In the current trend of globalization and economic integration, technology is the key factor determining the competitiveness of the national economy. The birth and rapid development of modern scientific and technological achievements are shortening the lifespan of technology, making the need for innovation and technology transfer (“TT”) become increasingly urgent. Over the years, Vietnam’s Socialist Party and State have always paid attention to science and technology development activities in general and TT in particular; encourage the promotion and effective development of this activity. Many policies and strategies to improve efficiency in receiving and applying foreign advanced technologies to domestic production as well as bringing domestic technology into production practice in each industry and field are considered as important stages of production key has been issued; together with the introduction of the Law on Technology Transfer No. 07/2017/QH14 dated June 19, 2017 (hereinafter referred to as the “Law on TT”), it has created a premise for technology transfer activities in Vietnam to develop in a timely manner.
Although the law encourages technology transfer, not all technologies are allowed to be freely transferred. Articles 10 and 11 of the Law on TT stipulate the types of technologies that are restricted from being transferred or banned from transferring as follows:
“Article 10. Technologies restricted from transfer
- The technology transfer from abroad into Vietnam or domestically shall be restricted in the following cases:
- a) Technologies, machinery and equipment accompanying the technologies which are not popularly used in developed industrialized countries;
- b) Using toxic chemicals or generating hazardous wastes which can meet requirements of the national technical standards and specifications;
- c) Creating products with genetic engineering;
- d) Using or creating radioactive substances which can meet requirements of the national technical standards and specifications;
đ) Using natural resources or minerals which are domestically exploited with limitations;
- e) Technologies of propagating, raising and cultivating new varieties are not verified.
- g) Creating products which have adverse impacts on customs, habits, traditions, practices and social ethnics.
- The technology transfer from Vietnam to abroad shall be restricted in the following cases:
- a) Creating traditional products, manufacturing according to traditional know-how or using, creating categories and species of agricultural varieties, minerals or typical precious materials of Vietnam;
- b) Creating products to export to markets which are competitive with key export products of Vietnam.
- The Government is responsible for promulgating the List of technologies restricted from transfer.
Article 11. Technologies banned from transfer
- The transfer of the following technologies from abroad into Vietnam or domestically shall be banned as follows:
- a) Technologies do not comply with laws on labor safety, labor sanitation, assurance of human health, protection of natural resources, environment and biodiversity;
- b) Technologies create products causing adverse impacts on the social – economic development or badly affecting the national defense, security or social order and security;
- c) Technologies; machinery and equipment accompanying the technologies which are not popularly used and transferred in developing countries and are not in conformity with the national technical standards and regulations;
- d) Technologies use toxic chemicals or generate hazardous wastes which are not in conformity with technical standards and regulations on environment;
đ) Technologies use or create radioactive substances which are not in conformity with technical standards and regulations;
- The transfer of technologies prescribed on the List of State secrets from Vietnam to abroad is banned, unless otherwise stipulated by law.
- The Government is responsible for promulgating the List of technologies banned from transfer.”
The technologies that are restricted and banned from transfer are specified in Appendix II and Appendix III of Decree 76/2018/ND-CP issued by the Government on May 15, 2018.
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