Circular outlines IT spending criteria

The Ministry of Information and Communications (MIC) has issued Circular No. 01/2014/TT-BTTTT (February 20, 2014) that provides the criteria and list of domestic information technology (IT) products and services eligible for priority in investment and procurement using the state budget funds or funds originating in the state budget. The circular applies to state agencies, non-business units, political and socio-political organisations and armed forces' units and agencies.

General criteria for domestic IT products and services to be eligible for priority:

(1) Made in Viet Nam and by enterprises controlled by Vietnamese legal entities or individuals under laws;

(2) Trademarks that have been registered and protected or registered and all requirements and conditions to provide IT products and services (if any) under laws have been met;

(3) Having product-related technical documents and guidance in Vietnamese;

(4) Having clear notification on guarantee, responsibilities of the suppliers, post-sale policy and other relevant policies.

Specific criteria for domestic IT products and services

(1) Computer hardware and electronic products

(a) Product turnover achieves at least either VND10 billion per year for last two consecutive years, or five state agencies or 10 organisations and enterprises, or 500 individuals have used or are using the products;

(b) Domestic production costs account for 20 per cent or more of total production costs, or their production activities use at least 50 Vietnamese workers specialising in computer hardware or electronic products;

(c) Products have been announced as conforming to Vietnamese standards (TCVN) and certified as conforming to technical regulations (QCVN) under laws;

(d) Produced by enterprises obtaining at least TCVN ISO 9001:2008; TCVN ISO 14001:2004; TCVN ISO 17025:2005 or similar standards.

(2) Software products

(a) Product turnover achieves at least VND500 million per year for last two consecutive years, or at least two state agencies or five organisations and enterprises, or 500 individuals have used or are using the products;

(b) Product functions and technical specifications conform to professional requirements or laws;

(c) Domestic production costs account for 30 per cent or more of total production costs, or the production activities use at least 20 Vietnamese workers specialising in software;

(d) Produced by enterprises obtaining CMMI Level 3 or over standard certificate; or TCVN ISO 9001:2008; or products have 60 or more CMMI points or less than 50 PoF points.

(3) Digital data products

(a) Products must conform to provisions on supply and use of contents and information on the internet if the products are supplied via the internet;

(b) Product turnover achieves at least VND2 billion per year for last two consecutive years, or at least 20 organisations and enterprises, or at least 500 individuals have used or are using the products;

(c) Domestic production costs account for 30 per cent or more of total production costs, or the production activities use at least 20 Vietnamese workers specialising in software or digital data.

(4) IT services

(a) Services turnover achieves at least VND2 billion per year for last two consecutive years, or at least 5 organisations and enterprises have used or are using the IT services;

b) Supplied by services suppliers who have services quality management system that conform to ISO standard, particularly TCVN ISO 27001;

Approval is required if there is no investment or procurement of domestic IT products and services.

Investors' use of the state budget funds or of funds originating in the state budget needs to have priority investment or procurement of domestic IT products and services. In case of failure of investment or procurement of domestic IT products and services, the investors must seek the approval of competent authorities.

The circular comes into effect from April 8, 2014, replacing MIC Circular 42/2009/TT-BTTT (December 30, 2009). — MAI COUNSEL