Official document 1048/BKHCN-PTTTDN provides guidance on issuing Certificates of Science and Technology Enterprises.

Dear: Departments of Science and Technology of provinces and cities

In fulfillment of the responsibilities of the Ministry of Science and Technology as stipulated in Article 19 of Government Decree No. 13/2019/ND-CP dated February 1, 2019, on science and technology (S&T) enterprises, the Ministry of Science and Technology provides guidance on the issuance of S&T enterprise certificates under Decree No. 13/2019/ND-CP as follows:

1. Administrative procedures:

On February 28, 2019, the Ministry of Science and Technology issued Decision No. 395/QD-BKHCN announcing newly issued administrative procedures and replaced administrative procedures in the field of science and technology activities within the scope of the Ministry of Science and Technology's management functions as stipulated in Decree No. 13/2019/ND-CP.

The list of administrative procedures published in the Decision includes:

a) Administrative procedures at the central level:

– Procedures for issuing Certificates of Science and Technology Enterprises;

– Procedures for amending or reissuing Certificates of Science and Technology Enterprises.

b) Provincial-level administrative procedures:

– Procedures for issuing Certificates of Science and Technology Enterprises;

– Procedures for amending or reissuing Certificates of Science and Technology Enterprises.

Decision No. 395/QD-BKHCN dated February 28, 2019, is published on the electronic portal of the Ministry of Science and Technology.

2. Conditions for certification as a science and technology enterprise:

Based on Article 6 of Decree No. 13/2019/ND-CP, the conditions for certifying a science and technology enterprise include:

a) Established and operating in accordance with the Enterprise Law.

b) Capable of generating or applying scientific and technological results that have been evaluated, assessed, and recognized by competent authorities in accordance with Clause 2, Article 7 of the Decree.

Businesses fall into one of two categories:

– Possesses the capacity to produce scientific and technological results that are evaluated, assessed, and recognized by competent authorities in accordance with regulations. This capacity is demonstrated by the enterprise's ability to independently research, develop, refine, and produce scientific and technological results that are evaluated, assessed, and recognized by competent authorities.

– Possessing the capacity to apply scientific and technological results as assessed, evaluated, and recognized by competent authorities in accordance with regulations. This capacity is demonstrated by the enterprise's ability to meet the necessary conditions (as stipulated in Form No. 02 in the Appendix attached to Decree No. 13/2019/ND-CP) to implement the application of scientific and technological results into its production and business activities.

c) Meeting the revenue ratio requirement.

– For businesses established for 5 years or more: revenue from the production and sale of products resulting from science and technology must account for at least 30% of total revenue.

Determining the revenue ratio for granting a science and technology enterprise certificate: enterprises self-declare in their application for science and technology enterprise certification (they can declare based on quarterly or annual business results) and are responsible for the accuracy and legality of the information. The management agency bases its management and review on the enterprise's annual reports on the production and business of products resulting from science and technology to ensure the enterprise maintains its eligibility for science and technology enterprise certification.

– For businesses established less than 5 years ago: there is no need to meet the revenue ratio requirement.

3. Authority to issue Certificates of Science and Technology Enterprises:

The Department of Market Development and Science and Technology Enterprises (Ministry of Science and Technology) receives applications and issues certificates of science and technology enterprise for the following cases:

3.1. Cases where documents are submitted directly to the Department, no written request is required:

a) Scientific and technological results derived from special scientific and technological tasks; of importance to socio-economic development, national defense, and security nationwide; playing a crucial role in enhancing national scientific and technological potential; addressing scientific and technological issues related to multiple sectors, fields, and regions, especially environment, health, and information and telecommunications infrastructure:

– Scientific and technological results derived from special scientific and technological tasks:

Special science and technology tasks are science and technology projects, scientific proposals, pilot production projects, and large-scale science and technology projects serving national defense and security, with a strong impact on the productivity, quality, and competitiveness of national products, as considered and decided by the National Assembly and the Prime Minister. The determination of special science and technology tasks is based on the criteria for identification and the authority to approve tasks as stipulated in Article 30 of Government Decree No. 08/2014/ND-CP dated January 27, 2014, detailing and guiding the implementation of some articles of the Law on Science and Technology.

– Scientific and technological achievements are of great importance to socio-economic development, national defense, and security nationwide; they play a crucial role in enhancing the national scientific and technological potential; and they address scientific and technological issues related to multiple sectors, fields, and regions, especially the environment and health.

+ Scientific and technological results generated from scientific and technological tasks using state budget at the ministerial and national levels;

+ Scientific and technological results belonging to two or more fields as stipulated in Articles 14, 15, and 16 of Circular No. 02/2015/TT-BKHCN dated March 6, 2015, of the Ministry of Science and Technology regulating the evaluation and appraisal of results of scientific and technological tasks not using state budget funds.

– Scientific and technological achievements in the field of information and telecommunications infrastructure.

b) Enterprises established through the conversion of public science and technology organizations that register their science and technology activities with the Ministry of Science and Technology.

3.2. Cases where documents are submitted along with a request to the Department for the issuance of a Science and Technology Enterprise Certificate:

a) Enterprises with branches and production and business facilities located in multiple provinces and centrally-governed cities.

In this case, the enterprise can submit the application to the Department of Science and Technology or the Department of Market Development and Science and Technology Enterprises. If submitting the application to the Department, the enterprise must submit a written request to the Department to process the application and issue the science and technology enterprise certificate.

b) Cases where the Department of Science and Technology proposes evaluating the results of science and technology but the conditions for evaluation are not yet met.

