Joint Circular No. 98/2008/TTLT-BTC-BCT guiding the management and use of state budget funds for the National Key Science and Technology Research Program to develop pharmaceutical industrialization until 2020.

JOINT CIRCULAR

Guidelines for the management and use of state budget funds allocated to the National Key Science and Technology Research Program for the Development of Pharmaceutical Industry until 2020

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decision No. 61/2007/QĐ-TTg dated May 7, 2007 of the Prime Minister approving the National Key Science and Technology Research Program for the Development of Pharmaceutical Industry until 2020;

Chapter I.

GENERAL PROVISIONS

Article 1. These Circulars guide the management and use of state budget funds allocated to the National Key Science and Technology Research Program for the Development of Pharmaceutical Industry until 2020 (referred to as the Pharmaceutical Program) according to the provisions set forth in Decision No. 61/2007/QĐ-TTg dated May 7, 2007 of the Prime Minister.

Article 2. The sources of funding for the Pharmaceutical Program include: state budget funds for scientific research and training activities, development investment funds annually; capital from domestic and foreign economic organizations and individuals; international cooperation funds and other lawful sources.

Article 3. Units using funds from the Pharmaceutical Program must ensure compliance with the intended purpose and regulations; they are subject to inspection and supervision by competent authorities; at the end of the year or upon completion of tasks, projects, they must settle accounts for the funds used according to current regulations.

Chapter II.

SPECIFIC PROVISIONS

Article 1. Sources of funds and expenditure items of the Pharmaceutical Program include:

a. Expenditure from state budget funds for science and technology:

- Implementing scientific and technological research tasks under the Pharmaceutical Program as stipulated in Point 1, Section II, Article 1 of Decision No. 61/2007/QĐ-TTg dated May 7, 2007 of the Prime Minister.

- Supporting the transfer of production technology for key pharmaceutical products created by the Program (supporting training and guidance on new technology transfer).

- International cooperation expenditures on science and technology of the Pharmaceutical Program.

- Expenditures for inter-ministerial steering committee operations, Pharmaceutical Program office: purchasing office equipment; information dissemination; seminars, conferences, mid-term and final reviews of the program; selecting scientific and technological research tasks; inspecting, accepting, and evaluating projects within the program; expenditures for market establishment activities to form and develop the pharmaceutical industry; expenditures for database systems and other expenses (if any).

b. Expenditure from development investment funds:

- Constructing new specialized pharmaceutical laboratories equipped with advanced and modern machinery and equipment reaching regional standards, with some specialized pharmaceutical laboratories in critical fields reaching world-leading countries' standards; deepening investments to upgrade and modernize research facilities of public institutions, universities, and specialized pharmaceutical laboratories according to approved projects by authorized bodies.

- Supporting the purchase of modern equipment for pharmaceutical laboratories of organizations, individuals, and enterprises.

- Building a national database system and website on the pharmaceutical industry according to approved projects by authorized bodies.

c. Expenditure from state budget training funds:

- Training new and retraining scientific and technological personnel and managers at domestic and foreign universities to meet the quality requirements for human resources serving the development needs of the pharmaceutical industry.

- Training technical workers at vocational schools to implement the contents of the Pharmaceutical Program.

2. Expenditure levels:

- Units and individuals using state budget funds to implement the Pharmaceutical Program shall comply with the current financial expenditure regulations issued by authorized state agencies.

- For pilot production trial projects (Project P), the maximum support level shall not exceed 30% of the necessary new investment costs to implement the project approved by the authorized body according to current regulations (currently Circular Joint No. 85/2004/TTLT/BTC-BKHCN dated August 20, 2004 of the Ministry of Finance and the Ministry of Science and Technology guiding financial management for scientific and technological projects funded by the state budget and with recoverable funds). The support level for each project shall be decided by the Minister of Industry and Trade.

- For projects supporting the investment in modernization of pharmaceutical laboratory equipment for organizations, individuals, and enterprises: the support level shall not exceed 30% of the value of specialized pharmaceutical laboratory equipment investment according to the project implementation progress and corresponding to the actual investment ratio of the supported unit. The selection of support targets and specific support levels for each project shall be decided by the Minister of Industry and Trade.

- For scientific and technological projects that have been approved by authorized bodies and implemented according to Circular Joint No. 93/2006/TTLT/BTC-KHCN dated October 4, 2006 of the Ministry of Finance and the Ministry of Science and Technology guiding the allocation of funds for scientific and technological projects using state budget funds.

Article 3. Conditions for receiving financial support to implement projects:

Organizations and individuals implementing projects supported by funds from the Pharmaceutical Program must meet the following conditions:

a. Conditions for receiving technology transfer support:

- The technology is consistent with the objectives of the Pharmaceutical Program approved by the Prime Minister;

- Feasibility of the project: (1) Transferable technology, (2) Competitiveness of the product produced by the new technology compared to the transferred project, (3) Capacity of the recipient unit (in terms of capital, technology, location for implementation).

b. Conditions for receiving support for investment in equipment and modernization of specialized pharmaceutical laboratories:

- The investment project belongs to the research and training system of specialized pharmaceuticals (decided by the Minister of Industry and Trade);

- The investment project has been approved by the authorized body and the commitment of the unit to invest according to the project (outside the state budget support portion);

- Not having received support from any state budget source for the Project.

