Quản lý ngân sách nhà nước đầu tư cho các quỹ phát triển khoa học và công nghệ ở việt nam tt tiếng anh

MINISTRY OF PLANNING

MINISTRY OF EDUCATION

AND INVESTMENT

AND TRAINING

CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT

LE VAN DUC

MANAGEMENT OF STATE BUDGET INVESTING
IN SCIENCE AND TECHNOLOGY
DEVELOPMENT FUNDS IN VIETNAM
Major: Economic Management
Code: 9 31 01 10

SUMMARY OF DOCTORAL THESIS

Hanoi – 2019


The thesis is accomplished in: Central Institute for Economic
Management

Scientific supervisors: 1. A/Prof.Dr. Le Xuan Ba
2. Dr. Nguyen Ngoc Song

Reviewer 1: ………………………………………………
Reviewer 2 ………………………………………………

Reviewer 3: ………………………………………………
(Specify full names, academic titles)

The thesis will be defended at Thesis Evaluation Committee at
Institute level to be held in the Central Institute for Economic
Management at (time) ................................................................
Access to the thesis is available at:
- Library of Central Institute for Economic Management
- Vietnam National Library, Hanoi


1
INTRODUCTION
1. The urgency of the thesis
In Vietnam, the Science and Technology Development funds was
established under the Law on Science and Technology. Those funds
using state budget in Vietnam include National fund for Science and
Technology Development; science and technology development funds
of ministries, ministerial-level agencies, governmental agencies,
centrally-run provinces and cities level. In general, forms of sponsors
and investments from state budget for the operations of science and
technology funds are are carried out in accordance with the law on
organization and operation of non-state budget financial institutions.
These funds are established to sponsor and provide funds for basic and
applied research; sponsor and provide funds for urgent scientific and
technological tasks with great scientific and practical significance or
potential scientific and technological tasks; provide low-interest or noninterest loans for the application of scientific research and technological
development in production and life; provide loan security for some
specialized scientific and technological tasks; support young scientists to
participate in international conferences and seminars; support activities

aimed at raising national scientific and technological capacities.
However, implementation process has revealed some problems that
require futher improvement and supplement. Therefore, the research
titled “State budget management investing in Science and
Technology Development Funds in Vietnam” is of both theoretical
and practical significance amid our country’s current context.
2. Research objectives and significance of the thesis
2. 1. Research objectives


2
The thesis aims to provide scientific arguments for competence
state agencies to amend, supplement and complete the management of
state budget investments for science and technology development funds
in Vietnam by raising the quality and effectiveness of these funds to
promote research activities and contribute to social-economic
development. The thesis also serves as precious reference materials for
research institutes and universities for their research and training
activities.
2. 2. Research significance
- Theoretical significance: the thesis builds up and develops
theories on state budget management investing in science and
technology development funds and its application to Vietnam’s practical
conditions.
- Practical significance:the thesis helps to strengthen and
enhance the efficiency and effectiveness of state budget management
investing in science and technology development funds in Vietnam;
contributing to completing legal framework and administration
mechanism of science and technology in Vietnam.
3. Structure of the thesis

In addition to the Introduction, Conclusion, References and
Appendix, the thesis consists of 4 chapters as follows:
Chapter 1: Overview of research on state budget management
investing in science and technology development funds
Chapter 2: Theoretical basis and international experience of state
budget management investing in science and technology development
funds


3
Chapter 3: Current situation of state budget management
investing in science and technology development funds in Vietnam
Chapter 4: Solutions to complete state budget management
investing in science and technology development funds in Vietnam.
CHAPTER 1
OVERVIEW OF RESEARCH ON STATE BUDGET
ANAGEMENT INVESTING IN SCIENCE AND TECHNOLOGY
DEVELOPMENT FUNDS
1.1. Overview of published studies on state budget management
investing in science and technology development funds
Domestic and foreign research mostly focus on: Research on
science and technology development funds; research on policies for
science and technology development in general and policies for science
and technology development funds in particular; research on state
management of science and technology in general and state budget
management investing in science and technology development funds in
particular.
Domestic and foreign studies on science & technology and
finance for science and technology development have provided precious
information for improving the quality of state budget management

investing in science and technology development in general and science
and technology development funds in particular. There has not been
comprehensive and intensive research on state budget management
investing in science and technology development funds. Previous
studies have only looked into one specific aspect or content that the
author wishes to research on.
1.2. Orientations to deal with research questions


