Decree No. 122/2003/NĐ-CP On the establishment of the National Science and Technology Development Fund

DECREE

Regarding the establishment of the National Science and Technology Development Fund

___________________ 

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Science and Technology dated June 9, 2000;

At the proposal of the Minister of Science and Technology,  

DECREE:

Article 1. Establishes the National Science and Technology Development Fund in accordance with Article 39 of the Law on Science and Technology.

Article 2. Enacts the Charter regarding the organization and operation of the National Science and Technology Development Fund together with this Decree.

Article 3. This Decree takes effect fifteen days after its publication in the Official Gazette.

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.

CHARTER ON THE ORGANIZATION AND OPERATIONS OF

THE NATIONAL SCIENCE AND TECHNOLOGY DEVELOPMENT FUND

(Enacted together with Decree No. 122/2003/NĐ-CP

dated October 22, 2003 of the Government)

 

PART I

GENERAL PROVISIONS

Article 1. Functions of the National Science and Technology Development Fund

The National Science and Technology Development Fund (hereinafter referred to as the Fund) operates without profit-making objectives and has the function of providing grants and loans to implement scientific and technological tasks proposed by organizations and individuals.

The international trading name of the National Science and Technology Development Fund is National Foundation for Science and Technology Development, abbreviated as NAFOSTED.

Article 2. Legal Status of the Fund

The Fund is under the Ministry of Science and Technology, has legal personality, its own seal, and is entitled to open accounts at the State Treasury and domestic and foreign banks. The Fund's main office is located in Hanoi City, with representative offices in Ho Chi Minh City and other regions.

Article 3. Recipients of Grants and Loans from the Fund

1. Basic research, urgent scientific and technological tasks newly emerging with significant scientific and practical importance, and scientific and technological tasks with promising prospects but high risk;

2. Pilot production projects; scientific and technological tasks within the priority areas of science and technology of the State implemented by enterprises;

3. Projects applying and transferring scientific and technological research results to enhance product competitiveness and the effectiveness of economic and social activities.

Article 4. Conditions for Receiving Grants and Loans

1. Organizations and individuals proposing scientific and technological tasks must have sufficient professional capacity and appropriate material and technical conditions for each type of scientific and technological task.

2. Organizations and individuals borrowing funds from the Fund to implement application projects of scientific and technological research results must comply with relevant laws.

Article 5. Principles of Granting and Lending by the Fund

1. Scientific and technological tasks proposed by organizations and individuals for grants and loans from the Fund shall be selected openly, democratically, and equally through the Science and Technology Council established by the Fund.

2. The content of research funded by the Fund shall not overlap with research already or currently being conducted using the Fund’s resources or other State resources.

3. The Fund provides grants and loans to implement scientific and technological tasks that are not part of national, inter-sectoral, regional programs, topics, or projects in the State plan, and are proposed by organizations and individuals from all economic sectors.

 

Chapter II

TASKS, LIMITATIONS, ORGANIZATIONAL STRUCTURE AND OPERATIONS OF THE FUND

Article 6. Tasks and Authorities of the Fund

1. Receiving state capital sources; mobilizing voluntary contributions from domestic organizations and individuals, and foreign organizations and individuals to finance and lend for implementing scientific and technological tasks; managing and using the Fund's capital sources for their intended purposes effectively.

2. Announcing priority directions, contents, requirements, and specific formats for all organizations and individuals to propose suitable scientific and technological tasks to request the Fund to finance and lend.

3. Organizing the selection process for scientific and technological tasks to be financed and lent by the Fund.

4. Inspecting and evaluating the professional content and financial aspects of scientific and technological tasks financed and lent by the Fund.

5. Organizing the acceptance and evaluation of results from the implementation of scientific and technological tasks financed and lent by the Fund.

6. Suspending financing and lending or recovering funds already financed and lent when discovering that organizations and individuals implementing scientific and technological tasks violate regulations on the use of Fund capital.

7. Resolving complaints or lawsuits against organizations and individuals who breach contracts and commitments with the Fund according to the law.

8. Managing and utilizing state capital assigned and other resources according to the Fund’s Charter and relevant laws.

9. Managing the organization and staff of the Fund according to the law.

10. Issuing operational regulations and other provisions serving the activities of the Fund.

11. Cooperating with foreign organizations and international organizations on issues related to the Fund's activities.

Article 7. Management and Operation Structure of the Fund

The management and operation structure of the Fund includes the Fund Management Board, the Executive Agency, and the Audit Committee.

