The translation is for reference

PROPOSAL ON
THE REFORM OF THE SCIENCE AND TECHNOLOGY MANAGEMENT MECHANISM

(Issued enclosed with Decision No 171/2004/QĐ-TTg
dated September 28, 2004 by the Prime Minister)

INTRODUCTION

I. THE CURRENT SITUATION OF THE SCIENCE AND TECHNOLOGY MANAGEMENT MECHANISM

1. Initial renovations

2. Weaknesses and causes

II. OBJECTIVES, OPINIONS AND PRINCIPLES FOR THE CONTINOUS REFORM OF THE SCIENCE AND TECHNOLOGY MANAGEMENT MECHANISM

1. Objectives

2. Opinions

3. Principles

III. SOLUTIONS FOR THE REFORM OF THE SCIENCE AND TECHNOLOGY MANAGEMENT MECHANISM

1. Improving the mechanism of developing and organizing the implementation of science and technology tasks

2. Renovating the management mechanism and operations of science and technology organizations

3. Renovating mechanisms and policies on financial investment in science and technology activities

4. Renovating the management mechanism of science and technology human resources

5. Developing the technology market

6. Improving the operational mechanism of State management organism in terms of science and technology

IV. ORGANIZATION AND IMPLEMENTATION

INTRODUCTION

Science and Technology are the foundation and motivation for speeding up the industrialization, modernization and the country’s sustainable development. Our Party and State has soon defined the essential role of the scientific and technical revolution. Over the past time, especially in the renovation stage, many important documents on strategic directions, mechanisms and policies on science and technology development have been issued such as Resolution of the Central government 2 Session VIII (1996); the Conclusion of the Central Conference 6 Session IX (2002); Law on Science and Technology (2000); Vietnam Science and Technology Development Strategy by 2010 (2003); and many specific policies on developing potentials and renovating the science and technology management mechanism.

Thanks to the Party and State’s attentions and especially efforts of S&T staff, S&T activities have experienced changes, gained some advancements and certain results, actively contributed to the socio-economic development and ensured the country’s defense and security.

However, our country’s current S&T activities haven’t been able to meet requirements of the industrialization and modernization cause, especially in the context of international economic integration and the development of the knowledge-based economy. The Party Congress IX has showed basic limitations of current S&T activities: "They haven’t been closely linked with demands and operations of economic and social activities; research results are slowly put into use; our S&T level is still low as compared that with neighboring countries; capacities of creating new technologies are very limited. Scientific research agencies are slowly re-organized in a synchronized way, very scatterly and lack of coordination, leading to the low efficiency. Research institutes, enterprises and universities don’t closely link with each other. The investment in building technical facilities is not focused and completed for each objective. High-level S&T staffs are still few but aren’t used properly."

Objectives of Vietnam’s Science and Technology Development Strategy by 2010 are: "Focusing on developing our S&T field towards modern and integration directions, striving to reach the average advanced level in the region by 2010, developing S&T to really become the foundation and motivation for promoting the country’s industrialization and modernization cause."

In order to achieve objectives of our country’s S&T development by 2010, it is necessary to strongly renovate the S&T management mechanism and have basic shifts in the S&T management appropriate with the socialist-oriented market economy, with specialized characteristics of S&T activities, and requirements of active international economic integration in order to significantly improve the quality and efficiency of S&T activities; strengthen and use effectively S&T potentials.

The proposal on the reform of the S&T management mechanism is focused on main solutions: (1) Improving the mechanism of developing and organizing the implementation of S&T tasks; (2) Renovating the management mechanism and operations of S&T organizations; (3) Renovating mechanisms and policies on financial investment in S&T activities; (4) Renovating the management mechanism of S&T human resources; (5) Developing the technology market; (6) Improving the operational mechanism of State management organism in terms of S&T.

I. CURRENT SITUATION OF THE SCIENCE AND TECHNOLGOY MANAGEMENT MECHANISM

1. Initial renovations

Together with the renovation of economic mechanisms, over the pats time, the S&T management mechanism have gradually renovated and gained some initial results.

The development and organization of the implementation of S&T tasks are carried out with directions of focusing, concentrating, linking closer with the socio-economic development tasks. State programs and themes are set more focused, overcoming the situation of being scattered, flattened, more balanced between natural sciences and social sciences and humanities. The mechanism for selecting organizations and individuals to implement S&T tasks with principles of competitiveness, democracy, equality and publicity has initially been applied, contributing to improve the quality of implementing S&T tasks.

The management mechanism of S&T organizations has gradually renovated with directions of socializing and linking with production and business. Organizations and individuals of every economic sector have rights to set up S&T organizations. The operation of these organizations is expanded from research, training to production and services of S&T. There appear many non-State S&T organizations and production units in research institutes and universities which quickly help to introduce research results into production.

The financial mechanism and policies for S&T have been renovated by increasing the S&T expenditure ratio in the total expenditure from State budget and diversifying S&T investment sources. The budget allocation to scientists has been improved one step on the basis of selecting with competitive principle and reducing unnecessarily intermediate steps. The financial independence has initially applied to public S&T organizations.

