Law on Technology Transfer, No. 80/2006/QH11

LAW

ON TECHNOLOGY TRANSFER

NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM LEGISLATURE XI, 10TH SESSION

(from17 October to 29 November 2006)

Pursuanttothe1992ConstitutionoftheSocialistRepublicofVietnamasamendedbyResolution51-2001- QH10 passedby Legislature X of the National Assembly at its 10thSession on25 December2001;

This Law regulates technology transfer.

Chapter I

GENERAL PROVISIONS

Article 1.Governing scope

ThisLawregulatestechnologytransferactivitiesinVietnam,fromVietnamtooverseas,andfromoverseas to Vietnam; the rights and obligations of entities1 participating in technology transfer activities; the authorityof State administrative bodies; and measures forencouragement and promotion of technology transfer activities.

Article 2.Applicable entities

This Law shall apply to Vietnamese entities, Vietnamese residing overseas, and foreignentities participatingin technologytransferactivities.

Article 3.Interpretation of terms

In this Law, the following termsshall beconstrued as follows:

1.Technicalknow-howmeansinformationaccumulatedanddiscoveredduringtheprocessofresearch, productionandbusinessbythetechnologyowner,whichinformationisdecisiveforthequalityand competitive capacity of the technologyand technological products.

2.Technologymeanssolutions,processesandtechnicalknow-how,whetherattachedorunattachedto tools and facilities, used toconvert resources into products.

3.High technologymeans technology with a high content of scientific research and technological development;which createsproductsandserviceswithhighqualityandhighaddedvalue;andwhichiscapableofforming a newmanufacturing orservicesindustry or of modernizingan existing manufacturing or servicesindustry.

4.New technologymeans technology created for the firsttime in Vietnam.

5.Progressive technologymeans technology of the first rank andof a highertechnologicalstandard than the standard ofcurrent technologyof the same type.

6.Establishmentfosteringtechnology[and/or]establishmentfosteringtechnologicalenterprisesmeans aplacewithfavourableconditionsintermsofinfrastructureandsupplyofnecessaryservicesand assistance in order to foster technology [and/or] technological enterprises.

7.Technologymarkets, technology fairs andexhibitions, and technology transaction centresmeans placesforthedisplayandintroductionoftechnology,forthepurchaseandsaleoftechnology,forthe promotion of technology transferand forthe provisionof other technology transfer services.

8.Technologytransfermeanstransfertoatransfereeoftheownershiprightortherighttouseeithera part or thewhole of a technology by the partywith the right to transfersuch technology.

9.TechnologytransferinVietnammeanstransferofatechnologybetweenentitiesoperatingwithinthe territory of Vietnam.

10.Technologytransfer from overseas into Vietnammeans an entity operating overseas transfers a technology toan entity operating within the territory of Vietnam.

11.Technology transfer from Vietnam to overseasmeans an entity operating within the territory of Vietnam transfers a technology to anentity operating overseas.

12.Technologytransferservicesmeanssupportactivitiesduringtheprocessofseeking,enteringinto and performing technologytransfercontracts.

13.Appraisaloftechnologymeanstheactivityofdeterminingthestandard,thevalueandtheeconomic effectivenessof a technology and its socio-economic and environmental impact.

14.Valuation of technologymeans the activity of determining the price of a technology

15.Assessment of technologymeans the activity of inspecting and rating the specifications of transferred technologyas compared to the specifications of such technology as stipulated in the technology transfercontract.

16.Technology transfer activitiescomprise both technology transfer and technologytransfer services.

17.Technologytransferbrokeragemeans the activity of assistingparties with technology and parties whoneed technology to other parties with whom to sign technology transfercontracts.

18.Technologytransferconsultancymeanstheactivityofassistingpartiestoselecttechnologiesandto negotiate, sign and perform technologytransfer contracts.

19.Fosteringtechnologymeanstheactivityofassistingthecreationandperfectionoftechnologywhich has the potential for practical application and commercialization from technological ideas or from results of scientific research and technological development.

