b) Level of application of automatic production management solutions may get 4 points at maximum and can be determined as follows:

- Running production data acquisition system (e.g. PDA or SCADA)

1 point

- Running machinery data collection system (MDC)

1 point

- Deploying flexible manufacturing system (FMS) or distributed control system (DCS)

1 point

...

...

...

1 point

5. Criterion 5: Energy cost ratio (4 points at maximum)

The energy cost ratio indicates the production efficiency in terms of consumption of energy and is reflected through “Energy cost factor” (K_nl), calculated according to the following formula:

 (%)

Where:

- G_nl denotes total cost of input energy (e.g. electricity, coal, firewood, petroleum, oil, gas, etc.) already incurred;

- G_sp denotes total output cost in a computation year.

G_nl and G_sp data may be extracted from the financial statement of the year preceding the year of assessment of manufacturing technology level and capacity of an enterprise.

This criterion is scored in relation to the average energy cost factor in each sector (K_{chuẩn 2}) as follows:

...

...

...

4 points

- 0.25K_{chuẩn 2} < K_nl ≤ 0.5K_{chuẩn 2}

3 points

- 0.5K_{chuẩn 2} < K_nl ≤ K_{chuẩn 2}

2 points

- K_nl > K_{chuẩn 2}

1 point

6. Criterion 6: Material cost ratio (4 points at maximum)

The material cost ratio indicates the production efficiency in terms of consumption of input materials and is reflected through “Material cost factor” (K_nvl), calculated according to the following formula:

...

...

...

Where:

- G_nvl denotes total cost of (all) input materials already spent in a computation year;

- G_sp denotes total output cost in a computation year.

G_nl and G_sp data may be extracted from the financial statement of the year preceding the year of assessment of manufacturing technology level and capacity of an enterprise.

This criterion is scored in relation to the average material cost factor in each sector (K_{chuẩn 3}) as follows:

- K_nvl ≤ 0.25 K_{chuẩn 3}

4 points

- 0.25K_{chuẩn 3} < K_nvl ≤ 0.5K_{chuẩn 3}

3 points

...

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...

2 points

- K_{chuẩn 3} < K_nvl ≤ 2K_{chuẩn 3}

1 point

7. Criterion 7: Standards of output of technological line (4 points at maximum).

This criterion is defined through determination of the level of progressiveness on the quality standards that products generated from a technological line may reach.

This criterion shall be scored as follows:

- Products meet basic standards in which criteria are more progressive than those on international standards

4 points

- Products meet international standards

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- Products meet national standards

2 points

- Products meet basic standards

1 points

Article 5. Group of efficiency in exploitation of technology (Group E, 20 points at maximum)

1. Criterion 8: Labor productivity (5 points at maximum).

Labor productivity indicates an enterprise’s efficiency in production, is defined as the average added value that an employee creates in a year and is reflected through “Efficiency factor” (K_ns), calculated according to the following formula:

Where:

...

...

...

- M denotes total number of employees.

This criterion is scored in relation to the average labor productivity factor in each sector (K_{chuẩn 4}) as follows:

- K_ns ≥ 3.0K_{chuẩn 4}

5 points

- 3.0K_{chuẩn 4} > K_ns ≥ 2.0K_{chuẩn 4}

4 points

- 2.0K_{chuẩn 4} > K_ns ≥ 1.0K_{chuẩn 4}

3 points

- K_{chuẩn 4} > K_ns ≥ 0.5K_{chuẩn 4}

...

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...

- 0.5K_{chuẩn 4} > K_ns ≥ 0.25K_{chuẩn 4}

1 point

2. Criterion 9: Level of application of technical inventions, advances and production rationalization (3 points at maximum).

This criterion is used for carrying out the comprehensive, systematic, popular and effective assessment of an enterprise’s application of technical inventions, advances and production rationalization.

The score of this criterion is defined as total point of the following activities:

- Developing synchronous and systematic programs and solutions to promote application of technical inventions, advances and production rationalization.

1 point

- The number of technical inventions and advances, and production rationalization solutions is applied, or such application results in gradual increases in economic efficiency for the most recent three years.

1 point

...

...

...

1 point

3. Criterion 10. Capacity for maintenance and repair of manufacturing machinery, line and equipment of an enterprise (4 points at maximum).

