THE GOVERNMENT

Article 1.- Scope of regulation and objects of application

1. Scope of regulation

This Decree provides for the mechanism on autonomy and self-management with regard to the tasks, finance and property, organizational structures and payrolls of public scientific and technological organizations.

2. Objects of application

Scientific and technological organizations subject to the application of this Decree are scientific research organizations, scientific research and technological development organizations, and scientific and technological service organizations, that have the legal person status, their own seals and bank accounts and are established under decisions of competent state agencies.

Article 2.- Purposes

The purposes of the autonomy and self-management mechanism are:

1. To enhance the responsibilities and raise the activity, initiative, dynamism and creativity of scientific and technological organizations and of their heads.

2. To create conditions for combining scientific research and technological development with production, business and human resource training, and speed up the socialization of scientific and technological activities.

3. To create conditions for making concentrated investment in scientific and technological organizations.

4. To raise the operation efficiency of scientific and technological organizations, contributing to enhancing the national scientific and technological potential.

Article 3.- Principles

The principles of the autonomy and self-management mechanism are:

1. Exercising autonomy must be coupled with taking self-responsibility for activities of scientific and technological organizations.

2. Exercising publicity and democracy in activities of scientific and technological organizations.

3. Efficiently managing and using resources assigned by the State to, and other resources of, scientific and technological organizations.

4. Fulfilling with high efficiency the tasks assigned or ordered by state agencies and tasks of scientific and technological organizations, ensuring the development of scientific and technological organizations.

Article 4.- Organizational and operational transformation

1. Scientific research and technological development organizations as well as scientific and technological service organizations that self finance their regular activities may opt to transform themselves into ones organized and operating in either of the following two forms:

a/ Self-financing scientific and technological organizations.

b/ Scientific and technological enterprises.

The organizational models and operation modes of scientific and technological enterprises, and the process of transformation into scientific and technological enterprises shall be stipulated in a separate document of the Government.

2. Scientific research and technological development organizations as well as scientific and technological service organizations that are unable to self finance their regular activities yet, shall, by December 2009 at the latest, have to transform themselves into ones organized and operating in either of the two forms specified in Clause 1 of this Article, or be merged or dissolved.

3. For scientific research organizations engaged in basic research or research into strategies and policies in service of state management, the state budget shall provide funds for their regular activities according to their assigned tasks; and they shall be organizationally restructured and consolidated to raise their operation efficiency.

Section 1. REGARDING TASKS

Article 5.- Determination and performance of scientific and technological tasks

1. Based on the State's orientations for scientific and technological development priorities, demands of the society and enterprises, as well as their respective functions, tasks and operation domains, scientific and technological organizations shall determine by themselves scientific and technological tasks and measures to perform such tasks.

2. Based on the lists of scientific and technological tasks, announced annually by the Ministry of Science and Technology, ministries, branches and localities, scientific and technological organizations shall decide by themselves on their participation in the selection and bidding for the performance of the State's scientific and technological tasks as well as measures to perform such tasks.

3. Scientific and technological organizations shall decide by themselves on measures to perform scientific and technological tasks assigned or ordered by state agencies, ensuring the quality and progress as requested.

4. Scientific and technological organizations may:

a/ Sign contracts on the performance of scientific and technological tasks or the provision of scientific and technological services with domestic and foreign organizations and individuals; cooperate with domestic and foreign organizations and individuals in the performance of their tasks.

b/ Decide by themselves to invite foreign experts or scientists into Vietnam or send Vietnamese officials abroad for working trips.

c/ Decide on the development investment from loan capital, capital mobilized from domestic and foreign organizations and individuals, and from their own non-business activity development funds.

Article 6.- Production/business activities

Apart from the above-mentioned provisions of Article 5, scientific and technological organizations may also:

1. Produce and trade in goods, and provide services within their professional domains and other domains according to the provisions of law; and be granted business registration certificates.

2. Enter into production joint venture or cooperation with domestic and foreign organizations and individuals.

3. Directly export and import technologies, products and goods within their professional domains according to the provisions of law.

4. Participate in bidding for the performance of contracts on production of goods and provision of services in line with their professional domains.

