ORDINANCE
THE NATIONAL ASSEMBLY STANDING COMMITTEE

ON DEFENSE INDUSTRY

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10;
Pursuant to the National Assemblys Resolution No.11/2007/QH12 on law - and ordinance-making programs of its XIIth tenure (2007-2011) and 2008;
Tlie National Assembly Standing Committee promulgates the Ordinance on Defense Industry.

Chapter 1

GENERAL PROVISIONS

Article 1. Governing scope

This Ordinance defines the principles for building and development of defense industry; the tasks, organization and operation of defense industry;- the planning, plans and resources for building and development of defense industry; the policies on defense industry; the powers and responsibilities of agencies, organizations and individuals in management and task performance of defense industry.

Article 2. Subjects of application

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Article 3. Position and tasks of defense industry

1. Defense industry constitutes a part and parcel of defense and security strength and potentials and a pan of the national industry.

2. Defense industry has the tasks:

a/ To research into, develop, manufacture, maintain, overhaul, modify and modernize weapons, military equipment and facilities, technical supplies and other products in service of defense;

b/ To participate in socio-economic development, contributing to national industrialization and modernization.

Article 4. Principles for building and development of defense industry

1. Being placed under the leadership of the Communist Party of Vietnam and the unified management of the Government.

2. Abiding by the objectives, tasks and strategies on national construction and defense, meeting the strategic requirements of equipment for the peoples armed forces.

3. Being suitable to economic development capability of the country, achieving advanced scientific and technological levels and incremental modernization, ensuring confidentiality, safety, efficiency and environmental protection.

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Article 5. International cooperation on defense industry

1. Principles for international cooperation on defense industry:

a/ The State creates conditions for foreign organizations and individuals to take part in defense industry activities on the principles of respect for independence, sovereignty, non-interference into internal affairs of each other, equality and mutual benefits, in compliance with Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party;

b/ Ensuring the state secrets on defense and security;

c/ Giving priority to high technologies, double-use technologies;

d/ Abiding by the legal provisions on organization and management of military external activities; the regulations on import, export and procurement of defense commodities and other regulations related to defense industry.

2. International cooperation on defense industry covers the following contents:

a/ Establishing, consolidating and developing cooperative relations with other countries:

b/ Exchanging of information and technical documents, transferring technologies in service of building and development of defense industry;

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d/ Training human resources for defense industry.

Article 6. Prohibited acts

1. Disclosing state secrets on plannings. plans on building and development of defense industry, scientific and technological results related to defense industry, tasks of manufacturing products in service of defense and security.

2. Destroying, buying, selling, presenting, donating, leasing, pledging, mortgaging, exploiting and using illegally equipment and assets assigned by the State to defense industry establishments.

3. Buying, selling, storing, using illegally weapons, military technical equipment and special-use products manufactured by the defense industry.

4. Appropriating, using and transferring illegally information, documents, inventions, technological processes and know-how belonging to state secrets on defense industry.

5. Hindering or shirking the responsibility for. the performance of tasks of building and development of defense industry.

6. Abusing positions and powers to perform illegal acts in defense industry activities.

Chapter 2

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Article 7. Defense industry establishments

1. Defense industry establishments include:

a/ Establishments researching into, manufacturing, overhauling and modernizing weapons, military technical equipment, technical supplies, which are invested by the State in service of defense and security, act as core in building and development of defense industry and are directly managed by the Defense Ministry (below collectively referred to as core defense industry establishments);

b/ Industrial establishments, which are invested by the State to develop their production capacity in service of defense in accordance with the provisions of the law on industrial mobilization (below collectively referred to as mobilized industrial establishments).

2. The Defense Ministry assumes the prime responsibility for, and coordinates with the Ministry of Industry and Trade as well as concerned ministries and branches in, making lists of defense industry establishments and submit them to the Prime Minister for approval.

Article 8. Operation of core defense industry establishments

1. To research into, develop, manufacture, maintain, overhaul, modify and modernize weapons, military technical equipment, military supplies and other products in service of defense under placed orders or assigned plans.

2. To guide the transfer of technologies, training of human resources, and preparation of industrial mobilization.

3. To prepare conditions required for manufacture and repair of weapons, military equipment and gears when the country moves into war.

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5. The Government shall provide a roadmap for renewal of organization and management of core defense industry establishments under the strategy on development of defense industry.

