Amendments to the Law on Technology Transfer:

In the context of digital transformation, international integration, and the demands for green and sustainable development, the Law on Technology Transfer needs comprehensive revision. With six new policy groups, the draft (amended) Law not only addresses shortcomings but also paves the way for the commercialization of research results, encourages indigenous technologies, and strictly controls cross-border technology transfer, creating a strong impetus for innovation and enhancing national competitiveness.

Airbus is undertaking a project to manufacture emergency exit doors for its A321 neo-narrow-body aircraft in Vietnam. These emergency exit doors are being produced in Hanoi by MHI Vietnam, a subsidiary of Mitsubishi Heavy Industries of Japan.

Urgent need arising from practical experience.

The Law on Technology Transfer was first enacted in 2006. In 2017, the law was amended to better suit the context of integration. However, after nearly a decade of implementation, the law has revealed many shortcomings. The scope of regulated technologies does not fully encompass emerging technologies; the financial and legal mechanisms for both the transferor and the recipient are still lacking...

Between 2017 and 2023, the whole country had 579 technology transfer agreements granted registration certificates, with a total value of over 114,000 billion VND. Notably, up to 85% of the contracts belonged to foreign-invested enterprises, accounting for 93% of the value. Only two contracts involved technology transfer from Vietnam to foreign countries. Furthermore, over 65% of foreign direct investment (FDI) enterprises applied technology that was over 20 years old, while only 15% had access to modern production technology.

This situation reveals a heavy reliance on imported technology, much of which is not cutting-edge. Coupled with this is the problem of transfer pricing, a lack of transparency in technology valuation, and even instances where foreign investors contribute outdated machinery that has already been fully depreciated but are still valued at high prices, resulting in significant revenue losses for the government. Consequently, while Vietnam has received a great deal of technology, the spillover effects and innovation within the economy remain limited.

Another limitation is human resource capacity. Although technology transfer activities create opportunities to access new knowledge, this workforce is unevenly distributed, mainly concentrated in large enterprises and research centers. Universities and research institutes have very low revenue from technology transfer.

In this context, according to Nguyen Phuong Tuan, Deputy Chairman of the National Assembly's Committee on Science , Technology and Environment, amending the Law on Technology Transfer is necessary and urgent to improve the legal framework, increase transparency, create favorable conditions for businesses, while ensuring risk management, protecting intellectual property rights, and promoting innovation.

6 new policy groups

According to Deputy Minister of Science and Technology Hoang Minh, head of the drafting team for the project to amend and supplement several articles of the Law on Technology Transfer, the draft (amended) Law will be submitted to the National Assembly at its tenth session. The Law is expected to amend 26 out of 61 articles, focusing on six major policy groups.

Firstly , the scope of regulated technologies needs to be defined. The law will include strategic technologies and green technologies to encompass new technologies in line with global trends, while also reviewing and standardizing concepts and terminology. This will provide a basis for Vietnam to proactively access and master new technologies, in line with the goal of green and sustainable economic development.

Secondly , the law supports and promotes the transfer of domestically produced technology. It clearly defines ownership and usage rights of technology; allows for technology contributions to investment projects; and adds to the list of technologies encouraged for transfer. This is a significant change, creating a legal basis for the more robust commercialization of domestic research results.

Thirdly , the law aims to develop a transparent and professional science and technology market. It will supplement policies for technology exchanges, innovation centers, incubation centers, and technology valuation and assessment services. The content of technology transfer contracts will also be regulated in more detail. These innovations aim to overcome the current weak market conditions and the lack of connection between research, production, and the market.

Fourth , create strong financial and legal incentives. The law provides incentives for both the technology transferor and the technology recipient. FDI enterprises that announce and implement a plan to transfer technology to Vietnamese enterprises will receive incentives. In particular, for international tenders in strategic technology fields, there needs to be a commitment from the foreign contractor regarding technology transfer and training of Vietnamese personnel.

Fifth , strictly control cross-border technology transfer. The law supplements regulations on technology transfer from Vietnam to abroad, while also amending prohibited acts, aiming to both ensure technological security and promote effective international cooperation.

Sixth , strengthen the capacity for state management, supervision, and effectiveness measurement. Investment projects using technology will have to be appraised right from the policy decision stage.

These policy groups are expected to address shortcomings and create a modern, transparent, and consistent legal framework with new laws such as the Law on Science, Technology and Innovation, the Law on High Technology, and the Law on Artificial Intelligence... At that point, these will not only be legal tools but also driving forces to promote the innovation ecosystem and enhance national competitiveness in the digital age.

Source: https://hanoimoi.vn/sua-doi-luat-chuyen-giao-cong-nghe-tao-dong-luc-moi-cho-doi-moi-sang-tao-719409.html