Section 2. REGARDING FINANCE AND PROPERTY

Article 7.- Funding sources

Depending on their functions, tasks and activities, scientific and technological organizations may have the following funding sources:

1. Funds allocated by the state budget, including:

a/ Funds for the performance of the State's scientific and technological tasks assigned or ordered directly or through selection or bidding by state agencies, which are allocated by mode of contracting package on the basis of contracts for the performance of scientific and technological tasks, entered into between state agencies and scientific and technological organizations.

b/ Funds for regular activities.

The allocation of regular activity funds to scientific and technological organizations is stipulated as follows:

- For scientific and technological organizations defined in Clause 2, Article 4 of this Decree, competent state management agencies shall continue to provide regular activity funds for them in the period in preparation for organizational and operational transformation (by December 2009 at the latest) if such organizations have had schemes on organizational and operational transformation approved in 2006.

- For scientific and technological organizations defined in Clause 3, Article 4 of this Decree, their annual regular activity funds shall be allocated by mode of contracting package according to assigned functions and tasks.

c/ Capital construction investment capital; project reciprocal capital; funds for the procurement of equipment and the overhaul of fixed assets.

d/ Other funding sources (if any).

2. Revenues from non-business activities, including charge and fee revenues according to regulations; revenues from service provision; revenues from scientific research, technological development and technology transfer contracts; revenues from production/business activities; revenues from other non-business activities (if any).

3. Other funding sources, including fixed asset depreciation capital; retained revenues from the liquidation of assets according to regulations; capital mobilized from individuals and loan capital from credit institutions; financial support capital, aid, donations and gifts of domestic and foreign organizations and individuals; other lawful funding sources provided for by law (if any).

Article 8.- Use of funding sources

The use of funding sources by scientific and technological organizations is stipulated as follows:

1. Regarding expenditures on performance of scientific and technological tasks

To apply the mode of expenditure contracting package for the performance of the State's scientific and technological tasks (in forms of scientific and technological programs, subjects and projects) in all domains of scientific and technological activities (including scientific and technological tasks under national target programs, urgently assigned scientific and technological tasks), which are assigned or ordered directly or through selection or bidding by state agencies. Scientific and techno-logical organizations may decide by themselves on the use of contracted funds for the performance of their tasks, ensuring the quality and implementation progress requirements under contracts.

2. Regarding expenditures on wages

Scientific and technological organizations must pay wages and wage-based deductions to officials, employees and laborers at levels at least equal to those under the State's regulations on wage ranks and grades and positions.

When the State adjusts the minimum wage level, wage ranks or grades, or wage-based deductions, scientific and technological organizations must use their funding sources to pay wages and wage-based deductions to their officials, employees and laborers according to the State's adjustment. For scientific and technological organizations defined in Clause 3, Article 4 of this Decree, competent state management agencies shall consider the additional allocation of funds to each scientific and technological organization.

3. Regarding the appropriation for setting up funds

Annually, after paying all reasonable expenses and fulfilling obligations towards the State according to regulations, for the positive differences between revenues and expenditures (if any), scientific and technological organizations may make appropriations therefrom for setting up funds according to the provisions of law. Particularly, the minimum level of appropriation for setting up non-business activity development funds must be equal to 30% of the total positive revenue-expenditure difference.

The use of funds shall be decided by heads of scientific and technological organizations according to their regulations on internal expenditure.

4. Regarding expenditures on other activities

a/ For funds allocated from the state budget as provided for at Point c, Clause 1, Article 7 and several other funds provided for at Point d, Clause 1, Article 7, scientific and technological organizations must abide by the State's regulations on spending criteria, norms and contents.

The Ministry of Finance shall provide for a number of State-allocated funds defined at Point d, Clause 1, Article 7, which must comply with the State's regulations on spending criteria, norms and contents.

b/ Scientific and technological organizations may decide by themselves on the use of funding sources for spending on their activities (except for several activities specified in Clauses 1, 2 and 3, and Item a, Clause 4, of this Article).

5. Regarding expenditures on increased incomes

For the remaining fund balance after subtracting all expenditures and appropriations for setting up of funds according to regulations, scientific and technological organizations may decide by themselves on the spending thereof on the increase of incomes for their officials, employees and laborers according to their regulations on internal expenditure.

Article 9.- Preferential policies

Scientific and technological organizations defined at Point a, Clause 1, Article 4 of this Decree shall be entitled to the following preferential policies:

1. Being considered and provided by the State Development Assistance Fund with preferential credits or post-investment interest-rate support for investment projects that meet the conditions and fall within the prescribed objects.

