Joint Circular No. 28/TC-KHKT guiding the establishment and use of the centralized science and technology development fund

CIRCULAR

Guidelines for the establishment and utilization of centralized science and technology development funds

Implementing Resolution No. 51-HĐBT dated May 17, 1983 of the Council of Ministers regarding the permission for Ministries and General Departments to establish centralized science and technology development funds, after reaching consensus through exchanges with the Ministry of Finance and the State Committee for Science and Technology, we hereby provide guidelines for the establishment and utilization of centralized science and technology development funds at Ministries and General Departments (hereinafter referred to as Ministries) as follows:

I. OBJECTIVES OF ESTABLISHING THE FUND

1. Ministries are permitted to establish centralized science and technology development funds to implement scientific and technological tasks within their sectors aimed at developing and innovating products, seedlings, production methods, agricultural techniques, new machinery and equipment manufacturing, including certain research and exploration issues necessary to meet national economic demands for production efficiency, increased labor productivity, reduced costs, and improved product quality.

2. The establishment of centralized science and technology development funds is intended to enable each Ministry to have financial autonomy, take responsibility for financing scientific and technological activities, enhance the economic and technical level of production and products, and promote deepened sectoral production development.

II. CONTENTS OF FUND UTILIZATION

The centralized science and technology development fund is used to finance tasks under the sector's scientific and technological activity plan, including:

- Tasks related to natural resource surveys and environmental conditions.

- Scientific research topics and pilot production technology implementation projects.

- Support for tasks applying advanced technologies.

- Technical management activities of the sector (to improve product quality, develop and review industry standards, produce and repair measuring instruments).

- Support for scientific and technological information activities, initiatives, inventions, and international cooperation in science and technology within the sector.

Specific expenditure items for each task, as well as expenditure regulations and standards, shall be applied according to current state documents applicable to state-planned scientific and technological tasks.

III. ESTABLISHMENT AND MANAGEMENT OF THE FUND

A. Establishment of the Fund

Financial sources for establishing centralized science and technology development funds of Ministries include:

1. Contributions from 10-25% of the production promotion fund of enterprises directly subordinate to the Ministry. The specific contribution rate of each unit and facility is determined by the Minister or General Department Director (within the aforementioned ratio) based on the amount of the production development fund available at the facility and the investment needs for the Ministry's and sector's scientific and technological development plan.

2. Contributions of 20% from the savings of enterprises directly subordinate to the Ministry as stipulated in Circular No. 05-TC/VP dated March 6, 1982 of the Ministry of Finance, which now should be paid into this centralized science and technology development fund.

3. Contributions of 30% of revenues from selling trial products, waste materials, and by-products from research and development.

This provision is set forth in Point 2, Section B, Part V of Joint Circular No. 03-TC/KHKT dated January 28, 1984 of the Ministry of Finance and the State Committee for Science and Technology.

4. Contributions of 10-20% of profits generated from the application of advanced technologies.

5. Ministries with industrial associations, companies, and General Corporations need to specify the contribution rates into the centralized science and technology development fund of the Ministry and the amount retained for management by these associations, companies, etc., as stipulated in Point 2, Part II of Circular No. 02-TC/VP dated January 18, 1980 of the Ministry of Finance concerning the financial system of state-owned industrial associations.

In the future, based on practical application, the Joint Ministry will review and adjust the contribution ratios to better meet the requirements for the scale and management and utilization of the fund in relation to other enterprise funds.

B. Management of the Fund

1. Preparation of budget estimates for income and expenditure of the centralized science and technology development fund:

a. Budget estimates for income:

The amount contributed to the centralized science and technology development fund from the sources mentioned in Section A, Part III depends on the implementation results of state plans by enterprises and research and development agencies. When preparing annual budget estimates for the centralized science and technology development fund, Ministries base their estimates on the nine-month final accounts report of the subordinate units to forecast production and business plans, energy and material savings plans of subordinate enterprises, and revenue from selling trial products, waste materials, and by-products from research and development agencies for the planning year to prepare the budget estimate for the centralized science and technology development fund for the following year.

