DECISION

ON THE ISSUANCE OF "REGULATION ON CRITERIA FOR IDENTIFYING HIGH-TECH PRODUCT MANUFACTURING PROJECTS"

THE MINISTER OF SCIENCE AND TECHNOLOGY

Pursuant to Decree No. 54/2003/ND-CP dated May 19, 2003 of the Government on defining the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology, and Decree No. 28/2004/ND-CP dated January 16, 2004 of the Government on amendments to certain provisions of Decree No. 54/2003/ND-CP;

Pursuant to Decree No. 99/2003/ND-CP dated August 28, 2003 of the Government on the issuance of the Regulation on High-Tech Parks;

Upon the proposal of the Director General of the High-Tech Department,

HEREBY DECIDES:

Article 1. Issue together with this Decision the "Regulation on criteria for identifying high-tech product manufacturing projects”.

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Article 3. The Director General of the High-Tech Department, the Head of the Management Board of Hoa Lac High-Tech Park, the Head of the Management Board of Ho Chi Minh City High-Tech Park, and all relevant organizations and individuals shall implement this Decision. /.

PP. MINISTER
DEPUTY MINISTER




Le Dinh Tien

REGULATION

ON CRITERIA FOR IDENTIFYING HIGH-TECH PRODUCT MANUFACTURING PROJECTS
(Enclosed with Decision No. 27/2006/QD-BKHCN dated December 18, 2006 of the Minister of Science and Technology)

Article 1. Scope and regulated entities

This Regulation stipulates the criteria for identifying high-tech product manufacturing projects (hereinafter referred to as projects) invested in Hoa Lac High-Tech Park and Ho Chi Minh City High-Tech Park (hereinafter referred to as High-Tech Parks).

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Article 2. Criteria for identifying projects

Projects selected for investment in High-Tech Parks must meet the following criteria:

1. The project activities must fall within the high-tech sectors encouraged for investment as specified in Clause 2, Article 5 of Decree No. 99/2003/ND-CP dated August 28, 2003 of the Government on the issuance of the Regulation on High-Tech Parks, including:

a) Information and communication technology, and software technology;

b) Biotechnology for agriculture, aquaculture, and healthcare;

c) Microelectronics, precision mechanics, mechatronics, optoelectronics, and automation;

d) New materials technology, nanotechnology;

dd) Environmental technology, new energy technology;

e) Certain other special technologies.

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3. Research and development expenditure of the project:

a) The total expenditure on research and development carried out in Vietnam must account for at least 5% of the project's total annual revenue, or the expenditure on research and development activities carried out in Vietnam must account for at least 1% of the project's total annual revenue.

b) The expenditure on research and development expenditure and operating expenditures on research and development are specified in Appendix 1 enclosed herewith.

4. The proportion of employees with a bachelor’s degree or higher directly engaged in research and development in the project must be at least 5% of the total project workforce.

5. The project's technological production line must meet advanced standards, ensuring the following requirements: Production must be carried out on a specialized and automated production line, in which at least one-third of the automated equipment is controlled by programmed systems; the working environment must meet industrial hygiene standards as prescribed by Vietnamese law.

6. The project’s quality control system must meet specialized international standards (e.g., ISO 9000/2001, CMM, or GMP, etc.); a computerized enterprise management system must be implemented.

7. The project must comply with environmental standards and regulations applicable to its sector as prescribed by Vietnamese law. Projects are encouraged to achieve international environmental standards such as ISO 14000 or equivalent.

Article 3. Implementation

1. The Management Boards of the High-Tech Parks, based on the strategies and development objectives of the High-Tech Parks, actual development conditions, and the specific nature of each high-tech sector:

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If necessary, the Management Boards of the High-Tech Parks may include high-tech products not listed in Appendix 2 of this Regulation in the List of high-tech products encouraged for investment in their respective High-Tech Parks, subject to written approval from the Ministry of Science and Technology.

b) Guide investors in preparing investment projects, including explanations on project technology and technological processes; establish commitments between investors and the Management Boards of the High-Tech Parks regarding the proportion, timeline, and implementation of the provisions in Clauses 3 and 4, Article 2 of this Regulation.

2. The Management Boards of the High-Tech Parks shall enter into agreements with investors on specific measures in case the investors fail to fulfill the commitments made, under the following principles:

a) If the agreed implementation period is exceeded and the investor has not fulfilled the commitments, the investor will no longer be entitled to investment incentives as prescribed by Vietnamese law.

b) If necessary, the investor may request an extension of the commitment period from the Management Board of the High-Tech Park, provided that a legitimate reason is presented and that at least 60% of the commitments specified in Clauses 3 and 4, Article 2 of this Regulation have been fulfilled.

3. The Management Boards of the High-Tech Parks shall facilitate and encourage the implementation of the standards stipulated in this Regulation for projects that were granted investment licenses before the effective date of this Regulation.

