What are the investment contents of science and technology development funds of enterprises in Vietnam?
- What are the investment contents of science and technology development funds of enterprises in Vietnam?
- What are the penalties imposed upon enterprises for failing to inform establishment of the science and technology development fund to competent regulatory authorities?
- How long is the limitation period of an administrative penalty imposed upon an enterprise that establishes a Science and Technology Development Fund without notifying competent regulatory authorities?
What are the investment contents of science and technology development funds of enterprises in Vietnam?
Pursuant to Article 10 of Decree No. 76/2018/ND-CP stipulating the science and technology development funds of enterprises as follows:
Science and Technology Development Funds of the enterprises
1. The investment contents of the science and technology development fund of the enterprise mentioned in clause 2, Article 35 of the Law on Technology Transfer shall include:
a. Investment in and counterpart funds for innovative startups.
b. Technology innovation, technology incubation, science and technology business incubation, and commercialization of findings on scientific research and technological development.
c. Reverse engineering and investment in technical facilities for reverse engineering.
d. The hire of domestic or foreign organizations or individuals for counseling and managing the investment activities of the enterprise's science and technology development fund as prescribed in the agreement between both parties.
2. The investment and counterpart fund for innovative startups shall be carried out under the following forms:
a. Contribute capital for establishing an innovative startup enterprise.
b. Purchase holdings and contributed capital of the innovative startup enterprise.
c. Contribute capital to the innovative startup investment fund.
d. Cooperate in business.
3. The activities of investment and counterpart fund specified in clause 2 of this Article shall be carried out in the main field or business lines of the enterprise and shall comply with the regulations in the Law on Investment, Law of Enterprises and the Law on Provision of Assistance for Small and Medium-seized Enterprises, and other relevant laws.
4. The State Enterprise shall carry out the activities specified in clause 2 of this Article and shall comply with the regulations on managing and using state budget to invest in the enterprise's production and business.
Thus, the investment contents of the science and technology development fund of the enterprise shall include:
+ Investment in and counterpart funds for innovative startups.
+ Technology innovation, technology incubation, science and technology business incubation, and commercialization of findings on scientific research and technological development.
+ Reverse engineering and investment in technical facilities for reverse engineering.
+ The hire of domestic or foreign organizations or individuals for counseling and managing the investment activities of the enterprise's science and technology development fund as prescribed in the agreement between both parties. 
What are the investment contents of science and technology development funds of enterprises in Vietnam?
What are the penalties imposed upon enterprises for failing to inform establishment of the science and technology development fund to competent regulatory authorities?
According to the provisions of Point a, Clause 1, Article 13 of Decree No. 51/2019/ND-CP on violations against regulations on registration, management and use of the science and technology development fund as follows:
Violations against regulations on registration, management and use of the science and technology development fund
1. Imposing the fine ranging from 4,000,000 dong to 8,000,000 dong for one of the following violations:
a) Failure to inform establishment of the science and technology development fund to competent regulatory authorities in charge of science and technology in accordance with regulations in force;
b) Failure to report on setting up and using the science and technology development fund upon the request of competent regulatory authorities.
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According to Clauses 2 and 3, Article 3 of Decree No. 51/2019/ND-CP stipulating penalty forms, rates and imposition authority as follows:
Penalty forms, rates and imposition authority
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2. The maximum fine imposed on individuals and organizations involved in scientific and technological activities or technology transfer shall be 50,000,000 dong and 100,000,000 dong, respectively.
3. The fine rate specified in Chapter II herein shall be applied to violating individuals. Organizations committing the same violations shall have to pay 02 times as much as the fine rate applied to individuals.
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Thus, enterprises that establish the Science and Technology Development Fund without notifying the competent regulatory authorities may be administratively penalized with a fine ranging from VND 8,000,000 to VND 16,000,000.
How long is the limitation period of an administrative penalty imposed upon an enterprise that establishes a Science and Technology Development Fund without notifying competent regulatory authorities?
According to Point a, Clause 1, Article 6 of the 2012 Law on Handling of Administrative Violations in Vietnam, as amended by Point a, Clause 4, Article 1 of the 2020 Law on Amendments to Law on Handling of Administrative Violations in Vietnam on the limitation period for imposition of an administrative penalty as follows:
Limitation period for imposition of an administrative penalty
1. The limitation period for imposition of an administrative penalty is regulated as follows:
a) The limitation period for imposition of an administrative penalty shall be 01 year, except in the following cases:
The limitation period for imposition of sanctions against administrative violations arising from the following sectors and activities: accounting; invoices; fees and charges; insurance business; price management; securities; intellectual property; construction; fishery; forestry; investigation, planning, exploration, extraction and use of water resources; oil and gas and other mining activities; environmental protection; atomic energy; management and development of houses and offices; land; levees; press; publishing; commodity production, export, import and trading; manufacturing and trading of banned and counterfeit goods; foreign worker management, the statute of limitations for sanctioning administrative violations, shall be 02 years.
The limitation period for imposition of sanctions against administrative violations arising from taxes shall be subject to laws on tax administration;
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According to the above provisions, the limitation period of an administrative penalty imposed upon enterprises establishing a science and technology development fund without notifying competent regulatory authorities is 01 year.
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