Decree No. 141/2016/NĐ-CP on the mechanism of autonomy for public service units in the economic service sector and other services.

DECREE

Regulations on the autonomy mechanism of public service units

in the economic public service sector and other public services

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Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the State Budget Law dated June 25, 2015;

Based on the Law on State Asset Management and Use dated June 3, 2008;

Pursuant to the Law on Public Officials dated November 15, 2010;

Pursuant to the Price Law dated June 20, 2012;

promulgates this Decree stipulating the environmental protection fees for mineral exploration and exploitation.

The Government promulgates this Decree to regulate the autonomy mechanism of public service units in the economic public service sector and other public services.

PART I

GENERAL PROVISIONS

Article 1. Scope of application

1. This Decree regulates the autonomy mechanism of public service units in the economic public service sector and other public services: agriculture and rural development, natural resources and environment, transportation, industry and trade, construction, labor, invalids and social affairs, judiciary, other public services.

2. This Decree does not apply to public service units in the following sectors: health; education and training; vocational training; culture, sports and tourism; information and communication and press; science and technology.

Article 2. Applicability

1. Public service units in the economic public service sector and other public services established by state authorities with competent authority according to the law, having legal personality, providing public service products serving state management (hereinafter referred to as economic public service units, other public service units).

2. Economic public service units, other public service units under the Ministry of National Defense, the Ministry of Public Security, political organizations, political-social organizations (if any) shall apply the provisions of this Decree and other relevant laws.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. "Autonomy mechanism of public service units in the economic public service sector and other public services" means regulations on the rights to self-management and self-responsibility in performing tasks, organizational structure, personnel, and finance of public service units in the economic public service sector and other public services.

2. "Public service products in the economic public service sector and other public services" means public service products in the fields of agriculture and rural development, natural resources and environment, transportation, industry and trade, construction, labor, invalids and social affairs, judiciary, other public services.

3. "Public service products in the economic public service sector and other public services using state budget funds" means public service products for which the state guarantees all costs or has not fully covered costs in prices or fees, supported by the state budget.

4. "Public service products in the economic public service sector and other public services not using state budget funds" means public service products with high socialization conditions, not supported by the state budget, service product prices determined according to market mechanisms.

Article 4. State management over public service products and economic public service units, other public service units economy, public service, other

1. Establishing laws on state management; encouraging, creating favorable conditions, establishing a fair competitive environment for organizations and individuals from all economic sectors to participate in providing public service products in the economic public service sector and other public services.

2. Planning the network of economic public service units, other public service units by industry and field; issuing a list of public service products using state budget funds, economic-technical norms applicable to public service products in the economic public service sector and other public services managed by the state; regulations on tendering, ordering, assigning tasks to supply public service products in the economic public service sector and other public services.

3. Specifying quality criteria, supervision, evaluation, inspection mechanisms for the quality of public service products in the economic public service sector and other public services; effectiveness of operations of economic public service units, other public service units.

4. Specifying the roadmap for sufficient pricing and fees for public service products to enable economic public service units, other public service units to implement and directly support policy beneficiaries using public service products in the economic public service sector and other public services.

5. Specifying procedures and conditions for establishment, restructuring, dissolution, and operation of economic public service units, other public service units; reorganizing and converting economic public service units, other public service units according to approved planning; delegating autonomy to subordinate economic public service units, other public service units.

6. Regulations on converting economic public service units, other public service units into non-state entities or enterprises.

7. Issuing mechanisms and policies to encourage socialization of activities related to public service products in the economic public service sector and other public services.

8. Inspecting, supervising, and penalizing violations in the provision of public service products in the economic public service sector and other public services.

Chapter II

AUTONOMY MECHANISM OF ECONOMIC PUBLIC SERVICE UNITS AND OTHER PUBLIC SERVICE UNITS

Section 1

AUTONOMY IN PERFORMING TASKS, ORGANIZATIONAL STRUCTURE, AND PERSONNEL

Article 5. Autonomy in performing tasks

1. Autonomy in developing activity plans

Annually, the unit develops an activity plan consistent with its functions, tasks, and capabilities as prescribed by law.

a) For public service products in the economic public service sector and other public services not using state budget funds: The unit independently develops an activity plan to perform tasks, reports to the superior management agency for monitoring, checking, and supervising the implementation;

b) For public service products in the economic public service sector and other public services using state budget funds: The unit develops an activity plan, reports to the superior management agency for approval and decides on the method of assigning the plan to the unit for implementation.

2. Autonomy in organizing task implementation

a) Determining measures to implement tasks according to the unit's plan, the superior agency's plan, ensuring quality and progress;

b) Participating in tenders to supply public service products suitable to the unit's specialized field as assigned by the competent authority;

c) Jointly operating with organizations and individuals to provide services meeting societal needs in accordance with the law.

