Joint Circular No. 11/1999/TTLT/BGDĐT-BKHCNMT-BTCCBCP guiding the implementation of Decision No. 68/1998/QĐ-TTg dated March 27, 1998 of the Prime Minister on the relationship between educational institutions, research institutions, and state-owned enterprises within those institutions.

JOINT CIRCULAR

Guidelines for Implementing Decision No. 68/1998/QĐ-TTg

dated March 27, 1998, of the Prime Minister on the relationship between training institutions, research institutions, and state-owned enterprises within those institutions

Implementing Decision No. 68/1998/QĐ-TTg dated March 27, 1998, of the Prime Minister regarding the pilot establishment of state-owned enterprises within training institutions and research institutions; the Ministry of Education and Training, the Ministry of Science, Industry, and Environment, and the Government’s Organizational and Cadre Affairs Committee shall stipulate the relationship between training institutions, research institutions, and state-owned enterprises (SOEs) within those institutions as follows:

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1. SOEs within training institutions and research institutions are units subordinate to those institutions and are subject to management by the training institution or research institution pursuant to the delegation of authority from the Minister, Head of a ministry at the level of a ministerial department, Head of a government agency, or Chairman of the People's Committee of a province or centrally governed city.

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

2. SOEs within training institutions and research institutions have legal personality, separate bank accounts and seals, civil rights and obligations, and are responsible for their business production and operation activities.

3. The business production and operation activities of SOEs within training institutions and research institutions must be linked to research results in technology deployment or scientific and technological products and services consistent with the functions and specialized tasks of the institution. Training institutions and research institutions shall create conditions suitable to the provisions of the law on capital, materials, equipment, human resources, land, and other conditions for the enterprise to operate effectively, preserve, and develop capital.

II. RIGHTS AND RESPONSIBILITIES OF TRAINING INSTITUTIONS AND RESEARCH INSTITUTIONS TOWARDS THE SOEs SUBORDINATE TO THEM

1. The head of the training institution or research institution is responsible for drafting the proposal to establish an SOE within their own institution and submitting it to the competent authority as stipulated in Article 4 of Decision No. 68/1998/QĐ-TTg of the Prime Minister.

2. The head of the training institution or research institution shall submit to the Minister, Head of a ministry at the level of a ministerial department, Head of a government agency, or Chairman of the People's Committee of a province or centrally governed city for approval the Charter of Organization and Operation of the enterprise, appointment, dismissal, commendation, and disciplinary action against the General Director of the enterprise.

3. The head of the training institution or research institution shall handle procedures in accordance with the law to transfer part of the workshops, equipment of the training institution or research institution to the enterprise. The value of the workshops and equipment transferred by the training institution or research institution to become the registered capital of the enterprise shall not exceed one-third of the total value of the workshops and equipment of the training institution or research institution and shall not affect the mission and quality of training and research.

4. The head of the training institution or research institution is responsible for transferring initial investment capital and additional investments to the enterprise, supervising the management and use of facilities transferred to the enterprise, and approving profit distribution systems; approving the mobilization of capital from teaching staff, workers, officials, and researchers within their own institution; joint venture fundraising; using assets to invest outside the enterprise according to the proposal of the enterprise director.

5. After reaching an agreement with the enterprise director, the head of the training institution or research institution may redeploy or permanently transfer some teachers, scientific officers, workers, and officials to work in the production and business operations of the enterprise within the training institution or research institution; these personnel will not receive salary for public service but will receive wages and other income from the enterprise while still having the right to sign contracts to participate in training and research activities at the institution. When necessary, the head of the training institution or research institution may redeploy these teachers and scientific officers back to teaching and research after negotiating with the enterprise director within the approved staffing quota of the training institution or research institution.

6. The head of the training institution or research institution directs the enterprise to operate in accordance with its assigned functions and responsibilities and monitors compliance with laws and state policies.

7. The head of the training institution or research institution is responsible for transferring scientific and technological results for application in production and creating favorable conditions for the enterprise under their unit to operate productively.

8. The head of the training institution or research institution is responsible for handling procedures in accordance with the regulations of the Ministry of Finance to reclaim the entire corporate income tax paid by the SOE under their institution to be used for building infrastructure, purchasing equipment to enhance teaching, learning, research, and technological development capabilities as per the approved plan.

9. The head of the training institution or research institution is responsible for the teachers, scientific officers, workers, and officials redeployed by the institution when the enterprise goes bankrupt or is dissolved.

III. RIGHTS AND RESPONSIBILITIES OF SOEs WITHIN TRAINING INSTITUTIONS AND RESEARCH INSTITUTIONS

In addition to the general provisions on the rights and responsibilities of the enterprise director under the State Enterprise Law, this Circular specifically stipulates the rights and responsibilities of the directors of SOEs established under Decision No. 68/1998/QĐ-TTg in relation to training institutions and research institutions. Specifically:

1. The director of the SOE receives capital, land, workshops, equipment, and other resources transferred by the training institution or research institution for management and uses these resources properly for business production and operation, preserving and developing capital; contributes funds to the training institution or research institution in accordance with the Charter of Organization and Operation of the enterprise.

2. The director of the SOE within training institutions and research institutions is responsible for presenting the plan agreed upon by the head of the training institution or research institution for raising capital, domestic and foreign joint ventures, borrowing, and investing outside the enterprise to the authority that decides on the establishment of the enterprise.

The General Director of State-Owned Enterprises in training institutions and research facilities is responsible for presenting the plan, which has been agreed upon by the head of the training institution or research facility regarding capital mobilization, joint venture fundraising (domestic and foreign), borrowing, and investment outside the enterprise, to the head of the agency that established the enterprise.

3. The Director of State-Owned Enterprises shall, after reaching agreement with the Head of the training institution and the research institution, submit to the Minister, the Head of the agency at the level of a ministry, the Head of the agency under the Government, the Chairman of the People's Committee of provinces and centrally-run cities for the appointment, dismissal, commendation, and disciplinary action of the Deputy Directors and Chief Accountants of the enterprise.

4. The Director of State-Owned Enterprises shall develop long-term plans and annual plans, production and business organization projects of the enterprise and submit them for approval by the Head of the training institution and the research institution.

5. On a regular basis, the Director of State-Owned Enterprises shall report to the Head of the training institution and the research institution on the results of the enterprise's operations; implement fully the accounting and statistical systems as prescribed by law.

6. The Director of State-Owned Enterprises shall be responsible for all activities of the enterprise. The Director of State-Owned Enterprises has the authority to independently enter into production and business contracts, employment contracts, and determine wage levels and utilize welfare funds and incentive funds according to current laws and the Charter of Organization and Operation of the enterprise.

7. The Director of State-Owned Enterprises shall be responsible for applying the research results transferred and supported by the training institutions and research institutions to their research and training activities.

IV. IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days from the date of signature.

During implementation, if there are difficulties or obstacles, the training institutions, research institutions, and enterprises shall reflect these issues to the Ministry of Education and Training, the Ministry of Science and Technology, and the Civil Service Committee of the Government for further study and appropriate amendments.