Decree No. 94/2020/ND-CP on preferential mechanisms and policies for the National Innovation Center

DECREE

On preferential mechanisms and policies
for the National Innovation Center
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Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Investment dated November 26, 2014;

Pursuant to the Law on Support for Small- and Medium-sized Enterprises dated June 12, 2017;

Pursuant to the Law on Personal Income Tax dated November 21, 2007;

Pursuant to the Law on Enterprise Income Tax dated June 03, 2008 and the Law dated June 19, 2013 amending and supplementing a number of articles of the Law on Enterprise Income Tax;

Pursuant to the Law dated November 26, 2014 amending and supplementing a number of articles of the Laws on Taxes;

Pursuant to the Law on Bidding dated November 26, 2013;

Pursuant to the Law on Land dated November 29, 2013;

Pursuant to the Law on the State Budget dated June 25, 2015;

Pursuant to the Law on Export and Import Duties dated April 06, 2016;

Pursuant to the Law on Management and Use of Public Assets dated June 21, 2017;

Pursuant to the Law on Public Investment dated June 13, 2019;

At the proposal of the Minister of Planning and Investment;

The Government promulgates the Decree on preferential mechanisms and policies for the National Innovation Center.

Chapter I
GENERAL PROVISIONS
 

Article 1. Scope of regulation

This Decree prescribes a number of preferential mechanisms and policies for the National Innovation Center (hereinafter referred to as NIC) established under the Prime Minister’s Decision No. 1269/QD-TTg dated October 02, 2019, organizations and individuals working at the NIC and its innovation support partners.

Article 2. Subjects of application

1. The NIC and its affiliates within the territory of the Socialist Republic of Vietnam.

2. Domestic and foreign organizations and individuals working at the NIC.

3. Innovation support partners of the NIC.

4. Other relevant organizations and individuals.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. A creative entrepreneur means a person who researches and develops new ideas, and sells new products, services, or business models.

2. An innovative start-up means an enterprise which is legally established to realize ideas based on intellectual property, new technologies and business model with a possibility of rapid growth.

3. An innovation support partner is an organization or individual that cooperates with the NIC to invest in, build, or provide equipment, auxiliary facilities, and support services for research, development, experiment, testing, trading, education and training, consultancy, and other activities in order for the NIC to perform its functions and duties.

Chapter II

PREFERENTIAL MECHANISMS AND POLICIES FOR THE NIC AND CREATIVE ENTREPRENEURS, INNOVATIVE START-UPS OPERATING AT THE NIC

Section 1
GENERAL PREFERENTIAL MECHANISMS AND POLICIES

Article 4. Preferential mechanisms and policies to encourage overall development

1. The State shall encourage and adopt preferential and support mechanisms and policies to create the most favorable environment for research, development, trading and investment at the NIC in order to attract domestic and foreign talents and experts, large technological corporations, and enterprises at home and from technologically developed countries to realize the ideas based on intellectual property, new technologies and business models with a possibility of rapid growth.

2. The NIC shall enjoy the highest preferential mechanisms and policies and the most favorable administrative procedures in accordance with the law provisions in order to support and develop a start-up and innovation ecosystem, contributing to renovating growth models on the basis of scientific and technological development.

3. Innovative startups, telecommunication companies, information technology companies, automation companies and other related enterprises shall be prioritized and encouraged to set up their research and development offices and departments in the NIC in order to develop the innovation ecosystem of the NIC.

Article 5. Visas and foreign employees

1. Foreigners shall be considered for multiple entry visas with the validity consistent with the period they work directly at the NIC under the guidance of the Ministry of Public Security, including:

a) Individuals working at the NIC include employees, experts, scientists of the NIC, of the innovative start-ups operating at the NIC, of innovation support partners, and the creative entrepreneurs;

b) Family members (including biological parents, spouses, children or adopted children under 18 years old) of the individuals prescribed at Point a of this Clause.

2. Overseas Vietnamese and foreign experts working at the NIC shall be granted work permits by the Management Board of the Hoa Lac Hi-Tech Park with simplified procedures and order.

