October, 2025 Newsletter
November 24th, 2025
Conditions for Establishing a Science And Technology Organization
On October 14th, 2025, the Government issued Decree No. 262/2025/ND-CP detailing and guiding the implementation of a number of articles of the Law on Science, Technology and Innovation on information, statistics, assessment, digital transformation and general issues. The Decree prescribes that a science and technology organization shall be established when fully meeting the following three conditions:
1. Charter of organization and operation
a. The organization must have a charter specifying its name, objectives, functions, tasks, operational areas, organizational structure, rights and obligations, modes of management and administration, and conditions for division, separation, merger, and dissolution, in accordance with law.
b. The organization’s name, including its full name, international transaction name, and abbreviation (if any), shall be written in Vietnamese letters; it may include the letters F, J, Z, W, numerals, and symbols, ensuring clarity and ease of pronunciation.
The foreign-language name shall be translated from the Vietnamese name into a Latin-script language, and the proper name may be retained or translated with equivalent meaning.
The name must not be identical with or cause confusion with the name of any other legally operating organization in Vietnam; it must not contain words or symbols violating national history, culture, ethics, fine customs and traditions, or intellectual property rights.
c. The organization must have a head office in Vietnam with a clear administrative address, telephone number, and official email contact.
d. The legal representative shall be the head of the organization, as specified in the charter or in the establishment decision of the competent authority.
e. The operational field shall be identified according to level-2 codes defined in the Classification Table of Science and Technology Fields.
f. The charter must clearly define the organizational structure, duties, and powers of leadership positions and the operating apparatus.
g. The charter shall also provide for the conditions, order, and procedures for merger, division, separation, and dissolution (if applicable).
2. Scientific and Technological Human Resources
a. The organization must employ at least five persons possessing a university degree or higher who work full time (for public science and technology organizations, this shall comply with the Government’s regulations on the establishment, reorganization, and dissolution of public service units); of which at least 30% of the personnel must have professional qualifications relevant to the registered field(s) of operation.
b. For research or research-and-development organizations, there must be at least one doctor in a relevant field working full time for each registered field of activity.
c. The head of the organization must possess a university degree or higher, demonstrate relevant expertise and management experience; for public science and technology institutes, the head must hold a doctoral degree.
3. Physical and Technical Facilities
The organization must have ownership or lawful use rights over its headquarters, workshops, laboratories, equipment, intellectual property, and other technical means sufficient for performing its prescribed functions and tasks.
Conditions for granting the Certificate of Science and Technology Enterprise
On October 14th, 2025, the Government issued Decree No. 268/2025/NĐ-CP detailing and guiding a number of articles of the Law on Science, Technology and Innovation regarding innovation; encouraging scientific, technological and innovative activities in enterprises; recognizing innovation centers and supporting innovative start-ups; recognizing innovative start-up individuals and enterprises; and the infrastructure, networks and ecosystems for innovative start-ups. Accordingly, an enterprise shall be granted the Certificate of Science and Technology Enterprise when it fully satisfies the general conditions and the specific conditions applicable to its enterprise size as follows:
1. General conditions:
a. It is established and operating in accordance with the Law on Enterprises.
b. It creates scientific, technological and innovative products derived from one of the legally owned or legally used results of scientific research, technological development and innovation, including:
· Inventions; utility solutions; industrial designs; layout designs of semiconductor integrated circuits protected in Vietnam;
· Computer programs for which a Certificate of Copyright Registration has been granted;
· New breeds of animals; new varieties of plants; new breeds of aquatic creatures; new varieties of forestry plants; technical advances that have been protected or recognized;
· Results of scientific research, technological development and innovation that have been accepted or confirmed, recognized in accordance with the law;
· Technology transferred under a technology transfer contract that has been registered in accordance with the law on technology transfer.
