Decree No. 63/2020/ND-CP on national security industry

DECREE

Regulations on National Security Industry

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on People's Police dated November 20, 2018;

The Government promulgates this Decree on regulations regarding entry, exit, and residence policies for foreigners at the International Financial Center in Vietnam.

The Government issues a Decree to regulate the national security industry.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed implementation of Article 34 of the People's Public Security Law 2018 regarding the national security industry, including principles for building and developing the national security industry; tasks, organization, and activities of the national security industry; special policies, mechanisms, and programs and plans for building and developing the national security industry; international cooperation on the national security industry; state management over the national security industry; authorities and responsibilities of ministries, ministerial-level agencies, provincial People's Committees under the central government, and related agencies and organizations in managing and implementing tasks for building and developing the national security industry.

Article 2. Applicability

This Decree applies to agencies, organizations, and individuals in Vietnam, and foreign organizations and individuals participating in activities related to the national security industry of Vietnam.

Article 3. Explanation of Terms

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

1. Developing the national security industry involves investing resources and applying scientific, technological, and technical achievements to develop the country's potential in researching, manufacturing, and producing specialized and dual-use national security products.

2. Other law enforcement forces refer to forces outside the People's Public Security Force that are authorized by law to use certain types of weapons, explosives, support tools, means, equipment, and technical materials to serve the tasks of safeguarding national security, maintaining public order, and social safety.

3. Specialized national security products are items with specific features serving secret operational work, protecting national security, maintaining public order and social safety, combating crime, and violations of the law by the People's Public Security Force and other law enforcement forces.

4. Dual-use national security products are items serving the work of the People's Public Security Force, other law enforcement forces, and legitimate societal needs.

Article 4. Principles for Building and Developing the National Security Industry

1. Closely align with the objectives, tasks, and strategies for safeguarding national security, maintaining public order, and social safety, meeting the requirements for equipping the People's Public Security Force and other law enforcement forces.

2. Closely integrate and maximize the capabilities of the national industry and defense industry; avoid redundant investments, where civilian industries and the defense industry can produce, national security industries should not invest, and vice versa. Prioritize products with advanced scientific and technological levels, ensuring secrecy, safety, effectiveness, and environmental protection.

3. Closely combine economic and social development with national defense and security assurance, based on leveraging internal strength combined with expanding international cooperation; ensuring state secrets about national security and defense.

4. Adhere to legal regulations on the production, management, and business of products such as weapons, explosives, and support tools; management of state assets, and legal provisions concerning conditional business sectors related to national security and public order, and Vietnam's commitments regarding disarmament, non-proliferation of weapons, and international treaties to which Vietnam is a party.

Article 5. Criteria for security industry products and list of security industry products

1. Criteria for specialized security industry products include:

a) Products with specific features suitable for the nature, characteristics, and operational requirements of the People's Public Security Forces and other law enforcement agencies;

b) Products ordered, planned, or assigned production and supply tasks by state authorities in accordance with the law;

c) Products whose users and usage scenarios are specifically regulated by law.

2. Criteria for dual-use security industry products include:

a) Products serving security assurance, safety, fire prevention, explosion prevention, rescue operations of the People's Public Security Forces, other law enforcement agencies, and legitimate social needs;

b) Products ordered, planned, assigned production and supply tasks, or tendered by state authorities in accordance with the law.

3. The list of security industry products shall be issued together with this Decree.

Article 6. Prohibited Acts

1. Disclosing state secrets about programs, plans for building and developing the security industry, scientific and technological results related to the security industry, and production tasks serving the work and combat of the People's Public Security Forces.

2. Illegally exploiting and using equipment and assets allocated by the State to security industry facilities.

3. Illegally purchasing, selling, storing, transporting, and using specialized security industry products.

4. Illegally using and transferring information, documents, inventions, processes, and technological secrets belonging to state secrets about the security industry.

