Decree No. 95/2014/ND-CP on investment and financial mechanisms for scientific and technological activities

DECREE

Regulations on investment and financial mechanisms for scientific and technological activities scientific and technological activities

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Science and Technology dated June 18, 2013;

At the proposal of the Minister of Science and Technology,

At the proposal of Issuing this Decree to provide detailed regulations and guidance on implementing Articles 52, 53, 54, 58, and 63 of the Law on Science and Technology regarding investment, financial mechanisms, and certain necessary contents concerning the state budget estimate, funding for scientific and technological activities, and state management of the science and technology development fund.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree applies to state agencies, organizations, and individuals engaged in scientific and technological activities and other related organizations and individuals.

Article 2. Applicability

1. Budget allocation is the delegation of financial autonomy to organizations and individuals responsible for scientific and technological tasks in using approved funds, coupled with responsibility for achieving the assigned task results in accordance with objectives and requirements.

Article 3. Explanation of Terms

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

2. Savings funds are the differences between the total approved budget for scientific and technological tasks and the actual total expenditure after the completion of the scientific and technological task, evaluated and accepted at the level of scientific and technological task management from "Achieved" level upwards.

3. Final product is the product of the scientific and technological task approved by the competent authority managing the scientific and technological task and stipulated in the contract for implementing the scientific and technological task.

INVESTMENT FOR SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES

Chapter II

STATE INVESTMENT

Section 1

Article 4. Contents of state budget spending for science and technology

1. Investment in developing science and technology

Developing the potential for science and technology, investing in and supporting the construction of material and technical infrastructure for scientific and technological organizations regardless of economic components, including:

a) Building new, upgrading, and enhancing research capabilities of scientific and technological organizations, including: laboratories, experimental workshops, experimental stations; analytical, testing, inspection, calibration, and conformity assessment centers; specialized design, manufacturing, and testing facilities; application and technology transfer, standardization - measurement - quality control facilities; intermediary organizations of the science and technology market;

b) Building research and development zones for high-tech parks;

c) Building information infrastructure, national databases, and statistics on science and technology;

d) Other investment activities serving the development of science and technology.

2. Expenditure for science and technology affairs, including the following contents:

a) Expenditure for implementing scientific and technological tasks, including direct expenditure for scientific and technological tasks and expenditure for management activities of the competent authority regarding scientific and technological tasks, post-acceptance evaluation expenditure for scientific and technological tasks;

b) Regular expenditure and regular tasks according to the functions of public scientific and technological organizations in accordance with the legal provisions on the self-management and self-responsibility mechanism of public scientific and technological organizations;

c) Capital contribution and additional capital for state national funds in the field of science and technology;

d) Training and improving the professional expertise of management and research staff in science and technology both domestically and internationally;

đ) Purchasing scientific research results and technology development; purchasing technology in accordance with the legal provisions on technology transfer; supporting technology transfer and import;

e) Hiring domestic and foreign experts and consulting organizations;

g) Promoting the application of scientific and technological progress;

h) Supporting the commercialization of scientific research results and technology development, nurturing and technological innovation;

i) Popularizing knowledge, communication, information, and statistical activities in science and technology; organizing domestic and international scientific conferences;

k) Supporting registration and protection of intellectual property rights, standardization - measurement - quality control activities, publication of scientific research results; rewarding and scientific and technological awards;

l) Supporting international integration activities in science and technology: participating in international conferences and seminars; surveying and seeking information about science and technology and technology supply sources abroad; participating in international science and technology activities, events, and forums; matching funds for international science and technology projects; ensuring the operation of overseas science and technology representative networks;

m) Expenditure for maintenance, repair, and servicing of material and technical infrastructure and equipment for scientific and technological activities;

n) Other related expenditures.

n) Other related expenses.

