Application and procedures for issuance of technology transfer permit in Vietnam

Application and procedures for issuance of technology transfer permit in Vietnam (Internet image)

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

1. Application and procedures for issuance of technology transfer permit in Vietnam

Application and procedures for issuance of technology transfer permit under Article 30 of the Law on Technology Transfer 2017 are as follows:

- An application for a technology transfer permit includes:

+ The application form for a technology transfer permit, which specifies the parties’ responsibility to ensure the compliance of contents of the technology transfer agreement with relevant laws;

+ Proof of legal status of the parties entering into the technology transfer agreement;

+ The original in Vietnamese or the certified copy of the technology transfer agreement. In case of unavailability of the technology transfer agreement in Vietnamese language, the notarized or certified translation into Vietnamese language shall be submitted;

+ The list of documents concerning technology, machinery, equipment (if any) enclosed with the technology transfer agreement;

+ The certified copy of IP Rights Certificate for objects subject to IP Rights protection (if any);

+ Quality standards of products created by applying the transferred technology;

+ Explanation for conditions for using technology;

+ The written record of valuation of transferred technology in case the transferee uses state funding.

- Upon the receipt of approval for technology transfer from the Ministry of Science and Technology, the parties shall conclude a technology transfer agreement.

- Within 60 days from the conclusion of the technology transfer agreement, the party that is obliged to apply for a technology transfer permit shall send an application for a technology transfer permit to the Ministry of Science and Technology.

- Within 05 working days from the receipt of application, the Ministry of Science and Technology shall consider and request the applicant to supplement the application in accordance with regulations.

Within 60 days from the receipt of the written request for supplementation of the application, the applicant must supplement required documents or submit an application for extension of deadline for supplementing documents.

The extension given to supplement the application shall not exceed 60 days. Over this period, if the applicant fails to supplement required documents, the Ministry of Science and Technology shall give a written notification of refusal to issue the technology transfer permit and return the application as requested.

- Within 15 working days from the receipt of sufficient application, the Ministry of Science and Technology shall process the application and grant a technology transfer permit to the applicant. If the application is refused, a written response which specifies reasons thereof shall be given.

- In case of change in contents of a technology transfer permit, the applicant must carry out procedures for a new permit.

- Minister of Science and Technology is responsible for promulgating the template of the application form for a technology transfer permit and the technology transfer permit template.

2. Price for technology transfer and payment method in Vietnam

Price for technology transfer and payment method according to Article 27 of the Law on Technology Transfer 2017 are as follows:

- The price for transferring technology shall be subject to agreement between the parties.

- The payment may be made by adopting any of the following methods:

+ One-off or multiple payments in cash or by goods;

+ Transfer of technology value as capital contribution to the investment project or enterprise under regulations of law;

+ Payment by percentage (%) of the net selling price;

+ Payment by percentage (%) of the net revenue;

+ Payment by percentage (%) of the earnings before income taxes of the transferee;

+ Other payment method as agreed upon by the parties.

- The price of transferred technology must be audited and applied in accordance with regulations of the Law on taxation and prices in the following cases:

+ Technology is transferred between the parties among which one or both parties have state funding;

+ Technology is transferred between the parties having parent company-subsidiary company relationship;

+ Technology is transferred between the parties having association relationship as prescribed by the law on taxation.

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