THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 22, 2000 Law on Science and Technology;

At the proposal of the Minister of Science and Technology,

DECIDES:

Article 1.- To approve the "Scheme on renewal of science and technology management mechanism" issued together with this Decision.

Article 2.- Implementation organization

The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the ministries, the ministerial-level agencies, the Government-attached agencies, the People's Committees of the provinces or centrally-run cities in, organizing the implementation of the Scheme on renewal of science and technology management mechanism.

Annually, the ministries, the ministerial-level agencies, the Government-attached agencies, the provincial/municipal People's Committees send their reports on the situation of renewing the science and technology management mechanism in their respective agencies or localities to the Ministry of Science and Technology for sum-up and report to the Prime Minister.

Article 3.- This Decision takes implementation effect 15 days after its publication in the Official Gazette.

Article 4.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies, the presidents of the provincial/municipal People's Committees shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI

INTRODUCTION

Science and technology constitute the foundation and motive force for accelerated industrialization and modernization as well as sustainable development of the country. Our Party and State have early determined the key role of the scientific and technological revolution. Over the recent past, particularly in the renewal period, many important documents on strategic orientations, mechanisms and policies for scientific and technological development were promulgated: The Resolution of the second plenum of the Party Central Committee, the VIIIth Congress (1996); the Conclusions of the sixth plenum of the Party Central Committee, the IXth Congress (2002); the Law on Science and Technology (2000); the Strategy for development of Vietnam's science and technology till 2010 (2003); and many other specific policies on building up potentials and renewing mechanisms for science and technology management.

With the concern of the Party and the State and particularly the efforts of the contingent of science and technology officials, scientific and technological activities have seen steps of development, progress and certain results, positively contributing to socio-economic development, the assurance of national security and defense.

However, our country's scientific and technological activities at present still fail to meet the requirements of the cause of national industrialization and modernization, especially in the trend of international economic integration and development of the knowledge-based economy in the world. The IXth National Party Congress pointed out the basic limitations of the current scientific and technological activities that they "have not yet been really associated with the requirements and activities of various socio-economic branches; the research outcomes have been late to be applied; our scientific and technological levels remain low as compared to nearby countries; the capability to create new technologies remains very limited. The scientific research agencies have been late to be reorganized, being left scattered, non-coordinative and inefficient. The research institutes and enterprises as well as universities have not yet been associated with one another. The investment in the construction of material and technical foundations has not been concentrated. Highly qualified science and technology cadres, though in small number, have not yet been well employed."

The objectives of the Strategy on development of Vietnam's science and technology till 2010 are: "To concentrate efforts on building our country's science and technology along the direction of modernization and integration, striving to achieve the average advanced level in the region by 2010, making science and technology really the foundation and motive force for acceleration of national industrialization and modernization."

In order to achieve the development objectives of our country's science and technology till 2010, we must vigorously renew the science and technology management mechanism, creating steps of substantial improvement in the management of science and technology along the direction of conformity with the socialist-oriented market mechanism, with the particularities of scientific and technological activities, with the requirements of active international economic integration, aiming to markedly raise the quality and efficiency of scientific and technological activities; enhancing and efficiently using the scientific and technological potentials.

The scheme on renewal of science and technology management mechanism shall focus on the following major solutions: (1) Perfecting the mechanism for formulation and performance of scientific and technological tasks; (2) Renewing the mechanism for management and operation of scientific and technological organizations; (3) Renewing mechanisms and policies on financial investment in scientific and technological activities; (4) Renewing the mechanism for management of scientific and technological personnel; (5) Developing the technology market; (6) Perfecting the mechanism for operation of the science and technology State management apparatus.

I. THE ACTUAL STATE OF THE CURRENT SCIENCE AND TECHNOLOGY MANAGEMENT MECHANISM

1. Initial steps of renewal

Together with the process of renewing the economic mechanism, over the recent years, the science and technology management mechanism has been step by step renovated and crowned with some initial results.

The formulation and implementation of scientific and technological tasks have been renewed along the direction of determining central tasks, focal tasks, linking them more closely to socio-economic development tasks. The State's programs and subjects have been concentrated, thus avoiding the scatteredness and achieving better balance between natural sciences as well as technologies and social sciences as well as humanities. The mechanism for selection of organizations, individuals for performance of scientific and technological tasks has been initially applied on the principles of competition, democracy, equality and publicity, thus contributing to raising the quality of performance of scientific and technological tasks.

The mechanism for management of scientific and technological organizations has been step by step renovated along the direction of socialization and their linkage with production and business. Organizations and individuals of all economic sectors have the right to set up scientific and technological organizations. The scope of operation of these organizations has been expanded to cover from research and training to production, scientific and technological services. There have appeared many non-State scientific and technological organizations, many production establishments in research institutes or universities, contributing to quickly introducing research results into production.

The financial mechanism and policies for science and technology have been renovated along the direction of gradually increasing expenditures on science and technology in the total State budget expenditure and diversifying sources of investment in scientific and technological development. The allocation of funding to scientists has been further improved on the basis of recruitment on the principles of competition and reduction of unnecessary intermediaries. The financial autonomy has been initially applied to public scientific and technological organizations.

The personnel management mechanism has been renewed along the direction of expanding autonomy for science and technology cadres in signing contracts on scientific research and technological development, in part-time activities and international cooperation. The labor- contract regime has been broadened for scientific and technological organizations. Some forms of honoring and commending science and technology cadres have been applied.

