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THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 31-CP

Hanoi, January 23rd , 1981

 

DECREE

ON INNOVATIONS TO EFFECT TECHNICAL IMPROVEMENT AND RATIONALIZATION IN PRODUCTION AND ON INVENTIONS

(Promulgated by Government Decree No 31-CP of January 23, 1981 as amended by Government  Decree No 84-HDBT of March 20, 1990 of the Council of Ministers)
Considering that innovation to effect technical improvement and rationalization in production (shortly referred to as innovations) and inventions which, under this Ordinance, mean the result of the scientific - technical creative work of the workers in their capacity as the masters  of communities, have an effect on the promotion of the technological progress and have great value for the benefit of the economy, society so as to contribute to the development of national economy, to strengthen national defense and to raise the standard of living of the people; Desirous to encourage and assist the nationals in making and applying innovations, inventions to organize and manage in a planned manner the administration of activities relating to innovations, inventions and, in close collaboration with social organizations, in particular with the Labour Union and the Ho Chi Minh of Communist Youth, to organize and develop the mass movement of making and applying innovations, inventions; Desirous further to protect the right of innovators, inventors;
This Ordinance defines "innovation" and "invention"; lays down the right of creators and persons who apply innovations, inventions; the responsibility and competence of state organizations, enterprises, socialist economic organizations and persons in relation to the making and application of innovations, inventions.

Chapter I

INNOVATIONS TO EFFECT TECHNICAL IMPROVEMENT AND RATIONALIZATION IN PRODUCTION

Part A: DEFINITIONS

Section 1

(1) Under this Ordinance, "innovation to effect technical improvement and rationalization in production" means a technical solution, or solution in relation to the organization of the production, which is new, applicable and practically useful to the collective organization, unit (including economic unit) with which is registered.

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a- engineering designs, equipment's, working instruments, products designed project or  structure of construction etc...
b- the characteristics, use or composition of raw materials, materials, products, etc....
c- methods for research or designing processes, the building of constructions, planing or breading techniques methods for the prevention, treatment of diseases, etc...
d- the organization of production for rationalizing the use of manpower, working instrument, raw materials, energy and finial resources.

Section 2

A solution shall be considered new if, prior to the date of registration, it has not been :
- applied by the organization, unit or put in its plan as to be applied;

- made known in written form by higher administration or disseminated in technical literature published by locality or branch concerned in such manner that the realization  thereof could be made;

- confirmed directly by organization, unit or by the higher administration as imposed obligations, like standards, rules, norms, etc...

- identical with any earlier of registered solution.

Section 3

A solution shall be considered applicable to the organization, enterprise with which it is filed if it is appropriate to solve a problem arising in the production or performance of activities and realizable, under prevailing economic, technical conditions, in that organization, unit.

Section 4

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Section 5

In respect of solutions made by  technical staff or administrative cadres, such a solution shall be considered innovation if it has a great economic, technical value and in applicable extensively.

Part B: FILING APPLICATION, EXAMINATION AND CERTIFICATE GRANTING

Section 6

(1) The application for a certificate for innovation shall   be drawn up by the innovator and filed with the organization, unit where he works  or with any other organization, enterprise where he finds that his innovation can be applied.

(2) Where several persons have filed, independently of each other, the applications for the solutions the subject matter of which is the same, the person who has filed the earliest application shall be considered innovator.

Section 7

(1) The organization, unit having received the application for a certificate for innovation shall record it in application book of innovations and notify the applicant accordingly.

(2) Within a period of one month counted from the date of the receipt of the application for a certificate innovation, the organization, unit shall examine it and shall decide whether or not to recognize the claimed solution as an innovation.

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Section 8

(1) When having decided to recognize  the claimed solution as an innovation, the head of the organization, unit shall grant the innovator the certificate  for innovation and notify the organization, unit thereof. The certificate for innovation shall be valid within the organization, unit which has granted it.

(2) Where several persons have jointly made a solution being considered innovation (hereinafter referred to as joint innovator) each of them shall be granted the certificate for innovation where all the joint innovators are named.

