Circular No. 11/2009/TT-BKHCN on the National Quality Award

CIRCULAR

Provisions on the National Quality Award

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Pursuant to the Law on Product Quality dated November 21, 2007;

Pursuant to Decree No. 132/2008/NĐ-CP dated December 31, 2008 of the Government detailing a number of provisions of the Law on Product Quality;

Pursuant to Decree No. 28/2008/NĐ-CP dated March 14, 2008, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

The Minister of Science and Technology shall provide detailed regulations on the National Quality Award as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates detailed criteria and scoring for the National Quality Award (hereinafter referred to as the NQA); the organizational system for the NQA activities; procedures and formalities for awarding and presenting the NQA.

Article 2. Applicability

This Circular applies to organizations and enterprises participating in the NQA and agencies, organizations, and individuals related to the awarding activities of the NQA.

Article 3. Types of Participation

1. Types of organizations and enterprises participating in the NQA include:

a) Large-scale production;

b) Medium and small-scale production;

c) Large-scale service;

d) Medium and small-scale service.

2. Organizations and enterprises specified in point a and c, Clause 1 of this Article are those using more than 300 regular employees (contracts of at least one year).

Organizations and enterprises specified in point b and d, Clause 1 of this Article are those using up to 300 regular employees (contracts of at least one year).

Article 4. Conditions for Participation

1. Organizations and enterprises eligible to participate in the NQA are those with legal personality that have continuously engaged in production, business, and service activities in Vietnam for at least 36 months prior to the registration date without violating any legal provisions.

2. In cases where organizations and enterprises have already won the Gold National Quality Award, if they meet the conditions stipulated in Clause 1 of this Article, they may re-participate in the NQA three years after receiving the Gold National Quality Award.

3. In cases where organizations and enterprises have already won the Silver National Quality Award, if they meet the conditions stipulated in Clause 1 of this Article, they may continue to re-participate in the NQA.

Article 5. Application Forms and Procedures for Registration

1. Organizations and enterprises participating in the NQA must prepare an application form including:

a) Application for participation in the NQA;

b) A general report on the organization or enterprise;

c) An internal assessment report based on the seven criteria of the NQA;

d) Documentation proving the implementation of advanced quality management systems (certificates or related documents);

đ) Documentation proving the conformity of main products and goods with relevant technical standards and regulations (copies);

e) Environmental impact assessment reports or environmental protection commitments approved and annual monitoring results according to the law in the last three years (copies);

g) Confirmation of tax obligations fulfillment and social insurance contributions for employees annually in the last three years (originals or copies);

h) Other documentation proving business performance of organizations and enterprises in the last three years, if available (copies).

2. Organizations and enterprises must register to participate in the NQA before May 1st and submit their application forms before July 1st each year at the Provincial Standards Measurement Quality Agency where the organization or enterprise operates.

Chapter II

CRITERIA AND SCORING FOR AWARDING, FORMS OF NATIONAL QUALITY AWARD

Article 6. Criteria and Scoring for Awarding

1. The criteria for awarding are as prescribed in Article 27 of Decree No. 132/2008/ND-CP dated December 31, 2008, of the Government detailing certain provisions of the Law on Product and Goods Quality, with a maximum total score of 1,000 points for the seven criteria. The specific maximum scores for each criterion are as follows:

a) Leadership role of the organization or enterprise: 120 points

b) Business strategy of the organization or enterprise: 85 points

c) Customer and market-oriented policy: 85 points

d) Measurement, analysis, and knowledge management: 90 points

đ) Human resource management and development: 85 points

e) Management of organizational processes: 85 points

g) Organizational performance results: 450 points

2. Detailed contents of each criterion and the method of scoring for each detailed content of each criterion as stipulated in Clause 1 of this Article shall be implemented according to the guidelines of the General Bureau of Standards Measurement Quality (hereinafter referred to as the General Bureau TCĐLCL).

Article 7. Forms of National Quality Award

1. The National Quality Award includes:

a) National Quality Gold Award;

b) National Quality Silver Award.

Organizations and enterprises winning the NQA will receive the Cup according to the model specified in Appendix I attached to this Circular and a Certificate from the Prime Minister.

2. The Gold National Quality Award is presented to organizations and enterprises achieving 800 points or more and being rated as the best among those winning the NQA.

The number of Gold National Quality Awards is as follows:

a) Large-scale production: up to 03 awards

b) Medium and small-scale production: up to 03 awards

c) Large-scale services: up to 03 awards

d) Medium and small-scale services: up to 03 awards

Within each industry activity type (as defined in Clause 1 of Article 3 of this Circular), only one Gold National Quality Award will be awarded.

3. The Silver National Quality Award is given to organizations and enterprises achieving 600 points or more.

There is no limit to the number of organizations and enterprises winning the Silver National Quality Award.