The human resource management mechanism has been renovated by assigning more power for S&T staffs in signing contracts on scientific researches and technology development, in concurrent positions and international cooperation activities. The contracted regulation has been expanded more to S&T organizations. Some forms of honors and awards have been applied to S&T staff.

Regulations on supporting the technology market development have initially been established. Legal regulations on S&T contracts, technology transfer, and intellectual property have been issued to create favorable conditions for commercializing S&T achievements. Technology – equipment markets have been organized in many localities and nationwide, establishing market transaction channels to promote the purchase and selling of S&T products.

The assignment and decentralization in the State management of S&T have been renovated one step by improving the personnel organization, stipulating functions, tasks and responsibilities of Ministries, ministerial agencies, People’s Committee of provinces and cities under the Central government.

Results brought in from renovating the S&T management mechanism recently have contributed to general S&T achievements, which are appraised by the Party Congress IX “... social sciences and humanities, natural sciences and technologies have actively changed and closely linked with the socio-economic development."

2. Weaknesses and causes

Although certain achievements have been gained, our S&T management mechanism haven’t basically been renovated, inappropriate with the socialist-orientated market economy and S&T specialized characteristics in tendencies of globalization and international economic integration.

The identification and organization of the implementation of S&T tasks don’t really come from the socio-economic development tasks. Rights and responsibilities of branches and levels in identifying S&T tasks are not defined clearly. There is a lack of efficient mechanisms to overcome the overlap of S&T tasks among branches, levels and localities. Selection criteria and selection of experts to participate in consulting councils which identify and select organizations and individuals to implement S&T tasks and the assessment of research results are insufficient.

The management mechanism of S&T organizations is not appropriate with specialized characteristics of creative labor and regulations of the socialist-oriented market economy. There is a lack of planning on S&T organizations to meet development requirements of key S&T branches and fields and demands of the socio-economic development. S&T organizations haven’t been delegated with adequate autonomy on planning, finance, human resource and international cooperation in order to promote the dynamics, creativeness and links between research - training and production and business. Specific criteria for assessing the quality and efficiency of S&T activities in general and S&T organizations in particularly haven’t been established.

The financial mechanism and policies on S&T haven’t created motivations and favorable conditions for organizations and individuals to implement S&T activities. The financial mechanism hasn’t brought in the high independence for S&T organizations. The State investment in S&T is still scattered and unfocused on key fields and works. There is a lack of efficient measures to mobilize non-State capital sources for S&T. And risky investment sources are also lacked to promote researches and use of high technologies in production and business.

The management mechanism of S&T staff hasn’t created motivations to promote creativeness of S&T staff. The shift from the civil service regulation into the official and contracted ones has been slowly carried out and hasn’t created favorable conditions for staff rotation and changes. There is a lack of specific mechanisms and measures to develop and improve roles of leading S&T staff and strong S&T staff groups. The salary system has still been inconsistent and unable to encourage staff to fully be committed to the S&T cause. There haven’t been specific policies on strongly promoting outside S&T forces to contribute to the country’s development cause.

The technology market is still small and less developed. The technology purchase and selling and circulation of research results are very limited due to the lack of important factors and elements that constitute the market and necessary legal regulations.

Most of research results only stop at the laboratory level and many completed technologies haven’t been created for the commercialization. The purchase of technology patents from advanced countries hasn’t paid proper attention in order to renovate available technologies.

Regulations on intellectual property rights and technology transfer haven’t encouraged organizations to carry out researches and exploit and commercialize research results which are funded from the State budget. The enforcement of intellectual property is still low. Capacities of technology intermediary organizations are still weak and can’t meet needs of being a bridge between the demand and supply.

The State management of S&T hasn’t been timely renovated with requirements of shifting into the market economy. There is a lack of specific State management mechanism of S&T. The system of legal and regulatory documents on S&T activities is still lacked of, unspecific, unsynchorized and backward and many regulations are not feasible. There lacks of the clear delegation and decentralization of rights and responsibilities among Ministries, branches and the Central government with localities.

The above- mentioned weaknesses have been resulted from following main causes:

Firstly, the opinion that S&T are the foundation and motivation for the country’s development has been affirmed in the Party resolutions but in realty it hasn’t been fully aware and implemented by all levels, branches and localities during the socio-economic development process. Many the Party and State’s guidelines and policies on S&T development have been slowly institutionalized by legal and regulatory documents to meet renovation demands in practice; leaders at all level are not patient and determined enough in organizing and guiding the implementation of S&T renovation.

Secondly, thinking and methods of the S&T management have been slowly renovated in conditions of shifting into the socialist-oriented market economy and international economic integration. The State responsibilities haven’t been clearly identified for S&T activities which the State should invest in, for example, basic researches; public researches, strategic researches, development policies; ect; and there haven’t been any mechanisms or polices which are appropriate for necessary S&T activities and make use of the market mechanism such as researches on technology use and development, S&T services.