(3) The innovator shall enjoy the rights provided for in Chapter IV of this Ordinance.

(4) When having refused to recognize the claimed solution as an innovation the organization, unit shall have the obligation to notify the applicant of the reason therefor and shall not have the right to apply that solution.

(5) The procedure of filing applications, the examination, the grant of certificates for innovation shall be laid down by the State Committee for Science and Technology.

Section 9

When examining the application for a certificate for innovation of the organization, unit finds that the claimed solution is a patentable invention it shall take, instantly, appropriate measures for filing the patent application for that solution in accordance with the provisions laid down in Chapter II, Part C of this Ordinance.

Chapter II

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Part A: DEFINITIONS

Section 10

"Invention" means a technical solution which, in comparison with the available world technology, is new, involves an inventive step and is applicable to economic-social fields.

Section 11

(1) A technical solution shall be considered new, in comparison with the available world technology, if, prior to the priority date of the patent application, it has been neither identical with any of technical solutions described in patent applications or in applications for paten for utility solution having an earlier priority date nor disclosed to the public, in the country or aboard, in any form in such manner that the realization thereof could be made.

(2) A technical solution shall be considered as involving  an inventive step if it is the result of creative work and could not be obviously deducible from the prior art available at the  priority date of the patent application.

(3) A technical solution shall be considered applicable if the subject matter thereof can be  made or used under prevailing or future technical conditions.

Section 12

The subject matter of an invention may be device, a process, a substance or the use of known device, process substance for performing a new function.

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The following shall not be considered invention:
- scientific principles;

- economic management methods and systems;

- educational, teaching, training methods and systems;

- designs and planning schemes for constructions, projects for regional development and planning;

- solution concerning only the shape of articles, intended to create an aesthetic impression;

- signs, diagrams, symbols;

- computer programs, integrate circuits;

- plant or animal varieties, microorganisms;

- processes for the prevention, diagnosis, treatment of diseases in human beings, animals or plants;

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Part B. PROTECTION OF INVENTIONS

Section 14

The State protects inventions by patents. Patents shall be granted to the applicants by the National Office on Inventions.

The patent shall recognize the technical solution as an invention, the owner of the patent and his ownership right to the invention, the inventor or his right.

Section 15

(1) The term of validity of a patent shall be fifteen years counted from the priority  date of the patent application.

(2) A patent shall lapse before the expiration of the term in the following cases:

- the owner of the patent submits  to the National Office on Inventions a written declaration for the surrender of the patent;

- the owner of the patent does not pay the prescribed annual maintenance fee.

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The scope of the protection of an invention shall be determined by the claim or claims whereas the description of the invention shall serve only the purpose of interpreting the claims.

Section 17

(1) Within the term of validity of the patent, the owner of the patent shall have the exclusive right to work the invention, to assign the ownership right to the invention of the right to work the invention to other organization or person.

(2) For the purpose of this Ordinance, "to work" an invention means:

- making a product when the patent has been granted in respect of that product;

- using, importing, advertising or distributing a product when the patent has been granted in respect of the product;

- using a process when the patent has been granted in respect of that process.

(3) The assignment of the ownership right to, or the right to work an invention as provided in Subsection 17 (1) shall be effected by means of a written contract in accordance with the provisions laid down by Ordinance on Licensing promulgated by Government Decree No 201 – HDBT of December 28, 1988 of the Council of Ministers.

Section 18

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(2) The following acts  shall not be deemed as infringement of the right of the owner of the patent:
- using the invention not for commercial purposes;
- distributing or using a product which has been put on the market by the owner of the patent, the prior user as provided in Section 21, the assignee of the right to work the invention as provide in Section 22 or the authorized person in respect of the authorization granted by the Chairman of the State Committee for Science and Technology as provided in Section 20;

- using the invention on foreign transportation means which, in transit or temporarily, are on the territory of Vietnam provided that the invention is used exclusively for the operation of those means.

Section 19

The owner of the patent shall have the obligation to :

- work, or assign the right to work, the invention on the territory of Vietnam in accordance with  the economic social needs of the country;

- pay the annual fee for maintaining the patent prescribed by the State Committee for Science and Technology;

- pay the inventor the royalty as provided in Chapter IV, part A of this Ordinance.

