Circular No. 03/2015/TT-BKHCN Issuing the Model Charter on the organization and operation of Science and Technology Development Funds of Ministries, ministerial-level agencies, government agencies, provinces, and centrally governed cities.

CIRCULAR

Issued 3. Amend Clause 3 Article 2 as follows:Articles on the organization and operation of Article 24Science Development Fund

and Information Technology of B||| ministries and ministerial-level agencies BMinistry, agency equivalent to CGovernment, province,

centrally governed cityTshakingg

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Pursuant to the Law on Science and Technology dated June 18, 2013;

Pursuant to Decree No. 20/2013/NĐ-CP dated February 26, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

Pursuant to Decree No. 95/2014/NĐ-CP dated October 17, 2014 of the Government on investment and financial mechanisms for scientific and technological activities;

At the proposal of the Director of the Finance Department and the Director of the Legal Department,

The Minister of Science and Technology issues this Circular on the Model Charter for the organization and operation of the Science and Technology Development Fund of Ministries, agencies equivalent to Ministries, agencies under the Government, provinces, and centrally governed cities (hereinafter referred to as the Fund).

Article 1. Attached to this Circular is the Model Charter for the organization and operation of the Science and Technology Development Fund of Ministries, agencies equivalent to Ministries, agencies under the Government, provinces, and centrally governed cities (hereinafter referred to as the Fund).

Article 2. This Circular takes effect from April 23, 2015.

For Ministries and provinces that have established the Fund and issued the Charter for the organization and operation of the Fund before the effective date of this Circular, within six months from the effective date of this Circular, the Ministers, Heads of agencies equivalent to Ministries, Heads of agencies under the Government, Chairmen of People's Committees of provinces, and centrally governed cities shall adjust and supplement the existing Charters of the Funds in accordance with the provisions of the Model Charter attached to this Circular.

Ministries, agencies equivalent to Ministries, agencies under the Government, People's Committees of provinces, and centrally governed cities shall be responsible for submitting to the Ministry of Science and Technology the Charters for the organization and operation of the Funds within fifteen working days from the date of issuing new decisions or decisions adjusting the Charters.

Article 3. Ministers, Heads of agencies equivalent to Ministries, Heads of agencies under the Government, Chairmen of People's Committees of provinces, and centrally governed cities shall be responsible for issuing guiding documents for the operational activities of the Funds.

Article 4. During the implementation process, if there are difficulties, the relevant agencies, organizations, and individuals are requested to promptly reflect them to the Ministry of Science and Technology for clarification or consideration for amendment and supplementation./.

 

MODEL CHARTER

On the organization and operation of the Science and Technology Development Fund

of Ministries, agencies equivalent to Ministries, agencies under the Government, provinces,

centrally governed cityg

(Issued together with Circular No. 03/2015/TT-BKHCN dated March 9, 2015 of the Ministry of Science and Technology)

PART I

GENERAL PROVISIONS

Article 1. Legal Status

1. The Science and Technology Development Fund of Ministries, agencies equivalent to Ministries, agencies under the Government (hereinafter referred to as the Ministry), provinces, and centrally governed cities (hereinafter referred to as the province) is a non-profit public service unit, with the function of receiving, managing, and utilizing state budget funds and other sources of funds from domestic and foreign organizations and individuals. The Science and Technology Development Fund of Ministries, agencies equivalent to Ministries, agencies under the Government, provinces, and centrally governed cities (hereinafter referred to as the Fund) has legal personality, registered capital, its own seal, and is entitled to open deposit accounts at State Treasury and commercial banks operating legally in Vietnam.

2. Registered Capital of the Fund: The scale of the registered capital of the Fund is determined based on the needs and operational capacity of the Fund and the budget balance capacity of the Ministry (or province). The Ministry (or province) decides to change the scale of the registered capital of the Fund based on the effectiveness of the Fund's operations.

3. The name of the Fund includes: full name; abbreviated name; international trading name.

4. The legal representative of the Fund is the Director of the Fund.

Article 2. Nature and Purpose of Activities

1. The Fund operates with the purpose of providing financial support, funding, loans, guaranteeing loan capital, and enhancing national scientific and technological capacity.