4
1.2.1. Research objectives and research questions
1.2.1.1. Research objectives
- Overall objectives: Creating scientific basis to propose solutions
to complete and improve the quality of state budget management
investing in science and technology development funds in Vietnam in
present context.
- Specific tasks:
+ Systematize, supplement and explain the theoretical basis on
state budget management investing in science and technology
development funds;
+ Evaluating the current situation of state budget management
investing in science and technology development funds in Vietnam,
identifying achievements, limitations and causes;
+ Proposing orientations and solutions to complete and improve
the quality of state budget management investing in science and
technology development funds in Vietnam.
1.2.1.2. Research questions
Questions 1: What does state budget management investing in
science and technology development funds refer to?
Questions 2: What problems and limitations are existing in the

state budget management investing in science and technology
development funds in Vietnam? What contents are included?
Questions 3: What should Vietnam do to complete the state
budget management investing in science and technology development
funds?
1.2.2. Subject and scope of the thesis
1.2.2.1. Research subject


5
The subject of the thesis is state budget management investing in
science and technology development funds in Vietnam.
1.2.2.2. Research scope
- In content: The thesis researches theories on state budget
investments for science and technology development funds. Among
these contents, the thesis focuses on the basic contents including: (1)
identifying orientations for the construction and development of science
and technology development funds and orientations for state budget
investments for science and technology development funds; (2) setting
up and issuing legal regulations and policies on the organization and
operations of science and technology development funds and state
budget investments for science and technology development funds; (3)
developing expenditure plan, spending schemes and approving annual
state budget investments and registered capital for science and
technology development funds; (4) supervising, controlling and auditing
capital disbursement from state budget for science and technology
development funds as approved by authorized agencies.
- In terms space:The thesis focuses its research on state budget
management investing in science and technology development funds in
Vietnam.

- In terms of time: The thesis researches, surveys and evaluates
the situation of state budget management investing in science and
technology development funds in Vietnam from 2011 to 2017 and
suggests solutions to complete the state budget management investing in
these funds from now to 2025.
1.2.3. Research approach, methods and hypotheses
1.2.3.1. Research approach


6
- General and comprehensive approach: researching and dealing
with the subject comprehensively and generally from theoretical to
practical perspective of state budget management investing in science
and technology development in general and science and technology
development funds in particular.
- Practical approach:approaching and dealing the issues related
to state budget management investing in science and technology
development funds in Vietnam in recent timea.
- Systematic approach: Researching state budget management
investing in science and technology development funds in the general
situation of mechanism and policies on science and technology
development as well as state budget management investing in public
services in Vietnam in the context of industrialization, modernization
and international integration as well as public financial reform.
- Moving, multi-sectoral approach based on fundamental
principles of public financial management: Solutions to improve the
quality of state budget management investing in science and technology
development funds in Vietnam are not only suggested on theoretical
basis but also take into account the mechanism to ensure the
implementation at present and upcoming time.