Various institutions in support of technology market development have been initially established. Law provisions on scientific and technological contracts, technology transfer and intellectual property have been promulgated, thus creating conditions for commercialization of scientific and technological results. The technology-equipment markets have been organized in many localities and on national scale, formulating a market transaction channel to promote activities of buying and selling equipments and scientific as well as technological products.

The assignment and decentralization of the State management over science and technology have been improved one step through consolidating the organizational apparatuses and defining the functions, tasks and responsibilities of the ministries, ministerial-level agencies and the provincial/municipal People's Committees.

The results of the recent renewal of science and technology management mechanism have contributed to the general achievements of sciences and technologies as assessed by the IXth National Party Congress that "...social sciences and humanities, natural sciences and technologies have seen positive changes and been associated more closely with social and economic development."

2. Weaknesses and their causes

Despite certain progresses, the current science and technology management mechanism in our country has not yet been substantially renovated, being incompatible with the socialist-oriented market mechanism and with the particularities of scientific and technological activities in the trend of globalization and international economic integration.

The determination and organization of performance of scientific and technological tasks have yet really stemmed from the socio-economic development tasks. The powers and responsibilities of branches and levels in determining scientific and technological tasks have yet been clearly defined. There still lacks an effective mechanism to overcome the scientific and technological task overlapping among branches, levels and localities. The selection criteria and the selection of specialists to join advisory councils for determination and selection of organizations and/or individuals for the performance of scientific and technological tasks or the evaluation of research results have proved insufficient. The research result evaluation work remains incompatible with international standards.

The mechanism for management of scientific and technological organizations has proved unsuitable to the particularities of the creative labor and socialist-oriented market economy mechanism. There still lacks a planning on scientific and technological organizations meeting the development requirements of various key scientific and technological branches and fields as well as socio-economic development demands. The State-run scientific and technological organizations have not yet been given full autonomy in terms of plan, finance, personnel and international cooperation to promote their dynamism, creativity and the association between research, training and production as well as business. Specific criteria have not yet been elaborated for evaluation of quality and efficiency of scientific and technological activities in general and scientific and technological organizations in particular.

The financial mechanism and policies have failed to create motive forces and favorable conditions for organizations and individuals engaged in scientific and technological activities. The financial mechanism has yet created high autonomy for scientific and technological organizations. The state budget investment in sciences and technologies has spread evenly without concentration on key domains, works. There still lack effective measures to mobilize non-State budget capital sources for science and technology. There has been the shortage of risk investment capital sources to encourage hi-tech research, application to production and business.

The scientific and technological personnel management mechanism has yet created a driving force for promoting the creativity of science and technology workers. The shift from the regime of public servants to the regime of officialdom and contract has been slow, failing to create favorable conditions for personnel rotation and renewal. There still lack specific mechanism and measures to build up and heighten the role of the contingent of outstanding scientists and technologists as well as strong scientific and technological collectives. The salary regime remains irrational, failing to encourage officials to fully devote themselves to the scientific and technological cause. There still lack specific policies to strongly encourage the scientific and technological forces overseas to contribute to the cause of national development.

The technology market remains small and underdeveloped. Activities of technology purchase, sale and circulation of research results are still very limited due to the absence of many important factors, market components and necessary law provisions.

Most research results have just stopped at laboratories and failed to create many comprehensive technologies, which can be commercialized. Importance has yet been attached to the purchase of technological patents of advanced countries for technological renewal.

The regulations on intellectual property right and technology transfer have not yet encouraged research institutions to care for the exploitation and commercialization of research results created with the State budget. The enforcement of intellectual property legislation has been of low effect. The capabilities of technological intermediary and brokerage organizations remain weak, failing to play the role as bridge between supply and demand.

The renewal of State management over science and technology has failed to keep pace with the shift to market economy. There still lack specific mechanisms to regulate the State management over science and technology. The system of legal documents on the State management over scientific and technological activities has been inadequate, unspecific, asynchronous and outdated as compared with realities; many provisions are unfeasible. The assignment and decentralization of powers and responsibilities among ministries, branches as well as between the central government and localities have not been clearly defined.

The above-mentioned weaknesses have been attributed to the following major causes:

First, the view that science and technology constitute the foundation and motive force for national development, which has been confirmed in various resolutions of the Party, has not been thoroughly grasped for conversion into practical deeds of the administrations at different levels, the ministries, branches and localities in formulating and organizing the implementation of socio-economic development tasks. Many undertakings and policies of the Party and the Government on scientific and technological development were slow to be institutionalized in legal documents to meet the practical renewal demands; leaderships at various levels were not persistent and resolute in organizing and directing the renewal of management of science and technology.

Second, the thinking and methods of managing science and technology are slow to renovate under the circumstances of the shift to the socialist-oriented market economy and the international economic integration. The State's responsibility for development investment in a number of scientific and technological activities such as basic research, public-utility research, development strategy and policy research, etc. has not yet been clarified. There still lack appropriate mechanisms and policies for necessary scientific and technological activities where the market mechanism can be applied, such as activities of research into technological application and development, scientific and technological services.

The State administrative management has not yet been separated from non-business activities, thus leading to the situation that State management bodies have directly performed the tasks of scientific research and technological development. There still lack the effective mechanisms for inspection, examination and clear definition of responsibility in scientific and technological activities.