Article 6. Autonomy in Organizational Structure

Economic public service units and other public service units shall decide to establish, reorganize, or dissolve units that are not part of their organizational structure according to the decision of the competent authority, provided they meet the conditions stipulated by law; they shall develop plans for restructuring constituent units to be submitted to the competent authority for decision.

For economic public service units and other public service units that self-fund a portion of their regular expenses and those that are fully funded by the State for regular expenses: They shall develop plans for restructuring and improving the organizational structure of the unit to be submitted to the competent authority for decision.

Article 7. Autonomy in Human Resources

1. Economic public service units and other public service units that self-fund regular and investment expenses and those that self-fund regular expenses shall determine job positions and the staff structure according to occupational titles suitable for the functions and tasks assigned.

Economic public service units and other public service units that partially self-fund regular expenses and those fully funded by the State budget for regular expenses shall develop job positions and the staff structure according to occupational titles to be submitted to the competent authority for approval.

The recruitment, utilization, appointment, dismissal, commendation, disciplinary action, and management of civil servants and employees, including hiring labor contracts to perform the tasks of economic public service units and other public service units, shall be carried out in accordance with the provisions of the law.

2. Provisions on the number of employees

a) Economic public service units and other public service units that self-fund regular and investment expenses and those that self-fund regular expenses shall determine the number of employees.

b) Economic public service units and other public service units that partially self-fund regular expenses shall propose the number of employees of the unit to be submitted to the competent authority for decision.

c) Economic public service units and other public service units fully funded by the State budget for regular expenses shall propose the number of employees based on the average staffing level over the past five years and not exceeding the current staffing level of the unit, to be submitted to the competent authority for decision (for newly established public service units that have not operated for five years, the average staffing level will be calculated based on the entire period of operation).

3. In cases where the unit has not yet developed job positions and the staff structure according to occupational titles, the number of employees shall be determined based on the average staffing level of previous years, following the guidelines of the Ministry of Home Affairs.

4. Principles and methods for determining job positions; the authority, procedures, and formalities for determining job positions and the authority to manage job positions in economic public service units and other public service units shall be implemented in accordance with the provisions of the law regarding job positions in public service units.

Article 8. Management Board

1. Economic public service units and other public service units that self-fund regular and investment expenses must establish a Management Board to decide important issues of the unit.

2. The Management Board decides on the medium-term strategy and annual plan of the unit; decides on major policies for expanding activities, establishing, reorganizing, or dissolving subordinate units; decides on major policies concerning organization and human resources (appointment, commendation, disciplinary action for civil servants; specifically, the number of employees shall be implemented in accordance with point a, Clause 2, Article 7 of this Decree); approves the regulations on the organization and operation of the unit to be submitted to the competent authority for decision; approves the annual financial settlement report, implements checks and supervision of the implementation of plans, the implementation of democratic regulations, and decides other important issues of the unit in accordance with the provisions of the law.

3. The Management Board shall consist of from five to eleven members, including representatives of the superior management agency; the Chairman and members of the Management Board shall be appointed by the authority that decides to establish the unit.

4. The establishment, functions, duties, powers, organizational structure of the Management Board in economic public service units and other public service units; the operational regulations of the Management Board; the relationship between the Management Board and the head of economic public service units and other public service units and the superior management agency shall be implemented in accordance with the guidelines of the Ministry of Home Affairs, relevant ministries, sectors, and localities for public service units under their management.

Section 2

FEES AND CHARGES FOR PUBLIC SERVICES IN THE FIELD OF

ECONOMIC PUBLIC SERVICE UNITS AND OTHER PUBLIC SERVICE UNITS

Article 9. Price and Fee for Public Services

1. Price for Public Services

a) For public services not using state budget funds:

Economic public institutions and other public institutions shall determine the price of public services according to market mechanisms, decide on revenue amounts and levels to ensure reasonable cost recovery with accumulation as prescribed.

b) For public services using state budget funds:

- The price of public services shall be determined based on economic and technical norms, cost standards issued by competent authorities and the schedule for full cost recovery as stipulated in Article 10 of this Decree; in which the salary cost in the price of public services shall be calculated based on the basic salary level, salary coefficient for rank, grade, position, and salary allowances according to regulations applicable to public institutions and labor norms issued by ministries, central agencies, and provincial People's Committees (hereinafter referred to as provincial People's Committees) within their respective jurisdictions.

- Pricing methods, pricing authority, and procedures for public services shall be carried out in accordance with laws on prices.

2. Fee for Public Services

Economic public institutions and other public institutions authorized to collect fees may collect fees at rates prescribed by competent state agencies for public services listed under fee and surcharge laws.