1.2.3.2. Research methods
- Methodology: The thesis is carried out by a combination of
methods including dialectical materialism and historical materialism.
The author looks into the research subject in a specific political –
cultural – economic context.
- Specific research methods: The thesis employs the following
methods:(i) Method of analysis and synthesis, method of logic and


7
history. (ii) Methods of generalization and specification. (iii) Method of
comparison: this method is used to compare the reality of state budget
management for science and technology development funds in some
developed countries in the world so as to draw lessons for Vietnam. (iv)
Methods of data collection. (v) Methods of data synthesis and analysis:
these methods include descriptive statistics, disaggregated, comparison,
forecast, expert, quantitative analysis.
To collect data from reality, the author uses the following
methods:
+ In-depth personal interviews: the author conducts in-depth
interviews with officials in charge of managing science and technology
development funds at province and city levels, the staff of National
Foundation for Science and Technology Development, who are directly
in charge of administrating science and technology development funds
in Vietnam at present.
+

Questionnaires:

the

author

collects

information

by

questionnaires from two main sources: (1) staffs of the national Science
and Technology Development fund and (2) staffs in charge of
management of science and technology development funds at ministry,
government office, province and city levels.
1.2.3.3. Research hypotheses
- Hypothesis 1:State budget management investing in science and
technology development funds in Vietnam has gradually reduced
obstacles and difficulties in financial mechanism for science and
technology development.
- Hypothesis 2:State budget management investing in science and
technology development funds in Vietnam is still facing certain


8
limitations and weaknesses: these are barriers to science and technology
development to meet the demand of rapid and sustainable national
development.
- Hypothesis 3: Science and technology development funds have
gradually affirmed their positions and roles in science and technology
development, they have particularly created changes in financial
mechanism to promote science and technology development. However,

to further exploit the roles of these funds, it is necessary to enhance the
quality of financial management, especially state budget investment
administration for the funds by removing barriers such as: state budget
spending on the funds are low; procedures are complicated; capital is
provided on fiscal year basis, etc.
CHAPTER 2
THEORETICAL BASIS AND INTERNATIONAL EXPERIENCE
OF STATE BUDGET MANAGEMENT INVESTING IN
SCIENCE AND TECHNOLOGY DEVELOPMENT FUNDS
2.1. Science and technology development funds
2.1.1. Concepts and features of science and technology
development funds
2.1.1.1. Concepts of science and technology development funds
Science and technology development funds are a centralized
monetary fund established by the state or private sources, operating
towards the aims of sponsoring, funding, lending and guaranteeing loans
to support and improve the science and technology competence of
researchers rather than making profits.
2.1.1.2. Features of science and technology development fund


9
Firstly, science and technology funds are a special financial
institution; different from other financial institutions, the science and
technology funds do not operate for profits but provide non-refundable
or refundable sponsors, low-interest or interest-free loans to
organizations or individuals to support their scientific and technological
activities. [27, p. 100]. Secondly, investments of the science and
technology funds are just to support organizations implementing
scientific and technological research projects, running pilot programs of

technological application or transfer in addition to their available
conditions. Thirdly, science and technology funds create a free, equal
and democratic environment in the innovative operations of scientific
community. Fourthly, these funds help to diversity sources of funds for
scientific and technological activities. Fifthly, science and technology
development funds have similar features to non-state budget financial
funds
2.1.2. Classification of science and technology development
funds
Science and technology development funds can be classified in
different ways, depending on each set of classification criteria.
Firstly, based on the entities to establish and manage the funds,
science and technology development funds can be classified into:
science and technology development funds at central level; science and
technology development funds at local level; science and technology
development funds of enterprises; science and technology development
funds of individuals and organizations. Secondly, based on the capital
forming the funds, science and technology development funds can be


10
classified into state-funded science and technology development fund
and private science and technology development fund.
2.1.3. Roles of science and technology development funds
Firstly, science and technology development funds create diverse
and active capital channels to help mobilize additional capital sources
from the society to support state budget in implementing science and
technology development goals. Secondly, science and technology
development funds help the State in overcoming the limitations of
traditional financial mechanisms for science and technology activities

and gradually shifting to a new mechanism suitable for market
economy.
2.1.4. State budget investments for science and technology
development funds
2.1.4.1. The concept of state budget investments for science and
technology development funds
State

budget

investments

for

science

and

technology

development funds are spending state budget on science and technology
development funds to implement scientific and technological tasks
towards socio-economic development goals.
2.1.4.2. Effectiveness of state budget investments for science and
technology development funds in market economy
The effectiveness of state budget investments for science and
technology development funds can be understood as the relationships
between outcomes gained by science and technology development funds
and the investments for the funds in a certain period of time.