Section 20

(1) The Chairman of the State Committee for Science and Technology may grant the authorization for working a patented invention to any organization or person having made such request if:

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b- the working of the invention requires to work an other invention however the owner of the patent refuses, without justified grounds, the assignment of the right to work the invention to the requesting organization or person;

c- the working of the invention is found to be necessary to meet the requirement of national defense, security, public health or other vital public interests.

(2) The organization or person desiring the authorization for working an invention as provided in Paragraphs 20(1)(a), (b) shall file with the State Committee for Science and Technology the request wherein the needs to work the invention, the ability to work the invention and the benefit derivable from the working of the invention must be clarified and the fact that the owner of the patent has, without justified grounds, refused the assignment of the right to work the invention

must be proved.

(3) The organization or person having been authorized by the Chairman of the State Committee for Science and Technology for working a patented invention shall pay the owner of the patent an amount on the basis of agreement with the owner of the patent. In case no agreement has been reached on the payment, the organization or person authorized for working the invention and owner f the patent may request the court to settle the matter.

Section 21

Any organization which, or person who, prior to the priority date of the patent application was, or had made serious preparation for, working the solution described in the application, ndependently of the applicant, shall have the right to continue to work the invention despite the grant of the patent, except to enlarge the extent and volume of the application and to assign the right to work the invention to other organization or person.

Section 22

(1) The assignee of the ownership right to an invention shall, from the date of the registration of the assignment contract with the National Office on Inventions, have the rights that belongs to the former owner of the patent and assume the obligations that were incumbent on the former owner of the patent.

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Section 23

"Inventor" means a person who has made an invention by his creative work. Where an invention has been jointly made by several persons, they should be considered joint inventors. A person who has merely assisted in the making of an invention as far as technical, financial and management support are concerned or in the preparation, filing of the patent application shall not be considered joint inventor.

Section 24

The inventor  shall have the right:

a- to be named as such in the patent and related published scientific, technical documents;

b- to be paid royalty  by the owner of the patent as provided in

Chapter IV

PART A OF THIS ORDINANCE.

Section 25

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The filing of the patent application for an invention abroad shall be permitted only after the patent application for that invention has been filed in Vietnam and the applicant has received the notification of acceptance of application issued by the National Office on Inventions  except the case where otherwise provided for in the international treaties to which Vietnam is party.

Section 26

(1) Foreign organization or persons may apply for protection of inventions in Vietnam and shall enjoy the rights provided for in this Ordinance in  accordance with the international treaties to which Vietnam is a party or on the principle of reciprocity.

(2) Organizations which, or person who, are not domiciled or have neither functioning establishment nor agency in Vietnam shall effect the procedures of protection of inventions through industrial property agent.

Part C: FILING OF PATENT APPLICATION

Section 27

(1) The right to file the patent application shall belong to the inventor or his successor in title.

(2) In respect of inventions made in execution of commissions within the filed of activity of state organizations, state or collective economic establishments (hereinafter referred to as organization, unit), the right to file the patent application shall belong to the organization. unit employing the inventor of the invention has been made within the responsibility of the inventor or the employing organization, unit has invested capital and equipment for the making of the invention (hereinafter referred to as service invention). The right to file the patent application shall, however, belong to the inventor, within a period of two months counted from the date at which the inventor submitted to the employing organization, unit his report on the fact that the solution he  made could be protected as an invention, the employing organization, unit has not filed the patent application.

(3) Where an invention has been made in execution of a contract for performance of scientific research or technical development, the right to file the patent application shall belong, in the party having commissioned the work.

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(5) The right to file the patent application may be assigned to other organization or person by mean of written document.

Section 28

(1) The patent application shall be filed with the National Office on Inventions. The patent applicant shall pay the fee prescribed by the State Committee for Science and Technology.

(2) The procedure for the preparation and filing of patent applications shall be laid down by the State Committee for Science and Technology.

