Joint Circular No. 12/2006/TTLT/BKHCN-BTC-BNV guides the implementation of Government Decree No. 115/2005/NĐ-CP dated September 5, 2005, concerning the mechanism for self-management and self-responsibility of public scientific and technological organizations.

JOINT CIRCULAR
Guidelines for Implementing Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government on the mechanism of self-management and self-responsibility of public scientific and technological organizations

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To implement Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government on the mechanism of self-management and self-responsibility of public scientific and technological organizations (hereinafter referred to as Decree No. 115/2005/NĐ-CP), the Ministry of Science and Technology, the Ministry of Finance, and the Ministry of Home Affairs provide guidelines for implementing certain provisions of the Decree as follows: 

I. GENERAL PROVISIONS

1. Scope of application:

Public scientific and technological organizations (STO) having legal personality, with their own seals and separate bank accounts, established by competent state management authorities include research institutes, research and technology development organizations, and STO service providers, organized under various forms such as institutes, centers, laboratories, research stations, monitoring stations, testing stations, and other research and development facilities under the Government.

2. Explanation of Terms:

a) The competent state authority to establish STOs as stipulated in Decree No. 115/2005/NĐ-CP is the Government, the Prime Minister, Ministries, ministerial-level agencies, government-affiliated agencies, People's Committees of provinces and centrally governed cities.

b) The competent authority to approve the Transformation Plan of STOs into self-financing STOs (hereinafter referred to as the Transformation Plan) is Ministries, ministerial-level agencies, government-affiliated agencies, Management Boards of State-owned Corporations, and University Presidents.

c) The supervising agency is the superior administrative and professional management agency responsible for managing the STO.

d) Self-financing STOs are organizations that fully ensure their own operating funds.

3. Transformation of organization and activities:

a) Research and technology development organizations and STO service providers that have not yet ensured their own operating funds must transform their organization and activities into either self-financing or scientific and technological enterprises by December 2009 at the latest; otherwise, they will be merged or dissolved.

b) Research organizations engaged in basic research, strategic research, and policy research serving state administration are exempt from mandatory transformation.

4. Time limit for drafting and approving the Transformation Plan:

a) Research and technology development organizations and STO service providers shall draft the Transformation Plan (in accordance with Model I attached to this Circular) and submit it to the supervising agency before September 30, 2006. If the STO has subordinate organizations undergoing transformation, the Transformation Plan shall be based on the plans of these subordinate organizations.

b) The competent authority to approve the Transformation Plan shall be responsible for reviewing and issuing a decision to approve the plan before December 15, 2006. In cases where the STO does not have a Transformation Plan or if the plan is not approved, the competent authority shall issue a decision requiring the STO to develop a merger or dissolution plan.

In cases where the STO does not have a Transformation Plan or if the plan is not approved, the competent authority shall issue a decision requiring the STO to develop a merger or dissolution plan.

5. STOs undergoing transformation may retain their previous names (institute, center) or change their names to suit their new operational form. The choice of retaining or changing the name shall be decided by the STO and explained in the Transformation Plan.

6. STOs engaged in basic research, strategic research, and policy research serving state administration (which are exempt from mandatory transformation), if they engage in revenue-generating activities, may, based on specific characteristics and conditions, decide to separate units or subordinate organizations conducting technology development and STO services into independent self-financing organizations directly under them. These separated units, after fulfilling their obligations to the State as prescribed, shall contribute a portion of the surplus from their non-profit activities, production, business, and service activities to the STO directly managing them for general management and development of research organizations. The contribution rate shall depend on the performance of the separated unit and be determined by the head of the research organization according to internal expenditure regulations.