4. During implementation, if any difficulties or issues arise, the Management Boards of the High-Tech Parks shall promptly report to the Ministry of Science and Technology for consideration and guidance.

Annually, the Ministry of Science and Technology shall conduct inspections on the compliance of projects in the High-Tech Parks with the standards stipulated in Article 2 of this Regulation./.

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RESEARCH AND DEVELOPMENT EXPENDITURES
(Issued together with Decision No. 27/2006/QD-BKHCN dated 18/12/2006.)

1. Research and development expenditures include: Expenditure on constructing technical infrastructure for research; expenditure on research and development activities; expenditure on training research personnel.

2. Expenditure on constructing technical infrastructure for research includes:

a) Expenditure on constructing and installing facilities for research, experimentation, and testing.

b) Expenditure on procuring equipment for research, experimentation, and testing.

c) Expenditure on procuring computer software and technical documentation.

3. Expenditure for research and development activities includes:

a) Wages, salaries, and allowances for research staff and research support personnel; remuneration for experts providing review, critique, and evaluation of research results; wages for other workers participating in and supporting research; expenditure for seminars and scientific conferences related to the project's research content.

b) Procurement and transportation of raw materials, materials, chemicals, fuels, and energy for research purposes.

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d) Leasing of facilities and equipment for research, experimentation, and testing.

dd) The following expenses shall not be included in the expenditure for research and development activities: the cost of product quality inspection or periodic inspection of raw materials, materials, fuels, and energy; the cost of procuring tools and products for production; the cost of research activities in the field of social sciences and humanities; the cost of periodic data collection not related to research; the cost of efficiency surveys or management research; the cost of research on marketing and sales promotion.

4. Expenditure on training research personnel includes: expenditure for long-term or short-term training for the project's research staff domestically and abroad.

APPENDIX II

I. High-technology products in telecommunications and information technology

Telecommunications

1. Mobile phones, various types of accessories for switchboards and certain telecommunications systems, and satellite terminals.

2. Design and optimization of telecommunications networks and systems within the national telecommunications infrastructure.

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Information technology

4. Computers and peripheral devices.

5. Hard drives and optical discs.

6. High-capacity RAM.

7. Flat-panel displays and high-resolution monitors.

8. High-performance computers.

9. Computers and embedded systems.

10. RFID equipment.

11. Electronic authentication systems.

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13. Value-added software on mobile networks and broadband systems.

14. Computer and network security software.

15. Automated translation software and equipment.

16. Software and equipment for sound recognition.

17. Software and equipment for character and image recognition.

II. High-technology products in automation, mechatronics, and precision mechanics

Electronic equipment

1. Printed circuit boards.

2. Electrical circuit boards and control panels.

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4. Semiconductor devices (diodes, rectifiers, thyristors, diacs, triacs, light-sensing devices).

5. Electronic integrated circuits and micro-assemblies (including fully digital integrated units, fully analog integrated units, and hybrid integrated circuits).

6. Piezoelectric crystals.

7. Fixed capacitors (fixed tantalum capacitors, fixed aluminum electrolytic capacitors, and fixed single- and multilayer ceramic capacitors).

8. Specialized electric machines and molecular accelerators.

9. Electronic audio or image signal devices.

10. Semiconductors and other high-technology electronic components.

Scientific equipment

11. Electronic diagnostic equipment for medical treatment, surgery, and X-ray equipment.

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13. Liquid crystal devices, laser equipment, and other optical instruments.

14. Dental drill motors.

15. Instruments and apparatus for measurement and testing (compasses, steering instruments; devices for measuring and testing liquids and gases; instruments for measuring and testing pressure).

16. . Instruments and apparatus for physical and chemical analysis (gas, smoke, spectral, optical radiation analysis, and light measurement).

17. Precision weighing instruments and devices for hardness testing and density measurement.

18. Instruments and apparatus for automatic regulation and control (temperature control, pressure control).

19. Equipment and instruments for electrical, wave, and spectral analysis (detection of ionizing radiation, analysis of cathode ray oscillations, electrical measurements, and telecommunications measurements).

20. Equipment and instruments for photography, cinematography, fiber optics, contact lenses, artificial eyes, hearing aids, and cardiac pacemakers.

21. Medical equipment in analytical technology and extraction technology in medicine.

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22. Gas turbines.

23. Nuclear reactors.

24. Equipment for isotope separation.

25. Devices operating with laser beams, optical processes or photon beams, ultrasonic waves, electrical discharge or electrochemical processes, electron beams, ion beams, and plasma spraying.

26. Numerically controlled machines (including turning machines, drilling machines, crushers, milling machines, grinding machines, bending machines, folding machines, rolling machines, shearing machines, punching machines, welding machines, gantry welders, and metal plasma gantry welders).

Automation equipment:

27. Equipment and devices for design and manufacturing with computer-aided assistance (CAD/CAM).

28. Equipment and devices for comprehensive integrated automation of production processes, measurement, information processing, weather and disaster forecasting, and environmental protection.