This criterion is used for assessing capacity for its autonomous maintenance and repair of manufacturing machinery, line and equipment, and is defined by gradually increased levels, including: Capacity to carry out maintenance and repair on its own account in case of emergencies by using its available sources of spare parts thereof (with respect to maintenance and repair activities performed in case of breakdown or emergency); capacity to carry out maintenance and repair on its own account according to plans and regulations of manufacturers thereof (with respect to periodic maintenance and repair activities); capacity to carry out maintenance and repair on its own account in order to rule out defects in a system to boost performance thereof (with respect to intensive maintenance and repair activities); capacity to perform diagnosis, maintenance and repair activities to improve performance of the entire system on the basis of analysis of data and reliability thereof (with respect to general maintenance and repair activities).

This criterion shall be scored as follows:

- General maintenance and repair

4 points

- Intensive maintenance and repair

3 points

- Periodic maintenance and repair

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- Maintenance and repair in case of emergency or breakdown

1 point

4. Criterion 11: Receptivity in the context of technology transfer (4 points at maximum)

This criterion is used for assessment of capacity to receive transferred technologies of an enterprise, and is defined by gradually increased levels, including: Receiving transfers of synchronous technological lines and equipment according to the turnkey approach; purchasing copyrights of or receiving licenses on technologies used for production purposes; purchasing specific technologies to adjust, improve and integrate them into its designed production lines to serve production purposes; buying inventions and innovations to perfect and develop technologies and apply them to production activities.

This criterion shall be scored as follows:

- Buying inventions and innovations to perfect and develop technologies and apply them to production activities

4 points

- Purchasing specific technologies to adjust, improve and integrate them into designed production lines to serve production purposes

3 points

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2 points

- Receiving transfers of synchronous technological lines and equipment according to the turnkey approach

1 point

5. Criterion 12: Human resource quality (4 points at maximum).

Human resource includes direct manufacturing labor, operational, administrative and executive officers. Human resource quality is reflected by “Human resource quality factor” (H), calculated according to the following formula:

 (%)

Where:

- H₁ denotes the ratio of total number of trained, high-level skilled workers or artisans to total direct manufacturing labor;

- H₂ denotes the ratio of total number of executive officers (obtaining undergraduate or higher degrees, and acquiring at least 3 years’ experience), or total number of administrative/operational officers (obtaining at least undergraduate degrees relevant to leadership titles and occupational duties in an enterprise) to total indirect labor;

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- M_cn denotes total number of occupationally trained workers;

- M_bc denotes total number of high-level skilled workers or artisans;

- M_tt denotes total direct manufacturing labor;

- M_ql denotes total number of managerial or executive officers holding at least undergraduate degrees and acquiring at least 3 years’ experience provided that such degrees and experience are relevant to managerial titles in an enterprise.

- M_nv denotes operational officers obtaining at least associate degrees relevant to their operational titles in an enterprise;

- M_gt denotes total number of indirect officers (who are not directly involved in production activities) of an enterprise, calculated by the formula: M_gt = M - M_tt.

This criterion shall be scored as follows:

H ≥ 25%

4 points

...

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...

3 points

15% > H ≥ 5%

2 points

5% > H ≥ 2.5%

1 point

Article 6. Group of organizational and managerial capacity (Group O, 19 points at maximum)

1. Criterion 13: Ratio of training and educational costs (3 points at maximum)

 (%)

Where:

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...

...

- G_dt denotes total revenue (generated in the latest three years).

This criterion shall be scored as follows:

K_dthl ≥ 2%

3 points

2% > K_dthl ≥ 1%

2 points

1% > K_dthl ≥ 0.5%

1 point

2. Criterion 14: Information necessary for production and management activities (5 points at maximum).

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...

This criterion shall be scored as follows:

- Using 5 out of 6 sets of information

5 points

- Using 4 out of 6 sets of information

4 points

- Using 3 out of 6 sets of information

3 points

- Using 2 out of 6 sets of information

2 points

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...

1 point

3. Criterion 15: General equipment performance management (5 points at maximum)

This criterion measures efficiency in organization and management of production equipment of an enterprise and is reflected by "General equipment performance factor" (K_tbtt), calculated according to the following formula:

 (%)

Where:

- H denotes equipment performance;

- Q denotes qualified product ratio;

- P_tt denotes the actual average gross production in three years preceding the assessment year;

- P denotes the gross production determined by the designed capacity of equipment per year;

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...

- G_sp denotes the gross value of products in three years preceding the assessment year.

This criterion shall be scored as follows:

K_tbtt ≥ 75%

5 points

75% > K_tbtt ≥ 60%

4 points

60% > K_tbtt ≥ 45%

3 points

45% > K_tbtt ≥ 30%

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...

