Joint Circular No. 12/2006/TTLT-BKHCN-BTC-BNV guiding the implementation of 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.

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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Pursuant to 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 issue guidelines for implementing certain provisions of the Decree as follows:

I. GENERAL PROVISIONS

1. Scope of application:

Public scientific and technological organizations (STOs) have legal personality, seals, and separate bank accounts, established by competent state management agencies with authority to establish them, including research institutes, research and technology development organizations, science and technology service organizations, organized under various forms such as institutes, centers, laboratories, research stations, monitoring stations, testing stations, and other research and development facilities under the Government, the Prime Minister, Ministries, ministerial-level agencies, government agencies, provincial People's Committees, central city People's Committees, universities, colleges, academies, and state-owned holding companies;

This Circular does not apply to STOs that have been converted into scientific and technological enterprises.

2. Explanation of Terms:

a) The competent state management agency authorized to establish STOs as stipulated in Decree No. 115/2005/NĐ-CP is the Government, the Prime Minister, Ministries, ministerial-level agencies, government agencies, provincial People's Committees, central city People's Committees.

b) The competent agency authorized to approve the Project on converting the organization and operation of STOs into self-financing STOs (hereinafter referred to as the Project) is Ministries, ministerial-level agencies, government agencies, provincial People's Committees, central city People's Committees, the Board of Directors of State Holding Companies, and the Rector of National Universities.

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

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

3. Conversion of Organization and Activities:

a) Research and technology development organizations and science and technology service organizations that have not yet ensured their own operating funds must convert their organization and activities into either self-financing or scientific and technological enterprises by no later than December 2009; otherwise, they will be merged or dissolved.

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

4. Timeframe for Building and Approving the Project:

a) Research and technology development organizations and science and technology service organizations shall prepare the Project (in accordance with the model attached as Appendix I to this Circular) and submit it to the supervising agency before September 30, 2006. If the STO has subordinate organizations undergoing conversion, the Project shall be based on the Projects of these subordinate organizations.

b) The approving agency shall be responsible for reviewing and issuing a decision to approve the Project before December 15, 2006.

In cases where the STO does not have a Project or the Project is not approved, the approving agency shall issue a decision requiring the STO to develop a plan for merger or dissolution.

5. STOs that undergo conversion may retain their previous names (institute, center) or change their names to suit their new operational form. The use of old names or name changes shall be decided by the STO and explained in the Project.

6. STOs engaged in basic research, strategic research, and policy research serving state management (exempt from mandatory conversion), 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 science and technology services into independent self-financing organizations directly under their management. These separated units, after fulfilling their obligations to the State as prescribed, shall contribute a portion of the surplus from their revenue exceeding expenses from business operations, production, and service activities to the STO directly managing them for general management and investment in developing 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 through selection and 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 selecting and 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 performing 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 content of scientific research contracts, technology transfer contracts, science and technology 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 cooperation, 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 right 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 right 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 shall be sent directly to the competent authorities managing exit and entry procedures for these staff members to handle their exit and entry formalities.

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 authority where the main office of the scientific and technological organization is located and obtain a Business Registration Certificate.

b) The business registration dossier includes:

- A business registration application (in accordance with the model for enterprises).

- The charter of the organization's structure and operation.

- The decision of the competent state management agency allowing the conversion into self-financing organizations.

- Organizations operating in fields and industries that require compliance with certain conditions as stipulated by law must have a permit issued by the competent state agency.

c) After conversion, scientific and technological organizations engaged in production, business, and 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. These organizations may not transfer state budget funds allocated 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.

III. FINANCIAL RESOURCES OF SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS

1. State budget funding includes:

a) Funding for scientific and technological tasks:

The state budget allocates funding for scientific and technological organizations according to the annual budget estimate approved by the competent authority.

b) Regular operational funding:

- Scientific research organizations performing basic research or strategic policy research serving state management (as provided for in Clause 3, Article 4 of Decree No. 115/2005/NĐ-CP) will have their regular operational funding guaranteed by the state budget in accordance with the corresponding task assignment method. Regular operational funding 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 funding (as provided for 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 have their regular operational funding guaranteed by the state budget up to the end of 2009 within the scope of the science and technology affairs budget allocated by the approving authority. The level of regular operational funding is determined in the project approval decision of 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 funding for the following year from the date of the merger or dissolution decision.

+ Scientific and technological organizations without projects or whose projects are not approved by the competent authority will only receive state budget support for regular operational funding until the end of 2007 at the level of funding provided in 2006. The 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 scope of the approved state budget 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 domestic and foreign individuals and organizations

4. Other financial resources of scientific and technological organizations, including: depreciation funds for fixed assets; proceeds from the liquidation of assets left behind 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 organization and other lawful sources of income. All revenues of scientific and technological organizations must be recorded and accounted for fully in accounting books.