Article 10. Schedule for calculating the price of public services funded by state budget

1. Schedule for calculating the price of public services

a) By 2016: Calculate sufficient salary costs and direct costs (excluding management costs and depreciation of fixed assets);

b) By 2018: Calculate sufficient salary costs, direct costs, and management costs (excluding depreciation of fixed assets);

c) By 2020: Calculate sufficient salary costs, direct costs, management costs, and depreciation of fixed assets.

2. Based on actual conditions, units may implement the price schedule for public services earlier than stipulated in Clause 1 of this Article.

3. Continue implementing prices that cover full costs for public services currently ordered by the State according to full cost prices.

4. Ministries: Agriculture and Rural Development, Natural Resources and Environment, Transport, Industry and Trade, Construction, Labor, Invalids and Social Affairs, Justice, relevant central agencies, and provincial People's Committees shall, based on the provisions on the price of public services in Clause 1 of Article 9 of this Decree, the price calculation schedule in Clause 1 of this Article, the capacity of the state budget, and the payment capacity of beneficiaries, determine the prices of public service categories issued by competent authorities under Clause 1 of Article 11 of this Decree.

Article 11. List of Public Services Using State Budget Funds in the Economic Public Service Sector and Other Public Services

1. The list of public services using state budget funds in the economic public service sector and other public services shall be issued by competent state agencies:

a) Ministers of the Ministries of Agriculture and Rural Development, Natural Resources and Environment, Transport, Industry and Trade, Construction, Labor, Invalids and Social Affairs, Justice, and other relevant ministries and heads of central agencies (for other public service lists if applicable) shall determine the list of public services using state budget funds of their ministries and agencies according to specialized laws, submit to the Prime Minister for decision after obtaining opinions from the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Home Affairs, and related ministries and agencies;

b) Chairmen of provincial People's Committees shall decide on the list of public services using state budget funds according to specialized laws within their jurisdiction.

2. Based on the list of public services stipulated in Clause 1 of this Article, ministries, central agencies, and provincial People's Committees shall decide or delegate subordinate agencies to select economic public institutions and other public institutions to provide public services through ordering, assigning tasks, or tendering as prescribed.

Section 3

SELF-FINANCING

Article 12. Financial autonomy for economic public service units and other public services self-guaranteeing regular expenditures and investment expenditures

1. Sources of finance for the unit

a) Revenue from public service activities in the economic public service sector and other public services;

b) State budget funds for ordering and assigning tasks to provide public services in the economic public service sector and other public services at prices covering costs (including: salary costs, direct costs, management costs, and depreciation costs of fixed assets);

c) Fees revenue according to laws on fees and charges left for expenditure as prescribed by laws on fees and charges;

d) Other revenue sources (if any), including:

- Dividends from joint venture and joint operation activities;

- Bank deposit interest;

- Other revenue sources as prescribed by law;

đ) Non-recurring state budget funds (if any), including:

- Scientific and technological program implementation funds (for units that are not scientific and technological organizations);

- National target program funds; other programs, projects, and proposals;

- Counterpart funds for implementing projects as decided by competent authorities;

- Development investment capital for approved projects by competent authorities (if any);

- Funds for urgent tasks assigned by competent authorities;

e) Borrowed capital, aid, and sponsorship as prescribed by law;

g) Other sources, including:

- Loans from credit institutions and funds raised from staff within the unit;

- Joint venture and joint operation capital from domestic and foreign organizations and individuals as prescribed by law;

- Other sources (if any).

2. Use of financial resources

a) Investment expenditures from the Public Service Development Fund, borrowed capital, and other lawful financial sources.

- Based on investment needs and financial balancing capabilities, the unit proactively builds a list of investment projects, reports to competent authorities for approval. On the basis of the approved project list, the unit decides on investment projects, including contents such as scale, construction plans, total capital, sources of capital, phased implementation periods according to laws on investment.

- Economic public service units and other public service units may borrow preferential loans from the State or be supported with interest rates for investment projects using loans from credit institutions as prescribed.

- Based on the development requirements of the unit, the State considers allocating capital for ongoing investment projects and other investment projects as decided by competent authorities..

b) Regular expenditures: The unit is allowed to use the financial resources allocated for autonomy as stipulated in points a, b, c (the portion retained for regular expenditures to cover fee collection expenses) and point d of Clause 1 of this Article for regular expenditures. Some expenditure items are specified as follows:

- Salary expenditure: The unit pays salaries according to the salary grade, position, and allowances prescribed by the State for public service units.

When the State adjusts salaries, the unit must ensure additional salary increases from its own revenue, and the State budget will not provide supplementary funding.

- Professional activity expenditure, management expenditure

For expenditure items that have established expenditure standards as prescribed by authorized state agencies: Based on financial capacity, the unit can decide on higher or lower expenditure levels than those set by authorized state agencies and included in the internal expenditure regulations of the unit.

