On the afternoon of July 4, 2024, the Ministry of Science and Technology’s Deputy Minister, Mr. Nguyen Hoang Giang, chaired the Ministry’s regular press conference for the second quarter of 2024.
During this quarter, the Ministry focused on developing and finalizing the draft Law on Amending and Supplementing a Number of Articles of the Law on Standards and Technical Regulations. They also proposed the construction of the Law on Science and Technology (amended), the Law on Atomic Energy (amended), and the Law on Amending and Supplementing a Number of Articles of the Law on Product and Goods Quality.
Along with this, the ministry completed and submitted to the Prime Minister a report proposing the construction of a Decree amending and supplementing a number of articles of the Decree No. 95/2014/ND-CP dated October 17, 2014, on investment and financial mechanisms for science and technology activities. They also submitted a report proposing the construction of a Government Decree stipulating a number of contents on innovation and creative startups…
Financial Mechanism is the Key to Enhancing the Effectiveness of the National Science and Technology Development Fund
Regarding the Ministry of Science and Technology’s proposal of two options for the National Science and Technology Development Fund in the report on the construction of the Law on Science and Technology (amended), Mr. Pham Dinh Nguyen, Director of the Fund, stated that the Fund is a science funding agency. It mainly focuses on funding basic and applied research, as well as urgent science and technology tasks with potential, to support the enhancement of national science and technology capacity.
In the first ten years of its operation (from 2008), the Fund applied a special mechanism; the fund mechanism was in line with international practices, reducing administrative procedures and time for scientists, while also being very rigorous in scientific evaluation and selection.
However, since 2017, with the emergence of new related regulations, the Fund’s mechanism has become less favorable than in the previous period, leading to increased administrative procedures and longer evaluation and selection times for funding applications from scientists, which is not conducive to scientific research, said Mr. Nguyen.
To address this issue, the Ministry of Science and Technology has proposed several solutions, including adjusting some provisions in the Law on Science and Technology in one of two directions: either as a non-business unit with some specific financial mechanisms or as a state financial fund outside the state budget but still receiving annual supplementary allocations from the state budget.
According to the Director of the National Science and Technology Development Fund, essentially, the Ministry of Science and Technology wants the funding for scientific research and technological development and the support for enhancing national capacity, which the Fund is currently implementing, to continue receiving annual supplementary allocations from the state budget. At the same time, they aim to resolve the issues of delays in processing and maintain the fund mechanisms from the first ten years.
As a result, the Fund can conduct rigorous funding evaluations and selections according to international practices while also ensuring short processing times and simple administrative procedures, creating favorable conditions for scientists and ensuring the timeliness of research issues…
The nature of scientific research is to seek and explore new things, so it also entails risks and the possibility of not achieving the expected results or meeting the initial plan, said Mr. Nguyen. To encourage scientists to undertake breakthrough and excellent research, there is a need for mechanisms that facilitate their work and evaluate their performance according to the characteristics of science and technology activities, he explained regarding the Ministry’s proposals on the Fund in the amendment of the Law on Science and Technology.
The representative of the Ministry of Science and Technology emphasized that the key issue hindering the full role of the Fund in the past was the related financial mechanism. In the later stage, when the Fund was implemented according to the estimate, similar to other science and technology tasks, its role was diminished.
Therefore, the Ministry believes that it is necessary to adjust the relevant regulations to allow the Fund to fulfill its proper role. The Ministry has instructed the relevant units to focus on amending the Law on Science and Technology, including the contents related to the National Science and Technology Development Fund.
Liberating Resources from the Enterprise Science and Technology Development Fund
Regarding the issue of addressing the obstacles of the Enterprise Science and Technology Development Fund in the process of amending the Law on Science and Technology, the representative of the Planning and Finance Department stated that according to the Law on Science and Technology of 2013, enterprises have the right to autonomy and self-responsibility in managing and using the Fund for the right purposes. They must also inform the local science and technology management agency where the enterprise is headquartered.
Currently, the Ministry of Science and Technology is coordinating with relevant ministries, sectors, and agencies, especially the Ministry of Finance, to amend Decree No. 95/2014/ND-CP on investment and financial mechanisms for science and technology activities.
According to the Ministry of Science and Technology, they plan to propose amendments to several points, including the regulation on the ratio of contributions to the enterprise science and technology development fund by state-owned enterprises. The amendment will allow enterprises to proactively determine the minimum contribution ratio but not exceed 10% of their annual taxable income to ensure equality in the contribution ratio among state-owned enterprises and other types of enterprises.
Looking ahead, the Ministry of Science and Technology intends to amend the Law on Science and Technology while maintaining the regulation that state-owned enterprises must contribute to the enterprise science and technology development fund. However, they will allow flexibility in deciding the contribution ratio, as indicated in the direction of amending Decree 95.
According to the Ministry of Science and Technology, the implementation of this contribution with state-owned enterprises in the past has not been difficult. The real challenge lies in the deployment and utilization of the fund. The Ministry has been coordinating with relevant ministries to liberate these resources and maximize the fund’s effectiveness in the coming time, specifically by amending the Law on Science and Technology.
Regarding the key tasks for the third quarter of 2024, the Ministry of Science and Technology will continue to coordinate with relevant ministries, sectors, and National Assembly agencies to finalize the draft Law on Amending and Supplementing a Number of Articles of the Law on Standards and Technical Regulations, ensuring the progress of the 8th session of the 15th National Assembly.
At the same time, they will complete and submit to the Government a report proposing the construction of the Law on Atomic Energy (amended) and a report on the construction of the Law on Science and Technology (amended) at the July 2024 legislative development meeting.
