• Decree No. 06/ND-CP, 6 March/2000 of the Government on Investment Co-operation With Foreign Entities in the Fields of Medical Examination and Treatment of Diseases, Education and Training, and Scientific Research
• Decree No. 07/NQ-CP, 5 June 2000 of the Government On the Building and Development of the Software Industry
During the Period 2000 – 2005
• Decree No. 10/ND-CP, 23 January 1998 of The Government on A Number Of Encouragement and Guarantee Measures for Foreign Direct Investment Activities in Vietnam.
• Decree No. 12/CP, 18 February 1997 of the Government on Setting Forth Detailed Regulations for Implementing The Law on Foreign Investment in Vietnam
• Decree No. 24/ND-CP, 31 July 2000 of the Government on Regulating in detail the implementation of the Law on Foreign Investment ("FIL") in Vietnam
• Decree No. 36/CP, 24 April 1997 of the Government on Industrial Zones, Export Processing Zones and High-Tech Zones
• Decision No.21/2001/QD-UB:
DECISION OF THE  CHAIRMAN OF THE CITY PEOPLE'S COMMITTEE
Regarding a number of preferential policies and measures for encouraging investments in Quang Trung Software Park
 
• Decree No. 02/ND-CP, 15 August 2000 of the Government on Investment in The Basis of Build-Operate-Transfer Contracts, Build-Transfer Contracts Applicable to Foreign Investment in Vietnam
• Circular No. 02/TT-NH7, 18 February 1997 of the Government on regulating details in implementing the Law on foreign investment in VN, the state bank of Vietnam issues the guideline in foreign exchange control of foreign invested enterprises and foreign parties of business cooperation contracts.
• Decree No. 62/ND-CP, 15 August 2000 of the Government on Promulgating The Regulations on Investment in The Basis of Build-Operate-Transfer Contracts, Build-Transfer-Operate Contracts and Build-Transfer Contracts Applicable to
Foreign Investment in Vietnam.
• Decree No.45/2000/ND-CP: DECREE OF THE GOVERNMENT Setting Forth Regulations on Representative Offices and Branches in Vietnam of Foreign Merchants and Foreign Tourism Enterprises
Decision No.128/2000/QN-TTg:DECISION OF THE PRIME MINISTER OF THE GOVERNMENT
On a number of policies and measures to stimulate investment And development of the software industry

DECREE NO 7

I POSITION AND OBJECTIVES OF THE BUILDING AND DEVELOPMENT OF THE SOFTWARE INDUSTRY
| 1. Positions |  | 2. Objectives | 
II THE CONTENTS OF AND MEASURES FOR THE BUILDING AND DEVELOPMENT OF THE SOFTWARE INDUSTRY
• 1. Training of Human Resources
• 2. Creation of Favorable Investment Environment
• 3. Enhancement of the Effectiveness and Efficiency of the Law
• 4. Market Expansion
III IMPLEMENTATION ORGANIZATION
| 1 | 2 |


No. 07/2000/NQ-CP

THE GOVERNMENT SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
--------- * ---------

Hanoi, 5 June 2000

RESOLUTION OF THE GOVERNMENT

On the Building and Development of the Software Industry
During the Period 2000 – 2005


The software industry is an important industry of the information technology sector. The software industry includes activities of producing [and] doing business in software products and providing software services. The development of information technology, especially the software industry, is the policy that has received priority attention of our Party and the State; is one of the short-cut [and] interception approaches in order to effect national industrialization and modernization [and] contributes significantly to ensuring national security.

In the implementation of Resolution No. 49/CP dated August 4, 1993 of the Government on the Development of Information Technology in our country, over the past years, the information technology sector has attained meaningful achievements that have been initially applied to the technical and economic sectors and taught within the national education system. The contingent of information technology experts of university level has grown considerably. Computer networks for specific use have been set up and brought about its positive effectiveness in a number of socio-economic fields, thus contributing to the task of State management. However, up until now, there has been a lack of co-ordinated policies and measures to encourage the building and development of the software industry.

The development of the software industry of our country enjoys the following fundamental advantages: the world information technology market is growing on a daily basis, large initial investments are not required, Vietnamese people are capable of picking up this technology quickly, there are many experts within the overseas Vietnamese community who have experience in respect of the software industry and who wish to co-operate and invest in Vietnam.