For expenditure items without established expenditure standards as prescribed by authorized state agencies: Based on actual conditions, the unit establishes appropriate expenditure levels according to internal expenditure regulations and is responsible for its decisions.

- Depreciation of fixed assets

The amount of depreciation of fixed assets invested in or purchased from state budget sources or derived from state budget sources is supplemented to the Public Service Development Fund of the unit (the state budget does not provide funding for major purchases or repairs of equipment and assets).

The amount of depreciation of fixed assets invested in or purchased from borrowed capital is used to repay debt; the remainder is supplemented to the Public Service Development Fund of the unit.

c) Non-recurring task expenditures: The unit spends according to the State Budget Law and current laws for each source of funds as stipulated in point c (the portion retained for purchasing, major repairs of assets, machinery and equipment serving fee collection work and other expenditures as decided by competent authorities if any), point đ, point e, and point g of Clause 1 of this Article;

d) The unit must comply with the State's regulations on expenditure levels, standards, and quotas for car usage; standards and quotas for office space; standards and quotas for official telephones at home and mobile phones; overseas travel expense regulations; foreign reception and international conference expense regulations in Vietnam.

3. Distribution of annual financial results

a) Annually, after fully accounting for all expenditure items, paying taxes, and other payments to the state budget (if any) as prescribed, the surplus of revenue over regular expenditures (if any) shall be used in the following sequence:

- At least 25% to establish the Fund for Developing Service Activities;

- Establishing the Supplementary Income Fund: The unit decides on the level of contribution to the Supplementary Income Fund (without a cap on contributions);

- Establishing the Reward and Welfare Fund: The maximum amount shall not exceed three months' average salary and wage of the unit;

- Establishing other funds as prescribed by law;

- The remaining surplus revenue after establishing the required funds as prescribed is supplemented to the Public Service Development Fund.

b) Using Funds

- Public Service Development Fund: To invest in building physical facilities, purchasing equipment, and working tools; developing operational capacity; applying scientific and technological progress; training and improving professional skills for employees in the unit; contributing capital to joint ventures and joint operations with domestic and foreign organizations and individuals to organize service activities in accordance with assigned functions and tasks under the law and other expenditures (if any).

- Supplementary Income Fund: To supplement income for employees in the year and reserve for supplementary income for employees in the following year.

The additional income supplement for employees in the unit shall be implemented based on the principle of linking with the quantity, quality, and effectiveness of work. The additional income coefficient for leadership positions in the unit shall not exceed twice the average additional income coefficient implemented for employees in the unit.

- Reward Fund: To provide regular and extraordinary rewards to collectives and individuals within and outside the unit (outside the reward system prescribed by the Law on Competition and Rewards) based on the effectiveness of work and contributions to the unit's activities. The level of reward is determined by the head of the unit according to the internal expenditure regulations of the unit.

- Welfare Fund: To construct and repair welfare facilities; to fund collective welfare activities for employees in the unit; to provide emergency assistance to employees, including those retiring or losing their capacity; to provide additional support to employees implementing staff reduction schemes according to the unit's internal expenditure regulations.

c) The specific amount of contributions to the funds stipulated in point a of this clause and the use of these funds shall be decided by the head of the unit according to the internal expenditure regulations and must be publicly disclosed within the unit.

Article 13. Financial Autonomy for Economic Public Service Units and Other Public Service Units Self-Sustaining Regular Expenditures

1. Sources of finance for the unit

a) Revenue from public service activities in the economic public service sector and other public services;

b) State budget funds for ordering services and assigning tasks for providing public service goods at prices covering costs (including: salary costs, direct costs, management costs);

c) Fees revenue according to laws on fees and charges left for expenditure as prescribed by laws on fees and charges;

d) Other revenue sources (if any), including:

- Dividends from joint venture and joint operation activities;

- Bank deposit interest;

- Other sources of income as prescribed by law.

d) State budget funds allocated for non-recurring tasks specified in point d of Clause 1, Article 12 of this Decree and funding for major purchases and repairs of equipment and assets for the unit according to approved projects (if any);

e) Borrowed capital, aid, and sponsorship as prescribed by law;

g) Other sources, including:

- Loans from credit institutions and funds raised from staff within the unit;

- Joint venture and joint operation capital of organizations and individuals both domestically and internationally as prescribed by law.

- Other sources (if any).

2. Use of financial resources

a) Regular expenditures: The unit may proactively use financial resources assigned for autonomy as stipulated in points a, b, c (the portion left for regular expenditures to cover operating costs from fee collection) and point d of Clause 1 of this Article, to cover regular expenditures as prescribed in point b of Clause 2, Article 12 of this Decree;

b) Non-recurring expenditures: The unit shall spend according to the provisions of the State Budget Law and current laws for each source of funds specified in point c (the portion left for purchasing and major repairs of assets and machinery serving fee collection and other expenditures as decided by the competent authority if any), point d, point e, and point g of Clause 1 of this Article.