20.Fosteringtechnologicalenterprisesmeanstheactivityofassistingentitiestoperfecttechnology,to raiseinvestmentcapital,toorganizeproductionandbusiness,toconductmarketing,toconductlegal proceduresandprovidingotheressentialservicesinordertosetupenterprisesusingnewlycreated technology.

21.Promotionoftechnologytransfermeanstheactivityofpromoting,creatingandseekingopportunities for the transfer of technology;providing services ofadvertising, exhibiting and introducing technology; andorganizing technology markets, technology fairsand exhibitionsand technology services centres.

Article 4Applicable law

1. TechnologytransferactivitiesmustcomplywiththeprovisionsofthisLawandotherrelevantlaws;in thecaseofspecializedtechnologytransferactivitiesasstipulatedinanotherlaw,theprovisionsof such other law shall apply.

2. Wherean international treaty of which the Socialist Republic of Vietnamis amember contains provisions different from those in this Law, then theprovisions of such international treaty shallapply.

3. In the case of technology transferactivities with foreign elements, the parties mayagree in the contractontheapplicationofforeignlaworinternationalcommercialpractice,onconditionthatsuch foreignlaworinternationalcommercialpracticeisnotcontrarytothefundamentalprinciplesofthe law of Vietnam.

Article 5.State policy on technologytransfer activities:

1. To secure the lawful interests ofentities conducting technology transferactivities and to facilitate such entities inorder to service the requirements for rapid and sustainable socio-economic development of the country.

2. Toprioritize thedevelopment of high technology andprogressive technology; to develop technologicalmanpower simultaneouslywith investment in renovation of technology.

3. Tostronglydeveloptechnologymarkets;toencourageandpromoteactivitiesoffosteringtechnology andfosteringtechnologicalenterprises;topromotetheconversionofresearchresultsintoproduction and business.

4. Toconcentrateonimprovementofthequalityandeffectivenessoftechnologytransferactivitiesin ruralareasandmountainousareas;toencourageandfacilitatesuchactivitiesinareaswithdifficult socio-economic conditions andareaswith specially difficult socio-economicconditions.

5. To raise the effectiveness of international co-operation and to facilitate entities to engagein internationalco-operation during technology transferactivities.

Article 6.Contents of State administration of technology transfer activities:

1. To promulgate legal instruments on technology transferand to organize their dissemination and implementation.

2. To formulate strategies, plans, programs, measures, regimesand policiesfor the promotion of technologytransferactivitiesandfortherenovationoftechnology,andtodirectimplementationof same.

3. To exerciseuniform administration of technology transfer activities.

4. To conduct international co-operationregarding technology transfer activities.

5. To conduct checksand inspections of compliance with the law on technology transfer; to resolve complaintsand denunciations, and to deal withbreaches of the law on technology transfer.

Article 7.Technologyobjects whichare eligible for transfer

1. Technologyobjectswhichshallbeeligiblefortransfershallbeapartorthewholeofthefollowingtechnologies:

(a) Technical know-how;

(b) Technical information about technology shall bepermitted to be transferred in the form of technological plans, technologicalprocesses, technical solutions, formulae, technical specifications, drawings, technical maps, computer programsandinformation files;

(c) Solutions for production optimization and for renovation of technology.

2. Technologyobjectsshallbepermittedtobetransferredwhetherattachedorunattachedtoindustrial property objects.

Article 8.Right to transfer technology

1. A technology owner shallhave the right to transfer theownershiporright to usesuch technology.

2. Anyentitywhichispermittedbythetechnologyownertotransfertherighttousesuchtechnology shallhave the right to transfer the right to usesuch technology.

3. Anyentitywithtechnologybeinganindustrialpropertyobjectforwhichthetermofprotectionhas expired or whichisnot protectedin Vietnam shall have the right to transferthe right touse such technology.