Section 29

(1) The priority right to the patent application shall be determined by priority date.

(2) The priority date shall be, in the absence of a declaration claiming an earlier priority date provided for in Subsection (3) of this Section, the date at which the acceptable  application is filed with the National Office on Inventions.

(3) The applicant may claim a priority date earlier than the filing date of the acceptable application in the following case:

a- When invention has been displayed on an official, or accepted as such, international exhibition held in one of the countries party to the Paris Convention for the Protection of Industrial Property and, in this case, the priority date shall be the date of display of the invention on the exhibition if the patent application is filed within a period of six months counted from that date.

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(4) The application wishing to claim a priority date provided for Subsection (3) of this Section shall specify it in the patent application and, within period of three months counted from the filing date of the patent application, to furnish to the National Office on Inventions the necessary documents for justifying the legality of the request.

Part D: EXAMINATION OF PATENT  APPLICATION,GRANT OF PATENT AND PUBLICATION

Section 30

(1) Within a period of three months counted from the filing date of the patent application. The National Office on Inventions shall effect the examination as to form of the application and notify the applicant of the acceptance or reject of the application or request the applicant to make correction or to complete necessary document.

(2) If, within a period of one month counted from the date of receipt of the notification, the applicant has not furnished the required corrections, complement, the application shall be deemed not having been filed.

Section 31

(1) Within the period of eighteen months counted from the filing date of the patent application, the National Office on Inventions shall effect the examination as to substance of the application.

(2) On the basis of the examination report, the Director of National Office on Inventions shall decide whether or not to grant the patent to applicant. In case of the refusal of the grant of the patent, the National Office on Inventions shall notify the applicant the reason therefor.

Section 32

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(2) The application shall be no longer the subject of examination if, within a period of one month counted from the date of receipt of the request made by the National Office on Inventions, the applicant has not  submitted the amendment, complementary documents for clarifying the essence of the solution described in the application.

In case the complementary documents change the essence of the solution, the procedure for filing application shall be recommenced.

Section 33

Upon the request of the National Office on Inventions, the scientific research and technical development establishments, universities and other organizations, units shall have the obligation to supply information necessary to the examination of applications or participate in the evaluation of novelty, inventive step and applicability of solutions described in applications relating to their

field of professional activity.

Section 34

(1) Within the period of three months counted from the date of the grant of the patent, the National Office on Inventions shall publish the patented invention in publication, namely in Industrial Property Gazette.

The publication of the patented invention shall contain: the title,the abstract of the invention, the name of the inventor, the name of the owner of the patent, the filing date, the priority date, the date of the grant of the patent and other information that the National Office on Inventions considered necessary.

(2)Any organization or person may, after the patented invention has been published, inspect the description of the invention.

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Part E: SECRET INVENTIONS

Section 35

(1) Inventions relating to national defense and security or being found, with respect to the assurance of national interests, to be kept in secret shall be considered secret inventions.

(2) The technical fields relating to national defense and security where the inventions are to be kept in secret as provided in Subsection (1) of this Section shall be specified by the Minister of National Defense.

Ministers, Chairmen of State Committees, heads of organizations subordinated directly to the Council of Ministers may request the keeping in secret of inventions relating to their field of activity.

Section 36

(1) In case of a secret invention, the inventor, the owner of the patent and persons involved in preparation, filing, examination of the application and in working of the invention shall have the obligation to keep the invention secret according to the regulations relating to the protection of national secret.

(2) In respect of secret inventions, the procedure of the filing, examination of patent applications, the grant of patents, the publication of inventions shall be laid down by the State Committee for Science and Technology and Minister of Defense in consultation with the Ministry of Interior.

Chapter III

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Section 37

(1) Organizations, units shall have the obligation to apply innovations, inventions in due time, in such a way that the best use thereof can be made according to the needs arising in the production or other activities.

(2) The application of any innovation, invention to the production or other activities shall be the subject of the decision shall contain the date at which the application commences, the names of persons, groups engaged therein, the new economic technical standards, norms.