Third, importance has not been attached to the review of realities of good models. Over the recent years, with dynamism and creativity of scientific and technological organizations, there have appeared many good models in linking scientific research with production, which were, however, not reviewed in time for wide application.

Fourth, the current economic management mechanism still maintains the State's indirect subsidies through preferences and monopolies in various domains, thus making State enterprises pay less attention to technological research, application and renewal in order to raise their competitiveness. The enterprises' scientific and technological capabilities remain inadequate, lacking the contingent of science and technology workers acting as bridge for application of research results to production. The financial and monetary system has been underdeveloped, failing to create conditions for enterprises to mobilize by themselves capital sources for investment in science and technology.

II. OBJECTIVES, VIEWPOINTS AND PRINCIPLES OF CONTINUED RENEWAL OF SCIENCE AND TECHNOLOGY MANAGEMENT MECHANISM

1. Objectives

a) The overall objectives:

From now till 2010, to continue the renewal, creating the substantial improvement in science and technology management suitable to the socialist-oriented market mechanism, to the requirements of active international economic integration and the particularities of scientific and technological activities so as to markedly raise the quality and efficiency of activities and enhance the scientific and technological potentials, actively serving the cause of sustainable national development at high rates.

b) Specific objectives:

- To perfect the system of legal documents on renewal of science and technology management mechanism.

- To perfect the mechanism for determining and organizing the implementation of scientific and technological tasks in association with the socio-economic development demands and the mechanism for evaluating scientific and technological activities on the basis of quality standards of science and socio-economic efficiency.

- To apply the mechanism of autonomy and self-responsibility to the public scientific and technological organizations; to complete the experiment and sum up experiences in shifting technological application and development research organizations to operate under the enterprise mechanism for wide application.

- To strive to achieve the 50/50 ratio between the State budget funding and the non-State budget funding invested in science and technology on the basis of applying effective measures to diversify sources of investment capital for scientific and technological activities; to substantially renew the financial mechanism so as to create favorable conditions for organizations and individuals engaged in scientific and technological activities.

- To basically complete institutions supporting the development of technology market, promoting the purchase, sale, transfer and renewal of technologies.

- To implement policies of honoring and putting scientific and technological talents in important positions.

- To carry on the administrative reform, responsibility assignment and decentralization and raise the Government's coordinating role with a view to raising the operation efficiency of the apparatus of State management over science and technology.

2. Viewpoints

The renewal of science and technology management mechanism should be conducted on the following viewpoints:

a) To vigorously shift the science and technology management from the administrative and subsidized mechanism to the market mechanism; to separate the management of the administrative sector from the management of the non-business sector in the scientific and technological system.

b) To step up the socialization of, and create an equal environment for all organizations and individuals to participate in, scientific and technological activities.

c) To closely associate production and business with research and training; enterprises shall play the central role in technological application and renewal.

d) To promote democracy and creativity in scientific research, especially research in social sciences and humanities.

e) To step up international integration and cooperation in scientific and technological activities, selectively absorbing scientific knowledge, technological transfer, attracting foreign resources for scientific and technological development.

3. Principles

The renewal of science and technology management mechanism in the coming period must ensure the following major principles:

a) To ensure synchronism between the renewal of science and technology management mechanism and the renewal of socio-economic management mechanism.

b) To formulate a system of clear-cut and consistent mechanisms as well as policies, ensuring the regulation, coordination, assignment as well as decentralization and clearly defining the responsibilities and powers of the ministries, branches and localities in performing the State management over science and technology.

c) To promote autonomy, self-responsibility, cooperation and healthy competition, creating strong material and spiritual motive force for organizations and individuals engaged in scientific and technological activities under the conditions of the market economy.

d) To take scientific-technological quality and socio-economic efficiency as the major standards for evaluation of scientific and technological activities; to proceed to reach the international evaluation standards.

e) To ensure the feasibility, attach importance to the review of practical situation in the course of implementation.

III. SOLUTIONS TO RENEWAL OF SCIENCE AND TECHNOLOGY MANAGEMENT MECHANISM

1. To perfect the mechanism for formulating and organizing the implementation of scientific and technological tasks

The perfection of the mechanism for formulating and organizing the implementation of scientific and technological tasks must stem from the socio-economic development tasks of the country, branches and localities in each period.

a) Definite assignment and decentralization of responsibility for formulating and organizing the implementation of scientific and technological tasks

The Government shall decide on key scientific and technological development orientations for use as basis for determining scientific and technological tasks of State level, national importance, inter-branch and long-term nature, which serve socio-economic development, security and national defense and enhance the national scientific and technological capabilities. The Prime Minister shall decide on key scientific and technological tasks of State level, scientific and technological tasks in direct service of the Government's direction and administration. The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the ministries, branches, provincial/municipal People's Committees and concerned agencies in, formulating and organizing the implementation of these scientific and technological tasks, incorporating them in socio-economic development programs.

The ministries, ministerial-level agencies and Government-attached agencies shall decide on scientific and technological tasks in direct service of their respective development objectives, which do not coincide with State-level scientific and technological tasks. The science and technology management bodies of the ministries, ministerial-level agencies or Government-attached agencies shall assist their ministers or heads of such agencies in formulating and organizing the implementation of the scientific and technological tasks within their management scope.

The provincial/municipal People's Committees shall decide on scientific and technological tasks of applied nature, in direct service of socio-economic development objectives of their respective localities. The science and technology management bodies of the provinces or centrally-run cities shall assist the People's Committee presidents in formulating and organizing the implementation of scientific and technological tasks of their respective localities.

