Some new points of the Law on Technology Transfer Vietnam (amended)

The amended Law on Technology Transfer of Vietnam consists of 6 Chapters, 60 Articles. This Law deals with the transfer of technologies in Vietnam, from foreign countries to Vietnam and vice versa; rights and obligations of organizations and individuals participating in technology transfer activities; appraisal of technology applied to investment projects; technology transfer agreements; measures to encourage the technology transfer, development of the science and technology market; state management of technology transfer.

Vietnam Academy for Water Resources would like to point out some new and different points of the amended Law on Technology Transfer as follows:

New regulations on technology transfer agreements: the Law on Technology Transfer 2006 only requires the parties to sign, seal and initialize the parties, affix a border stamp on the pages of the contract and the appendix if one of the parties is an organization when there is a need to register the contract. However, according to the amended Law on Technology Transfer, the agreement must be signed and sealed (if any) by the parties; all pages of the agreement or its appendices must be initialed and sealed (if any).

On the other hand, the amended Law also stipulates that the language used in the agreement shall be agreed upon by the parties (annulling the provision that in the case of a transaction in Vietnam, there must be a contract in Vietnamese). Technology transfer agreement must be registered with science and technology authorities in the following cases, excluding the transfer of technologies restricted from transferring which have been granted technology transfer permit: Transfer of technology from a foreign country to Vietnam; Transfer of technology from Vietnam to a foreign country; Domestic technology transfer with use of state funding or state budget, excluding cases where Certificate of registration of science and technology task outcomes is available.

Transferable technologies specified in Article 4 of the amended Law on Technology Transfer of Vietnam include: Technical know-how and technological know-how; Technology plans or processes; engineering solutions, parameters, drawings or diagrams; formula, computer software and database; Solutions for rationalization of production and technology innovation; Accompanying machinery and/or equipment of transferable technologies mentioned in Points a, b and c of this Clause.

Moreover, in Chapter I, there are new regulations such as: Independent technology transfer contract (Article 5 - Forms of technology transfer); A technology owner shall have the right to transfer the ownership or the right to use such technology (Article 7 - Rights to make technology transfer); An organization or individual that has the right to transfer technology as prescribed in Article 7 herein is entitled to make capital contribution by technology to investment projects; in case of investment project funded by the State, the technology which is used to make capital contribution to such project must be valued in accordance with regulations of law (Article 8 - Technologies encouraged for transfer).

In Chapter II on appraisal on technology applied to investment project, the amended Law on Technology Transfer of Vietnam supplements new Articles 13, 14, 15, 16, 17, 18, 19, 20, 21. In particular: According to Article 13 - Appraisal or comment on technology applied to investment project, “In course of issuing investment policies, the appraisal of technologies which are applied to the investment projects funded by public budget shall be performed under regulations of the law on public investments”; According to Article 14 - Power to appraise or comment on technology in the phase of issuing investment policy, “The power to appraise technology applied to the investment project that uses public investment shall comply with regulations of the law on public investment”.

According to Article 31 - Registration of technology transfer, “Technology transfer agreement and part of technology transfer laid down in Clause 2 Article 5 herein must be registered with science and technology authorities in the following cases, excluding the transfer of technologies restricted from transferring which have been granted technology transfer permit: Transfer of technology from a foreign country to Vietnam; Transfer of technology from Vietnam to a foreign country; Domestic technology transfer with use of state funding or state budget, excluding cases where Certificate of registration of science and technology task outcomes is available”.

In addition, also in Article 31, “Within 90 days from the conclusion of the technology transfer agreement, the party that is obliged to apply for registration of technology transfer shall send an application for Certificate of registration of technology transfer to the science and technology authority”.

According to Article 36 - Promoting commercialization of findings on scientific research and technological development, “Findings on scientific research and technological development which are considered as public property shall be managed and used in accordance with regulations of the law on management and use of public property”.

Particularly, according to Article 52 - Technology transfer in agriculture, “The transfer of technological advances in varieties, products, production process, technical solutions and management solutions in the field of agriculture is encouraged; Minister of Agriculture and Rural Development shall promulgate the List of technological advances in varieties, products, production process, technical solutions and management solutions encouraged for transfer in the field of agriculture; criteria, formalities and procedures for certification of technological advances”.

Source: Vietnam Academy for Water Resources

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