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THE GOVERNMENT
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 63/2020/ND-CP

Hanoi, June 08, 2020

 

DECREE

SECURITY INDUSTRY

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on People’s Public Security Force dated November 20, 2018;

At the request of the Minister of Public Security;

The Government hereby promulgates a Decree on Security Industry.

Chapter I

GENERAL

Article 1. Scope

This Decree elaborates Article 34 of the Law on People’s Public Security Force 2018 on security industry, including rules for building and developing security industry; tasks, organizational structures and activities of security industry establishments; particular policies and mechanisms, programs and plans for building and developing security industry; international cooperation in security industry; state management of security industry; rights and responsibilities of Ministries, ministerial agencies, People’s Committees of provinces and central-affiliated cities (hereinafter referred to as “provincial People’s Committees”) and relevant organizations and agencies for management and performance of tasks of building and developing security industry.

Article 2. Regulated entities

This Decree applies to Vietnamese and foreign organizations and individuals involved in Vietnam’s security industry-related activities.

Article 3. Definitions

For the purposes of this Decree, the terms below shall be construed as follows:

1. “security industry development” means the investment in resources and application of advanced technologies to develop the national potential for research into, fabrication and manufacturing of specialized and dual-use security products.

2. “other law enforcement force” means a force that is, other than People’s Public Security Force, allowed to use a number of weapons, explosive materials, combat gears, professional technical instruments, equipment and supplies in accordance with law with a view to protecting national security and maintaining social order and safety.

3. “specialized security product” means a product with typical features intended for resolution of cipher matters, national security protection, social order and safety maintenance, prevention and control of crimes and violations of law by the People's Public Security Force and other law enforcement force.

4. “dual-use security product” means a product intended for serving performance of duties by the People's Public Security Force and other law enforcement force, and legitimate demands of society.

Article 4. Rules for building and developing security industry

1. Pursue objectives, tasks and strategies for national security protection, social order and safety maintenance, serving necessary demands of the People's Public Security Force and other law enforcement force.

2. Combine the national industry and national defense industry and exploit their potential; security industry establishments are not allowed to make the investments that the industry serving people’s life and the national defense are able to make, and vice versa. Give priority to advanced products which are used in a manner that maintains confidentiality and ensures safety, effectiveness and environmental safety.

3. Associate socio – economic development with national defense and security assurance on the basis of promoting the internal strength and expanding international cooperation; guard state secrets about security and national defense.

4. Comply with regulations of law on manufacturing, management and sale of weapons, explosive materials and combat gears; management of public property and regulations of law on business lines subject to security requirements, Vietnam’s commitments to weapon disarmament and non-proliferation and international treaties to which Vietnam is a signatory.

Article 5. Criteria applied to security industry and list of security products

1. Criteria applied to a specialized security product:

a) Such product has typical features suitable for nature, characteristics and professional requirements of the People's Public Security Force and other law enforcement force;

b) Such product is commissioned or requested by a competent authority in accordance with regulations of law;

c) Entities entitled to use such product or cases in which such product is used are prescribed by law.

2. Criteria applied to a dual-use security product:

a) Such product serves the security, safety and fire safety assurance and rescue by the People's Public Security Force and other law enforcement force and legitimate demands of society;

b) Such product is commissioned, requested or bid for by a competent authority in accordance with regulations of law;

3. A list of security products is promulgated together with this Decree.

Article 6. Prohibited acts

1. Revealing state secrets about security industry building and development programs and plans and scientific and technological achievements related to security industry and tasks of manufacturing products with a view to duty performance and fighting by the People's Public Security Force.

2. Illegally using equipment and assets assigned by the state to security industry establishments.

3. Illegally purchasing, selling, possessing, transporting and using specialized security products.

4. Illegally using and transferring information, documents, inventions, technological processes and know-how classified as state secrets about security industry.

5. Abusing positions and powers to commit illegal acts in security industry activities.

Chapter II

ORGANIZATIONAL STRUCTURES AND ACTIVITIES OF SECURITY INDUSTRY ESTABLISHMENTS

Article 7. Organizational structures and tasks of security industry establishments

1. The State shall build or participate in building security industry establishments. The Ministry of Public Security is the representative of state ownership. According to the scope and nature, the Minister of Public Security shall decide or request a competent authority to decide type, organizational structure and operating mechanism of each security industry establishment.