Article 9.Technologies the transfer of which is encouraged

Atechnologythetransferofwhichisencouragedmeanshightechnologyorprogressivetechnologywhich satisfies one of the following requirements:

1. It creates new products whichare highlycompetitive.

2. It creates anew industryor newservices.

3. It saves energy or raw materials.

4. It uses newenergy resources orrecycled energy.

5. It protects thehealth of humans.

6. It prevents orfights naturaldisastersorepidemics.

7. It results inclean production or is environmentally friendly.

8. It develops traditionalcrafts and industries.

Article10.Technologies the transfer of which is restricted

Transfer shallbe restricted in the case ofa technologyaimed at any one of the following objectives:

1. Protection of the nationalinterest.

2. Protection of the health of humans.

3. Protection of nationalcultural values.

4. Protection of animals andplants,natural resources or the environment.

5. Implementationofaprovisionin aninternationaltreatyofwhichtheSocialistRepublicofVietnamisa member.

Article11.Technologies the transfer of which is prohibited:

1. Atechnologywhichfailstosatisfytherequirementsstipulatedbythelawsonoccupationalsafety, labour hygiene, protection of human health, and protection of natural resourcesand the environment.

2. Atechnologywhichcreatesproductscausingharmtosocio-economicdevelopmentandhavingan adverse impact on nationaldefence andsecurity orsocial order andsafety.

3. A technology notpermitted tobe transferredpursuant to a provision inan international treatyof which the Socialist Republic of Vietnam is a member.

4. A technology on the list of State secrets,unless a provision of lawprovides otherwise.

Article12.Forms of transfer of technology

The transfer of a technology shall bepermitted to beimplementedvia the following forms:

1. An independent technologytransfercontract.

2. A sectionon technology transfer inthe followingprojects or contracts:

(a) An investmentproject;

(b) A franchising contract;

(c) A contract transferringindustrialproperty rights;

(d) A contract for purchase and sale of machinery or equipment to which the transfer of a technology isattached.

3. Other formsoftransfer of technology as stipulated bylaw.

Article13.Conduct strictly prohibitedduring technology transferactivities:

1. Takingadvantageoftechnologytransferactivitiesinordertocauseharmtonationaldefenceand security interests,or to the lawful rights and interests of entities.

2. Destroyingnaturalresourcesandtheenvironment;causingharmtothehealthofthepeople,orto Vietnamese fine customsand ethics.

3. Transferringa technologyon the listof technologies the transfer of which isprohibited;unlawfully transferringatechnologyonthelistoftechnologiesthetransferofwhichisrestricted;transferringa technologywhenaclauseinthetechnologytransfercontractstipulatesthattransfertoathirdpartyis not permitted.

4. Breaching the technologytransfer right interms ofownershipanduse of the technology.

5. Acting fraudulently during formulationand performance of a technology transfer contract or of a technology transfer services contract, or during preparation of a statistical reporton technology transfers.

6. Impedingor refusing the supply of informationabout technology transferactivities relevant to the contents of a check or inspection bya competent State administrative body.

7. Takingadvantageofone sdutiesorpowersinordertoseekabribeortocausedifficulties,orfailing to promptlyimplement requests inaccordance with law from entities participating in technology transfer activities.

8. Disclosing technological secrets, or impeding technology transferactivities.

9. Otherconduct whichis strictly prohibited by the law on technologytransfer.

ChapterII

TECHNOLOGY TRANSFER CONTRACTS

Article14.Principles for signing andperforming technology transfer contracts

1. Atechnologytransfercontractshallbeenteredintoviatheformofawrittencontractorsomeother writtenformwithequivalentvaliditysuchas atelegram,telex,facsimileordatamessageorother form asstipulated by law.

2. Thelanguageinawrittentechnologytransfercontractshallbeasagreedbytheparties,butinthe caseofatransactioninVietnamtheremustbeacontractinVietnamese.TheVietnameseandthe foreign language versionsof a contractshallbe of equal validity.

3. Atechnologytransfercontractshallbeenteredintoandperformedinaccordancewiththeprovisions of this Law, theCivil Code, theCommercial Lawand other relevantlaws.

