More open policy effectively boosts growth of science-technology enterprises

The Decree No.13/2019/ND-CP on science and technology enterprises (STEs), effective as of March 20, 2019, has erased a rule about chosen fields for the registration of STE. This has allowed several businesses to make good use of advantageous conditions offered to STEs to further develop.

Engineers of ITO Vietnam Co. Ltd., an enterprise that has just received its STE certificate. (Photo: SGGP)

Engineers of ITO Vietnam Co. Ltd., an enterprise that has just received its STE certificate. (Photo: SGGP)

Accordingly, in case of no intellectual property right certificate, a business may submit its registered product to a non-state-budget inspection council in the local area to be approved as an STE. After that, these STEs can enjoy various incentive policies such as business tax exemption in 4 years and then a 50 percent tax decrease in the next 9 years.

Besides, they are entitled to be exempted from or discounted on land and water lease fee. Any manufacturing project of scientific-technological research results are eligible for the government’s investment credit capital and the financial aid from the National Technology Innovation Fund, the National Foundation for Science & Technology, along with an interest rate support of 50 percent at most when loaning from commercial banks.

“Upon the receipt of an STE certificate, we are now paying more attention to intellectual property rights and our contribution to the society”, said Mr. Ngo Vi Dong, President of HPT Vietnam Corporation. Founded in 1995 as a large-scale information technology enterprise, HPT Vietnam Corp. has just received its STE certificate for 21 software, storage, and data security products. Mr. Dong stated that since he is a person of science, his wish is to cooperate more closely with the Ho Chi Minh City (HCMC) Department of Science and Technology to carry out scientific projects for the sake of the city growth.

Sharing the same situation, President cum General Director of Dien Quang Lamp Joint Stock Co. Ho Quynh Hung happily said that his company is now aiming at smart lighting solutions for both households and large-scale businesses. It is developing suitable lighting hardware as well as software and utility services. Mr. Hung affirmed that Dien Quang Lamp JSC. always focuses on Research & Development activities to upgrade product quality and master advanced technologies so as to better serve its customers.

According to the Technology and Technology Market Management Division under the HCMC Department of Science and Technology, in the first 6 months of 2019, the city welcomed 10 more STEs, increasing the total quantity to 83, most of which are information technology ones. This is the positive result of adjusted policies for businesses.

Deputy Head of the above division Chu Ba Long shared that since Decree No.13/2019/ND-CP on STEs removes the rule about chosen fields for the registration of STEs, businesses in any industry that has a scientific-technological product can apply for an STE certificate. Following that, the registered product will be exempted from tax.

There are many methods to prove an enterprise is owning or using technology, including an intellectual property right on its registered product or the submission of the selected product to a non-state-budget inspection council formed by the HCMC Department of Science and Technology.

Mr. Nguyen Khac Thanh, Deputy Director of this department, strongly stated that it is the Decree No.13/2019/ND-CP which makes way for business to easily become an STE and enjoy incentive policies from the government. Therefore, it is necessary to have a specific state unit to be responsible for appropriate procedures to obtain these favorable conditions.

“Lately, we have collaborated with the HCMC Department of Taxation to introduce a unified procedure to better support STEs in drawing tax balance sheets. We hope to have a clearer legal corridor for HCMC to quickly increase the number of STEs in the near future”, said Mr. Thanh.

By BA TAN – Translated by Tuan Lu

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