Article 9. Operation of mobilized industrial establishments

1. During peacetime, to perform the tasks of management, maintenance and trial production in order to maintain the chain equipment capacity; to participate in research into, production and supply of, products and services for defense and security on orders placed by the Defense Ministry.

2. To perform the industrial mobilization tasks under the law on industrial mobilization.

Article 10. Organizations and individuals engaged in defense industry activities

1. Organizations and individuals engaged in defense industry activities are organizations not defined in Clause 1. Article 7 of this Ordinance and individuals engaged in defense industry activities.

2. Organizations and individuals engaged in defense industry activities may research into, produce or supply products or sen ices for defense and security by mode of bidding or order placement. The lists of products and services for defense and security are prescribed by the Government.

3. The conditions and procedures for participation in defense industry activities by organizations and individuals defined in this Article are provided by the Government.

Article 11. Placement of defense orders

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2. The Defense Ministry places defense orders to organizations or individuals for manufacture and supply of products or services for defense and security under decisions of the Prime Minister.

Chapter 3

PLANNING AND PLANS ON BUILDING AND DEVELOPMENT OK DEFENSE INDUSTRY

Article 12. Planning and plans on building and development of defense industry

1. The defense industry development planning and plans must abide by the principles defined in Article 4 of this Ordinance and meet the following requirements:

a/ Exploiting and using with efficiency all national potentials and resources for building and development of defense industry: ensuring increasing modem and advanced weapons and military technical equipment;

b/ Ensuring the balance, synchronism, rational scale and proper arrangement in strategic geographical areas;

c/ Being in line with national socio-economic development planning and plans.

2. Grounds for formulation of planning and plans on building and development of defense industry include:

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b/ Strategies on supply of weapons and military technical equipment for the peoples armed forces:

c/ The national industrial development, the States capability to balance investment resources for building and development of defense industry.

3. The planning and plans on building and development of defense industry cover the
following contents:

a/ Definition of objectives, tasks, programs and key projects:

b/ Organization of the system of defense industry establishments;

c/ Balance of resources, implementation conditions and solutions.

Article 13. Competence to approve planning and plans on building and development of defense industry

1. The Government approves planning and plans on building and development of defense industry.

2. The Defense Ministiy assumes the prime responsibility for. and coordinates with the Ministry of Planning and Investment, the Ministry of Industry and Trade, the Ministiy of Finance and concerned state bodies in, formulating planning and plans on building and development of defense industry for submission to the Government.

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Based on the planning and plans on building and development of defense industry, which have been approved by the Government, the Defense Ministry assumes the prime responsibility for, and coordinates with the Ministry of Planning and Investment, the Ministry of Industry and Trade, the Ministry of Finance and concerned state bodies in. formulating programs and investment projects on defense industry, submits them to the Prime Minister for decision and organizes the implementation thereof.

Article 15. Inspection and examination of the implementation of planning, plans, programs and investment projects on defense industry

The Ministry of Planning and Investment, the Defense Ministiy. the Ministry of Industry and Trade, the Ministry of Finance and concerned ministries and branches shall, within the ambit of their respective tasks and powers, organize the inspection and examination of the implementation of planning, plans, programs and investment projects on defense industry.

Chapter 4

RESOURCES FOR BUILDING AND DEVELOPMENT OF DEFENSE INDUSTRY

Article 16. Investment capital for development of defense industry

1. Sources of investment capital for development of defense industry cover:

a/ State budget;

b/ Production development funds of core defense industry establishments;

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2. The State ensures budget for research into, manufacture, overhaul, modification and modernization of weapons, military technical equipment, technical supplies and other products in service of defense and security.

3. The management and use of investment capitat sources for development of defense industry must comply with plans and provisions of law.

Article 17. Human resources in service of defense industry

1. Human resources working at core defense industry establishments include:

a/ Persons with occupations and professional qualifications suitable to employment requirements, who satisfy the criteria on quality, morality and health, have aspirations and are recruited by competent bodies or organizations:

b/ Officials, employees and workers inside or outside the army, who are mobilized by competent authorities for sen ice therein in the state of war and defense emergency:

c/Contractual laborers.

2. Human resources working in mobilized industrial establishments or organizations engaged in defense industry activities shall comply with the law on indusuial mobilization and the labor law.