Upon reviewing the budget, the supervising ministry approves and informs enterprises and research and development agencies about the amounts to be contributed to the centralized science and technology development fund of the Ministry according to the ratios specified in Part III above.

b. Budget estimates for expenditure:

Expenditure from the centralized science and technology development fund is part of the overall budget for scientific and technological activities of Ministries. This fund is only allocated for tasks recorded in the annual scientific and technological plan of the Ministry and approved by the supervising ministry.

The time frame and forms for preparing budget estimates for expenditure using the centralized science and technology development fund must comply with current regulations for budget estimates for public service science and technology funds.

Annual income and expenditure planning forms for the centralized science and technology development fund of Ministries are specified in the annex attached to this Circular. Ministries are responsible for guiding detailed forms required for subordinate units.

The entire income and expenditure plan using the centralized science and technology development fund is approved by the supervising ministry but must be reported to the State Committee for Science and Technology and the Ministry of Finance for inspection, review, and assurance of proper use as prescribed.

- Other expenses serving the research and drafting of legislative projects.

The allocation of funds from the centralized science and technology development fund to production enterprises, trading businesses, and administrative service units shall continue to follow the current disbursement system (for administrative service units using budget distribution forms). In the budget distribution form, the Ministry in charge must clearly indicate the source of funding as "Centralized Science and Technology Development Fund" so that units can distinguish it from other sources of funding.

Units receiving these funds must maintain separate records and account for them according to the current regulations. For administrative service units, accounts should be recorded under the "Allocated Budget" account (Account 24, Sub-account 24.2), with any remaining funds at year-end being carried over to the next year (through Account 26). For production and trading units, accounts should be recorded under the "Internal Industry Settlement Accounts for Recurring Transactions" account (Account 78, Sub-account 78.3).

The centralized science and technology development fund shall be deposited in a separate account at the Bank, referred to as the "Centralized Science and Technology Development Fund Deposit," managed by the Ministry. The balance at the end of the year shall be carried over to the next year for continued use and does not need to be submitted to the State budget.

3. Final settlement reports:

Annually, quarterly, along with the preparation of final settlement reports according to the current regulations, units receiving funds from the centralized science and technology development fund must prepare final settlement reports to submit to the Ministry in charge. The Ministry in charge is responsible for approving the final settlements of the units and compiling the final settlement report on the income and expenditure of the centralized science and technology development fund to send to the Ministry of Finance and the State Committee for Science and Technology.

In cases where research topics use both funds allocated from the State budget and supplementary funds from the centralized science and technology development fund of the Ministry, when reviewing budgets and final settlements, they must be separated and clearly stated to avoid duplication.

4. Recovery:

During the implementation of research and deployment tasks, there will be the following sources of income:

- Income from selling research results and products from trial production.

- Income from liquidation or sale of equipment serving research and deployment projects funded by the centralized science and technology development fund of the Ministry and General Departments.

Units may only sell or liquidate assets when the project ends and the equipment is no longer needed. The procedures for selling or liquidating assets must comply with current regulations.

- Income from selling waste materials and by-products during research and deployment.

Ministries need to provide specific guidance to units to actively recover waste materials and by-products to save costs. A certain percentage of the income should be retained by the unit, while the remainder should be deposited into the centralized science and technology development fund of the Ministry.

IV. IMPLEMENTATION PROVISIONS

1. This Circular takes effect from the date of signature and applies to Ministries, General Departments, and State Committees with financial resources to establish the fund specified in Section A, Part III above.

2. The Heads of the Department of Science and Technology Management and the Department of Financial Accounting are responsible for assisting the Minister in establishing, managing, and utilizing the centralized science and technology development fund in accordance with the regulations stipulated in this Circular.

3. Any provisions contrary to this Circular regarding the establishment of the centralized science and technology development fund in Ministries and General Departments are hereby abolished.

Appendix to Circular No. 28-TC/KHKT

Form No. 1/TC-KHKT

COMBINED BUDGET ESTIMATE OF INCOME TO THE CENTRALIZED SCIENCE AND TECHNOLOGY DEVELOPMENT FUND FOR THE YEAR...

(For the Principal Department)

Appendix to Circular No. 28-TC/KHKT

Form No. 2/TC-KHKT

COMBINED BUDGET ESTIMATE OF EXPENSES FROM THE CENTRALIZED SCIENCE AND TECHNOLOGY DEVELOPMENT FUND