Article 5. On planning, budget preparation, and allocation of state budget for science and technology

1. Proposing plans and budgets for the state budget for science and technology

a) The Ministry of Science and Technology shall be responsible for proposing the structure of expenditures between investment development and scientific and technological activities; the ratio of expenditures between the central budget and local budgets;

b) Based on guidelines for preparing the state budget, the Ministry of Science and Technology shall guide ministries, ministerial-level agencies, government-affiliated agencies, provincial People's Committees, and centrally-administered city People's Committees to prepare plans and budgets for the state budget for science and technology for the next planning year;

c) Based on the state budget's capacity to meet demands, practical needs, and the results of the previous year's allocated budget for ministries, ministerial-level agencies, government-affiliated agencies, provincial People's Committees, and centrally-administered city People's Committees, the Ministry of Science and Technology shall propose plans and budgets for scientific and technological activities to be submitted to the Ministry of Planning and Investment and the Ministry of Finance;

d) Based on the guidelines of the Ministry of Science and Technology, the Department of Science and Technology shall be responsible for proposing to provincial People's Committees and centrally-administered city People's Committees guidelines for building plans and budgets for science and technology at the local level; processing, summarizing, and submitting to provincial People's Committees and centrally-administered city People's Committees;

2. Preparing the state budget for science and technology

a) The Ministry of Planning and Investment shall prepare and submit to the Government the budget for investment development in science and technology according to the proposed budget of the Ministry of Science and Technology. In case there are changes compared to the proposed budget of the Ministry of Science and Technology, the Ministry of Planning and Investment shall have the responsibility to notify the Ministry of Science and Technology;

b) The Ministry of Finance shall prepare and submit to the Government the budget for scientific and technological activities according to the proposed budget of the Ministry of Science and Technology. In case there are changes compared to the proposed budget of the Ministry of Science and Technology, the Ministry of Finance shall have the responsibility to notify the Ministry of Science and Technology;

Provincial People's Committees and centrally-administered city People's Committees shall base their annual budget allocations for science and technology to establish plans for investment development and scientific and technological activities not lower than the levels assigned by the Central Government;

The Department of Planning and Investment shall prepare and submit to provincial People's Committees and centrally-administered city People's Committees the budget for investment development in science and technology according to the proposal of the Department of Science and Technology. In case there are changes compared to the proposal of the Department of Science and Technology, the Department of Planning and Investment shall have the responsibility to notify the Department of Science and Technology before submitting to provincial People's Committees and centrally-administered city People's Committees;

The Department of Finance shall prepare and submit to provincial People's Committees and centrally-administered city People's Committees the budget for scientific and technological activities according to the proposal of the Department of Science and Technology. In case there are changes compared to the proposal of the Department of Science and Technology, the Department of Finance shall have the responsibility to notify the Department of Science and Technology before submitting to provincial People's Committees and centrally-administered city People's Committees;

3. Allocating the budget for science and technology

After the total budget expenditure is approved by the National Assembly, the budget for science and technology shall be allocated as follows:

a) Investment development funds for science and technology, regular expenditure funds, and contingency funds within the scientific and technological activity budget shall be allocated according to the provisions of the State Budget Law;

b) Funds for implementing scientific and technological tasks shall be allocated as follows:

Funds for implementing national-level scientific and technological tasks shall be transferred to the National Science and Technology Development Fund;

Funds for implementing scientific and technological tasks at the ministry, ministerial-level agency, government-affiliated agency, provincial, and centrally-administered city levels shall be transferred to the science and technology development fund of the respective ministry, ministerial-level agency, government-affiliated agency, province, or centrally-administered city. For ministries, ministerial-level agencies, government-affiliated agencies, provinces, and centrally-administered cities that have not established or have not yet established a science and technology development fund, these funds shall be directly transferred to the first-level budget units of the ministries, ministerial-level agencies, government-affiliated agencies, and provincial Departments of Science and Technology;

After signing a science and technology contract, funds for implementing scientific and technological tasks at various levels shall be credited to the account of the leading unit of the scientific and technological task at the State Treasury;

4. The Prime Minister shall stipulate principles and criteria for allocating funds for scientific and technological activities.