5. Exploiting positions and powers to commit illegal acts in security industry activities.

Chapter II

ORGANIZATION AND ACTIVITIES OF THE SECURITY INDUSTRY

Article 7. Organization and Tasks of Security Industry Facilities

1. The State invests or participates in investing in the construction of security industry facilities, with the Ministry of Public Security representing the owner. Based on the scale and nature of the security industry facility's operations, the Minister of Public Security decides or proposes the competent authority to decide on the organizational form, structure, and operational mechanism of each security industry facility.

2. Tasks of security industry facilities

a) Researching, producing, repairing, and developing weapons, explosives, support tools, means, technical equipment, and other products serving national security protection, maintaining public order and safety, combating crime, law violations, and building a revolutionary, regular, elite, and increasingly modern People's Public Security Force;

b) Researching, producing, repairing, supplying, developing, and trading dual-use security industry products serving national security protection, maintaining public order and safety, combating crime, law violations of the People's Public Security Forces, and meeting legitimate social needs.

Article 8. System of Security Industry Facilities

1. Research facilities; application and experimental science and technology facilities shall be organized as public service units or science and technology enterprises within the People's Public Security Force.

2. Production, manufacturing, repair, and assembly facilities for specialized and dual-use security industry products invested in by the State shall be organized as public service units or enterprises within the People's Public Security Force.

3. Research, production, and repair facilities for specialized and dual-use security industry products shall be established based on cooperation between the security industry managed by the Ministry of Public Security and the defense industry managed by the Ministry of National Defense.

4. Research, production, and repair facilities for specialized and dual-use security industry products shall be established based on cooperation and joint ventures between enterprises within the People's Public Security Force and other enterprises, where the State holds more than 50% of the charter capital.

Article 9. Activities of Security Industry Facilities

1. Research, production, repair, and development of specialized security industry products under the ordering mechanism, plan assignment, or task assignment as prescribed by the State and the Ministry of Public Security.

2. Cooperate, form joint ventures, and associate with organizations and individuals both domestically and internationally to research, produce, and repair specialized and dual-use security industry products in accordance with the law.

3. Organize technology transfer, decode technology, train, and instruct human resources for the purpose of developing the security industry.

4. Prepare conditions for research, production, repair, and development of new products and requirements for reserves and contingencies for sudden security and public order situations.

Article 10. International Cooperation in the Security Industry

1. Establish, consolidate, and develop cooperative relations with foreign governments, organizations, and individuals.

2. Exchange technical information and transfer technology to serve the construction and development of the security industry.

3. Cooperate, form joint ventures, associate, and invest in production and product development; research and apply, implement production to serve the security industry; promote trade and export security industry products.

4. Train human resources for the security industry.

Chapter III

SPECIAL POLICIES, MECHANISMS, AND PROGRAMS,

PLANS FOR THE CONSTRUCTION AND DEVELOPMENT OF THE SECURITY INDUSTRY

Article 11. Policies for Security Industry Facilities

1. Special policies applicable to security industry facilities invested entirely by the State, directly serving national security protection tasks, ensuring social order and safety, combating crime and law violations, and building the People's Public Security force, include:

a) The State ensures resources for infrastructure construction, investment in research, production, and repair of specialized security industry products, and the development of high-quality dual-use technologies to serve national security protection tasks, ensuring social order and safety, combating crime and law violations, and building the People's Public Security force.

b) Application of preferential policies and support regarding taxes and fees, and special mechanisms and policies on investment and construction according to the law.

c) Enjoyment of preferential policies and support according to the law when investing in new material production, high-tech products; research and development; technology transfer; exported products.

d) Utilization of assigned resources to engage in supplementary business activities outside the production and supply plans for security products and services or the execution of security tasks provided that the following conditions are met: permission in writing from the competent authority; supplementary business activities have the purpose of supporting security assurance tasks or enhancing capacity and efficiency after completing security product and service production and supply or executing security tasks; no impact on the ability and conditions for security product and service production and supply or executing security tasks; separate accounting for supplementary business activities and compliance with tax obligations according to the law.

e) Utilization of preferential loans, credit guaranteed by the State, and other financial sources as prescribed for the production of security industry products supplied to local public security units on a pre-supply, post-payment basis, consistent with annual procurement budgets of local public security units.