Nevertheless, the development of the software industry of our country has been facing various difficulties and challenges: the domestic information technology market is still limited, telecommunications infrastructure has yet to fully satisfy the needs for the development of information technology in general and the software industry in particular, the investment environment for the software industry in our country is not yet favorable [and] there is still a big gap in comparison with neighboring countries, the general awareness of the overall society in respect of the protection of intellectual property rights, especially copyright over software products, is somewhat low.



I. POSITION AND OBJECTIVES OF THE BUILDING AND DEVELOPMENT OF THE SOFTWARE INDUSTRY

>> 1. Position

The software industry is a new economic industry with high added value and great prospects. The State creates all favorable conditions to encourage organizations and individuals of all economic sectors to invest in and develop this industry.

The State encourages and provides maximum preferential treatment for the development of the software industry. Initially, attention will be given to the form of export processing and the supply of services to foreign companies. At the same time, the domestic market should be expanded, and initially emphasis will be put on the development of software in certain fields that would bring about socio-economic efficiency in the immediate future [and] the substitution of imported software products. The export of software workers and packaged software shall be promptly organized in order for the software industry of Vietnam to step by step gain its place in the world market.

Scientific research, technological development, training and production shall be closely combined in order to create a premise for the subsequent developing steps in the field of software industry. In particular, organizations and individuals are encouraged to invest in scientific research and technological development in this field.

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>> 2. Objectives

To build the software industry into a spearhead economic industry with high growth rate, thus contributing to the modernization and stable development of socio-economic branches, strengthening the State management capability and ensuring national security.

To bring into full play the intellectual potentials of the Vietnamese people, especially the young generation [and] to prepare human resources of high quality for the coming decades.

To strive to reach the output value of about US$500 million by the year 2005.

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II. THE CONTENTS OF AND MEASURES FOR THE BUILDING AND DEVELOPMENT OF THE SOFTWARE INDUSTRY

>> 1. Training of Human Resources

All forms of training, retraining, coaching and upgrading shall be utilized so that by the year 2005, there shall be approximately 25,000 high-level experts and professional programmers who are fluent in English.

The Ministry of Education and Training shall be the focal authority and shall co-ordinate with the Ministry of Science, Technology and the Environment and relevant Ministries and branches in preparing and implementing the plan for quick development of such human resources, [and] to enhance, expand and raise the quality of software technology training within the national education system [and] to intensify the wide-spread use of the Internet in universities and step-by-step in the general education schools for the purpose of serving the task of training well.

Domestic and overseas organizations and individuals are encouraged to engage in the training of human resources for information technology in general and the software industry in particular in the form of software service enterprises and other forms. Particular focus will be given to creating favorable conditions for students who have graduated with other majors to be trained and upgraded in information technology so that they can participate in the development of the software industry.

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>>
2. Creation of Favorable Investment Environment.

The software industry is an industry in which investment is especially encouraged. The State will apply the maximum preferential treatment currently in effect to enterprises engaging in the software industry. Software products manufactured and services supplied domestically are not subject to value added tax. If they are exported, the tax rate of 0% and tax refunds will be applied in accordance with the provisions of law. The maximum preferential enterprise income tax rate will be applied in accordance with the Law on Encouragement of Domestic Investment (amended) and the Law on Foreign Investment in Vietnam. The State adopts the policy of re-financing enterprises engaging in the software industry; the re-financing will be, at the maximum, equal to the amount of enterprise income tax paid by the enterprise to the State budget for re-investment in development. Preferential personal income tax treatment for professional personnel directly participating in the development of the software industry will be applied. Enterprises engaging in the software industry will be entitled to the most favorable treatment in respect of credits and preferential treatment in respect of land use in accordance with the provisions of law.

The Ministry of Science, Technology and the Environment shall be the focal authority and shall co-ordinate with the Ministry of Finance and relevant Ministries and branches in setting up and promulgating the rules on the organization, management and operation of the Venture Investment Fund for the development of high technologies, especially the software technology.

Research shall be done to establish gateways to directly connect with the Internet in the Hoa Lac High Technology Zone and the Quang Trung Software Industrial Zone (Ho Chi Minh City) so that software enterprises can easily and fully make use of Internet services of high quality at prices competitive with the prices of other countries in the region.