II. DETERMINATION OF TASKS, ORGANIZATION TO PERFORM TASKS AND ACTIVITIES OF STOS

1. Tasks of STOs include:

a) Tasks selected through competitive bidding: Based on the annual list of scientific and technological tasks published by the Ministry of Science and Technology, relevant ministries, and localities, STOs have equal rights to participate in competitive bidding to undertake scientific and technological tasks.

b) Tasks assigned or commissioned directly by state agencies; The tasks mentioned in points a and b above shall be implemented through the signing of scientific and technological contracts between state agencies and STOs. STOs shall independently organize and take responsibility for implementing scientific and technological tasks, ensuring completion within the specified quality and time frame as stipulated in the contract.

c) Tasks commissioned by organizations or individuals: STOs shall proactively seek out and sign contracts with organizations or individuals and bear full responsibility for organizing the implementation of the tasks. The contents of scientific research contracts, technology transfer contracts, STO service contracts, supply contracts, and other economic contracts shall be agreed upon by the STO and its partners based on the suitability of the STO's capabilities and expertise and compliance with the law.

d) The tasks assigned according to the functions of scientific research organizations (applicable only to scientific research organizations subject to the provisions of Clause 3, Article 4 of Decree No. 115/2005/NĐ-CP).

2. On the basis of the assigned tasks, scientific and technological organizations proactively develop five-year, annual activity plans and decide on measures for implementation.

3. Activities of scientific and technological organizations in international cooperation:

a) Have the right to choose partners, independently determine the form of scientific research collaboration, technology transfer, direct investment, and scientific and technological services with organizations and individuals abroad based on their capacity and suitability with the specialized field of the unit.

b) Have the right to directly invite foreign experts and scientists to work, exchange science, participate in management, and lead scientific and technological tasks of the unit; have the authority to decide the salary level for experts based on the financial resources of the unit.

c) The head of the scientific and technological organization has the authority to sign decisions dispatching staff under the unit's management to work abroad, study to improve their qualifications. The decision of the head of the scientific and technological organization is sent directly to competent agencies managing exit and entry procedures for these agencies to process exit and entry formalities for staff.

4. Business registration, tax registration:

a) Scientific and technological organizations engaged in production, business, and service activities must complete business registration procedures at the local business registration agency where the main office of the scientific and technological organization is located and obtain a Business Registration Certificate.

b) The business registration dossier includes: - Business registration application (in accordance with the model for enterprises). - Charter of organizational structure and operation of the scientific and technological organization. - Decision of the competent state management agency allowing the conversion to self-financing organizations. - Organizations operating in fields and industries requiring compliance with legal conditions must have permits issued by authorized state agencies.

c) After conversion, scientific and technological organizations engaged in production and business, service activities must complete tax registration procedures in accordance with current regulations.

5. Opening separate accounts for production and business activities: After obtaining a Business Registration Certificate, converted scientific and technological organizations must open separate accounts (including foreign currency accounts) at the Treasury or Bank. Scientific and technological organizations may not transfer budget funds from the state budget intended for implementing scientific and technological tasks (through selection or direct commissioning), development investment, regular support expenses, and other state budget funds to fund production and business activities and services.

III. FINANCIAL RESOURCES OF SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS

1. State budget funds include:

a) Funds for implementing scientific and technological tasks: The state budget allocates funds to scientific and technological organizations according to the annual budget approved by the competent authority.

b) Regular operational funds:

- Scientific research organizations conducting basic research or strategic policy research serving state management (as stipulated in Clause 3, Article 4 of Decree No. 115/2005/NĐ-CP) will be guaranteed regular operational funds by the state budget corresponding to the assigned tasks. Regular operational funds will not be allocated based on the number of personnel in scientific research organizations.

- For scientific and technological organizations that have not yet fully self-finance their regular operational funds (as stipulated in Clause 2, Article 4 of Decree No. 115/2005/NĐ-CP):

+ Scientific and technological organizations with approved transformation projects within the specified time frame will be guaranteed regular operational funds by the state budget according to the approved project until the end of 2009 within the scope of the science and technology expenditure budget allocated by the approving authority. The level of regular operational funds is specified in the decision approving the project by the competent authority. During the implementation of the project, if the scientific and technological organization lacks the ability to transform and requests merger or dissolution, the state authority will only provide regular operational funds for the following year from the date of the merger or dissolution decision.

+ Scientific and technological organizations without transformation projects or whose projects were not approved by the competent authority will only receive state budget support for regular operational funds up to the end of 2007 at the level of the amount provided in 2006. The competent state management authority will make decisions to merge or dissolve these organizations in 2007.

c) Capital for basic construction, counterpart capital for projects, equipment procurement and major repair costs for fixed assets arranged within the approved state budget expenditure estimate.