(3) In case the application of innovation, invention changes the prevailing standards, norms, the organization, unit shall have the obligation to examine and to adjust for rendering them reasonable.
In case the application of an innovation, invention raises the productivity, the person engaged in the application referred to in Subsection (2) of this Section shall be paid the salary and remuneration calculated according to the standards, norm previously in force, for a period of, at most, six months from the commencement of the application.

Section 38

(1) In case of innovation, invention the application of which may be realized in other organizations, units in the branch or locality, the organization, unit applying it shall have the obligation to submit, in due time, a report to the higher administration on the subject matter and usefulness of the applied innovation, invention and to create conditions in favor of other organizations enterprises intending to apply that innovation, invention.

(2) Branches, localities shall have the obligation to organize the information service relating to innovation, inventions in organizations, enterprises of their branches, localities.

(3) The State Committee for Science and Technology shall organize the patent information system throughout the country.
In case of inventions of great value, the State Committee of Science and Technology shall communicate relevant information or proposals to the State Committee for Planning, branches, localities for the consideration and inclusion thereof in plans for advanced technology application.

Chapter IV

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Part A: ROYALTY OT INNOVATORS, INVENTORS

Section 39

(1) Within the term of validity of the patent, the owner of the patent, when working the invention or assigning the right to work the invention, shall have the obligation to pay the inventor an amount of royalty.

(2) In the absence of agreement to the contrary in the employment contract, the royalty due to the inventor may not be less than eight percent of the profit derived from the working of the invention. In case of the assignment of the right to work the invention, the amount obtained from the sale of the license, deducted by related expenses shall be considered profit.

Section 40

(1) State organizations, units, economic collectives when working an innovation and making profit shall pay royalty to the innovator.
(2) The amount of royalty due to the innovator shall be calculated for the first year of the application and may not be less than five percent of the profit made.

Section 41

(1) The amount of royalty due to the innovator shall be paid within a period of one month after the first year of the application of the innovation. For the purpose of encouraging the innovator, the organization, unit which applies the innovation may, at the every beginning of the application, pay the innovator, in advance, an amount of royalty which is to be considered part of the total amount due to the innovator after the first year of application.
(2) The royalty due to the inventor shall be paid within a period of two months counted from the end of each year of application or from the receipt of payment derived from the sale of license.

Section 42.

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(2) Where the application of an innovation or invention changes the design, the execution of a construction work, the amount of royalty due to the innovator or inventor shall be determined according to the instructions of the Ministry of Construction and State Committee for Science and Technology.

Section 43

Where an innovation is extensively applied within a branch or locality, the innovator shall be entitled to be paid royalties in accordance with Sections 40, 41 due by organizations, units which, within a period of three years from the first application, apply the innovation.

Section 44

(1) In case of an innovation when the organization, unit applying it has not made any profit, the innovator shall be entitled to be paid the royalty due by whichever organization, unit having made profit on the working of the innovation.

(2) The amount of royalty in case of an innovation referred to in subsection 44 shall be determined by the organization, unit applying the innovation.

Part B: MEASURES FOR ENCOURAGEMENT OF INNOVATORS, INVENTORS

Section 45

Heads of organizations, units at basic level and heads of branches at all levels shall have to cooperate with the mass organizations in taking appropriate measures for the encouragement of innovators, inventors. According to the result achieved, innovators, inventors may be awarded diplomas or titles of honor. In case of innovations, inventors of great achievement, the innovators, inventors may be awarded medals, orders, National Science and Technology Prizes or high, National honorary title.

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(1) Heads of organizations, units shall be responsible for creation of favorable conditions for innovators, inventors in making the best of their creativeness, in participating in the experimentation, improvement and application of innovations, inventions and the supervision thereof.

(2) Organizations, units, branches at all levels may apply preferential treatment to innovators, inventors when considering their material interests such as promotion of salary, professional grade or housing, training, improving qualification.

Section 47

(1) In order to encourage the making of innovations heads of organizations, units may conclude with their staff the following contracts:

a) Research for making solutions to specific technical problems or production management problems which are important and urgent for the organization, units;

b) Introduction of registered innovations or patented inventions made by their organization unit to apply in the production, activities.

