DECREE

DETAILING AND GUIDING IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LAW ON HIGHER EDUCATION

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

Pursuant the June 14, 2005 Education Law and the November 25, 2009 Law Amending and Supplementing a Number of Articles of the Education Law;

Pursuant to the June 18, 2012 Law on Higher Education;

At the proposal of the Minister of Education and Training,

The Government promulgates the Decree detailing and guiding implementation of a number of articles of the Law on Higher Education.

Article 1. Scope of regulation and subjects of application

1. This Decree details and guides implementation of a number of articles of the Law on Higher Education regarding entities subject to university or college charters; regional universities; higher education programs and forms of training; assets of and policies for private and foreign-invested non-profit higher education institutions; and policies for lecturers.

2. This Decree applies to colleges, universities, academies, regional universities and national universities; scientific research institutes licensed for doctoral training; other education institutions within the national education system; and organizations and individuals participating in higher education activities.

Article 2. University charter, college charter

1. The Prime Minister shall promulgate the university charter which applies to all universities, including also member universities of regional or national universities and academies licensed for bachelor, master or doctoral training.

2. Minister of Education and Training shall promulgate the college charter which applies to all colleges.

Article 3. Regional universities

1. A regional university is a public higher education institution attached to the Ministry of Education and Training and having function to provide training in multiple disciplines at different levels of higher education, and conduct scientific research and technology transfer to meet local, regional and national socio-economic development needs.

2. The Minister of Education and Training shall appoint or dismiss the regional university board chairperson, director and deputy directors of a regional university.

The director of the regional university shall appoint or dismiss rectors and vice rectors of member higher education institutions, and heads of units attached to a regional university.

Article 4. Training programs and forms of training

1. College training programs are developed to be practice-oriented and applied to formal education and continuing education.

2. Bachelor training programs are developed to be research-and application-oriented and applied to formal education or continuing education.

3. Master training programs are developed to be research-or application-oriented and applied to formal education.

Research-oriented master training programs apply to full-time courses at higher education institutions.

Application-oriented master training programs apply to full-time or part-time courses at higher education institutions.

4. Doctoral training programs are developed to be research-oriented and applied to formal education for full-time training courses of at higher education institutions. Postgraduate students shall devote all the prescribed time period for study and research, including at least one consecutive year of full-time training at higher education institutions.

Article 5. Assets and asset value of private higher education institutions

1. Assets under indivisible common ownership by integration of a private higher education institution include:

a) Assets accumulated from the deductions at least 25% of the difference between revenues from and expenses for annual training and scientific research activities of the higher education institution;

b) The value of assets formed from profits accumulated during operation of the higher education institution;

c) The value of assets which are invested or allocated or of which the use rights are assigned by the State;

d) The value of assets financed or donated;

e) The value of assets transferred from people-founded higher education institutions (if any).

2. Assets under indivisible common ownership by integration may be used only for education activities, expansion of the scope and increase of the quality of training and scientific research activities, construction of physical foundations, procurement of equipment, training and retraining for lecturers, civil servants and education administrators, serve of learners’ study and daily-life activities, for charitable purposes, or implementation of social responsibility. Value of assets which are invested in, allocated to, or of which the use rights are assigned by the State to private higher education institutions must be properly used and managed in accordance with the Law on the State Budget.

3. Capital sources under indivisible common ownership by integration must be accounted in a clear and transparent manner in compliance with the accounting principles applicable to private higher education institutions and have financial statements publicly at annual Shareholders’ General Meetings.

4. The boards of directors of private higher education institutions shall elaborate plans and methods of using assets and capital sources under indivisible common ownership by integration stated in Clause 2 of this Article in accordance with prevailing regulations of the State and the organization and operation regulations of the institutions.

5. The principles and methods of accounting assets and capital sources under indivisible common ownership by integration of private higher education institutions shall comply with the Ministry of Finance’s regulations.

Article 6. Private or foreign-invested non­profit higher education institutions

1. A private higher education institution is regarded as a non-profit one when it fully meets the following conditions:

a) The institutional or individual owner of investment capital receive no yields or receive an yield not exceeding the government bond interest rate applied in the same period;

b) The difference between the institution’s revenues from and expenses for annual training and scientific research activities constitutes asset under indivisible common ownership by integration used to develop physical foundations and the contingent of lecturers and scientific researchers; train administrators; serve scientific research activities; and grant scholarships to students, or used for other purposes serving community interests;

c) The institution commits in writing with the Ministry of Education and Training and the provincial-level People’s Committee of the locality where it is headquartered that it operates for non-profit purposes. The contents of this commitment must be publicized according to Points a and b, Clause 1 of this Article.

2. A foreign-invested higher education institution is regarded as a non-profit one when it fully meets the following conditions:

a) The institution commits with the Ministry of Education and Training and the provincial-level People’s Committee of the locality where it is headquartered that it operates for non-profit purposes;

b) The difference between the institution’s revenues from and expenses for annual training and scientific research activities is not remitted abroad but used to expand investment or improve physical foundations; develop the contingent of lecturers and scientific researchers; train administrators; serve scientific research activities; or grant scholarships to students; or used for other purposes serving community interests.