2. Policies for workers at security industry facilities, including:

a) Enjoyment of wage, social insurance, health insurance, labor protection, work injury, occupational disease benefits, and other preferential benefits as prescribed by law.

b) Training, upgrading, and improving professional knowledge and skills at police and non-police schools both domestically and abroad.

Article 12. Mechanism for ordering, allocating plans, assigning tasks, and entrusting importation of goods for security purposes

1. Annually, the Minister of Public Security decides on ordering, allocating plans, assigning tasks, and entrusting importation of goods for security purposes to security industry establishments that ensure conditions and capabilities as prescribed by law.

2. The mechanism for ordering, allocating plans, assigning tasks, and entrusting importation of goods for security purposes shall be implemented according to the regulations of the Minister of Public Security.

Article 13. Import policy and reserve of technical materials for the security industry

1. The import tax policy for production lines, equipment, technology, raw materials, and technical materials serving the security industry and the reserve of technical materials to meet security requirements and tasks shall be carried out in accordance with the laws on export tax and import tax.

2. The Prime Minister decides the list of technical materials for importation to serve the security industry.

Article 14. Mechanism and policies for scientific research, development, and transfer of technology to serve the security industry

1. Domestic and foreign organizations and individuals participating in advanced scientific research, development, and transfer of technology to serve the construction and development of the security industry shall enjoy incentive mechanisms and preferential policies as prescribed by law.

2. Organizations and individuals conducting scientific research and developing the security industry shall be prioritized in registering basic-level, ministry-level, and state-level scientific projects according to current regulations.

Article 15. Sources of investment capital for the development of the security industry

1. Sources of investment capital for the development of the security industry include:

a) State budget prioritizing investment in security industry establishments according to approved programs and plans;

b) Investment development fund for security industry establishments;

c) Investment, cooperation, joint ventures, joint operations, sponsorship, and support from domestic and foreign organizations and individuals participating in the construction and development of the security industry;

d) National technological innovation fund for investment in research and development, application of new technologies in the construction and development of the security industry;

e) State credit investment development capital; capital borrowed from state-guaranteed credit sources; ODA capital; other credit capital sources as prescribed.

2. The State prioritizes ensuring the budget for researching, manufacturing, producing, and developing weapons, explosives, support tools, means, equipment, technical materials, and other means serving police work.

3. Management and use of investment capital for the development of the security industry must be carried out according to plans and legal regulations.

Article 16. Land for the security industry

1. Land for constructing, planning, and developing security industry establishments includes security land and land designated for developing industrial zones as prescribed by the Land Law.

2. Enterprises under the Ministry of Public Security managing and operating security industry establishments implement land management and usage systems and are exempted or reduced from land rental fees, land use fees, and land use taxes according to the Land Law and guiding documents for its implementation.

Article 17. Human Resources for National Security Industry

1. Human resources serving at national security industry facilities include:

a) Individuals with the ability and professional qualifications suitable for the needs of employment, meeting the standards of character, ethics, health, having the willingness to be recruited or transferred by competent authorities;

b) Officers, non-commissioned officers, soldiers, and workers in the People's Public Security who are transferred or appointed to leadership, management positions, or work at national security industry facilities according to regulations on organizational division and classification within the Ministry of Public Security;

c) Contract laborers.

2. The Ministry of Public Security shall have policies to encourage and attract high-quality human resources, experts, and scientists to participate in developing the national security industry through recruitment, transfer of work assignments, or through commissioned research and development projects for the national security industry.

