How to Evaluate High-Tech Enterprises?

The current Investment Law 2014 and Decision No. 19/2015/QD-TTg have adjusted the content in Article 18 of the High Technology Law No. 21/2008/QH12 regarding the criteria for evaluating high-tech enterprises.

First, the products manufactured by the enterprise must be included in the List of High-Tech Products Prioritized for Investment and Development as stipulated in Article 6 of the High Technology Law 2008. Specifically, these products must meet the following conditions:

• Have a high value-added ratio in the product value structure;

• Have high competitiveness and significant social and economic efficiency;

• Have the ability to export or substitute imported products;

• Contribute to enhancing national scientific and technological capabilities.

Second, the enterprise must implement environmentally friendly measures such as establishing wastewater and waste collection and treatment systems or using clean technology for production. Additionally, they must save production energy and manage product quality to meet Vietnamese or international standards and regulations if Vietnamese standards and regulations are not available.

Third, revenue from the company's high-tech products must account for at least 70% of the total annual net revenue. According to previous regulations, the average revenue from high-tech products over three consecutive years must be at least 60% of the total annual revenue, and from the fourth year onwards must exceed 70%.

Fourth, Decision No. 19/2015/QD-TTg has differentiated the conditions regarding the total expenditure on research and development activities conducted in Vietnam and the number of skilled laborers for high-quality enterprises into two cases: small and medium-sized enterprises, and enterprises with total capital over VND 100 billion. Specifically:

• Regarding the condition on total expenditure, the new law specifies that the total expenditure on research and development activities conducted in Vietnam must be compared against the total annual net revenue instead of the previous regulation which was based on the average annual expenditure.

For small and medium-sized enterprises, this ratio must be at least 1%. For enterprises with total capital over VND 100 billion and a total workforce exceeding 300 people, this ratio must be at least 0.5%.

• Regarding the condition on the number of skilled laborers, previously high-tech enterprises needed to have at least 5% of their total workforce with technical expertise from university education or higher, directly engaged in research and development.

Decision No. 19/2015/QD-TTg maintains this requirement for small and medium-sized enterprises. However, for enterprises with total capital over VND 100 billion and a total workforce exceeding 300 people, this ratio must be at least 2.5% but not less than 15 people.

In cases where the application for certification as a high-tech enterprise was submitted before August 1, 2015, but the certificate has not yet been issued, the enterprises will follow the conditions specified above to become a high-tech enterprise.

Source: thesaigontimes.vn

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