| THE MINISTRY OF FINANCE THE MINISTRY OF SCIENCE AND TECHNOLOGY ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No. 129/2007/TTLT/BTC-BKHCN | Hanoi, November 2, 2007 |
JOINT CIRCULAR
GUIDING THE IMPLEMENTATION OF FINANCIAL MANAGEMENT REGULATIONS APPLICABLE TO THE NATIONAL SCIENTIFIC AND TECHNOLOGICAL DEVELOPMENT FUND
Pursuant to the Organization and Operation Charter of the National Scientific and Technological Development Fund, which was promulgated together with the Governments Decree No. 122/2003/ND-CP of October 22, 2003, the Ministry of Finance and the Ministry of Science and Technology jointly guide financial management regulations applicable to the National Scientific and Technological Development Fund (below referred to as the Fund for short) as follows:
I. GENERAL PROVISIONS
1. This Circular guides the implementation of financial management regulations applicable to the National Scientific and Technological Development Fund.
2. The National Scientific and Technological Development Fund operates not for profits to provide wholly or partially non-refundable financial supports or interest-free or soft loans for scientific and technological tasks performed by organizations and individuals.
3. The Fund is an independent accounting unit having the legal entity status, its own seal and accounts, and is placed under the Ministry of Science and Technology. The Fund shall fulfill the tax obligation and enjoys tax relief for its financial activities in the domain of scientific and technological development according to the provisions of tax laws and current relevant legal documents.
4. The Funds operating fund consists of state budget allocations, voluntary contributions and donations of domestic and foreign organizations and individuals, international organizations, loan interests and other sources.
5. The Fund may open accounts at the State Treasury and commercial banks under regulations.
6. The Fund observes accounting regulations under the Accounting Law and relevant guiding documents.
7. The Funds Management Board and Director are answerable to the Minister of Science and Technology for the management and use of its capital and assets for proper purposes, with efficiency and in compliance with its organization and operation charter and the States current regulations.
8. The Ministry of Science and Technology performs the state management of the Funds operation, is responsible for guiding, inspecting, considering and approving the Funds state budget estimates and settlements and annual financial revenues and expenditures, and incorporating them in the Ministry of Science and Technologys annual settlement reports under current regulations.
9. The Fund is subject to the supervision, inspection and audit by competent state agencies in accordance with law.
II. REGULATIONS ON CAPITAL MANAGEMENT
1. The Funds operating fund consists:
1.1. The Fund has an initial capital of VND 200 billion allocated from the non-business scientific budget in the year of its establishment. Annually, the Fund gets additional allocations according to its budget estimates approved by a competent authority in accordance with the State Budget Law to ensure that the Funds operating fund allocated from the state budget is always at least VND 200 billion.
1.2. The Fund may raise capital from non-budgetary sources:
- Voluntary contributions and donations of domestic and foreign organizations and individuals, and international organizations;
- Interests of loans provided for projects on application of scientific research and technological development achievements.
1.3. The Fund may mobilize preferential capital sources of domestic and foreign financial institutions and banks for providing preferential loans for scientific and technological tasks, projects and programs.
1.4. Capital entrusted by domestic and foreign organizations and individuals under entrustment contracts.
1.5. Recovered financial supports and loans upon expiration of their terms.
1.6. Other capital sources.
2. The Funds capital shall be used to finance and provide loans to eligible entities-defined in this Circular and the Ministry of Science and Technologys regulations on consideration, selection and assessment of scientific and technological tasks, projects and programs eligible for the Funds financial supports or loans; and to finance the management of the Funds operation.
3. Annually, the Fund shall balance its capital sources and capital needs and incorporate capital sources in plans.
- The Fund shall take the initiative in mobilizing and receiving non-budgetary capital sources and other sources under its regulations and the Stales relevant regulations.
- The Fund shall balance its budget allocation sources and needs and incorporate them in the state budget estimates of the Ministry of Science and Technology.
4. The Fund shall open a State Treasury account under the Ministry of Finances regulations for withdrawal of budget allocations and transaction accounts at commercial banks under regulations.
