Decision No. 10/2021/QD-TTg prescribing criteria for identifying hi-tech enterprises

DECISION

Prescribing criteria for identifying hi-tech enterprises^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the November 13, 2008 Law on High Technologies;

Pursuant to the November 26, 2014 Law on Investment; and the June 17, 2020 Law on Investment;

At the proposal of the Minister of Science and Technology,

The Prime Minister promulgates the Decision prescribing criteria for identifying hi-tech enterprises.

Article 1. Scope of regulation

This Decision prescribes criteria for identifying hi-tech enterprises in accordance with the Law on High Technologies.

Article 2. Subjects of application

This Decision applies to enterprises turning out hi-tech products and providing hi-tech services in Vietnam, and related agencies and organizations.

Article 3. Criteria for identifying hi-tech enterprises

A hi-tech enterprise must satisfy the criteria specified at Points a and b, Clause 1, Article 18 of Law No. 21/2008/QH12 on High Technologies, which was amended and supplemented under Article 75 of Law No. 67/2014/QH13 on Investment, and Clause 3, Article 76 of Law No. 61/2020/QH14 on Investment, and the following criteria:

1. The enterprise’s revenue from hi-tech products equals at least 70% of its total annual net revenue.

2. The enterprise’s total expenses for research and development activities (including depreciation of infrastructure investment, fixed assets, annual current expenditures for research and development activities; expenses for training activities and training support for research and development employees of the enterprise, science and technology organizations and training institutions in Vietnam; royalties and charges for transfer of industrial property rights and licensing of industrial property objects for research and development activities; charges for registration for recognition or protection of inventions and utility solutions in Vietnam) to the total net revenue subtracting the annual input value (including the costs of raw materials and components for import production and domestic procurement) must:

a/ Equal at least 0.5%, for enterprises with a total capital of at least VND 6 trillion and the total of 3,000 or more employees;

b/ Equal at least 1%, for enterprises other than those specified at Point a, Clause 2 of this Article, with a total capital of at least VND 100 billion and the total of 200 or more employees;

c/ Equal at least 2%, for enterprises other than those specified at Points a and b, Clause 2 of this Article.

3. Compared to its total workforce, the number of employees holding collegial or higher degree (who have signed labor contracts with a term of 1 year or more or indefinite-term labor contracts in which the rate of employees holding collegial degree does not exceed 30%) personally involved in research and development activities, must:

a/ Account for at least 1%, for enterprises with a total capital of at least VND 6 trillion and the total of 3,000 or more employees;

b/ Account for at least 2.5%, for enterprises other than those specified at Point a, Clause 3 of this Article, with a total capital of at least VND 100 billion and the total of 200 or more employees;

c/ At least 5%, for enterprises other than those specified at Points a and b, Clause 3 of this Article.

Article 4. Transitional provisions

Enterprises that have submitted dossiers of application for hi-tech enterprise certificates before the effective date of this Decision but not yet been granted such certificates shall comply with the criteria provided in this Decision.

Article 5. Implementation provisions

1. This Decision takes effect on April 30, 2021, and replaces the Prime Minister’s Decision No. 19/2015/QD-TTg of June 15, 2015, prescribing criteria for identifying hi-tech enterprises.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decision.-

Prime Minister
NGUYEN XUAN PHUC