Article15.Contents of technology transfercontracts

Partiesentering into a technology transfer contract may reach agreement on inclusionof the following particulars:

1. Name of thetechnology transfercontract, clearly stating the name ofthe transferred technology.

2. The technology object which isbeing transferred and the products created from the technology.

3. Transfer of the ownershipof[and/or] right to use the technology.

4. Method of transfer of the technology.

5. Rights andobligations of the parties.

6. Priceand mode of payment.

7. Date of effectiveness and term of validity of the contract.

8. Definition of terms andconcepts (if any)used in the contract.

9. Planandschedulefortransferofthetechnology,andlocationforimplementingthetransferofthe technology.

10. Liability to provide a warranty for the transferred technology.

11. Penalties for breach of contract.

12. Liability for breach of contract.

13. Applicable law for disputeresolution.

14. Tribunal for dispute resolution.

15. Otheragreements, oncondition that they are not contrary to the law of Vietnam.

Article16.Transfer of ownership of technology

1. Transferofownershipoftechnologymeanstheownerofatechnologytransferstheentirerightof possession,the right to use and the right to dispose of such technology toanother entity in accordancewith article 18of this Law.

2. If a technology is aprotected industrial property rights object, then transferof ownership of such technologymustbeimplementedtogetherwithtransferofownershipoftheindustrialpropertyrights in accordance with the law on intellectual property.

Article17.Transfer of right to use technology

1. Transferoftherighttouseatechnologymeansanentityasstipulatedinarticle8ofthisLawpermits anotherentitytousethetechnologyinaccordancewithclause2ofthisarticleandarticle18ofthis Law.

2. The scope of transfer of the right to usea technologyshallbe asagreed by the parties, comprising:

(a). Exclusiveor non-exclusiveright to usethe technology;

(b) Permissiontore-transfertherighttousethetechnologytoathirdpartyoraprohibitionfrom doingso;

(c) Fields ofuseof the technology;

(d) Therighttoimprovethetechnology,andtherighttoreceiveinformationaboutimprovements to the technology;

(dd) Theexclusiveornon-exclusiverighttodistributeandsellproductscreatedfromthetransferred technology;

(e) Geographical area in which itis permitted to sell products created fromthe transferred technology;

(g) Other rightsrelated to the transferred technology.

3. Ifatechnologyisaprotectedindustrialpropertyrightsobject,thentransferoftherighttousesuch technologymustbeimplementedtogetherwithtransferofownershipofindustrialpropertyrightsin accordancewith the lawon intellectual property.

Article18.Forms of transfer of technology:

1. Transfer of data about thetechnology.

2. Provision of training thetechnology transferee for a specifiedperiod stipulated in the technology transfer contract to enable the transferee toproperly understandand master thetechnology.

3. Appointment of a technical consultancy expert to enable the technology transferee to put the technologyintoproductionwiththetechnologicalandproductqualitysatisfyingthespecificationsand schedule stipulated in the technology transfercontract.

4. Other formsoftransferasagreed by the parties.

Article19Time of effectiveness of technology transfer contracts

1. Thetimeofeffectivenessofatechnologytransfercontractshallbeasagreedbytheparties,except forthecasestipulatedinclause2ofthisarticle;ifthepartiesdonotagreeonsuchtime,thenthe contractshallbe of full force and effectwhenthe lastparty completes signing the contract.

2. Acontractforthetransferofatechnologyonthelistoftechnologiesthetransferofwhichisrestricted shallonly take effect after the competentState body has issued a technology transferpermit.

Article20.Rights andobligations of technology transferors

1. A technology transferor shall have the following rights:

(a) To require the technologytransferee to correctly implement the contractual commitments;

(b) To requestthe competent State body toprotectlawful rights andinterests related to the transferred technology;

(c) Toreceivefullpaymentinaccordancewiththecontractandtoenjoyotherrightsandinterests as agreed in the contract; to enjoy incentives stipulated in this Law and in other relevant laws;

(d) Torequirethetechnologytransfereetoapplymeasurestoremedy,andtopaycompensation for loss anddamage if the technologytransferee fails to correctly dischargethe contractual obligations,except wherethe parties agree otherwise;

(dd) Tolodgeacomplaintortoinstitutelegalproceedingsforbreachofcontractinaccordancewith law.