2. The activities of the Fund aim to support and promote the development of science and technology to serve the economic and social development of the ministry or province.

Article 3. Sources of Operating Capital for the Fund

The operating capital of the Fund is formed from the following sources:

1. Capital provided by the state budget:

a) The charter capital of the Fund is provided once from the state budget allocated for the scientific and technological affairs of the ministry (or province) to implement activities such as financial support, loans, guaranteeing loan capital, and enhancing scientific and technological capacity;

b) The annual scientific and technological affairs budget allocated through the Fund for national-level scientific and technological tasks managed by the ministry (or province), scientific and technological tasks at the ministry level (or provincial level) directly managed by the ministry (or province), and the operational expenses of the Fund;

c) Other budgetary sources.

2. Other sources of capital:

a) Income from the results of the Fund's operations, profit-sharing from the use, transfer, or contribution of research results funded by the state budget, and other lawful income (if any);

b) Entrusted funds from science and technology development funds of ministries, provinces;

c) Funding transferred from the science and technology development fund of state-owned enterprises directly managed by the ministry (or province);

d) Voluntary transferred funding or entrusted funds from the science and technology development fund of non-state-owned enterprises;

e) Voluntary contributions, sponsorships, supports, donations, and entrusted funds from organizations, businesses, individuals both domestically and internationally, and other supplementary capital sources as prescribed by law.

Article 4. Principles of Organizational Operation of the Fund

1. The management and operation structure of the Fund includes the Fund Management Board, the Supervisory Board, and the Fund Executive Agency.

2. Scientific and technological tasks proposed for financial support, loans, guaranteeing loan capital, and enhancing scientific and technological capacity are selected openly, democratically, and equally.

3. The Fund operates under a financial mechanism applicable to public institutions with revenue, partially guaranteed by the state budget for regular operational expenses, independent accounting, and not for profit purposes; according to the Charter approved by the competent state agency and other relevant legal provisions.

4. The Fund implements all income and expenditure transparently, in accordance with the purpose for scientific and technological activities as stipulated by law.

Article 5. Recipients of Funding, Sponsorship, Loans, Support, and Loan Guarantees from the Fund

1. Recipients of funding:

a) National-level scientific and technological tasks assigned to the ministry (or province) for direct management;

b) Scientific and technological tasks at the ministry level (or provincial level).

2. Recipients of sponsorship: certain grassroots-level scientific and technological tasks proposed by organizations or individuals to serve the economic and social development of the ministry (or province).

3. Recipients of loans: projects applying research results into production and daily life to serve the economic and social development of the ministry (or province) as required by the Minister, Heads of Ministries equivalent to Ministries, Heads of Government Agencies directly under the Government (hereinafter referred to as the Minister), Chairmen of Provincial People's Committees (hereinafter referred to as the Chairman of the Provincial People's Committee).

4. Recipients of support: activities enhancing scientific and technological capacity within the scope of the ministry (or province), talented young scientists not belonging to public scientific and technological organizations.

5. Recipients of loan guarantees: scientific and technological tasks assigned by the Minister (or Chairman of the Provincial People's Committee).

Article 6. Conditions for registering sponsorship, loans, support, and loan guarantees

1. Organizations and individuals proposing scientific and technological tasks must have sufficient professional capacity and material and technical conditions suitable for each type of scientific and technological task. The organization proposing scientific and technological tasks must be a scientific and technological organization or a science and technology business.

2. Organizations and individuals proposing to borrow funds from the Fund or receiving loan guarantees from the Fund must comply with the regulations of the Fund and relevant laws.

3. Organizations and individuals registering for support to enhance scientific research and technological capabilities must have expertise appropriate to the type of support requested.

4. Scientific and technological tasks registered for sponsorship and loans may not overlap with those already being or have been implemented using state budget funds.

Chapter II

TASKS, LIMITATIONS, ORGANIZATIONAL STRUCTURE, AND OPERATIONS OF THE FUND

Article 7. Tasks and powers of the Fund

1. Receiving and accepting agency for state, organizational, and individual sources of capital; mobilizing voluntary contributions from domestic and foreign organizations and individuals; managing and using the Fund's resources for their intended purposes effectively.