Chapter III

NATIONAL QUALITY AWARD ORGANIZATIONAL SYSTEM

Article 8. Management and Implementation Agencies for National Quality Award (NQA)

1. The General Department of Standardization, Metrology and Quality Control (TCĐLCL) is the Standing Agency for NQA, performing the following tasks:

a) Proposing programs, projects, and cooperation activities both domestically and internationally on NQA to the Ministry of Science and Technology;

b) Leading and coordinating with relevant organizations to implement NQA activities;

c) Leading the development and guiding the implementation of documents and materials related to NQA;

d) Proposing the list of members of the National Council for NQA (hereinafter referred to as the National Council) to the Ministry of Science and Technology for decision;

đ) Coordinating with the National Council to perform tasks as stipulated in Clause 2, Article 9 of this Circular;

e) Establishing Preliminary Selection Councils for the National Quality Award (hereinafter referred to as Preliminary Selection Councils);

g) Organizing training, seminars, and issuing certificates for members of the preliminary council, evaluation experts, and organizations and enterprises participating in NQA;

h) Implementing information dissemination and promotional activities about the National Quality Award;

i) Organizing the annual award ceremony for organizations and enterprises that have won awards;

k) Implementing international cooperation on quality awards; representing Vietnam in regional and international organizations on quality awards according to the regulations of competent state agencies; nominating organizations and enterprises winning the National Quality Gold Award to participate in international and regional quality awards;

l) Resolving complaints and denunciations related to NQA; reporting and recommending the Minister of Science and Technology to handle violations of NQA by organizations, enterprises, and other individuals involved;

2. The Department of Science and Technology is the leading agency directing the Provincial Bureau of Standards, Metrology and Quality Control to implement NQA activities at the local level, performing the following tasks:

a) Organizing the implementation of annual National Quality Award activities at the local level in accordance with the guidance of the General Department of Standardization and Quality Control;

b) Promoting, disseminating, and guiding organizations and enterprises participating in NQA at the local level;

c) Proposing the list of preliminary council members to the General Department of Standardization, Metrology and Quality Control for decision;

d) Coordinating with the preliminary council to perform tasks as stipulated in Clause 2, Article 10 of this Circular;

đ) Proposing tasks, plans, and programs on NQA at the local level and reporting annual activities to the General Department of Standardization, Metrology and Quality Control;

e) Resolving complaints and denunciations related to NQA at the local level.

Article 9. National Council

1. The National Council is established by the Minister of Science and Technology upon the proposal of the General Department of Standardization, Metrology and Quality Control. The number of members of the National Council ranges from 11 to 17, representing relevant ministries, sectors, agencies, and organizations. The National Council consists of a Chairman, a Vice-Chairman, and Members. Members of the National Council are those who are knowledgeable about quality management and familiar with the criteria and requirements of NQA.

The Chairman controls the sessions of the National Council. In the absence of the Chairman, the Vice-Chairman shall act as the Chairman to control the sessions of the National Council. The National Council operates based on the principle of unanimous discussion among present members. Sessions of the National Council must have at least two-thirds of the members present. Decisions of the National Council only take effect when at least three-quarters of the present members agree.

The Secretary of the National Council is an officer of the General Department of Standardization, Metrology and Quality Control.

2. The National Council has the following responsibilities:

a) Proposing programs for implementing NQA activities to the Ministry of Science and Technology;

b) Reviewing, evaluating, and examining the files of the preliminary council;

c) Conducting reviews and evaluations at participating organizations and enterprises when necessary;

d) Selecting the best enterprises to propose for the National Quality Gold Award and proposing the list of organizations and enterprises to the Ministry of Science and Technology for consideration and recommendation to the Prime Minister for the National Quality Award.

Article 10. Preliminary Selection Board

1. The Preliminary Selection Board shall be established by the General Department for Quality Management based on the proposal of the Director of the Science and Technology Department of the province or centrally governed city. The Preliminary Selection Board shall consist of from seven to eleven members who are representatives of departments, agencies, and related organizations at the local level. The Preliminary Selection Board includes a Chairperson, a Vice-Chairperson, and members. Members of the Preliminary Selection Board must have expertise in quality management and a thorough understanding of the criteria and requirements for the National Quality Award.

The Chairperson shall preside over meetings of the Preliminary Selection Board. In the absence of the Chairperson, the Vice-Chairperson shall act on behalf of the Chairperson to preside over meetings of the Preliminary Selection Board. The Preliminary Selection Board operates on the principle of consensus among present members. Each meeting of the Preliminary Selection Board must have at least two-thirds of its members present. Decisions of the Preliminary Selection Board are only valid when at least three-quarters of the present members agree.

The Secretary of the Preliminary Selection Council is an officer of the Provincial Bureau of Standards, Metrology, and Quality Control.

2. The Preliminary Selection Council has the following responsibilities:

a) Receiving registration forms and participation files of the National Quality Award from organizations, enterprises;

b) Conducting the examination and evaluation based on submitted documentation and on-site assessment of participating organizations and enterprises;

c) Preparing the evaluation report and proposing to the National Council a list of organizations and enterprises recommended for the National Quality Award;

d) Notifying in writing the evaluation results and other feedback information to organizations and enterprises after the Preliminary Selection Board has completed its evaluation.