3. Distribution of financial results in the year as prescribed in Clause 3 of Article 12. Specifically, the establishment of the Additional Income Fund shall not exceed three times the salary grade, rank, position fund and other allowances prescribed by the State.

Article 14. Financial Autonomy for Economic Public Service Units and Other Public Service Units self-sustaining part of regular expenditures (due to public service goods prices and fees not fully covering costs,ordered by the state at prices and fees not fully covering costs,)

1. Sources of finance for the unit

a) Revenue from public service activities in the economic public service sector and other public services;

b) State budget funds for ordering services and assigning tasks for providing public service goods at prices not fully covering costs; state subsidies for the portion of costs not covered in the price of public service goods;

c) Fees revenue according to laws on fees and charges left for expenditure as prescribed by laws on fees and charges;

d) Other revenue sources (if any), including:

- Dividends from joint venture and joint operation activities;

- Bank deposit interest;

- Other revenue sources as prescribed by law;

d) State budget funds allocated for non-recurring tasks specified in point d of Clause 1, Article 12 of this Decree and funding for major purchases and repairs of equipment and assets for the unit according to approved projects (if any);

e) Sources of aid and sponsorship as prescribed by law;

g) Other sources, including:

- Capital raised by officers and staff within the unit;

- Joint venture and joint operation capital from domestic and foreign organizations and individuals as prescribed by law;

- Other sources (if any).

2. Utilization of Unit Financial Resources

a) Regular expenditures: The unit may proactively use financial resources assigned for autonomy as stipulated in points a, b, c (the portion left for regular expenditures to cover operating costs from fee collection) and point d of Clause 1 of this Article for regular expenditures. Some expenditure items are regulated as follows:

- Salary expenses: The unit pays salaries according to the salary grades, ranks, positions, and allowances prescribed by the State for public service units.

When the State adjusts salaries, the unit ensures additional salary increases from available sources as prescribed; in cases of shortage, the State budget will provide supplementary funding.

- Professional activity expenses, management expenses: Based on assigned tasks and financial capacity, the unit decides on the level of professional activity expenses and management expenses, but the maximum shall not exceed the level prescribed by the competent state agency.

b) Non-recurring expenditures: The unit shall spend according to the provisions of the State Budget Law and current laws for each source of funds specified in point c (the portion left for purchasing and major repairs of assets and machinery serving fee collection and other expenditures as decided by the competent authority if any), point d, point e, and point g of Clause 1 of this Article.

3. Distribution of annual financial results

a) Annually, after fully accounting for all expenses, paying taxes, and other payments to the state budget (if any) as prescribed, the surplus of revenue over regular operational expenditures (if any), the unit may use as follows:

- Establish a Development Fund for Public Services with a minimum of 15%;

- Establish an Additional Income Fund up to twice the salary grade, rank, position fund and other allowances prescribed by the State;

- Establish a Reward Fund and a Welfare Fund up to two months' average salary and wages of the unit in the year;

- Establish other funds as prescribed by law (if any);

- Any remaining surplus after establishing the funds as prescribed shall be added to the Development Fund for Public Services.

In cases where the revenue surplus equals or is less than one time the annual salary grade, rank, position fund, the unit may decide on the amount to be contributed to the funds in accordance with its internal expenditure regulations.

b) The specific amounts of contributions to the funds as stipulated in point a of this clause and the use of these funds shall be decided by the head of the unit according to the internal expenditure regulations and must be publicly disclosed within the unit. The expenditure from the funds shall be carried out as prescribed in point b of Clause 3, Article 12 of this Decree.

Article 15. Financial autonomy for economic public service units and other public services funded by the State for regular expenditures (based on functions and tasks assigned by competent authorities without revenue sources or with low revenue) a) The State budget allocates regular expenditures based on the number of employees and the approved budget allocation standards by competent authorities;

1. Sources of finance for the unit

b) Other revenues as prescribed by law (if any);

c) The State budget allocates funds for non-regular tasks specified in point đ, Clause 1, Article 12 of this Decree and procurement and major repair costs for equipment and assets of the unit according to approved projects by competent authorities (if any);

d) Donations and sponsorships as prescribed by law;

đ) Other sources (if any).

2. Contents of Expenditures of the Unit

a) Regular expenditures: The unit may use the financial resources allocated under points a and b, Clause 1 of this Article for regular expenditures. Some expenditure items are stipulated as follows:

When the State adjusts salaries, the State budget supplements increased salaries after deducting sources that ensure increased salaries as prescribed.

- Salary expenses: The unit pays salaries according to the salary grades, ranks, positions, and allowances prescribed by the State for public service units.