Scientific and technological organizations, enterprises and social organizations of all economic sectors shall participate in the formulation and implementation of scientific and technological tasks of the State, enjoy autonomy in determining their respective scientific and technological tasks.

To enhance the Government's coordination in formulating and organizing the implementation of scientific and technological tasks in order to avoid overlapping and coincidence. The Ministry of Science and Technology shall assist the Government in organizing such coordination.

b) To perfect the mechanism for formulating and organizing the implementation of the State's scientific and technological tasks

To clearly define the priority scientific and technological tasks at all levels. The science and technology State management agencies at all levels shall organize the exchanges of opinions between institutes, schools, enterprises and policy-making bodies in order to determine the priority tasks.

For scientific and technological tasks of applied nature, prompted by the requirements of raising the quality, efficiency and competitiveness of products, to apply the mechanism of association between scientific and technological organizations and establishments in applying research results throughout the entire process from the determination of tasks, implementation organization, evaluation to the application of research results to reality.

To widely apply the mode of recruiting organizations and individuals for performance of scientific and technological tasks according to the mechanism of competition, publicity, democracy. The direct assignment of scientific and technological tasks to organizations and/or individuals for performance must be conducted publicly on the basis of clear selection criteria. To perfect the regulation on recruitment of organizations and individuals for performance of scientific and technological tasks.

To substantially renew the work of evaluation of scientific and technological activities on the basis of clear and specific standards suitable to each form of research: for basic research, it must be evaluated with scientific quality compatible with international standards; for the research into technological application and development, the socio-economic efficiency of the application to reality must be taken as the major criterion for evaluation.

To perfect the regulations on establishment and operation of advisory councils for determining, selecting and evaluating the results of performance of scientific and technological tasks, ensuring their independence and impartiality. To build databases on evaluation experts, council members' criteria and councils' composition, suitable to different forms of research.

c) To quickly apply results of scientific and technological research to practical production and life

The science and technology management agencies at all levels shall have to build up and implement the mechanism for quick application of scientific and technological research results to reality. Organizations and individuals performing scientific and technological tasks shall have to observe the regulations on archival, confidentiality, dissemination, use and transfer of scientific and technological research results. Enterprises of all economic sectors shall have to invest in technological research and renewal in order to raise the quality of their products and/or services as well as their competitiveness. The State shall adopt policies to encourage enterprises of all economic sectors to renew technologies.

2. To renew the mechanism for management and operation of scientific and technological organizations

The renewal of mechanism for management and operation of scientific and technological organizations aims to create favorable conditions for promoting to the utmost the activeness, creativity and raising the operation efficiency of organizations and individuals engaged in scientific and technological activities; to build a number of State-run scientific and technological organizations being up to the advanced level in the region in key domains determined in the strategy on scientific and technological development till 2010; to enhance the research-training-production linkage.

a) To apply the mechanism of autonomy and self-responsibility to State-run scientific and technological organizations conducting basic research, strategy and policy research, key sciences and technologies research and a number of other domains prescribed by the State

Autonomy in scientific and technological activities: The scientific and technological organizations shall have to well perform the State-assigned tasks, and at the same time independently conduct other scientific and technological activities according to law provisions (association, cooperation, signing of contracts for scientific and technological research and services, technological transfer,...).

Financial autonomy: The State ensures operation funding for the performance of State-assigned tasks by mode of providing in package wage fund, operation funding and funding for performance of scientific and technological tasks. These organizations shall enjoy autonomy in using other revenue sources from scientific and technological contracts with organizations and/or individuals of all economic sectors at home and abroad.

Personnel management autonomy: To decentralize and give the personnel autonomy to State-run scientific and technological organizations on the basis of implementing the regime of public servants and labor contracts for science and technology cadres. The personnel management autonomy mechanism is specified in Section 4 "Renewal of management of scientific and technological personnel" below.

International cooperation autonomy: To further decentralize to scientific and technological organizations the sending of science and technology cadres abroad, the hiring of foreign experts to conduct research, training, to provide scientific and technological consultancy or undertake managerial positions in scientific and technological organizations in the domains prescribed by the State.

The State shall assign the heads of scientific and technological organizations to exercise the right to autonomy and to take responsibility for all activities of their organizations.

b) To shift technological application and development research organizations to operate under enterprise mechanism

To shift organizations conducting research into technological application and development and having products associated to market to operate in one of the following forms: scientific and technological enterprises; enterprises; self-financing scientific and technological organizations.

The scientific and technological enterprises shall have the following rights and obligations:

Regarding their functions and tasks:

- To conduct scientific and technological activities, training of scientific and technological personnel under the provisions of the Law on Science and Technology, the Education Law and other relevant law provisions.

- To organize the production of, and trading in, new products, provision of scientific and technological services based on research and development results according to the Enterprise Law, the State Enterprise Law.

Regarding organization:

The scientific and technological enterprises shall be organized in form of companies with different forms of ownership (State, collective, private) or after the model of parent company- affiliate company composed of:

- Research and development units with the function of researching into technological development; receiving, adapting new technologies and organizing the transfer of such technologies to production-business units inside or outside scientific and technological enterprises. The value of invention and the value of the transferred technologies of research and development units shall be calculated into the charter capital upon the establishment of production-business units or joint ventures, associations with domestic and/or foreign organizations and individuals.

