Decree No. 81/2002/NĐ-CP detailing the implementation of certain provisions of the Law on Science and Technology

DECREE

Detailed Implementation of Certain Provisions of the Law on Science and Technology

________________________

THE GOVERNMENT

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

Based on the Law on Science and Technology dated June 9, 2000;

At the proposal of the Minister of Science and Technology,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed implementation of certain provisions of the Law on Science and Technology regarding scientific and technological organizations; individuals engaged in scientific and technological activities; entities implementing scientific and technological tasks; application of research results and technological development; some measures to ensure the development of science and technology; international cooperation in science and technology; state management of science and technology.

Article 2. Applicability

1. This Decree applies to organizations and individuals in Vietnam engaging in scientific and technological activities in the fields of natural sciences, social sciences and humanities, engineering and technology.

2. This Decree applies to foreign organizations and individuals, Vietnamese citizens residing abroad who engage in scientific and technological activities within the territory of the Socialist Republic of Vietnam. In cases where international treaties to which the Socialist Republic of Vietnam is a party provide different provisions from those of this Decree, the provisions of such international treaties shall apply.

Chapter II

SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS,

INDIVIDUALS ENGAGED IN SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES

Section 1. SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS

Article 3. Planning the System of Scientific and Technological Organizations

1. The Ministry of Science and Technology, based on the tasks of economic and social development, ensuring national security and defense, and the plan for the development of science and technology during each period, shall develop a plan for the system of research and development organizations nationwide to be submitted to the Government for decision.

2. Research and development organizations established in accordance with Articles 10 and 11 of the Law on Science and Technology may choose their names, but must ensure that the names are appropriate to their organizational form, functions, and main areas of activity. The Ministry of Science and Technology shall specify the naming rules for each type of research and development organization.

3. Organizations and individuals establishing scientific and technological service organizations in accordance with Article 13 of the Law on Science and Technology shall do so under the form of public service organizations or scientific and technological service enterprises in accordance with the Enterprise Law.

Article 4. Conditions for Establishing Research and Development Organizations and Scientific and Technological Service Organizations

Research and development organizations and scientific and technological service organizations shall be established when the following conditions are met:

1. They have objectives and directions of operation consistent with the provisions of the law;

2. They have a Charter governing their organization and operations;

3. They have sufficient numbers and structures of necessary scientific and technological personnel, including part-time personnel, and have headquarters and technical facilities adequate to carry out scientific and technological activities in accordance with the Charter of the organization.

The Ministry of Science and Technology shall specify the conditions for establishment for each type of research and development organization and scientific and technological service organization.

Article 5. Authority to Establish, Merge, Split, and Dissolve Research and Development Organizations

1. The Government establishes national-level research and development organizations.

2. The Prime Minister decides or delegates the authority to the Minister, Chairman of the People's Committee of provinces and centrally governed cities to decide on the establishment of ministry-level and provincial-level research and development organizations.

3. The establishment of research and development organizations within the systems of the National Assembly, Supreme People's Court, and Supreme People's Procuracy shall be carried out in accordance with the Law on the Organization of the National Assembly, the Law on the Organization of the People's Courts, and the Law on the Organization of the People's Procuracies.

4. Central political organizations and political-social organizations decide to establish research and development organizations in accordance with their own Charters.

5. Ministers, heads of ministerial-level agencies, agencies under the Government, Chairmen of the People's Committees of provinces and centrally governed cities decide to establish grassroots-level research and development organizations.

6. Heads of ministry-level and provincial-level research and development organizations, research and development organizations of central political and political-social organizations, state-owned enterprises, universities, and hospitals may decide to establish grassroots-level research and development organizations after obtaining approval from their direct superiors.

7. Political organizations and political-social organizations not covered by paragraph 4 of this Article, social organizations, occupational associations, and individuals may establish grassroots-level research and development organizations in accordance with this Decree.

8. Authorities with the power to establish research and development organizations also have the authority to decide on the merger, division, and dissolution of these organizations.

Article 6. Registration of Activities of Research and Development Organizations and Science and Technology Service Organizations

1. Research and development organizations and science and technology service organizations must register their activities and may only conduct scientific and technological activities after registration. If an organization does not operate within twelve months from the date of registration, the registration will become invalid. During the course of operation, if there is a change in the field of activity, supplementary registration procedures must be completed.

2. The registration of activities for research and development organizations and science and technology service organizations shall be regulated as follows:

a) Research and development organizations specified in Clauses 1, 2, 3, and 4 of Article 5 of this Decree and foreign-funded research and development organizations shall register their activities with the Ministry of Science and Technology.

b) Research and development organizations not specified in point a of this Clause shall register their activities with the Department of Science and Technology where the organization's main office is located.

c) Foreign-funded science and technology service organizations shall register their activities with the Ministry of Science and Technology; domestic science and technology service organizations shall register at the Department of Science and Technology where the organization's main office is located.

