Decree No. 94/2020/NĐ-CP on mechanisms and preferential policies for the National Innovation Center

DECREE

Regulations on mechanisms and preferential policies for

The National Innovation Center

^____________ 

 

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

On the basis of the Investment Law dated November 26, 2014;

Pursuant to the Law on Supporting Small and Medium Enterprises dated June 12, 2017;

Pursuant to the Law on Personal Income Tax dated November 21, 2007;

Pursuant to the Law on Corporate Income Tax dated June 3, 2008 and the Law Amending and Supplementing Certain Provisions of the Law on Corporate Income Tax dated June 19, 2013;

On the basis of The Law Amending and Supplementing Certain Provisions of Laws Von tax dated November 26, 2014;

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

The Government issues this Decree on management and development of industrial clusters.

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

Pursuant to the Law on Export Duties and Import Duties dated April 6, 2016;

Pursuant to the Law on Management and Use of State Property July 1921 thang 6 2017;

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

At the proposal of the Minister of Planning and Investment;

The Government issues this Decree to regulate mechanisms and policies for incentives for National Innovation and Entrepreneurship Centers.

 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates certain mechanisms and preferential policies for the National Innovation Center (hereinafter referred to as the Center) established pursuant to Decision No. 1269/QĐ-TTg dated October 2, 2019 of the Government, organizations and individuals operating at the Center and partners supporting innovation of the Center. 1. The National Innovation Center and its operational facilities within the territory of the Socialist Republic of Vietnam.

Article 2. Applicability

3. Partners supporting innovation of the Center.

2. Domestic and foreign organizations and individuals operating at the Center.

4. Other related organizations and individuals.

1. An individual who is an innovative startup entrepreneur is a person engaged in research, developing ideas, and commercializing new products, services, or business models.

Article 3. Explanation of Terms

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

2. An innovative startup enterprise is an enterprise established in accordance with the law to implement ideas based on exploiting intellectual property, technology, new business models, and having the potential for rapid growth.

3. A partner supporting innovation is an organization or individual that cooperates with the Center to invest, build, provide equipment, auxiliary works, and support services for research and development activities, testing, inspection, business operations, education and training, consulting, and other activities aimed at fulfilling the functions and tasks of the Center.

MECHANISMS AND PREFERENTIAL POLICIES FOR THE CENTER AND INDIVIDUALS, ORGANIZATIONS ENGAGING IN INNOVATIVE STARTUP ACTIVITIES AT THE CENTER

Chapter II

GENERAL MECHANISMS AND PREFERENTIAL POLICIES

Section 1

Article 4. General mechanisms and preferential policies to encourage development

1. The State encourages and implements various mechanisms and preferential policies to create a favorable environment for research and development, and business investment at the Center, thereby attracting talented individuals, experts both domestically and internationally, large domestic and foreign high-tech corporations to realize their ideas based on exploiting intellectual property, technology, new business models, and having the potential for rapid growth.

2. The Center shall enjoy the highest preferential mechanisms and policies and the most convenient administrative procedures as prescribed by law to support the development of an entrepreneurial and innovation ecosystem, contributing to transforming the growth model based on scientific and technological development.

3. Priority and encouragement shall be given to innovative startup enterprises, telecommunications enterprises, information technology enterprises, automation enterprises, and other related enterprises to establish offices and research and development departments within the Center to develop an innovation ecosystem within the Center.

3. Prioritize and encourage innovative start-up enterprises, telecommunications enterprises, information technology enterprises, automation enterprises, and other related enterprises to establish offices, research and development departments within the Center in order to develop an innovation ecosystem within the Center.

Article 5. Visas and Foreign Labor

1. Foreign individuals eligible for multiple-entry visas with durations appropriate to their direct work periods at the Center, as guided by the Ministry of Public Security, include:

a) Individuals working at the Center, including workers, experts, and scientists of the Center, of creative start-up enterprises operating at the Center, of innovation support partners, and individual creative start-ups;

b) Family members (including biological parents, spouse, and biological or adopted children under 18 years old) of the individuals mentioned in point a of this Clause.

