Regulations on technologies encouraged for transfer in Vietnam

What is technology transfer?

Pursuant to the Law on Technology Transfer 2017, technology transfer refers to the transfer of the ownership or the right to use a given technology from the party that has the right to transfer such technology to the transferee.

In particular, technology refers to a solution, process or know-how with or without accompanying instruments and facilities to convert resources into products.

Regulations on technologies encouraged for transfer in Vietnam (Internet image)

Technologies encouraged for transfer in Vietnam

Pursuant to Article 9 of the Law on Technology Transfer 2017, regulations on technologies encouraged for transfer are as follows:

(1) High technologies; accompanying machinery/ equipment of high technologies the transfer of which is encouraged under regulations of the law on high technologies.

(2) Advanced technologies, new technologies and clean technologies that are suitable for socio-economic conditions of Vietnam shall be encouraged for transfer from foreign countries to Vietnam or domestically if any of the following requirements is satisfied:

- Produce high-quality and highly competitive products against those produced by the existing technology of the same type;

- Produce national key products from domestic findings on scientific research and technological development;

- Generate new manufacturing and processing services/ industries/ sectors; breed/ cultivate new varieties which have been tested;

- Save resources, energy or fuels in comparison with the existing technology of the same type in Vietnam;

- Generate or use new or renewable energy; store energy in highly efficient way;

- Generate machinery/ equipment to improve educational and training quality; medical machinery/equipment and pharmaceutical products serving medical diagnosis and treatment, protection of human health and improve the physical strength for Vietnamese people;

- Discover, handle or forecast natural disasters or epidemic diseases; serve search and rescue activities; protect environment and cope with climate change and reduce the greenhouse gas emission;

- Assist the consistent production according production chains with high socio-economic efficiency;

- Create products which concurrently serve national defense, security and civil purposes;

- Develop and modernize traditional handicrafts.

(3) Technologies; machinery/equipment accompanying the technologies which are mentioned in Point d Clause 1 Article 4 of the Law on Technology Transfer 2017 and exist in Vietnam, excluding the technologies prescribed in Clause (1) and (2), Clause 2 Article 10 of the Law on Technology Transfer 2017; technologies operated by fuels which are domestically produced products or haft-way products are encouraged for transfer to foreign countries.

Prohibited acts in technology transfer in Vietnam

Pursuant to Article 12 of the Law on Technology Transfer 2017, prohibited acts in technology transfer include:

- Abusing technology transfer activities to harm national defense, security interests, human health, environment, social ethnics, customs and habits; harm the lawful rights and interests of an organization or individual; deteriorate natural resources or biodiversity.

- Carrying out the transfer of technologies which are banned from transferring; illegally transferring technologies which are restricted from transferring.

- Committing violations against regulations on rights to transfer technology.

- Committing deceits or frauds in making and performing technology transfer agreements, technology transfer service contracts, and technology-related contents specified in contracts or investment project dossiers.

- Obstructing the provision of, or refusing to provide information concerning technology transfer activities upon requests of regulatory authorities.

- Disclosing technological secrets inconsistently with the law or obstructing technology transfer activities.

- Using/applying technologies other than those approved or permitted by regulatory authorities

Mai Thanh Loi

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