2. Revenue from public services, including: Fees and charges as prescribed; revenue from service provision activities; revenue from scientific research and technology development contracts, technology transfer contracts; revenue from production and business activities; other public service revenues (if any).

3. Grants, aid, gifts, and donations from individuals and organizations both domestically and internationally.

4. Other financial resources of scientific and technological organizations, including: Depreciation funds for fixed assets; proceeds from the liquidation of assets left over as prescribed; funds raised from individuals, loans from credit institutions; other lawful financial resources as prescribed by law (if any). The state encourages scientific and technological organizations to exploit income from production, business, and service activities consistent with the specialized field of the scientific and technological organization and other lawful sources of income. All revenues of scientific and technological organizations must be fully recorded and accounted for in the accounting books.

IV. USE OF FUNDS

1. Expenditure for implementing scientific and technological tasks:

Expenditure for implementing scientific and technological tasks using state budget funds shall apply the cost allocation system prescribed in another document issued by the Ministry of Finance and the Ministry of Science and Technology.

2. Pay additional salary and income:

a) Organizations for Science and Technology must ensure payment of salaries and deductions based on salaries to officials, employees, and workers at a minimum equal to the state-prescribed levels for salary grades, salary steps, and position allowances; depending on the financial results of the organization in the year, the actual salary payments may exceed the state-prescribed levels.

When the state adjusts the minimum wage, salary grades, salary steps, and deductions based on salaries, organizations for Science and Technology must use their unit's funds to pay salaries and deductions based on salaries to officials, employees, and workers according to the state policy. For scientific research organizations engaged in basic research and strategic policy research serving state management, after using their unit's funds to pay salaries and deductions based on salaries to officials, employees, and workers according to the state policy and if there is still a shortage, they will be supplemented with the state budget for the remaining funds.

b) Expenditure on additional income beyond the prescribed level:

Based on the remaining funds after deducting all expenses and setting up the required Funds as stipulated, organizations for Science and Technology shall decide on their own the expenditure on additional income for officials, employees, and workers according to the internal expenditure regulations.

3. Setting up Funds:

Annually, after covering all reasonable expenses, fulfilling all obligations to the state as prescribed, including tax payments (if applicable), the surplus difference between revenue and expenditure, organizations for Science and Technology are allowed to set up the following Funds:

a) Fund for Developing Scientific and Technological Activities: at least 30% of the total amount of the revenue surplus over expenditure. The unit has the right to decide on the use of the Fund for Developing Scientific and Technological Activities to invest in developing and enhancing scientific and technological activities, supplementing capital investment in building infrastructure, purchasing machinery, equipment, working tools, funding research, applying advanced science and technology, joint ventures, cooperation, and supporting training and development of human resources for the unit.

b) Reserve Fund for Stabilizing Income: established according to the financial capacity of organizations for Science and Technology and used to compensate income for officials and employees in cases where the unit's revenue decreases, when the state changes salary policies, or supports termination benefits or job search assistance for redundant workers.

c) Reward Fund and Welfare Fund: maximum not exceeding three months' average salary and additional income for both funds; the Reward Fund is used to award regular and special bonuses to groups and individuals inside and outside the unit based on work performance and contributions to the unit's activities; the Welfare Fund is used to build and repair welfare facilities, fund collective welfare activities, provide emergency hardship assistance, and additional funding for retired, disabled, and contract termination workers.

The head of the unit bases decisions on specific amounts for establishing and using Funds according to internal expenditure regulations, based on the above provisions and the unit's financial capacity.

4. Expenditure on Other Activities:

a) For funds allocated from the state budget for basic construction investment, counterpart project funds, procurement funds for equipment, major repairs of fixed assets, and funds allocated from the state budget to implement tasks assigned by state agencies (excluding scientific and technological tasks as specified in point a, Clause 1, Article 7 of Decree No. 115/2005/NĐ-CP), organizations for Science and Technology must use them for their intended purposes, complying with national regulations on standards, norms, expenditure contents, and settlement procedures.

b) In addition to expenditures as prescribed in Clauses 1, 2, 3, and point a, Clause 4, Article 8 of Decree No. 115/2005/NĐ-CP, other expenditures are decided upon by organizations for Science and Technology themselves and they bear full responsibility for their decisions.