29. Equipment and devices for computer numerical control (CNC) technology in manufacturing and machine tools.

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31.  Equipment for manufacturing nanomaterials and devices for applying nanotechnology.

III. High-technology products in the field of materials

Advanced materials for agriculture:

1. Advanced polymer film materials used for greenhouse covering.

2. Superabsorbent polymers for soil moisture retention, soil improvement, drought mitigation, enhanced germination, and increased crop yields.

3. Biodegradable polymers.

Materials involved in agricultural product preservation:

4. Micronutrients (e.g., rare earth elements) for fertilizers.

5. Materials for agrochemical pesticides.

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Materials for petrochemicals and oil refining.

7. Advanced materials (e.g., utilizing nanotechnology) in the production of high-grade additives and catalysts to enhance productivity, oil refining quality, and petrochemical products.

Technical ceramics.

(Focusing on ceramics for the electrical and electronics industry):

8. High-voltage insulating ceramic materials.

9. High-performance technical ceramics (heat-resistant ceramics, wear-resistant ceramics).

10. Piezoelectric ceramics.

11. High-voltage insulating glass materials;

12. (Electronic ceramics).

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13. Nanocomposites, nano-metals.

14. Nano mmprint, nano lithography.

15. Nano metal oxides.

16. Nano carbon tubes (carbon nanotubes).

17. Nanowires, nanorods.

Materials for energy.

18. Materials used in the manufacture of high-grade power sources. partially replacing traditional coal and oil energy sources.

19. Advanced electrochemical materials for manufacturing specialized high-grade power sources such as Li-ion, Ni-Cd, and Ni-MH batteries used in telecommunications devices, mobile phones, laptops, automobiles, motorcycles, and electric bicycles.

20. Hydrogen fuel cells.

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22. Methanol fuel cells, biological batteries.

Materials for medicine and pharmaceuticals:

23. Materials used in medicine to replace certain human body parts: biopolymers, carbon composites, materials for physiological regulation, materials for growth regulation, porous carbon materials, and bi-oxide materials.

24. High-molecular-weight materials used in pharmaceuticals;

25. High-molecular-weight materials used in cosmetics;

Polymer and composite materials:

26. High-molecular-weight composite materials for transportation: production of canoes, small boats, body parts of certain automobiles, and construction of small bridges over canals and waterways.

27. Composites using natural fibers such as abaca and flax.

28. Conductive polymers.

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Electronic and optoelectronic materials:

30. Magnetic materials applied in the electronics industry: rare-earth magnets, amorphous and microcrystalline materials, nano magnetic materials, utilizing giant magneto-thermal effects.

31. Materials and sensor components (semiconductors, superconductors, novel conductive materials, piezoelectric ceramics) used in measuring devices, automation equipment, as well as in biology and medicine.

Materials and components for optoelectronics and photonics serving the fields of telecommunications and automation. This includes light-detecting semiconductor materials and components, luminescent semiconductor materials and components, semiconductor lasers, nonlinear optical materials, optical fibers, amplified optical fibers, fiber lasers, optical discs, and other optoelectronic materials.

33. Conductive paper (bucky paper).

34. Conductive ink.

Metal materials:

35. Metal matrix composites used in electrical, electronic, and biomedical engineering.

36. High-strength alloy steels.

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IV. High-technology products in the field of biotechnology

In the field of medicine:

1. New-generation vaccines for humans.

2. Recombinant proteins for the treatment of certain human diseases.

3. Antibiotics for human use.

4. Diagnostic kits in medicine, DNA chips.

5. Bio-nanomaterials.

6. Technical sutures and biological thin films used in medicine.

In the field of agriculture, forestry, and fisheries

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8. Recombinant proteins used as biopesticides for pre- and post‑harvest preservation

9. Biological kits and biological electrodes for the diagnosis and treatment of plants and animals.

10. Plant varieties produced using advanced cutting propagation technology, cell culture, pollen culture, and gene transfer to confer resistance to pests and adverse climatic conditions.

11. Hormones for monosex control in fish species.

In industry:

12. Nutrient‑rich preparations (derived from animals or plants) for the health of humans and animals.

13. Biofuels as alternatives to conventional fuels (ethanol; gasoline and diesel derived from xenloluza; fuels produced using hydrogenase; diesel fuel from vegetable oil).

14. Recombinant enzymes.

15. Amino acids, organic acids.

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17. Equipment for research and production of biotechnology.

In the environment

18. Design and manufacture of waste treatment lines (for solid and liquid waste) using biotechnology.

19. Equipment for environmental pollution control and other advanced waste treatment.

Quyết định 27/2006/QĐ-BKHCN về tiêu chuẩn xác định dự án sản xuất sản phẩm công nghệ cao do Bộ trưởng Bộ Khoa học và Công nghệ ban hành