2. A technology transferor shall have the following obligations:

(a) Toguaranteethattherighttotransferthetechnologyislawfulandisunrestrictedbythirdparty rights, exceptwhere theparties agree otherwise;

(b) To correctly implementthe contractual commitments; to pay compensation for lossand damage suffered by the technology transfereeor thirdparties as aresult of breach of contract;

(c) Uponrequestofanothernegotiatingparty,tomaintainconfidentialityofinformationobtained during the process of negotiating andsigning the technology transfer contract;

(d) Tonotify the technology transferee and to take appropriate measures on discovery ofany technical difficultieswhich result in the transfer results failingto satisfy the requirements stipulated in the contract; to pay compensationfor lossand damage sustained by the technologytransferee or third partiesand due to failure to perform the contractualcommitments;

(dd) Toconductproceduresapplyingforatechnologytransferpermitinthecaseofatransferfrom Vietnam tooverseas of a technology on the listof technologies the transfer of whichis restricted;

(e) Not to agree on clauses restricting competition whichare prohibited by theLawonCompetition;

(g) To discharge financial andother obligationsas stipulated by law.

Article21.Rights andobligations of technology transferees

1. A technology transferee shall have the following rights:

(a) To require the technologytransferor tocorrectly implement the contractual commitments;

(b) To requestthe competent State body toprotectlawful rights andinterests related to the transferred technology;

(c) Tohiredomesticorforeignentitiestoprovidetechnologytransferservicesinaccordancewith law;

(d) Torequirethetechnologytransferortoapplymeasurestoremedy,andtopaycompensation for loss and damage if the technology transferor fails to correctly discharge the contractual obligations,except wherethe parties agree otherwise;

(dd) To lodge a complaintor to institute legal proceedings in accordance withlaw forbreach of contract;

(e) To enjoy the incentives stipulated inthisLawand in other relevantlaws.

2. The technology transfereeshallhave the following obligations:

(a) To correctly implementthe contractual commitments; to pay compensation for lossand damage suffered by the technology transferoror thirdparties as aresult of breach of contract;

(b) Uponrequestofanothernegotiatingparty,tomaintainconfidentialityaboutthetechnologyand other information obtained during the process of negotiating and signing the technology transfer contract;

(c) Toconductproceduresapplyingforatechnologytransferpermitinthecaseofatransferfrom overseas into Vietnam of a technology on the list of technologies the transfer of which is restricted;

(d) To discharge financial andother obligationsas stipulated by law.

Article22.Price of andmethod of payment for technology transfer

1. The payment price stipulated in a technology transfer contract shall be as agreed by the parties.

2. Payment must be made by one or acombination of the following methods:

(a) One-off payment or payments ininstalments in moneyor by goods;

(b) Transferofthevalueofthetechnologyascapitalcontributiontoaninvestmentprojectorto capital of anenterpriseas stipulated by law;

(c) Otherpayment methodsas agreed by the parties.

Article23.Proceduresforissuanceofatechnologytransferpermitinthecaseofatechnologyonthelist of technologies the transfer of which is restricted

1. Anyentitywithaneedtoreceiveor tobetransferredatechnologyonthelistoftechnologies the transferofwhichisrestrictedshallforwardtheapplicationfilestipulatedinarticle24.1ofthisLawto the State body authorized to issuedtechnology transfer permits.

2. TheStatebodyauthorizedtoissuetechnologytransferpermitsshallprovidewrittenapproval withina time-limitofthirty(30)daysfromthedateofreceiptofavalidapplicationfile.Inacaseofrefusalto approve, the State body shall provide awritten responsespecifying its reasonsfor the refusal.