2. Organizing the provision of funding, sponsorship, loans, support, and loan guarantees for the implementation of scientific and technological tasks.

3. Developing and submitting to the Minister (or Chairman of the Provincial People's Committee) for approval the medium- and long-term activity plans of the Fund.

4. Announcing priority directions, contents, requirements, and specific formats for proposing scientific and technological tasks and activities to enhance capacity suitable for the Fund's sponsorship, loans, support, and loan guarantees.

5. Organizing the review and assessment of funding for scientific and technological tasks and activities to enhance capacity for the Fund's sponsorship, loans, support, and loan guarantees.

6. Inspecting and evaluating the professional content and financial situation of scientific and technological tasks and activities to enhance capacity funded, loaned, supported, and guaranteed by the Fund. Financial inspection of scientific and technological tasks funded by the Fund.

7. Organizing the evaluation and acceptance of results of scientific and technological tasks sponsored by the Fund. Evaluating the results of tasks and activities to enhance capacity funded, guaranteed, and supported by the Fund.

8. Suspending or requesting competent authorities to suspend the provision of funding, sponsorship, loans, support, and loan guarantees, or recovering previously provided funding, sponsorship, loans, and support when discovering violations of the Fund's capital usage regulations and related laws by organizations and individuals implementing scientific and technological tasks and activities to enhance capacity.

9. Managing and utilizing state assets assigned and other resources according to the Fund's Charter and relevant laws.

10. Managing the organization and labor of the Fund in accordance with the law.

11. Issuing operational regulations and other provisions serving the Fund's operations.

12. Implementing regular and ad hoc reporting systems to management agencies as prescribed.

13. Resolving complaints, accusations, and recommendations related to the Fund's operations in accordance with the law.

14. Adhering to the Fund's organizational and operational charter regulations and other relevant legal provisions.

15. Cooperating with domestic and foreign organizations and individuals to solicit funding for the Fund or entrust the Fund to sponsor, lend for the implementation of scientific and technological projects according to the law.

Article 8. Management Board of the Fund

1. The Management Board of the Fund shall be established by the Minister (or the Chairman of the Provincial People's Committee) based on the proposal of the state management agency for science and technology or the advisory unit of the ministry (or province) responsible for state management of science and technology.

2. The Management Board of the Fund consists of five or seven members, including the Chairperson, Vice-Chairperson, and other members who are managers, scientists, working on a full-time or part-time basis. Based on the scale, nature, and actual conditions of the Fund's operations, the Minister (or the Chairman of the Provincial People's Committee) decides the specific number of Management Board members.

a) The appointment and removal of the positions of Chairperson, Vice-Chairperson, and members of the Management Board of the Fund shall be decided by the Minister (or the Chairman of the Provincial People's Committee).

b) The Chairperson of the Management Board of the Fund at ministries shall be concurrently held by a Ministry Leader. The Chairperson of the Management Board of the Fund at provinces shall be concurrently held by a Provincial Leader or the Director of the Provincial Department of Science and Technology.

c) The term of office of the Management Board of the Fund is five years, and its members may not serve more than two consecutive terms. In cases where the new Management Board has not been appointed at the end of the term, the current Management Board continues to perform its duties until the new Management Board is appointed and assumes its responsibilities.

3. Members of the Management Board of the Fund shall be relieved of their positions in the following circumstances:

a) Being convicted by a court judgment or decision that has become legally binding;

b) Not having sufficient capacity or qualifications to undertake assigned tasks, losing or being restricted in civil capacity;

c) Not being honest when performing duties or using positions and powers for personal gain or the benefit of others;

d) Violating laws or this Charter.

4. Members of the Management Board shall be replaced in the following circumstances:

a) Resigning from their position;

b) Not ensuring health to undertake work;

c) Being relieved of their position according to Clause 3 of this Article;

d) Transferring jobs or being reassigned to other work.