3. The Head of the Management Board of the Hoa Lac Hi-Tech Park shall decide to approve the NIC's plan on use of foreign employees at its affiliate in the Hoa Lac Hi-Tech Park.

Article 6. Investment credit incentives

1. Investment projects of creative entrepreneurs and innovative start-ups operating at the NIC and the NIC's investment projects falling under the list of projects eligible to borrow State investment credit shall enjoy preferential loans for State investment credit at the Vietnam Development Bank in accordance with the law provisions.

2. The NIC, creative entrepreneurs and innovative start-ups operating at the NIC are entitled to receive grants, aids, loans and loan guarantees from the National Technology Innovation Fund, the National Science and Technology Development Fund, the Small- and Medium-sized Enterprise Development Fund and the science and technology development funds of the provinces and municipalities in accordance with the law provisions.

Section 2

PREFERENTIAL MECHANISMS AND POLICIES FOR THE NIC
 

Article 7. Incentives on land and operational premises

1. The NIC is entitled to rent land for 50 years in the hi-tech zones and is exempt from all land rentals for the entire lease term.

2. The affiliate of the NIC in the Hoa Lac Hi-Tech Park shall:

a) Be exempt of infrastructure charges for the land areas it rents in the areas subject to payment of infrastructure charges for technical infrastructure facilities invested by the State;

b) Be exempt of all land clearance compensations and expenses, supports, resettlement;

c) The State budget shall cover all the ground leveling expenses for the investment project of the NIC’s affiliate.

Article 8. Receipt of assistances, aids, grants and donations

1. The NIC is entitled to receive non-refundable official development assistance (ODA) to perform irregular tasks in accordance with the law provisions on the use of non-refundable ODA.

2. The NIC is entitled to receive foreign non-governmental aids as well as grants and donations from domestic organizations and individuals, in order to invest in building facilities, pay regular expenditures, support activities, manage and operate the NIC.

Article 9. Tax incentives

1. The NIC shall be exempt from duties on goods imported to create fixed assets, goods imported for direct use in scientific research, technological development, technology incubation development, scientific and technological enterprise incubation development, technological innovation in accordance with the provisions of the Law on Export and Import Duties.

2. The NIC’s affiliate in the Hoa Lac Hi-Tech Park shall:

a) Enjoy the corporate income tax rate at 10% in 30 years from the first year it gains turnover, be exempt from taxes in 04 years and entitled to pay only 50% of the payable tax amounts for no more than 09 subsequent years from the date it gains taxable income;

b) Be exempt from import duties on raw materials, supplies and components, which cannot be produced domestically, imported for production in 05 years from the date it commences its production.

3. The NIC's affiliates outside the Hoa Lac Hi-Tech Park shall:

Enjoy corporate income tax incentives as those applicable to the NIC which are prescribed at Point a, Clause 2 of this Article in accordance with the law provisions on enterprise income tax.

Section 3
PREFERENTIAL MECHANISMS AND POLICIES FOR CREATIVE ENTREPRENEURS AND INNOVATIVE START-UPS OPERATING AT THE NIC

Article 10. Bidding for innovative start-ups

1. Innovative startups operating at the NIC, when participating in bidding for bidding packages under the jurisdiction of the Law on Bidding, shall be exempt from a number of criteria for evaluation of dossiers for participation in prequalification, dossiers of participation in bids and dossiers of proposals on contractors' qualifications and experience, including requirements regarding turnover, financial resources, similar contracts, and other requirements to match the specifics of the innovative startups.

2. When evaluating and ranking dossiers of participation in bids and dossiers of proposals, contractors who are small- or micro-sized innovative start-ups operating at the NIC shall be given incentives as those applicable to contractors providing goods with domestically produced costs accounting for 25% or more in accordance with the law provisions on bidding. The calculation of incentives shall comply with the Government's current regulations on contractor selection.