2. Tasks of a security industry establishment

a) Research, manufacture, repair and develop weapons, explosive materials, combat gears, professional technical instruments, equipment and supplies and other products for the purposes of protecting national security, maintaining social order and safety, preventing and controlling crimes and violations of law and building the People's Public Security Force to become revolutionary, regular, elite and gradually modernized;

b) Research, manufacture, repair, supply, develop and trade in dual-use security products with a view to national security protection, social order and safety maintenance, prevention and control of crimes and violations of law by the People's Public Security Force, satisfying legitimate demands of society.

Article 8. System of security industry establishments

1. Research institutes; center for scientific application and experimental organized into public service providers or science and technology enterprises in the People's Public Security Force.

2. State-funded establishments fabricating, manufacturing, repairing and assembling specialized and dual-use security products organized into public service providers or science and technology enterprises in the People's Public Security Force.

3. Establishments researching, manufacturing and repairing specialized and dual-use security products founded in security industry and national defense industry cooperation between the Ministry of Public Security and the Ministry of National Defense.

4. Establishments researching, manufacturing and repairing specialized and dual-use security products founded in cooperation or under joint venture between enterprises in the People's Public Security Force and other enterprises over 50% of charter capital of which is held by the state.

Article 9. Activities of security industry establishments

1. Research, manufacture, repair and develop specialized security products as commissioned or requested in accordance with regulations of the State and the Ministry of Public Security.

2. Cooperate, establish joint venture or association with domestic organizations or individuals to research, manufacture and repair specialized and dual-used security products in accordance with regulations of law.

3. Transfer technologies, carry out reverse engineering and provide training to personnel to meet the objective for security industry development.

4. Make necessary preparations for research into, manufacturing, repair and development of new products and for reserve in the case of security and order-related contingencies.

Article 10. International cooperation in security industry

1. Establish, strengthen and develop relationships with foreign governments, organizations and individuals.

2. Exchange information and technical documentation and transfer technologies with a view to building and developing security industry.

3. Establish cooperation, joint venture or association in product manufacturing and development; research and manufacturing in service of security industry; trade promotion and export of security products.

4. Provide training to personnel for security industry.

Chapter III

PARTICULAR POLICIES AND MECHANISMS AND PROGRAMS AND PLANS FOR BUILDING AND DEVELOPING SECURITY INDUSTRY

Article 11. Policies for security industry establishments

1. Particular polices are tailored for state-invested security industry establishments  directly serving the national security protection, social order and safety maintenance, prevention and control of crimes and violations of law and building of the People's Public Security Force, including:

a) Being provided with resources by the state to construct infrastructure, invest in establishments researching, manufacturing and repairing specialized security products and develop high quality dual-use technology in service of  national security protection, social order and safety maintenance, prevention and control of crimes and violations of law and building of the People's Public Security Force;

b) Being provided with tax and fee incentives and assistance, and particular policies on investment and construction in accordance with regulations of law;

c) Being entitled to incentives and assistance in accordance with regulations of law upon investment in construction of new materials and hi-tech products; research and development; technology transfers; manufacturing of products for export;

d) Being entitled to use resources provided to carry out additional business activities apart from those specified in the plan for manufacturing and supply of security products and services or to perform security tasks if the following conditions are met: A competent authority has granted written permission; additional business activities are intended for assisting in the security and order maintenance or for improving capacity and efficiency in using assets after the manufacturing and supply of security products and services or assigned security tasks are done; capability and conditions for manufacturing and supply of security products and services or performance assigned security tasks are not affected; additional business activities are separately accounted for and tax obligations are discharged in accordance with regulations of law;

dd) Being entitled to use concessional loans and loans guaranteed by the State and other financial sources in accordance with regulations to manufacture security products provided to local police authorities by adopting the “use-first pay-later” payment method relevant to the annual procurement costs of local police authorities.

2. Policies tailored for employees at security industry establishments include:

a) Being entitled to benefits regarding salary, social insurance, health insurance, occupational safety and health, occupational accident insurance,occupational diseases and other benefits in accordance with regulations of law;

b) Being provided with professional training at schools within and outside public security sector and in foreign countries.