There is no clear separation between the State administrative management and non-productive activities, leading to the fact that the State management agencies directly are in charge of scientific researches and technology development. There is a lack of efficient mechanisms of investigation, examination and regulations on clear responsibilities in S&T activities.

Thirdly, the withdrawal of lessons learnt from typical examples hasn’t been paid proper attention. In recent years, with the creativeness and dynamics of S&T organizations, many good examples on linking scientific research with production haven’t been summarized timely for replication.

Fourthly, the current economic management mechanism still maintains the indirect State subsidy through preferential and monopoly forms in many fields, causing the fact that State-owned enterprises pay less attention to technology research, use and renovation in order to improve their competitiveness. S&T capacities of enterprises are still insufficient and lacked of S&T staff in enterprises, who serve as a bridge for introducing research results in production. The less developed financial and monetary system hasn’t created favorable conditions for enterprises to mobilize capital sources to invest in S&T by themselves.

II. OBJECTIVES, OPINIONS AND PRINCIPLES FOR THE CONTINOUS RENOVATION OF THE SCIENCE AND TECHNOLGOY MAANGEMETN MECHANISM

1. Objectives

a) General objectives:

From now on to 2010, continue the renovation, make basic changes in the S&T management appropriate with the socialist-oriented market economy, requirements of the active international economic integration and specialized characteristics of S&T activities, in order to significantly improve the quality and efficiency, strengthen S&T potentials, serve effectively for the country’s sustainable development with high speeds.

b) Specific objectives:

Improving the system of legal and regulatory documents on renovating the S&T management mechanism.

Improving mechanisms for identifying and organizing the implementation of S&T tasks, linking with socio-economic development demands and mechanisms for assessing S&T activities based on standards of scientific quality and socio-economic efficiency.

Implementing the self-control and self-responsible mechanism of S&T public organizations; completing piloting models and withdrawing lessons learnt for replication from shifting organizations of applied research and technology development into the enterprise mechanism.

Striving to achieve the ratio of 50/50 between the investment in S&T allocated from the State budget and non-State capital sources on the basis of taking efficient measures to diversify investment sources for S&T activities; basically renovating the financial mechanism to create favorable conditions for organizations and individuals working in S&T field.

Basically completing regulations on supporting the technology market development, promoting the technology purchase, selling and renovation.

Implementing policies on awarding and treating with special attention talented people in S&T activities.

Carrying out the administrative reform, assignment and decentralization and improving the Government’s roles in order to improve the efficiency of the State management mechanism in term of S&T.

2. Opinions

The renovation of the S&T management mechanism should be carried out with following opinions:

a) Basically shifting the S&T management from the administrative and subsidized mechanism into the market economy; separating the management between the administrative sector and non-productive one in the S&T system.

b) Speeding up the socialization, creating the equal environment for every organization and individual working in S&T field.

c) Closely linking production and business with research and training; enterprises have the central role in using and renovating technologies.

d) Promoting the democracy and improving the creativeness in scientific research, especially in social sciences and humanities.

đ) Strengthening international integration and cooperation in S&T activities, acquiring selectively scientific knowledge, technology transfer, and attracting external resources for the S&T development.

3. Principles

The renovation of the S&T management mechanism in the coming time should be ensured the following main principles:

a) Ensuring the synchronization between the renovation of the S&T management mechanism and the socio-economic management mechanism.

b) Establishing clear and consistent mechanisms and policies, ensuring the harmonization, coordination, delegation and decentralization and clearly defining rights and responsibilities of Ministries, branches and localities in terms of the State management of S&T.

c) Implementing the self-control and self-responsible mechanism, cooperation and healthy competition, creating strong material and spiritual motivations for S&T organizations and individuals in the market economy.

d) Considering the S&T quality and socio-economic efficiency as key standards for assessing S&T activities; moving to apply international assessment standards.

đ) Ensuring the feasibility and highly appreciating the withdrawal of lessons learnt in the implementation.

III. SOLUTIONS FOR THE REFORM OF THE SCIENCE AND TECHNOLGOY MANAGEMENT MECHANISM

1. Improving mechanisms of developing and organizing the implementation of science and technology tasks

Mechanisms of developing and organizing the implementation of S&T tasks should come from the socio-economic development tasks of the nation, branches and localities in each period.

a) Clearly carrying out the delegation and decentralization in developing and organizing the implementation of S&T tasks

The Government decides key S&T development directions as the basis for defining S&T tasks which are at the State level, of the national importance, inter-branch, long-term, serve for the socio-economic development, security and defense and improve the national S&T capacities. The Prime Minister decides key S&T tasks at the State level and those serving directly for the Government’s management. The Ministry of Science and Technology chairs, in coordination with Ministries, branches, People’s Committee of provinces and cities under the Central government and relevant agencies, to develop and organize the implementation of these S&T tasks integrated with socio-economic programs.

Ministries, ministerial agencies, agencies under the Government decide S&T tasks serving directly for their development objectives, which are not overlapped with S&T tasks at the State level. S&T management agencies under Ministries, ministerial agencies, agencies under the Government assist Ministers and leaders of the agencies to develop and organize the implementation of S&T tasks under their authority.