Article 7. Documents for Registration of Activities of Research and Development Organizations and Science and Technology Service Organizations

The documents for registering activities of research and development organizations and science and technology service organizations include:

1. Application for registration of scientific and technological activities;

2. Decision on establishment, except in cases where individuals establish scientific and technological organizations themselves;

3. Charter of organizational structure and operations;

4. Scientific curriculum vitae of the director; conditions regarding scientific and technological human resources, material and technical infrastructure; headquarters of the organization.

Article 8. Issuance of Registration for Research and Development Organizations and Science and Technology Service Organizations

Within fifteen working days from the date of receiving complete and valid documents, the competent authority shall be responsible for reviewing the documents and issuing the registration for research and development organizations and science and technology service organizations. In case of refusal to issue the registration, a written response stating the reasons must be provided. Organizations and individuals applying for registration of research and development organizations and science and technology service organizations shall bear legal responsibility for the contents declared in the documents according to Articles 4 and 7 of this Decree.

Article 9. Autonomy of Research and Development Organizations

State-owned research and development organizations have the right to autonomy and are responsible for their own activities according to Decree No. 10/2002/NĐ-CP dated January 16, 2002, on financial regulations applicable to revenue-generating public institutions and other current laws.

Article 10. Collaboration, Joint Ventures, and Accepting Sponsorship

1. Science and technology organizations are entitled to:

a) Cooperate with domestic and foreign organizations and individuals to carry out scientific and technological activities in accordance with the law;

b) Form collaborations, joint ventures, sign business cooperation contracts; contribute capital with domestic and foreign organizations and individuals to engage in production and business activities in accordance with the law;

c) Organize production and business activities of products resulting from research and development or science and technology services related to their functions, tasks, and expertise. In cases of establishing enterprises, they must comply with relevant legal provisions.

2. Science and technology organizations are entitled to accept sponsorship from domestic organizations and individuals, foreign organizations and individuals, and international organizations to carry out scientific and technological activities in various fields of science and technology without causing harm to national security and defense, violating Article 8 of the Law on Science and Technology, and other legal provisions.

Section 2. INDIVIDUALS ENGAGING IN SCIENCE AND TECHNOLOGY ACTIVITIES

Article 11. Individuals Establishing Science and Technology Organizations

1. Individuals may establish science and technology organizations in accordance with Article 4 of this Decree and shall not violate the provisions set forth in Article 8 of the Law on Science and Technology.

2. The Ministry of Science and Technology shall take the lead and coordinate with relevant agencies to identify specific fields in which individuals can establish science and technology organizations, to be submitted for the Prime Minister's decision.

Article 12. Individuals Receiving Sponsorship for Science and Technology Activities

1. Individuals may receive sponsorship from domestic organizations and individuals, foreign organizations and individuals, and international organizations to conduct science and technology activities but must not violate national security, defense regulations, and the provisions set forth in Article 8 of the Law on Science and Technology.

2. Individuals engaged in science and technology organizations shall receive sponsorship through those organizations.

Individuals working within a science and technology organization who have their own research topics or are hired by foreign entities to perform science and technology tasks outside the scope of management of their own organization must register to receive sponsorship at the Department of Science and Technology or through an appropriate science and technology organization.

Individuals not affiliated with any science and technology organization, when accepted sponsorship from foreign organizations or individuals to engage in science and technology activities, must register the receipt of sponsorship with the Department of Science and Technology or through a science and technology organization to receive sponsorship. The use of sponsorship shall be carried out according to the written agreement between the sponsor and the recipient.

Article 13. Proposals of Individuals Engaging in Science and Technology Activities

Proposals of individuals engaging in science and technology activities as stipulated in Clause 5, Article 17 of the Law on Science and Technology shall be received, studied, and responded to by competent authorities.

Chapter III

ORGANIZATIONS IMPLEMENTING SCIENCE AND TECHNOLOGY TASKS

Article 14. Science and Technology Tasks

1. Science and technology tasks are scientific and technological issues that need to be resolved, organized and implemented in the form of research topics, projects, and science and technology programs.

2. A science and technology research topic mainly focuses on studying a particular scientific and technological subject. Research topics can be independent or part of a project or program.

3. A science and technology project mainly involves conducting scientific research activities, developing technology, applying technology; applying and testing economic and social management solutions, methods, and models. Projects can be independent or part of a program.

4. A science and technology program includes a group of research topics and projects, compiled under a specific purpose to achieve specific goals in the development of science and technology or application in practice.

5. The Ministry of Science and Technology shall specify the detailed organization and management of science and technology programs, topics, and projects.

Article 15. Determination of Science and Technology Tasks

1. The Ministry of Science and Technology shall organize the determination and submit to the Government for decision on the strategy and plan for the development of science and technology; priority directions in science and technology; main science and technology tasks of the State, resource allocation plans, and implementation organization of these science and technology tasks.