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2.1.5. Theories related to investments in science and technology
development to promote socio-economic development
(i) Slow’s theory on the impacts of technical advancement on
economic growth. (ii) Romo’s theory on the impacts of specialized
intellectual accumulation and human resource capital accumulation on
economic growth. (iii) Scot’s theory on the impacts of capital
investments on technology development and economic growth. (iv)
Freeman’s theory on ‘participation parties’.
2.2. State budget management investing in science and
technology development funds
2.2.1. Concepts of subjects, participants, objects, tools and
contents of state budget investments for science and technology
development funds
2.2.1.1. Concept of state budget management investing in science
and technology development funds
State budget management investing in science and technology
development funds is the system of impacts of state administration
agencies from central to local levels on the provision of state budget for
the establishment, operations and development of these funds so as to
guarantee the financial resources for the funds to maintain their activities
and carry out scientific and technological tasks.
2.2.1.2. Subjects, participants, objects, tools and contents of state
budget investments for science and technology development funds
2.2.2. Criteria to evaluate the management of state budget
investments for science and technology development funds
(1) the adequacy and completeness of constituent elements to
state budget management investing in science and technology

12
development funds and the practice of these elements in reality; (2) the
effects of state budget management investing in science and technology
development funds; (3) the effectiveness of state budget management
investing in science and technology development funds.
2.2.3.Factors affecting state budget management investing in
science and technology development funds
Firstly, factors related to policies and mechanism. Secondly,
factors related to organizations/individuals doing scientific and
technological research. Thirdly, factors related to organization and
management of scientific research activities of the funds.
2.3. International experience of state budget investment
management and lessons for Vietnam
2.3.1. State budget management investing in science and
technology development funds in some countries in the world
The thesis only studies the state budget management investing in
science and technology development funds in the US, Argentina, Japan,
South Korea and Thailand.
2.3.2. Lessons drawn for Vietnam from international
experience
Firstly, science and technology development funds in the abovementioned countries all operate under autonomy. Secondly, science and
technology development funds in these countries all provide budgets
under long-term and middle-term plans. Thirdly, science and technology
development funds in developed countries operate under the
collaboration mechanism between public and private sectors. Fourthly,
science and technology development funds must be given specific


13

working principles different from other non-state budget financial
institutions.
CHAPTER 3
SITUATION OF STATE BUDGET MANAGEMENT
INVESTING IN SCIENCE AND TECHNOLOGY
DEVELOPMENT FUNDS IN VIETNAM
3.1. Overview of science and technology development funds in
Vietnam
3.1.1. Vietnam Foundation for Science and Technology
Development
Under the Regulations on Organization and Operations of
Vietnam Foundation for Science and Technology Development, the
Vietnam Foundation for Science and Technology Development is a nonprofit organization with the functions of sponsoring, lending, providing
loan security and funds for scientific and technological tasks to improve
the national science and technology capacities. The Foundation is an
administrative unit under Ministry of Science and Technology with its
own legal entity, seal and accounts in State Treasury and domestic
banks.
3.1.2. Science and technology development funds at ministry,
government office, province and city levels
These funds have legal entity, registered capital, seals and accounts
opened in State Treasury and legal commercial banks in Vietnam. The
funds are non-profit administrative units with the functions of receiving,
managing and using state budget and other capital sources of local and
foreign organizations and individuals. The funds work to sponsor,


14
provide funds, loans or loan security to improve the national science and
technology capacities.