People’s Committee of provinces and cities under the Central government decide main S&T applied tasks, serving directly for local socio-economic development objectives. S&T management agencies of provinces and cites under the Central government assist the Chairman of the People’s Committee to develop and organize the implementation of local S&T tasks.

S&T organizations, enterprises, organizations and individuals of all economic sectors participate in the development and implementation of State S&T tasks, and are independent in defining their own S&T tasks.

The Government’s coordination should be strengthened in developing and organizing the implementation of S&T tasks in order to avoid the overlap and repetition. The Ministry of Science and Technology assists the Government in coordinating this task.

b) Improving mechanisms of developing and organizing the implementation of S&T tasks at the State level

Prioritized S&T tasks are clearly defined at all levels. The State management agencies of S&T at all levels organize discussions among institutes, enterprises and policy-making agencies to identify prioritized tasks.

For applied S&T tasks, resulted from needs of improving the quality and competitiveness of products, it is necessary to implement linking mechanisms between S&T organizations with units which apply research results for their whole process from identifying tasks, organizing the implementation, assessing and putting the results into practice.

Widely using selection methods of organizations and individuals to implement S&T tasks with competitive, public and democratic mechanisms. The direct assignment of organizations and individuals to implement S&T tasks should be publicly done based on clear selection criteria. Improving regulations on selecting organizations and individuals to implement S&T tasks.

Renovating basically the assessment of S&T activities based on clear and specific standards appropriate for each type of research: for basic researches, they should be assessed by the scientific quality compliant with international standards; for researches on technology use and development, the key standard should be the socio-economic efficiency when they are used in practice.

Improving regulations on the establishment and operation of consulting councils which identify, select and assess implementing results of S&T tasks and ensuring the independence and objectiveness of the councils. Establishing database on assessment experts, standards of members and councils’ structure suitable for each type of researches.

c) Quickly introducing S&T research results into practical production and daily life

S&T management agencies at all levels are responsible for establishing and ensuring the implementation of mechanisms for quickly introducing S&T research results into practice. Organizations and individuals who implement S&T tasks are responsible for fulfilling regulations on archive, security, popularization and transfer of S&T research results. Enterprises of all economic sectors are responsible for investing in researches and renovating technologies in order to improve the quality of goods and services and strengthen the competitiveness of enterprises. The State issues policies on encouraging and promoting enterprises of all economic sectors to renovate their technologies.

2. Renovating the management mechanism and operations of science and technology organizations

Renovating the management mechanism of S&T organizations in order to create favorable conditions for promoting at the maximum level the activeness and creativeness and improving the efficiency of organizations and individuals working in S&T field; establishing some State-owned S&T organizations to reach the advanced regional level, which are under key fields identified in the Science and Technology Development Strategy by 2010; strengthening links between research-training-production.

a) Implementing the self-control and self-responsible mechanism for State-owned S&T organizations which carry out basic researches, strategic and policy researches and researches of S&T key fields and other fields decided by the State

Being independent in terms of S&T activities: S&T organizations should be responsible for fulfilling tasks assigned by the State; at the same time independently carrying out other S&T activities as regulated by laws (association, cooperation, signing contracts on S&T researches and services, technology transfer ect...).

Being independent in terms of finance: The State ensures the operational budget to implement tasks assigned by the State with the method of allocating a fixed salary fund, operational funds and funds for implementing S&T activities. These organizations are allowed to be independent in using other income sources from S&T contracts with organizations and individuals of all economic sectors inside and outside the country.

Be independent in terms of human resource management: the delegation and decentralization of human resources should be applied to State-owned S&T organizations by following official and contracted regulations for S&T staff. The independent mechanism for human resource management is regulated specifically in below Part 4 "Renovating the management mechanism of science and technology human resources".

Be independent in terms of international cooperation: S&T organizations should be decentralized more in sending S&T staff to foreign countries, hiring foreign experts to carry out researches, training, consulting on S&T and taking management positions in S&T organizations under fields managed by the State.

The State assigns leaders of S&T organizations to be independent and responsible for the organization’s whole operations.

b) Shifting research organizations of technology use and development into the enterprise mechanism

Shifting research organizations of technology use and development, which have products linked with the market into one of the following forms: S&T enterprise; enterprise; S&T organization which are responsible for its expenditures by itself.

S&T enterprises have following rights and responsibilities:

Regarding functions and tasks:

S&T activities are carried out and S&T human resources are trained as regulated by Law on Science and Technology, Education Law and other related legal regulations.

The production and business of new S&T products and services are organized based on research and development results according to Enterprise Law, State-owned Enterprise Law.

Regarding the organization:

S&T enterprise is organized in the form of a Company with many types of proprietary (State-owned, collective, private) or in the form of a Parent company – Subsidiary company, whose structure includes:

S&T units have functions of researching and developing technologies, acquiring, adapting new technologies and transferring these technologies to production–business units inside or outside S&T enterprises. Patent and transfer values of research and development units are calculated as the charter capital when they establish production–business units or joint-ventures or associations with domestic and foreign organizations and individuals.