All expenditures of organizations for Science and Technology must be transparent, purposeful, and effective. Officials, employees, and workers in the unit have the right and responsibility to monitor expenditures within the unit according to internal expenditure regulations and democratic regulations. Organizations for Science and Technology must be subject to inspection and have the obligation to provide information and explain to competent authorities about the unit's activities.

V. INTERNAL EXPENDITURE REGULATIONS

1. Internal expenditure regulations include provisions on systems, standards, and norms of expenditure uniformly applied within the unit, ensuring the completion of political tasks, scientific and technological tasks at various levels, maintaining regular operations, and enhancing the effectiveness of management based on principles of democracy, fairness, transparency, and distribution according to labor and responsibilities of each position.

2. Besides the standards, norms, and expenditure contents for state budget funds, organizations for Science and Technology can establish higher expenditure norms than those prescribed by the state for each activity within the scope of revenue from the unit's business activities. Specifically, the standards and norms for car usage, office space, and non-recurring expenditures of organizations for Science and Technology must comply with current regulations.

Organizations for Science and Technology are not allowed to use unit funds to purchase equipment for personal use at home or lend money to individuals under any form (except for official mobile phones installed at home as prescribed).

3. Scope and Specific Contents of Internal Expenditure Regulations:

a) Regarding income: First, ensure the salary level according to grades, steps, and allowances prescribed by the state, then distribute according to adjustment coefficients for additional income for officials, employees, and workers based on the principle that those who have high labor productivity, work efficiency, high responsibility, and significant contributions to increasing revenue and reducing expenditure will receive higher income.

b) Regarding domestic conference and travel expenses: The unit can set higher or lower expenditure levels than those prescribed by the state within the scope of its unit's funds.

c) Regarding foreign travel expenses: The unit shall implement in accordance with the regulations of the State; in cases where the unit stipulates a higher expenditure level than that prescribed by the State, it must use funds from the unit's own funds to cover such expenses.

d) Regarding the use of official telephones: The standards for equipping fixed and mobile phones for management staff and the costs for purchasing, installation, and network connection shall be implemented according to current regulations. Specifically, the payment for telephone usage fees can be set higher or lower than the State's prescribed levels for administrative agencies.

đ) Regarding the payment for regular business expenses: Depending on each type of activity, scientific and technological organizations may establish specific expenditure levels higher or lower than those prescribed by the State.

e) Regarding production, business, and service activities: Depending on specific circumstances, scientific and technological organizations may implement appropriate management methods, including allocating revenues and expenditures to subordinate units, clearly defining the proportion of contributions for general management expenses related to production, business, and services, and establishing statistical and accounting systems in accordance with the law.

g) Regarding expenditure levels for rewards and benefits: Based on reward forms, available funds, and specific operational needs, scientific and technological organizations may establish expenditure levels higher or lower than those prescribed by the State.

4. Internal expenditure regulations shall be established and discussed democratically and transparently, and must be reported and approved at the staff congress of the organization through secret ballot with at least two-thirds of the official representatives agreeing. After issuing the internal expenditure regulation decision, the head of the scientific and technological organization must submit it to the supervising authority for reporting and send it to the State Treasury where the organization has its transaction account for control purposes.

VI. METHODS OF ALLOCATING OPERATING EXPENSES FOR REGULAR ACTIVITIES TO BASIC RESEARCH ORGANIZATIONS, STRATEGIC POLICY RESEARCH ORGANIZATIONS SERVING STATE MANAGEMENT

Scientific and technological organizations engaged in basic research, strategic research, and policy research serving state management, as stipulated in Clause 3, Article 4 of Decree No. 115/2005/ND-CP, shall have their annual operating expenses guaranteed by the state budget corresponding to their assigned functions and tasks as follows:

1. Scientific and technological organizations have the autonomy to take responsibility for using their allocated operating expenses annually:

- They are allowed to proactively use the allocated funds to pay salaries and operate the organizational machinery, and to carry out regular tasks within their functions to achieve the highest efficiency.

- They may decide on expenditure levels higher or lower than those prescribed by the State within the allocated budget, according to the internal expenditure regulations of the unit.