30% > K_tbtt ≥ 15%

1 point

4. Criterion 16: Application of standards of advanced quality management system (3 points at maximum)

This criterion describes the level of formulation and application of standards of quality management system through innovative models and tools for improvement of quantity and quality of products in an enterprise.

This criterion is scored through such enterprise's application of quality management system relevant to levels of management system standards, specifically including:

- Meeting advanced quality management system standards (already receiving certificates)

2 points

- Meeting advanced quality management system standards

1 point

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5. Criterion 17: Environmental protection (3 points at maximum)

This criterion indicates capabilities of disposal of waste and environmental protection of an enterprise.

This criterion is scored through such enterprise's application of the environmental management system relevant to standard levels, specifically including:

- Meeting standards of advanced environmental management system (already obtaining certificates), having the waste treatment system conforming to regulations, and having waste recycling and reuse system

3 points

- Meeting standards of advanced environmental management system (already obtaining certificates), and having the waste treatment system conforming to regulations

2 points

- Meeting standards of advanced environmental management system and having the waste treatment system conforming to regulations

1 point

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1. Criterion 18: Information technology application (3 points at maximum).

This criterion indicates the level of investment in and use of information technology equipment, infrastructure and personnel in an enterprise.

This criterion is scored through that enterprise’s investment in IT infrastructure (including hardware and software) that meets production and business demands as follows:

- Having an integrated database and software system for use in all management and operation activities by each department

3 points

- Having an adequate number of hardware and software products used for automating operational and business processes in order to improve business efficiency

2 points

- Having an adequate number of hardware and software products used for running several regular applications

1 point

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...

This criterion expresses the extent of investment in information technology (e.g. hardware, software, data, services, security and communication, etc.) of an enterprise and is reflected by determining “Communication cost factor” (K_tt) according to the following formula:

(%)

Where:

- G_tt denotes total communication cost (including phone, internet bills, etc.) in the most recent three years;

- G_cp denotes total cost incurred in the most recent three years.

This criterion shall be scored as follows:

K_tt ≥ 0.25%

3 points

0.25% > K_tt ≥ 0.05%

...

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...

0.05% > K_tt ≥ 0.01%

1 point

3. Criterion 20: Research and development personnel (4 points at maximum).

Ratio of research, development and training personnel (H₅) shall be determined according to the following formula:

(%)

Where:

- M_r&d denotes the number of R&D staff members;

- M denotes total number of employees.

This criterion shall be scored as follows:

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...

...

H₅ ≥ 1% and M_r&d ≥ 50

4 points

H₅ ≥ 0.8% and M_r&d ≥ 40

3 points

H₅ ≥ 0.6% and M_r&d ≥ 30

2 points

H₅ ≥ 0.4% and M_r&d ≥ 20

1 point

As regards enterprises with total equity capital of 100 billion dong and total payroll of more than 200 employees

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...

4 points

H₅ ≥ 2.0% and M_r&d ≥ 12

3 points

H₅ ≥ 1.5% and M_r&d ≥ 9

2 points

H₅ ≥ 1.0% and M_r&d ≥ 6

1 point

As regards small and medium enterprises

H₅ ≥ 5%

...

...

...

H₅ ≥ 4%

3 points

H₅ ≥ 3%

2 points

H₅ ≥ 2%

1 point

4. Criterion 21: Research and development infrastructure (3 points at maximum).

This criterion indicates an enterprise’s infrastructure used as investment in research into and development of technologies and products.

This criterion shall be scored by taking into account an enterprise's research and development infrastructure as follows:

...

...

...

3 points

- Having the specialized research and development department, centers and laboratories (for invention and testing purposes) that meet demands

2 points

- Having the technology and product research and development department (maybe performing dual functions)

1 point

5. Criterion 22: Funds for scientific and technological development, and investment in research and development activities (4 points at maximum).

This criterion indicates an enterprise’s investment in research into and development of technologies and products. This criterion shall be scored by total score of two components including:

- An enterprise establishes a scientific and technological development fund: 1 point

- An enterprise invests in research and development activities: 3 points at maximum and is reflected by “Research and development cost ratio” (K_r&d), calculated according to the following formula:

...

...

...

Where:

- G_dt denotes total cost of training, research and development activities incurred in the latest 3 years;

- G_dt denotes total revenue generated in the latest three years.

The ratio of such cost shall be scored as follows:

As regards enterprises with total equity capital of 1000 billion dong and total payroll of more than 3000 employees

K_r&d ≥ 0.1%

3 points

K_r&d ≥ 0.06%

2 points

...

...

...