3.2. Analyzing and evaluating the situation of state budget
management investing in science and technology development funds
in Vietnam at present
3.2.1. Policies and orientations of the Party and State on state
budget investments for science and technology development funds in
Vietnam
The government stated that “continue to reform the entire
mechanism of management and organization of science and technology
operations, especially administration, investment forms, financial
institution in order to liberalize innovative capacities, apply scientific –
technological advancements in reality.”
Annually, the National Assembly issues decrees on socioeconomic development, resolutions on state budget allocation, which
emphasize the development of science and technology towards
developing society and economy, promote national industrialization and
modernization.
Since 2003, the Government, Prime Minister have passed a total
of 74 decrees and decisions to specify and instruct the implementation
of issued laws and regulations in scientific and technological research.
To carry out their functions and assigned tasks, to complete legal
environment on science and technology to promote industrialization and
modernization
3.2.2. Organizational structures of state budget management
investing in science and technology development funds


15
3.2.2.1. Organizational structures of state budget management
investing in national Science and Technology Development fund in
Vietnam
Including: Board of Management, Executive Board, Control

Board and Science & Technology Committee.
3.2.2.2. Organizational structures of state budget management
investing in science and technology development funds at ministry,
government office, province and city levels
Including Board of Management, Executive Board, Control
Board.
3.2.3. Making estimate, detailed expenditures and approving
annual state budget funding and charter capital for science and
technology development funds in Vietnam
Firstly, making estimate, detailed expenditures and approving
annual state budget funding and charter capital for Vietnam Foundation
Science and Technology Development is made according to Decree No.
23/2014/NĐ-CP dated April 3, 2014 replaces the Working and
Operating Charter of Vietnam Foundation Science and Technology
Development. Secondly, for the science and technology development
funds of ministry, government office, province and city levels of
Vietnam:
Making estimate, detailed expenditures and approving annual
state budget funding and charter capital for science and technology
development funds in Vietnam is made according to Decision No.
37/2015/QĐ-TTg of the Prime Minister on September 8, 2015 and
Circular No. 03/2015/TT-BKHCN dated March 9, 2015 of the Ministry
of Science and Technology.


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3.2.4. Control and supervision of state budget management
investing in science and technology development funds in Vietnam
Annually, the funds have to audit their financial – accounting
system in accordance with “Regulations on financial, accounting selfcontrol in organizations using state budget” issued under Decision

No.67/2004/QĐ-BTC dated 13 August 2004 by Ministry of Finance.
They have to audit their system seriously and publish their financial
situation (including financial plans and financial statements) with
contents, forms and time as regulated in Decision No.192/2004/QĐ-TTg
by Prime Minister and Circular No.21/2005/TT-BTC dated 22/3/2005
by Ministry of Finance, then submit the reports to Ministry of Science
and Technology. In terms of finance, the funds are subject to financial
supervision of Ministry of Science and Technology, Ministry of Finance,
State Audit and are supposed to report to authorized agencies such as
Science, Technology and Environment Committee, Finance – Budget
Committee of National Assembly on request.
3.2.5. Evaluating the situation of state budget management in
science and technology development funds in Vietnam
3.2.4.1. About the adequacy and completeness of constituent
elements to state budget management investing in science and
technology development funds and the practice of these elements in
reality
Vietnam Foundation for Science and Technology Development
was established under Decree No.122/2003/NĐ-CP dated 22/02/2003
by the Government. On the 3rd April 2014, the Government issued
Decree No.23/2014/NĐ-CP on Working and Operation Principles of the
Foundation. The Foundation does not operate for profits but takes


17
responsiblities for sponsoring, funding, lending and guaranteeing loans
to scientific and technological tasks; supporting and improving the
national science and technology competence. Operational capital of the
Foundation comes from state budget and non-state budget sources. It
provides funds for some scientific and technological tasks at national

level administrated by Ministry of Science and Technology. In 2015, the
Foundation started to provide funds for national scientific and
technological tasks under Science Technology Market Development
Program 2020.
3.2.5.2. About the effects of state budget management investing in
science and technology development funds
Firstly, setting up state budget investment estimates for science
and technology development funds under Decrees No.122/2003/NĐ-CP
and 23/2014/NĐ-CP is a new practice which complies with international
science and technology management practice, matches with the typical
features of scientific research acts and provides timely capital for
scientific and technological tasks, especially the urgent one arising out
of the plans (these tasks are often assigned by the Party or State agencies
to deal with the unexpected issues happening in the society and
economy). This practice also creates favorable conditions for
administration agencies such as Ministry of Science and Technology or
the Foundation to actively evaluate scientific and technological tasks so
as to select the ones with best quality, suitable for criteria of each
program rather than wait for annual plans. Secondly, using state budgets
to sponsor science and technology research. (1) Sponsoring scientific
and technological tasks in Natural science and technology. (2)
Sponsoring scientific and technological tasks in socio science and