Article 8. Management Board of the Fund

1. The Fund Management Board consists of nine members who are scientists and managers serving concurrently for a five-year term. The Chairman, Vice Chairmen, and members are appointed and relieved by the Minister of Science and Technology based on recommendations from scientific and technological organizations and management agencies.

2. Tasks and authorities of the Fund Management Board:

a) Deciding on the direction and plan of operations of the Fund based on the state's priority development directions for science and technology; the method of financing and lending by the Fund;

b) Approving the financial plan and annual settlement report of the Fund submitted by the Fund Director;

c) Establishing the Scientific and Technological Council and other advisory councils to advise on selecting scientific and technological tasks, evaluating the acceptance of results from the implementation of scientific and technological tasks, and other related issues;

d) Approving the activity plan and report of the Audit Committee;

đ) Supervising and inspecting the activities of the Executive Agency and the Audit Committee in implementing state regulations, the Fund’s Charter, and decisions of the Fund Management Board;

e) Issuing necessary regulations within its authority.

3. Working system of the Fund Management Board:

a) The Fund Management Board convenes regularly once every three months to examine and decide on matters within its tasks and authorities; convening extraordinary meetings to address urgent issues upon the proposal of the Fund Management Board Chairman, the Fund Director, the Audit Committee Head, or when at least two-thirds of the Fund Management Board members propose;

b) All meetings of the Fund Management Board must have at least two-thirds of the Fund Management Board members present and must be chaired by the Fund Management Board Chairman or the Deputy Chairman authorized by the Chairman. The Fund Management Board decides matters by majority vote among the total number of Fund Management Board members. The content and decisions of the Fund Management Board meeting must be recorded in minutes and sent to all Fund Management Board members.

4. Fund Management Board members have the duty to fully participate in activities according to the Fund Management Board's regulations; they are entitled to remuneration and other benefits according to state regulations.

5. The Fund Management Board uses the machinery of the Executive Agency and the Fund seal in performing its tasks and authorities according to the Charter. The operating costs of the Fund Management Board are included in the Fund's operational expenses.

Article 9. Management Body of the Fund

The management body of the Fund includes the Director of the Fund, Deputy Directors of the Fund, specialized units, operational units, and representative offices.

1. The Director of the Fund is the legal representative of the Fund appointed and dismissed by the Minister of Science and Technology based on the proposal of the Fund's Management Board. The Director of the Fund has the following tasks and powers:

a) Organizing, managing, and directing the activities of the Fund's management body in accordance with the Charter of the Fund and decisions of the Fund's Management Board;

b) Managing personnel, assets, and capital of the Fund;

c) Deciding on the appointment and dismissal of heads and deputies of specialized and operational units, and representative offices of the Fund;

d) Participating in meetings of the Fund's Management Board, providing opinions on matters discussed by the Fund's Management Board, but without voting rights.

2. Deputy Directors of the Fund are appointed and dismissed by the Minister of Science and Technology upon the recommendation of the Director of the Fund. Deputy Directors assist the Director in performing assigned tasks.

3. Specialized and operational units and representative offices of the Fund are decided by the Fund's Management Board and the Director of the Fund, and approved by the Minister of Science and Technology.

Article 10. Supervisory Board of the Fund

1. The Supervisory Board of the Fund consists of 3 to 5 members, including the Chairman, Vice-Chairman, and other members appointed and dismissed by the Fund's Management Board. Members of the Supervisory Board of the Fund must not be spouses, parents, children, or full siblings of members of the Fund's Management Board, the Director of the Fund, or Deputy Directors of the Fund. Members of the Supervisory Board must have expertise in financial, accounting, banking, and legal fields, and serve for a term of 5 years.

2. The Supervisory Board of the Fund has the following tasks and powers:

a) Inspecting and reporting to the Fund's Management Board on the implementation of the Fund's Charter and decisions of the Fund's Management Board;

b) Operating independently according to a program approved by the Fund's Management Board;

c) Considering and submitting to competent authorities for resolution complaints from organizations and individuals related to the Fund's operations.