5. Duties and powers of the Management Board of the Fund:

a) Deciding the direction and plan of activities of the Fund based on priority development directions for science and technology of the ministry (or province);

b) Approving the annual activity plan and financial plan of the Fund upon the proposal of the Fund Director;

c) Submitting to the Minister (or the Chairman of the Provincial People's Committee) for the appointment or removal of the Fund Director, Deputy Director, and Chief Accountant of the Fund;

d) Issuing regulations concerning the operation of the Fund's Administrative Agency, Supervisory Board, and Science and Technology Council; submitting to the Minister (or the Chairman of the Provincial People's Committee) for issuance of regulations concerning the operational business of the Fund;

đ) Supervising and inspecting the activities of the Fund's Administrative Agency and Supervisory Board in implementing state regulations, the Charter on organization and operation of the Fund, and resolutions of the Management Board of the Fund;

e) Approving the activity plan of the Supervisory Board, reports on inspection results, and audit settlement financial reports of the Fund's Supervisory Board;

g) Establishing a Science and Technology Council to provide professional advice to the Fund;

h) Deciding on funding, loans, support, and guarantees for loan capital in accordance with the provisions of this Charter;

i) Recommending the Minister (or the Chairman of the Provincial People's Committee) to amend and supplement the Charter on organization and operation of the Fund;

k) The Management Board of the Fund uses the Fund's organizational structure and seal in performing its duties and powers according to the Charter on organization and operation of the Fund;

l) Performing other rights and obligations as prescribed by law.

6. Working regime of the Management Board of the Fund:

a) The Management Board of the Fund operates under a collective system; it convenes once every three months to consider and decide issues within its duties and powers; it convenes extraordinary meetings to address urgent matters proposed by the Chairperson of the Management Board, the Fund Director, the Head of the Supervisory Board, or when at least two-thirds of the Management Board members propose;

b) For issues requiring decisions between meetings, the Fund's Administrative Agency sends documents and ballots to each member of the Management Board;

c) Meetings of the Management Board of the Fund are considered valid if at least two-thirds of the members are present and must be chaired by the Chairperson of the Management Board or the Vice-Chairperson authorized by the Chairperson. The Management Board decides issues based on the majority of the total number of Management Board members. In case of equal votes among members, the final decision belongs to the opinion of the Chairperson of the Management Board. The content and conclusions of the Management Board meeting must be recorded in minutes and sent to all members of the Management Board.

7. Operating costs of the Management Board of the Fund are included in the Fund's management operating expenses.

Article 9. Fund Supervisory Board

1. Organization of the Fund Supervisory Board:

a) The Supervisory Board operates on a part-time or full-time basis, consisting of three members. Members of the Supervisory Board are experts knowledgeable in financial, credit, investment, science and technology, and legal fields, with no prior criminal record related to economic activities as stipulated by law. The term of office for the Fund Supervisory Board is five years;

b) Members of the Supervisory Board include the Chairperson, Deputy Chairperson, and one member appointed and relieved of duty by the Fund Management Council;

c) Members of the Supervisory Board shall not be spouses, parents, children, or full siblings of members of the Fund Management Council, the Fund Director, Deputy Director, and Chief Accountant of the Fund.

2. Duties and powers of the Fund Supervisory Board:

a) Assist the Fund Management Council in supervising the operations of the Fund's management body;

b) Examine and report to the Fund Management Council on whether the management body complies with state policies, laws, and the Fund's charter and resolutions of the Fund Management Council;

c) Examine financial activities, oversee compliance with accounting systems, monitor internal audit and control systems, and review the annual financial reports of the Fund. Regularly monthly, quarterly, annually, and ad hoc, the Supervisory Board is responsible for reporting in writing to the Fund Management Council the results of its examination and supervision of the Fund's financial activities;

d) Conduct work independently according to a program approved by the Fund Management Council; have the right to use independent consultants to perform assigned tasks; may use the Fund's internal audit and control system;

đ) Review and submit to the Fund Management Council for resolution complaints and accusations from organizations and individuals related to the Fund's activities;

e) Other duties and powers as assigned by the Fund Management Council.