Article 4. Recovery of funds:

a. For scientific and technological topics and projects from the operating fund for science and technology that have recoverable products, they shall be implemented in accordance with current regulations applicable to scientific and technological topics and projects funded by state budget.

b. For experimental production projects: The level and time of recovery of funds for each project shall be decided by the Minister of Industry and Trade based on current regulations of the Ministry of Finance and the Ministry of Science and Technology regarding financial management for scientific and technological projects supported by the state budget and having recoverable funds.

In cases where projects must be suspended due to objective reasons causing damage to the project such as typhoons, floods, fires, the recovery of funds may be exempted or reduced: The main implementing units of the project shall submit a written report to the superior managing agency for inspection and confirmation of the implementation process and the reason for suspending the project, as well as the ability to repay the state budget support funds. After inspection and confirmation, the Ministries, central agencies, and provincial People's Committees shall report to the Ministry of Industry and Trade for consideration and decision on the amount of exemption or reduction of recovery funds, following the written agreement of the Ministry of Finance.

c. The Ministry of Industry and Trade is responsible for monitoring and urging the recovery of funds; annually compiling and reporting on the recovery of funds together with the final settlement of funds for the Chemical Medicine Program in accordance with current regulations.

5. Management and use of assets invested and purchased under the Chemical Medicine Program using state budget funds shall be carried out in accordance with current regulations.

6. Establishment, execution, and final settlement of the state budget:

The establishment, execution, and final settlement of research funding, operating funds for training, and investment capital of the Chemical Medicine Program shall be conducted in accordance with the State Budget Law and current guiding documents; this Circular provides specific guidance on certain points as follows:

Based on the content of the Chemical Medicine Program and the guidelines of the Ministry of Industry and Trade, relevant ministries, central agencies, localities, and organizations and individuals who wish to participate in implementing the program's contents shall build and propose tasks, topics, and projects to register with the Ministry of Industry and Trade for organization to determine tasks, select, examine, review, and approve according to regulations.

Annually, based on the tasks, topics, and projects that have been reviewed and approved according to regulations, units shall prepare budgets, send them to the superior managing agency for consolidation into the budgets of relevant ministries, central agencies, and localities, and send them to related ministries and agencies in accordance with current regulations, while also sending them to the Ministry of Industry and Trade; for individual persons preparing and submitting budgets to the Ministry of Industry and Trade. The Ministry of Industry and Trade shall consider and consolidate these into the annual budget expenditure plan, send it to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Education and Training, and the Ministry of Science and Technology for consolidation and submission to the competent authority for decision-making; specifically:

a. For operating funds for science and technology: The Ministry of Industry and Trade shall cooperate with the Ministry of Science and Technology and the Ministry of Health to determine scientific and technological tasks, select organizations and individuals in charge, review and approve the content and funds, and submit them to the competent authority for examination and decision.

Based on the state budget expenditure plan of the Chemical Medicine Program assigned by the competent authority, the Ministry of Industry and Trade shall cooperate with the Ministry of Science and Technology to approve detailed budgets for scientific and technological topics and projects; implement according to current regulations for national key scientific and technological programs.

b. For operating funds for training: The Ministry of Industry and Trade shall cooperate with the Ministry of Education and Training to determine the need for human resource training and the implementation funds, and submit them to the competent authority for examination and decision in accordance with current regulations.

For overseas training, it shall be carried out in accordance with Decision No. 356/QĐ-TTg dated April 28, 2005 of the Prime Minister approving the Project for Training Cadres at Foreign Institutions Using the State Budget; the Ministry of Industry and Trade shall determine the training needs and work with the Ministry of Education and Training to implement them.

c. For development investment capital:

Annually, based on the investment needs of approved projects and their progress, the Ministry of Industry and Trade shall prepare the budget at the same time as the annual budget preparation, and send it to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for examination and decision.

Construction projects shall be implemented in accordance with the current regulations on management and investment construction.

7. Reporting, inspection, and supervision work:

- The Ministry of Industry and Trade is responsible for coordinating with relevant ministries and agencies to regularly or urgently inspect the implementation of the content, management, and use of funds for the Chemical Medicine Program to ensure proper and effective use.

- Units and individuals assigned to carry out tasks, topics, and projects of the Chemical Medicine Program shall report on the implementation situation every six months and at year-end according to the guidelines of the Ministry of Industry and Trade.

- Annually, the Ministry of Industry and Trade shall compile and report on the implementation of the Chemical Medicine Program to the Prime Minister, and send copies to the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Science and Technology, and the Ministry of Education and Training.

Chapter III.

IMPLEMENTATION

1. This Circular takes effect fifteen days after its publication in the Official Gazette.

2. The Ministry of Industry and Trade shall guide the registration procedures for implementing tasks, topics, and projects of the Chemical Medicine Program. During implementation, if there are difficulties, units are requested to reflect them to the Ministry of Finance and the Ministry of Industry and Trade for consideration and appropriate amendments.

During implementation, if there are difficulties, units are requested to reflect them to the Ministry of Finance and the Ministry of Industry and Trade for consideration and appropriate amendments.