4. Application dossier for certification as a science and technology enterprise:

The application dossier for certification as a science and technology enterprise includes:

a) Request for certification of science and technology enterprise using form No. 01 in the Appendix issued with Decree No. 13/2019/ND-CP;

b) Documents confirming and recognizing the results of science and technology research by competent authorities as stipulated in Clause 2, Article 7 of Decree No. 13/2019/ND-CP;

c) Production and business plan for products resulting from science and technology, following mẫu số 02 in the Appendix issued with Decree No. 13/2019/NĐ-CP.

For scientific and technological results that are assets formed from scientific and technological tasks using state capital as stipulated in Government Decree 70/2018/ND-CP dated May 15, 2018, regulating the management and use of assets formed through the implementation of scientific and technological tasks using state capital, enterprises need a Decision granting ownership or usage rights of the asset from the competent authority to avoid the case where the certificate of scientific and technological enterprise is revoked after being granted, as stipulated in Article 10 of Decree No. 13/2019/ND-CP.

5. Revocation and cancellation of the validity of the Certificate of Science and Technology Enterprise:

5.1. Revocation of Science and Technology Enterprise Certificate:

a) Cases of recall:

– In cases where the revenue ratio stipulated in point b, Clause 1, Article 10 of Decree No. 13/2019/ND-CP cannot be maintained:

+ For businesses established for 5 years or more, meeting the condition of a 30% revenue ratio when granted a science and technology enterprise certificate: the 5 consecutive years for considering the revocation of the science and technology enterprise certificate are calculated from the first year the business was granted the science and technology enterprise certificate.

+ For newly established businesses less than 5 years old, the revenue ratio requirement is not required when granting a science and technology enterprise certificate: the 5-year period for considering the revocation of the science and technology enterprise certificate is calculated from the sixth year the business was granted the certificate.

Example: Enterprise A, established for at least 5 years, achieving a revenue ratio of 30%, was granted a Science and Technology Enterprise certificate in 2019. The 5-year period for considering revocation if the revenue ratio condition is not met is calculated from 2019 to 2023.

Enterprise B, established less than 5 years ago, did not achieve a revenue ratio of 30% when it was granted a science and technology enterprise certificate in 2019. The 5-year period for considering revocation if the revenue ratio condition is not met is calculated from 2024 to 2028.

– In cases where the reporting requirement is not met for three consecutive years as stipulated in point c, Clause 1, Article 10 of Decree No. 13/2019/ND-CP:

Annually, the Department of Science and Technology issues a document requesting science and technology enterprises operating within the province or centrally-administered city to report on the production and business situation of products resulting from science and technology. After the reporting deadline, for enterprises that fail to report without a written request for an extension stating the reason, the Department of Science and Technology will send a notification to the enterprise stating that it has not complied with the reporting requirement.

+ After three consecutive years of failure to submit reports, the Department of Science and Technology will revoke the Science and Technology Enterprise Certificate.

b) Legal consequences of revoking the Certificate of Science and Technology Enterprise:

– After the revocation of the Science and Technology Enterprise Certificate, the enterprise will no longer be entitled to preferential treatment such as exemption or reduction of corporate income tax, land rent, import tax, and other support from the State for science and technology enterprises.

– For incentives and support with a term exceeding 12 months, such as preferential credit loans (including state investment credit and support from science and technology development funds), and support for science and technology tasks using state budget funds, enterprises shall continue to implement them until the end of the term of the credit loan agreement or the science and technology task implementation contract.

5.2. Revocation of the Certificate of Science and Technology Enterprise:

a) Cases of invalidation:

– There is any infringement of ownership rights or usage rights of scientific and technological results declared in the application for certification as a science and technology enterprise:

+ For scientific and technological achievements not funded by the state budget: the certification of the scientific and technological enterprise will be based on the court's conclusion confirming that the enterprise has infringed on the ownership or usage rights of the declared scientific and technological achievements.

+ For scientific and technological results generated from scientific and technological tasks using state capital: the basis for determining infringement is based on the decision to grant ownership or usage rights by the competent authority (whether there is a decision to grant rights, the scope of the grant, the duration of the grant, etc.).

– There was falsification of the content in the application for certification as a science and technology enterprise:

+ The act of forging documents confirming or recognizing scientific and technological results issued by competent authorities as stipulated in point b, Clause 2, Article 7 of Decree No. 13/2019/ND-CP;

+ The act of intentionally providing false information about revenue ratios to obtain a science and technology enterprise certificate for businesses that have been established for 5 years or more.

b) Legal consequences of revoking the validity of the Science and Technology Enterprise Certificate:

– When the Certificate of Science and Technology Enterprise is revoked, the enterprise will be required to repay any fees that were previously exempted or reduced for science and technology enterprises and will be subject to legal penalties.

6. Report on the development of science and technology enterprises:

Following a request from the Department of Market Development and Science and Technology Enterprises, the Department of Science and Technology requires science and technology enterprises operating in the locality to provide information on the production and business situation of products resulting from science and technology, and to prepare a report on the development of science and technology enterprises in the province/city and send it to the Department of Market Development and Science and Technology Enterprises.

Dear Departments of Science and Technology of provinces and cities, please research and implement the issuance of certificates for science and technology enterprises in accordance with Decree No. 13/2019/ND-CP. During the implementation process, if any difficulties, obstacles, or suggestions related to the Decree arise, please send them to the Ministry of Science and Technology for compilation and reporting to the competent authority for resolution.