2. Being considered and provided by competent state agencies with development investment support, for scientific and technological organizations that meet the prescribed conditions.

3. Being entitled to liquidate or transfer property they have procured with their own funding sources.

4. Being entitled to open bank accounts for conducting transactions relating to production/business activities according to regulations.

5. Enjoying interests and preferential policies applicable to scientific and technological organizations as well as preferential policies applicable to newly-established production enterprises.

6. Being entitled to borrow capital from organizations and individuals, or borrow credit from banks for investment in production expansion and raising of the quality of their activities, and having to repay loans according to regulations; being entitled to use property formed from loan capital for mortgage according to regulations.

7. Being assigned to manage and use the State's property according to the provisions of law; to use fixed asset depreciation deduction amounts and proceeds from the liquidation of assets belonging to state budget capital for addition to their non-business activity development funds; the fixed asset depreciation deduction amounts and proceeds from the liquidation of assets belonging to loan capital shall be used to pay loan principals and interests, the balance (if any) shall be added to the organizations' non-business activity development funds.

8. Being entitled to contribute capital with money, property, land use right value and intellectual property rights in order to carry out scientific and technological activities or production/business activities according to the provisions of law.

Section 3. REGARDING ORGANIZATIONAL STRUCTURES AND PAYROLLS

Article 10.- Regarding organizational structures

Heads of scientific and technological organizations may:

1. Decide on the restructuring of organizational apparatuses; establish, merge or dissolve, and define the functions, tasks, powers and working regulations of, attached divisions and institutions.

2. Decide on the appointment, re-appointment, resignation and dismissal of heads and deputy heads of attached divisions and institutions.

3. Propose personnel and submit to leaders of superior managing agencies for decision the appointment, re-appointment or dismissal of deputy heads of their organizations.

Article 11.- Regarding payrolls and recruitment of employees

Heads of scientific and technological organizations may:

1. Decide on total annual payrolls of the organizations, based on the personnel demands and financial capability of their organizations.

2. Decide on the recruitment of employees in form of recruitment examination or recruitment consideration; sign labor contracts with new recruits.

3. Sign labor contracts with employees who had been recruited in payrolls before the effective date of the Government's Decree No. 116/2003/ND-CP of October 10, 2003, on the recruitment, employment and management of officials and employees in the State's non-business units.

4. Sign labor contracts for the performance of jobs not requiring regular payrolls.

Article 12.- Employment of officials and employees

Heads of scientific and technological organiza-tions may:

1. Decide on the arrangement and employment of officials and employees according to their respective professional capability and qualifications.

2. Decide on the transfer, secondment, retirement, severance, and labor contract termination according to the provisions of law.

3. Decide on the salary grades for officials and employees recruited to work in the organizations; decide on the salary grade promotion on schedule, ahead of schedule or grade skipping within the same salary rank; decide on the appointment to the employee rank or the transfer of the employee rank from the major researcher rank or equivalent and lower ranks.

4. Consider and appoint officials and employees to leading positions after their apprenticeship, who are allowed to sign indefinite labor contracts, have worked for three years or more, and fully meet the conditions as required.

5. Decide on the commendation and disciplining of officials and employees under their management according to the provisions of law.

Article 13.- Responsibilities of heads of scientific and technological organizations

1. Heads of scientific and technological organizations have the following responsibilities:

a/ Heads of scientific and technological organizations defined in Clause 2, Article 4 of this Decree shall have to formulate schemes on organizational and operational transformation and submit them to competent state management agencies for approval in 2006.

b/ To coordinate with their organizations' trade unions in implementing the democracy regulations; elaborate regulations on internal spending; provide for spending on increased incomes, bonuses, use of funds, etc., for approval at conferences of officials and employees, and organize the implementation of these regulations.

c/ To conduct internal accounting and audit as well as financial statistics and publicity according to the provisions of law; to preserve the State-invested capital and property and assure the development of their organizations.

d/ To report on their organizations' activities according to regulations of superior managing agencies; submit to examination and inspection by, and provide adequate documents, information and reports at requests of, competent state agencies.

e/ To direct their organizations to observe the provisions of law on environmental protection, security, social order, national safety and secret assurance; implement regimes and policies towards their organizations' officials and employees, and perform obligations towards the State according to regulations; attach importance to training, and raising qualifications of, their organizations' officials and employees.

f/ To coordinate with, and create conditions for, Party organizations and mass organizations in their organizations to participate in examining and supervising their organizations' activities.