2. Specific conditions: The Decree divides the conditions for large, medium, small and micro enterprises, specifically:
2.1. Conditions for large enterprises:
a. Total expenditures on scientific research, technological development and innovation must reach at least 2% of the average net revenue in the 3 consecutive fiscal years or at least VND 200 billion per year in the 3 consecutive fiscal years; in case the enterprise has been operating for less than 3 years, the average shall be calculated over the entire operation period since its establishment, but not less than one full fiscal year;
b. It must have a Research and Development department with at least 10 personnel holding a university degree or higher, of which at least 5 Vietnamese personnel;
c. Scientific, technological and innovative products must account for at least 30% of total revenue or reach at least VND 90 billion per year in the 03 consecutive financial years; in case the enterprise has been operating for less than 3 years, the average shall be calculated over the entire operation period since its establishment, but not less than one full fiscal year;
d. Scientific, technological and innovative products must bring about one of the following effects: Be exported to foreign markets; or be created from technology belonging to the List of Technologies Encouraged for Transfer under the law; or be awarded national or international prizes for quality or environment.
2.2. Conditions for medium-sized enterprises:
a. Total expenditures on scientific research, technological development and innovation must reach at least 2% of the average net revenue in the 3 consecutive fiscal years; in case the enterprise has been operating for less than 3 years, the average shall be calculated over the entire operation period since its establishment, but not less than one full fiscal year;
b. It must have a Research and Development department with at least 5 personnel holding a university degree or higher, including Vietnamese personnel;
c. Scientific, technological and innovative products must account for at least 20% of total revenue in the 03 consecutive financial years; in case the enterprise has been operating for less than 3 years, the average shall be calculated over the entire operation period since its establishment, but not less than one full fiscal year.
2.3. Conditions for small and micro enterprises:
a. Total expenditures on scientific research, technological development and innovation must reach at least 2% of the average net revenue in the 3 consecutive fiscal years; in case the enterprise has been operating for less than 3 years, the average shall be calculated over the entire operation period since its establishment, but not less than one full fiscal year;
b. It must have at least 2 personnel engaged in scientific, technological and innovative activities, including Vietnamese personnel, or hire at least 2 experts from research institutions, educational institutions, science and technology organizations;
c. It must have at least 1 scientific, technological and innovative product that is being commercialized.
Regulations on cases not considered as evasion of compulsory social insurance and unemployment insurance contributions
On October 16th, 2025, the Government issued Decree No. 274/2025/ND-CP on elaboration of the Law on Social Insurance regarding late payment and evasion of compulsory social insurance and unemployment insurance; complaints and denunciations about social insurance.
Accordingly, Decree No. 274/2025/ND-CP has stipulated that the cases specified in clause 1 Article 39 of the Law on Social Insurance shall not be considered as evasion of compulsory social insurance and unemployment insurance contributions when one of the following reasons occurs as announced by competent authorities in charge of disaster prevention and control, emergency situations, civil defense, and epidemic prevention and control, including:
(i) Storms, floods, inundations, earthquakes, major fires, prolonged droughts, and other types of natural disasters that directly and seriously affect production and business activities;
(ii) Dangerous epidemics announced by competent regulatory agencies, which cause serious impacts on production and business activities and the financial capacity of agencies, organizations, and employers;
(iii) Emergency situations as prescribed by law, which unexpectedly and suddenly affect the operations of agencies, organizations, and employers;
(iv) Other force majeure events as prescribed by the civil law.
Change of the authority responsible for receiving and processing applications for tax refund from October 14th, 2025
On October 14th, 2025, the Ministry of Fiance issued Circular No. 94/2025/TT-BTC on amendments to some articles of Circular No. 80/2021/TT-BTC dated September 29th, 2021 of the Ministry of Finance on elaboration of some articles of the Law on Tax Administration and the Government’s Decree No. 126/2020/ND-CP dated October 19th, 2020 on elaboration of some articles of the Law on Tax Administration and some forms of Circular No. 40/2021/TT-BTC dated June 01st, 2021 of the Ministry of Finance on value-added tax (“VAT”), personal income tax (“PIT”) and tax administration of household businesses and individual businesses.
Accordingly, Circular No. 94/2025/TT-BTC has stipulated the authority responsible for receiving and processing applications for tax refund in accordance with tax laws from October 14th, 2025 as follows:
· Supervisory tax authorities shall be responsible for receiving and processing applications for tax refund in the following cases:
o VAT refund according to VAT laws;
o Refund of excise tax according to excise tax laws on biological gasoline;
o Tax refund according to Double Taxation Agreements and other International Agreements to which the Socialist Republic of Vietnam is a signatory.