Chapter IV

PROCEDURE AND PROCEDURES FOR AWARDS SELECTION

Article 11. Evaluation Process of the Preliminary Selection Board

1. Evaluation Process

The Preliminary Selection Board must conduct the evaluation of participating organizations and enterprises for the National Quality Award in two steps:

- Step 1: Documentation Review

The Preliminary Selection Board shall appoint a group of experts to review the documentation submitted for the National Quality Award by organizations and enterprises. The evaluation team must include at least three independent evaluators. After the evaluation, the expert group must prepare a unified evaluation report.

Evaluators must have expertise in quality management and the criteria and requirements for the National Quality Award, and hold a certificate as a National Quality Award evaluator.

- Step 2: On-Site Evaluation

The Preliminary Selection Board shall appoint an evaluation team consisting of representatives of the Preliminary Selection Board and at least three evaluators to conduct on-site evaluations of participating organizations and enterprises. After the evaluation, the expert group must prepare an on-site evaluation record.

2. Evaluation Results

Based on the results of the documentation review and on-site evaluation, the Preliminary Selection Board shall decide on the list of organizations and enterprises recommended for the National Quality Award and submit relevant files (five printed copies and one CD) to the National Council through the General Department for Quality Management before August 15 each year.

3. Files of the Preliminary Selection Board include:

- Participation files of organizations and enterprises as stipulated in Clause 1, Article 5 of this Circular;

- Evaluation results of the Preliminary Selection Board for each organization and enterprise (unified evaluation report, summary score sheet, on-site evaluation record, Preliminary Selection Board meeting minutes);

- A recommendation letter from the Preliminary Selection Board accompanied by a list of organizations and enterprises recommended for the award.

Article 12. Evaluation Process of the National Council

1. Evaluation Process

The National Council shall appoint a group of experts to examine and verify the files of organizations and enterprises proposed for awards by the Preliminary Selection Board and the relevant files of the Preliminary Selection Board. If necessary, the National Council may appoint an evaluation team to conduct on-site verification for organizations and enterprises to supplement information for the selection and award process.

Before October 15 each year, the National Council shall cooperate with the General Department for Quality Management to propose a list of organizations and enterprises eligible for awards and prepare files for submission to the Ministry of Science and Technology for consideration and recommendation to the Prime Minister for the National Quality Award.

2. Files submitted to the Ministry of Science and Technology include:

- Annual activity report on the National Quality Award, documentation review report, and on-site evaluation report, if applicable;

- Meeting minutes of the National Council;

- List of organizations and enterprises recommended for the award;

- Other relevant files and documents, if applicable.

3. The General Department for Quality Management shall cooperate with the Office of the Ministry of Science and Technology to complete the award recommendation files for organizations and enterprises eligible for submission to the Prime Minister before November 1 each year.

4. The General Department for Quality Management shall be responsible for notifying the award results to the Preliminary Selection Board and award-winning organizations and enterprises after the Prime Minister's decision on the award.

5. The General Department for Quality Management shall organize an award ceremony for organizations and enterprises that have won the National Quality Award in December each year following the Prime Minister's decision on the award.

Chapter V

OTHER PROVISIONS

Article 13. Operating funds

1. Source of funds: The operating funds of the National Quality Award (GTCLQG) shall be as prescribed in Article 29 of Decree No. 132/2008/ND-CP dated December 31, 2008 of the Government detailing the implementation of certain provisions of the Law on Product and Service Quality.

2. Management and utilization: The management and utilization of funds for the operation of the National Quality Award shall comply with the provisions of the State Budget Law and current financial management guidelines.

Article 14. Benefits for organizations and enterprises achieving the National Quality Award

1. Organizations and enterprises that achieve the National Quality Award Gold Medal shall be nominated to participate in regional and international quality awards.

2. Organizations and enterprises that achieve the National Quality Award are permitted to announce, publicize, and advertise through mass media or other forms of introduction about their own unit, and may use the emblem (logo) of the National Quality Award according to the model specified in Appendix II attached hereto on the publications of the organization or enterprise.

3. Organizations and enterprises that achieve the National Quality Award shall be given preferential treatment and support by ministries, sectors, and localities in production and business activities, trade promotion, and productivity and quality development programs.

4. Organizations and enterprises that win awards shall be rewarded annually from the fund for commendation by ministries, sectors, and centrally governed cities and provinces in accordance with the provisions of the law.

Article 15. Handling Violations

1. Within three years from the date the organization or enterprise wins the award, if it is found to have engaged in fraudulent behavior during the participation in the National Quality Award or violated the provisions of this Circular and other laws affecting the image and reputation of the National Quality Award, the National Council shall base its consideration and recommendation for revocation or cancellation of the awarded results on the degree of violation by the winning organization or enterprise.

2. The revocation or cancellation of the awarded results for organizations and enterprises achieving the National Quality Award must be publicly announced through mass media.

Chapter VI

IMPLEMENTING PROVISIONS

Article 16. Effective Date

1. This Circular takes effect forty-five (45) days from the date of issuance.

2. This Circular replaces Decision No. 19/2004/QĐ-BKHCN dated July 14, 2004 of the Minister of Science and Technology promulgating the regulations for selecting the Vietnam Quality Award./.