CIRCULAR

AMENDMENTS TO SOME ARTICLES OF THE CIRCULAR NO. 32/2011/TT-BKHCN DATED NOVEMBER 15, 2011 OF THE MINISTER OF SCIENCE AND TECHNOLOGY ON CRITERIA FOR DETERMINING HI-TECH APPLICATION PROJECTS AND INVESTMENT PROJECTS ON HI-TECH PRODUCT MANUFACTURE AND APPRAISAL OF APPLICATIONS FOR ISSUANCE OF CERTIFICATES OF HI-TECH APPLICATION ACTIVITIES, NEW ENTERPRISES ESTABLISHED UNDER INVESTMENT PROJECTS ON HI-TECH PRODUCT MANUFACTURE AND HI-TECH ENTERPRISES

Pursuant to the Law on High Technologies dated November 13, 2008;

Pursuant to the Government’s Decree No. 95/2017/ND-CP dated August 16, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Science and Technology;

Pursuant to the Prime Minister’s Decision No. 55/2010/QD-TTg dated September 10, 2010 providing guidance on authority and procedures for certifying organizations and individuals conducting hi-tech activities, certifying organizations and individuals researching and developing high technologies and certifying hi-tech enterprises;

At the request of the Director General of the Department of Legal Affairs, the Director General of the Department of High Technology and the Director General of the Department of Technology Appraisal, Examination and Assessment;

The Minister of Science and Technology hereby promulgates a Circular on amendments to some articles of the Circular No. 32/2011/TT-BKHCN dated November 15, 2011 of the Minister of Science And Technology on criteria for determining hi-tech application projects and investment projects on hi-tech product manufacture and appraisal of applications for issuance of certificates of hi-tech application activities, new enterprises established under investment projects on hi-tech product manufacture and hi-tech enterprises (hereinafter referred to as “the Circular No. 32/2011/TT-BKHCN”).

Article 1. Amendments to some Articles of the Circular No. 32/2011/TT-BKHCN

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"a) The technology applied in the project is on the list of high technologies given investment and development priority promulgated together with the Prime Minister’s Decision;”

 “c) Personnel for participation in research, development and application of technologies of the project in any of the following cases:

-  Case 1: If the project’s capital is at least VND 6,000 billion and the total number of employees of the project is at least 3,000, the number of employees having a college degree or higher and directly engaged in technology research, development, experimental development and trial production must account for at least 1% of the total number of employees.

- Case 2: If the capital of a project other than that specified in case 1 is at least VND 100 billion and the total number of employees of the project is at least 200, the number of employees having a college degree or higher and directly engaged in technology research, development, experimental development and trial production must account for at least 2.5% of the total number of employees.

- Case 3: In the case of a project other than that specified in case 1 or case 2, the number of employees having a college degree or higher and directly engaged in technology research, development, experimental development and trial production must account for at least 5% of the total number of employees.

The number of employees having a college degree or higher as prescribed in this point must not exceed 30% of the total number of employees directly engaged in technology research, development, experimental development and trial production;”

“d) Expenditure on research, development and application of technologies of the project in any of the following cases:

- Case 1: If the project’s capital is at least VND 6,000 billion and the total number of employees of the project is at least 3,000, the annual expenditure on technology research, development, experimental development and trial production must account for at least 0,5% of the added value generated from the project in Vietnam.

- Case 2: If the capital of a project other than that specified in case 1 is at least VND 100 billion and the total number of employees of the project is at least 200, the annual expenditure on technology research, development, experimental development and trial production must account for at least 1% of the added value generated from the project in Vietnam.

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The added value generated from the project in Vietnam as prescribed in this point equals the total net revenue minus the input value of imported or domestically purchased production materials.

Specific expenditures on annual technology research, development and application activities of the project in accordance with regulations in this point:

- Royalty fees under contracts for transfer of high technology applied in projects and granted certificate of technology transfer registration by a competent authority (unless the registration is not required by law on technology transfer);”

 “dd) The project’s quality management system meets TCVN ISO 9001, HACCP, CMM, GMP or equivalent certificate (depending on whether the national or international standard is applied);”

“e) It applies eco-friendly and energy-efficient measures to production and product quality management satisfying Vietnam's standards and technical regulations; where no Vietnamese standard or technical regulation is available, standard of the specialized international organization shall apply.

The application of such international standards on environment or efficient energy management as ISO 14000 or equivalent standard; ISO 50001 or equivalent standard is encouraged.”.

2. Points a, c and dd clause 1 of Article 3 are amended as follows:

“a) It makes hi-tech products and applies hi-tech services on the list of hi-tech products given development priority promulgated together with the Prime Minister’s Decision;”

“d) Its quality management system meets TCVN ISO 9001, HACCP, CMM, GMP or equivalent certificate (depending on whether the national or international standard is applied);”

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The application of such international standards on environment or efficient energy management as ISO 14000 or equivalent standard; ISO 50001 or equivalent standard is encouraged.”.

3. Clauses 1 and 2 of Article 7 are amended as follows:

“1. The cost of processing applications and carrying out inspection shall be covered by the science and technology funding, which is annually provided by the Ministry of Science and Technology to the Registration Office of Science and Technology Activities.

2. Expenditures and specific expenditures are specified under the Joint Circular No. 55/2015/TTLT-BTC-BKHCN dated April 22, 2015 of the Minister of Finance and the Minister of Science and Technology.”.

4. Clauses 3 of Article 9 is amended as follows:

“3. The Registration Office of Science and Technology Activities shall annually examine reports submitted by organizations and individuals and inspect the fulfillment of the criteria by enterprises as prescribed after being issued with the Certificate.”.

5. The forms promulgated together with the Circular No. 32/2011/TT-BKHCN are replaced with those promulgated together with this Circular.

6. The phrase “Văn phòng Chứng nhận hoạt động công nghệ cao và doanh nghiệp khoa học và công nghệ” (“Certification Office of Hi-Tech Activities and Science & Technology Enterprises” in Articles 4, 5, 6, 7 and 9 is changed into the phrase “Văn phòng Đăng ký hoạt động khoa học và công nghệ” (“Registration Office of Science and Technology Activities”).

Article 2. Effect

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2. Difficulties that arise during the implementation of this Circular should be promptly reported in writing to the Ministry of Science and Technology for consideration and resolution.

Article 3. Grandfather clause

1. From the effective date of this Circular, any organization or individual issued with the Certificate as prescribed in the Circular No. 32/2011/TT-BKHCN may apply the criteria set out in Article 1 of this Circular to prepare their annual performance report.

2. Where any organization or individual submitted an application for issuance of the Certificate before the effective date of this Circular but it has yet to be processed, they shall apply the criteria set out in Article 1 of this Circular to complete their application./.

PP. THE MINISTER
THE DEPUTY MINISTER




Bui The Duy