Article 12. Mechanisms for commissioning, requesting and entrusting import of goods serving security purposes

1. On an annual basis, the Minister of Public Security shall decide to commission, request and entrust import of goods serving security purposes to fully capable security industry establishments in accordance with regulations of law.

2. Mechanisms for commissioning, requesting and entrusting import of goods serving security purposes shall comply with regulations of the Minister of Public Security.

Article 13. Policies for import and reserving technical supplies for security industry

1. Import tax policies for technological lines, materials and technical supplies serving security industry and reserving of technical supplies for security purposes shall comply with regulations on regulations of law on export and import tax.

2. The Prime Minister shall decide the list of technical supplies imported for security industry.

Article 14. Mechanisms and policies on scientific research, development and transfer of technologies in service of security industry

1. Domestic and foreign organizations and individuals involved in scientific research, development and transfer of advanced technologies for the purpose of building and developing security industry are entitled to incentives in accordance with regulations of law.

2. Organizations and individuals involved in scientific research and security industry development are given priority in registering internal, ministerial and state-level scientific researches in accordance with applicable regulations.

Article 15. Sources of capital for security industry development

1. Sources of capital for security industry development:

a) State budget especially provided to security industry establishments under the approved programs or plans;

b) Investment fund for manufacturing development of security industry establishments;

c) Investments, capital provided under cooperation, joint venture or association agreements, sponsorship and assistance from domestic and foreign organizations involved in building and developing security industry;

d) National Technology Renovation Fund for research, development and application of new technologies in building and development of security industry;

dd) Loans granted by the State; loans guaranteed by the State; ODA funds; other loans.

2. The State gives priority in providing state budget for research into, fabrication, manufacturing and development of weapons, explosive materials, combat gears, professional technical instruments, equipment and supplies, and other instruments for carrying out public-security activities.

3. The management and use of sources of capital for security industry development shall comply with plans and regulations of law.

Article 16. Land intended for security industry

1. Land reserved for building, planning and developing security industry establishments includes land intended for security purpose and land intended for development of industrial parks in accordance with regulations of the Land Law.

2. Enterprises affiliated to the Ministry of Public Security and assigned to manage and operate security industry establishments shall comply with regulations on management and use of land and be eligible for exemption or reduction of land rents, land levy and land use tax in accordance with regulations of the Land Law and its guiding documents.

Article 17. Personnel for security industry

1. Personnel at security industry establishments includes:

a) Persons who have suitable qualifications, satisfy standards regarding credentials and health, have aspirations and are employed and seconded by a competent authority;

b) People’s Public Security officers, enlistees, men and workers who are seconded and appointed to act as leaders or managers or work at security industry establishments in accordance with regulations on personnel and organization of the Ministry of Public Security;

c) Contractual employees.

2. The Ministry of Public Security shall develop policies for attracting high quality personnel, experts and scientists to participate in security industry development through employment, secondment or request for research into and development of security industry.

Article 18. Security industry building and development programs and plans

1. Security industry building and development programs and plans shall adhere to the rules specified in Article 4 hereof and the following requirements:

a) Effectively and use potentials and resources of national industry and national defense industry to build and develop security industry; ensure that weapons, explosive materials, combat gears, professional technical instruments, equipment and supplies become more and more advanced;

b) Such programs and plans are implemented in a balanced and uniform manner on an appropriate scale and appropriately implemented in strategic areas;

c) Such programs and plans are conformable to national defense and security and socio - economic development planning, plans and objectives.

2. Bases for formulating security industry building and development programs and plans:

a) Tasks of national security protection, social order and safety assurance and national socio - economic development;

b) Logistics and technical strategies tailored for the People’s Public Security Force;

c) Planning, programs and plans for development of national industry and national defense industry, ability to balance sources of state investment in national defense and security industry building and development.

3. Contents of a security industry building development program or plan:

a) Objectives, scope and tasks of key program, plan or project;

b) System of security industry establishments;

c) Sources, conditions and solutions for implementation.

Chapter IV

RESPONSIBIITY FOR STATE MANAGEMENT AND PERFORMANCE OF SECURITY INDUSTRY DEVELOPMENT TASKS

Article 19. Responsibilities of the Ministry of Public Security

1. Take charge and cooperate with other Ministries, ministerial agencies and provincial People’s Committees in assisting the Government in state management of security industry. Promulgate or request a competent authority to promulgate and organize implementation of legislative documents on security industry.

