What are the contents of Science and Technology Development Funds of the enterprises in Vietnam?

What are the contents of Science and Technology Development Funds of the enterprises in Vietnam?

Pursuant to Article 10 of the Decree 76/2018/ND-CP stipulating Science and Technology Development Funds of the enterprises in Vietnam as follows: 

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.

In Vietnam, what incentives shall enterprises that cooperate with the authorities, organizations or individuals to develop technology innovation projects or innovative startups receive?

Pursuant to Article 12 of the Decree 76/2018/ND-CP stipulating encouraging cooperation between enterprises and authorities or organizations or individuals in developing technology innovation projects, innovative startups, or upgrading infrastructure facilities to serve science and technology development and general research activities in Vietnam as follows: 

1. Enterprises that cooperate with the authorities, organizations or individuals to develop technology innovation projects or innovative startups shall:

a. Be supported as prescribed in Article 8 hereof for the technology innovation projects having a technology transfer agreement or a Technology Transfer Registration Certificate (if the entities must register for technology transfer) and belonging to investment incentive sectors and geographical areas.

b. Be entitled to the supports which are specified in point a, b, c, clause 1, Article 15 hereof and are given to the individuals who participate in technology innovation projects

c. Be prioritized to include science and technology task in the list of tasks of National Technology Innovation Program, science and technology programs which support technology innovation and innovative startups, and science and technology development funds of departments, ministerial agencies, governmental agencies, provincial agencies and agencies of central-affiliated cities. 

d. Be allowed to hire technological labor, carry out a survey on market demand, hire equipment, use laboratories and technical bases for completing and developing products and business model for innovative startups which receive initial investments from the investors or organizations supporting the startups.

2. Enterprises that cooperate with the authorities, organizations or individuals to execute the project on investing and developing infrastructure facilities to serve science and technology development shall:

a. Be prioritized to invest in high-tech park under the projects which satisfy the conditions for high technology.

b. Be encouraged to engage in public-private partnership and be entitled to incentives as prescribed in the law on investment regarding the projects on research activities, manufacture, experimental production, technology incubation, and science and technology business incubation.  The project execution shall be carried out in accordance with the law on investment and under the form of public-private partnership.

c. Be entitled to financial supports for repairing and using incubation facilities, technical facilities, common working areas in innovative incubation and startups; investment in equipment commonly used for innovative incubation and startups; installation of information technology infrastructure and internet services free of charge for incubation and technical facilities, common working areas.

3. Enterprises that cooperate with the authorities, organizations or individuals to develop general research projects shall:

a. Be prioritized to include the bilateral or multilateral cooperation programs in the list of science and technology tasks regarding the general cooperation research whose participated entities are foreign organizations or individuals.

b. Be supported to announce new technologies and new products from the outcomes of general cooperation research which is stipulated in Article 26 hereof.  

c. Be supported to develop and use the R&D findings as prescribed in Article 24 hereof.

d. Be considered for receiving financial supports if they satisfy the regulations in Article 19 hereof.

Best regards!