety and confidentiality of customer information for services related to customer data storage and processing. For cybersecurity services, they shall comply with the provisions of the Cybersecurity Law.

3. For information technology services available on the market: the service has been deployed and provided to at least three agencies or organizations.

4. The ratio of expenditure on research and development of the service to the total revenue of the service over the last three years must reach 3% or more.

Article 10. Provisions on implementing priorities

1. When agencies and organizations apply information technology according to Clause 2 of Article 1 of this Circular to invest in, lease, or purchase prioritized information technology products and services under Article 4 of this Circular, they must:

1. Incorporate the criteria specified in Article 5 and corresponding provisions in Articles 6, 7, 8, and 9 of this Circular into appropriate sections of documents such as Feasibility Study Reports, Basic Design, Detailed Design, and Leasing Plans;

2. Not include requirements, conditions, or features that designate foreign information technology products or services, or could lead to the exclusion of prioritized products or services in documents such as Feasibility Study Reports, Basic Design, Detailed Design, and Leasing Plans.

2. In cases where prioritized products or services are not selected for investment, leasing, or purchasing, the agency or organization must provide explanations and clearly state the reasons. The explanations should include: an explanation of the necessity and specific requirements that the prioritized products or services cannot meet.

Article 11. Announcement of prioritized products and services

1. Organizations, enterprises, or individuals with prioritized products or services

1. Shall proactively evaluate, announce, and update information about prioritized products or services on mass media, their organization's or enterprise's website according to the information stipulated in Appendix I attached to this Circular;

2. Send notifications to the Department of Information and Communications (hereinafter referred to as the Department) in the business registration area of the enterprise in writing or through the Department's online portal;

3. Ensure the quality of prioritized products or services as announced throughout the provision period and bear full responsibility for the accuracy of the information related to prioritized products or services announced.

2. The Department of Information and Communications is responsible for

1. Receiving, examining the validity and completeness of the information announced by enterprises regarding prioritized products or services, and announcing such information on the Department's online portal;

2. Based on receiving complete information from enterprises, the Department will compile and report on the prioritized products or services of enterprises to the Ministry of Information and Communications according to the model specified in Appendix II attached to this Circular on a regular basis every six months;

3. Conducting evaluations, post-inspections, and handling according to its authority for prioritized products or services announced by enterprises that do not comply with regulations.

3. The Ministry of Information and Communications is responsible for

1. Updating and announcing the list of prioritized products or services and related information based on the request letter from the Department according to the provisions in Appendix III attached to this Circular and posting it on the online portal at the address www.mic.gov.vn to be implemented nationwide;

2. In necessary cases, the Ministry of Information and Communications will organize inspections to verify compliance with criteria for prioritized products or services announced by organizations or enterprises; publish inspection results on the online portal at the address www.mic.gov.vn. If prioritized products or services announced are found to be non-compliant, the Ministry of Information and Communications will handle them according to the law.

Article 12. Implementation Organization

1. The Department of Information Technology (Ministry of Information and Communications) shall take the lead and coordinate with relevant agencies to guide the implementation of this Circular.

2. Specialized units in information technology (including specialized units in information technology and other specialized units) of ministries, ministerial-level agencies, government agencies, and provincial Departments of Information and Communications have the responsibility to:

1. Organize guidance, dissemination, and supervision of agencies and units under their ministries, sectors, or localities to implement the provisions of this Circular;

2. Propose and be responsible for their professional opinions on matters related to prioritized products or services when assigned to review Feasibility Study Reports, Basic Design, Detailed Design, and Leasing Plans for information technology services in information technology application activities funded by the state budget of agencies and units under their ministries, sectors, or localities;

3. Compile information on the implementation of investment, leasing, and procurement of prioritized products or services according to the model in Appendix IV attached to this Circular (aggregated data from December 15 of the previous year to December 14 of the year of compilation) and submit it to the Ministry of Information and Communications (Department of Information Technology) before March 31 each year.

Article 13. Transitional Provisions

1. Activities applying information technology that include investment items and procurement of information technology products and services meeting the criteria and announced in accordance with Circular No. 47/2016/TT-BTTTT dated December 26, 2016 of the Minister of Information and Communications on detailed provisions for prioritizing investment and procurement of domestically produced information technology products and services using state budget funds approved before this Circular takes effect shall continue to be implemented.

2. For information technology products and services already published on the electronic portal of the Ministry of Information and Communications in accordance with Circular No. 47/2016/TT-BTTTT, organizations and enterprises shall proactively update and supplement information in compliance with this Circular.

Article 14. Effectiveness and responsibility for implementation • • •

1. This Circular takes effect from February 15, 2021.

2. This Circular replaces Circular No. 47/2016/TT-BTTTT dated December 26, 2016 of the Minister of Information and Communications detailing the priority for investment and procurement of domestically produced information technology products and services using state budget funds.

3. The Heads of the Office, Directors of the Department of Information Technology, Provincial Departments of Information and Communications under the central government, and relevant agencies, organizations, enterprises, and individuals are responsible for implementing this Circular.