- The production-business units shall be organized in form of enterprises of all economic sectors, operating under current law provisions.

The organizational apparatus and managerial mechanism of scientific and technological enterprises shall be determined as compatible with the functions and tasks of enterprises of this type.

Regarding financial and property management:

- The State shall assign the right to use and manage the entire assets to scientific and technological enterprises transformed from technological application and development research organizations according to the current law provisions on assignment of assets to State enterprises.

- The scientific and technological enterprises must deduct at least 2% of their revenues for investment in scientific and technological activities after the generation of their incomes and enjoy preferences as provided for by law. The State shall partially support the wage fund and apparatus operation for three years after the issuance of transformation decisions; partially support fixed and working capital upon the establishment of attached production-business companies and adopt policies of providing support for scientific and technological personnel pending their employment, transfer, re-training, severance, etc.

Regarding the management of personnel and the relations of cooperation, association:

- To enjoy autonomy in signing labor contracts with officials and employees according to the Labor Code, the Science and Technology Law, the State Enterprise Law, the Enterprise Law and relevant law provisions.

- To take initiative in undertaking international scientific, technological, economic and trade cooperation according to law provisions.

Technological application and development research organizations which are transformed into enterprises, self-financing scientific and technological organizations:

Technological application and development research organizations transformed into enterprises shall operate under the State Enterprise Law, the Enterprise Law. Organizations transformed into enterprises shall be assigned assets like scientific and technological enterprises and enjoy tax, charge, fee and other preferences like newly established enterprises.

The self-financing scientific and technological organizations shall operate under the Law on Science and Technology. These transformed organizations shall be assigned all assets, supported in wage fund and operation apparatus by the State after the issuance of transformation decisions. The level and duration of wage fund and operation apparatus support shall be based on the results of evaluation by competent science and technology management agencies of the quality and efficiency of operation of these transformed organizations.

The transformation of technological application and development research organizations into scientific and technological enterprises, enterprises or self-financing scientific and technological organizations must be carried out experimentally step by step with the final review thereof and the drawing of experiences therefrom for wide application.

c) To step up the formation and development of scientific and hi-tech enterprises

Scientific and hi-tech enterprises are scientific and technological enterprises operating in the field of high technologies, meeting the conditions announced periodically by the State.

The State encourages scientific and technological organizations, scientific collectives and scientists to set up, or join enterprises in setting up, scientific and hi-tech enterprises through tax and credit preference policies, establishment of risk investment fund, investment in infrastructure.

The scientific and hi-tech enterprises shall enjoy preferences like hi-tech enterprises in hi-tech parks according to law provisions.

d) To make periodical evaluation of scientific and technological organizations using the State budget funding

The State shall prescribe the regime of self-evaluation and periodical external evaluation of scientific and technological organizations using the State budget funding according to standards compatible with international standards so as to raise the efficiency of using the investment funding.

To study the formation of independent scientific and technological evaluation organizations with functions of studying the evaluating methods and organizing the evaluation of scientific and technological activities and the evaluation of scientific and technological organizations, serving the requirements of raising the quality and efficiency of scientific and technological activities and management and ensuring the objectivity in the evaluation.

e) To promote the function and raise the efficiency of scientific and technological research activities of universities

The State shall increase investment in scientific and technological research for universities: invest in the construction of scientific and technological infrastructure, increase funding for research and development, particularly application-oriented basic research.

To prescribe norms of scientific research and publicized research results for university lecturers, which are commensurate to their respective positions and titles.

To build up the mechanism of association between universities and research and development organizations: To elaborate and implement the regulations on part-time assumption of leading and professional positions applicable to research and development organizations as well as universities, on encouraging researchers of research and development organizations to participate in lecturing, on the joint use of laboratories and equipment in service of research and lecturing.

To step up the association between universities and production establishments as well as enterprises: Universities perform the State's scientific and technological tasks and sign scientific and technological contracts with, transfer research results to, domestic and foreign organizations of all economic sectors according to law provisions.

To formulate mechanism and policies to support technology universities in performing the tasks of technological nursery and enterprise nursery, particularly scientific and technological enterprises, in order to early form small- and medium-sized enterprises applying scientific and technological research results to production and business.

3. To renew mechanism, policies on financial investment in scientific and technological activities

To renew the financial mechanism and policies with a view to increasing the non-State budget financial sources for scientific and technological development; to raise the efficiency of the State's investment in science and technology; to create driving forces for organizations and individuals engaged in scientific and technological activities.

a) To diversify investment capital sources for science and technology

To encourage enterprises to invest in renewal of technologies, renewal of products, to raise their competitiveness:

- To continue perfecting financial mechanisms and policies to encourage enterprises to invest in scientific and technological activities prescribed in the Government's Decree No. 119/1999/ND-CP.

- To encourage enterprises to set up scientific and technological development funds for research and application of research results in service of renewal of technologies and products; the enterprises shall be entitled to fast amortization of assets, equipment and machinery, to borrow capital at preferential interest rates from the national fund for scientific and technological development, the scientific and technological development funds of ministries, provinces and/or centrally-run cities for technological research, application and renewal.

To encourage the setting up of assorted scientific and technological development funds:

To quickly put the national fund for scientific and technological development into operation; to deploy the setting up of scientific and technological development funds of the ministries, provinces, centrally-run cities; to encourage domestic and foreign organizations and individuals to set up scientific and technological development funds, risk investment funds in the scientific and technological domains.

