Regulations on the Transfer of Assets Resulting from Scientific and Technological Tasks

Noticeably, the regulations on the management and handling of assets resulting from scientific and technological tasks (S&T). To be specific:

Assignment of assets resulting from S&T tasks funded by the state budget:

- Priority to grant the right to use by recording an increase in assets for the organization in charge of implementing the task, which is a state agency, public service provider, unit of the People's armed forces, agency of the Communist Party of Vietnam, political-social organization, for researching, developing technology, technological products, application, and commercialization of research results.- Priority to grant ownership rights by recording an increase in state capital for the organization in charge of implementing the task, which is a 100% state-owned enterprise;- Priority to grant ownership rights to the organization or individual in charge in case the organization or individual in charge proposes to receive ownership rights and compensates for the value of the assets;- If the above-mentioned organizations or individuals in charge do not have a need or do not receive ownership rights, the competent authorities shall consider granting ownership rights to other organizations or individuals proposing to receive ownership rights and compensating for the value of the assets;- If the provision for granting ownership rights to other organizations or individuals proposing to receive ownership rights and compensating for the value of the assets is not applicable, the provision for granting the right to use the assets to the organization or individual in charge will be applied for the organization or individual in charge to continue research, develop technology, technological products, application, and commercialization of scientific research and technological development results.

According to the regulations, the organization or individual in charge must have an application and commercialization plan, a profit distribution plan that ensures the state’s interests, and must report to the management agency on the application and commercialization results (accompanied by the independently audited financial report of the organization in charge);

Within 03 years from the date of asset assignment, if the organization or individual does not use the assets for application and commercialization or does not submit an annual report on the application and commercialization results (accompanied by the independently audited financial report) or fails to distribute profits to the state when commercializing, the state will reclaim the assets. In special cases requiring extension, the competent authorities will approve the asset handling plan for an extension not exceeding 05 years from the initial date of asset assignment.

Assignment of assets resulting from S&T tasks funded by state-supported budget:

According to the regulations, the handling of assets resulting from state-supported S&T tasks must be reflected in the co-ownership contract with the principles:

- Grant ownership without reclaiming the support funds to the organization or individual in charge of tasks where the state supported up to 30% of the total capital and S&T programs approved by the Prime Minister of the Government of Vietnam;- Grant ownership of state-owned results to the organization or individual in charge in case the organization or individual in charge also invests in facilities, technical equipment, and finances for the task and proposes to receive assignment through compensating for the value of the assets resulting from tasks supported by more than 30% of the total capital. If not, the co-owners will agree to grant ownership to the organization or individual in charge, who must compensate for the value of the assets;- If there is no need to receive ownership rights, the assets should be granted to another organization or individual, who must compensate for the value of the assets resulting from the S&T task;- If the above-listed cases are not applicable, the grant of usage rights of the state's share of the assets results to the organization or individual in charge to continue research, developing technology, application, and commercialization of scientific research and technological development results. The organization or individual in charge must have an application and commercialization plan, a profit distribution plan that ensures the state's interests, and must report to the management agency on the application and commercialization results (accompanied by the independently audited financial report);- Within 03 years from the date of asset assignment, if the organization or individual does not use the assets for application and commercialization or does not submit an annual report on the application and commercialization results (accompanied by the independently audited financial report) or fails to distribute the state's share of profits when commercializing, the state will reclaim the ownership rights according to legal regulations. In special cases requiring extension, the competent authorities will approve the asset handling plan for an extension not exceeding 05 years from the initial date of asset assignment. Compliance with reporting policies and the application and commercialization effectiveness is one of the criteria for considering other S&T tasks;

Decree 70 stipulates that the agency assigned by the state to sign the contract shall be responsible for its concluded terms. If asset handling contents in the signed contract are not in accordance with the stated principles, asset handling shall proceed according to legal regulations. Agencies or individuals signing non-conforming contracts must compensate for damages according to legal regulations and be handled according to public property laws and related legislation.

Procedures for transferring ownership, usage rights of assets resulting from state-supported S&T tasks

- Within 60 days from the date the task is evaluated and accepted as satisfactory, the organization or individual in charge must prepare a report on assets (with specific descriptions of asset information and establishment costs) accompanied by related dossiers, submitted to the agency assigned to manage the S&T task and other co-owners.- If the contract stipulates that the organization or individual in charge of the task is to receive ownership or usage rights, they must prepare a dossier for asset transfer and send it to the co-owners along with the asset report.- The dossier for asset transfer shall comply with legal provisions.- Within 30 days from the full and valid dossier receipt from the organization or individual in charge, the competent authority shall decide on the transfer of ownership or usage rights as stipulated in the S&T contract.- If the contract stipulates the plan to transfer ownership to another organization or individual, who must compensate for the value of the assets resulting from the S&T task, the organization or individual in charge shall cooperate with the management agency and other co-owners to organize the transfer of ownership according to the regulations.- If the contract stipulates that the organization or individual in charge of the task is to receive ownership or usage rights but does not accept it, they will be handled according to legal regulations; assets resulting from the task shall be handled as follows:- If the decision authority stipulated in the contract belongs to the state, the competent authority shall decide to transfer ownership or usage rights to another organization or individual according to the regulations;- If the decision authority stipulated in the contract does not belong to the state, the co-owners shall decide to transfer ownership or usage rights to another organization or individual according to the contract or civil law. The agency or competent authority assigned to sign the contract must participate in the decision-making process to ensure the state's interests.

For more details, refer to Decree 70/2018/ND-CP effective from May 15, 2018.

-Thao Uyen-

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