Joint Circular No. 395/KCM-TCCBCP guides on the operational mechanisms and relationships of science and technology institutes under State-owned Corporations.

JOINT CIRCULAR

Guidelines on operational mechanisms and relationships

of scientific and technological institutes under state-owned corporations

Pursuant to Point 1, Article 3 of Decision No. 782/TTg dated October 24, 1996 of the Prime Minister regarding the restructuring of research and development institutions for science and technology; the Ministry of Science, Technology and Environment - Government Organization and Staff Council issues this Circular guiding the operational mechanisms and relationships of scientific and technological institutes under state-owned corporations as follows:

I. OBJECTS AND SCOPE OF APPLICATION

The Circular applies to state-owned research and technology development agencies (hereinafter referred to as Institutes) under state-owned corporations (hereinafter referred to as Corporations), as stipulated in Point 2, Article 1 of Decision No. 782/TTg dated October 24, 1996 of the Prime Minister, and Institutes that continue to be placed under Corporations as decided by the Prime Minister (if any).

II. SPECIFIC GUIDELINES

A. ON OPERATIONAL MECHANISMS

1. Functions, tasks, and authorities of the Institute

1.1. The Institute is a scientific and technological public service unit under the Corporation with the function of implementing scientific and technological activities of the Corporation while developing certain directions of national science and technology.

1.2. Tasks and authorities of the Institute

1.2.1. Implementing research and development tasks assigned by the Corporation, including:

Developing strategies for the scientific and technological development of the Corporation; researching and modernizing production technologies; testing and producing new products resulting from research that have not been transferred or belong to the specialized field of the Institute; advising the General Director on issues related to the development of the Corporation; providing scientific and technological services within the capacity of the Institute.

1.2.2. Implementing tasks assigned by the ministries, ministerial-level agencies, and government agencies managing economic and technical sectors (hereinafter referred to as sector management agencies) through procurement mechanisms, task contracts, bidding, selection, including:

Researching and developing key directions of national science and technology; establishing product standards, technology standards, and sectoral economic and technical norms; building and developing scientific and technological potential to meet the needs of key fields of science and technology; advising the State and sector management agencies on issues within the specialized field of the Institute.

1.2.3. The Institute has the right to expand its scientific and technological activities to serve units outside the Corporation according to its capacity and in compliance with the law.

2. Organization and personnel

2.1. Organizational structure

The Institute under the Corporation is a member unit of the Corporation, having full legal personality, its own seal, bank accounts (including foreign currency accounts) and National Treasury, and its own headquarters.

The Institute may establish branches both domestically and internationally in accordance with current Vietnamese laws and international practices, upon approval by the Corporation's Board of Directors.

2.2. Leadership of the Institute

The leadership of the Institute consists of the Director and several Deputy Directors assisting the Director. The Director is responsible for all activities of the Institute before the Corporation. The Deputy Directors are responsible to the Director for the areas assigned by the Director. The Director is appointed and relieved of duty by the Corporation's Board of Directors at the proposal of the Corporation's General Director after consulting with sector management agencies.

The Deputy Directors are appointed and relieved of duty by the Corporation's General Director at the proposal of the Director.

The Director proposes to the Corporation's General Director to submit to the Corporation's Board of Directors for approval the Charter on organization and operation of the Institute.

The organizational structure of the Institute is proposed by the Director and decided by the Corporation's General Director.

3. Financial mechanism

The Institute implements financial regulations as stipulated in the Charter of the Corporation. Sources of finance for the Institute include:

3.1. Funding from the Corporation

Funding for implementing research and development tasks assigned by the Corporation; funding for basic construction projects drawn from the Corporation's Development Fund.

3.2. Funding from the State Budget

Funding for implementing research and development tasks assigned by the State; other sources of international aid through the budget (if any); funding for constructing key laboratories located at the Institute (if any).

3.3. Self-raised funds

Funding for implementing other research and development tasks guaranteed by economic contracts with entities outside the Corporation; bank credit (Vietnamese dong and foreign currencies) and other sources; funding through international cooperation.

4. Issues concerning assets

4.1. Asset structure

Assets of the Institute include fixed assets and circulating assets entrusted by the Corporation for management, fully recorded and registered in accordance with current regulations.

4.2. Use and management of assets

Scientific and technological institutes under state-owned corporations implement asset management mechanisms in accordance with the Charter of organization and operation of the Corporation.