3. AfterreceiptofwrittenapprovalfromthecompetentStatebody,theentitywiththeneedtoreceiveor to be transferred the technology shall sign a technology transfer contract.

4. After the technology transfer contract hasbeen signed, one of the signatories shall forward the applicationfilestipulatedinarticle24.2ofthislawtotheStatebodyauthorizedtoissuetechnology transfer permits.

5. Withinatime-limitoften(10)daysfromthedateofreceiptofavalidapplicationfile,theStatebody authorizedtoissuetechnologytransferpermitsshallberesponsibletoconsidertheconsistencyof thetechnologytransfercontractwiththeitemsstipulatedinthewrittenapprovalinordertoissuea decisiononissuanceofapermit.Inacaseofrefusaltoissueapermit,theStatebody shallprovidea writtenresponsespecifying its reasonsfor the refusal.

6. Ifthereisaneedtochangetheitemsstipulatedinthetechnologytransferpermitduringtheprocess ofperformanceofthetechnologytransfercontract,thenoneofthesignatoriestothecontractmust apply for a new permit.

Article24Application files forapproval of technology transfer, and application files forissuance of a technologytransferpermitinthecaseofatechnologyonthelistof technologiesthetransferof which is restricted

1. Anapplicationfileforapprovalofthetransferofatechnologyonthelistoftechnologiesthetransfer of which is restricted shall comprise:

(a) Written request to enter intoa technology transfercontract;

(b) Document onthe legal status of the applicant;

(c) Explanatory statement on the technology inaccordance with regulations of the Ministry of Science and Technology.

2. Anapplicationfileforissuanceofatechnologytransferpermitinthecaseofatechnologyonthelist of technologies the transfer of which is restrictedshallcomprise:

(a) Written request for issuance of atechnology transfer permit;

(b) Writtenapproval from the competent State body to transfer the technology;

(c) Document onthe legal status of theparties to the technology transfer contract;

(d) Original orcopy of the technology transfer contract;

(dd) List of technological data and technological equipment (if any) attached to the technology transfer contract.

Article25.Right to registration of technology transfer contractsand procedures for registration

1. Thepartiesenteringintoatechnologytransfercontractshallhavetherighttoregistersuchcontract withthecompetentStateadministrativebodyforscienceandtechnologyasthebasisfortheparties to enjoy the incentives stipulated in thisLawand in other relevantlaws.

2. An application file for registration of a technology transfercontractshallcomprise:

(a) Request for registration of the technology transfercontract;

(b) Original orcopy of the technology transfer contract

3. Within a time-limit of fifteen (15)days fromthe date of receipt of a valid application file, the competentStateadministrativebodyforscienceandtechnologyshallconsiderandissueadecision on issuance of a certificate of registration of the technology transfer contract.

Article26.Obligation tomaintain confidentiality duringissuance of technology transfer permits and issuance of certificates of registration of technology transfercontracts

Thebodiesand individuals responsible forissuance of technology transfer permits and of certificates of registrationof technology transfer contracts shall alsobe responsible to maintain confidentiality of the technologies and business secretsinapplication files for issuance of technology transferpermits and in application files for registration oftechnology transfercontracts.

Article27Dealing withbreaches of technology transfercontracts

1. The followingsanctions shall apply to entities in breach of a technology transfer contract:

(a) Fine for abreach;

(b) Payment of compensation for loss anddamage;

(c) Compulsorycorrect performance of the contract;

(d) Temporary stay of performance of the contract;

(dd) Suspensionofperformance of the contract;

(e) Rescission ofthe contract;

(k) Other measuresas agreed by the parties, on condition that such othermeasuresare not contrary to the fundamental principals of thelaw of Vietnam, not contrary to international commercialpractice,norcontrarytoaninternationaltreatyofwhichtheSocialistRepublicof Vietnam is amember.

2. The measures of temporary stay of performance, suspension of performance and rescission of a contractshallnotapplytoanon-fundamentalbreachofatechnologytransfercontract,exceptwhere the parties agree otherwise.

