Vietnam: The science and technology enterprise will be revoked certificate if its profit fails to account for at least 30% of total revenue

According to the Article 10 of the Decree No. 13/2019/NĐ-CP of the Government of Vietnam, cases of revocation of the science and technology enterprises (STE) certificate are specified as follows:

- The enterprise having its certificate of enterprise registration revoked;

- The enterprise having the profit earned from production of and trade in science and technology products fails to account for at least 30% of total revenue of the enterprise in 5 consecutive years; except for the case in which the enterprise has operated less than 5 years from the day on which the STE Certificate is issued;

- The enterprise fails to send reports for 3 consecutive years as regulated;

- The STE Certificate is issued ultra vires or against established procedures;

In case of certificate revocation, the enterprise shall not continue to enjoy benefits from incentive and support policies intended for STEs.

Moreover, according to Clause 2 Article 10 of the Decree No. 13/2019/NĐ-CP, there are cases of the STE Certificate’ validity canceled listed as following:

- The enterprise infringes the property rights or use rights of the scientific and technological achievements provided in the application for certificate;

- The enterprise falsifies the information provided in the application for the STE Certificate.

In case the STE Certificate is invalidated, the enterprise is required to return the provided funding and pay compensations for the benefits enjoyed and face penalties as per law provisions.

Note: The authority competent to revoke the STE Certificate and cancel validity thereof shall send a written notification of such revocation or cancellation to agencies relating to implementation of incentive and support policies intended for STEs and post information about such revocation or cancellation on its website within 30 working days from the day on which the decision on certificate revocation or validity cancellation is issued.

More details at the Decree No. 13/2019/NĐ-CP of the Government of Vietnam, takes effect from March 20, 2019 and replaces the Decree No. 80/2007/NĐ-CP.

Le Thanh

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