- Professional activity expenses, management expenses: The unit decides on the level of professional activity expenses and management expenses, but not exceeding the maximum levels set by competent state agencies;

b) Non-regular task expenditures: The unit shall allocate expenditures according to the State Budget Law and current laws for each source of funds specified in points c, d, and đ, Clause 1 of this Article.

3. Utilization of Savings from Regular Expenditures

a) Annually, after covering all expenses, paying taxes, and other payments to the State budget (if any), any savings from regular expenditures (if any) shall be used in the following order:

- Allocate at least 5% to establish a Fund for Developing Public Service Activities;

- Establish a Supplementary Income Fund up to a maximum of one times the salary scale, grade, position, and allowances prescribed by the State;

- Establish a Reward and Welfare Fund up to a maximum of one month's average salary or wage of the unit during the year;

- Establish other Funds as prescribed by law (if any).

In cases where revenue exceeds expenditure by more than one time the actual salary scale, grade, and position of the unit during the year, the unit may decide on the allocation to the funds according to its internal expenditure regulations.

b) The specific allocation levels of the funds as stipulated in point a of this clause and the use of these funds are decided by the head of the unit according to internal expenditure regulations and must be publicly disclosed within the unit. The contents of expenditures from the funds are implemented according to point b, Clause 3, Article 12 of this Decree.

Article 16. Autonomy in Financial Transactions

1. Opening Transaction Accounts

a) Economic public service units and other public services may open deposit accounts at commercial banks or the State Treasury to reflect income and expenditure from public service activities not using the State budget;

b) Funds from the State budget, public service income using the State budget, and fees collected according to the law on fees and charges, the unit opens accounts at the State Treasury to reflect such transactions.

2. Borrowing and Raising Capital

Economic public service units and other public services with service activities may borrow from credit organizations and raise capital from staff within the unit to expand and improve the quality of public service activities, organize service activities consistent with their functions and tasks. Specifically, economic public service units and other public services self-funding regular expenditures and investment may borrow to invest in and construct facilities according to point a, Clause 2, Article 12 of this Decree.

When borrowing and raising capital, the unit must have a feasible financial plan, bear full responsibility for repaying loans, both principal and interest, as prescribed; and be responsible under the law for borrowing, raising capital, and the effectiveness of borrowed and raised capital usage.

When borrowing funds or raising capital, the unit must have a feasible financial plan, bear responsibility for repaying the borrowed debt, both principal and interest as prescribed; be legally responsible for borrowing, raising capital, and the effectiveness of using borrowed funds and raised capital.

Article 17. Financial obligations, management of state assets, and internal expenditure regulations of economic public service units and other public services

1. Units engaged in service activities shall register, declare, and pay all tax amounts and other budget revenues (if any) fully and on time as prescribed by law.

2. Units shall be responsible for managing and using state assets in accordance with the provisions of law.

3. Units shall be responsible for establishing and promulgating Internal Expenditure Regulations, submitting them to the superior supervisory authority. Within fifteen days from the date of receipt of the Regulations, if there are provisions that are inconsistent with the provisions of law, the superior supervisory authority shall issue a written opinion requesting the unit to adjust accordingly.

After the aforementioned period, if the superior supervisory authority does not provide comments, the unit shall implement according to the regulations while sending the financial authority at the same level for monitoring and supervision implementation. The State Treasury where the unit opens its transaction account shall serve as the basis for controlling expenditures.

Section 4

ESTABLISHING AND IMPLEMENTING BUDGETS FOR REVENUE AND EXPENDITURE

Article 18. Establishing Budgets

1. Economic public service units and other public service units shall establish budgets for revenue and expenditure under their assigned tasks in accordance with the provisions of the State Budget Law and this Decree.

2. Establishing Budgets for Economic Public Service Units and Other Public Services

a) For public services not funded by the state budget and other services: Annually, based on the results of service quantity and volume implementation; the situation of revenue and expenditure in providing public services and other services in the current year; requirements and tasks for the planned year, the unit shall plan the quantity and volume of services and establish revenue and expenditure budgets to submit to the superior supervisory authority.

b) For public services ordered by the state and assigned tasks: Annually, based on the quantity, volume, and unit price of public services ordered and assigned tasks according to the guidelines of ministries, central agencies, provincial People's Committees, the unit shall establish the budget and submit it to the superior supervisory authority as prescribed. For public services ordered by the state and assigned tasks at prices that do not fully cover costs, the unit shall establish a state budget support budget for the portion of costs not included in the service price.

c) For budgets for expenditures from retained fees as prescribed by laws on fees and charges: Based on the implementation situation in the current year, tasks for the planned year, the unit shall plan the amount of fees collected and establish a budget for expenditures from retained fees to cover operating costs, submitting it to the superior supervisory authority as prescribed. For units that self-fund part of regular expenses from retained fees without service revenue, the establishment of the expenditure budget includes: Expenditures from retained fees as prescribed and the portion of state budget funds supported due to retained fees not being sufficient to cover regular expenses (if any).

d) For units whose regular expenses are guaranteed by the state: Based on the implementation situation in the current year, the number of staff approved by the competent authority, the current expenditure system, the unit shall establish a budget for revenue and expenditure (including the budget for fees and charges as prescribed by law if applicable), submitting it to the superior supervisory authority as prescribed by the State Budget Law.

