Joint Circular No. 1308/TC-KHKT guides the regime for recovering funds from scientific and technological activities.

CIRCULAR

Cof the State Science Committee and the Ministry of Finance
Decision No. 1308/TC-KHKT dated November 24, 1990 guiding the regime for recovering funds for scientific and technological activities

To encourage units implementing scientific and technological (S&T) tasks to effectively utilize the allocated funds and to mobilize a portion of the recovered funds to supplement the investment capital for scientific research, technology deployment, and application of technical progress; the State Science Committee and the Ministry of Finance guide the regime for recovering a portion of the state budget funds allocated for S&T activities as follows:

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. Units implementing S&T tasks shall be responsible for recovering a portion of the state budget funds allocated for S&T activities when selling research products, trial products, waste materials, and unused materials and equipment during the implementation process or upon completion of the entire research project.

2. The recovered funds shall retain a portion for the unit implementing S&T tasks, with the remainder to be submitted to the State Science Committee to establish a national fund for supporting S&T development.

II. CONTENT OF RECOVERED FUNDS

Recovered funds from the S&T activity budget funded by the state budget include:

1. Products created by S&T research and trial projects that are sold on the market.

2. Revenue from the sale of waste materials and by-products during the implementation of the aforementioned projects.

3. Revenue from the sale of surplus materials after the completion of the aforementioned projects.

4. Fixed assets and specialized tools purchased using state budget funds for the implementation of the aforementioned projects, which may be sold off to the state budget if not needed by the unit after project completion.

In cases where the unit needs these assets, they can be supplemented to the unit's fixed capital and managed according to current regulations.

The prices for calculating product value and recovery value are based on market prices at the time of contract signing and adjusted according to actual sales prices when settling and finalizing the contract.

III. DISTRIBUTION AND USE OF RECOVERED FUNDS

The recovered funds from the aforementioned S&T activities shall be distributed and used as follows:

1. For S&T research projects implemented under contracts signed between the implementing unit and the State Science Committee.

a) For the recovered funds mentioned in Points 1 and 2 of Part II of this Circular, the implementing unit must return 70% of the value of the produced goods and recovered waste materials and by-products, and at least 30% of the state budget funds allocated for the contract to the State Science Committee. The remaining amount can be used to establish funds according to current regulations.

b) For the recovered funds mentioned in Points 1 and 2 of Part II of this Circular, the implementing unit must submit 100% of the value of surplus materials and residual value of fixed assets to the State Science Committee to establish a national fund for supporting S&T development.

2. For research and testing projects of Ministries, General Departments, the recovered funds shall be distributed according to Point 2, Section B, Part V of Circular No. 03/TC-KHKT dated January 28, 1984 of the Ministry of Finance and the State Science and Technology Committee, specifically:

- 20% to the state budget

- 30% to the centralized S&T development fund of the Ministry

- 50% divided as follows:

+ 40% to the S&T development fund of the institution

+ 40% to the award fund

+ 20% to the welfare fund

3. Starting from 1990, the state budget will allocate a portion of the total investment for S&T to support production trials and testing projects carried out through direct contracts between the State Science Committee and the leading agency implementing the production trial and testing projects. The recovered funds from the aforementioned production trial and testing support shall be used by the State Science Committee to establish a national fund for supporting S&T development at a rate of 80 to 100%. The recovery rate will be determined in each S&T contract. Exemption or reduction of the recovery rate of support funds will only be considered in cases of natural disasters or unexpected risks during the implementation of production trial and testing projects, and will be approved specifically upon acceptance of the S&T contract.

4. Management and implementing units of S&T tasks must maintain detailed records of the recovered funds mentioned above, and the implementing units must submit the recovered funds to the State Science Committee according to the prescribed ratio and in accordance with the terms of the signed S&T contract.

IV. MANAGEMENT OF THE NATIONAL FUND FOR SUPPORTING S&T DEVELOPMENT

1. The State Science Committee shall use the recovered funds mentioned in Point 1 and 3 of Part III of this Circular to establish a national fund for supporting S&T development.

The State Science Committee must open a separate account at the National Treasury to monitor and manage the fund for supporting S&T development.

The income and expenditure of the fund for supporting S&T development shall be recorded in the state budget according to the chapter, type, item, and sub-item of the state budget as follows:

Record income in Chapter 11, Type 10, Item 01, Sub-item 14.

Record expenditure in Chapter 11, Type 10, Item 01, Sub-item 75.

This fund shall not be deducted from the annual state budget investment for S&T activities approved by the National Assembly and the Council of Ministers.

2. The State Science Committee is responsible for using the S&T development fund efficiently according to the following general principles:

a) For urgent S&T tasks not included in the annual plan.

b) As temporary advances to ensure the progress of S&T research projects already planned for the year while waiting for state budget funds.

c) To supplement production trial and testing projects.

This fund shall not be used to cover price increases or new state policies.

3. The State Science Committee may allocate 0.5% of the total recovered funds actually deposited in the treasury account to cover management costs and bonuses for individuals involved in recovery tasks. Any unspent balance at the end of the year may be carried over to the next year.

V. IMPLEMENTATION PROVISIONS

This Circular takes effect from the date of signature. During implementation, if there are difficulties or obstacles, please report them to the relevant ministries, general departments, state committees, and other S&T activity agencies for the joint ministry to study and resolve.

Pursuant to this Circular, the Ministries, General Departments... and localities shall issue specific guidelines on the regime for recovering funds from sources under the State budget allocated to science and technology tasks managed by themselves.