2. Scientific and technological organizations prepare annual operating expense budgets to be submitted to competent state authorities for approval and inclusion in the annual plan. The amount of funding within the total annual budget allocation for science and technology affairs managed by the state must not be lower than the amount allocated in 2005. The basis for preparing the budget includes the regular tasks specified in the organizational charter and operation regulations of the unit, and the current state expenditure regulations to finance the annual regular research tasks assigned according to their functions; this includes paying salaries for actual staffing in 2005 and operating the organizational machinery according to current regulations.

Based on the regular tasks specified in the organizational charter and operation regulations of the unit, and the current state expenditure regulations, the annual regular operating budget is prepared to implement the assigned regular research tasks according to their functions; this includes paying salaries for actual staffing in 2005 and operating the organizational machinery according to current regulations.

3. The supervising authority bases decisions on the plans and budgets of scientific and technological organizations to determine specific task lists according to their functions, and the annual regular science and technology operating funds to implement assigned tasks and adjust the corresponding funding when there are changes in functions and tasks.

VII. TRANSFERRING ASSETS TO SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS

1. When drafting the conversion proposal, scientific and technological organizations must fully inventory existing assets at the unit, their original value, and residual value at the time of drafting the proposal (according to the model attached as Appendix II to this Circular), and propose a plan for managing and using the assets, and depreciation of the assets. Before approving the proposal of the scientific and technological organization, the competent state authority decides to establish an asset valuation committee to verify, inspect, and value the assets, then the head of the competent state authority signs the asset transfer decision, and the head of the scientific and technological organization signs to accept the assets (according to the model attached as Appendix III to this Circular).

2. Scientific and technological organizations may use the value of land use rights and assets allocated for use to contribute capital to joint ventures in accordance with the law; they may use assets formed from borrowed capital as collateral in accordance with the law.

3. After receiving the asset transfer decision from the competent authority, the unit head must develop a plan for using the assets and calculating depreciation and amortization of the transferred fixed assets:

a) Assets allocated for production and business operations are included in the unit's fixed capital and must be depreciated according to the regulations for state-owned enterprises, with the depreciation amounts retained for reinvestment in the unit's physical facilities.

b) Assets allocated for scientific research, technological development, and training must establish a plan for calculating depreciation (including tangible and intangible depreciation) as the basis for determining the asset value. In cases where these assets are leased according to the law to provide services, the consent of the unit head is required, and at least 30% of the lease service revenue must be remitted to the unit's development fund for public services after deducting the depreciation costs of the assets according to the regulations for state-owned enterprises during the lease period.

c) In all cases, the unit head is responsible for managing, preserving the total value, and developing the state assets transferred to the unit. Upon completion of the management term, retirement, or job transfer, the unit head must hand over all unit assets to the successor.

4. Assets that have lost their utility value or are no longer needed may be liquidated or transferred according to the procedures and formalities prescribed by law, with the proceeds being added to the Development Fund for the unit's operational activities.

5. For assets used in production, business, services, and organizations of science and technology, if they are efficiently operated and the depreciation rate does not exceed twice the national standard, they may be disposed of proactively. The proceeds from depreciation and disposal of assets sourced from state budget funds or self-owned funds shall be added to the Development Fund for the unit's operational activities. The proceeds from depreciation and disposal of assets sourced from borrowed capital shall be used to repay principal and interest on loans, with any surplus being added to the Development Fund for the unit's operational activities.

VIII. POLICIES FOR ADVANTAGES:

1. Financial advantage principles for scientific and technological organizations transitioning:

Scientific and technological organizations, when transitioning to self-financing organizational forms, have the right to operate autonomously, take responsibility independently, and enjoy financial advantages similar to newly established enterprises and other advantages stipulated in Decree 115/2005/NĐ-CP regarding business operations, while still enjoying financial advantages for scientific and technological activities under current regulations.

2. During the transitional period and after the transition, scientific and technological organizations that continue to conduct scientific and technological activities, prepare financial reports, clearly stating the average growth rate over three years, submit them to the supervising authority for confirmation, and receive investment development support within the annual investment development capital allocated to ministries, sectors, and localities by the competent state authorities.