3. The Chairperson of the Fund Supervisory Board or a member of the Fund Supervisory Board authorized by the Chairperson has the right to attend meetings of the Fund Management Council, express opinions on matters discussed by the Fund Management Council, but does not have the right to vote.

4. The Fund Supervisory Board operates under regulations issued by the Fund Management Council. Members of the Fund Supervisory Board carry out their assigned tasks independently and are personally responsible to the Chairperson of the Supervisory Board, the Fund Management Council, and the law regarding their assigned tasks; they are entitled to allowances, remuneration, and other rights as prescribed by the State.

5. Operating expenses of the Fund Supervisory Board are included in the Fund's management operation costs.

Article 10. Fund Management Body

1. The Fund Management Body includes: Director, up to two Deputy Directors, Chief Accountant, and business departments. Among them:

- The Fund's Chief Accountant works on a full-time basis.

- The Fund's Director is concurrently the Leader of the unit advising on science and technology management of the ministry or the Leader of the Provincial Department of Science and Technology.

- One Deputy Director of the Fund is concurrently the Leader of a department or division of the finance authority of the ministry or the Leader of a provincial or division-level department of finance.

The organizational structure, functions, and responsibilities of the business departments assisting the Fund Management Body are decided by the Fund Director after obtaining approval from the Chairman of the Fund Management Council.

The Fund Management Body operates on a full-time and part-time basis. The minimum part-time working time at the Fund is 50%. Other positions in the Fund Management Body are recruited or transferred based on the existing total staff quota of the ministry (or province).

2. The Fund Director is the legal representative of the Fund in its activities; represents the Fund before the law in litigation and disputes related to the Fund's activities; is responsible to the Fund Management Council, Minister (or Provincial People's Committee Chairman), and the law for managing the Fund's activities according to the duties and powers prescribed;

The Fund Director is appointed or relieved of duty by the Minister (or Provincial People's Committee Chairman) based on the proposal of the Fund Management Council, for a term of five years.

3. Duties and Powers of the Fund Director:

a) Organize the implementation of tasks assigned by the ministry (or province) to the Fund;

b) Organize, manage, and direct the activities of the Fund Management Body; implement issues related to the Fund's activities according to the Charter, Resolutions of the Fund Management Council, and relevant laws;

c) Lead the development of regulations on operations during each period and other related documents for submission to the Fund Management Council for consideration:

- Regulations on the Fund's business operations;

- Other documents as prescribed.

d) Prepare content, materials, and organize meetings of the Fund Management Council and the Scientific and Technological Council. Participate in sessions of the Fund Management Council, provide opinions on matters discussed by the Fund Management Council, but do not vote;

đ) Submit decisions on funding, lending, support, and loan guarantees according to the provisions of this Charter for the Fund Management Council to decide;

e) Appoint and relieve of duty heads of business departments and other positions within the Director's authority;

g) Manage personnel, assets, and capital of the Fund;

h) Be responsible to the Fund Management Council and competent state agencies for the execution of his/her management duties according to the law;

i) Report to the Fund Management Council and competent state agencies according to the provisions of this Charter and other relevant regulations concerning the Fund's activities;

k) Submit to the Fund Management Council:

- Approval of the Fund's annual activity plan;

- Proposals for appointment and relief of duty of Deputy Directors and Chief Accountants.

m) Other duties and powers as prescribed in this Charter.

5. Deputy Directors and Chief Accountants of the Fund:

a) Deputy Directors and Chief Accountants of the Fund are proposed by the Director for the Chairman of the Fund Management Council to consider and submit to the Minister (or Provincial People's Committee Chairman) for appointment or relief of duty, for a term of five years;

b) The Deputy Director and the Chief Accountant of the Fund assist the Fund Director in managing certain areas and tasks as assigned by the Director and are responsible to the Director and the law for the tasks assigned to them.

6. The operating expenses of the Fund's management agency are included in the Fund's management operation costs.

Article 11. Scientific and Technological Council

1. The Scientific and Technological Council consists of five or seven members established by the Fund Management Board upon the proposal of the Fund Director to advise on evaluating and selecting scientific and technological tasks, loans, support, and loan guarantees; assessing and accepting the results of scientific and technological tasks in funding activities; determining research directions and other related issues.

