Vietnam – Changes In Criteria For Determining High-Tech Enterprises.

No.

Criteria

Decision 10

Decision 19

1

Revenue

Revenues generated from hi-tech products must account for at least 70% of the total annual net revenue of enterprises.

Revenues generated from hi-tech products must account for at least 70% of the total annual net revenue of enterprises.

2

Expenses on research and development

Percentage of expenses on research and development of enterprises (including depreciation of investment for infrastructures, fixed assets, recurrent expenditure on research and development; expenditure on training and training assistance for research and development of enterprises, science and technology organisations, training facilities in Vietnam; fees for copyrights…) over total net revenue less input value (including materials and components serving import and domestic procurement) of each year:

(i)         Enterprises with total funding sources of VND 6,000 billion or more and 3,000 workers or more must achieve at least 0.5%;

(ii)       Enterprises not specified under point (i) above with total funding sources of VND 100 billion or more and 200 workers or more must achieve at least 1%; and

(iii)    Other enterprises must achieve at least 2%

Total expenses for research and development activities conducted in Vietnam must account for at least 1% of its total annual net revenue, for small-and-medium-sized enterprises, or 0.5%, for enterprises with a total capital of over VND 100 billion and more than 300 employees.

3

Worker

Percentage of workers participating in research and development having at least college-level education of enterprises over the total number of workers:

(i)         Enterprises with total funding sources of VND 6,000 billion or more and 3,000 workers or more must achieve at least 1%;

(ii)       Enterprises not specified under point (i) above with total funding sources of VND 100 billion or more and 200 workers or more must achieve at least 2.5%; and

(iii)    Other enterprises must achieve at least 5%

The number of research and development staff members holding a university or higher degree must account for at least 5% of the enterprise’s total number of employees, for small and medium-sized enterprises. For enterprises with a total capital of over VND 100 billion and more than 300 employees, the number of research and development staff members holding a university or higher degree must account for at least 2.5% of the total number of employees and be not less than 15.