The Government of Vietnam has been and will have policies to improve the efficiency in receiving and applying advanced foreign technologies to domestic production. On the other hand, bringing technology into production and business practices in certain industries and fields promotes these fields. For the above reasons, technology transfer is an activity that many related entities pay special attention to.

According to the Law on Technology Transfer, technology transfer means the transfer of technology ownership or the right to use technology from the party entitled to transfer technology to the transferee. Where:

  • Transfer of technology ownership means the transfer of all ownership, use, and disposition rights to the technology to other individuals or organizations.
  • Transfer of the right to use technology means allowing other organizations or individuals to use the transferred technology.

1. Entities entitled to technology transfer

Currently, entities entitled to technology transfer include:

  • Technology owner;
  • Organizations and individuals are permitted by the technology owner to transfer the right to use the technology.

These entities may choose the scope of the transfer of technology use rights as agreed between the parties, namely exclusive transfer or non-exclusive transfer of use of technology and rights to transfer to third parties.

2. Objects of technology to be transferred

According to the provisions of Clause 1, Article 4 of the Law on Technology Transfer 2017, the transferred technology is one or more of the following objects:

  • Technical know-how, technological know-how;
  • Technological plans and processes; solutions, parameters, drawings, technical diagrams; formulas, computer software, data information;
  • Solutions to rationalize production, innovate technology;
  • Machinery and equipment accompany one of the above-mentioned subjects.

Note that in case the above-mentioned technology objects are protected by intellectual property rights, the transfer of ownership rights shall comply with the provisions of the law on intellectual property.

3. Forms and methods of technology transfer

The parties may choose the forms of technology transfer listed below:

  • Independent technology transfer
  • Technology transfer section in the case of:
  • Investment projects;
  • Capital contribution by technology;
  • Franchise;
  • Transfer of intellectual property rights;
  • Purchase and sale of machinery and equipment as prescribed at Point d, Clause 1, Article 4 of the Law on Technology Transfer 2017.
  • Technology transfer in other forms as prescribed by law.

Normally, in the form of an independent technology transfer or a capital contribution by technology, the parties must make a contract. For the remaining forms, the parties expressed in the form of contracts or terms, annexes of contracts, or investment project dossiers has the contents required by law.

For technology transfer method, it will be through 04 basic methods:

  • Transfer of technological documents;
  • Train the technology recipient to grasp and master the technology within the agreed term;
  • Appoint technical consultants to technology recipients to put technology into application and operation to achieve targets on product quality and progress as agreed;
  • Transfer of machinery and equipment accompanied by technologies specified at Point d, Clause 1, Article 4 of the Law on Technology Transfer 2017

In addition to the above 04 methods, the parties can agree on other transfer methods.

4. Objects of technology encouraged to transfer

Currently, technology subjects encouraged for transfer are specified in Article 9 of the Law on Technology Transformation 2017 and supplemented by Article 3 of Decree 76/2018/ND-CP. Accordingly, technology objects are encouraged by the State to be transferred, including:

  • High-tech; machinery and equipment accompanying high technology;
  • Advanced technology, new technology, and clean technology suitable to the socio-economic conditions of Vietnam;
  • Technology; machinery and equipment attached to technologies specified at Point d, Clause 1, Article 4 of the Law on Technology Transfer 2017 existing in Vietnam, except for the two types of technologies mentioned above, Clause 2, Article 10 of the Law on Technology Transfer 2017; Technologies using raw materials as products, selling domestically produced products and supplies are encouraged to be transferred abroad.

5. Objects of technology restricted from transfer

Vietnam also stipulates a specific list of technology objects to technology transfer from abroad to Vietnam and technology transfer in foreign countries if they fall into the following cases:

  • Technology; machinery and equipment accompanied by technology that is no longer commonly used in industrialized countries;
  • Using hazardous chemicals or generating hazardous wastes that meet national standards and technical regulations;
  • Creating products by genetic modification methods;
  • Using radioactive substances and creating radioactive substances that meet national standards and technical regulations;
  • Use of resources and minerals restricted from domestic exploitation;
  • Technology for breeding, raising, and growing new varieties has not been tested;
  • Creating products that adversely affect folkways, customs, traditions and social morals.

Technology transfer from Vietnam to foreign countries shall be restricted in the following cases:

  • Creating traditional products, producing according to traditional know-how or using, creating strains and varieties of agriculture, minerals, and rare materials typical of Vietnam;
  • Create export products for the market that are competitive with Vietnam’s national key exports.

6. Objects of technology prohibited from transfer

  • Technology that fails to meet the provisions of the law on occupational safety and hygiene, ensuring human health, protecting natural resources, the environment, and biodiversity;
  • Technologies that create products cause adverse consequences for socio-economic development and adversely affect national defense, security, social order, and safety;
  • Technology; machinery and equipment attached to technologies that are no longer commonly used and transferred in developing countries and do not meet national standards and technical regulations;
  • Technology that uses toxic chemicals or generates waste that does not meet national standards, and technical regulations on the environment;
  • The technology uses radioactive substances and creates radioactive substances that do not meet national standards and technical regulations.

Based on the general regulations on technology objects prohibited from transferring, the Government has issued a guiding decree that specifically lists the list of technologies prohibited from transfer in Decree 78/2018/ND-CP.

Technology transfer plays an important role in socio-economic development. Therefore, in addition to regulations related to technology transfer, the State also encourages organizations and individuals to improve their technical and technological qualifications to shorten the gap between our country and the world. In addition, the State encourages technology transfer in combination with activities to improve the technological and technical capacity of each specific branch and enterprise.

The article is based on laws applicable at the time noted as above and may no longer be appropriate at the time the reader approaches this article as the applicable laws and the specific cases that the reader may wish to apply may have changed. Therefore, the article is for referencing only.


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