(2) Solutions which have been made in execution of contracts referred to in Paragraph 47 ( 1/ a) shall be considered innovation. In addition to the royalty fixed in the contract, heads of organizations, units may apply other forms of remuneration, encouragement to innovators.

Part C: ENCOURAGEMENT OF ASSISTANT ACTIVITIES IN MAKING,APPLICATION OF INNOVATIONS, INVENTIONS

Section 48

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(2) The amount of remuneration due to the assistants of innovators, inventors or to the participants in the first application of innovations, inventions shall be covered by the profit derived from the application of innovations, inventions and paid at the same time of the payment of royalty to the innovators, inventors after the first year of application.

(3) When making the decision on the payment of remuneration to each of the above mentioned persons, shall be taken into account:

a/ The volume and the complexity of tasks the accomplishment of which he engaged in;

b/ The initiative he has shown for accelerating the process of the making and application of the innovation, invention.

Chapter V

SETTLEMENT OF APPEALS, DISPUTES, INFRINGEMENT PROCEEDINGS

Section 49

(1) Any applicant for certificate of innovation shall have the right to appeal to the head of organization, unit concerned in the following cases:

a/ The application for certificate of innovation has not been examined within the prescribed time limit;

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(2) Within a period of one month counted from the date of the filling of the appeal, the head of the organization, unit shall settle the matter. In case the appellant disagrees with the decision of the head of the organization, unit, he may appeals at each level may not be longer than one month. The decision of Minister, Chairmen of People's Committees of provinces or cities subordinated to the Central Government and the like shall be final in this respect.

Section 50

(1) The applicant for patent may appeal to the Director of the National Office on Inventions if he:

a/ disagrees with the reasons for rejecting the patent application;
b/ disagrees with the reasons for refusing the grant of the patent;
c/ disagrees with the claims formulated by the National Office on Inventions.

(2) Within the term of validity of the patent, any organization or person may appeal to the Director of the National Office on Inventions against the grant of the patent for the reason that the requirements provided for in Sections 10, 11 and 13 of this Ordinance were not fulfilled.
The appellant shall pay the fee prescribed by the State Committee for Science and Technology.

(3) Within a period of three months counted from the receipt of the appeal referred to in Subsection 50(1), (2), the Director of the National Office on Inventions shall settle the matter and notify the appellant of the outcome of the settlement.

In case of disagreement with the decision made by the Director of the National Office on Inventions with respect to the settlement of the appeal, any party concerned may appeal to the Chairman of the State Committee for Science and Technology.

The decision of the Chairman of the State Committee for Science and Technology shall be final in this respect.

(4) On the basic of the outcome of the settlement referred to in Subsection 50(3), the Director of the National Office on Inventions shall effect the procedure of the grant of patent, the amendment of claims, the maintenance or the invalidation of the granted patent.

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(1) Any organization or person may appeal to the Director of National Office on Inventions against the grant of the patent to an organization which, or person who, had no right to file the patent application as provided for in Section 27 or against the recognition, in the patent, of a person as the inventor when that person has not made the invention. The appellants shall pay the fee prescribed by the State Committee for Science and Technology.

Within a period of three months counted from the receipt of the appeal, the Director of the National Office on Inventions shall settle the matter and notify the appellant of the outcome of the settlement.

In case of disagreement with the decision made by the Director of the National Office on Inventions, any party  concerned may, within a period of three months counted from the receipt of the notification of the decision, request the court of the province or city subordinated to the Central Government to settle the matter.

(2) On the basic of the settlement of the appeal accepted by the parties concerned, or on the basic of the final judgment of the court, the Director of the National Office on Inventions shall effect the procedure of the maintenance, the amendment or the invalidation of the granted patent.

Section 52

(1)Within the term of validity of the patent, the owner of the patent shall have the right to apply to the court of province or city subordinated to the Central Government for instituting court proceedings against the infringements of his right provided for in Sections 17, 18 of this Ordinance.

Before to applying to the court for instituting court proceedings, the owner of the patent may request the competent authorities to grant the infuntion to make the infringing organization or person discontinue the acts of infringements.