Article 11. The NIC's support

Creative entrepreneurs and innovative startups operating at the NIC, and the NIC's innovation partners, shall be supported by the NIC to:

1. Carry out administrative procedures in the process of researching, investing, trading, and commercializing products and services.

2. Carry out procedures for entry visas, work permits, and residence permits.

3. Attract and promote investment and be connected to the start-up and innovation ecosystem.

4. Have working offices and use the NIC's laboratories and testing facilities, other means, and utilities of the NIC.

Article 12. Enterprise registration and establishment of industrial property rights

1. Creative entrepreneurs and innovative start-ups operating at the NIC, when registering for enterprise establishment, shall be granted enterprise registration certificates within 01 working day since the business registration sections receive the valid enterprise registration dossiers.

2. Creative entrepreneurs and innovative start-ups operating at the NIC shall be given priority to carry out procedures for the establishment of industrial property rights ahead of time when requested.

Article 13. Other preferential mechanisms and policies

Creative entrepreneurs and innovative start-ups operating at the NIC are entitled to the following preferential mechanisms and policies:

1. To mobilize and receive grants from research funding programs of the Government, domestic and foreign enterprises, organizations, and individuals in accordance with the law provisions in order to realize ideas based on intellectual property, new technologies and business model with a possibility of rapid growth.

2. Enjoy the highest tax incentives as prescribed in the law provisions on taxes.

Chapter III
ORGANIZATION OF IMPLEMENTATION

Article 14. Responsibilities of agencies 

1. Based on the reality of each period and stage of socio- economic development, the Government shall consider and decide to apply partially or wholly the mechanisms and policies prescribed in this Decree to other innovation and start-up centers.

2. Ministry of Planning and Investment shall:

a) Submit, under its jurisdiction, other additional preferential mechanisms and incentives to the Government or the Prime Minister for decision in order to promote the activities of the NIC, organizations and individuals operating at the NIC and projects in need of special investment attract in the NIC, which must be suitable to each period and stage of the NIC’s development;

b) Assume the prime responsibility for, and coordinate with the Ministry of Science and Technology and concerned agencies in, submitting to the Government for consideration and decision of the cases prescribed in Clause 1 of this Article;

c) Direct the NIC in mobilizing legitimate resources to build and operate the NIC in accordance with its objectives, functions, and duties as decided by the competent authority; issue under its jurisdiction the provisions on the NIC’s support as prescribed in Article 11 of this Decree.

3. The Ministry of Science and Technology shall:

a) Direct the Intellectual Property Office of Vietnam to carry out procedures for the establishment of industrial property rights as prescribed in Clause 2, Article 12 of this Decree;

b) Direct the Management Board of the Hoa Lac Hi-Tech Park to support the NIC to carry out land, investment, construction, visa, and labor procedures for foreigners, and other related tasks as prescribed in this Decree;

c) Coordinate with the Ministry of Planning and Investment in submitting to the Government for consideration and decision of the cases specified in Clause 1 of this Article in order to perform its State management function in accordance with the law provisions.

4. The Ministry of Public Security shall guide the issuance of entry visas in accordance with the provisions of Clause 1, Article 5 of this Decree.

5. The Ministry of Finance shall propose additional provisions on enterprise income tax incentives applicable to the subjects prescribed in Clause 3, Article 9 of this Decree in the Law on Enterprise Income Tax as well as land and tax incentives applicable to subjects defined in Clause 2, Article 13 of this Decree in the laws on land and taxation for implementation.

6. Other ministries and ministerial-level agencies, based on their assigned functions, duties and powers, shall coordinate with the Ministry of Planning and Investment to support and promote start-up and innovation activities of the NIC.

7. People's Committees of provinces and municipalities shall:

a) Support the establishment and operation of the NIC’s affiliates at their respective localities;

b) Connect their local start-up and innovation centers with the NIC's operation.

Article 15. Implementation provisions

1. This Decree takes effect on October 05, 2020.

2. Concerned Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of People's Committees of provinces and municipalities shall be responsible for implementing this Decree./.