Not a few manufacturing projects are refused an Investment Registration Certificate (IRC) at the stage investors least expect: technology appraisal. A production line that runs well in another country, machinery still worth a great deal — yet in the eyes of Vietnamese appraisers that technology may be classed as outdated or a pollution risk. This article sets out the current technology appraisal criteria — from the encouraged, restricted and prohibited transfer lists to environmental standards — and how investors can self-check before filing.
The legal framework of technology appraisal in investment projects
Technology appraisal is one assessment content in IRC issuance under the Law on Investment No. 143/2025/QH15 and Decree No. 96/2026/ND-CP, especially for projects using technology on the restricted transfer list or posing environmental risks. The specialised foundation is the Law on Technology Transfer No. 07/2017/QH14 (amended by Law No. 115/2025/QH15), which divides technology into three groups in Articles 9, 10 and 11: encouraged, restricted and prohibited transfer; the Government issues detailed lists for each group. The provincial science and technology authority, or the Ministry of Science and Technology depending on project scale and nature, provides the technology appraisal opinion on which the investment registration authority bases its decision to issue or refuse the IRC.
The concrete criteria for “outdated, polluting”
Four groups of criteria appraisers apply
- Prohibited or restricted lists: technology and accompanying machinery no longer in common use even in developing countries and failing national technical standards are prohibited from transfer under Article 11 of the Law on Technology Transfer; technology no longer common in industrialised countries is restricted under Article 10.
- Safety and health: technology failing regulations on occupational safety, occupational hygiene and human health protection falls into the absolutely prohibited group.
- Environment: technology using toxic chemicals or generating waste that fails national environmental standards is prohibited; where standards are met, it remains restricted and appraised more strictly.
- Energy and raw-material consumption and automation level compared with the sector’s current technology baseline — the factor separating “old but acceptable” technology from “outdated” in the legal sense.
One point deserves emphasis: “outdated” in an appraisal conclusion is a legal concept tied to lists and national standards, not an officer’s subjective impression. An effective explanation dossier therefore answers each criterion above with technical documentation, not generic argument.
Self-checking technology before filing
Investors can self-review in three steps: look up the intended technology and production line in the encouraged, restricted and prohibited transfer lists issued by the Government under the Law on Technology Transfer; require the equipment supplier to produce documents on year of manufacture, usage status in other countries, and standard conformity certificates; and consult the local science and technology authority or a qualified technology assessment and valuation organisation for an independent professional opinion before the official filing. For imported used machinery, pay special attention to the separate conditions on equipment age and remaining quality under specialised rules on used machinery imports.
Refused on technology: how to swap and refile
Unlike planning refusals, a technology refusal usually leaves a clear way back: the investor replaces the technology found outdated with one meeting national standards — upgrading part of the line or changing the whole technology plan — then files a fresh application with full technical documentation and an independent assessment. Technology on the prohibited transfer list, however, admits no exception: whatever mitigation the investor promises, a project using prohibited technology cannot receive an IRC. For restricted-list technology, the dossier needs an additional justification of necessity and risk-control measures, and the investor should expect a longer appraisal round than usual.
In short, technology appraisal rests on four pillars: the prohibited and restricted lists, occupational safety and health, environmental standards, and advancement relative to the sector baseline. Investors who benchmark their technology against these four pillars at the equipment selection stage will avoid one of the costliest refusal grounds — because when a refusal comes at the technology stage, the repair bill is usually the price of a new production line.
The documentation set that survives technology appraisal
Technology appraisal is, at heart, a documentary exercise, and projects pass it by submitting a technology file that answers the appraiser’s checklist before the questions are asked. That file normally contains the equipment list with manufacturers, models and years of manufacture; the process description showing inputs, outputs and emissions at each stage; conformity certificates and test results against the relevant national technical regulations; the environmental documentation for the production process; and, where machinery is used equipment, evidence of remaining quality and inspection status. Two habits separate successful files from refused ones. The first is candour about the technology’s generation: presenting an older line honestly, with upgrade measures and emission data attached, earns more credibility than marketing language about “advanced technology” that the equipment list then contradicts. The second is early engagement: investors who consult the science and technology authority informally while the project is being designed can change a machine model at the cost of an email, whereas the same discovery after filing costs a refusal, a new line and a new application. Where the technology sits near the restricted boundary, an independent assessment report from a qualified technology valuation organisation, obtained before filing, often becomes the single most persuasive document in the entire investment dossier.
Finally, investors should keep the technology file alive after the IRC is issued. Appraisal conclusions reached at the registration stage can be revisited at inspection if the installed line differs from the appraised one, so substitutions of equipment models during procurement should be checked against the approved technology description before purchase orders are signed, not discovered by an inspector afterwards.
Frequently Asked Questions
Which criteria do technology appraisers use to judge outdated or polluting technology?
Four groups: whether the technology is on the prohibited or restricted transfer lists under Articles 10 and 11 of Law on Technology Transfer 07/2017/QH14; compliance with occupational safety and health rules; compliance with national environmental standards; and energy and material consumption versus the sector’s technology baseline.
How can I check whether my technology counts as outdated, and where?
Look it up in the Government-issued encouraged, restricted and prohibited technology transfer lists, compare against national technical standards, and seek an opinion from the local science and technology authority or a qualified technology assessment organisation before filing.
After a technology refusal, can I change the technology and refile?
Yes, except for technology on the prohibited transfer list. Replace it with technology meeting national standards, prepare full technical documentation with an independent assessment, and file a fresh application; restricted-list technology needs extra justification and risk-control measures.