đ) Establishing budgets for non-recurring tasks as prescribed by the State Budget Law.

3. Establishing Budgets for Superior Supervisory Authorities

Annually, based on the revenue and expenditure budgets established by the units, the superior supervisory authority shall review and consolidate the unit's revenue and expenditure budgets to submit to the financial authority and relevant authorities as prescribed by the State Budget Law.

Article 19. Allocation and Assignment of Budgets

1. The allocation and assignment of budgets by the superior supervisory authority to economic public service units and other public services shall be carried out in accordance with the provisions of the State Budget Law and this Decree.

2. Based on the pricing schedule for public services prescribed in Article 10 of this Decree, the superior supervisory authority shall assign the budget for state orders and assigned tasks to economic public service units and other public services according to each category of public services funded by the state budget as decided by the competent authority (in detail according to quantity, volume, product unit price, specific funding).

3. For economic public service units and other public services whose regular expenses are guaranteed by the state: The superior supervisory authority shall implement a stable budget assignment over a three-year period and may be adjusted when the state changes tasks, policies, and mechanisms as prescribed.

Article 20. Implementation and settlement of revenue and expenditure budget

1. Implementation of revenue and expenditure budget

a) For regular expenditure funds from financial sources specified in point b Clause 2 Article 12, point a Clause 2 Article 13, point a Clause 2 Article 14 and point a Clause 2 Article 15 of this Decree, if not fully utilized at the end of the fiscal year, the unit may transfer to the next year for continued use;

b) For non-regular expenditure funds, if not fully utilized or not fully spent at the end of the fiscal year, the unit shall implement according to the provisions of the State Budget Law and current guiding documents.

2. Settlement of revenue and expenditure

Economic public service units and other public service units submit annual settlement reports to superior management agencies for review in accordance with current regulations.

Chapter III

IMPLEMENTATION

Article 21. Granting autonomy rights to economic public service units and other public service units

1. Units develop autonomy plans, classify themselves into one of four types of autonomy as prescribed in Articles 12, 13, 14 and 15 of this Decree, consistent with their functions and tasks assigned by competent authorities and actual conditions of the unit, and report to superior management agencies.

2. Ministries, central agencies, provincial People's Committees (or subordinate agencies according to the division of authority) examine and audit revenue and expenditure budgets and the level of state budget funds ensuring regular expenditures for units guaranteed regular expenditures by the state; propose classification of subordinate economic public service units and other public service units, and send to the same-level finance agency for examination and comments.

After receiving written comments from the finance agency, ministries, central agencies, provincial People's Committees (or subordinate agencies according to the division of authority) decide on the classification of subordinate economic public service units and other public service units and approve the budget of state budget funds ensuring regular expenditures for units guaranteed regular expenditures by the state.

3. The granting of autonomy rights to units will be stable for a period of three years. In cases where changes in revenue sources or tasks of the unit affect the degree of financial autonomy, the unit must report to the superior management agency for consideration and adjustment of the degree of autonomy before the deadline.

Units that have been classified by authorized agencies as self-financing regular expenditures and investment expenditures or self-financing regular expenditures shall not be adjusted to partially self-financing regular expenditures or state-guaranteed regular expenditures during the three-year classification stability period or after the three-year period..

Article 22. Conditions and contents for economic public service units and other public service units to apply financial mechanisms similar to enterprises

1. Economic public service units and other public service units that self-finance regular expenditures and investment expenditures can apply financial mechanisms similar to enterprises (a single-member limited liability company wholly owned by the state), when meeting the following conditions:

a) Engaging in public services with high socialization levels, where state subsidies are not necessary;

b) Service prices cover all costs (including depreciation of fixed assets);

c) Being recognized by the state for asset value and capital allocation according to laws on state asset management and utilization;

d) Accounting in accordance with accounting standards applicable to enterprises.

2. Contents of applying financial mechanisms similar to enterprises

a) Determination of equity capital and preservation of capital;

b) Borrowing, raising, and investing capital outside the unit, in accordance with the law;

c) Managing, using, and depreciating fixed assets like enterprises;

d) Managing income, expenses, and profit distribution; implementing accounting and statistical systems applicable to enterprises.

Costs for developing the Proposal and other directly related costs to applying financial mechanisms similar to enterprises are included in the regular expenditure of the unit.