To intensify the exploitation of capital sources from international cooperation for scientific and technological development:

- The State shall create legal bases for scientific and technological organizations to exploit foreign capital sources from international cooperation in various forms: bilateral or multilateral cooperation on research, training; to encourage foreign organizations and individuals to invest in or set up scientific and technological organizations in Vietnam in various forms (cooperation, association between the Vietnamese party and foreign parties; scientific and technological organizations with 100% foreign capital...).

- To prioritize ODA capital sources for investment in development of scientific and technological potentials, particularly in the national key scientific and technological domains such as key research and development organizations, key laboratories, hi-tech parks.

b) To renew the investment policies and mechanism of State budget allocation for scientific and technological activities

State budget shall be concentrated on investment in the key domains determined in the scientific and technological development strategy, in basic research, strategy and policy research and the public-utility domains prescribed by the State. To encourage all economic sectors, particularly the enterprise sector, to increase investment in the domains of technological research, development and renewal.

The State shall concentrate to synchronize investment between infrastructure, equipment and scientific as well as technological personnel training, the building of a number of research and development organizations up to the modern and advanced standards; and at the same time apply special preference regimes (on dwelling houses, working conditions, income, convenient entry and exit procedures,...) in order to attract qualified domestic and foreign experts to work in these organizations.

To reserve necessary funding for the formulation and determination of scientific and technological tasks; the recruitment of organizations and individuals for performance of research subjects, projects; the periodical examination and evaluation of results of scientific and technological activities; the evaluation for pre-acceptance test of research results and support for application of research results to reality in order to ensure the quality and efficiency of scientific and technological activities.

The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Finance and the concerned agencies in, unanimously building the mechanism for allocation of State budget for science and technology and submitting it to the Government for approval.

c) To perfect the mechanism for using financial resources to create motive force for scientific and technological activities

To adjust irrationalities in the financial regime applicable to non-business units with revenues in the scientific and technological domains in the course of implementing the Government’s Decree No. 10/2002/ND-CP. Not to put a cap on the income levels of officials and employees in scientific and technological organizations. To promulgate the mechanism of autonomy and self-responsibility for State-run scientific and technological organizations with low or no revenues.

To apply the mechanism of contracting scientific and technological subjects and projects in some scientific and technological domains on the basis of thorough appraisal of research contents, products and estimated funding for implementation. The payment and settlement of funding for execution of scientific and technological subjects and projects must be based mainly on the results of evaluation of the research product quality; to abolish irrational payment and settlement procedures in the performance of scientific and technological tasks.

To stipulate the deduction of scientific and technological non-business funding for setting up the reward fund so as to satisfactorily reward organizations and individuals having research results widely applied with high socio-economic efficiency.

The State shall set aside a funding to support the registration of invention patents, utility solutions by Vietnamese individuals; and a funding for purchase of technological patents from developed countries.

To increase investment in scientific and technological activities for socio-economic development in mountainous, deep-lying, remote regions as well as areas exposed to exceptionally difficult conditions.

4. To renew the mechanism for scientific and technological personnel management

The renewal of the mechanism for scientific and technological personnel management aims to bring to the fullest play the creativity potentials of the contingent of science and technology workers; to create material and spiritual motive forces, applying the regime of contribution-based remuneration and preferential treatment as well as other incentive policies for science and technology cadres.

a) To increase autonomy in personnel management to scientific and technological organizations

To implement the regime of officialdom and the contract regime under the Ordinance Amending and Supplementing a Number of Articles of the 2003 Ordinance on Officials and Public Servants and Decree No. 116/2003/ND-CP. To promptly adjust irrationalities in the course of implementing this Decree.

To increase powers and responsibility of the heads of scientific and technological organizations in the management of scientific and technological personnel: the rights to recruit, train, arrange, appoint, relieve from duty, dismiss, pay wages, preferentially treat their officials and employees. To implement the mechanism for supervision of the performance of powers and responsibilities of the heads of scientific and technological organizations.

To promulgate the personnel management regime for technological application and development research organizations which are transformed to operate under the mechanism applicable to scientific and technological enterprises, self-financing scientific and technological organizations; the severance insurance regime for science and technology cadres.

b) To formulate mechanisms and policies to create motive force for science and technology workers

To promulgate the policies of honoring and putting talented scientists and technologists in important positions; to employ skillful science and technology workers; to encourage and attract overseas Vietnamese to participate in scientific and technological development in the country. To apply special income levels for officials assuming the prime responsibility for performing scientific and technological tasks of special importance in the fields of national defense, security and socio-economic development. Science and technology workers with professional levels and qualifications being on the par with those of foreign experts, assuming the same working positions in cooperation projects may enjoy the income levels equivalent to the average income level paid by international or foreign organizations to Vietnamese.

To promulgate criteria for and regulations on appointment of science and technology workers to hold scientific and technological posts and adjust the wage regime suitable to the scientific and technological posts.

To promulgate criteria and regime for periodical evaluation of science and technology workers. To raise salaries ahead of schedule for science and technology workers who splendidly fulfill their tasks, record achievements in scientific and technological research and application.

c) To intensify training and re-training of scientific and technological personnel

To put aside a satisfactory portion of funding for training and fostering talents, high-level science and technology cadres, skilled technicians in service of key economic branches and hi-tech domains, meeting the demands of national industrialization and modernization and attracting foreign investment; to periodically re-train science and technology workers in order to update them with new knowledge and skills. To step up the training of science and technology workers in overseas training establishments with advanced scientific and technological levels; to work out mechanisms and policies to efficiently employ science and technology cadres after their training.