2. Overseas Vietnamese residents and foreign experts working at the Center shall be granted Work Permits by the Management Board of Hoa Lac High-Tech Park through simplified procedures.

3. The Head of the Management Board of Hoa Lac High-Tech Park decides on approving the Center's plan for using foreign labor at the Hoa Lac High-Tech Park premises.

Article 6. Investment credit incentives

1. Creative start-up individuals' investment projects, creative start-up enterprises operating at the Center, and the Center’s investment projects listed in the national credit investment loan portfolio shall enjoy preferential national credit investment loans from the Vietnam Development Bank as stipulated by law.

2. The Center, creative start-up individuals, and creative start-up enterprises operating at the Center may receive funding, support, loans, and loan guarantees from the National Science and Technology Development Fund, the National Science and Technology Development Fund, the Small and Medium Enterprise Development Fund, and provincial science and technology development funds according to the law.

Section 2

MECHANISMS AND PREFERENTIAL POLICIES FOR THE CENTER

Article 7. Land Preferential Policies and Site Preparation

1. The Center is entitled to lease land for up to 50 years within high-tech zones and is exempted from all land rental fees for the entire lease period.

2. For the Center's facilities at Hoa Lac High-Tech Park:

a) Exemption from infrastructure usage fees for leased land areas within zones requiring payment for infrastructure usage for technical infrastructure projects funded by the state;

b) Exemption from all compensation, site clearance, support, and resettlement costs;

c) The state budget will fully support the site leveling costs of the Center's facility investment project.

1. The Center can accept non-repayable Official Development Assistance (ODA) capital to implement non-routine tasks as prescribed by the law on the use of non-repayable ODA capital.

2. The Center can accept non-governmental foreign aid, sponsorship, and gifts from domestic organizations and individuals for constructing physical facilities, regular expenses, supporting operations, and management and operation activities of the Center.

Article 9. Tax Preferences

1. The Center is exempted from import taxes on goods imported to form fixed assets, goods directly used for scientific research, technological development, technology incubation activities, science and technology business incubation, and technological innovation as stipulated by the Law on Export Tax and Import Tax.

2. For the Center's facilities at Hoa Lac High-Tech Park:

a) Enjoying a corporate income tax rate of 10% for 30 years starting from the first year of revenue, exempted from tax for four years, and a reduction of 50% of the tax payable not exceeding nine years following the commencement of taxable income;

b) Exempted from import duties on raw materials, components, and parts that cannot be produced domestically for production purposes for five years from the start of production.

3. For Center facilities outside Hoa Lac High-Tech Park:

They shall enjoy corporate income tax preferences as applied to the Center as stipulated in point a of Clause 2 of this Article, as provided for in the Corporate Income Tax Law.

Section 3

MECHANISMS AND PREFERENTIAL POLICIES FOR INDIVIDUALS AND ORGANIZATIONS OPERATING CREATIVE START-UP ENTERPRISES AT THE CENTER

Article 10. Tendering for Innovative Start-up Enterprises

1. Innovative start-up enterprises operating at the Center when participating in tenders for tender packages within the scope regulated by the Bidding Law shall be exempted from certain criteria for evaluating prequalification bids, bidding proposals, and proposal submissions regarding the contractor's capacity and experience, including requirements on revenue, financial resources, similar contracts, and other requirements to suit the characteristics of innovative start-up enterprises.

2. When evaluating and ranking bidding proposals and proposal submissions, small innovative start-up enterprises and micro innovative start-up enterprises operating at the Center shall be given preferential treatment equivalent to that provided to contractors supplying goods with domestic production costs accounting for 25% or more according to the legal provisions on bidding, with the method of preferential calculation implemented in accordance with the current Government regulations on selecting contractors.

Article 11. Support Provided by the Center

Individuals engaged in innovative start-ups, innovative start-up enterprises operating at the Center, and the Center’s innovation partners shall be supported by the Center as follows:

1. Implement administrative procedures during the research, investment, business, and commercialization of products and services process.