3. Units that meet the conditions stipulated in Clause 1 of this Article shall develop Proposals to apply financial mechanisms similar to enterprises and report to ministries, central agencies, and localities for approval according to the division of authority.

4. Ministries and central agencies decide on subordinate economic public service units and other public service units applying financial mechanisms similar to enterprises after receiving written comments from the Ministry of Finance. Provincial People's Committees (or subordinate agencies according to the division of authority) decide on subordinate economic public service units and other public service units applying financial mechanisms similar to enterprises after receiving written comments from local finance agencies.

Based on the provisions of Clause 1 of this Article, ministries, central agencies, and provincial People's Committees within their jurisdiction direct economic public service units and other public service units to review and develop timelines for units to meet the conditions to apply financial mechanisms similar to enterprises.

Article 23. Object, procedure, formalities, and related contents regarding the conversion of economic public service units and other public service unitsEconomic public service units and other public service units để thành lập công ty cổ phần

The object, procedure, formalities, and related contents regarding the conversion of economic public service units and other public service units into joint-stock companies shall be carried out in accordance with the provisions of the Government's Decree on the conversion of public service units under the State into joint-stock companies.

Article 24. Responsibilities of ministries, central agencies, and provincial People's Committees

1. Responsibilities of the Ministries of Agriculture and Rural Development, Natural Resources and Environment, Transport, Industry and Trade, Construction, Labor - Invalids and Social Affairs, Justice, and other relevant central agencies:

a) Based on their scope of management, functions, and tasks within their authority, organize the implementation of the provisions stipulated in Article 4 of this Decree.

b) Submit to the Prime Minister for issuance:

- The list of public services using state budget funds in the fields of economic public services and other public services under the ministries and central agencies;

- The planning of the network of economic public service units and other public service units providing public services using state budget funds under the ministries and central agencies.

c) Issue, amend, and supplement according to their authority:

- The economic and technical norms for public services using state budget funds in the fields of economic public services and other public services managed by the State, serving as the basis for setting prices for public services using state budget funds;

- Quality criteria and standards for public services using state budget funds in the fields of economic public services and other public services; mechanisms for monitoring, evaluating, and certifying the quality of public services using state budget funds in the fields of economic public services and other public services; the effectiveness of operations of economic public service units and other public service units under the ministries and central agencies.

2. Responsibilities of the Provincial People's Committee:

a) Based on their scope of management, functions, and tasks within their authority, organize the implementation of the provisions stipulated in Article 4 of this Decree.

b) Issue the list of public services using state budget funds in the fields of economic public services and other public services within their jurisdiction; plan the network of economic public service units and other public service units under local management.

c) Issue, amend, and supplement economic and technical norms applicable to public services using state budget funds in the fields of economic public services and other public services within their jurisdiction, serving as the basis for setting prices for public services; quality criteria and standards for public services using state budget funds in the fields of economic public services and other public services; mechanisms for monitoring, evaluating, and certifying the quality of public services using state budget funds in the fields of economic public services and other public services; the effectiveness of operations of economic public service units and other public service units within their jurisdiction.

3. The Ministry of Finance shall be responsible for guiding the financial mechanism of economic public service units and other public service units in accordance with the provisions of this Decree.

4. Annually, ministries, central agencies, and provincial People's Committees shall report on the results of implementing the self-management mechanism of subordinate economic public service units and other public service units to the Ministry of Finance and the Ministry of Home Affairs.

Article 25. Responsibilities of the Heads of Economic Public Service Units and Other Public Service Units

1. Shall be responsible before the direct supervisory agency and the law for decisions made in exercising autonomy over tasks, organizational structure, personnel, and finance of the unit.

2. Ensure the quality of public services according to the criteria and standards prescribed by competent state agencies.

3. Develop and implement internal expenditure regulations, asset usage regulations, grassroots democracy regulations, financial transparency regulations, and internal audit regulations as prescribed.

4. Organize the management and use of civil servants in accordance with the laws on civil servants.

5. Manage, preserve, and develop state capital and assets in accordance with the law, implement accounting, statistical, information, reporting, auditing systems as prescribed.

6. Submit to the competent authority for decision-making on the establishment and definition of the functions, tasks, powers, and organizational structure of the Management Board as prescribed.

7. Implement the provisions on transparency and accountability for the activities of the unit as prescribed by law.

8. Regularly, annually, have the responsibility to report evaluations on the results of implementing the self-management mechanism of the unit to the superior supervisory agency.

Article 26. Effective date

1. This Decree takes effect from December 20, 2016.

2. Economic public service units and other public service units currently being granted financial mechanisms under Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government on the rights of autonomy and self-responsibility for the implementation of tasks, organizational structures, staffing, and finance for public service units under the State, shall continue to be implemented until the end of 2016.

3. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial and centrally governed city People's Committees are responsible for implementing this Decree./.