The 7-Step Software Production Process: Technical Standards And Legal Foundations For Tech Enterprises

In the era of rapid digital transformation, Vietnam’s software industry is not only a primary driver of economic growth but also a sector receiving significant government support through various incentive policies. However, for a product to be officially recognized as a “software product” and for a company to fully qualify for these benefits, adhering to a standardized production process is a prerequisite.

According to Circular 13/2020/TT-BTTTT, the software production process consists of seven rigorous stages. Implementing and documenting this process is not just about quality assurance; it serves as the critical legal foundation for enterprises to protect their tax incentive rights before regulatory authorities.

1. Requirement Analysis

This foundational stage shapes the “soul” of the product. The team conducts field surveys, analyzes specific business logic, and defines user requirements to create the Software Requirements Specification (SRS). This is one of the two core steps that an enterprise must perform to be classified as “software production” rather than a general “software service.”

2. Analysis and Design

This stage transforms requirements into detailed technical models, including data structures, algorithms, system architecture, and User Interface/User Experience (UI/UX) design. Deliverables such as Entity-Relationship Diagrams (ERD) and Prototypes are vital evidence of the enterprise’s intellectual contribution.

3. Coding and Development

The stage where designs are realized into functional products. Developers write source code using appropriate programming languages and frameworks. Source code must be managed systematically to facilitate technical audits when necessary.

4. Testing and Quality Assurance

Ensuring the product operates correctly, completely, and securely before reaching the user. By executing various test scenarios (Unit Test, System Test), teams identify and resolve bugs. Maintaining Test Cases and Test Reports confirms the unit’s commitment to a strict quality control process.

5. Finishing and Packaging

Preparing the final commercial version for the market. This involves creating installation guides, User Manuals, and bundling the software into an installer. This step marks the transition from an internal project to a market-ready product.

6. Deployment, Transfer, and Maintenance

Implementing the software in a real-world environment, training users, and fulfilling maintenance or bug-fixing commitments. Deployment records and acceptance certificates serve as proof that the product has completed its production cycle and entered active use.

7. Release and Distribution

Delivering the value of the software to the market through selling, leasing, or licensing activities. Economic contracts and invoices at this stage must align precisely with the software product names identified in the previous steps.

👉 The Vital Connection to Tax Incentive Policies

In Vietnam, enterprises engaged in genuine software production activities often enjoy significant Corporate Income Tax (CIT) incentives. However, these policies are strictly monitored through post-clearance audits.

Proving that a company has executed the production stages correctly—specifically Analysis, Design, and Coding—is the most important legal evidence for tax authorities to validate incentive eligibility. A lack of supporting documentation not only complicates management but also risks the rejection of incentive rights, leading to potentially heavy tax arrears and penalties.

Ultimately, this 7-step process is more than just a technical framework for engineers; it is a financial and legal safety corridor. Standardizing this process from the outset empowers technology enterprises to stand firm during tax finalizations, allowing them to focus resources on creating breakthrough solutions for the market.

For detailed consultation on regulations and the software production process steps, please kindly contact TPM Tax Agent experts via the TPM Hotline: +84 28 3505 1800.

Vũ Hồ