2. The Prime Minister decides to implement science and technology tasks directly serving guidance, management, and other urgent requirements.

3. Ministries, ministerial-level agencies, government agencies, provincial People's Committees, municipal People's Committees under the central government, and other state agencies shall determine science and technology tasks based on the State’s priority directions in science and technology, main science and technology tasks of the State, and the needs for economic and social development of their sectors, localities, bases, and enterprises.

4. Science and technology organizations shall determine science and technology tasks based on the State’s priority directions in science and technology development, social needs, assigned functions, and their fields of science and technology activities.

5. Enterprises shall determine science and technology tasks based on the country’s priority directions in economic and social development, production and business plans of the enterprise.

6. Heads of agencies and organizations specified in Clauses 1 and 3 of this Article:

a) Establish a Science and Technology Council in accordance with Article 22 of this Decree to advise on the determination of science and technology tasks and decide on the objectives and contents of science and technology programs, topics, and projects;

b) Decide on the organization and implementation of science and technology tasks through selection or direct assignment in accordance with Articles 16 and 17 of this Decree.

Article 16. Scientific and technological tasks assigned through selection

1. Scientific and technological tasks that multiple organizations, groups, and individuals have the capability to participate in must be assigned through a selection process to achieve the highest possible effectiveness.

2. State management agencies for science and technology at all levels must announce on mass media about scientific and technological tasks planned to be implemented in the next fiscal year, conditions, and procedures for all organizations and individuals to register to participate in the selection within a period of 60 days from the date of announcement.

3. The head of state management agencies for science and technology at all levels shall decide on the results of the selection of organizations and individuals to implement scientific and technological tasks based on the advisory opinions of the Selection Committee established in accordance with Article 23 of this Decree.

4. The selection of organizations and individuals to implement scientific and technological tasks must be transparent, fair, democratic, and objective. The results of the selection must be announced on mass media.

Article 17. Direct assignment of scientific and technological tasks

1. Directly assigned scientific and technological tasks are those involving national secrets, special aspects of security and defense, urgent scientific and technological tasks, and scientific and technological tasks where only one organization or individual has the necessary expertise and equipment to carry out such tasks.

2. State management agencies for science and technology at all levels select organizations and individuals who meet the required conditions to assign them to implement scientific and technological tasks. Organizations and individuals assigned scientific and technological tasks must prepare a project outline and defend it before the Science and Technology Council established by the agency.

3. Scientific and technological organizations directly assigned scientific and technological tasks may organize their implementation either through a selection process or directly assign them to groups or individuals within the organization. If they choose the selection process, they must establish a Selection Committee in accordance with Article 23 of this Decree. In cases of direct assignment, they must establish a Science and Technology Council to review the project outline for implementing the scientific and technological task.

Article 18. Scientific and technological tasks financially supported by the Science and Technology Development Fund

All organizations and individuals engaged in science and technology activities have the right to propose scientific and technological tasks to the State Science and Technology Development Fund for funding or loans according to the Government's regulations on the National Science and Technology Development Fund.

Article 19. Implementation of scientific and technological tasks without using state budget funds

The State encourages all organizations and individuals to independently organize or participate in the implementation of scientific and technological tasks in any lawful form.

Article 20. Inspection and evaluation during the implementation of scientific and technological tasks

State management agencies for science and technology at all levels, within their authority, must conduct regular inspections and evaluations of the implementation of scientific and technological tasks funded by the state budget regarding scientific content, progress, and fund usage. When necessary, adjustments can be made to the research content to align with practical requirements, or the task may be terminated.

Article 21. Evaluation and Acceptance of Scientific and Technological Task Results

1. Scientific and technological tasks funded by state budget, upon completion, must be objectively and accurately evaluated and accepted by the specialized Science and Technology Council established in accordance with Article 24 of this Decree. The competent state management agencies at all levels shall decide to recognize and announce the results of scientific and technological tasks within their authority.

2. Scientific and technological tasks not funded by state budget but whose results have wide application throughout the country, in a sector, locality, or affect national interests, defense, security, environment, health, and people's lives must be organized for assessment by the competent state management agencies at all levels before being applied.

Article 22. Council for Determining Scientific and Technological Tasks

1. The Council for Determining Scientific and Technological Tasks is established by the head of the agency or organization within their authority to advise on determining scientific and technological tasks. The Council’s duty is to analyze, evaluate, and recommend on the objectives, requirements, and expected outcomes of programs, topics, and projects. Opinions of Council members and recommendations of the Council must be documented in writing.

2. The Council consists of a chairman, two members as critical reviewers, and other members. Members include:

a) Half are representatives from state management agencies, production and business organizations, and other related organizations;

b) Half are scientists and technologists working in relevant fields of science and technology.