Members of the Scientific and Technological Council must be reputable scientists and managers with good qualities, high professional expertise in science and technology, finance, and relevant experience.

2. The Scientific and Technological Council operates based on democratic, objective, and honest principles, complying with laws governing the operations of the Scientific and Technological Council as stipulated by the Fund Management Board.

3. The operating expenses of the Scientific and Technological Council are included in the Fund's management operation costs.

Article 12. Funding Activities of the Fund

1. The Fund implements funding:

a) For national-level scientific and technological tasks assigned directly to ministries (or provinces), and for ministry-level (or provincial-level) scientific and technological tasks according to plans approved by competent authorities and directly managed;

b) Funding is based on contracts signed with organizations and individuals primarily responsible for implementing the tasks. The funding provided is commensurate with the progress of the contract;

c) The Fund compiles final accounts data on funded expenditures and reports to the Ministry (or Provincial People's Committee) as per current regulations.

2. The Fund does not undertake the selection, evaluation, acceptance, or review of scientific and technological tasks that it funds.

Article 13. Granting Activities of the Fund

The Fund provides full or partial grants to organizations and individuals implementing the following scientific and technological tasks:

1. Basic research topics in natural sciences, social sciences, and humanities, prioritizing topics aligned with national science and technology development strategies and annual strategies announced by ministries or provinces;

2. Applied research topics, prioritizing those aimed at creating new technologies and technological innovations in accordance with annual priorities announced by ministries or provinces;

3. Urgent scientific and technological tasks of significant importance in science and practice;, potential scientific and technological tasks in various fields of science and technology, natural sciences, social sciences, and interdisciplinary sciences.

Article 14. Loan and Loan Guarantee Activities of the Fund

1. The Fund provides low-interest or interest-free loans for the following science and technology projects:

a) Interest-free loans include projects applying domestic research outcomes and developing technologies; high-tech applications or producing high-tech products; generating employment and income in rural, mountainous, and economically disadvantaged regions; yielding economic and social benefits;

b) Low-interest loans include projects modernizing technology to produce high-quality and competitive products and services;

c) The Fund provides loans on the principle of repayment. Borrowers must meet the following requirements:

- Eligible borrowers must comply with current state regulations and this regulation;

- Loan application files must be evaluated and reviewed transparently and publicly;

- The Fund provides loans for implementing science and technology projects not included in state plans, bringing economic and social benefits to ministries or provinces, and not overlapping with projects funded by other programs or funds from the state budget;

- Loans must be used for purposes specified in the credit agreement;

- Borrowers must have the financial capacity to fully repay the loan on time.

d) The amount of the loan and the authority to decide the loan amount within the Fund's available capital, consistent with the annual capital utilization plan and financial revenue-expenditure plan approved by the Fund Management Board.

đ) The loan term is determined based on the Fund's available capital, specific project conditions, and borrower repayment capacity, but not exceeding sixty months. Special cases are decided by the Fund Management Board.

e) Loan interest rates:

- Interest-free loans for projects applying domestically developed research outcomes and technology development as specified in Point a Clause 1 of this Article;

- Low-interest loans for technology modernization projects as specified in Point b Clause 1 of this Article, with interest rates equal to the state investment loan interest rate determined by the Minister of Finance for each period;

- The Fund Management Board decides on interest-free or low-interest loans for specific projects based on the Fund Director's proposal;

- For low-interest loans funded from non-budget sources to implement science and technology projects and programs, the loan interest rate is published at each point in time based on agreements between the Fund and domestic and foreign financial institutions providing preferential loans;

- The interest rate specified in this provision remains fixed throughout the loan period.

h) Loan security:

- The Fund provides loans secured by collateral, mortgage, or other security measures as prescribed by law. Procedures and methods for securing loans and handling collateral are carried out in accordance with laws on secured transactions and related laws;

- In cases where loans are provided without collateral for investment projects, the decision is made by the Fund Management Board after careful consideration.

i) Annually, the Fund shall establish a risk reserve to cover losses from lending activities. The level of establishment, handling, and authority for handling the risk reserve shall be carried out in accordance with the provisions of the law.

