by Apra Law

Currently, with the development of the global economy, technology transfer is essential and plays an extremely important role. Especially for countries in the process of Industrialization – Modernization, including Vietnam. In order for the transfer of technology between countries to be highly effective, enterprises need to understand the regulations in technology transfer activities.

1. What is technology transfer?

According to Article 2 of the 2017 Law on Technology Transfer, technology transfer is the transfer of technology ownership or the right to use technology from the party having the right to transfer the technology to the party receiving the technology.

Example: Mazda car company (Japan) transfers car manufacturing technology to Truong Hai Company to expand the market in Vietnam. With technology transfer and technical support from Mazda, Truong Hai is allowed to manufacture and assemble complete cars according to Mazda’s technology, and then sell them to consumers.

Technology transfer includes:

– Domestic technology transfer means the transfer of technology carried out within the territory of Vietnam.

– Technology transfer from abroad to Vietnam is the transfer of technology across the border of Vietnam.

– Technology transfer from Vietnam to abroad is the transfer of technology from the territory of Vietnam across the border to a foreign country.

2. Subjects of technology transfer

Not all technology objects are allowed to be transferred, but only some objects specified in Article 4 of the Law on Technology Transfer are allowed to do so. Subjects of such technology transfer include:

– Technical know-how, technological know-how;

– Technological plans and processes; solutions, parameters, drawings, technical diagrams; formulas, computer software, data information;

– Solutions to rationalize production and innovate technology;

– Machinery and equipment attached to one of the above-mentioned objects.

In addition, for cases where the above-mentioned technology transfer subjects are protected by intellectual property rights, the transfer of intellectual property rights shall comply with the provisions of the law on intellectual property.

3. Forms of technology transfer

After researching and finding out if their technology is eligible for transfer, technology transfer parties can choose one of the following forms:

First, independent technology transfer;

Second, the technology transfer part (Including the following cases: Investment project; capital contribution by technology; commercial franchising; transfer of intellectual property rights; purchase and sale of machinery and equipment);

Third, technology transfer by other forms as prescribed by law.

In the process of independent technology transfer and technology transfer by technology capital contribution, a contract must be made, while the technology transfer is in the form of project investment, commercial franchising, or transfer of ownership rights. intellectual property, purchase and sale of machinery and equipment and in other forms as prescribed by law are expressed in the form of a contract or a contract’s article, clause or annex.

4. Technology transfer method

Choosing a technology transfer method is a very important step in technology transfer activities. Because the transfer method is in accordance with regulations and suitable for each type and field, it will help the parties save costs, time and especially avoid legal consequences later. According to the provisions of Article 6 of the Law on Technology Transfer, the methods by which the parties choose to transfer technology to each other, including:

– Transfer of documents on technology;

– The transferor provides training for the technology recipient to master and master the technology within the time agreed upon by the parties;

– Sending technical consultants to the technology recipient to put the technology into application and operation to achieve the product quality and progress targets as agreed;

– The transferor must transfer the machinery and equipment together with the technology;

– Other methods as agreed by the parties.

5. Technology transfer right

Technology owners have the right to transfer the ownership right, transfer the right to use the technology to individuals and organizations wishing to use the technology. Organizations and individuals that have the right to use technology may transfer the right to use such technology to other organizations or individuals with the consent of the technology owner.

During the transfer process, stipulate that the scope of technology licensing is agreed upon by the parties on the exclusive or non-exclusive use of the technology or the transferee’s right to transfer the right to use the technology to the transferee. third-party.

6. Prohibited acts in technology transfer

In technology transfer activities, the parties should pay attention to the prohibited acts in technology transfer to limit the arising of risks. These are the following behaviors:

– Taking advantage of technology transfer to adversely affect national defense, security, national interests, human health, environment, morality, fine customs and traditions of the nation; infringing upon the legitimate rights and interests of organizations and individuals; destroying natural resources and biodiversity.

– Transfer of prohibited technology; Unauthorized transfer of transfer-restricted technology.

– Violations against regulations on technology transfer rights.

– Deceiving, falsifying in making and performing technology transfer contracts, technology transfer service contracts, technology contents in contracts and investment project dossiers.

– Obstructing or refusing to provide information on technology transfer activities at the request of competent state agencies.

– Disclosure of technology secrets contrary to law provisions, obstructing technology transfer activities.

– Using technology that is not in line with technology approved and licensed by competent state management agencies.

Thus, it can be seen that technology transfer brings a new step forward for the development of the economy in general and Vietnam’s economy in particular. Technology transfer is an essential need for every business in order to promote economic development and increase competitiveness. Therefore, businesses need to learn and grasp some basic regulations in operation. Technology transfer helps to limit legal problems later. In addition, helping businesses limit the reception of new technologies from advanced countries without a clear strategy and direction.

Above is the article about “Provisions on technology transfer” of Apra Law Company Limited. If you still have questions about the above issues and need to be answered, please contact the hotline for advice and support.


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