3. Grounds for assessing the private or foreign-invested higher education institutions in the observance of the commitments on non-profit operations are their annual financial statements and periodical audit reports.

4. Private and foreign-invested higher education institutions that have committed to operate for non-profit purposes but fail to comply or properly comply with Clauses 1 and 2 of this Article shall be deprived the right to enjoy priority policies applicable to private and foreign-invested non-profit higher education institutions; and shall refund all financial supports received from the State and retrospectively pay taxes applied to private and foreign-invested higher education institutions which operate for profit purpose.

Article 7. Priority policies for private and foreign-invested non-profit higher education institutions

1. Priority policies for private and foreign-invested non-profit higher education institutions include:

a) Tax incentives, exemption from and reduction of enterprise income tax, import duty and export duty in accordance with tax laws;

b) Priority in land allocation or lease; land use levy exemption or reduction; land and water surface rent exemption or reduction in accordance with law;

c) Supports for training and scientific research activities and development of lecturing staff;

d) Sharing and exemption from or reduction of expenses for sharing common resources invested by the State for higher education as well as economic, cultural, scientific-technical and social welfare facilities at the central and local levels to serve training, scientific research and technology transfer activities;

e) Priority in receiving development investment and training and scientific research capacity increase projects on a competitive basis like public higher education institutions; eligibility for participating in bidding for state- ordered tasks in the fields of development investment and training and scientific research capacity increase like public higher education institutions;

f) Priority in the allocation of funds for training, scientific research and technology transfer tasks in the fields in which the institutions have advantages.

2. The Ministry of Education and Training shall assume the prime responsibility for, and coordinate with relevant ministries and sectors in, detailing and guiding the specific application of incentive policies to private and foreign-invested non-profit higher education institutions.

Article 8. Policies applicable to lecturers

1. The system of lecturer titles and their standards are used as basis for grading professional titles of, and implementing regimes and policies applicable to lecturers of higher education institutions. The Minister of Education and Training shall provide for standards of lecturer titles.

2. Wage scales and levels applicable to lecturers shall be specified with clear distinction between five titles: tutor, lecturer, principal lecturer, associate professor and professor as prescribed in the Law on Higher Education. The title of associate professor is ranked the 1st in the sub-grade of civil servants’ professional titles and entitled to the wage scale and levels similar to those applied to the rank of senior specialists. The title of professor is ranked the 1st in the sub-grade of civil servants’ professional titles and entitled to the wage scale and rank levels similar to those applied to the rank of senior experts.

3. Private and foreign-invested higher education institutions may apply regulations on wages, allowances and other policies applicable to lecturers in public higher education institutions to devise entitlements and policies applicable to their lecturers, which must not be lower than wages and allowances of lecturers of the same training degree and seniority in public higher education institutions.

Article 9. Extension of working duration for lecturers reaching the retirement age

1. A lecturer holding the title of associate professor or professor or a lecturer possessing a doctoral degree working in a higher education institution may prolong working duration upon he/she reaches the retirement age to teach and conduct scientific research if he/she fully meets the following conditions:

a) He/she is physically fit and voluntarily prolongs working duration;

b) The higher education institution needs and accepts him/her.

2. The extended working duration is 5 year at most for lecturers possessing a doctoral degree; 7 years at most for lecturers possessing the title of associate professor, or 10 years at most for lecturers possessing the title of professor.

During extended working duration, the above-said persons whose working duration is extended may request to stop working to enjoy the retirement benefits according to regulations.

3. Orders of and procedures for considering the extension of working duration:

a) The head of the higher education institution managing the lecturer shall identify the need and assess the talent and health of the lecturer who is expected to continue working and discusses with the lecturer. The lecturer specified in Clause 1 of this Article sends his/ her written opinion to his/her managing unit and the head of the higher education institution for consideration.

b) The head of the higher education institution shall issue a decision to extend the lecturer’s working duration according to his/her competence or requests a competent superior agency to do so.

c) The consideration of extension of the working duration of a lecturer who reaches the retirement age should be notified to the lecturer 3 months before the time he/she retires. The personal records of the lecturer whose working duration is to be extended and the agency’s or unit’s written request must be completed and sent to the agency competent to consideration and decision at least 02 months before the time he/she retires.

4. Policies applicable to lecturers during the extended working duration:

a) To be regarded as full-time lecturers of higher education institutions;

b) To enjoy salaries and other policies and entitlements as prescribed involving lecturers.

Article 10. Effect

This Decree takes effect on December 10, 2013.

Article 11. Responsibilities for implementation of the Decree

1. The Minister of Education and Training shall guide implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of agencies attached to the Government, chairpersons of People’s Committees of provinces and centrally run cities and relevant agencies shall implement this Decree.