Council members must be reputable experts who are impartial, have appropriate professional qualifications, and have deep understanding in the field of science and technology they are advising on.

Article 23. Council for Selecting Organizations and Individuals to Implement Scientific and Technological Tasks

1. The Council for Selecting Organizations and Individuals to Implement Scientific and Technological Tasks is established by the head of the agency or organization within their authority to advise on selecting organizations and individuals to lead the implementation of scientific and technological tasks.

2. The Council consists of a chairman, two members as critical reviewers, and other members. Members include:

a) One-third are representatives from related state management agencies, production and business organizations using scientific and technological results, and other related organizations;

b) Two-thirds are scientists and technologists working in relevant fields of science and technology.

Council members are reputable experts who are impartial, have appropriate professional qualifications, and have deep understanding in the field of science and technology they are advising on selection.

3. In necessary cases, the competent state management agency for science and technology within its authority may designate two experts as anonymous critical reviewers.

Article 24. Council for Evaluating and Accepting Scientific and Technological Task Results

1. The head of the agency or organization within their authority establishes the Council to evaluate and accept the results of scientific and technological tasks funded by state budget upon completion of the task.

2. The Council for Evaluating and Accepting Scientific and Technological Task Results conducts evaluation and acceptance according to the purpose, requirements, content, results, and progress recorded in the signed contract and is responsible to the competent state management agency for science and technology within its authority for evaluating and accepting the results of scientific and technological tasks.

3. The Council consists of a chairman, two members as critical reviewers, and other members. Members include:

a) One-third are representatives from state management agencies and production and business organizations, and other related organizations;

b) Two-thirds are scientists and technologists working in the fields of science and technology assigned to evaluate.

Council members are reputable experts who are impartial, have appropriate professional qualifications, and have deep understanding in the field of science and technology they are evaluating.

4. In necessary cases, the competent state management agency for science and technology at all levels within its authority may designate two experts as anonymous critical reviewers.

Article 25. Principles of Operation of Scientific and Technological Councils

1. The Scientific and Technological Councils specified in Articles 22, 23, and 24 of this Decree operate on the principle of democracy. Members of the Council discuss their advisory tasks openly. Members provide written comments and must be responsible for their advisory opinions.

2. The Council scores according to criteria and point scales or ranks according to the regulations of the Minister of Science and Technology.

3. The budget for the operation of the Scientific and Technological Councils specified in Articles 23 and 24 of this Decree is included as a separate item in the total budget of the program, topic, or project. This budget is managed by the agency overseeing the program, topic, or project. The budget for the Council determining scientific and technological tasks specified in Article 22 of this Decree is taken from the science and technology business fund. Members of the Scientific and Technological Councils specified in Articles 22, 23, and 24 of this Decree are compensated for performing their Council duties from the budget stipulated herein.

4. In cases where necessary, state management agencies at all levels may establish other Scientific and Technological Councils to advise on specific issues.

Article 26. Principles and Forms of Scientific and Technological Contracts

1. Scientific and Technological Contracts include: research contracts; technology transfer contracts; and scientific and technological service contracts.

2. Scientific and Technological Contracts are implemented based on voluntariness, agreement, equality, and compliance with the law.

3. Scientific and Technological Contracts must be established in writing.

Article 27. Main Content of Scientific and Technological Contracts

1. Research and Development Contracts must contain the following main contents:

a) The name, address, account number of the parties to the contract;

b) Name of the scientific and technological task, research methods, main content, and results to be achieved;

c) Location, duration, method of performing the contract;

d) Regulations on the use of research results and sharing benefits when using the results;

đ) Evaluation methods, acceptance procedures;

e) Intellectual property rights;

g) Implementation costs, payment methods;

h) Liability for breach of contract and dispute resolution;

i) Other agreements.

2. The content of technology transfer contracts and scientific and technological service contracts shall be carried out in accordance with civil law regulations.

Article 28. Rights and Obligations of the Ordering Party

1. The ordering party of a scientific and technological contract has the right:

a) To own scientific and technological results, unless otherwise agreed in the contract;

b) To transfer scientific and technological results to others.

2. The ordering party of a scientific and technological contract has the obligation:

a) To provide necessary information for the implementation of the contract;

b) To fully pay material costs to the contractor according to the agreement in the contract.

Article 29. Rights and Obligations of the Contractor

1. The contractor of a scientific and technological contract has the right:

a) To enjoy authorship rights over scientific and technological research results according to the agreement in the contract;

b) To request the ordering party to provide information and other conditions according to the agreement in the contract to implement the contract;

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

2. The contractor of a scientific and technological contract has the obligation:

a) To submit products in accordance with the provisions of the contract;

b) Not to transfer scientific and technological results without the consent of the ordering party.

