Nghị định 94/2020/ND-CP

DECREE

PREFERENTIAL MECHANISMS AND POLICIES FOR VIETNAM NATIONAL INNOVATION CENTER

Pursuant to the Law on Government Organization 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 Corporate Income Tax dated June 3, 2008 and the Law on Amendments and Supplements to certain Articles of the Law on Corporate Income Tax dated June 19, 2013;

Pursuant to the Law on Amendments and Supplements to certain articles of the Law on Taxes dated November 26, 2014;

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

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

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

Pursuant to the Law on Export and Import Duties dated April 6, 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;

Upon the request of the Minister of Planning and Investment;

The Government hereby promulgates the Decree regulating the preferential mechanisms and policies for Vietnam National Innovation Center.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree shall provide for a number of preferential mechanisms and policies for the Vietnam National Innovation Center (hereinafter referred to as NIC) established under the Prime Minister’s Decision No. 1269/QD-TTg dated October 2, 2019, organizations and individuals operating or working at the NIC, and partners supporting the NIC's innovation.

Article 2. Subjects of application

1. The National Innovation Center and its subsidiaries within the territory of the Socialist Republic of Vietnam.

2. Domestic and foreign entities and persons operating or working at the NIC.

3. Partners supporting the NIC’s innovation.

4. Other relevant organizations and individuals.

Article 3. Interpretation

For the purposes of this Decree, terms used herein shall be construed as follows:

1. Entrepreneur means a person researching, developing new concepts and trading new products, services and business models.  

2. Startup business means an enterprise or company established under laws in order to put the above-stated concepts into practice on the basis of exploiting intellectual property, technology and business models which are new and potentially promote fast growth.

3. Partner supporting innovation means an entity or person cooperating with the NIC to invest in, construct and provide supporting equipment, works or services necessary for research, development, testing, experimentation, business, training, education, consulting and other activities so as to perform the NIC's functions and duties.

Chapter II

PREFERENTIAL MECHANISMS AND POLICIES FOR NIC, ENTREPRENEURS, INNOVATIVE STARTUP PERSONS OR ENTITIES WORKING OR OPERATING AT THE NIC

Section 1. GENERAL PREFERENTIAL MECHANISMS AND POLICIES

Article 4. General developmental preferential mechanisms, policies and incentives

1. The State adopts incentives, preferential and support mechanisms and policies to create the most favorable research, development and investment environment for the NIC in order to attract domestic and foreign talents, professionals, large technology corporations and enterprises throughout the country and from countries with the developed technology level to actualize ideas or concepts on the basis of exploiting new and potentially fast-growing intellectual property, technologies, and business models.

2. The NIV may enjoy the most preferential mechanisms and policies and the most advantageous administrative procedures in accordance with the law to support and develop the startup and innovation ecosystem as a way to contribute to innovating the growth model on the basis of science and technology development.

3. Preferences and incentives shall be offered to relevant startup, telecom, information technology, automation and other businesses that locate their offices, research and development departments at the NIC for the purpose of developing the innovation ecosystem inside the NIC.

Article 5. Visas and foreign workers

1. Aliens may be granted multiple entry visas of which the validity is corresponding to the time they work directly at the NIA under the guidance of the Ministry of Public Security, including:

a) Those working at the NIC, including employees, experts and scientists of the NIC, startup businesses working or operating at the NIC, and partners supporting innovation and entrepreneurs;

b) Family members (e.g. natural parents, spouses, natural or adopted children under 18 years old) of those referred to in point a of this clause.

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

3. The Head of the Management Board of Hoa Lac Hi-Tech Park shall consider issuing the decision to approve the NIC's plan to employ foreign workers at the Hoa Lac Hi-Tech Park.

Article 6. Investment loan incentives

1. Investment projects of entrepreneurs and startup businesses working or operating at the NIC and the NIC's investment projects on the list of projects funded by State investment credit loans shall be given preferential treatment in case of taking out state preferential loans at the Vietnam Development Bank in accordance with the law.

2. The NIC itself, entrepreneurs, startup businesses  working or operating at the NIC may receive grants, financial aids, support, 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 science and technology development funds of provinces and centrally-run cities in accordance with the law.

Section 2. PREFERENTIAL MECHANISMS AND POLICIES FOR THE NIC

Article 7. Incentives for use of land and acquisition of its office premises

1. The NIC shall be entitled to lease land for 50 years in hi-tech zones and shall be exempted from paying land rentals for the entire lease term.

2. As for the NIC’s office premises located at Hoa Lac Hi-tech Park:

a) They shall be exempted from infrastructure and facility fees for leased land plots inside sites subject to the requirement for payment of infrastructure and facility fees if the infrastructure or facilities that they use are developed by using state funds;

b) They shall be exempted from all compensation, site clearance, support and residential relocation costs and expenses;

c) The state budget shall support them in paying all costs of ground leveling and backfilling work for projects on investment in construction of the NIC’s office premises and facilities. 

Article 8. Acceptance of support, aids, grants and donations

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

2. The NIC shall be entitled to receive foreign non-governmental aids, grants and donations from domestic organizations and individuals to invest in building facilities, finance recurrent expenditures, support activities, management and operation of the NIC.

Article 9. Tax incentive

1. NIC shall be granted an exemption from duties goods imported to acquire fixed assets, goods imported for direct use in scientific research, technology development, technology incubation development, science and technology enterprise incubation and technological innovation in accordance with the Law on Export Duty and Import Duty.

