PM issues decision adding to criteria set out in Article 75 of Investment Law.
Prime Minister Nguyen Tan Dung has signed a decision that stipulates new criteria for defining a “high-tech enterprise” in addition to those set out in Points A and B of Article 75 of the Law on Investment.
Revenue from high-tech products must represent at least 70 per cent of total annual sales.
The ratio of total expenditure on research and development in Vietnam over revenue must be at least 1 per cent. For businesses with total capital exceeding VND100 billion ($4.6 million) and employing 300 people the ratio must be at least 0.5 per cent.
The ratio of the number of employees with undergraduate qualifications or higher who conduct research and development, out of the total workforce, must be at least 5 per cent. For businesses with total capital of over VND100 billion ($4.6 million) and a workforce of over 300, the ratio is at least 2.5 per cent, but at a minimum of 15 people.
Under Points A and B in Article 75, production at high-tech enterprises must be on the list of high-tech products where development is encouraged. Such enterprises must also apply environmentally-friendly measures, promote energy savings in production, and ensure product quality management follows technical regulations in Vietnam or the standard of specialized international organizations.