Article 30. Dispute Resolution for Science and Technology Contracts

1. The party violating a science and technology contract must compensate for damages caused by their fault and be subject to penalties according to the provisions of the contract or as stipulated by law.

2. Disputes arising from science and technology contracts shall first be resolved through mediation and agreement between the parties; if the parties cannot resolve the dispute themselves, it shall be settled by the court, unless there is an arbitration agreement.

Chapter IV

APPLICATION OF RESEARCH RESULTS

AND TECHNOLOGY DEVELOPMENT

Article 31. Utilization and Transfer of Research Results in Science and Technology

Based on the evaluation results of the Scientific Council, the head of the state management agency at all levels for science and technology decides on the acceptance of research results and their publication, utilization, and transfer. Research results in science and technology funded by the State for public benefit must be publicly disclosed widely so that organizations and individuals can apply them to production and daily life. The project leader and the implementing organization have the responsibility to transfer research results into production and daily life in accordance with the law.

Article 32. Encouragement of Innovation, Technological Improvement, and Production Rationalization

1. State management agencies at all levels for science and technology must take measures to promote innovation movements, technological improvement, and production rationalization; develop science and technology services; strengthen the dissemination of scientific and technological knowledge to enhance public awareness of science and technology.

2. Annually, the Ministry of Science and Technology will coordinate with the Ho Chi Minh Communist Youth Central Committee, the Vietnam General Confederation of Labor, the Vietnam Association for Science and Technology, and other social-professional organizations and enterprises to organize creative competitions, innovation, technological improvement, and production rationalization contests, and allocate budget funds for science activities to support the widespread promotion and application of contest results in production and daily life.

3. When enterprises organize innovation, technological improvement, and production rationalization contests, the costs for these activities are considered investment in science and technology activities as stipulated in Article 40 of the Law on Science and Technology.

4. The State encourages all organizations and individuals to organize or sponsor such creative, innovative, technological improvement, and production rationalization contests.

Article 33. Encouragement of Application of Research Results in Science and Technology

1. Organizations and individuals applying research results in science and technology to improve management, modernize technology, and enhance product competitiveness shall enjoy tax and credit incentives as provided for in Articles 42 and 43 of this Decree.

2. Organizations and individuals engaged in science and technology activities when transferring or transferring research and development results into production and daily life shall be facilitated to advertise, introduce, and demonstrate research and development results; participate in exhibitions and trade fairs.

3. Profits obtained from the transfer or transfer of research and development results shall be distributed to the scientist who created the result, the owner of the result, the science and technology organization of the scientist, and the intermediary. The distribution ratio shall be agreed upon in the science and technology contract between the parties. In cases where technology is created using state budget funds, the author may receive up to 30% of the technology transfer payment price; the author and the collective organization successfully applying the scientific and technological result shall be rewarded by the user of the scientific and technological result with a maximum value of 30% of additional income after tax within three years.

4. An intermediary facilitating the application of scientific and technological results created using state budget funds may receive up to 10% of the technology transfer payment price, the specific amount and the responsibility for paying this fee shall be agreed upon by the parties.

Article 34. Application of Scientific Research and Technological Development Results to Reform Policies and Economic-Social Management Mechanisms

State management agencies at all levels shall implement the following measures to promote the application of scientific research and technological development results in building models and solutions for industrialization and modernization; reforming and perfecting economic-social management; and constructing a progressive, national culture and new Vietnamese people:

1. Evaluate and recognize the scientific and practical significance of scientific and technological works in this field;

2. Support funding, organize pilot models, disseminate, and expand the application of research and development results;

3. Reward organizations and individuals who carry out research and development works that are applied to life appropriately.

Article 35. Application of Scientific Research and Technological Development Results in Enterprises

1. An enterprise applying domestically produced technology, confirmed by the state management agency on science and technology regarding its technical aspects, shall be entitled to preferential treatment when borrowing from banks.

2. An enterprise applying domestically produced technology where the State is the owner shall be exempted from payment for technology transfer to the State but must pay the author according to Clause 3, Article 33 of this Decree.

Article 36. Application of Scientific Research and Technological Development Results in Agriculture and Rural Development

1. The Government shall establish and encourage organizations and individuals to establish technology transfer and application bases; expand networks of agricultural extension services, forestry extension services, fishery extension services, and local science and technology service organizations to provide services suitable to farmers' needs; increase investment in implementing science and technology projects, build some pilot models for applying science and technology in rural areas, regions with difficult socio-economic conditions, and regions with particularly difficult socio-economic conditions.

2. People's Committees at all levels shall be responsible for creating favorable conditions for domestic and foreign organizations, individuals, and science and technology experts to widely apply scientific and technological achievements in their localities; provide housing and land, transportation means, equipment, and working facilities for science and technology staff working in localities.

Provincial People's Committees and municipal People's Committees under the Central Government shall support funding or subsidize part of the cost for farmers to apply new technologies in production and daily life.