Production–business units are organized in the form of enterprises of all economic sectors, and work as regulated by current laws.

The personnel organization and management mechanism of S&T enterprises are defined appropriate with functions and tasks of this type of enterprises.

Regarding assets and financial management:

The State assigns rights of use and management of all assets possessed by S&T enterprises which are shifted from research organizations of technology use and development as regulated by current laws on assigning assets for State-owned enterprises.

S&T enterprises should take at least 2% of their turnovers to invest in S&T activities, since they have income and are entitled to incentives as regulated by laws. The State supports a part of the salary fund and operational funds within 3 years as of the time they are decided to shift; supports a part of fixed and working capital when production– business companies are established under the enterprises; has policies on supporting S&T managers and officials when they wait for jobs, are rotated, retrained or resign ect.

Regarding human resource management, cooperation and association:

S&T enterprises are independent in signing labor contracts with managers and officials according to Law Code, Law on Science and Technology, State-owned Enterprise Law, Enterprise Law and other related legal regulations.

S&T enterprises actively carry out international S&T, economic and commercial cooperation as regulated by laws.

Research organizations of technology use and development which shift into S&T enterprises or organizations are responsible for their expenditures by themselves:

Research organizations of technology use and developments shift into enterprises and operate complaint with State-owned Enterprise Law, Enterprise Law. Organizations shifting into enterprises are assigned with assets as for S&T enterprises and entitled to preferential taxes, fees, charges and other incentives for newly-established enterprises.

S&T organizations should be responsible for their expenditures by themselves as regulated by Law on Science and Technology. These shifting organizations are assigned with all assets, supported the salary fund and operational fund as of the date the decision is made. The proportion and time for supporting the salary fund and operational fund are based on assessment results of authorized S&T management agencies regarding the quality and efficiency of these shifting organizations.

The shift of research organizations of technology use and development into the S&T enterprises, enterprises, self-financed S&T organizations should be carried out step by step with piloting models and withdrawal of lessons learnt for replication.

c) Strengthening the establishment and development of science and high-technology enterprises

Science and high-technology enterprises are S&T enterprises working in high-technology fields, meeting requirements as published regularly by the State.

The State encourages S&T organizations, collectives and scientists to establish, form joint-ventures with enterprises to establish science and high-technology enterprises with tax and credit incentives, establish the venture investment fund and invest in infrastructure.

Science and high-technology enterprises are entitled to incentives applied to high-technology enterprises in high-technology zones as stipulated by laws.

d) Carrying out regular reviews in S&T organizations using the State budget

The State regulates on regular internal and external reviews for S&T organizations using the State budget according to criteria compliant with international standards in order to improve the efficiency of investment sources.

The type of S&T independent assessment organizations is studied to establish with functions of research methodologies and organization of implementing assessment of S&T activities and S&T organizations, serving for demands of increasing the quality, efficiency of S&T activities and ensuring the objectiveness in the assessment.

đ) Promoting functions and improving the efficiency of S&T researches in universities

The State increases investments in S&T researches for universities: investing in building S&T infrastructure, increasing research and development budget, especially applied-oriented basic researches.

Regulating norms of scientific researches, research results are provided for teaching staff of universities, depending on their titles.

The linking mechanism is established between universities and research and development organizations: establishing and implementing regulations on holding concurrent leadership and professional positions for research and development organizations and universities, encouraging researchers of research and development organizations to participate in teaching, and sharing laboratories and equipment for research and teaching.

Links are promoted between universities and production units and enterprises: universities implement the State S&T tasks and sign contracts on S&T, transferring research results to organizations of all domestic and foreign economic sectors as regulated by laws.

Mechanisms and policies are established to support technology universities to foster technologies and enterprises, especially S&T enterprises in order to soon establish small and medium enterprises which apply S&T research results to production and business.

3. Renovating mechanisms and policies on financial investment in science and technology activities

The financial mechanism and policies are renovated to increase non-State financial sources for S&T development; improve the efficiency of State investment in S&T; and create motivations for organizations and individuals working in S&T.

a) Diversifying investment capital for S&T

Enterprises are encouraged to invest in renovating technologies and products in order to increase the competitiveness:

The financial mechanism and policies continue to be improved to encourage enterprises’ investments in S&T activities as regulated in Decree No 119/1999/NĐ-CP issued by the Government.

Enterprises are encouraged to establish S&T Development Fund to carry out researches and use research results for renovating technologies and products; allowed to quickly amortize their assets, equipment, machineries; and granted loans with preferential interests from the national S&T Development Fund and S&T Development Fund of Ministries, provinces and cities under the Central government to carry out researches on technology use and renovation.

Encouraging the establishment of many types of S&T development fund:

The National S&T Development Fund is quickly put into operation; the establishment of S&T Development Fund of Ministries, provinces and cities under the Central government is implemented; domestic and foreign organizations and individuals are encouraged to establish S&T Development Funds, Venture Investment Fund in S&T field.