1 point

As regards enterprises with total equity capital of 100 billion dong and total payroll of more than 200 employees

K_r&d ≥ 0.5%

3 points

K_r&d ≥ 0.3%

2 points

K_r&d ≥ 0.1%

1 point

As regards small and medium enterprises

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...

3 points

K_r&d ≥ 0.6%

2 points

K_r&d ≥ 0.2%

1 point

Article 8. Innovative capacity group (Group I, 14 points at maximum)

1. Criterion 23: Product research and development results (4 points at maximum).

This criterion is aimed at assessing capacity to research improvements and adjustments, develop new products of an enterprise, and obtained outcomes, after completion of assessment.

This criterion shall be scored as follows:

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...

...

3 points

- Creating new products providing new functions

2 points

- Creating new products providing new designs

1 point

- Sales of new products account for at least more than 5% of total sales gained in the past year

1 bonus point

2. Criterion 24: Technology research and development results (4 points at maximum).

This criterion indicates an enterprise’s capacity to improve and adjust existing technologies, research and develop new technologies for use in manufacturing of products.

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...

- Possessing new technologies which are protected by patents and are commercialized

4 points

- Possessing new technologies accepted for registration and patent for utility solution

3 points

- Possessing technologies already researched and developed, but under test or for use in laboratories.

2 points

- Possessing technologies (including processes, secrets, know-how, technological equipment or industrial designs, etc.) under study

1 point

3. Criterion 25: Research and development cooperation and affiliation capacity (2 points at maximum).

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This criterion shall be scored by that enterprise’s cooperation in investment with other domestic or foreign enterprises, entities, research institutes or higher education establishments as follows:

- Making investments in the form of joint implementation of technology or product research and development projects

2 points

- Making investments in cooperation in the form of hiring of experts providing support or assistance, and acquiring (purchasing) research achievements and providing training for research and development staff

1 point

4. Criterion 26: Digital transformation capacity (4 points at maximum).

Digital transformation capacity refers to the capability of applying and exploiting digital platforms, and integrating all smart technologies to optimize manufacturing processes and methods, and is assessed through the following activities:

a) Developing a strategy for digital transformation or smart production: getting 1 point at maximum

b) Level of application and development of digital technologies, including: Cloud computing, robotics innovations, 3D printing, augmented reality (AR), visual reality (VR), internet of things (IoT), big data, system integration, modeling, cybersecurity, blockchain, new materials, etc, which are used for business purposes: getting 3 points at maximum:

...

...

...

3 points

Already installed at several departments

2 points

Under study before being put to use

1 point

Chapter III

METHODS AND PROCESSES FOR ASSESSMENT OF MANUFACTURING TECHNOLOGY LEVEL AND CAPACITY

Article 9. Method of assessment of manufacturing technology level and capacity of an enterprise

1. Calculating points and total score of each group of criteria for assessment of manufacturing technology level and capacity.  

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3. Classifying manufacturing technology level and capacity by 4 levels based on total score of components of manufacturing technology level and capacity, and the factor of level of synchronization of manufacturing technology level and capacity of an enterprise, specifically including:

a) If the factor of level of synchronization is less than 0.3 and its total score is less than 35 points, that enterprise's manufacturing technology level and capacity will be graded as obsolete;

b) If the factor of level of synchronization is at least 0.3 and its total score is from 35 points to under 60 points, that enterprise’s manufacturing technology level and capacity will be graded as average;

c) If the factor of level of synchronization is at least 0.5 and its total score is from 60 points to under 75 points, that enterprise’s manufacturing technology level and capacity will be graded as fairly progressive;

d) If the factor of level of synchronization is at least 0.65 and its total score is at least 75 points, that enterprise’s manufacturing technology level and capacity will be graded as progressive.

Article 10. Method of assessment of manufacturing technology level and capacity of a manufacturing sector or industry

1. Scoring each component group of manufacturing technology level and capacity and its total score of component groups of manufacturing technology level and capacity in each manufacturing sector or industry according to instructions given in paragraphs 4 and 5 in Appendix III hereto.

2. Calculating the factor of level of synchronization of manufacturing technology level and capacity according to instructions given in paragraph 6 of Appendix III hereto.

3. Classifying manufacturing technology level and capacity by total score and the factor of level of synchronization of manufacturing technology level and capacity in each manufacturing sector or industry (this classification is carried out in the same manner as provided in clause 3 of Article 9 herein).

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a) Selecting sample enterprises typical for specific manufacturing sectors or industries;

b) Conduct assessment of manufacturing technology level and capacity of each enterprise;

c) Conduct assessment of manufacturing technology level and capacity of each manufacturing sector and industry, based on calculation and consolidation of results of assessment of manufacturing technology level and capacity of enterprises in that manufacturing sector or industry.