IV. USE OF FUNDS

1. Expenditure for scientific and technological tasks:

Expenditure for scientific and technological tasks funded by the state budget applies the cost allocation system prescribed in another document issued by the Ministry of Finance and the Ministry of Science and Technology.

2. Payment for salary and additional 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 ranks, 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 ranks, 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 still lacking resources, they will be supplemented with state budget funds for the remaining expenses.

b) Expenditure on additional income beyond the prescribed level:

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

3. Establishing Funds:

Annually, after covering all reasonable expenses, fulfilling all obligations to the state as prescribed, including tax payments (if applicable), the remaining surplus from revenue and expenditure, organizations for Science and Technology are allowed to establish Funds as follows:

a) Fund for Developing Scientific Activities: at least 30% of the total surplus from revenue exceeding expenditure. The unit has the right to decide on the use of the Fund for Developing Scientific Activities to invest in developing and enhancing scientific activities, supplementing capital investment in constructing physical facilities, purchasing machinery, equipment, and work tools, funding research, applying technological advancements, joint ventures, collaboration, and supporting training and development activities for human resources within the unit.

b) Stabilization Income Reserve Fund: established based on 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 or job-seeking 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 construct and repair welfare facilities, fund collective welfare activities, provide emergency hardship assistance, and additional funding for retired, disabled, and contract-terminated workers.

The head of the unit bases decisions on the above provisions and the unit's financial capacity to determine specific levels of establishment and use of Funds according to internal expenditure regulations.

4. Expenditure for Other Activities:

a) For funds allocated from the state budget for basic construction investment, project counterpart funds, procurement costs 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/ND-CP), organizations for Science and Technology must use them for their intended purposes, comply 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/ND-CP, other expenditures are decided independently by organizations for Science and Technology 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 expenditure 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 explanations to competent authorities regarding 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, distribution according to labor and responsibilities of each position.

2. Apart from standards, norms, and expenditure contents for funds from the state budget, 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 scientific activities. Specifically, standards and norms for vehicle usage, office space, and non-recurring expenditures of organizations for Science and Technology must strictly follow current regulations.

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

3. Scope and Specific Contents of Internal Expenditure Regulations:

a) Regarding income: First, ensure the salary level according to grades, ranks, 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 increased revenue and cost savings will receive higher income.

b) Regarding conference expenses and domestic travel allowances: The unit may be specified with a higher or lower expenditure level than the state-prescribed level within the scope of the unit's budget 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 telephones for management staff and the costs for purchasing, installation, and network connection shall be implemented according to current regulations. Specifically, the payment levels for telephone usage fees may be set higher or lower than those prescribed by the State for administrative agencies.

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

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

g) Regarding expenditure levels for rewards and welfare: Based on the forms of rewards, available funds, and specific operational needs, scientific and technological organizations shall establish expenditure levels that may be 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 conference 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 controlling expenditures.

VI. METHODS OF ALLOCATING OPERATIONAL EXPENSES FOR REGULAR ACTIVITIES TO BASIC RESEARCH AND 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/NĐ-CP, shall have their annual operational expenses guaranteed by the state budget corresponding to their assigned functions and responsibilities as follows:

1. Scientific and technological organizations have the autonomy and responsibility to manage their regular operational expenses through annual allocation:

- They can proactively use allocated funds for salaries and organizational operations, and for implementing regular tasks within their functions to achieve maximum efficiency.

- They can decide on expenditure levels higher or lower than those prescribed by the State within the allocated budget, in accordance with the internal expenditure regulations of the unit.

2. Scientific and technological organizations prepare annual operational expense budgets for submission to competent state authorities for approval and inclusion in the annual plan. The amount of funding within the total budget estimate for state science affairs expenses assigned annually must not be lower than the amount allocated in 2005.

Basis for preparing the budget: Based on the regular tasks specified in the organization's charter and operational regulations, and current State expenditure regulations, to prepare the annual regular expense budget to carry out regular research tasks within their functions; this includes salary payments for actual staffing in 2005 and organizational operation expenses 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 functions, and the annual regular science and technology expenses to fulfill assigned tasks and adjust funding levels accordingly when there are changes in functions and responsibilities.

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 proposal preparation (according to Model II attached to this Circular), and propose management and utilization plans for assets and depreciation. Before approving the proposal of the scientific and technological organization, the competent state authority decides to form 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 Model III attached to this Circular).