Strengthening the exploitation of capital sources from international cooperation for S&T development:

The State creates the legal environment for S&T organizations to exploit foreign capital from international cooperation by many different forms: bilateral and multi-lateral cooperation on research and training; encouraging foreign organizations and individuals to invest, establish S&T organizations in Vietnam in many forms (cooperation, association between Vietnamese and foreign parties; 100% foreign invested S&T organizations…).

Priorities are given to ODA funds to invest in S&T potential development, especially in the national key S&T fields such as key research and development organizations, key laboratories, and high-technology zones.

b) Renovating investment policies and mechanisms for allocating the State budget for S&T activities

The State budget is focused on investing in key fields identified in the S&T Development Strategy, fields of basic researches, strategic and policy researches, and public fields regulated by the State. Every economic sector, especially the enterprise sector is encouraged to increase investment in fields of research, development and technology renovation.

The State focuses their investment synchronizedly in infrastructure, equipment and training for S&T staff, and the establishment of some advanced and modern research and development organizations; at the same time apply special preferential schemes (lodging, working conditions, income, favorable exit and entry conditions…) to attract excellent domestic and foreign experts to work in these organizations.

Necessary budget is allocated for stages of forming, identifying S&T tasks; organizations and individuals are selected to implement themes and projects; results of S&T activities are regularly examined and reviewed; the checking and acceptance of research results are appraised and these results are supported to use in practice to ensure the quality and efficiency of S&T activities.

The Ministry of Science and Technology chairs and coordinates with the Ministry of Planning and Investment, Ministry of Finance and relevant agencies to agree on the development of State budget allocation mechanisms for S&T, and then submit to the Government for approval.

c) Improving mechanisms for using financial sources in order to create motivations for S&T activities

Inappropriate points in the financial system applied for administrative agencies with income in S&T field are adjusted in the implementation of Decree No 10/2002/NĐ-CP issued by the Government. Income levels of managers and officials in S&T organizations aren’t limited. The self-control and self-responsible mechanism is issued to apply in State-owned S&T organizations which have low income or no income.

The fixed budget scheme is applied to S&T themes and projects in some S&T fields on the basis of carefully appraising the content, research products and estimated budget for implementation. The payment and finalization of expenses of S&T themes projects should mainly based on results of assessing the quality; and inappropriate procedures for the payment and finalization of expenses occurred in the implementation of S&T tasks should be removed.

Regulations should be developed on using a budget amount to establish the Awarding Fund for S&T cause to reward properly organizations and individuals whose research results are widely used and bring in the high socio- economic efficiency.

The State spends a budget amount to support the registration of patents and useful methods of Vietnamese people and buy technological patents from developed countries.

Investments are increased in S&T activities for the socio-economic development in mountainous, isolated, remote areas and those in special difficult conditions.

4. Renovating the management mechanism of science and technology human resources

The management mechanism of S&T human resources is renovated in order to bring into full play creative potentials of S&T staff; create material and spiritual motivations, and apply compensation schemes according to contribution levels and other encouragement policies for S&T staff.

a) Increasing the independence in human resource management of S&T organizations

Contracted and official regulations are implemented according to the Ordinance which is amended and supplemented with some articles of the Ordinance on Senior Management and Officials in 2003 and Decree No 116/2003/NĐ-CP. Inappropriate articles are timely adjusted during the implementation of this Decree.

Rights and responsibilities of leaders of S&T organizations are strengthened in human resource management: rights of recruiting, training, assigning, appointing, dismissing, resigning, offering salary grades and compensation packages for managers and officials. Monitoring mechanisms are implemented for enforcing rights and responsibilities of leaders of S&T organizations.

Regulations are issued on human resource management for research organizations of S&T use and development, which shift into S&T enterprises, self-financed S&T organizations; and on insurance schemes when S&T staffs resign.

b) Establishing mechanisms and policies on creating motivations for S&T staff

Policies are issued on paying talented S&T staff with special treatment; using excellent S&T staff; encouraging and attracting Vietnamese overseas to participate in the country’s S&T development. Special salary grades are applied for senior managers who chair the implementation of especially important S&T tasks in fields of defense, security and socio-economic development. S&T staffs who have professional qualifications and capacities equivalent to foreign experts, in the same position in cooperation projects, are entitled to salary grades equivalent to average rates offered by international and foreign organizations for Vietnamese people.

Standards and regulations are issued on appointing S&T staffs with S&T positions and adjusting salary scales appropriate for these positions.

Standards and regulations are issued on regular performance appraisals for S&T staff. Early salary increase is applied to S&T staffs who successfully fulfill their assigned tasks and have special achievements in S&T research and use.

c) Strengthening training and retraining of S&T human resources

A proper budget is allocated to training and fostering of talented people, high-level S&T staff, skilled technicians for key economic branches and high-technology fields, meeting requirements of the industrialization and modernization and attracting foreign investment; S&T staffs are regularly re-trained and equipped with updated knowledge and skills. Training in training institutions in foreign countries with advanced S&T levels are pushed up for S&T staffs; mechanisms and policies on using efficiently S&T staff after being trained are applied.

