Decision No. 68/1998/QĐ-TTg On the pilot establishment of state-owned enterprises in educational institutions and research facilities

DECISION OF THE PRIME MINISTER

Regarding the pilot establishment of state-owned enterprises in educational institutions and research facilities

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the State Enterprise Law on April 20, 1995;

To implement the integration of education and scientific research with practical production, to promote the rapid application of scientific research results and technology in production, and to support part of the resources for educational institutions and scientific research facilities to improve the quality of education and research;

Considering the proposal of the Minister of Education and Training and the Minister of Science, Technology, and Environment,

DECISION:

Article 1. Allow Ministries, ministerial-level agencies, and government agencies, Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).provincial people's committees, municipal people's committees under the central government to select to pilot the establishment of state-owned enterprises in some public universities, colleges (referred to as educational institutions), scientific research institutes, science and technology centers, state scientific-production associations (referred to as research facilities) under their management, to engage in the production and business of products that are the results of research and technological development or products and services related to the specialized functions and tasks of those educational institutions and research facilities.

Article 2. In addition to the fields of goods and services prohibited from commercial trade and goods and services subject to conditions for commercial trade in the domestic market as stipulated in Decree No. 02/CP dated January 5, 1995 of the Government, state-owned enterprises in educational institutions and research facilities shall not engage in the following areas: mining exploitation, electricity distribution, production and circulation of explosives, hotels and restaurants, publishing, air cargo transportation, postal and telecommunications services, financial credit, real estate. Special cases must be approved by the Prime Minister.

Article 3. The establishment, restructuring, dissolution, and bankruptcy of state-owned enterprises in educational institutions and research facilities shall be carried out according to the provisions of Decree No. 50/CP dated August 28, 1996 of the Government on the establishment, restructuring, dissolution, and bankruptcy of state-owned enterprises and Decree No. 38/CP dated April 28, 1997 of the Government amending and supplementing certain articles of Decree No. 50/CP.

The charter capital at the time of establishment of state-owned enterprises in educational institutions and research facilities shall not be less than 30% of the statutory capital prescribed for the highest permitted business sector according to Appendix No. 2 attached to Decree No. 50/CP. The value of workshops and equipment transferred by educational institutions and research facilities to become the charter capital of the enterprise shall not exceed one-third of the total value of workshops and equipment of the educational institution or research facility.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).provincial people's committees, municipal people's committees under the central government shall issue decisions to establish state-owned enterprises in educational institutions and research facilities under their management after receiving a consent letter from the Minister of Planning and Investment regarding the project to establish the enterprise.

Article 5. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).provincial people's committees, municipal people's committees under the central government are authorized to allow the heads of educational institutions and research facilities to manage enterprises within their own facilities.

Article 6. The heads of educational institutions and research facilities shall submit the enterprise's organizational and operational charter for approval by the head of the agency deciding to establish the enterprise, and appoint, dismiss, reward, and discipline the General Director of the enterprise.

After reaching an agreement with the head of the educational institution or research facility, the General Director of the enterprise shall submit to the head of the agency deciding to establish the enterprise for the appointment, dismissal, reward, and discipline of the Deputy General Director and Chief Accountant of the enterprise.

Article 7. State-owned enterprises in educational institutions and research facilities, in addition to fulfilling the obligations and enjoying all rights of state-owned enterprises as prescribed by law, shall be given preferential treatment in considering the resolution of land for construction of production and business bases according to the Land Law, priority in loan conditions for investment, and application of preferential tax rates as prescribed by law, while also having the obligation to participate in supporting the training and research processes of the institution.

Article 8. Educational institutions and research facilities shall be granted back the entire corporate income tax paid by enterprises under their management to be used for building infrastructure, purchasing equipment to enhance teaching, learning, scientific research, and technological development capabilities according to approved plans.

Article 9. In addition to teachers, scientific staff, and employees assigned by the heads of educational institutions and research facilities to perform business activities, state-owned enterprises in educational institutions and research facilities may enter into contracts with teachers, scientific staff, and employees within the institution and hire additional external laborers in accordance with the requirements of the enterprise and current laws.

Article 10. Teachers, scientific staff, and employees in educational institutions and research facilities who are fully transferred to work at affiliated state-owned enterprises shall be paid salaries and other earnings corresponding to the business performance of the enterprise, while still retaining the right to sign contracts to participate in training and research activities at the institution. When necessary, the heads of educational institutions and research facilities may redeploy these scientific staff, teachers, and employees back to serve research and training within the approved staffing quota of the educational institution or research facility.

Article 11. The heads of educational institutions and research facilities are responsible for directing enterprises to operate in accordance with their assigned functions and responsibilities and are accountable to the head of the agency deciding to establish the enterprise for compliance with state laws and policies and the effectiveness of enterprise operations. The General Director of the enterprise is accountable under the law, to the head of the agency deciding to establish the enterprise, and to the head of the educational institution or research facility for all enterprise activities, according to the division of authority specified in the enterprise's organizational and operational charter.

Article 12.- For state-owned enterprises previously established upon the proposal of educational institutions and research facilities, which have been re-registered pursuant to Decree No. 388/HĐBT dated November 20, 1991 issued by the Council of Ministers on the regulations for the establishment and dissolution of state-owned enterprises, when being reorganized according to Directive No. 500/TTg dated August 25, 1995 of the Prime Minister regarding the urgent organization and reorganization of state-owned enterprises, no longer directly under educational institutions or research facilities, if it is truly necessary to reconnect them with educational institutions or research facilities again, then the Minister, Head of a ministry-level agency, Head of a government-affiliated agency, and Chairman of the People's Committee of provinces and centrally governed cities shall consider and decide without having to go through the procedures for establishing a new enterprise. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The Chairman of the People's Committee of provinces and centrally governed cities shall consider and decide, without having to go through the procedures for establishing a new enterprise.

Article 13. The Ministry of Education and Training has the responsibility to coordinate with the Ministry of Science, Technology, and Environment, and the Government's Organization and Cadre Department to define the relationship between educational institutions, research facilities, and state-owned enterprises of those institutions.

The Ministry of Finance has the responsibility to establish financial management regulations for state-owned enterprises within educational institutions and research facilities.

The Ministry of Planning and Investment is responsible for reviewing proposals from ministries and localities to select pilot projects for establishing state-owned enterprises within educational institutions and research facilities that show promise for effective operations, while monitoring the activities of these enterprises after their establishment and summarizing reports to the Prime Minister.

Article 14. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

The Ministers, Heads of ministry-level agencies, Heads of government-affiliated agencies, Chairmen of the People's Committees of provinces and centrally governed cities, and related organizations are responsible for implementing this Decision./.