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

3. After receiving the asset transfer decision from the competent authority, the unit head must develop an asset utilization plan and calculate depreciation and depreciation of the allocated fixed assets:

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

b) Assets allocated for scientific research, technology development, and training must establish a depreciation plan (including tangible and intangible depreciation) as the basis for determining asset value. If these assets are leased according to the law for services, the unit head's consent is required, and at least 30% of the rental income must be contributed to the unit's development fund for services after deducting depreciation costs according to state-owned enterprise regulations during the lease period.

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 their term of management, retirement, or job transfer, the unit head must hand over all unit assets to the successor in full.

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 allowed to depreciate quickly due to effective operations and the depreciation rate does not exceed twice the national standard, such organizations may independently decide on their liquidation.

The proceeds from depreciation and liquidation of assets sourced from state budget or self-owned funds shall be added to the Development Fund for the unit's operational activities.

The proceeds from depreciation and liquidation of assets sourced from borrowed capital shall be used to repay principal and interest on loans, and any surplus shall be used to supplement the Development Fund for the unit's operational activities.

VIII. INCENTIVE POLICIES:

1. Financial Incentive Principles for Science and Technology Organizations Transitioning:

Science and technology organizations transitioning to self-financing operational models are entitled to autonomy and responsibility, and enjoy financial incentives similar to newly established enterprises as stipulated in Decree 115/2005/NĐ-CP for business operations, while still benefiting from financial incentives for scientific and technological activities under current regulations.

2. During the transitional period and post-transition, science and technology organizations that continue scientific and technological activities must prepare financial reports detailing average growth rates over three years, submit them for confirmation by the supervising authority, and receive investment development support within the annual investment development budget allocated to ministries, sectors, and localities by competent state authorities.

3. The condition for receiving investment development support is based on the growth rate calculated from the state budget contributions and an annual growth rate of at least 10% over three consecutive years. For transitioning science and technology organizations engaged in tax-privileged products, the state budget contribution includes tax exemptions and reductions, serving as the basis for calculating growth rates.

4. Investment development funds allocated based on growth criteria can only be used for investing in physical infrastructure and purchasing equipment to enhance research capabilities of science and technology organizations.

Apart from the investment development funds allocated based on growth criteria, transitioning science and technology organizations also benefit from other investment projects like other science and technology organizations.

5. To encourage early transition before 2009, the State will provide a one-time funding support equivalent to a minimum of 50% of the total regular operating expenses of the remaining years, calculated based on the level of the year immediately preceding the transition year, and transferred into the Development Fund for the unit's investment development. Specific support levels are determined by the approving authority within the annual state budget allocation for science and technology operational activities of ministries, sectors, and localities.

IX. ORGANIZATION, STAFFING, AND RECRUITMENT OF CIVIL SERVANTS

1. The head of a science and technology organization has the right to decide on the restructuring and adjustment of organizational structures, define the functions and responsibilities of subordinate organizations, establish, merge, and dissolve subordinate organizations based on self-balancing resources to ensure the unit's operations.

2. The head of a science and technology organization has the right to appoint, reappoint, accept resignation, and dismiss heads and deputies of subordinate units, and is responsible for these decisions; selects and submits to higher-level supervisory authorities for decision-making on the appointment, reappointment, resignation, and dismissal of deputies of science and technology organizations.

The procedures and conditions for appointment, reappointment, resignation, and dismissal are carried out according to the regulations of the supervisory authority, consistent 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, issued by the Prime Minister).

3. Based on the nature, volume of work, and financial capacity, the head of a transitioning science and technology organization builds the annual staffing plan of the unit and sends it to the supervising authority for consolidation, monitoring, and inspection. The staffing plan must clearly specify the required number of staff, quality requirements, structure of civil servants, specific departments or units needing additional staffing, and the time frame for supplementation.

4. On the basis of the staffing plan, the head of a science and technology organization develops a recruitment plan for civil servants, specifying the time and method of recruitment; simultaneously developing plans for the utilization, training, and upgrading of cadres and civil servants corresponding to the recruitment plan.

5. Based on the staffing plan and recruitment plan, the head of a science and technology organization decides on the recruitment of civil servants through competitive examinations or selection, depending on the professional characteristics of each field requiring recruitment and the specific conditions of each science and technology organization. Recruitment of civil servants must comply with legal provisions and requirements regarding professional standards, political and moral qualities of the candidates, as stipulated in laws and guiding documents on the recruitment, employment, and management of cadres and civil servants in state-run public institutions.

6. Successful candidates recruited are appointed to positions and assigned salaries by the head of the science and technology organization according to the national regulations for research officer ranks and below.

7. Promotion of civil servants in science and technology organizations is implemented according to the guidelines of the specialized rank management agency.