4. During the implementation process, if there are any difficulties, please report them to the Ministry of Information and Communications (Department of Information Technology) for timely resolution./.

Place of Receipt: "RÔ 'TRĩlÝYỉVd

• Prime Minister, Deputy Prime Ministers (for comments); • u Vr

• Central Party Office and Party Committees; y

• Office of the General Secretary;

• Office of the National Assembly; / >

• Office of the President;

• Ministries, ministerial-level agencies, and government agencies; Scụ /

• Supreme People's Procuracy;

• Supreme People's Court;

• Provincial People's Committees under the central government;

• People's Committees of provinces and centrally governed cities;

• Specialized units on information technology of ministries and ministerial-level agencies, Nguyen Manh Hung government agencies;

• Provincial Departments of Information and Communications;

• Official Gazette, Government Electronic Portal;

• Agency for Legal Review (Ministry of Justice);

• Ministry of Information and Communications: Ministers and Deputy Ministers, agencies and units under the Ministry, Ministry’s electronic portal;

• To be filed: Office, Information Technology.

Appendix I

INFORMATION ON PRODUCTS AND SERVICES MEETING THE CRITERIA FOR PRIORITY INVESTMENT AND PROCUREMENT
(Annexed to Circular No. 249/2020/TT-BTTTT dated October 10, 2020)

I. INFORMATION OF ENTERPRISE/INDIVIDUAL
of the Minister of Information and Communications

1. For Enterprises

Date of Announcement: Day... Month... Year...

MODEL DOCUMENT FROM PROVINCE DEPARTMENT OF INFORMATION AND COMMUNICATIONS

SUBMITTED TO MINISTRY OF INFORMATION AND COMMUNICATIONS ON PRIORITY PRODUCTS AND SERVICES
(Annexed to Circular No. 249/2020/TT-BTTTT dated October 10, 2020)
(Name of Province Department of Information and Communication)

SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness¹ [Date]
of the Minister of Information and Communications

Dear: Ministry of Information and Communications (Department of Information Technology)Pursuant to Decree No. 73/2019/NĐ-CP dated September 5, 2019 of the Government on management of investment in application of information technology using state budget funds;Pursuant to Circular No. /2020/TT-BTTTT dated [month]/[day], [year] of the Minister of Information and Communications on criteria for determining domestic information technology products and services eligible for priority investment, leasing, and procurement;

After reviewing and inspecting the products and services submitted by enterprises according to the criteria stipulated in Circular No. /2020/TT-BTTTT dated [month]/[day], [year] of the Minister of Information and Communications, the Department of Information and Communications [province/city] submits to the Ministry of Information and Communications a list of products and services meeting the criteria for priority investment, leasing, and procurement when using state budget funds for investment, leasing, and procurement as follows:

Number:

Respectfully submitted to: Ministry of Information and Communications (Department of Information Technology)

Product/Service

Enterprise

Detailed information about each priority product/service is provided in the annex attached to this letter.

A. GENERAL CRITERIA AND RELATED INFORMATION

Complying with cost production regulations in Vietnam for preferential treatment under laws on bidding

(Signature, full name, stamp)

Appendix

Technical documentation and user guide in Vietnamese

□ Yes □ No

Commitment to technical support, warranty, maintenance, upgrade, and post-sales service from the supplier

1. Key features and technical specifications of the product, quality level

□ <25% [□>25%

2. (service-level agreement)

of the service

3. Market launch date

4. Awards and certifications achieved by the product/service Other related information SPECIFIC CRITERIA

5. For hardware and electronic products

6. Product functions and technical requirements comply with business needs or regulations/guidelines of state agencies - Column (7): Land area in land allocation decisions, lease decisions, or documents of the competent authority or actual land area managed and used (applicable to assets that are buildings and land).

7. (if applicable, list functions and features that meet the relevant regulations and standards) - Column (7): Land area in land allocation decisions, lease decisions, or documents of the competent authority or actual land area managed and used (applicable to assets that are buildings and land).

8. Designed, created, or manufactured in Vietnam by Vietnamese organizations, enterprises, or individuals.

1. For hardware and electronic products

1. The functions and technical requirements of the product comply with business requirements or regulations and guidelines of state agencies (if applicable, list the functions and features that meet the relevant texts and regulations that the product satisfies).

2. Created, designed, or produced in Vietnam by organizations, enterprises, or individuals.

(provide one of the following documents or certificates: Patent Certificate for Invention, Patent Certificate for Utility Solution, Patent Certificate for Industrial Design; Certificate of Registration for Integrated Circuit Layout Design, hardware design documentation, software control design, mechanical design, electronic design, decision on acceptance of a valid application (for intellectual property rights); contract or decision of the competent authority (for products that are results of scientific and technological projects); or prove that the domestic production cost ratio of the product reaches 25% or more as stipulated in the Public Procurement Law)

3. Criteria for standards, quality, safety, and security of the product:

a) Produced by Vietnamese organizations or enterprises holding a Certificate of Conformity to ISO 9001 Quality Management System Standards issued by registered certification bodies or equivalent (listed in the table below):

b) The product must ensure information security in accordance with the provisions of the Law on Information Security.

