On 19 June 2017, the Law on Technology Transfer No. 07/2017/QH14 was officially approved by the National Assembly (“2017 Law”). The 2017 Law will take effect on 1 July 2018 and replace to the Law on Technology Transfer No. 80/2006/QH11 (“2006 Law”).
Some new remarkable points of the 2017 Law are as follows:
1. Different from the 2006 Law and its implementation guidelines which stipulate that the registration of the contract on technology transfer is not compulsory, the 2017 Law regulates that contracts on technology transfer must be registered, comprising:
(i) Contracts on technology transfer from a foreign country to Vietnam;
(ii) Contracts on technology transfer from Vietnam to foreign countries; and
(iii) Contract on domestic technology transfer with use of State funding or State budget, excluding cases where the Certificate of registration of science and technology task outcomes is available.
For contracts on technology transfer other than the above cases, the State will encourage the parties to register them only.
2. The effective date of a contract on technology transfer will be agreed by the parties. In cases where the parties fail to agree on such effective date, the contract on technology transfer will become effective as from the date on which it is signed, excluding the cases the contract on technology transfer restricts transfer and the contracts on technology transfer subject to be registered with the State Body.
3. Besides, the 2017 Law also stipulates some measures to encourage technology transfer, develop the scientific and technological market, such as:
(i) Enterprises may use funding from their science and technology development funds to make investment, provide or receive counterpart funds for developing technology innovation;
(ii) Supporting fund, guaranteeing to loan the fund, supporting the loan interest rate from the National Technology Innovation Fund or credit institutions;
(iii) Promoting commercialization of results on scientific research and technological development; and
(iv) Building the National Technology Innovation Program and establishing the National Technology Innovation Fund.