3. The Ministry of Home Affairs shall take the lead and coordinate with the Ministry of Labor, Invalids, and Social Affairs, and the Ministry of Science and Technology to guide specific allowances and other benefits for science and technology staff working in areas with difficult socio-economic conditions and areas with particularly difficult socio-economic conditions.

Article 37. Investment Projects and Socio-Economic Development Programs

1. Investment projects of type A and B, and socio-economic development programs shall include items for research and development expenses to serve the establishment of scientific foundations for projects and programs, various stages of investment preparation and implementation, and resolution of scientific and technological issues arising during the implementation of programs and projects.

2. Investment projects and socio-economic development programs must be reviewed for scientific basis and technology by the state management agency on science and technology during the project and program formulation stage. The level managing the program or project shall be responsible for organizing a scientific and technological review board.

3. Technologies introduced for application during the implementation phase of investment projects and programs must be reviewed. Based on the scale and nature of the project or program, the classification of technology reviews should correspond to the classification of reviews for construction investment projects.

4. The Ministry of Science and Technology shall provide detailed guidance on the procedures and formalities for reviewing the scientific basis and technology of investment projects and socio-economic development programs.

Chapter V

MEASURES TO ENSURE THE DEVELOPMENT OF SCIENCE AND TECHNOLOGY

Article 38. Training human resources and nurturing talent in science and technology

1. The Ministry of Education and Training shall take the lead and coordinate with the Ministry of Science and Technology and the Ministry of Planning and Investment to develop a general plan for training human resources in science and technology to be submitted to the Government for decision.

2. State programs on science and technology that fall within priority and key areas must include components for training human resources and nurturing talent in science and technology. The results of such training shall be one of the criteria for evaluating the completion of scientific and technological tasks.

3. Organizations and individuals who have the necessary capacity and conditions as prescribed by the State shall be entitled to participate equally in training human resources and nurturing talent through various forms, including providing scholarships to Vietnamese citizens for studying and enhancing their expertise both domestically and abroad. The costs for training human resources in science and technology by enterprises shall be considered reasonable expenses when determining taxable income.

Article 39. Utilization of human resources in science and technology

1. State organizations in science and technology shall be responsible for building strong scientific teams; supporting organizational and material infrastructure so that temporary scientific teams comprising individuals engaged in science and technology from different organizations can have the opportunity to participate and carry out state scientific and technological tasks.

2. Each year, state management agencies for science and technology and scientific organizations shall review and award prizes for outstanding scientific and technological works; provide rewards and special preferential conditions regarding working and living conditions for scientists and technologists who have made significant contributions to scientific and technological activities.

3. State research and development organizations must publicly announce criteria and organize the selection of scientific and technological human resources to ensure the recruitment of those truly capable of conducting research. When considering appointments, utilization, and awards, the results of individual scientific and technological activities shall be taken into account.

4. Individuals belonging to state scientific and technological organizations may work under a part-time employment contract at other scientific and technological organizations. The Ministry of Science and Technology shall specify the details of the part-time work system in scientific and technological organizations.

Article 40. Scientific positions

1. Scientific positions include: Research Assistant, Researcher, Senior Researcher, and Distinguished Researcher.

2. Criteria for appointment to scientific positions include:

a) Talent, educational background, dedication, and time spent in scientific and technological activities;

b) Individuals with outstanding scientific and technological research works or high-level scientific and technological awards shall be given priority for appointment to higher scientific positions, regardless of their current position and time spent in scientific and technological activities.

3. The Ministry of Home Affairs shall take the lead and coordinate with the Ministry of Science and Technology to establish standards for each scientific position and procedures for the appointment of scientific positions.

Article 41. Enterprises investing in the development of science and technology

1. Enterprises may include expenditures on the development of science and technology as reasonable expenses when determining taxable income, including funds for scientific research and technological development, purchasing information and technological materials, industrial property rights, and expenses for innovation, technical improvements, and production rationalization. Investments in technology that form fixed assets shall be gradually deducted from production costs.

2. Enterprises may establish a Fund for the Development of Science and Technology to proactively invest in science and technology according to the development needs of the enterprise. The capital of this Fund shall be formed from pre-tax profits of the enterprise and other sources if available.

3. Enterprises investing in researching scientific and technological issues within the priority and key areas of the State shall be eligible for financial support from the state budget for scientific and technological affairs or from the Science and Technology Development Fund, subject to the regulations governing the operation of the Fund. The Ministry of Science and Technology shall specify the conditions and procedures for granting financial support to these entities.

4. In addition to the incentives stipulated in Clause 1, Clause 2, and Clause 3 of this Article, enterprises investing in the development of science and technology shall also enjoy other incentives as provided by current laws.