Favorable conditions are created to promote the opening of international and regional universities and research institutes in Vietnam. Prestigious research foreign institutes and universities are attracted to associate or open a division or branch or organize programs on S&T human resource training in Vietnam. Economic sectors are encouraged to directly participate in the training of S&T human resources, especially the private sector and foreign-invested capital sector.

d) Attracting foreign experts to service the S&T development

Policies are issued on attracting excellent experts who are Vietnamese overseas and foreign experts to come to Vietnam, participate in training of researchers, lecturers, consultants and hold S&T management positions.

5. Developing the technology market

a) Linking renovation of mechanism and, socio-economic policies with promoting S&T advancements and using S&T achievements in production and life

Programs are developed on linking S&T with training and production and business to support enterprises in improving management capacities, modernizing and renovating technologies and improving the competitiveness and the international economic integration.

Feedbacks are taken from scientists on guidelines, policies, investment projects, socio-economic development programs. Integrated mechanisms are established S&T tasks with investment projects and socio-economic development programs.

State-owned enterprises are strongly reformed in directions of speeding up the equitization process without taking measures of fixing and renewing loans for enterprises. The equal competitive environment is created in order to push enterprises to really pay attention to the efficiency of production and business and review the efficiency when selecting technologies. Policies are issued on controlling monopoly, dissolving and going to bankrupt of enterprises and at the same time the active international economic integration is sped up to urge enterprises to use S&T achievements and renovate their products.

b) Improving the quality and commercialization of S&T products

An appropriate proportion is allocated from the State budget to support in the improvement of research products to be commercialized. Assessment mechanisms are established for the stage after checking for acceptance and for funds supported to improve and commercialize research products.

Organizations are established for consulting and monitoring the quality and prices of technologies before they are transferred or sold for industrial production.

c) Developing technology intermediary organizations

Organizations are developed to mediate technologies and consult on technology transfer; provide information of the technology market; promote the technology market; and organize equipment-technology markets.

Every economic sector is encouraged to participate in providing intermediary services of the technology market.

d) Improving and increasing the enforcement of laws on intellectual property and technology transfer

The legal system is improved to support the technology market. Existing legal and regulatory documents relating to intellectual property and technology transfer are reviewed, added, amended and improved. Two professional laws on intellectual property and technology transfer will be soon issued.

Mechanisms are clearly stipulated to promote the transfer of research results using the State budget by handing over the use right for organizations which carry out the research for an appropriate period of time to exploit and commercialize these results. Duration, obligations and benefits of organizations and individuals which are handed over the use right are clearly regulated, especially when research results are of significant socio-economic values. After that period, if the research results are not used in practice or commercialized, the State management agency of S&T is authorized to use as public goods or services.

Contributions of organizations and individuals working in S&T fields to enterprises, which are copyrights of research results or other intellectual property forms, are institutionalized.

S&T management agencies support Vietnamese organizations and individuals in registration procedures and fees of patents and useful solutions for S&T research results which are domestic and foreign-protected; consulting offices are established to support in registration and enforcement of intellectual property in S&T organizations which are capable of scientific research and technology development.

Laws on intellectual property are popularized and disseminated for organizations and individuals working in S&T field and for the people. Effective punishment frameworks are set up to prevent and seriously handle violations of intellectual property rights.

6. Improving the operational mechanism of State management organism in terms of science and technology

The administrative reform in the State management agencies of S&T are carried out by focusing on the State management tasks, non-productive tasks are separated from administrative agencies, monitoring and supervising functions are strengthened. Training is sped up, professional level and capacities of staffs who carry out the State management in S&T are increased.

The Government’s coordination is strengthened to create linkages of S&T activities with social and economic activities, security and defense. The clear delegation and decentralization of tasks, rights and responsibilities of S&T management among Ministries, ministerial agencies, agencies under the Government, the People’s Committee of provinces and cities under the Central government are carried out.

Functions and tasks of the State management agencies of S&T are clearly defined:

a) The Government: approves S&T Development Strategy and prioritized directions of S&T development for each period, identifies key S&T tasks of the State; issues legal and regulatory documents on S&T under the Government authority; and submits to the National Assembly for approval of the budget allocated to S&T annually.

b) The Ministry of Science and Technology: chairs and coordinates with Ministries, branches and localities to develop strategies, mechanisms and policies on promoting the S&T development to submit to the Government for approval; consolidates and provides information of tendencies and trends of S&T development in the world and in Vietnam to Ministries, branches and localities; balances and distributes the State budget allocated to S&T activities; manages key national S&T tasks and use research results in practice; organizes the assessment of the country’s S&T potentials and S&T levels; investigates, checks and monitors S&T activities.

c) The Ministry of Planning and Investment: instructs Ministries, ministerial agencies, agencies under the Central government, the People’s Committee of provinces and cities under the Central government to integrate S&T development plans to be a part of regular socio-economic development plans of Ministries, agencies and localities; forecasts and balances S&T investment sources in the socio-economic development plans, including ODA capital and non-State capital sources; balances the total investment from the State budget in capital construction for the S&T development; coordinates with the Ministry of Science and Technology to allocate fund to capital construction works in the S&T field.

d) The Ministry of Finance: is responsible for balancing the State budget for S&T in the general State budget estimation; ensures the adequate and timely allocation of the State budget invested in approved S&T activities; chairs or participates in the development of specific financial mechanisms for S&T activities.