2. As for the NIC’s office premises located at Hoa Lac Hi-tech Park:

a) They may enjoy a 10% corporate income tax rate for 30 years from the first year when their revenue is earned, a tax exemption for 04 years and a 50% reduction of the tax amount payable for no more than 9 subsequent years from the date on which their taxable income is earned;

b) They may be exempted from duties on importation of raw materials, supplies and components which cannot be produced domestically for production purposes for 5 years from the date of production commencement.

3. As for NIC’s office premises located outside of Hoa Lac Hi-tech Park:

They may enjoy corporate income tax incentives as applicable to the NIC itself according to Point a of Clause 2 of this Article under the law on corporate income tax.

Section 3. PREFERENTIAL MECHANISMS AND POLICIES FOR INNOVATIVE STARTUP ENTITIES AND PERSONS WORKING OR OPERATING AT THE NIC

Article 10. Startup business’s participation in bidding

1. When bidding for bids falling under the jurisdiction of the Bidding Law, startup businesses operating at the NIC shall be granted an exemption from a number of criteria for evaluation of prequalification applications, bidding packages, and proposals for the bidder's competence and experience, including revenue, financial resource, similar contract and other requirements, which is relevant in terms of their particular characteristics.

2. When evaluating and ranking bid packages, proposals, bidders who are small or extra-small start-up businesses operating at the NIC shall be entitled to incentives as applicable to bidders supplying goods with their domestic production costs accounting for 25% or more in accordance with regulations of law on bidding, and the incentive calculation method shall conform to the Government’s current regulations on contractor selection.

Article 11. NIC’s support

Entrepreneurs or startup businesses working or operating at the NIC, and the NIC’s partners supporting innovation shall be entitled to the NIC's support as follows:

1. Providing the NIC’s support in the completion of administrative procedures in the process of research, investment, trading and commercialization of their products and services.

2. Providing the NIC’s support in the application for entry visas, work permits and residence permits.

3. Providing the NIC’s support in advertising and promoting investment and being connected to the startup and innovation ecosystem.

4. Providing the NIC’s support in having access to the NIC’s offices, laboratories, testing or experimenting facilities, means or amenities.

Article 12. Enterprise registration and establishment of industrial property rights

1. When applying for enterprise registration, entrepreneurs and startup businesses working or operating at the NIC shall be granted enterprise registration within 1 business day from the date on which the Business Registration Division receives valid applications for enterprise registration.

2. Entrepreneurs and startup businesses working or operating at the NIC shall be given priority to complete procedures for establishing industrial property rights ahead of the appointment date upon request.

Article 13. Other preferential mechanisms and policies

Entrepreneurs or startup businesses working or operating at the NIC, and the NIC’s partners supporting innovation shall be entitled to the following preferential mechanisms and policies:

1. They may raise and receive funding from research funding programs of the Government and domestic and foreign enterprises, organizations and individuals in accordance with the law to put their ideas or concepts into practice on the basis of exploitation of new and fast-growing intellectual property, technologies, and business models.

2. They shall have access to utmost tax incentives prescribed in law on taxes.

Chapter III

IMPLEMENTATION PROVISIONS

Article 14. Responsibilities of relevant authorities

1. Based on the contexts over periods and stages of socio-economic development, the Government shall consider issuing the decisions to apply part or all of the mechanisms and policies specified in this Decree to innovation centers and other innovation hubs.

2. The Ministry of Planning and Investment:

a) Petitioning the Government or the Prime Minister, under their jurisdiction, to issue decisions on other additional preferential mechanisms and policies to promote operations of the NIC, organizations and individuals working or operating at the NIC and investment projects especially needed for the NIC in each period and stage of its development;

b) Presiding over and cooperating with the Ministry of Science and Technology and other relevant authorities in seeking the Government’s decisions on those specified in clause 1 of this Article;

c) Instructing the NIC to mobilize legal resources to build and operate the NIC according to its objectives, functions, and duties which have been decided by competent authorities; issuing regulations on the NIC’s support referred to in Article 11 of this Decree under their delegated authority.

3. The Ministry of Science and Technology:

a) Instructing the National Office of Intellectual Property to carry out the procedures for the establishment of industrial property rights specified in Clause 2 of Article 12 of this Decree;

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

c) Cooperating with the Ministry of Planning and Investment in seeking the Government’s decisions on the cases specified in Clause 1 of this Article to exercise the State delegated regulatory authority of the Ministry of Science and Technology in accordance with law.

4. The Ministry of Public Security shall provide guidance on the issuance of entry visas under Clause 1 Article 5 hereof.

5. The Ministry of Finance shall recommend the addition of the regulations on enterprise income tax incentives applicable to those beneficiaries specified in Clause 3 of Article 9 of this Decree to the Law on Corporate Income Tax, and the addition of the land and tax incentives for those beneficiaries specified in Clause 2 of Article 13 of this Decree to land and tax-related legislation.

6. Ministries and ministerial-level agencies shall, within their assigned functions, duties and powers, collaborate with the Ministry of Planning and Investment in supporting and promoting startup and innovation activities at the NIC.

7. People’s Committees of centrally-affiliated cities and provinces:

a) Assisting in establishment and operation of the NIC's branches or affiliates located within their localities.

b) Connecting activities of local startup and innovation centers with those of the NIC.

Article 15. Implementation

1. This Decree shall take effect from October 5, 2020.

2. Ministers, Heads of Ministry-level agencies, Heads of Governmental bodies, and Presidents of People’s Committees of centrally-affiliated cities and provinces, shall be responsible for implementing this Decree./.