4. The ratio of expenditure on research and development (R&D) of the product to the total revenue of the enterprise in the last three years must reach 1% or more (clearly state the figures for the last three years, including the contents calculated as R&D costs such as technological improvements, machinery upgrades, production method improvements, raw material replacements, product improvements, and new product designs or other R&D-related expenses).

2. For software products

1. The functions and technical requirements of the product comply with business requirements or regulations and guidelines of state agencies (if applicable, list the functions and features consistent with the text and regulations that the product meets)

2. Performed by Vietnamese organizations, enterprises, or individuals at least one of the following two stages: Requirement Determination, Analysis and Design as specified in Clause 1 and Clause 2, Article 3 of Circular No. 13/2020/TT-BTTTT dated July 3, 2020 of the Ministry of Information and Communications (documents proving the provisions of Circular 13/2020/TT-BTTTT)

3. The product is granted a Copyright Registration Certificate by a Vietnamese individual and protected under Vietnamese law (number, date of issuance of the Certificate)

4. Criteria related to product quality and security standards

a) Products produced by Vietnamese organizations or enterprises holding a Certificate of Conformity to ISO 9001 Quality Management System Standards issued by registered certification bodies or having a Certificate for Software Production Activities

(clearly state the figures for the last three years, including the contents calculated as R&D costs such as technological improvements, machinery upgrades, production method improvements, raw material replacements, product improvements, and new product designs or other R&D-related expenses)

5. For software products provided as services (with accompanying services), the software product must also meet the criteria specified in Article 9 of this Circular. m. For digital content products

6. Produced in Vietnam by Vietnamese organizations, enterprises, or individuals

a) Produced by Vietnamese organizations or enterprises holding a Certificate of Conformity to ISO 9001 Quality Management System Standards issued by registered certification bodies or equivalent

1. Number •

2. Criteria related to product quality and security standards

(clearly state the figures for the last three years, including the contents calculated as R&D costs such as technological improvements, machinery upgrades, production method improvements, raw material replacements, product improvements, and new product designs or other R&D-related expenses). (listed in the table below):

b) The product must ensure information security in accordance with the provisions of the Law on Information Security.

3. For software products provided as services (with accompanying services), the software product must also meet the criteria specified in Article 9 of this Circular. Produced by Vietnamese organizations or enterprises holding a Certificate of Conformity to ISO 9001 Quality Management System Standards or ISO/IEC 27001 Standards issued by registered certification bodies or equivalent

(listed in the table below):

1. Provided by organizations, enterprises, or individuals from Vietnam.

2. Criteria on quality standards and security of the service

1. TCVNISO/IEC 27001 ISO/IEC 27001

2. (clearly state the figures for the last three years, including the contents calculated as R&D costs such as technological improvements, machinery upgrades, service implementation methods, or other R&D-related expenses).

3. INFORMATION ON THE PUBLICATION OF THE LIST OF PRODUCTS AND SERVICES

3. For information technology services available on the market: the service has been deployed and provided to at least three agencies or organizations.

4. ELIGIBLE FOR PREFERENCE AND RELATED INFORMATION (Annexed to Circular No. 40/2020/TT-BTTTT dated October 2020

Appendix III

Pursuant to Decree No. 73/2019/NĐ-CP dated September 5, 2019 of the Government on management of investment in the application of information technology using state budget funds;
Pursuant to Decree No. 17/2017/NĐ-CP dated February 17, 2017 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Information and Communications;
Pursuant to the provisions of Circular No. /2020/TT-BTTTT dated [month] [year] of the Minister of the Ministry of Information and Communications;
of the Minister of Information and Communications

The Minister of the Ministry of Information and Communications hereby publishes the list of products meeting the criteria for preferential investment, leasing, and procurement in agencies and organizations when using state budget funds for investment, leasing, and procurement.

Product/Service

COMBINED SITUATION OF INVESTMENT, LEASING, AND PROCUREMENT OF PREFERRED PRODUCTS AND SERVICES

At the proposal of the Director of the Department of Information Technology;

(Annexed to Circular No. /2020/TT-BTTTT dated [day] [month] [year] of the Minister of the Ministry of Information and Communications)

REGULATIONS ON THE CERTIFICATE DESIGN FOR OUTSTANDING RURAL INDUSTRIAL PRODUCTS

EXPLANATION OF INVESTMENT, LEASING, AND PROCUREMENT OF PREFERRED INFORMATION TECHNOLOGY PRODUCTS AND SERVICES USING STATE BUDGET FUNDS
(Adopted along with Circular No./2020/TT-BTTTT dated October 10, 2020 of the Minister of Information and Communications)

Name of agency or organization: ...

1. JUSTIFICATION FOR INVESTMENT, LEASE, PURCHASE OF INFORMATION TECHNOLOGY PRODUCTS AND SERVICES TO BE PRIORITY USED WITH STATE BUDGET FUNDS

2. SUMMARY OF IMPLEMENTATION SITUATION OF INVESTMENT, LEASING, PURCHASE OF PREFERRED PRODUCTS AND SERVICES 1. Summary of implementation situation of investment, leasing, purchase of software and hardware products