5. The Fund may carry forward the balance of state allocations in a fiscal year to the subsequent year.
6.Levels of and entities eligible for state budget allocations comply with current regulations on stale budget expenditures.
7. The Funds operating fund and assets must be used for proper purposes and with efficiency according to its financing modes. For any loss of the Funds capital and assets, investigation must be conducted to identify its causes and handling measures under regulations.
8. The Ministry of Finance shall incorporate annual state budget allocations for the Fund in its state budget estimates and provide these allocations to the Fund under the State Budget Law and relevant guiding documents.
Annual state budget allocations for the Fund shall be accounted in Item 153 Supports for funds. Sub-item 08 Allocations for the Scientific and Technological Development Fund in the state budget index.
The Fund shall make and submit financial statements to the Ministry of Science and Technology for examination and approval under current regulations.
III. REGULATIONS ON FINANCIAL-MANAGEMENT OF THE FUNDS PROFESSIONAL OPERATIONS
The Funds professional operations include financing and provision of loans for the performance of scientific and technological tasks.
1. Financing
1.1. Entities eligible for financial supports:
1.1.1. Wholly or partially non-refundable financial supports for the performance of scientific and technological tasks upon proposals of organizations and individuals, including:
a/ Basic researches in scientific domains, which are eligible for non-refundable financial supports for 100% of scientific research funds of tasks, projects or programs;
b/ Newly arising scientific and technological tasks of scientific and practical significance; prospective and risky scientific and technological tasks, which are eligible for wholly non-refundable financial supports for up to 100% of scientific research funds of tasks, projects or programs;
Financial supports specified at Points a and b of this Item 1.1.1 also cover expenditures for inbound and outbound delegations, consultants, conferences and symposiums at home or abroad.
c/ Non-refundable financial supports for up to 90% of the value of imported technologies associated with the mastery in research and manufacture of a number of technologies which cannot be domestically created yet, and are of socio-economic significance and encouraged by the State to be transferred. In special cases in which some state organizations cannot afford to import technologies important for scientific research for the purpose of mastering modern technologies, the Funds Management Board may consider and decide on a financial support level higher than 90%, provided that efficiency and thrift are ensured.
d/ Financial supports for up to 100% of expenses for publishing scientific works that are the outcomes of basic research projects or programs as well as tasks eligible for the Funds financial supports (specified at Points a and b of this Section 1.1.1). Financial supports for up to 50% of expenses for publishing scientific works that are the outcomes of other projects or programs eligible for the Funds financial supports.
e/ Financial supports for up to 100% of expenses for publishing scientific works eligible for the Funds financial supports on prestigious international scientific journals.
f/ Financial supports for up to 100% of reasonable expenses directly related to the registration of intellectual property rights to inventions, semi-conductor integrated circuit layout designs or plant varieties that are the outcomes of scientific projects or programs eligible for the States financial supports or invested by Vietnamese individuals.
g/ Financial supports for research scholarships in key national scientific and technological domains specified in the Strategy for Scientific and Technological Development and other state documents. Financial supports for young scientists (aged 35 or under) to participate in and present their reports at international scientific seminars.
1.1.2. Financial supports for part of trial production projects not incorporated in the States scientific and technological development plans, and for scientific and technological tasks in the States priority scientific and technological directions and performed by enterprises comply with current regulations.
1.2. Financing principles:
a/ Based on current legal provisions and the Ministry of Science and Technologys regulations, the Funds Management Board shall promulgate specific regulations on criteria for consideration selection and appraisal of tasks, projects and programs eligible for the Funds financial supports and specify the financial support level and recovery rate for each type of task, project or program under its competence, or submit them to a competent authority for approval and implementation.
b/ Based on regulations of the Funds Management Board, the Funds Executive Office shall set up scientific and technological councils to consider and select tasks, projects and programs eligible for financial supports and decide on the financial support level and recovery rate for each specific task, project or program under its competence or submit them to a competent authority for approval. The selection shall be conducted in a public, democratic and equal manner and in compliance with regulations.