2. Heads of scientific and technological organizations shall exercise the rights to autonomy and bear responsibility for all activities of the scientific and technological organizations; bear responsibility for errors committed by their organizations; be commended for their achievements or disciplined for their violations according to the provisions of law.

3. The process and procedures for appointment, re-appointment or dismissal of heads of scientific and technological organizations shall be stipulated by leaders of superior agencies managing the scientific and technological organizations.

Article 14.- Responsibilities of the Ministry of Science and Technology

1. To assume the prime responsibility for, and coordinate with the Ministry of Home Affairs in, drawing up plans on the implementation of this Decree and report thereon to the Prime Minister, and guide ministries, branches and localities in the implementation thereof.

2. To assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Home Affairs in, formulating and promulgating classification criteria and documents guiding the classification of scientific and technological organizations according to the subjects defined in Article 4 of this Decree; submit to the Prime Minister for decision scientific and technological organizations defined in Clause 3, Article 4 of this Decree, which are allocated regular activity funds by the state budget; sum up the classification results from agencies, ministries, branches and localities, and report thereon to the Prime Minister in the first quarter of 2006.

3. To assume the prime responsibility for, and coordinate with the Ministry of Finance in, elaborating and promulgating documents guiding fund packages as well as pre-acceptance test, management and use of results of performance of the State's scientific and technological tasks; submit to the Prime Minister for decision measures to encourage scientific and technological organizations defined in Clause 2, Article 4 of this Decree to make organizational and operational transformation ahead of schedule.

4. To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, providing conditions for scientific and technological organizations defined at Point a, Clause 1, Article 4 of this Decree to be considered for development investment support.

5. To expeditiously coordinate with concerned agencies in elaborating and submitting to the Government a decree on transforming scientific research and technological development organizations or scientific and technological service organizations into scientific and technological enterprises in the fourth quarter of 2005.

6. To be answerable to the Government and the Prime Minister for urging and examining the implementation of this Decree; to act as a coordinator in settling problems arising in the process of implementing the Decree and report to the Prime Minister for settlement problems falling beyond its competence; annually, to assess, draw experience from, and report to the Prime Minister on, the implementation of the Decree.

Article 15.- Responsibilities of the Ministry of Home Affairs

1. To promulgate documents guiding the implementation of regulations on payroll, recruitment and employment of officials and employees in scientific and technological organizations according to the provisions of this Decree.

2. To promulgate documents guiding the implementation of regulations on signing of labor contracts with employees at scientific and technological organizations.

Article 16.- Responsibilities of the Ministry of Finance

The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Science and Technology in, elaborating and promulgating the following documents:

1. Documents guiding the formulation of regulations on internal spending, financial estimation and settlement of scientific and technological organizations engaged in production, business and service activities.

2. Documents stipulating regular activity fund packages for scientific and technological organizations defined in Clause 3, Article 4 according to the provisions of Point b, Clause 1, Article 7 of this Decree.

3. Documents providing for the assignment for management of state property to scientific and technological organizations engaged in production, business and service activities.

Article 17.- Responsibilities of ministries, ministerial-level agencies, Government-attached agencies, provincial/municipal People's Committees

1. To promulgate documents guiding the implementation of this Decree's provisions relating to their respective functions and tasks.

2. To classify their attached scientific and technological organizations under the guidance of the Ministry of Science and Technology; to direct their attached scientific and technological organizations to implement the provisions of this Decree; to approve schemes on transforming organizational structures and operation of their attached scientific and technological organizations defined in Clause 2, Article 4 of this Decree, urge and examine the implementation of such schemes.

3. To inspect, examine, settle complaints and denunciations about matters relating to activities of their attached scientific and technological organizations according to the provisions of law; detect, suspend the implementation, or cancel decisions of heads of their attached scientific and techno-logical organizations, which are contrary to the provisions of this Decree or relevant legal documents.

Article 18.- Implementation effect

This Decree takes effect 15 days after its publication in "CONG BAO." To annul the previous regulations which are contrary to those of this Decree.

Article 19.- Implementation responsibilities

1. The Minister of Defense, the Minister of Public Security and heads of political organizations and socio-political organizations shall, based on the characteristics, nature and operation domains of their attached scientific and technological organizations, decide on the application of the provisions of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of Government-attached agencies, and presidents of provincial/municipal People's Committees shall have to implement this Decree.