3. The parties may agreeto a limit on the amount of compensation payable for lossand damage resulting frombreach of a technology transfercontract, unless a provision of lawprovides otherwise.

4. Applicationofthesanctionsstipulatedinclause1ofthisarticleshallbeimplementedinaccordance with law.

ChapterIII

TECHNOLOGY TRANSFER SERVICES

Article28.Technology transfer services

1. Technology transfer services shall comprise:

(a) Technology transfer brokerage;

(b) Technology transfer consultancy;

(c) Appraisal of technology;

(d) Valuation of technology;

(dd) Assessment of technology;

(e) Promotion oftechnology transfer.

2. Entities conducting technologytransfer services business must have a business registration certificate fortechnology transfer services.

Article29Principles for entering into and performing technology transferservicescontracts

1. Atechnologytransferservicescontractshallbeenteredintoviatheformofawrittencontractorin another formas stipulatedby law.

2. Atechnologytransferservicescontractshallbeenteredintoandperformedinaccordancewiththe provisions of this Law, theCivilCode, theCommercial Lawand other relevant laws.

Article30.Rights of entities conducting technologytransfer services business

Entities conducting technology transfer servicesbusiness [services providers] shallhave the following rights:

1. To conduct technology transfer services activities for which the services provider has business registration.

2. Torequire servicesuserstosupplynecessaryinformationanddatatoenabletheservices providerto provide the technology transferservices.

3. To employdomesticand foreignassociates in order to assist the technology transfer services activities of the services provider.

4. To receive fees and otherbenefits for the provision ofservices inaccordance with an agreement.

5. Torequireservicesuserstopaycompensationforlossanddamagecausedtotheservicesprovider and due to the fault of such services users.

6. Toconduct[business]co-operationandjointventureswithdomesticandforeignentitiesinordertoconduct technology transferservices activities.

7. Toparticipate in domestic, regionaland internationalprofessionalassociations in accordance with law.

Article31.Obligations ofentities conducting technology transferservices business

Entities conducting technology transfer servicesbusiness [services providers] shallhave the following obligations:

1. Toprovidetechnologytransferservicescorrectlyinaccordancewiththeregisteredbusinessitemsof such services provider.

2. To strictly perform signedtechnology transferservices contracts.

3. To be liable to services users for the results of implementation of technology transfer services contracts by the servicesprovider.

4. To pay compensation forlossand damage causedto servicesusers and due to the fault of the services provider.

5. Tomaintainconfidentialityofinformationinaccordancewiththeagreementsinatechnologytransfer services contract.

6. To discharge financial andother obligationsas stipulated by law.

Article32.Technologyassessment services

1. Technologyassessmentservicesmeanseitherabusinessornon-businessactivityconductedinthe formofanassessmentofatechnologyinordertoverifytheactualstatusofatransferredtechnology and othermatters related to such transfer at the request of one or more parties to a technology transfer contract or at the request ofa competent State administrative body.

2. Entities providing technology assessment servicesandparties requestingassessment of a technologymust comply with the provisions of thisLaw and other relevant laws.

Article33.Criteriafortechnologyassessors

Technology assessorsmust satisfy all the following criteria:

1. Have college, university or higher qualifications and have the appropriate expertise for the requirementsand field of technology tobe assessed.

2. Have at least three years working experience in the field of technology to be assessed.

3. Haveanassessor scertificateinthefieldoftechnologytobeassessedifthelawstipulatesthatsuch a certificate is necessary.

Chapter IV

INCENTIVES FOR ENCOURAGING AND PROMOTING TECHNOLOGY TRANSFER

Article34.Development of the technologymarket

1. TheStateencouragesentitiestoparticipateindevelopmentofthetechnologymarketinthefollowing forms:

(a) Byinvestinginconstructionofinfrastructureforthetechnologymarketcomprisingtechnology markets, technology fairs and exhibitions, technology transaction centres, establishments fostering technology, establishments fostering technological enterprises and other forms;

(b) Byannouncing,disseminating,presentingandintroducingtechnologiesandbyparticipatingin domestic andoverseas technology markets, technology fairs andexhibitions.