Article 18. Programs and Plans for Building and Developing the National Security Industry

1. Programs and plans for building and developing the national security industry must comply with the principles stipulated in Article 4 of this Decree and meet the following requirements:

a) Exploiting and utilizing effectively all potential and resources of the national industry and defense industry to build and develop the national security industry; ensuring that weapons, support tools, means, equipment, and technical materials become increasingly advanced and modern;

b) Ensuring balance, synchronization, and reasonable scale, being appropriately arranged in strategic areas;

c) Being consistent with planning, programs, and goals for national defense and security development and economic and social development of the country.

2. The basis for formulating programs and plans for building and developing the national security industry includes:

a) Tasks of protecting national security, maintaining public order and safety, and tasks of developing the economy and society of the country;

b) Strategies for providing logistics and technical support for the People's Public Security forces;

c) Planning, programs, and plans for developing the national industry and defense industry, and the capacity to balance state investment resources for building and developing the national defense and security industries.

3. Contents of programs and plans for building and developing the national security industry include:

a) Determining the objectives, scope, and tasks of the program, plan, and key projects;

b) Organizing the system of national security industry facilities;

c) Balancing resources, conditions for assurance, and implementation solutions.

Chapter IV

RESPONSIBILITIES FOR STATE MANAGEMENT AND IMPLEMENTATION OF TASKS TO DEVELOP THE NATIONAL SECURITY INDUSTRY

Article 19. Responsibilities of the Ministry of Public Security

1. To take the lead and coordinate with ministries, agencies at the ministerial level, provincial people's committees under the central government to assist the Government in implementing state management over the national security industry. Issuing or submitting to competent authorities for issuance and organizing the implementation of legal normative documents on the national security industry.

2. To take the lead and coordinate with relevant ministries and agencies to build and submit to the Prime Minister for approval and implementation of programs and plans for investment and development of the national security industry. Submitting to competent authorities for approval or approving within their authority the investment proposals and decisions for investment projects to develop the national security industry in accordance with laws on public investment.

3. To take the lead and coordinate with the Ministry of National Defense, the Ministry of Industry and Trade, and relevant agencies to issue specific lists of national security industry products attached to this Decree.

4. To take the lead and coordinate with the Ministry of National Defense, the Ministry of Industry and Trade, and relevant agencies to review, establish new, or adjust the list of national security industry products, submit to the Government for approval, and the list of national security industry facilities, the list of technical materials imported for the national security industry, submit to the Prime Minister for approval.

5. To issue or coordinate with ministries, agencies at the ministerial level to propose to the Government and the Prime Minister to issue special preferential mechanisms and specific support policies for building and developing national security industry facilities.

6. To review the list and assess the production capacity of national security industry facilities, coordinating with the Ministry of Industry and Trade and the Ministry of National Defense to develop procurement plans, investment cooperation plans, joint ventures, and collaborations to avoid redundant investments and waste.

7. To take the lead and coordinate with the Ministry of Science and Technology and relevant agencies to issue national technical standards for specialized national security industry products produced in Vietnam that comply with international standards.

8. To take the lead and coordinate with the Ministry of Science and Technology and related agencies and organizations to propose and implement scientific research tasks, technological development, and technology transfer services for the national security industry.

9. To coordinate with the Ministry of Natural Resources and Environment, relevant agencies, and provincial people's committees under the central government to review, establish planning and plans for land use for building and developing national security industry facilities, submit to the Prime Minister for approval and organize implementation.

10. To coordinate with relevant ministries and agencies to organize training and upgrading of professional and vocational skills to create high-quality human resources for building and developing the national security industry.

11. To organize and guide organizations and individuals to register participation in national security industry activities and manage international cooperation in the national security industry.

12. To coordinate with relevant ministries and agencies and provincial people's committees under the central government to carry out inspection, audit, complaint resolution, and handling of violations of laws on the national security industry.

Article 20. Responsibilities of Ministries and Equivalent Agencies

1. The Ministry of National Defense shall be responsible for coordinating with the Ministry of Public Security to review, establish new or adjust the list of security industry products and the specific list of security industry products; coordinate and review the capacity of defense industrial facilities under the Ministry of National Defense and security industrial facilities under the Ministry of Public Security as a basis for exchanging and cooperating in research and production of products serving the work and combat of the Military Forces, Police Force, and other law enforcement forces, avoiding duplication and waste.