Article 6. Special investment mechanism and implementation methods for special science and technology tasks

1. Special science and technology tasks are those defined in Article 54 of the Law on Science and Technology.

2. Special investment mechanism

a) The State ensures sufficient funding to implement special science and technology tasks. Funding is raised from the state budget and other lawful sources;

b) The funding for implementing special science and technology tasks is detailed approved according to each specific source within the total funding for each special science and technology task;

c) The Minister of Science and Technology is responsible for presenting to the Prime Minister the special science and technology tasks including the total investment amount and the structure of funding for implementing special science and technology tasks. The Prime Minister decides within his authority or submits to the National Assembly for consideration and decision on the investment policy.

3. Implementation methods

a) Special science and technology tasks are directly assigned to the leading organization after being approved by the competent authority. For urgent special science and technology tasks, the leading agency has the responsibility to promptly implement the task according to the requirements of the competent state agency, can temporarily receive funding to implement the task, while simultaneously preparing the total funding estimate for approval by the competent authority as stipulated in Point c Clause 2 of this Article;

b) The leading organization implementing special science and technology tasks shall open a separate account for receiving and disbursing funds allocated for the approved special science and technology tasks;

c) In case additional funding is needed, the leading organization implementing special science and technology tasks shall report to the Ministry of Science and Technology for approval by the competent authority as stipulated in Point c Clause 2 of this Article;

d) The leading organization implementing special science and technology tasks shall regularly or urgently report to the competent state agency on the implementation of special science and technology tasks;

đ) The competent state agency shall have the responsibility to promptly meet the requirements and proposals for mobilizing social resources to implement the special science and technology tasks of the leading organization;

4. Special science and technology tasks are considered completed after the competent state agencies on science and technology issue confirmation documents recognizing the acceptance level or higher upon completion;

5. The Ministry of Science and Technology shall take the lead in coordinating with relevant ministries and sectors to guide, organize inspections, and evaluate the implementation of special science and technology tasks;

Article 7. Science and Technology Development Fund of Ministries, Agencies Equivalent to Ministries, Government Agencies, Provinces, and Central-Straightly-Governed Cities

1. The Science and Technology Development Fund of ministries, agencies equivalent to ministries, government agencies, provinces, and central-straightly-governed cities shall be established when the following conditions are met:

a) Human resources and technical infrastructure ensuring the operation of the Fund; staff quota adjusted within the existing total public service staff quota;

b) Ensuring the capital structure from the state budget and other sources;

c) Not increasing management costs from the state budget;

2. The Science and Technology Development Fund of ministries, agencies equivalent to ministries, and government agencies is a public service unit established by the Minister or Head of the agency equivalent to a ministry or government agency;

The Science and Technology Development Fund of provinces and central-straightly-governed cities is a public service unit established by the Chairman of the People's Committee of the province or central-straightly-governed city;

3. The Fund is used for purposes specified in Clause 1 of Article 60 of the Law on Science and Technology;

4. The Fund is formed from the following sources:

a) Initial capital from the state budget allocated for science and technology development of ministries, agencies equivalent to ministries, government agencies, provinces, and central-straightly-governed cities;

b) Additional annual capital from the state budget allocation for ministry-level and provincial-level science and technology tasks;

c) Revenue from the activities of the fund;

d) Funding transferred voluntarily or entrusted from enterprise science and technology development funds;

đ) Entrusted from science and technology development funds of ministries, agencies equivalent to ministries, government agencies, provinces, and central-straightly-governed cities;

e) Voluntary contributions, donations, and entrusted funds from organizations, enterprises, individuals, and other lawful sources;

5. The charter of science and technology development funds of ministries, agencies equivalent to ministries, government agencies, provinces, and central-straightly-governed cities is established based on the model charter issued by the Minister of Science and Technology and approved by the Minister, Head of the agency equivalent to a ministry or government agency, and the Chairman of the People's Committee of the province or central-straightly-governed city;

6. The Minister, Heads of agencies equivalent to ministries, government agencies, and the Chairman of the People's Committee of the province or central-straightly-governed city shall be responsible for reporting to the Ministry of Science and Technology on the establishment and operation of the science and technology development fund under their agency for the Ministry of Science and Technology to compile and report to the Prime Minister;

7. The Prime Minister shall specify Clause 1 of this Article;

Section 2

ENTERPRISE INVESTMENT

Article 8. Sources of investment for science and technology of enterprises

1. The enterprise's science and technology development fund.

2. Legal sources of capital of the enterprise.

Article 9. Establishment of the enterprise's science and technology development fund

1. State-owned enterprises must annually allocate from 3% to 10% of their corporate income tax revenue to establish the enterprise's science and technology development fund.