To create favorable conditions for and encourage the opening of international or regional universities and research institutes in Vietnam. To attract prestigious foreign research institutes and/or universities to cooperate or open sub-institutes, branches or to organize scientific and technological personnel training programs in Vietnam. To encourage various economic sectors to participate directly in the process of training scientific and technological personnel, particularly the private economic sector and the foreign-invested economic sector.

d) To attract foreign experts to serve the scientific and technological development

To promulgate the policies of attracting talented experts being overseas Vietnamese and foreign experts to come to Vietnam for participation in training of researchers, to lecture, provide consultancy, to hold posts of management of scientific and technological research.

5. To develop the technology market

a) To associate the renewal of mechanism and socio-economic policies with the promotion of scientific and technological progress and the application of scientific and technological achievements to production and daily life.

To formulate programs on association between science and technology with training, production as well as business in order to support enterprises in raising their managerial capabilities, to modernize and renew technologies, to raise capability for competition and international economic integration.

To gather scientists' criticism of undertakings, policies, investment projects, socio-economic development programs. To formulate the mechanism for integrating scientific and technological tasks with investment projects, socio-economic development programs.

To vigorously reform State enterprises along the direction of stepping up the equitization, not applying the measures of debt freezing, debt rescheduling for enterprises. To create a fair competition environment with a view to stimulating enterprises to attach importance to production and business efficiency and considering efficiency when selecting technologies. To promulgate policies on monopoly control, dissolution and bankruptcy of enterprises while accelerating the process of active international integration in order to create pressure to bear upon enterprises to apply scientific and technological achievements, renew products.

b) To raise the quality and commercialization of scientific and technological products

To reserve a satisfactory portion of State budget funding for supporting the perfection of research products which can be commercialized. To formulate mechanism for post-acceptance evaluation and mechanism on funding support for perfection and commercialization of research products.

To form organizations for consultancy and expertise of technological quality and prices before such technologies are transferred or sold to industrial production establishments.

c) To develop technological intermediate, brokerage organizations

To develop technological brokerage and/or technology transfer consultancy organizations, technology market information-supplying organizations; to form technology market promotion organizations; to organize technology-equipment markets.

To encourage all economic sectors to participate in dealing in technology market brokerage services.

d) To perfect and raise the effect of legislation on intellectual property and technology transfer

To perfect the system of legislation on the technology market. To revise, supplement, amend and perfect current legal documents on intellectual property and technology transfer. To early promulgate two specialized laws on intellectual property and technology transfer.

To clearly prescribe the mechanism of encouraging the transfer of State budget-funded research results along the direction of assigning the use right to the research-conducting organizations for a reasonable period of time for exploitation and commercialization of research results. To clearly define the use duration, obligations and interests of organizations and/or individuals given the use right, particularly when the research results have great social and economic value. After the prescribed duration, if the research results are neither applied to reality nor commercialized, the science and technology State management agencies may use them in form of commodity or public service.

To institutionalize the contribution of capital with copyright over research results or other forms of intellectual property to enterprises by organizations and individuals engaged in scientific and technological activities.

The science and technology management bodies shall support Vietnamese organizations and individuals in the procedures and fees for registration of inventions, utility solutions for scientific and technological research results in the country and protection overseas; set up consultancy offices to provide support on registration and enforcement of intellectual property right at scientific and technological organizations capable of scientific research and technological development.

To propagate and widely disseminate the legislation on intellectual property to organizations and individuals engaged in scientific and technological activities as well as among population. To prescribe the effective penalty bracket in order to prevent and strictly handle acts of infringing upon the intellectual property rights.

6. To perfect the operation mechanism of the science and technology State management apparatus

To conduct the administrative reform within the science and technology State management agencies along the direction of concentrating on the State management tasks, separating the non-business tasks from the administrative agencies, enhancing the supervision and examination functions. To step up training and fostering to raise the qualifications and capability of the contingent of personnel performing the State management over science and technology.

To intensify the Government's coordination so as to create the cohesion of scientific and technological activities with economic, social, defense and security activities. To clearly assign and decentralize tasks, powers and responsibilities for science and technology management among ministries, ministerial-level agencies, Government-attached agencies, provincial/municipal People's Committees.

To clearly define the functions and tasks of the science and technology State management agencies:

a) The Government: To adopt the scientific and technological development strategies, priority orientations for scientific and technological development in each period, define key scientific and technological tasks of the State; to promulgate legal documents on science and technology according to its competence; to submit to the National Assembly for approval the annual State budgets reserved for science and technology.

b) The Ministry of Science and Technology: To assume the prime responsibility for, and coordinate with ministries, branches and localities in, formulating strategies, mechanisms and policies to boost scientific and technological development for submission to the Government; to sum up and supply information on scientific and technological development orientations and trends in the world and Vietnam to the ministries, branches and localities; to balance and distribute State budget reserved for scientific and technological activities; to manage key national scientific and technological tasks and apply research results to reality; to organize the evaluation of the scientific and technological potentials and levels of the country; to inspect, examine and supervise scientific and technological activities.