2. Take charge and cooperate with relevant Ministries and agencies in formulating and submitting security industry development programs and plans to the Prime Minister for approval and organizing implementation thereof. Request a competent authority to approve or approve investment guidelines and decisions for security industry development projects in accordance with regulations of law on public investment.

3. Take charge and cooperate with the Ministry of National Defense, Ministry of Industry and Trade and relevant agencies in promulgating a specific list of security products according to the Appendix hereto.

4. Take charge and cooperate with the Ministry of National Defense, Ministry of Industry and Trade and relevant agencies in reviewing, formulating or adjusting the list of security products and submitting it to the Government for approval, the list of security products and the list of technical supplies imported for security industry and submitting them to the Prime Minister for approval.

5. Promulgate or cooperate with other Ministries and ministerial agencies in requesting the Government and the Prime Minister to promulgate particular incentive and assistance policies and mechanisms for building and developing security industry.

6. Review the list and assess manufacturing capacity of security industry establishments, cooperate with the Ministry of Industry and Trade and Ministry of National Defense in formulating commissioning plans and plans for cooperation, joint venture and association to avoid overlapping investment and wastefulness.

7. Take charge and cooperate with the Ministry of Science and Technology and relevant agencies in promulgating national technical regulations on specialized security products manufactured by Vietnam in accordance with international standards.

8. Take charge and cooperate with the Ministry of Science and Technology and relevant agencies in suggesting and performing the tasks of scientific research and technology development and transfer in service of security industry.

9. Cooperate with the Ministry of Natural Resources and Environment, relevant agencies and provincial People's Committees in reviewing and formulating land use plans and planning in order to serve the building and development of security industry, submitting it them to the Prime Minister for approval and organizing implementation thereof.

10. Cooperate with Ministries and relevant agencies in providing professional training and attracting high quality personnel for security industry building and development.

11. Organize and instruct organizations and individuals to apply for participation in security industry activities and management of international cooperation in security industry.

12. Cooperate with ministries, relevant agencies and provincial People’s Committees in carrying out inspection, handling complaints and denunciations and take actions against violations of law on security industry.

Article 20. Responsibilities of Ministries and ministerial agencies

1. The Ministry of National Defense shall cooperate with the Ministry of Public Security in reviewing, formulating or adjusting the list of security products and specific list of security products; cooperate in assessing capacity of security industry establishments affiliated to the Ministry of National Defense and those affiliated to the Ministry of Public Security to form the basis for exchange, cooperation in research into and manufacturing of products with a view to duty performance and fighting by the People’s Army force, People's Public Security Force and other law enforcement force and avoid overlapping issues and wastefulness.

2. The Ministry of Planning and Investment shall:

a) cooperate with the Ministry of Public Security and relevant agencies in advising the Government and the Prime Minister on unifying state management of formulation and appraisal of decision on investment guidelines and investment in security industry development programs, plans and projects in accordance with regulations of law on public investment;

b) Cooperate with and instruct the Ministry of Public Security to formulate plans for and estimate the costs of developing security industry and incorporate them into the mid-term and annual public investment plans of the Ministry of Public Security;

c) Take charge of balancing and providing investment capital for implementing security industry development programs and plans in accordance with regulations of the Law on State Budget, raise ODA funds for achieving security industry objectives; take charge and cooperate with Ministries and relevant agencies in formulating policies to raise external-source state capital for building and development of security industry.

3. The Ministry of Finance shall:

a) take charge of providing funding for implementing security industry development programs and plans in accordance with regulations of the law on state budget after obtaining approval by a competent authority;

b) provide guidance on conditions, entities and procedures for applying for concessional loans, loans granted by the State, loans guaranteed by the State and other credits in accordance with regulations with respect to programs, plans and projects on development of security industry, and manufacturing and supply of security products in a simple, clear and transparent manner.

c) cooperate with the Ministry of Public Security in providing guidance, inspecting and supervising use of funding for implementing security industry development programs and plans.