2. Non-state-owned enterprises have the right to allocate a reasonable proportion, up to a maximum of 10%, from their corporate income tax revenue to establish the enterprise's science and technology development fund.

3. The Prime Minister shall issue regulations encouraging enterprises to establish science and technology development funds to invest in enhancing the scientific and technological potential of the enterprise and its industry or business sector, thereby contributing to improving efficiency and competitiveness.

Article 10. Contents of expenditures from the enterprise's science and technology development fund

1. Implementing national, ministerial, and provincial-level scientific and technological tasks.

2. Implementing scientific and technological tasks of the enterprise

Enterprises must develop rules for proposing, determining tasks, organizing implementation, and evaluating acceptance of scientific and technological tasks of the enterprise, as well as rules for expenditure and use of the enterprise's science and technology development fund, and submit them to the tax authority where the enterprise registers taxes for control. The legal representative of the enterprise is responsible for implementing these rules properly.

The establishment of rules must ensure transparency within the enterprise.

3. Supporting the development of science and technology of the enterprise

a) Equipping material and technical infrastructure for the enterprise's scientific and technological activities: Establishing research and development organizations, analytical centers, testing, trial, inspection, calibration, product testing facilities; information infrastructure, databases, and statistics on the enterprise's scientific and technological activities; expenses for maintenance, repair, and servicing of material and technical infrastructure and equipment for scientific and technological activities; other expenses for developing science and technology; quality management systems of the enterprise;

b) Purchasing rights to use and ownership: Trade secrets; technical knowledge transferred in the form of technological solutions, technological processes, technical designs, engineering solutions, formulas, technical parameters, drawings, technical diagrams, computer programs, data; production rationalization solutions, technological innovation; patents, utility models, plant varieties, industrial designs; inventions; research results, products related both domestically and internationally to serve the enterprise's scientific and technological activities;

c) Purchasing machinery and equipment accompanied by technology transfer objects as stipulated in Article 7 of the Technology Transfer Law to replace part or all of the existing technology with more advanced technology to improve product productivity and quality or develop new products of the enterprise;

d) Paying salaries, hiring experts, or contracting with domestic and foreign scientific and technological organizations to carry out the enterprise's scientific and technological activities;

đ) Expenditures for training scientific and technological human resources of the enterprise according to laws on science and technology;

e) Expenditures for innovative activities according to laws on innovation;

g) Expenditures for cooperation in scientific and technological activities between organizations, individuals, and domestic and foreign enterprises: Surveying, seeking partners, and identifying technological needs both domestically and internationally; costs for joint research tasks in fields of science and technology encouraged and prioritized by the state;

h) Expenditures for evaluation, testing, standardization, promotion, and commercialization of new products and technologies; registering intellectual property rights.

4. Transfers to the enterprise's science and technology development fund as provided for in Clause 2, Article 11 of this Decree, except for cases involving foreign-invested enterprises (FDI) with parent companies abroad.

5. Payments to the state's science and technology development fund as provided for in Point a, Clause 5, Article 11 of this Decree.

6. Management expenses for the enterprise's science and technology development fund.

7. Expenditures from the enterprise's science and technology development fund must be supported by receipts in accordance with the rules for expenditure and use of the Fund. In cases where the enterprise requires funds for scientific and technological activities exceeding the current amount in the Fund during the year, it may choose to allocate from the Fund of subsequent years to cover the shortfall or include it in deductible expenses when determining taxable corporate income for the tax period.

Article 11. Management of the Science and Technology Development Fund of Enterprises

1. Annually, enterprises must prepare reports on the allocation and utilization of the Fund, to be submitted to the tax authority where the enterprise registers for corporate income tax payment, the Department of Science and Technology, and the Department of Finance. The submission deadline is the same as the deadline for submitting the final corporate income tax report.