c) The Ministry of Planning and Investment: To guide ministries, ministerial-level agencies, Government-attached agencies, provincial/municipal People's Committees in making their respective scientific and technological development plans a content of their periodical socio-economic development plans; to forecast and include investment resources for scientific and technological development in socio-economic development plans, including ODA sources and other mobilized sources than the State's sources; to balance the total investment for capital construction from the State budget for scientific and technological development; to coordinate with the Ministry of Science and Technology in allocating capital for capital construction projects in the scientific and technological domain.

d) The Finance Ministry: To be responsible for balancing the State budget for science and technology in the total State budget estimate; to ensure adequate and timely allocation of the approved State budget investment in science and technology; to assume the prime responsibility for, or participate in, formulating specific financial mechanisms and policies for scientific and technological activities.

e) The Ministry of Education and Training: To assume the prime responsibility for, and coordinate with the Ministry of Science and Technology in, working out and submitting to the Government for decision plans, mechanisms and policies on training and fostering of scientific and technological personnel and intensifying the research work in universities.

f) The Ministry of Home Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Science and Technology in, formulating and submitting to the Government for promulgation the mechanisms and policies related to scientific and technological personnel and the system of scientific and technological organizations.

g) The ministries, ministerial-level agencies, Government-attached agencies: To be responsible for the State management over science and technology in the branches or domains assigned to their charge; to formulate and organize the performance of scientific and technological tasks in service of development of their branches, domains.

h) The provincial/municipal People's Committees: To be responsible for the State management over science and technology in their respective localities; to concretize and apply mechanisms, policies and orientations for scientific and technological development of the country to the specific situation of their respective localities in order to step up scientific and technological research and application in service of socio-economic development.

i) The ministers, the heads of ministerial-level agencies, the heads of Government-attached agencies, the presidents of the provincial/municipal People's Committees shall be answerable for the investment efficiency and scientific and technological activities within their assigned and decentralized scope.

IV. IMPLEMENTATION ORGANIZATION

1. The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with ministries, ministerial-level agencies, Government-attached agencies and provincial/municipal People's Committees in, organizing the implementation of the scheme on renewal of science and technology management mechanism, and report once a year thereon to the Prime Minister.

a) The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the ministries, branches, localities and the concerned agencies in, drafting:

- The scheme on development of technology market (to be submitted to the Prime Minister by the end of 2004).

- The Prime Minister's decision promulgating the Regulation on evaluation of scientific and technological tasks, scientific and technological organizations (to be submitted to the Prime Minister in the first quarter of 2005).

- The Government's decree on renewal of science and technology planning (to be submitted to the Government in the second quarter of 2005).

- The scheme on transformation of technological application and development research organizations to operate under the enterprise mechanism (to be submitted to the Prime Minister in the second quarter of 2005).

- The scheme on development of technological intermediate and brokerage organizations, technology-equipment market, the technology trading floors at the local level and on the national scale (to be submitted to the Prime Minister in the third quarter of 2005).

b) The Ministry of Home Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Science and Technology in, drafting:

- The Government's decree on autonomy and self-responsibility mechanism for public scientific and technological organizations (to be submitted to the Government in the fourth quarter of 2004).

- The scheme on policies of commending and rewarding, preferentially treating, honoring and putting in important positions scientific and technological talents (for submission to the Prime Minister in the first quarter of 2005).

- The scheme on policies to attract talented experts being overseas Vietnamese or foreigners in service of scientific and technological development in Vietnam (for submission to the Prime Minister in the second quarter of 2005).

c) The Finance Ministry shall assume the prime responsibility for, and coordinate with the Ministry of Science and Technology in, drafting:

- The joint circular on application of mechanism of contracting financial expenditures for State budget-funded scientific and technological tasks (in the second quarter of 2005).

- The scheme on setting up the risk investment funds in support of technological nursery, scientific and hi-tech enterprise nursery (for submission to the Prime Minister in the third quarter of 2005).

d) The Ministry of Justice shall assume the prime responsibility for, and coordinate with the Ministry of Science and Technology and concerned branches in, revising legal documents on science and technology in order to propose appropriate supplements, amendments or cancellations to conform with the contents of the scheme on renewal of science and technology management mechanism (for submission to the Prime Minister in the first quarter of 2005).

e) The ministries, ministerial-level agencies, Government-attached agencies, provincial/municipal People's Committees shall assume the prime responsibility for, and coordinate with the Ministry of Science and Technology in:

- Formulating programs on associating science and technology with training, production and business in order to support enterprises in raising their managerial capabilities, to modernize and renew their technologies, raise their capabilities for competition and international economic integration (for submission to the Prime Minister in the fourth quarter of 2004).

- Classifying, drawing up lists of, and plans with specific roadmaps to transform, their attached technological application and development research organizations to operate under the enterprise mechanism; the Ministry of Science and Technology shall sum up and report thereon to the Prime Minister (in the fourth quarter of 2004).

3. From 2006 to 2010:

To implement the above-mentioned legal documents and schemes; by 2007, to organize preliminary review of the situation, drawing experiences and proposing orientations for renewal of the science and technology management mechanism in the subsequent years; by 2010, to organize the final review of the implementation of the scheme on renewal of science and technology management mechanism.

4. The funding for implementation of the scheme on renewal of science and technology management mechanism shall come from the science and technology non-business budget and other sources. Annually, the Ministry of Science and Technology, the Finance Ministry, the Ministry of Planning and Investment shall reach agreement on balancing funding from science and technology non-business budget for the implementation of the scheme.

Prime Minister
PHAN VAN KHAI