3. The condition for receiving investment development support is based on the growth rate of the organization calculated on the basis of state budget contributions and an increase of at least 10% annually over three consecutive years. For scientific and technological organizations transitioning and producing goods eligible for tax incentives, the state budget contribution includes the portion exempted or reduced for tax purposes, serving as the basis for calculating the growth rate.

4. Investment development funding based on the growth criterion can only be used for investing in physical infrastructure and purchasing equipment to enhance research capabilities of scientific and technological organizations. In addition to the investment development funding provided based on the growth criterion, transitioning scientific and technological organizations still benefit from other investment projects like other scientific and technological organizations.

5. To encourage early transition before 2009, the State will provide a one-time funding support in the year of transition, with a minimum amount equal to 50% of the total regular operating expenses of the remaining years calculated based on the level of the preceding year immediately before the transition year, and this amount will be transferred into the Development Fund of the unit for investment development. The specific level of support is determined by the authority approving the project within the annual total budget estimate for science and technology operational activities of ministries, sectors, and localities.

IX. ORGANIZATION, STAFFING, AND RECRUITMENT OF CIVIL SERVANTS

1. The head of scientific and technological organizations has the right to decide on the restructuring and adjustment of organizational structures, defining the functions and responsibilities of subordinate organizations; deciding on the establishment, merger, and dissolution of subordinate organizations based on self-balancing resources to ensure the operation of the unit.

2. The head of scientific and technological organizations has the right to decide on the appointment, reappointment, resignation, and dismissal of heads and deputies of subordinate units and is responsible for these decisions; selecting and submitting to the higher supervisory authority for decision-making on the appointment, reappointment, resignation, and dismissal of deputies of scientific and technological organizations.

The procedures and conditions for appointment, reappointment, resignation, and dismissal are carried out according to the regulations of the supervisory authority in accordance with the Regulations on Appointment, Reappointment, Rotation, Resignation, and Dismissal of Leading Cadres and Civil Servants (Annexed Decision No. 27/2003/QĐ-TTg dated February 19, 2003).

3. Based on the nature, volume of work, and financial capacity, the head of transitioning scientific and technological organizations builds the annual staffing plan of the unit, simultaneously sending the staffing plan to the supervisory authority for consolidation, monitoring, and inspection. The staffing plan must clearly define the number of staff required, quality requirements, structure of civil servants, specify the departments and units needing additional staffing, and the time frame for supplementation.

4. Based on the staffing plan, the head of scientific and technological organizations builds a recruitment plan for civil servants, requiring clear definitions of the timing and methods of recruitment; concurrently building a plan for the utilization, training, and enhancement of cadres and civil servants corresponding to the recruitment plan.

5. Based on the staffing plan and recruitment plan, the head of scientific and technological organizations decides on the recruitment of civil servants through competitive examinations or selection, depending on the professional characteristics of each field to be recruited and the specific conditions of each scientific and technological organization. Recruitment of civil servants must comply with legal provisions and requirements regarding professional standards, vocational skills, political qualities, and moral qualities of the candidates as stipulated in laws on recruitment, utilization, and management of cadres and civil servants in state-run institutions and guiding documents.

6. Successful candidates through recruitment are appointed to positions and assigned salaries by the head of scientific and technological organizations according to the national regulations for researchers and equivalent positions.

7. Promotion of ranks for civil servants in scientific and technological organizations is implemented according to the guidance of the rank management authority for specialized civil servants.

X. EMPLOYMENT CONTRACTS, LABOR CONTRACTS, TASK ASSIGNMENT CONTRACTS

1. The head of the scientific and technological organization shall enter into employment contracts with officials within the unit in accordance with the procedures, formalities, and model employment contracts prescribed by laws on recruitment, utilization, and management of cadres and civil servants in state-run public institutions and guiding documents.

2. For cadres and officials who were recruited into the establishment of administrative and public service organizations of the State before July 1, 2003, and are currently working at scientific and technological organizations, the head of the scientific and technological organization shall enter into indefinite-term employment contracts with them, completing such contracts by December 31, 2006. The head of the supervising agency shall enter into employment contracts with the heads and deputy heads of the scientific and technological organizations.