Article 42. Tax Policy for Science and Technology Activities

1. Income from the implementation of scientific research and technology development contracts shall not be subject to corporate income tax. The determination of non-taxable income shall be carried out in accordance with the regulations on corporate income tax.

2. Funds received by science and technology organizations from signing contracts to implement programs, topics, and projects using state budget and topics, projects funded by science and technology development funds shall not be subject to value-added tax.

3. Machinery, equipment, spare parts, materials, domestic transportation means that have not yet been produced or have been produced but do not meet requirements; priority technologies; scientific and technological information, high-tech equipment imported for direct use in research and development activities shall not be subject to import tax and value-added tax.

4. Products in the experimental production period shall not pay corporate income tax and value-added tax.

5. Enterprises implementing technological innovation investment, improving technological level, producing products from new technology applied for the first time in Vietnam shall be exempted or granted reductions in corporate income tax on additional income generated from these activities. Specific cases are regulated as follows:

a) Domestic enterprises shall comply with the provisions of the Law on Encouraging Domestic Investment.

b) Foreign-invested enterprises and foreign parties in joint business contracts shall comply with the provisions of the Law on Foreign Investment in Vietnam.

6. Taxes on science and technology consulting activities, technology transfer, and technology export are regulated as follows:

a) Value-added tax shall not be levied on technology transfer activities. Science and technology consulting activities shall be subject to the lowest applicable value-added tax rate within the tax bracket.

b) Science and technology consulting activities, technology transfer, and technology export shall enjoy preferential treatment regarding corporate income tax.

7. Scientific and technological information service activities shall enjoy the highest preferential treatment regarding corporate income tax and the lowest applicable value-added tax rate.

8. The Ministry of Science and Technology shall take the lead and coordinate with the Ministry of Finance and relevant agencies to specifically regulate tax preferences for science and technology activities stipulated in this Article; the Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Science and Technology to determine machinery and equipment that have not yet been produced domestically or have been produced but do not meet requirements, and priority technologies that have not yet been created domestically to serve as the basis for determining tax preferences stipulated in this Article.

Article 43. Credit Policy for Science and Technology Activities

1. Organizations and individuals engaged in science and technology activities borrowing medium and long-term capital to carry out science and technology activities shall enjoy preferential interest rates when borrowing from the National Science and Technology Development Fund and other funds.

2. Credit preferences for organizations and individuals borrowing to invest in science and technology activities shall be implemented according to the Charter of the borrowing funds.

3. In cases where borrowing from commercial banks for investment in science and technology activities, organizations and individuals may be considered for post-investment interest rate support or investment credit guarantee by the Development Support Fund according to the Fund's Charter.

4. Programs, topics, and projects of science and technology directly serving key national socio-economic programs and developing national scientific and technological potential requiring large amounts of capital shall be prioritized for consideration to use official development assistance (ODA) funding through the following methods:

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

b) Loans for investment projects to build scientific and technological potential or repayable loans for projects applying scientific and technological results.

5. The Ministry of Science and Technology shall take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Finance, the State Bank of Vietnam, and related ministries and agencies to specifically regulate credit preferences for science and technology activities stipulated in this Article.

Article 44. Incentives for the construction of material and technical facilities

1. Organizations and individuals investing in the construction of material and technical facilities for scientific and technological activities shall have such costs considered as reasonable expenses and deducted when determining corporate income tax.

2. Scientific and technological organizations leasing land to construct material and technical facilities for scientific and technological activities shall enjoy the highest incentives regarding land rent payments and the lowest rates on land use taxes as prescribed by tax laws.

3. The Ministry of Science and Technology shall take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Finance, and other relevant ministries to issue regulations on the management and operation of National Key Laboratories to ensure their operational effectiveness.

Article 45. Evaluation of Scientific and Technological Activities

1. The Ministry of Science and Technology shall specify detailed criteria, methods, procedures, and organization of evaluations of scientific and technological activities.

2. State management agencies at all levels shall conduct inspections and evaluations of scientific and technological activities within their respective jurisdictions.

Chapter VI

INTERNATIONAL COOPERATION IN SCIENCE AND TECHNOLOGY

Article 46. Policy to Attract Overseas Vietnamese Intellectuals and World-Class Experts

1. Overseas Vietnamese intellectuals and world-class experts are encouraged to participate in scientific and technological activities in Vietnam through various forms.

2. Overseas Vietnamese intellectuals and foreign experts working in Vietnam shall have the following rights, obligations, and benefits:

a) Enjoying rights and fulfilling obligations as stipulated for individual scientific and technological workers in Vietnam under Articles 17 and 18 of the Law on Science and Technology;

b) Having rights and obligations according to scientific and technological contracts or agreements signed with Vietnamese organizations and individuals;

c) Being appointed to scientific and technological positions as specified in Article 36 of the Law on Science and Technology;

d) Receiving other benefits as prescribed by law.