2. Enterprises may transfer sources between science and technology development funds in the following forms:

a) Between holding companies and member enterprises and vice versa;

b) Between parent companies and subsidiary companies and vice versa.

3. The transfer and the ratio of source transfer between science and technology development funds of holding companies, parent companies with those of member enterprises, subsidiary companies and vice versa shall be decided by the Chairman of the Board of Directors, the Chairman of the Board of Members or the General Director, Director (the legal representative of the enterprise) based on the ratio of the Fund allocation stipulated in the charter of the organization and operation of the Fund, investment needs for science and technology activities at member enterprises, and the development needs and plans for science and technology of the entire system.

4. Enterprises that have transferred sources between Funds according to the forms prescribed in Clause 2 of this Article must report the situation of receiving transfers and the use of the transferred Fund amount to the directly managing tax authority unit, the Department of Finance, and the Department of Science and Technology where the business registration is made.

5. In cases where enterprises do not have a need to use or do not fully utilize the science and technology development fund:

a) State-owned enterprises must remit to the National Science and Technology Development Fund or the science and technology development fund of the ministries in charge, provinces, and cities.

Other enterprises are entitled to contribute to the science and technology development funds of provinces and cities where the enterprises register for tax payment;

b) In case of not contributing to state funds, within five years from the year following the year of establishing the fund, if the science and technology development fund of non-state enterprises is not used, or is not fully utilized, or is used for improper purposes, the enterprise must pay to the state budget the corporate income tax calculated on the income allocated to the fund that was not used or used improperly and the interest generated from that corporate income tax.

6. Enterprises that have contributed to the science and technology development fund as specified in Point a Clause 5 of this Article when having scientific and technological tasks requiring funding may request support from the science and technology development fund.

The science and technology development fund that has received the transfer is responsible for supporting the transferred funding amount and prioritizing additional support within the fund's capacity according to the budget of the scientific and technological task.

7. The Ministry of Science and Technology shall take the lead and coordinate with the Ministry of Finance to provide detailed guidance on Articles 10 and 11 of this Decree.

Section 3

INVESTMENT BY ORGANIZATIONS AND INDIVIDUALS

Article 12. Mobilization of Non-State Budget Capital for Investment in Science and Technology

1. The State encourages organizations and individuals to invest in science and technology in Vietnam through various forms: Direct investment, joint ventures, joint operations with Vietnamese science and technology organizations and enterprises, or entrusted investment. In this case, the investment project enjoys preferential forms as prescribed by law.

2. Organizations and individuals providing financial support for science and technology in Vietnam can implement in different forms: By money, physical assets, intellectual property. The sponsor has the right to specify the purpose of the sponsorship and designate organizations and individuals in Vietnam to receive sponsorship in accordance with current laws.

3. The State encourages organizations and individuals to mobilize non-repayable grants from domestic and foreign organizations and individuals to serve science and technology activities.

4. The Prime Minister shall prescribe the management and use of sponsorship for science and technology activities.

Article 13. Science and Technology Development Fund of Organizations and Individuals

1. The Science and Technology Development Fund established by organizations and individuals is a non-profit organization that provides non-repayable grants, low-interest loans or interest-free loans, and guarantees for loan capital to serve the needs of science and technology development. The procedures for establishment and operation of lending and guaranteeing loan capital of these funds must comply with the provisions of the law.

2. The Science and Technology Development Fund of organizations and individuals is formed from contributions of founding organizations and individuals that do not originate from state budget sources; voluntary contributions, donations, and other lawful sources.

3. The Science and Technology Development Fund of organizations and individuals must register their activities at the Department of Finance where the main office of the fund is located, and simultaneously notify the establishment of the fund to the Department of Science and Technology at the same level.

4. The Science and Technology Development Fund established by organizations and individuals is given priority in leasing land for constructing the main office and branches of the fund.