2. The Ministry of Science andTechnology shall co-ordinate with ministries, ministerial equivalent bodies,Governmentbodiesandpeople scommitteesofprovincesandcitiesundercentralauthority (hereinafterreferredtoasprovincialpeople scommittees)totakemeasurestoencourageandcreate favourable conditions for domesticand foreignentities to invest in holding technology markets, technologyfairsandexhibitions,andtoinvestinotherformsoftechnologytransfer;andshalltake measures toattract alleconomicsectors to participate in development of the technology market.

Article35.Encouragedtechnologytransfertoruralareas,mountainousareas,areaswithdifficultsocio- economic conditions andareas withspecially difficultsocio-economic conditions:

1. Technologies in the fields of protection and development ofgene sources; crossbreeding, and improving and raising theeconomic value of plant varietiesand animal varieties.

2. Technologiesfortheproduction,preservationand processingofagricultural,forestryand aquaculture products.

3. Technologies for prevention andtreatment of natural disasters and epidemics, and for community health care.

4. Technologies for prevention and treatment of epidemics affectingplant varietiesand animal varieties.

5. Technologies using recycled energy.

6. Technologies supplying fresh water and protecting theenvironment.

7. Technologies for improvement of output, quality and effectiveness of traditional products of craft villages.

Article36.Responsibilities of entities during technology transfer activitiesin rural areas,mountainous areas, areas with difficult socio-economicconditions andareas with specially difficult socio- economic conditions

1. Programsandprojectson dissemination ofplantvarietiesandanimalvarietiesor technologiesforthe production, preservation and processing of agricultural, forestry and aquaculture products must contain items of technologytransfer.

2. Anyentitywhichdisseminatesortransferstechnologyforproduction,preservationandprocessingof agricultural, forestry and aquaculture products must report to the State administrative body for science and technology in the locality in which suchentity commencesimplementation of the technology transfer.

3. Anyentitywhichprovidesplantvarietiesandanimalvarietiesorwhichtransferstechnologyforthe production,preservationorprocessing ofagricultural, forestryandaquaculture products shallbe responsibletoprovideguidelinesonsuchtechnologyfortheusersandmustpaycompensationfor lossanddamagearisingfromtheprovisionofsuchplantvarietyoranimalvarietyorfromtransferof such technology.

Article37.Responsibilities of State bodies during technologytransfer activitiesin rural areas,mountainous areas, areas with difficult socio-economic conditions andareas with specially difficult socio-economic conditions

1. Local State administrative bodies for science and technology shallbe responsible to provide guidelines and to facilitate activities of dissemination and transfer of plant varieties and animal varietiesortechnologiesfortheproduction,preservationandprocessingofagricultural,forestryand aquaculture products; and topromote technologytransfer activities within their localities, andto inspect, detect and promptly prevent the disseminationor supply of plant varieties and animal varietiesor ofother technologies whichcause loss and damage to users.

2. Onanannualbasis,theMinistryofScienceandTechnologyshallpresideoverco-ordinationwith relevant ministries, ministerialequivalent bodiesand Government bodies to conduct appraisals of technologytransferactivitiesinruralareas,mountainousareas,areaswithdifficultsocio-economic conditions and areas withspeciallydifficultsocio-economicconditions.

Article38.Programfor national technological renovation

1. The program for national technological renovation shall be aimed at achieving the following objectives:

(a) Improvement of the national technological capacity and of the effectiveness of technology transfer activities;

(b) Servicing major national economic programs;

(c) Facilitating small and medium-sizedenterprises to replace outdated technologies, to apply progressive technology and to master technology which is transferred from overseas to Vietnam;

(d) Strengtheningtechnologicalresourcesinruralareas,mountainousareas,areaswithdifficult socio-economic conditions andareaswith specially difficult socio-economicconditions.