4. The Ministry of Industry and Trade shall:

a) cooperate with the Ministry of Public Security and relevant agencies in reviewing and incorporating security industry development and list of security products into programs and strategies for industry development by sectors;

b) cooperate in reviewing, compiling or adjusting the list of security products and submit it to the Government for approval.

5. The Ministry of Natural Resources and Environment shall:

a) take charge and cooperate with relevant agencies and provincial People’s Committees in considering and suggesting plans for management and use of land intended for security industry development and planning for use thereof to the Prime Minister.

b) cooperate with the Ministry of Finance in providing guidance on regulations on land use and particular land incentives for security industry development programs and projects.

6. The Ministry of Science and Technology shall:

a) take charge, cooperate with and instruct the Ministry of Public Security, organizations and individuals to execute programs for and perform tasks of researching and applying technologies to security industry building and development, focus on researching, applying, updating and developing products and high quality specialized products so as to perform the task of national security protection and social order and safety maintenance in new circumstances;

b) cooperate in, provide instructions and inspect technology transfer and reverse engineering; promulgate national technical regulations on specialized security products; deploy experts and scientists to participate in security industry research and development.

7. The State Bank shall cooperate with the Ministry of Finance in providing specific guidelines for implementing policies on credit extension from the State's investment credit sources; domestic and overseas credit guarantee; credit extension from other sources to security industry development programs and projects in accordance with regulations of law.

Article 21. Responsibilities of provincial People’s Committees

1. Cooperate with Ministries and relevant agencies in performing state management of security industry building and development in conformity with strategies, planning and master plan for socio – economic, security, national defense and regional development.

2. Cooperate with the Ministry of Natural Resources and Environment and relevant agencies in making adjustments or additions to land use plans and planning to provide land for security industry development according to the programs, plans and projects approved by competent authorities. Cooperate in implementing particular mechanisms and policies for local security industry development.

3. Cooperate with the Ministry of Public Security and relevant agencies in requesting a competent authority to approve security industry development programs, plans and projects and organize implementation thereof.

Chapter V

IMPLEMENTATION CLAUSE

Article 22. Effect

This Decree comes into force from August 01, 2020.

Article 23. Responsibility for implementation

1. The Minister of Public Security shall take charge and cooperate with other Ministries, ministerial agencies and provincial People’s Committees in providing guidelines for implementation of this Decree.

2. Ministers, heads of ministerial agencies, heads of Governmental agencies, Presidents of provincial People’s Committees and relevant organizations and individuals are responsible for the implementation of this Decree./.

 

 

ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER




Nguyen Xuan Phuc

 

APPENDIX

LIST OF SECURITY PRODUCTS
(Enclosed with the Government’s Decree No.
63/ND-CP dated June 08, 2020)

No.

Product group

Provided/performed by

Specialized security products

1

Specialized and dedicated security combat gears

Security industry establishments as commissioned or requested

2

Security and national defense weapons and explosive materials

Security industry establishments and national defense industry establishments as commissioned or requested The procurement and import of these products shall comply with regulations of law when security industry establishments and national defense industry establishments have failed to satisfy the demands

3

Security and national defense arms

4

Special armored vehicles, professional technical equipment specially designed for security purposes

5

Chemical, biological and testing equipment and products, and documents intended for security purposes

6

Electronic, microelectronic and optoelectronic devices designed for security purposes

7

Optical equipment and laser equipment designed for security purposes

8

Telecommunications equipment, cipher equipment and informatics equipment designed for security purposes

9

Works specific to public’s security sector

10

Other special-use equipment and supplies designed for security purposes

II. Dual-use security products

1

Special and dedicated materials, supplies; special-use military equipment

Security industry establishments as commissioned or requested or national defense industry establishments as commissioned or bid for

2

Professional documents, political records and newspapers, specialized magazines, forms and templates, anti-counterfeit stamps

Security industry establishments as commissioned or requested or national defense industry establishments, organizations and individuals eligible to participate in national defense and security activities, as commissioned or bid for

3

Professional technical instruments and equipment

4

Chemical, biological and testing equipment and products

5

Electronic, microelectronic and optoelectronic devices

6

Optical equipment and laser equipment

7

Telecommunications equipment and informatics equipment

8

Fire and rescue instruments, equipment and products

9

Other equipment and supplies

 


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