Enterprises producing software products will be given investment incentives. So understand what is a software product? FAMA considers some contents in Decree 71/2007 / ND-CP to discuss with readers.

First, we go through some basic definitions, including the clear definition of software products in Article 3 as follows:

Article 3.- Interpretation ofterms

In this Decree, the terms below are construed as follows:

1. Software product means software, and accompanying documents which are produced and displayed or stored in objects ofany formand can be purchased, sold or transferred to other subjects for exploitatioiior use.

2. System software means a software used for organizing and maintaining the operation ofa system or digital equipment (below collectivefyreferredto as digital equipment). A system software may create an environment for application softwares to operate and be constantly in the operation status during the operation of digital equipment

3. Application software means a software developed and installed in a certain environment to perform specific tasks or operations.

4. Utility software means a software helping users organize, manage and maintain the operation of digital equipment

5. Tool software means a software used as a tool by software developers to use and develop other softwares.

6. Packaged software means a complete software product with a registered trademark which is multiplied for supply to the market

7. Software manufactured to order means software products manufactured under specific requirements of customers or users.

8. Embedded software means software products which are installed by the manufacturer before hand in digital equipment and operate together with digital equipment without requiring activation by users.

9. Softwareprocessing means activities whereby the processor manufactures and supplies software products or services or performs some stages to complete software products or services at the request of the processee.

10. Software service means activities in direct support or service of the manufacture, installation, exploitation, use, upgrading, warranty and maintenance of software and other similar activities related to software.

11. Digital information content products means information content products, including documents, data, images and sounds; which are displayed in the digital form, stored and transmittted in the nework environment

12. Digital information content services means services provided in the networt environment in direct support or service of the manufacture, exploitation, distribution, upgrading, warranty and maintenance of digital information content products and other similar activities related to digital information contents.

In addition, software industry activities are also clearly defined in Article 09. Readers note that software services are not entitled to CIT incentives.

Article 9.- Software industry activities

1. Software industry activities are activities of designing, manufacturing and supplying software products and services, including manufacturing packaged softwares, manufacturing softwares under orders or embedded softwares; processing softwares and providing software services.

2. Software products include:

a/ System softwares;

b/Application softwares;

c/Utility softwares;

d/Tool softwares;

e/ Other softwares.

3. Software-services include:

a/ Administration, warranty and maintenance of operations ofsoftwares and information systems;

b/ Software quality counseling, assessment and evaluation;

c/ Software project counseling and formulation;

d/ Softwarevaluation counseling;

e/ Software technology transfer;

f/ System integration;

g/ Assurance of safety and security for software products and information systems;

h/ Distribution and supply ofsoftware products;

i/ Other software services.

Through the above 2 things, readers can imagine what software products are like and often expressed through forms.

Phan Thanh Nam