X. EMPLOYMENT CONTRACTS, LABOR CONTRACTS, TASK ASSIGNMENT CONTRACTS

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

2. For officials who were recruited into the establishment of state administrative and public service organizations prior to July 1, 2003, and are currently working at science and technology organizations, the head of the science and technology organization shall enter into indefinite-term employment contracts with them before December 31, 2006. The head of the supervising agency shall enter into employment contracts with the heads and deputy heads of the science and technology organizations.

3. Science and technology 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.

4. The head of the science and technology 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 science and technology organization or previously at administrative agencies or state public service organizations) and meet other specified criteria may be considered for appointment to leadership positions in science and technology organizations.

XI. INCREMENT OF SALARY

1. The head of the science and technology organization has the authority to decide on regular salary increments for officials, employees, 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 science and technology organization selects individuals with achievements recognized by the collective to decide on early salary increments or additional increments for officials and employees from the rank of principal researcher and below, as follows:

a) Early salary increments of six months to one year for employees who have not violated 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 that has been successfully completed.

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

- Being awarded a commendation by the Prime Minister or two commendations by the Minister, the head of an agency at the ministerial level, 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 employees who have not violated 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, patent, or useful solution registered and recognized both domestically and abroad.

- Being awarded a medal of any type.

- Being conferred a national honor such as Hero of Labor, Hero of the People's Armed Forces, National Model Worker, People's Teacher, Outstanding Teacher, People's Doctor, Outstanding Doctor, and other national honors.

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

XII. RESPONSIBILITIES OF THE HEAD OF THE SCIENCE AND TECHNOLOGY ORGANIZATION

The head of the science and technology 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/ND-CP. Some specific contents are defined as follows:

1. The head of the science and technology organization reports to the Party Committee of the science and technology 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 science and technology 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 employment regulations for cadres, employees, and workers.

đ) Loan and investment support schemes.

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

When the Party Committee and the Trade Union Executive Board have inconsistent views with the head of the science and technology organization on the above matters, each organization shall report in writing to its higher-level organization, and the head of the science and technology organization shall report in writing to the direct supervising agency for comments before making a decision.

4. When the head of the science and technology 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/ND-CP.

5. The head of the science and technology organization is responsible for implementing democratic regulations, maintaining internal unity, caring for the improvement of material and spiritual benefits for cadres, employees, 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 Committee to organize the annual staff conference in accordance with regulations; fully implement the information and regular reporting system according to the prescribed 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 in accordance with 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 within 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 proposal in accordance with the guidelines set forth in Appendix I of this Circular.

4. Draft the charter governing the organization's structure and operations.

5. Report the transition proposal at the full staff meeting of the unit. The resolution approving the proposal at the full staff meeting of the unit shall only be valid if more than two-thirds of the total number of staff members agree.

6. Submit the transition proposal to the supervising authority within the prescribed time limit.

7. Upon approval of the proposal, implement the contents of the proposal. In case the proposal is not approved, the organization must develop a merger or dissolution plan to submit to the competent state management agency by the end of 2007.

XIV. IMPLEMENTATION

1. The supervising authority shall be responsible for:

a) Reviewing and appraising the transition proposal 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 proposal. In cases where there are multiple supervising authorities, the scientific and technological organization shall submit the proposal to the direct supervising authority, which will review the proposal together with other supervising authorities and submit their appraisal opinions to the competent authority for approval within a total period not exceeding 15 days. If the proposal of the scientific and technological organization does not meet the requirements, the supervising authority may request the organization to amend and supplement the proposal, thereby extending the review and submission period to the competent authority for approval but not exceeding 30 days from the date the organization submits the proposal 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 heads of subordinate scientific and technological organizations in accordance with the law.

2. The competent authority approving the proposal shall examine and issue a decision to approve the transition proposal of the scientific and technological organization (in the form attached as Appendix IV to this Circular) within 30 days from the date of receipt of the proposal submitted by the scientific and technological organization or its supervising authority. If the proposal of the scientific and technological organization does not meet the requirements, the competent authority approving the proposal may request the supervising authority to take the lead and coordinate with the scientific and technological organization to amend and supplement the proposal, thereby extending the approval period but not exceeding 45 days. If the scientific and technological organization fails to develop a proposal or the proposal is not approved, the competent authority shall issue a decision requiring the organization to develop a merger or dissolution plan by the end of 2007.

3. Ministries, ministerial-level agencies, government-affiliated agencies, provincial people's committees under central cities, and boards of directors of state-owned corporations shall base themselves on this guiding circular to instruct research and technology development organizations and science and technology service organizations to develop transition proposals, approve transition proposals 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 after its 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./.