18
humanities. (3) Supporting activities to raise national science and
technology competence. (4) Sponsoring and supporting programs under
international cooperation agreements. (5) Supporting and promoting the
application of research and development outcomes. (6) Providing
financial assistance to enterprises under decisions by Prime Minister. (7)

Lending and providing loan security. (8) Providing funds via the
Foundation.Thirdly, settling sponsor funds for science and technology
research activities of the Foundation.
3.2.5.3. About the effectiveness of state budget management
investing in science and technology development funds
The establishment of science and technology development funds
(although they do not operate for profits) has brought about positive
impacts on social and economic life, especially in the field of science
and technology. Moreover, the establishment and operations of these
funds are a positive turning point in the shift from financial allocation to
science and technology to fund mechanism so as to increase the
autonomy of science and technology organizations.
The number of science and technology papers of research
projects in fundamental natural science funded by the Foundation
published in international prestigious scientific journals (in ISI system)
in the 2009 – 2015 increased by 25%. These research papers accounted
for 20 – 25% of the total number of Vietnam and 50% of the research
projects funded by state budget. Annually, the Foundation supports
1,200 – 1,500 scientists to do research, supports the development of
high-qualified human resources, assists outstanding research groups, etc.
Scientific and technological tasks that are sponsored and supported by
the Funds have made direct contributions to socio-economic


19
development of the country. The Foundation also sponsors unplanned
potential projects that deal with urgent problems in the society, supports
enterprises to invest in their science and technology research.
3.3. Evaluation of state budget management investing in
science and technology development funds in Vietnam

3.3.1. Achievements
Firstly, the operations of science and technology development
funds in Vietnam have become stable. Besides the Vietnam Foundation
for Science and Technology Development, many localities have
established their science and technology development funds. Secondly,
state budget investments for science and technology development funds
in Vietnam have been guaranteed and gradually increased to meet the
financial demand of their operations. Thirdly, the establishment and
operations of Vietnam Foundation for Science and Technology
Development as well as science and technology development funds at
local levels with flexible and appropriate working mechanism have
marked the introduction of a new model in financial management in
science and technology.
3.3.2. Limitations
Firstly, science and technology development funds in Vietnam
are operating in semi-autonomy mechanism. Secondly, in Vietnam at
present, supplementary capital for science and technology development
funds is provided on a fiscal annual basis, which causes numerous
difficulties and barriers to the fulfillment of long-term research tasks of
big-scale projects as well as the increase in the number of sponsored
projects in a year. Thirdly, state budget investments for science and
technology development funds in Vietnam remain low, not proportional


20
with practical demand; science and technology development funds at
local level are just newly established and therefore not highly effective.
3.3.3. Causes for limitations
Firstly, subjective causes: Firstly, the awareness of many leaders
of Party uits, organizations and enterprises is not sufficient and adequate

about the roles and positions of science and technology and the need of
science and technology to socio-economic development as well as
typical features of scientific and technological activities. Secondly,
providing money to some scientific and technological tasks via funds is
a quite new practice, many organizations do not have adequate plans;
this has caused lots of difficulties for the Foundation in implementing its
functions. Thirdly, management mechanism has been reformed but still
highly administrative. There are no effective policies to motivate science
and technology staff. Fourthly, the coordination between documents and
instructions for implementation in some ministries, sectors and localities
is not strict, especially in terms of investments for science and
technology development. Fifthly, The system of legal documents on
science and technology is troublesome, complicated and continuously
updated and amended, causing lots of difficulties to localities and
organizations. Sixthly, communicating and propagandizing new
documents in science and technology are not conducted regularly and
extensively to stakeholders, so many organizations and individuals have
not been well aware of the contents of the issued legal documents.
Secondly, objective causes: Firstly, state budget cannot meet the
demand for capital for science and technology development.
Secondly, the allocation of state budget for science and technology in
local levels is still spread out, not based on demand, performance