2. Implement procedures for entry visa, work permit, residence.

3. Promotion, investment attraction, and connection with the start-up and innovation ecosystem.

4. Office space and use of laboratories, testing, certification facilities, and other means and utilities of the Center.

Article 12. Business Registration and Establishment of Industrial Property Rights

1. Individuals engaged in innovative start-ups and innovative start-up enterprises operating at the Center when registering to establish a business shall be issued a business registration certificate within one working day from the date the Business Registration Department receives a valid business registration application.

2. Individuals engaged in innovative start-ups and innovative start-up enterprises operating at the Center shall be prioritized to complete procedures for establishing industrial property rights before the deadline upon request.

Article 13. Other Preferential Mechanisms and Policies

Individuals engaged in innovative start-ups and innovative start-up enterprises operating at the Center shall enjoy the following preferential mechanisms and policies:

1. They may mobilize and receive funding from government research funding programs and domestic and foreign businesses, organizations, and individuals in accordance with the law to implement ideas based on exploiting intellectual property, technology, new business models, and having rapid growth potential.

2. They shall enjoy the highest tax preferences stipulated by tax laws.

Chapter III

IMPLEMENTATION

Article 14. Responsibilities of Authorities

1. Based on the actual conditions of each period and stage of economic and social development, the Government shall consider and decide to apply part or all of the mechanisms and policies prescribed in this Decree to other innovation centers and start-up centers according to the specific circumstances of each period and stage of development of the Center.

2. The Ministry of Planning and Investment:

a) Shall submit to the Government or the Prime Minister to decide within their authority additional preferential mechanisms and policies to promote the activities of the Center, organizations and individuals operating at the Center, and special investment attraction projects in the Center suitable for each period and stage of development of the Center;

b) Shall take the lead and coordinate with the Ministry of Science and Technology and relevant agencies to submit to the Government for consideration and decision on the cases mentioned in Clause 1 of this Article;

c) Shall direct the Center in legally mobilizing resources to build and operate the Center in accordance with its objectives, functions, and tasks decided by the competent authority; issue regulations on the support provided by the Center as stipulated in Article 11 of this Decree within their authority.

3. The Ministry of Science and Technology:

a) Shall direct the Intellectual Property Office to implement procedures for establishing industrial property rights as stipulated in Clause 2 of Article 12 of this Decree;

b) Shall direct the Hoa Lac High-Tech Park Management Board to assist the Center in implementing procedures related to land, investment, construction, visas, foreign labor, and other tasks specified in this Decree;

c) Shall coordinate with the Ministry of Planning and Investment to submit to the Government for consideration and decision on the cases mentioned in Clause 1 of this Article to fulfill the State management functions of the Ministry of Science and Technology as prescribed by law.

4. The Ministry of Public Security shall guide the implementation of entry visa issuance as stipulated in Clause 1 of Article 5 of this Decree.

5. The Ministry of Finance shall propose to supplement preferential provisions on corporate income tax applicable to the subjects stipulated in Clause 3 of Article 9 of this Decree into the Corporate Income Tax Law and preferential provisions on land and tax applicable to the subjects stipulated in Clause 2 of Article 13 of this Decree into the Land Law and Tax Law for implementation.

6. Ministries and agencies at the level of ministries within their assigned functions, tasks, and authorities shall cooperate with the Ministry of Planning and Investment to support and promote start-up and innovation activities at the Center.

7. People's Committees of provinces and centrally governed cities:

a) Shall support the establishment and operation of the Center's bases located in their respective localities.

b) Connect the activities of local startup and innovation centers with those of the Center.

Article 15. Implementation Provisions

1. This Decree takes effect from October 5, 2020.

2. The Ministers, Heads of agencies at the level of ministries, Heads of agencies under the Government, and Chairpersons of People's Committees of provinces and centrally governed cities concerned shall be responsible for implementing this Decree./.