Types of hi-tech operations in hi-tech parks in Vietnam as of March 25, 2024

Types of hi-tech operations in hi-tech parks in Vietnam as of March 25, 2024 (Internet image) 

Regarding this matter, LawNet would like to answer as follows:

On February 1, 2024, the Government issued Decree 10/2024/ND-CP on hi-tech parks in Vietnam

Types of hi-tech operations in hi-tech parks in Vietnam as of March 25, 2024

Pursuant to Article 27 of Decree 10/2024/ND-CP regulating types of high-tech activities in high-tech zones including: high-tech research and development; high technology application; high-tech incubation, high-tech business incubation; training high-tech human resources; fairs, exhibitions, high-tech demonstrations, demonstrations of high-tech products from research results, high-tech applications, and high-tech transfer; manufacturing and trading high-tech products; providing high-tech services.

Regulations on hi-tech research and development in Vietnam

Pursuant to Article 29 of Decree 10/2024/ND-CP on hi-tech research and development:

- Hi-tech research and development in hi-tech parks include: researching and mastering transferred and imported high technologies; decrypting high technologies; researching the utilization of inventions, testing and experimenting with the production of high technologies and new technologies replacing foreign-imported technologies; researching the completion and development of high technologies applicable to the production of new products and hi-tech products, provision of hi-tech services, and hi-tech transfer; providing hi-tech personnel training in association with the mentioned operations.

- Projects on investment in hi-tech research and development facilities at a hi-tech park shall, aside from satisfying the principles prescribed in Clauses 1, 2, 3, and 4 Article 28 of Decree 10/2024/ND-CP, satisfy the following criteria:

+ Having objectives, plans, and roadmaps for hi-tech research and development for short or long-term periods; having plans for transfer, cooperation, commercialization, and application of high technologies to create hi-tech products and services;

+ Technologies and products of the investment project conform with the list of high technologies prioritized for development investment of the list of hi-tech products encouraged for development enclosed with decisions of the Prime Minister of Vietnam.  If technologies and products of the investment project are new and advanced technologies not included in the mentioned lists, the Management Board of the hi-tech park shall submit a report to the Ministry of Science and Technology of Vietnam to request suggestions from the Prime Minister of Vietnam on approval for the research and development of such technologies and products of the investment project;

+ Creating high technologies for replacement of imported high technologies and application to the production of hi-tech products; creating key products of economic sectors for replacement of imported products;

+ Complying with quality control standards and technical regulations on the environment in the operational field of the investment project as prescribed by laws;

+ Satisfying the criteria for labor personnel and personnel carrying out the research and development, expense ratio, and expenditures on research and development, machines and devices for research and development according to regulations of the Ministry of Science and Technology of Vietnam.

Regulations on hi-tech personnel training in Vietnam

According to the provisions of Article 30 of Decree 10/2024/ND-CP on hi-tech personnel training:

- Hi-tech personnel training activities include: training persons with qualifications and skills satisfying the requirements for hi-tech research, development, and application; developing strong research teams and modern hi-tech research and training facilities; cooperating with universities and research facilities outside of the hi-tech park in providing training at university, master, and doctoral levels in several majors in association with prioritized hi-tech fields according to the Law on High Technologies and the list of high technologies prioritized for development investment; training and providing sources of highly qualified personnel sources for the operation of hi-tech product production lines and devices, providing hi-tech services, and managing hi-tech operations. 

- Projects on investment in hi-tech personnel training facilities at a hi-tech park shall, aside from satisfying the principles prescribed in Clauses 1, 2, 3, and 4 Article 28 of Decree 10/2024/ND-CP, satisfy the following criteria:

+ Training research personnel, managers, and technicians for the production of hi-tech products; attracting volunteer specialists who are foreigners and Vietnamese specialists residing abroad to participate in hi-tech personnel training at the hi-tech park;

+ Having specific roadmaps and plans for hi-tech personnel development; complying with Vietnam's regulations on training and development of personnel;

+ Orienting the establishment of strong scientific research collectives; developing hi-tech personnel training facilities reaching international standards.

Regulations on hi-tech incubation and hi-tech enterprise incubation in Vietnam

Pursuant to Article 31 of Decree 10/2024/ND-CP on Hi-tech incubation and hi-tech enterprise incubation:

- Projects selected by hi-tech incubation facilities or hi-tech enterprise incubation facilities shall, aside from satisfying the principles prescribed in Clauses 1, 2, 3, and 4 Article 28 of Decree 10/2024/ND-CP, create high technologies and hi-tech products included in the list of high technologies prioritized for development investment and the list of hi-tech products encouraged for development enclosed with decisions of the Prime Minister of Vietnam.

The Management Board of the hi-tech park shall monitor, supervise, and guide the selection of projects prescribed in Clause 1 of Article 31 of Decree 10/2024/ND-CP.

- Projects on hi-tech incubation or hi-tech enterprise incubation shall, aside from satisfying the principles prescribed in Clauses 1, 2, 3, and 4 Article 28 of Decree 10/2024/ND-CP, satisfy the requirements for hi-tech incubation facilities and hi-tech enterprise incubation facilities according to regulations of the Ministry of Science and Technology of Vietnam.

Regulations on application of high technologies to production of hi-tech products in Vietnam

According to Article 32 of Decree 10/2024/ND-CP on application of high technologies to production of hi-tech products:

- Projects on investment in the application of high technologies to the production of hi-tech products shall, aside from satisfying the principles prescribed in Clauses 1, 2, 3, and 4 Article 28 of Decree 10/2024/ND-CP, satisfy the following criteria:

+ Applied high technologies of the investment project are included in the list of high technologies prioritized for development investment enclosed with decisions of the Prime Minister of Vietnam;

+ Using energy thrifty and effectively;

+ The quality control system meets international standards;

+ Complying with technical standards and regulations on the environment in the operational field of the investment project as prescribed by Vietnamese laws, encouraging the achievement of international standards of the environment ISO 14000 or equivalences;

+ Satisfying the criteria for the ratio of revenues from the production of hi-tech products, labor personnel, personnel carrying out technological research, development, and application, the ratio of expenditures on technological research, development, and application, and technological lines according to regulations of the Ministry of Science and Technology of Vietnam.

- Export processing enterprises in a hi-tech park are enterprises established in the hi-tech park for the implementation of investment projects prescribed in this Article, specialized in the production of products for export and separated from the outside area according to regulations applicable to non-tariff zones according to import and export tariff laws.

Investment procedures and policies applicable to export processing enterprises shall comply with Clause 2 Article 16 of Decree 10/2024/ND-CP.

Regulations on hi-tech service provision in Vietnam

According to Article 33 of Decree 10/2024/ND-CP, projects on investment in the provision of hi-tech services shall, aside from satisfying the principles prescribed in Clauses 1, 2, 3, and 4 Article 28 of Decree 10/2024/ND-CP, ensure that the provided hi-tech services are included in the list of high technologies prioritized for development investment and the list of hi-tech products encouraged for development enclosed with decisions of the Prime Minister of Vietnam.

More details can be found in Decree 10/2024/ND-CP taking effect on March 25, 2024.

To Quoc Trinh

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