The Ministry of Planning and Investment shall be the focal authority and shall co-ordinate with the Ministry of Finance, the Ministry of Science, Technology and the Environment, relevant Ministries and branches, and the People’s Committees of the provinces and cities directly under the Central Authority in computing and channeling domestic and foreign capital sources for annual and 5-year plans for projects investing in the development of the software industry, [and] find ways to attract foreign direct investment (FDI) capital and official development assistance (ODA) capital sources for projects investing in the software industry.

Favorable conditions shall be created for associations operating in the software industry to contribute practically to the process of building [and] developing the software industry, and for copyright protection in this field.

The Committee for Overseas Vietnamese shall co-ordinate with relevant Ministries [and] branches in order to create all favorable conditions for overseas Vietnamese to co-operate with and support domestic organizations and individuals to promote the market and the transfer of knowledge and technology. Overseas Vietnamese are encouraged to invest, produce and do business in software in Vietnam.

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>> 3. Enhancement of the Effectiveness and Efficiency of the Law

The Ministry of Justice, the Ministry of Science, Technology and the Environment, the Ministry of Culture and Information, and relevant Ministries and branches shall urgently commence the following tasks:

  • To review for the purposes of amending [and] supplementing, or to send submissions to competent State authorities for the purposes of amending [and] supplementing, statutory instruments concerning software production, trading, service provision and copyright, in order to encourage investment in and the development of the software industry;
  • To enhance the capability [and] efficiency of State management authorities in regard to the areas of information security and safety;
  • To devise and implement programs on training [and] upgrading legal knowledge of judicial officers and legal consultants in respect of copyright protection for software products;
  • To strengthen the works of propaganda, dissemination [and] education among the overall society for the purpose of raising their sense of law observance, respect for and protection of copyright of software products; [and] to enforce copyright protection in this field;
  • To study and promulgate appropriate policies concerning the publication [and] inspection of software exports and imports; [and]
  • To make public statistical data regarding the information technology industry in general and the software industry in particular in accordance with the national economic classification system.
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>> 4. Market Expansion

The Ministry of Trade, the Ministry for Foreign Affairs, the Ministry of Planning and Investment, the Ministry of Science, Technology and the Environment and relevant Ministries and branches shall organize trade promotions and create conditions for domestic enterprises engaging in the software industry to open branches and representative offices in the country and abroad, to make overseas investment and to export software workers.

Agencies, organizations and individuals of all economic sectors are encouraged to invest in the application of information technology, [and] to use the products and services offered by domestic enterprises engaging in the software industry. Conditions shall be created for foreign software enterprises to invest and open branches and representative offices in Vietnam.

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III. IMPLEMENTATION ORGANIZATION

>> 1. The Ministry of Science, Technology and the Environment shall be the focal authority and shall co-ordinate with the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Industry, the Ministry of Trade, the Ministry of Education and Training, the General Department of Post and Telecommunications and relevant Ministries and branches, and shall be responsible to the Government:
a. To complete the Plan for the Building and Development of the Software Industry during the Period 2000-2005 for submission to the Prime Minister of the Government for approval;
b. To submit policies for encouraging investment in and the development of the software industry to the Prime Minister of the Government for decision and promulgation; [and]
c. To organize the implementation of this Resolution; to monitor, oversee and inspect and to compile reports for submission to the Prime Minister of the Government on a periodical basis.

If any problems arise during the course of implementation, the same must be promptly reported to the Prime Minister of the Government for instructions.

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>> 2. Ministers, Heads of Ministerial-Level Authorities, Heads of Bodies Directly Under the Government, and Chairpersons of the People’s Committees of provinces and cities directly under the Central Authority are responsible for implementing this Resolution.


ON THE BEHALF OF THE GOVERNMENT

PRIME MINISTER

[Signed and sealed by]

Mr. Phan Van Khai

Recipients:

•

Standing Committee of the Political Bureau;

•

Prime Minister and Deputy Prime Ministers of the Government;

•

Ministries, Ministerial-Level Authorities and Organs Directly Under the Government;

•

People's Councils and Committees of Provinces and Cities Directly under the Central Authority;

•

Central Office and Commissions of the Party;

•

Office of the National Assembly;

•

Office of the President of State;

•

People's Supreme Court;

•

People's Supreme Institute of Public Prosecutions;

•

Central Bodies of Associations;

•

Gazette;

•

Office of the Government: the Minister and Chairman, Instrumentalities, Departments, Subordinate Units;

•

Archived at: KG (5 sets) and documentation office

 
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