5. Plan formulation and implementation

The Institute's plan includes: Research and development tasks assigned by the Corporation; tasks assigned by the State through procurement orders, contracts; research and development tasks through economic contracts with other organizations found and exploited by the Institute; tasks for building the scientific and technological potential of the Institute (human resources and technical infrastructure).

Based on these planning tasks, the Director organizes the annual and long-term scientific and technological project plans and submits them for approval by competent authorities.

After the plan is approved, the Director is responsible for its implementation.

6. Labor and wages

In accordance with Point 2, Article 3 of Decision No. 782/TTg dated October 24, 1996, specific guidelines will be issued. For now, it shall be implemented in accordance with current regulations.

For the six State Institutes now transferred to directly belong to the Corporation, the State will continue to support their salary funds and operating costs according to a gradually decreasing regime, but not exceeding five years (counting from January 1, 1997), specifically: 1997 - 100%, 1998 - 100%, 1999 - 80%, 2000 - 60%, and 2001 - 40%.

7. On restructuring and dissolution

The decision to restructure or dissolve an Institute or the Corporation must be based on a report and can only be implemented after obtaining the consent of the authority that established it. Restructuring or dissolution must comply with current laws and the Charter on organization and operation of the Corporation.

B. ON RELATIONSHIPS

1. Relationship between the Institute and the Corporation

The Corporation has the responsibility to manage and assign tasks to the Institute so that the Institute's activities are aligned with those of the Corporation. The Corporation has the right to inspect and supervise, while also having the responsibility to coordinate and harmonize necessary resources for the Institute to fulfill its assigned tasks.

The Institute is responsible for implementing all provisions herein and the Charter on organization and operation of the Corporation, and at the same time has the right to recommend to the Corporation matters related thereto.

2. Relationship between the Institute and the sectoral management agency.

The sectoral management agency has the responsibility to ensure necessary conditions for the Institute to complete the tasks specified in Section 1.2.2 above, to inspect the implementation of assigned tasks, and to ensure administrative equality for the Institute similar to Institutes under Ministries, agencies equivalent to Ministries, and agencies under the Government.

Institutes under the Corporation may directly engage with the sectoral management agency in participating in scientific research and technological development programs and topics like Institutes under Ministries, agencies equivalent to Ministries, and agencies under the Government. The Institute is responsible for fulfilling assigned tasks and has the right to reflect issues related thereto.

3. Relationship between the Institute and the Ministry of Science, Technology and Environment.

The Ministry of Science, Technology and Environment performs state management functions in the field of science and technology development; the Ministry collaborates with the sectoral management agency to provide state protection for the Institute, and simultaneously considers assigning key scientific and technological tasks, investing in building key laboratories (if any), and ensuring direct implementation conditions for the Institute.

Institutes under the Corporation may engage with the Ministry of Science, Technology and Environment like Institutes under Ministries, agencies equivalent to Ministries, and agencies under the Government. The Institute is responsible for complying with all current regulations on science and technology management, and at the same time contributes to improving these regulations.

4. Relationship between the Institute and other agencies.

Other state management agencies, according to their functions, have the responsibility to monitor and inspect the Institute's activities in areas prescribed by law for those agencies.

The Institute may engage with other state management agencies on all related matters.

The Institute has the right to establish and develop relationships in various forms (including joint ventures and collaborations) with domestic and foreign scientific organizations and individual scientists, production, business, research, training institutions, or international organizations in carrying out its tasks as prescribed by law.

III. IMPLEMENTATION

1. Institutes under Ministries, agencies equivalent to Ministries, and agencies under the Government now transferred to directly belong to the Corporation pursuant to Decision No. 782/TTg dated October 24, 1996 of the Prime Minister shall conduct asset declaration and personnel establishment enjoying salaries from the budget (as of December 31, 1996) and submit to the management agency for review, then propose to the Government’s Organizational and Cadre Affairs Board, the Ministry of Science, Technology and Environment, and the Ministry of Finance to proceed with the procedures for transferring capital to the Corporation as well as other related procedures.

2. Based on the above provisions, the Corporations shall guide Institutes in formulating Regulations on organization and operation to be submitted to the Corporation’s Board of Directors for approval.

During the implementation process, if there are any issues that are not appropriate or problematic, localities and units must promptly report to the Ministry of Fisheries for research, guidance, supplementation, and amendment./.

During the implementation process, if difficulties arise, they should be promptly reported to the Ministry of Science, Technology and Environment to collaborate with the Government’s Organizational and Cadre Affairs Board for study and resolution.