đ) The Ministry of Education and Training: chairs and coordinates with the Ministry of Science and Technology to develop and submit to the Government to decide plans, mechanisms and policies on training and improving S&T human resources and strengthen research activities in universities.

e) The Ministry of Home Affairs, in coordination with the Ministry of Labor, Invalids and Social Affairs, and Ministry of Science and Technology develops and submits to the Government to issue mechanisms and policies relating to S&T human resources and the system of S&T organizations.

g) Ministries, ministerial agencies and agencies under the Central government: are responsible for the State management of S&T for assigned branches and fields; develop and organize the implementation of S&T tasks for their branch and field development.

h) The People’s Committee of provinces and cities under the Central government: is responsible for implementing the State management of S&T in localities; specifies and uses mechanisms, policies and general directions of the country’s S&T development in the specific context of each locality in order to strengthen research and use of S&T for the socio-economic development.

i) Ministers, heads of ministerial agencies, heads of agencies under the Government, Chairman of the People’s Committee of provinces and cities under the Central government are responsible for the efficiency of investment in and S&T activities under the delegated ad decentralized authority.

IV. ORGANIZATOIN AND IMPELEMENTAITON

1. The Ministry of Science and Technology chairs and coordinates with other Ministries, ministerial agencies, agencies under the Government, the People’s Committee of provinces and cities under the Central government to organize the implementation of the Proposal on the Reform of the S&T management mechanism, and regularly reports to the Prime Minister once a year.

2. From now on to the end of 2005, related Ministries and agencies are responsible for implementing following tasks:

a) The Ministry of Science and Technology chairs and coordinates with relevant Ministries, branches, localities and agencies to prepare:

The proposal on the technology market development (to be submitted to the Prime Minister by the end of 2004).

Decisions of the Prime Minister on issuing the Regulation on assessing S&T tasks and S&T organizations (to be submitted to the Prime Minister on Quarter 1 of 2005).

The Government Decree on renovating the S&T planning (to be submitted to the Government in Quarter II of 2005).

The proposal on shifting research organizations of technology use and development into the enterprise mechanism (to be submitted to the Prime Minister in Quarter II of 2005).

The proposal on developing technology intermediary organizations, technology-equipment market and technology transaction floor at local level and nationwide (to be submitted to the Prime Minister in Quarter III of 2005).

b) The Ministry of Home Affairs chairs and coordinates with the Ministry of Science and Technology to prepare:

The Government’s Decree on the self-control and self-responsible mechanism of public S&T organizations (to be submitted to the Government in Quarter IV of 2004).

The proposal on policies on awarding and treating with special attention talented S&T people (to be submitted to the Prime Minister in Quarter I of 2005).

The proposal on policies to attract excellent experts who are Vietnamese oversea and foreigners for the S&T development in Vietnam (to be submitted to the Prime Minister in Quarter II in 2005).

c) The Ministry of Finance chairs and coordinates with the Ministry of Science and Technology to prepare:

The joint circular on applying the fixed budget mechanism for S&T tasks using the State budget (Quarter II of 2005).

The proposal on establishing the Venture Investment Fund to support in fostering technology and science and high-technology enterprises (to be submitted to the Prime Minister in Quarter III of 2005).

d) The Ministry of Justice chairs and coordinates with the Ministry of Science and Technology and relevant Ministries and branches to:

Review legal and regulatory documents relating to S&T to recommend, add, amend and revoke appropriately with the content of the Proposal on the Reform of the S&T management mechanism (to be submitted to the Prime Minister in Quarter I of 2005).

đ) Ministries, ministerial agencies and agencies under the Government, the People’s Committee of provinces and cities under the Central government chair and coordinate with the Ministry of Science and Technology to:

1. Develop the Program on linking S&T with training, production and business to support enterprises to improve their management capacities, modernize and renovate their technology and increase their competitiveness and international economic integration (to be submitted to the Prime Minister in Quarter IV of 2004).

2. Classify and establish the list and plans with specific roadmaps to shift research organizations of technology use and development into the enterprise mechanism. The Ministry of Science and Technology consolidates and reports to the Prime Minister (to report to the Prime Minister in Quarter IV of 2004).

3. From 2006 to 2010: implement the enforcement of legal and regulatory documents and the above-mentioned Proposals; by 2007 organize the review to withdraw experience and recommend directions of renovating the S&T management mechanism in coming years; by 2010 summarizing the implementation of the Proposal on the Reform of the S&T management mechanism.

4. The budget for the implementation of the Proposal of the Reform of the S&T management mechanism is from the budget allocated to the S&T cause and other sources. Every year the Ministry of Science and Technology, Ministry of Finance and Ministry of Planning and Investment agree to balance expenses for the budget allocated to the S&T cause for the implementation of the Proposal./.