Article 18. Impon and reserve of technical supplies for defense industiy

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2. The Prime Minister decides on the list of imported technical supplies in senice of defense industiy.

3. The Defense Ministry assumes the prime responsibility for. and coordinates with concerned ministries and branches in, making the list of imported technical supplies for submission to the Prime Minister.

Article 19. Land for defense industry

1. The Government approves planning and plans on the use of land for defense industiy.

2. The Defense Ministry assumes the prime responsibility for, and coordinates with competent state bodies in, formulating planning and plans on the use of land for building and development of core defense industry establishments, submits them to the Government for approval and organizes the implementation thereof.

Article 20. Scientific research, development and transfer of technologies in senice of defense industry

1. The State encourages and adopts incentive policies for domestic and foreign organizations and individuals to participate in scientific research, development and transfer of advanced technologies in service of the building and development of defense industiy.

2. The Defense Ministry assumes the prime responsibility for, and coordinates with the Ministry of Science and Technology as well as concerned ministries and branches in. identifying and performing the tasks of scientific research, development and transfer of technologies in service of defense industry.

Chapter 5

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Article 21. The States policies towards core defense indusuy establishments

1. The States policies towards core defense industiy establishments include:

a/ Prioritizing investment in the construction and development of infrastructures, resources, spearhead and particular branches and lines of the defense industry, double-use technologies in service of both defense and economy;

b/The policies on investment preferences and supports for the production of new materials, hi-tech products; the construction and development of infrastructure of important projects in geographical areas hit by socio-economic difficulties.

2. The States policies towards laborers in core defense industry establishments include:

a/ The regimes and policies on wages, social insurance, health insurance, labor safety and other preferential policies prescribed by law;

b/ Training and fostering to raise their professional qualifications, knowledge and skills at schools inside and outside the army and overseas:

c/ Regimes and policies prescribed by law for cases of injury or death while performing their tasks.

Article 22. The States policies towards mobilized industrial establishments

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a/ Policies prescribed by law for industrial mobilization preparation and implementation;

b/Tax incentives, support regimes and policies prescribed by law when they participate in manufacture of defense goods;

c/ State budget supports for investment in completion of double-use technologies.

2. Laborers participating in defense industry activities are entitled to regimes and policies prescribed by the law on industrial mobilization and Clause 2, Article 23 of this Ordinance.

Article 23. Policies towards organizations and individuals engaged in defense industry activities

1. Organizations and individuals engaged in defense industry activities are entitled to the policies prescribed at Points b and c, Clause 1, Article 22 of this Ordinance.

2. Laborers in organizations engaged in defense industry activities, when directly performing the tasks of manufacturing defense goods, are. apart from their wages, entitled to other preferential allowances prescribed by law. Their enterprises shall pay such preferential allowances. The preferential allowances paid to laborers are accounted into production and business costs.

3. Foreigners participating in defense industry activities shall enjoy interests prescribed by Vietnamese law or under relevant agreements, except otherwise provided for by treaties to which the Socialist Republic of Vietnam is a contracting party.

Chapter 6

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Article 24. Contents of the state management of defense industry

1. Promulgating, and organizing the implemen-tation of. legal documents on defense industry.

2. Formulating, and organizing the implemen-tation of, policies, planning, plans and tasks on defense industry.

3. Organizing and guiding the operation registration of organizations and individuals engaged in defense industry activities.

4. Organizing training and fostering to raise the professional qualifications and operations on defense industry.

5. Organizing and managing international cooperation on defense industry.

6. Examining, inspecting and settling complaints and denunciations and handling violations of law on defense industry.

Article 25. Responsibilities for state management of defense industry

1. The Government performs the unified state management of defense industiy.

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3. The Ministry of Public Security assumes the prime responsibility for. and coordinates with the Defense Ministry in, ensuring security, order and fire prevention and fighting safety for defense industiy establishments.

4. Provincial/municipal Peoples Committees shall, within the ambit of their respective tasks and powers, perform the state management of defense industry.

Chapter 7

IMPLEMENTATION PROVISIONS

Article 26. Implementation effect

This Ordinance takes effect on July 1, 2008.

Article 27. Implementation detailing and guidance

The Government shall detail and guide the implementation of this Ordinance.

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ON BEHALF OF THE NATIONAL ASSEMBLY STANDING COMMITTEE
CHAIRMAN




Nguyen Phu Trong