3. Overseas Vietnamese intellectuals and foreign experts who have made significant contributions to the development of science and technology in Vietnam shall be recognized and awarded Vietnamese science and technology prizes by the Vietnamese State.

Article 47. Rights and Obligations of Vietnamese Organizations and Individuals in International Cooperation in Science and Technology

1. Vietnamese organizations and individuals receiving financial support from foreign organizations, international organizations for scientific and technological activities in various fields of science and technology must ensure that these activities do not harm national defense, security, the environment, ethics, and traditional customs of the Vietnamese people, and do not violate the provisions of Article 8 of the Law on Science and Technology.

2. Vietnamese organizations and individuals engaged in scientific and technological activities may join scientific and technological organizations, scientific and technological associations; participate in research, training, consulting, and scientific conferences organized by international organizations, foreign organizations, and individuals; participate in cooperative activities to implement Vietnam's scientific and technological tasks. Such participation must not violate the provisions of Article 8 of the Law on Science and Technology.

3. Vietnamese organizations and individuals engaged in scientific and technological activities may undertake Vietnam’s scientific and technological tasks abroad; may bring out related research documents and samples to serve research activities in accordance with the law.

4. Vietnamese scientific and technological organizations may establish representative offices and branches abroad to carry out cooperation in science and technology.

Article 48. Scientific and technological organizations with foreign capital

1. Overseas Vietnamese persons, international organizations, and foreign individuals may establish scientific and technological organizations in Vietnam through cooperation and association between foreign organizations and individuals and Vietnamese organizations and individuals, or with 100% foreign capital (referred to as scientific and technological organizations with foreign capital).

2. The activities of scientific and technological organizations with foreign capital must not harm national security, defense, environment, ethics, traditional customs, and morals of the Vietnamese people, nor violate the provisions set forth in Article 8 of the Law on Science and Technology.

3. Scientific and technological organizations with foreign capital shall be established under the Enterprise Law, the Law on Foreign Investment in Vietnam, the Law on Encouraging Domestic Investment, and must comply with the regulations on establishment conditions, rights and obligations, procedures, application forms for permits, incentive and preferential regimes stipulated in relevant regulatory legal documents and the Law on Science and Technology.

4. Non-profit research and development organizations with foreign capital must comply with the regulations on establishment conditions, rights and obligations, procedures, application forms for registration of operations, organizational and operational charters, and enjoy incentive and preferential regimes as provided for scientific and technological organizations of Vietnamese organizations and individuals.

Chapter VII

STATE MANAGEMENT OF SCIENCE AND TECHNOLOGY

Article 49. Tasks and Authorities of the Ministry of Science and Technology

The Ministry of Science and Technology is responsible before the Government for state management of science and technology throughout the country, performing tasks and exercising authorities as prescribed by the Government.

Article 50. Tasks and Authorities of Ministries and Agencies Equivalent to Ministries in State Management of Science and Technology

Ministries and agencies equivalent to ministries perform state management of science and technology and are responsible for scientific and technological activities within their assigned sectors and fields; they have the responsibility to determine and organize the implementation of scientific and technological tasks within their assigned sectors and fields; ensure effective management and utilization of scientific and technological resources in their sectors; establish specialized bodies to manage science and technology to assist the Minister and the Head of the agency equivalent to a ministry in implementing state management of science and technology according to the Government's regulations.

Article 51. Tasks and Authorities of People's Committees at All Levels in State Management of Science and Technology

1. Provincial and municipal people's committees directly under the central government implement state management of science and technology in their localities, are responsible for scientific and technological activities in their localities; have the responsibility to determine and organize the implementation of scientific and technological tasks in their provinces; organize the application of scientific and technological results in production and daily life in their localities; ensure effective management and utilization of scientific and technological resources in their localities.

The Department of Science and Technology is responsible before the provincial and municipal people's committees directly under the central government for implementing state management of science and technology in their localities.

2. District, town, and city people's committees under provinces implement state management of science and technology in their localities according to the delegation of provincial and municipal people's committees directly under the central government. Based on specific conditions of each locality, the Chairman of the People's Committee decides appropriate forms and methods of managing science and technology within the framework of the Government's delegation regarding the organizational structure of districts, towns, and cities under provinces.

Chapter VIII

IMPLEMENTING PROVISIONS

Article 52. Effective date

This Decree takes effect fifteen days from the date of signature.

All previous regulations contrary to this Decree are hereby abolished.

Article 53. Guidance and responsibility for implementation

1. The Ministers of Science and Technology, Planning and Investment, Finance, Education and Training, Labor - Invalids and Social Affairs, and Home Affairs shall be responsible for guiding the implementation of this Decree in accordance with their respective functions, duties, and authorities.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, and chairpersons of provincial and municipal people's committees directly under the central government shall be responsible for implementing this Decree./.