Chapter III

FINANCIAL MECHANISMFOR SCIENCE AND TECHNOLOGY ACTIVITIES

Article 14. Management Mechanism for Budget Funds to Implement Science and Technology Tasks

1. The determination and approval of science and technology tasks are carried out regularly and continuously throughout the year based on the approved state budget estimate and other balanced funding sources for implementing science and technology tasks in the planned year and subsequent years corresponding to the implementation period of the approved science and technology tasks.

2. The allocation of budget funds to implement science and technology tasks is conducted through the system of science and technology development funds at various levels or secondary and tertiary budget units. Directors of the funds and heads of secondary and tertiary budget units have the responsibility to allocate budget funds for approved science and technology tasks into the deposit account of the leading agency at the State Treasury according to the progress specified in the contract signed by the competent authority with the leading organization or individual implementing the task.

In cases where there is no science and technology development fund, the head of the competent state agency has the responsibility to sign a contract to implement science and technology tasks with the leading organization or individual. Primary budget units of ministries, agencies equivalent to ministries, government agencies, provincial Departments of Science and Technology under central cities are responsible for allocating the approved budget estimates for science and technology tasks into the budget accounts of secondary and tertiary budget units at the State Treasury to implement the tasks.

3. For national-level science and technology tasks, the Ministry of Science and Technology coordinates with the managing agency to inspect, supervise, and urge organizations and individuals leading the implementation of science and technology tasks to fulfill their commitments in the contract.

For ministry-level and provincial-level science and technology tasks, the managing agency organizes inspections, supervision, and urging to ensure compliance with the commitments made in the contract.

Article 15. Allocation to final products for scientific and technological tasks funded by state budget

1. Scientific and technological tasks funded by the state budget shall be allocated to final products when they simultaneously meet the following criteria:

a) The scientific and technological task has a clearly defined final product with specific name, main quality indicators, unit of measurement, level of quality or scientific requirements to be achieved, quantity or scale of the product to be produced, application address; selected and directly assigned by the scientific and technological council to implement the allocation to final products method; accepted by the task leader and the leading agency;

b) The budget estimate of the scientific and technological task is accurately calculated based on current economic and technical norms; in cases where such norms do not exist, the competent state authority approves the description and budget estimate of the task's implementation costs, which it decides and is responsible for;

c) The description and budget estimate of the task's implementation costs are approved by the competent state authority;

2. The process and procedures for allocating to final products for scientific and technological tasks funded by the state budget include the following steps:

a) The head of the organization or individual in charge of implementing the task commits in writing to accept the allocation method;

b) The organization or individual assigned to lead the task completes the description and budget estimate of the scientific and technological task and submits them to the competent state authority;

c) The competent state authority examines and approves the description and budget estimate of the scientific and technological task, including the allocation to final products; signs a contract to implement the scientific and technological task with the organization or individual assigned to lead; signing contracts for national, ministry-level, and provincial-level scientific and technological tasks is carried out according to Clause 2, Article 27 of the Law on Science and Technology;

d) Scientific and technological tasks allocated to final products receive funding from corresponding science and technology development funds or the competent state authority according to the requirements of the leading organization, consistent with the content, objectives, requirements, and progress of the scientific and technological contract;

đ) A scientific and technological task allocated to final products is considered completed after the competent state authority on science and technology issues confirms the acceptance results in writing at or above the required level;

e) The contract for implementing the scientific and technological task is terminated after the competent state authority on science and technology issues confirms the results in writing and certifies the registration of the task's implementation results by the competent state authority responsible for registering and retaining the results of scientific and technological tasks;

3. In cases where scientific and technological tasks funded by the state budget allocated to final products are suspended or evaluated as not meeting requirements, the competent state authority is responsible for inspecting and determining the reasons for suspension or non-compliance, and issuing decisions to handle the situation;

a) The person directly approving the scientific and technological task who fails to fulfill their responsibilities, causing loss and waste of resources and state budget, must bear legal responsibility for the losses and waste of resources and state budget incurred in implementing the scientific and technological task and must be dealt with according to the law;

b) The organization or individual in charge of implementing the scientific and technological task is responsible for:

Returning the entire amount of the scientific and technological task's budget that has been granted but not used to the state budget;

In cases due to objective reasons, there is no need to return the state budget funds already used;

In cases due to subjective reasons, the minimum amount to be returned is 40% of the state budget funds already used;

4. Settlement of the budget is conducted after the completion of the scientific and technological task and the parties have concluded the termination of the scientific and technological contract, using the full settlement method;

For scientific and technological tasks implemented over multiple years, the organization or individual in charge of implementing the task annually has the responsibility to compile reports according to the fiscal year regarding the actual received and spent funds.