3. Scientific and technological organizations that engage in production, business, and scientific and technological services shall have their heads enter into labor contracts with workers employed in production, business, and scientific and technological service units in accordance with the Labor Law and guiding documents for its implementation.

4. The head of the scientific and technological organization shall enter into job outsourcing contracts for tasks that do not require regular staffing.

5. Individuals who have continuously worked under indefinite-term employment contracts for three years or more (at the current scientific and technological organization or previously at administrative agencies and state-run public service organizations) and meet other specified criteria may be considered for appointment to leadership positions in scientific and technological organizations.

XI. INCREMENT OF SALARY

1. The head of the scientific and technological organization has the authority to decide on regular salary increments for cadres, officials, and workers according to the State's regulations on the time limit for salary increments for each cadre rank (except for senior research scientists and equivalent ranks); to decide on early salary increments for those who achieve outstanding results in their work; and to decide on an additional increment within the same rank for those who achieve exceptionally outstanding results, bringing tangible benefits to the unit and contributing to society.

2. The head of the scientific and technological organization selects individuals with achievements recognized by the collective to decide on early salary increments or additional increments for cadres and officials from the rank of principal researcher and below, as follows:

a) Early salary increments of six months to one year for officials who do not violate discipline and meet one of the following criteria between two salary increments:

- Two consecutive years achieving the title of Model Worker at the grassroots level or one year achieving the title of Model Worker at the Ministry level.

- Leading a national-level scientific and technological project successfully evaluated as excellent.

- Having a scientific work published in an internationally reputable journal or presented at an international scientific conference.

- Receiving a commendation from the Prime Minister or two commendations from the Minister, the head of an agency equivalent to a ministry, an agency under the Government, the Chairman of the People's Committee of a province or centrally-administered city.

b) An additional increment within the same rank for officials who do not violate discipline and meet one of the following criteria between two salary increments:

- Winning a national or international award in scientific and technological fields.

- Having an invention, utility model patent registered and recognized both domestically and abroad.

- Being awarded a state decoration.

- Being conferred a state honorary title such as Hero of Labor, Hero of the People's Armed Forces, National Model Worker, People's Teacher, Excellent Teacher, People's Doctor, Excellent Doctor, and other state honorary titles.

3. For officials at the rank of senior research scientist and above, the head of the scientific and technological organization shall prepare a list accompanied by a description of each person's achievements, report to the supervising agency for submission to the competent state management body for consideration and decision on early salary increments or additional increments.

XII. RESPONSIBILITIES OF THE HEAD OF THE SCIENTIFIC AND TECHNOLOGICAL ORGANIZATION

The head of the scientific and technological organization represents the organization in legal relations with domestic and foreign organizations and individuals; is responsible for all activities of the unit as stipulated in Article 13 of Decree No. 115/2005/NĐ-CP. Some specific contents are as follows:

1. The head of the scientific and technological organization reports to the Party Committee of the scientific and technological organization before deciding on the following matters:

a) Development planning, activity plans, and implementation measures.

b) Proposals for establishing, merging, or dissolving subordinate organizations.

c) Appointment, reappointment, resignation, dismissal, commendation, and disciplinary actions for leadership positions.

2. The head of the scientific and technological organization discusses with the same-level Trade Union Executive Board about:

a) Internal expenditure regulations.

b) Organizational democracy regulations.

c) Work regulations.

d) Recruitment, utilization, and management of cadres, officials, and workers.

đ) Loan and investment support schemes.

3. Points a and b of Clause 2 above must seek opinions from the Staff and Official Conference:

When the Party Committee and the Trade Union Executive Board have inconsistent opinions with the head of the scientific and technological organization on the above contents, each organization shall report in writing to their respective superiors, and the head of the scientific and technological organization shall report in writing to the direct supervising agency for their opinion before making a decision.

4. When the head of the scientific and technological organization decides on the following matters, they must send the decisions to the supervising agency for monitoring and inspection within ten days:

a) Development planning, activity plans, and implementation measures.

b) Internal expenditure regulations, organizational democracy regulations.

c) Decisions on organization and personnel as stipulated in Articles 10, 11, and 12 of Decree No. 115/2005/NĐ-CP.