21
efficiency and not yet linked among localities in developing and
implementing inter-regional scientific and technological missions; not
closely follow the local socio-economic development strategy. Thirdly,
the rate and norm of financing and lending are inappropriate to the
research and implementation of technological innovation in science and

technology organizations and enterprises.
CHAPTER 4
SOLUTIONS TO COMPLETE STATE BUDGET
MANAGEMENT INVESTING IN SCIENCE AND
TECHNOLOGY DEVELOPMENT FUNDS IN VIETNAM
4.1. New context and issues for state budget management
investing in science and technology development funds in Vietnam
4.1.1. New context impacting on the development of science and
technology in Vietnam
4.1.1.1. International context: Firstly, the impacts of the fourth
industrial

revolution.

Secondly,

investments

on

research

and

development in the world.
4.1.1.2. Local context
Firstly, the impacts of the fourth industrial revolution on
Vietnam’s industrialization and modernization process. Secondly, the
level of science and technology development has improved in recent
years, although the rate is still slow and the gaps in science and

technology development between Vietnam and regional countries and
the world become wider. Thirdly, investments in science and technology
development remain low, thus cannot meet the development demand
and not proportional to the important positions and roles of science and
technology.


22
4.1.2. Issues to state budget management investing in science
and technology development funds in Vietnam
To complete and improve the quality of state budget management
investing in science and technology development funds in Vietnam in
the coming time, it is necessary to deal with the following problems:
Eliminating the administrative and dictation features in science and
technology management mechanism in Vietnam at present; Eliminating
limitations in financial mechanism for science and technology in
Vietnam at present; Removing obstacles to the completion of state
budget investment management mechanism in science and technology
development funds in Vietnam at present.
4.2. Orientations to complete state budget management
investing in science and technology development funds in Vietnam
at present
Firstly, establishing, managing and utilizing science and technology
development funds in compliance with gerenal policies and regulations
on state budget management. Secondly, establishing, managing and
utilizing science and technology development funds in accordance with
the conditions of economic development in each period, for each kind of
funds at each level of administration. Thirdly, establishing and utilizing
science and technology development funds effectively and feasibly.
4.3. Solutions to complete state budget management investing

in science and technology development funds in Vietnamat present
4.3.1. Solutions in state budget investments for science and
technology development funds
(1) Strengthening state budget investments for science and
technology development funds.


23
(2) Ensuring equality and balance in allocating state budget
investments for science and technology development funds
(3) Strengthening supervisions, controls and auditing over state
budget investments for science and technology development funds
(4) Renovating mechanism to provide state budget investments
for science and technology development funds
4.3.2. Solutions in completing the organization and operations
of science and technology development funds
4.3.2.1. Completing the organization and operations of the
Vietnam Foundation for Science and Technology Development
Firstly, about establishment sources. The sources to establish the
Foundation include funds provided initially and funds supplemented
annually. Secondly, about uses. Vietnam Foundation for Science and
Technology Development can sponsor national research works and
scientific tasks under the projects of which capital is non-refundable or
partly refundable. Sponsor activities of the Foundation include:
providing non-refundable aids; providing loans with preferential
interests and longer grace period than commercial credit; providing
interest incentives; sponsoring or co-sponsoring, entrusting and being
entrusted, etc.
4.4. Recommendations
4.4.1. For central government institutions

4.4.2. For local government institutions
CONCLUSION
Firstly, financial management is one of the crucial and decisive
factors to the success and failure of a country’s science and technology
development strategies. Secondly, the establishment and development of