Article 16. Partial Cost Allocation for Scientific and Technological Tasks Utilizing State Budget

1. Scientific and technological tasks utilizing state budget that are subject to partial cost allocation are those with high risk, where the specific criteria of final products cannot be determined, and must meet the following criteria:

a) Having clearly defined work components with specified content, objectives, requirements, results, implementation costs; selected and directly assigned by the scientific and technological council through the partial cost allocation method; accepted by the task leader and the main implementing agency;

b) The budget for the allocated work component of the scientific and technological task must accurately reflect the total implementation costs based on current economic and technical standards; in cases where such standards are not available, the competent state authority must approve the detailed description and budget for the scientific and technological task and bear responsibility for it;

c) The description and budget estimate of the task's implementation costs are approved by the competent state authority;

2. The process and procedures for partial cost allocation for scientific and technological tasks utilizing state budget include the following steps:

a) Organizations or individuals entrusted with the main implementation of the task must complete the detailed description and budget of the scientific and technological task and submit them to the competent state authority;

b) The head of the competent state authority shall review and approve the detailed description and budget of the scientific and technological task, specifying the work components and allocated funds; contracts for national, ministry-level, and provincial scientific and technological tasks shall be implemented according to Clause 2, Article 27 of the Law on Science and Technology;

c) Corresponding science and technology development funds or the competent state authority shall provide funding according to the content, objectives, requirements, and progress stipulated in the scientific and technological contract;

d) A scientific and technological task utilizing state budget subject to partial cost allocation is considered completed once the competent state authority on science and technology issues a confirmation document recognizing the acceptance level or higher upon completion inspection;

e) The scientific and technological task contract shall be terminated after the competent state authority on science and technology issues a confirmation document regarding the results and the registration authority issues a certificate confirming the completion of the scientific and technological task and registers and retains the results of the task;

3. In cases where a scientific and technological task utilizing state budget subject to partial cost allocation is suspended or evaluated as unsatisfactory, the competent state authority shall be responsible for investigating the reasons leading to suspension or unsatisfactory evaluation and issuing a decision to handle the situation;

a) The person directly approving the scientific and technological task who fails to fulfill their responsibilities, causing loss and waste of resources and state budget, must bear legal responsibility for the losses and waste of resources and state budget incurred in implementing the scientific and technological task and must be dealt with according to the law;

b) Organizations or individuals primarily responsible for implementing the scientific and technological task must take responsibility for:

Returning the entire amount of the scientific and technological task's budget that has been granted but not used to the state budget;

In cases due to objective reasons, there is no need to return the state budget funds already used;

If the cause is subjective, they must refund at least 30% of the state budget funds utilized;

4. Final settlement of costs shall be conducted after the scientific and technological task has been completed and all parties have concluded the scientific and technological contract, through a comprehensive settlement of both allocated and non-allocated components.

For scientific and technological tasks implemented over multiple years, the organization or individual in charge of implementing the task annually has the responsibility to compile reports according to the fiscal year regarding the actual received and spent funds.

Article 17. Use of funds for implementing scientific and technological tasks from the state budget

1. Organizations and individuals primarily responsible for implementing scientific and technological tasks from the state budget may be allocated funds up to the final product or in parts, and are entitled to use the allocated funds in a reasonable manner to complete research tasks as follows:

a) They have the right to change the items of expenditure, the content of expenditure, and to determine the expenditure rates within the total allocated budget.

b) For funds saved from the allocated budget, organizations and individuals primarily responsible for the task may use them according to the internal financial regulations of the primary implementing agency.

2. Allocated funds must be used for their intended purposes, with supporting documentation reflecting actual expenditures, ensuring transparency within the primary implementing organization.