Article 11. Assessment processes

1. Taking preparatory steps, including:

a) Assessing entities, organizations and enterprises (hereinafter referred to as assessor(s)) identify manufacturing sectors or industries as subjects of assessment or target assessees;

b) Assessors set up assessment commissions;

c) Assessment commissions develop assessment plans (containing information about duration, schedule, cost estimate and tasks involved), assessment methods subject to clause 2 or 3 of this Article, and then submit them to competent authorities to seek their approval;

d) Providing members of assessment commissions with training courses in conducting surveys, collecting data, information, using software designed for assessment (if any), processing data (standardizing data) and reporting assessment results (computation and reporting).

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a) Members of assessment commissions come to enterprises to give them instructions on how to provide and collect required data and information;

b) Members use assessment software in case of assessments directly conducted at offices of enterprises subject to assessments (if any);

c) Assessment commissions inform enterprises subject to assessments of assessment results after completion of assessments.

3. Conducting online assessments:

a) Assessors inform enterprises subject to assessments to request them to join assessments online and instruct them how to run online assessment software;

b) Assessors inform results of automatic assessments to enterprises after completion of surveys by using online survey data processing software;

c) Assessors consolidate data by using survey data processing software.

4. Carrying out post-assessment analyses:

a) Assessors consolidate and process data (standardize data), make reports on results of assessments (carry out computation and reporting) by using assessment software;

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5. Drawing conclusions:

a) Convening meetings to present reports on assessments of manufacturing technology level and capacity;

b) Finalizing, submitting and storing survey reports and data.

Chapter IV

PROVISIONS ON FUNDING FOR ASSESSMENT AND IMPLEMENTATION

Article 12. Funding

1. Assessments of manufacturing technology level and capacity in sectors or industries conducted by ministries, centrally-affiliated bodies and localities shall be funded by the state budget's estimated expenditures on performing public scientific and technological services prescribed in regulations on decentralizing authority to use state budget expenditures to these entities, or by other legally mobilized capital. Payment reasons and rates shall be subject to existing regulations on norms of construction and distribution of estimated costs for implementation of scientific and technological missions using the state budget’s funds provided that payments fall within the state budget’s annual estimate.

2. Settlement and finalization of costs shall be subject to regulations of the Law on State Budget and other instructional documents.

3. If associations or enterprises conduct independent assessments of manufacturing technology level and capacity, they shall be liable for any costs incurred.

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1. Based on demands for socio-economic development and international economic integration over periods of time, Ministries, sectors and People’s Committees of provinces and centrally-affiliated cities shall take control of assessments of manufacturing technology level and capacity within their ambit according to instructions given herein, and provide assessment results in order for the Ministry of Science and Technology to consolidate them into the national database.

Enterprises cooperating and participating in surveys will be provided with assessment results after completion of assessments. Reports on surveys and assessments may be informed to third parties only when these enterprises give permission.

2. Enterprises, entities or organizations not covered by regulations laid down in clause 1 of this Article, and persons participating in assessments of manufacturing technology level and capacity, may choose to apply regulations laid down herein.

3. Department of Technology Application and Development, and Department of Technology Appraisal, Examination and Assessment affiliated to the Ministry of Science and Technology, shall be responsible for instructing, supporting and supervising affiliations of Ministries and sectors conducting assessments of manufacturing technology level and capacity; cooperating with involved units in designing data collection software (including spot and online surveys), and software for processing of data and input of updated data on the general database of manufacturing technology level and capacity, for use in carrying out assessments by these Ministries, sectors and localities.

4. Based on demands arising over periods of time, Ministries and sectors shall, within their jurisdiction, refer to data on results of assessments of level and capacity of manufacturing technology in the previous stage and trends in development of technologies in order to redefine comparison standards of several criteria relevant to specific sectors or industries, and then submit them to the Ministry of Science and Technology for its consolidation and consistent application on the nationwide scale.

Article 14. Entry into force

1. This Circular shall enter into force from January 25, 2020, replacing the Circular No. 04/2014/TT-BKHCN dated April 8, 2014 of Minister of Science and Technology, providing instructions about assessment of production technology level.

2. In the course of implementation hereof, if there is any difficulty or query that arises, entities and persons may send feedbacks to the Ministry of Science and Technology to seek its proper amendment or supplementation./.

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PP. MINISTER
DEPUTY MINISTER




Tran Van Tung