(2) In respect of disputes arising from the fields of industrial property where one or both party is foreign organization or person, the party concerned shall have the right to apply to the court of Hanoi or Ho Chi Minh City for the settlement of the matter.

Section 53

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Time limit for settlement of the appeal at each level may not be longer than two months from the receipt of the appeal. The decision of the Ministers, Chairmen of State Committees, heads of Organizations subordinated directly to the Council of Ministers, Chairmen of People's Committees of provinces or cities subordinated to the Central Government and heads of administrative organizations of ministerial rank shall be final in this respect.

(2) Inventor has the right to apply to the court of province or city subordinate to the Central Government for instituting court proceedings against the owner of the patent in case the latter does not pay the royalty or does not respect the schedule of payment.
Before instituting court proceedings, the inventor may request the competent authorities to take appropriate measures for forcing the owner of the patent to pay him the royalty according to provision laid down by the State.

Chapter VI

ORGANIZATION AND MANAGEMENT OF ACTIVITIES RELATING TO INNOVATIONS, INVENTIONS

Part A: STATE ORGANIZATION

Section 54

(1) The State Committee for Science and Technology shall be entrusted with the organization, the management and the central administration of activities relating to innovations, inventions throughout the country.

(2) Ministries, organizations of ministerial rank, organizations subordinated directly to the Government Council, People's Committees of provinces and cities subordinated directly to the Central Government shall be entrusted with the organization, management and administration of activities relating to innovations, inventions in their own branch or territory.

The scientific, echnical administrative bodies within branches or localities shall have the obligation to assist the head of branches, People' Committees of localities in performing their duties.

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The scientific, technical administrative bodies of organizations, units shall have the obligation to assist the head of organizations, units performing their duties and appoint a cadre or a group in charge of administration of activities relating to innovations, inventions.

(4) State organizations, enterprises may establish consultative commission in charge of assisting the heads of organization, units to perform their duties in respect of organization, management of activities relating to innovations, inventions (shortly referred to as commission for innovations, inventions).

Administrative organizations of branches, people's committees of provinces may, according to the actual situation, establish commission for innovations, inventions of their own.

Section 55

Heads of branches, administrative organizations of all levels shall collaborate closely with mass organizations, in particular with the Labour union and Union of Ho Chi Minh Communist Youth in the organization, management of activities relating to innovations, inventions.

Part B: FINANCING OF ACTIVITIES RELATING TO INNOVATIONS, INVENTIONS

Section 56

(1) Organizations, units and administrative bodies of branches may make budget forecast for:
(a) taking measures for intensive development of activities relating to innovations, inventions;
(b) accomplish experimentation, testing relating to the application of innovations, inventions;
(c) paying the murnerations to the innovators, inventors, their assistants and persons engaged in the first application of innovations, inventions.

(2) Expenditures for experimentation and application of innovations, inventions shall be covered by:

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- funds assigned to scientific, technical research;

- funds assigned for administrative organizations.

(3) The expenditure in respect of remuneration's, promotion of activities relating to innovations, inventions shall be taken:

(a) in case of production or trade units, from the profit derived from the application of innovations, inventions;

(b) in case of administrative or managing or organ, from the expenditure set aside for administration or scientific, technical research.

(4) The procedure for the drawing up the budget, accounting and making the balance sheet in relation to expenditures refereed to in subsection (1) of this Section shall be set forth by the Ministry of Finance and the State Committee for Science and Technology.

Chapter VII

IMPLEMENTATION PROVISIONS

Section 57

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Section 58

Ministers, heads of organizations of ministerial rank, organizations subordinated directly to the Government Council, Chairmen of People's Committees of provinces or cities subordinate directly to the Central Government shall, on the basic of this Ordinance and taking into account the peculiarities of branches, localities of their own, issue detailed instructions and keep supervising for the implementation of this Ordinance.

Section 59

This Ordinance shall enter into force on the date of its signature.

Provisions relating to the payment of remuneration in respect of innovations, inventions which are contrary to this Ordinance shall be repealed.