3. Organizations and individuals primarily responsible for implementing scientific and technological tasks from the state budget, when allocated funds in parts, shall manage and expend the portion of funds not allocated in accordance with current laws.

4. The Ministry of Science and Technology shall coordinate with the Ministry of Finance to provide detailed guidance on Articles 15, 16, and 17 of this Decree and the handling of assets formed through the implementation of scientific and technological tasks from the state budget.

Article 18. Purchase of Research Results and Technological Development

1. The purchase of research results and technological development shall be carried out when the following conditions are met:

a) The research results and technological development to be purchased must have value for economic and social development, ensure national security and defense, and have clear, transparent, and quantifiable criteria.

b) There must be organizations or individuals committed to applying and using the research results and technological development.

c) Organizations or individuals undertaking research and technological development must agree to undergo content and funding reviews according to current regulations of competent state agencies, commit to self-funding the research and technological development task.

2. Competent state agencies shall enter into contracts with organizations or individuals detailing the conditions for implementation time, scientific and technological products, procurement funds, and payment methods after receiving research results and technological development from organizations or individuals, and shall establish a Scientific and Technological Council to evaluate the results.

3. Based on the evaluation report of the Scientific and Technological Council at satisfactory levels or above, competent state agencies shall be responsible for paying 100% of the contract value for purchasing research results and technological development from organizations or individuals. In cases where research results and technological development do not meet requirements or are not completed within the specified timeframe of the contract, competent state agencies have the right to refuse payment and proceed with contract termination procedures.

4. The head of the competent state agency deciding to purchase research results and technological development using state budget funds shall be responsible for the procurement decision and the effectiveness of the use of purchased research results and technological development.

Article 19. Allocation for scientific and technological tasks and purchasing scientific research results and technological development using non-state budget funds

Enterprises, organizations, and individuals implementing scientific and technological tasks and purchasing scientific research results and technological development using non-state budget funds shall be entitled to apply Articles 15, 16, 17, and 18 of this Decree.

Scientific and technological enterprises shall enjoy the following preferential treatments:

1. Competent state agencies shall consider and grant the right to use or ownership over state-owned scientific and technological results.

2. Enjoy tax exemption and reduction on corporate income tax as stipulated by the Corporate Income Tax Law and related legal documents, similar to enterprises investing in high-tech zones.

3. Reasonable expenses incurred for scientific research and technological development activities, production, business, services, and other activities conducted in accordance with the law shall be deductible when calculating taxable income.

4. Exempt from registration fees for land use rights and house ownership registration.

5. Enjoy credit investment preferential policies of the Vietnam Development Bank, the Science and Technology Development Fund, and other funds as prescribed by law to implement investment projects in production and business.

6. Priority in utilizing research equipment serving scientific research and technological development activities at national key laboratories, technology incubators, enterprise incubators, and state-owned scientific and technological research institutions.

7. Support for consulting and training services provided by technology incubators and enterprise incubators established by state agencies.

8. Priority in leasing land and infrastructure at the lowest price as prescribed by industrial park management boards, export processing zones, economic zones, high-tech zones, and local people's committees.

9. Exemption or reduction of land rental fees as prescribed.

Chapter IV

IMPLEMENTATION

Article 21. Effective Date

1. This Decree takes effect from December 1, 2014.

2. Abolish Decision No. 117/2005/QĐ-TTg dated May 27, 2005 of the Prime Minister on the issuance of the Model Charter for the Organization and Operation of Science and Technology Development Funds of Ministries, Agencies Equivalent to Ministries, Government Agencies, and Central Provinces and Cities. The Minister of Science and Technology shall be responsible for organizing the implementation and guiding the enforcement of this Decree.

Article 22. Responsibility for enforcement

Ministers, Heads of agencies equivalent to ministries, Heads of government agencies, Chairpersons of provincial and centrally-administered city People's Committees, and Heads of relevant agencies and organizations shall be responsible for enforcing this Decree./.

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the direct control of the central government, and Heads of relevant agencies and organizations shall be responsible for implementing this Decree./.