2. The Fund shall provide loan guarantees for science and technology projects as follows:

a) Conditions for the project owner to obtain a loan guarantee:

- The project has been appraised for lending by another credit institution and a request for a guarantee has been sent to the Fund;

- The financial plan and repayment plan for the loan have been approved by the Fund;

- There is collateral in the form of pledge or mortgage that has been accepted by the Fund.

b) The amount of guarantee and the authority to decide on the guarantee amount shall not exceed the loan amount.

c) The term of the loan guarantee shall be determined in accordance with the agreed loan term between the project owner and the lending credit institution, but shall not exceed the maximum loan period specified by the Fund.

d) The project owner receiving a loan guarantee must pay the Fund a guarantee fee, which is a percentage (%) of the total guaranteed amount. The specific rate is according to the current guidance of the Ministry of Finance.

3. The lending and loan guarantee activities stipulated in Clause 1 and Clause 2 of this Article shall be implemented by the Fund through delegation to credit institutions. The Fund organizes the evaluation and selection of tasks for lending and loan guarantees based on scientific and technological criteria. The total annual loan amount and loan guarantee amount shall not exceed 20% of the Fund's charter capital. The total outstanding loan balance and loan guarantee amount shall not exceed 50% of the Fund's charter capital.

Article 15. Activities Supporting the Fund

1. The Fund supports certain activities aimed at enhancing scientific and technological capacity within the scope of a ministry or province as follows: Organizing international scientific conferences in Vietnam; attending and presenting scientific reports (oral presentations) at international scientific conferences held abroad; short-term internships and research collaborations (less than 6 months) of scientists and graduate students implementing projects funded by the Fund at overseas scientific organizations and laboratories where domestic conditions are insufficient; publishing research results in reputable international scientific journals; registering intellectual property rights; publishing high-value scientific works with practical significance, which are the results of projects/funds supported by the Fund or other state budgets; supporting operating costs for leading scientists' laboratories; supporting talented young scientists who do not belong to public scientific and technological organizations.

2. The total annual budget for supporting activities aimed at enhancing scientific and technological capacity shall not exceed 10% of the Fund's charter capital.

Article 16. Financial and Accounting System of the Fund

1. The Fund implements the financial, accounting, management, and use of assets in accordance with the laws on the budget and accounting.

2. Annually, the Fund prepares a budget estimate for income and expenditure forecasts for its financing, lending, loan guarantee, support, and management activities, and reports to the Minister (or Chairman of the Provincial People's Committee) for approval.

3. Annually, the Fund prepares a final financial report and submits it to the ministry (or province) for review and inspection in accordance with regulations.

4. The Fund is permitted to carry forward surplus funds from the fiscal year to the next year.

5. Management expenses can be used for the operations of the Fund's management and administration structure in accordance with the current regulations of the State.

6. The Fund is subject to financial inspection and supervision by the Minister (or Chairman of the Provincial People's Committee).

Article 17. Responsibilities of organizations and individuals

1. Efficient and purposeful use of funds.

2. Fulfill all commitments in contracts, regulations set by the Fund, and other relevant legal provisions.

3. The results of scientific and technological tasks must be published in accordance with the Fund's regulations and registered and retained in accordance with current regulations.

Chapter III

AMENDMENTS, ADDITIONS, REPLACEMENTS AND EFFECTIVENESS OF THE FUND'S REGULATIONS

Article 18. Amending, supplementing, and replacing the Charter

The amendment, supplementation, and replacement of the Fund's Charter of the ministry (or province) must be based on specific conditions of the ministry (or province), this model Charter, and shall be submitted by the Fund Management Board for approval by the Minister (or Chairman of the Provincial People's Committee).

Article 19. Effectiveness of the Charter

The Charter of the ministry or provincial Fund shall take effect from the date of approval by the Minister (or Chairman of the Provincial People's Committee)./_.