3. The Chairman of the Supervisory Board of the Fund or members of the Supervisory Board authorized to attend meetings of the Fund's Management Board may express opinions on matters discussed by the Fund's Management Board, but without voting rights.

4. The operating expenses of the Supervisory Board are included in the Fund's operating costs.

Article 11. Scientific and Technological Advisory Council

1. The Scientific and Technological Advisory Council is established by the Fund's Management Board based on the proposal of the Director of the Fund to advise on selecting scientific and technological tasks; evaluating and accepting the results of scientific and technological tasks. Members of the Scientific and Technological Advisory Council are proposed by the Director of the Fund and decided by the Chairman of the Fund's Management Board.

2. The Scientific and Technological Advisory Council operates under regulations proposed by the Fund's Management Board and decided by the Minister of Science and Technology.

 

Chapter III

CAPITAL AND USE OF CAPITAL

Article 12. Sources of Capital for the Fund's Operations

1. The Fund receives an initial capital of 200 billion VND from the state budget for science and technology at its establishment. Annually, the Fund receives additional funding to ensure its operational capital from the state budget, which is at least 200 billion VND.

2. The Fund can mobilize non-budgetary capital sources:

a) Voluntary contributions and donations from domestic organizations and individuals, international organizations, and foreign organizations and individuals;

b) Interest income from loans to projects applying research outcomes and developing technology.

3. Other sources.

Article 13. Methods of Financial Support from the Fund

1. Full or partial non-repayable funding for the implementation of scientific and technological tasks proposed by organizations and individuals, including:

a) Basic research in fields of science;

b) Emergent scientific and technological tasks of significant importance to both science and practice; scientific and technological tasks with promising prospects but high risk;

c) Publishing scientific and technological works.

2. Repayable funding from 60% to 100% of capital for experimental production projects not included in the State's scientific and technological development plan.

3. Non-repayable funding not exceeding 30% of costs for enterprises implementing scientific and technological tasks prioritized by the State.

4. Interest-free loans for projects applying research and development results created domestically.

5. Loans with low interest rates for technology innovation projects, focusing on high-tech, clean technology, and technology producing highly competitive products.

6. The capital allocated for loans under Clause 4 and Clause 5 of this Article shall not exceed 20% of the capital provided by the State budget to the Fund.

Article 14. Selection and Evaluation of Research Topics and Projects

1. Within thirty days from the date the Fund’s plan is approved by the competent authority, the Fund publicly announces its direction, priority areas, and regulations regarding funding and lending.

2. Organizations and individuals engaged in scientific and technological activities, and Vietnamese enterprises wishing to be funded or lent must submit applications according to the Fund’s regulations.

3. The Scientific and Technological Council evaluates and selects scientific and technological tasks for the Fund to fund and lend.

4. The funding and lending by the Fund for scientific and technological tasks are carried out through scientific and technological contracts.

5. Mid-term evaluations and final acceptance evaluations of scientific and technological tasks are conducted based on signed scientific and technological contracts.

6. Costs for the Scientific and Technological Council are included in the Fund’s management expenses.

7. The Fund Management Board issues regulations for selecting scientific and technological tasks according to the following principles:

a) Selected scientific and technological tasks must comply with the provisions of Article 3 of these Bylaws;

b) Research outlines must meet criteria for scientific validity and feasibility;

c) Proposers of scientific and technological tasks must have the necessary qualities and capabilities to undertake them.

Article 15. Responsibilities of Organizations and Individuals Using Fund Funds

1. To use funds for their intended purposes as approved by the Fund's budget.

2. To fulfill all commitments to the Fund and comply with the Fund's regulations.

3. Results of scientific and technological tasks must be published as stipulated by the Fund.

Article 16. Financial and Accounting Regulations

1. The Fund implements accounting regulations as prescribed by law.

2. Annually, the Fund prepares a budget of expected revenues and expenditures for review and approval by the Minister of Science and Technology.

3. Annually, the Fund prepares a financial settlement report for submission to the Minister of Science and Technology for review and inspection as required.

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

5. The Fund’s management and operational expenses are used for the operation of the Fund’s management and administration machinery as currently regulated by the State.

 

Chapter IV

IMPLEMENTING PROVISIONS

Article 17. Implementation Provisions

Amendments and supplements to these Bylaws are submitted by the Minister of Science and Technology to the Prime Minister for decision./.