· The provincial tax offices where the taxpayer declares VAT on the investment project shall be responsible for receiving and processing applications for refund of tax on the investment project of the taxpayer.
· Supervisory tax authorities shall be responsible for receiving and processing applications for refund of input VAT that remains after deduction upon bankruptcy and dissolution of business organizations.
In case VAT refund applications prepared by taxpayers under direct management of sub-departments of taxation (Commune - level Tax Offices) are received by sub-departments of taxation (Commune - level Tax Offices), Departments of Taxation (Provincial Tax Offices) before January 01st, 2025 but have not yet been processed because competent authorities have not responded, tax authorities that are currently processing such applications shall continue to process them.
Strictly control, focused reduction and simplification of administrative procedures, business conditions and implementation of administrative procedures independent of administrative boundaries
On October 04th, 2025, the Prime Minister issued Official Dispatch No. 187/CD-TTg on the strict control, focused reduction and simplification of administrative procedures, business conditions and the implementation of administrative procedures independent of administrative boundaries. With a view to ensuring that administrative procedure reform and the handling of tasks, administrative procedures and public services for citizens and enterprises are carried out smoothly and effectively, the Prime Minister has directed as follows:
1. To achieve the maximum possible reduction of business conditions and administrative procedures:
· Ministers, Heads of ministerial-level agencies, and Chairman of People’s Committees of provinces and centrally-governed cities shall:
o Direct their subordinate agencies and units to strictly implement, with high quality and on schedule, all approved plans for the reduction and simplification of administrative procedures and business conditions; at the same time, proactively reduce and simplify administrative procedures and business conditions during the drafting and promulgation of legal documents; in 2025, ensure the maximum possible reduction of business conditions, shift from pre-inspection to post-inspection, reduce at least 30% of the time to implement administrative procedures, and at least 30% of the cost of complying with administrative procedures related to production and business activities;
o Promptly, fully and accurately publish administrative procedures on the National Database of Administrative Procedures so that officials, civil servants, businesses and people know, implement and monitor, supervise and evaluate the implementation process;
o Monitor, supervise and evaluate the implementation of administrative procedures after their promulgation; promptly identify and amend or supplement any regulations or procedures that are no longer appropriate and that obstruct the development of enterprises and household businesses.
· The Minister of Finance shall: Urgently study and reform investment licensing procedures by reducing and simplifying the investment registration certificate, fully implementing the process online, shortening the time required for market entry; loosening barriers on investment restriction lists; coordinate with other ministries, sectors and localities to immediately resolve difficulties and obstacles that enterprises encounter due to regulations on administrative procedures and implementation from state agencies, especially administrative procedures related to investment, market entry...
2. To implement administrative procedures independent of administrative boundaries and to provide fully online public services:
· Ministers and Heads of ministerial-level agencies shall: Focus on completing the construction of specialized databases and putting them into operation, connecting with national databases (land, civil status, construction, etc.) to meet the data requirements of “correct, sufficient, clean, live, unified, shared”, they shall ensure full, real-time connection and data sharing with the National Public Service Portal, the Information System for handling administrative procedures at the ministerial and provincial levels to serve the reduction and simplification of administrative procedures and deploy full-process online public services based on data.
· Chairman of People’s Committees of provinces and centrally-governed cities shall: Promptly and fully publicise the list of administrative procedures that may be performed independent of administrative boundaries within the province and shall organise their implementation in a manner that allows citizens to conveniently submit applications at the place of residence, living, studying or working. They shall organize the implementation of guidance, reception, and settlement of administrative procedures for people and businesses, ensuring efficiency, smoothness, avoiding local congestion, and completing the goal of 100% of administrative procedures being implemented regardless of administrative boundaries within the province in 2025.
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This newsletter is for general information on relevant matters. This should not be treated as our professional advice. Should you need further information on the matter or our professional assistance for your specific cases, please contact us.
Thanks and Best regards.