In Vietnam, technology transfer initiatives are quickly becoming an essential component of the nation’s socioeconomic growth. In the context of growing international integration, this not only offers businesses excellent development prospects but also helps to strengthen the country’s overall competitive ability.
To ensure justice, transparency, and sustainability in technology transfer, it is essential to comprehend the rights and responsibilities of the various stakeholders involved in this process, including businesses, research institutions, and the government. In order to ensure the shared interests of the community and the country, the parties must accept and carry out their responsibilities properly while also having their rights fairly protected.
1. What is technology transfer?
According to Clause 7 Article 2 of the Law on Technology Transfer 2017, technology transfer refers to the transfer of the ownership or the right to use a given technology from the party that has the right to transfer such technology to the transferee. In which, technology transfer includes:
- Domestic technology transfer refers to the transfer of technology which is made within the territory of Vietnam.
- Transfer of technology from foreign countries to Vietnam refers to the transfer of a given technology across border to Vietnam.
- Transfer of technology from Vietnam to foreign countries refers to the transfer of a given technology which is developed within the territory of Vietnam across border to a foreign country.
2. Types of technology transfer services in Vietnam
Specifically, in Article 45 of the Law on Technology Transfer 2017, the types of technology transfer services include:
- Technology transfer brokerage refers to a set of activities which provide assistance in seeking parties interested in technology transfer. (Clause 20, Article 2 of the Law on Technology Transfer 2017)
- Technology transfer consultancy refers to a set of activities which provide assistance in selecting and applying technology; collecting information about technology, patients and/or findings on scientific research and technological development; negotiating, concluding and performing technology transfer agreements. (Clause 21, Article 2 of Law on Technology Transfer 2017)
- Technology appraisal refers to the evaluation of level and economic effects of a given technology, its environmental and socio-economic impacts. (Clause 17, Article 2 of the Law on Technology Transfer 2017)
- Technology valuation is the process of estimating the monetary value of a technology by a technology valuation authority or organization in conformity with the market price at a given place and time to serve specific purposes as defined in the applicable valuation standards. (Clause 18, Article 2 of the Law on Technology Transfer 2017)
- Technology assessment refers to the process of identifying criteria of a given technology which have been satisfied through its applications against those agreed upon by the parties. (Clause 19, Article 2 of the Law on Technology Transfer 2017)
- Promotion of technology transfer refers to a set of activities which create and improve the transfer of technology; provide services of advertising, exhibition and introduction of technology; organize technology markets, trade fairs and exhibitions, points of technology supply and demand, and technology transfer centers. (Clause 22, Article 2 of the Law on Technology Transfer 2017)
3. Rights and Obligations of Technology Transferors
Technology transferors have the following rights:
- Demand that the technology transferees fulfill their commitments in the contract;
- Receive full payment and enjoy other rights and benefits as agreed upon in the contract;
- Hire organizations or individuals to perform technology transfer services as regulated by law;
- Request competent authorities to protect the legal rights and interests related to the transferred technology;
- Demand that technology transferees take remedial measures and compensate for damages in case of failure to fulfill obligations stipulated in the contract, except in cases of other agreements;
- Other rights as prescribed by law.
Technology transferors have the following obligations:
- Ensure that the technology transfer rights are legal and not restricted by third parties, except in cases of other agreements;
- Fulfill commitments in the contract and compensate for damages to technology transferees or third parties due to contract breaches;
- Maintain confidentiality of technology and other information during negotiations, contract signing, and implementation according to agreements;
- Notify technology transferees and take appropriate measures when technical difficulties arise that may affect the results of technology transfer commitments in the contract;
- Apply for a Technology Transfer License in cases of restricted technology transfer from Vietnam to foreign countries, except in cases of other agreements;
- Fulfill financial obligations and other duties as prescribed by law.
4. Rights and Obligations of Technology Transferees
Technology transferees have the following rights:
- Demand that technology transferors fulfill their commitments in the contract;
- Request competent authorities to protect legal rights and interests related to the transferred technology;
- Hire organizations or individuals to perform technology transfer services as regulated by law;
- Demand that technology transferors take remedial measures and compensate for damages in case of failure to fulfill obligations stipulated in the contract, except in cases of other agreements;
- Other rights as prescribed by law.
Technology transferees have the following obligations:
- Fulfill commitments in the contract and compensate for damages to technology transferors or third parties due to contract breaches;
- Maintain confidentiality of technology and other information during negotiations, contract signing, and implementation according to agreements;
- Apply for a Technology Transfer License in cases of restricted technology transfer from foreign countries to Vietnam, except in cases of other agreements;
- Fulfill financial obligations and other duties as prescribed by law.
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