c/ In the course of implementation, the Funds Management Board may adjust financial support levels to suit practical conditions and ensure the efficiency of financed projects, and are responsible for its decisions.
d/ Financial supports must be provided to eligible entities, used for proper purposes and disbursed according to the implementation progress of projects. Research contents of scientific and technological tasks financed by the Fund must not be identical to researches already or currently funded with the Funds capital or other state capital sources.
e/ The Fund shall provide financial supports for the performance of scientific and technological tasks not involved in scientific and technological programs or projects incorporated in the Stales plans.
f/ The duration of recovery of funds of financed projects subject to fund recovery must comply with current regulations.
1.3. Elaboration of financing plans
a/ Annually, based on capital plans and financing needs of entities, the Funds Executive Office shall elaborate a financing plan under regulations.
b/ Annual financing plans must be approved by the Funds Management Board and reported to the Ministry of Science and Technology under regulations.
2. Provision of loans
2.1. Entities eligible for loans:
a/ Interest-free loans are provided for projects on application of domestic research and development results.
b/ Soft loans are provided for projects on technological renewal, with special importance attached to high technologies, clean technologies and technologies that create highly competitive products.
The Funds Management Board shall set criteria for determining projects eligible for interest-free loans or soft loans specified at this Point after reaching agreement with the Ministry of Science and Technology and the Ministry of Finance
2.2. Lending principles:
a/ Loans must be provided to eligible entities and in compliance with the States current regulations and the Funds regulations.
b/ Tasks, schemes, projects or programs wishing to borrow capital from the Fund must be considered and selected by scientific and technological councils in a public, democratic and equal manner.
c/ The Fund shall provide loans for scientific and technological tasks, projects and programs, which are not incorporated in the States plans, of national, inter-branch or inter-regional significance and proposed by organizations and individuals of all economic sectors.
2.3. Total outstanding loans from state budget allocations must not exceed 20% of the total balance of state budget allocations for the Fund.
3. Entrustment operations:
3.1. The Fund may receive capital entrusted by domestic and foreign organizations and individuals to finance or provide loans for tasks, projects and programs under entrustment contracts.
3.2. Entrusted capital sources, financial supports and loans provided under entrustment contracts must be separately monitored and managed. Upon the expiration of the entrustment duration, the Fund shall recover financial supports and loans under entrustment and settle entrusted capital sources with entrusting panics under entrustment contracts.
4. Responsibilities of organizations and agencies for performance of financing or lending contracts
4.1. Responsibilities of the Funds Management Board:
a/ To decide on the Funds financing or lending modes.
b/ To set criteria for assessment and selection of projects eligible for the Funds financial supports or loans.
c/ To specify the Funds financing level suitable to each type of scientific research task, project or program.
d/ To set an interest rate as a basis for the Funds Executive Office to provide loans in each period and suitable to each type of task, project or program, ensuring that its lending interest rate is lower than that of commercial loans and equal to that of the States preferential credit loans for investment in the same period;
e/ To promulgate specific regulations on performance of financing or lending contracts as a basis for handling of related violations, and be answerable to the State for handling of breaches of financing or lending contracts, and report the handling to the Ministry of Science and Technology.
f/ To supervise arid inspect the Funds Executive Offices observance of the States regulations and its regulations.
4.2. Responsibilities of the Funds Executive Office:
a/ To organize meetings of scientific and technological councils to assess and select projects, then decide on financing or provision of loans as well as the lending term for each project under regulations.
b/ To set the lending term for each project, which must not exceed 36 months. In special cases, the lending term may exceed 36 months but must be submitted by the Funds Executive Office to the Funds Management Board for consideration and decision.
c/ Based on the States current regulations and the Funds Management Boards regulations, to sign financing or lending contracts with proper eligible entities.
d/ To monitor and recover loan principals and interests upon the expiration of lending terms stated in signed lending contracts.
Click Download to see full text
