Supporting policies on technology transfer play a vital role in promoting innovation, enhancing productivity and international competitiveness, while also encouraging cooperation and environmental protection. Supportive measures include financial assistance, training, and international cooperation, with a priority given to high technologies. According to the Law on Technology Transfer 2017, beneficiaries of the policy include domestic enterprises, research institutions, and international cooperation projects. Any breach of commitments will result in compensation for damages, and disputes shall be settled through negotiation or by a court of law.

I. The role of supporting policies on technology transfer

The supporting policies on technology transfer serves as an important mechanism to foster innovation, increase productivity and efficiency, and improve the international competitiveness of enterprises. It also contributes to the training of a high-quality workforce, promotes international cooperation and investment, and supports sustainable development and environmental protection.

Such policies help establish a favorable business environment that enables enterprises to access advanced technologies, thereby contributing to sustainable economic growth.

II. Legal provisions on supporting policies on technology transfer 

1. What is a supporting policy on technology transfer?

Pursuant to Clause 7, Article 2 of the Law on Technology Transfer 2017, technology transfer refers to the transfer of ownership rights or the right to use technology from the transferor to the transferee.

The policy on technology transfer support comprises measures adopted by the Government to encourage and facilitate the transfer and application of new technologies among enterprises, research organizations, and nations. The objectives are to promote innovation, enhance productivity, improve product quality, and support economic development. Such policy may include financial assistance, workforce training, tax incentives, and international cooperation.

2. Does the State give priority to the transfer of high technology?

According to Clause 3, Article 3 of the Law on Technology Transfer 2017, the State’s policy toward technology transfer activities includes prioritizing the transfer of high technologies.

3. Which legal documents govern supporting policies on technology transfer?

  • Law on Technology Transfer No. 07/2017/QH14, effective from July 1, 2018: This Law provides for technology transfer activities within Vietnam, from abroad into Vietnam, and from Vietnam to other countries; the rights and obligations of organizations and individuals engaged in technology transfer activities; technology appraisal for investment projects; technology transfer contracts; measures to encourage technology transfer and develop the science and technology market; and state management of technology transfer.
  • Decree No. 76/2018/NĐ-CP guiding the Law on Technology Transfer, effective from July 1, 2018: This Decree provides detailed provisions and guidance for the implementation of Articles 9, 10, 11, 27, 31, Clause 3 of Article 32, and Articles 35, 36, 40, 42, 43, and Clause 3 of Article 48 of the Law. It covers lists of technologies, management of technology transfer activities, evaluation and appraisal of technologies, and measures to promote technology transfer and develop the science and technology market.
  • Decree No. 51/2019/NĐ-CP on administrative sanctions in science and technology and technology transfer activities, effective from August 1, 2019: This Decree regulates violations, sanctioning forms, levels of fines, remedial measures, and competent authorities for handling administrative violations in science, technology, and technology transfer. Specific violations, sanctions, and remedies related to technology transfer are provided in Section 2, Chapter II.
  • Circular No. 14/2023/TT-BKHCN issued by the Ministry of Science and Technology, effective from August 16, 2023: This Circular promulgates application forms and documents required for administrative procedures under Decree No. 76/2018/NĐ-CP, including forms related to Articles 18, 20, 22, 26, and 27 of this Decree.

4. Who is eligible for the technology transfer support policies under current law?

Under current regulations, the following entities may benefit from the technology transfer support policy:

  • Domestic enterprises: Including small, medium, and large enterprises, particularly those engaged in high-tech or innovative sectors.
  • Start-up enterprises: Newly established companies in the field of innovative technology seeking access to advanced technologies.
  • Research and development organizations (R&D): Research institutions, universities, and academies engaged in transferring technologies to enterprises or communities.
  • Manufacturing and processing establishments: Facilities requiring new technologies to improve production processes, product quality, and productivity.
  • Organizations and individuals involved in technology transactions: Entities intending to sell, purchase, or share technologies domestically or internationally.
  • International cooperation projects: Research or technology transfer projects between Vietnam and foreign countries or international organizations.

5. What are the conditions for enterprises or individuals to receive support?

Under Clause 1, Article 8 of Decree No. 76/2018/NĐ-CP, the supporting policies on technology transfer applies to enterprises and individuals engaged in projects in sectors or areas eligible for investment incentives and who receive technology transfers from scientific and technological organizations.

III. Clarification of certain questions on supporting policies on technology transfer 

1. What are the consequences if the supported party breaches commitments?

According to Article 26 of the Law on Technology Transfer 2017 regarding the rights and obligations of technology transferees, in the event of a breach of a technology transfer contract, the transferee shall be liable for damages caused to third parties.

2. How are disputes concerning technology transfer support policies resolved?

In practice, disputes related to technology transfer are primarily resolved through negotiation. However, depending on the nature of the dispute, parties may also choose one of the following mechanisms:

  • Mediation by an agency, organization, or individual mutually agreed upon by the parties;
  • Arbitration;
  • Court proceedings.

3. Do the supporting policies apply to imported technologies or only domestic technologies?

Article 3 of the Law on Technology Transfer 2017 stipulates that State policies on technology transfer include priority to the transfer of high, advanced, new, clean, and defense or security technologies from abroad into Vietnam as well as domestic transfers.

Therefore, Vietnam’s supporting policies on technology transfer applies to both imported and domestic technologies.

IV. Legal consultancy services on technology transfer support policy

To be eligible for the State’s technology transfer supporting policies, enterprises and individuals must satisfy all statutory requirements. It is essential to seek reputable legal consultancy firms specializing in technology transfer support policies and dispute resolution.

NPLaw proudly stands among the leading law firms assisting clients in completing legal procedures swiftly and accurately. For consultation or further information regarding legal services related to technology transfer support policies, please contact NPLaw.