2. Ministry of Planning and Investment

a) Coordinate with the Ministry of Public Security and relevant agencies to advise the Government and the Prime Minister on unified state management over the establishment, examination, decision on investment policies, and investment decisions for security industry development programs, plans, and projects in accordance with laws on public investment;

b) Coordinate and guide the Ministry of Public Security to develop plans and budgets for investment in security industry development and aggregate them into the medium-term and annual public investment plans of the Ministry of Public Security;

c) Take the lead in balancing and allocating capital for implementing security industry development programs and plans in accordance with the State Budget Law, mobilizing Official Development Assistance (ODA) funds for security industry development objectives; take the lead and coordinate with relevant ministries and agencies to develop policies to encourage and attract non-budgetary resources for building and developing the security industry.

3. Ministry of Finance

a) Take the lead in allocating funds for implementing security industry development investment programs and plans in accordance with laws on the state budget when approved by competent authorities;

b) Guide conditions, subjects, procedures, and processes for preferential loans, state-guaranteed investment credit, and other sources of credit for security industry development programs, plans, and projects, production, and supply activities of security industry products, ensuring simplicity, clarity, and transparency;

c) Coordinate with the Ministry of Public Security to guide, inspect, and supervise the use of funds for implementing security industry development programs and plans.

4. The Ministry of Industry and Trade

a) Coordinate with the Ministry of Public Security and relevant agencies to review and incorporate the content of security industry development and the list of security industry products into sectoral industry development programs and strategies;

b) Coordinate and review to establish new or adjust the list of security industry products to submit to the Government for approval and promulgation.

5. The Ministry of Natural Resources and Environment

a) Take the lead and coordinate with relevant agencies and provincial People's Committees to study and propose to the Prime Minister options for planning, managing, and using land for security industry development;

b) Coordinate with the Ministry of Finance to guide the land use system and special land use incentives for security industry development programs and projects.

6. The Ministry of Science and Technology

a) Take the lead, coordinate, and guide the Ministry of Public Security and organizations and individuals to implement scientific and technological research and application programs serving the construction and development of the security industry, focusing on researching, applying, updating, and developing new high-tech specialized products to meet the increasingly high requirements of national security protection tasks and maintaining social order and safety in the new situation;

b) Coordinate, guide, and inspect technology transfer and decoding activities; issue national technical standards for specialized security industry products and mobilize experts and scientists to participate in researching and developing the security industry.

7. The State Bank shall be responsible for coordinating with the Ministry of Finance to provide detailed guidance on implementing credit policies from state investment development credit sources; domestic and foreign credit guarantees; and other credit sources for security industry development programs and projects in accordance with the law.

Article 21. Responsibilities of the People's Committees of provinces and centrally governed cities

1. Coordinate with ministries and related agencies to perform state management functions regarding construction, development of security industries, ensuring consistency with national strategies, plans, and overall programs for economic and social development, security, and national defense at the national, regional, and local levels.

2. Coordinate with the Ministry of Natural Resources and Environment and related agencies to adjust and supplement land use plans to allocate land for the development of security industries according to approved programs, plans, and projects. Coordinate to implement special mechanisms and policies for security industries at the local level.

3. Coordinate with the Ministry of Public Security and related agencies to propose and organize the implementation of programs, plans, and projects for the development of security industries.

Chapter V

IMPLEMENTING PROVISIONS

Article 22. Effectiveness

This Decree takes effect from August 1, 2020.

Article 23. Responsibility for Implementation

1. The Minister of Public Security shall take the lead and coordinate with ministries, ministerial-level agencies, and the People's Committees of provinces and centrally governed cities to guide the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairpersons of the People's Committees of provinces and centrally governed cities, and relevant organizations and individuals are responsible for implementing this Decree./.