5. The head of the scientific and technological organization is responsible for implementing democratic regulations, maintaining internal unity, caring for the improvement of material and spiritual enjoyment levels of cadres, officials, and workers in the unit; and shall not appoint their spouse, parents, children, siblings, or blood relatives to leadership positions related to human resources, accounting-finance, cashier, or warehouse management in the unit.

6. The head of the scientific and technological organization shall be responsible for coordinating with the Trade Union Executive Board to organize the annual staff conference in accordance with regulations; fully implement the information and regular reporting system according to the schedule and ad hoc reports as required by the supervising authority on the activities of the unit.

XIII. PROCEDURE FOR TRANSITION TO A SELF-FINANCED SCIENTIFIC AND TECHNOLOGICAL ORGANIZATION

Scientific and technological organizations shall carry out the transition according to the following basic procedures:

1. Disseminate and thoroughly understand the main contents of Decree No. 115/2005/ND-CP and this Circular to all staff members of the unit.

2. Reach consensus among the leadership of the scientific and technological organization, the same-level Party Committee, and the same-level Trade Union regarding the policy, timeframe for the transition, and development orientation of the unit during the transitional period until 2010.

3. Develop a Transition Plan in accordance with the guidelines set forth in Appendix I of this Circular.

4. Draft the Charter governing the organization and operation of the unit.

5. Report the Transition Plan at the full staff meeting of the unit. The Resolution approving the Transition Plan of the full staff meeting of the unit shall only have validity if more than two-thirds of the total number of staff members agree.

6. Submit the Transition Plan to the supervising authority within the prescribed time limit.

7. Upon approval of the Transition Plan, implement the contents of the Plan. In case the Plan is not approved, the organization must develop a merger or dissolution plan to be submitted to the competent state management agency in 2007.

XIV. IMPLEMENTATION

1. The supervising authority shall be responsible for:

a) Reviewing and appraising the Transition Plan of the scientific and technological organization and submitting it to the competent authority for approval within 15 days from the date of receipt of the Plan. In cases where there are multiple supervising authorities, the scientific and technological organization shall submit the Plan to the direct supervising authority, each level of supervising authority shall review the Plan and submit their appraisal opinions to the competent authority for approval within a total period not exceeding 15 days. If the scientific and technological organization's Plan does not meet the requirements and the supervising authority requests the organization to make amendments and supplements, the review and submission period for the Plan to the competent authority for approval may be extended but not beyond 30 days from the date the scientific and technological organization submits the Plan to the direct supervising authority.

b) Inspect and supervise the implementation of the responsibilities of the head of the scientific and technological organization as stipulated in Section XII of this Circular, and conduct evaluations and handle the responsibilities of the head of the subordinate scientific and technological organization in accordance with the law.

2. The competent authority for approving the Plan shall examine and issue a decision to approve the scientific and technological organization's Transition Plan (in the form attached as Appendix IV to this Circular) within 30 days from the date of receipt of the Plan submitted by the scientific and technological organization or the supervising authority of the scientific and technological organization. If the scientific and technological organization's Plan does not meet the requirements and the competent authority for approving the Plan requests the supervising authority to take the lead and coordinate with the scientific and technological organization to make amendments and supplements, the approval period for the Plan may be extended but not beyond 45 days. If the scientific and technological organization does not develop a Plan or the Plan is not approved, the competent authority shall issue a decision requiring the scientific and technological organization to develop a merger or dissolution plan in 2007.

3. Ministries, agencies equivalent to ministries, government agencies, provincial People's Committees under the central government, and State-owned Enterprise Management Councils shall base themselves on this guiding Circular to instruct research and technology development organizations and science and technology service organizations to develop Transition Plans, approve the Plans of subordinate scientific and technological organizations; compile the situation (in the form attached as Appendix V to this Circular) and send it to the Ministry of Science and Technology before December 31, 2006 for consolidation and submission to the Government.

4. This Circular shall take effect 15 days from the date of publication in the Official Gazette. During the implementation process, if there are any difficulties or new issues arising, they should be reported to the Ministry of Home Affairs, the Ministry of Finance, and the Ministry of Science and Technology for consideration and resolution./.