JOINT CIRCULAR

GUIDING THE FINANCIAL MANAGEMENT OF THE PROGRAM TO SUPPORT INTELLECTUAL ASSET DEVELOPMENT DURING 2011-2015

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

Pursuant to the Prime Minister's Decision No. 2204/QD-TTg of December 6, 2010, approving the Program to support intellectual asset development during 2011-2015;

The Ministry of Finance and the Ministry of Science and Technology jointly guide the financial management of the Program to support intellectual asset development in the 2011-2015 as follows:

I. GENERAL PROVISIONS

Article 1. Subjects and scope of application

This Circular guides organizations and individuals in managing and using funds for performing activities and tasks of the Program to support intellectual asset development during 2011-2015 under the Prime Minister's Decision No. 2204/QD-TTg of December 6,2010 (below referred to as the Program).

Article 2. Funds for implementation of the Program

1. Funds for implementation of the Program come from the following sources:

- State budget allocations incorporated in budget expenditure estimates of the Ministry of Science and Technology and localities according to power and responsibility decentralization under the Law on the State Budget and guiding documents;

- Contributions of the Program's beneficiaries;

- Integrated funds from other programs and projects (if any);

- Funds raised from other lawful sources.

2. The process of estimation, allocation and assignment of budget expenditure estimates and the regime of financial settlement and finalization comply with the Law on the State Budget and current regulations.

3. The Ministry of Science and Technology and provincial-level People's Committees shall effectively manage and use state budget funds invested in projects under the Program which are integrated but do not overlap other programs and projects.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Intellectual assets means products created by humans in the process of creative labor, including literary, artistic or scientific works; computer software; inventions; industrial designs; marks; geographical indications; trade names; semi-conductor integrated circuit layout designs; new plant varieties, and other valuable intellectual products.

2. Exploitation of intellectual assets means the application, utilization and management of intellectual assets in reality to create benefits and advantages for their owners, persons involved in the application and utilization of such intellectual assets and for the society.

3. Exploitation of inventions unprotected in Vietnam means the search for, assessment, synthesis and selection of technologies and technical solutions susceptible of practical application and pertaining to inventions unprotected in Vietnam, in order to work out and implement plans on application of these technologies and technical solutions.

4. Exploitation of intellectual property information means the use of information on intellectual property objects in intellectual property databases, covering search for information, development of information packages in different technical fields to serve the research, development, establishment, protection, exploitation, management and promotion of intellectual property objects.

5. Agricultural fields are those enumerated at Point 1, Article 2 of the Regulation on elaboration, promulgation, dissemination and inspection of application of sector standards promulgated together with the Ministry of Agriculture and Rural Development's Decision No. 74/2005/QD-BNN of November 14, 2005, including: veterinary drugs; plant protection drugs; fertilizers; plant varieties; animal breeds; biological products for cultivation and husbandry; animal feed; farm produce; agricultural electromechanical engineering; agricultural land; planning, survey, engineering and construction in agriculture.

II. SPECIFIC PROVISIONS

Article 4. Expenditures of the Program

The state budget shall provide supports to cover expenses for general activities of the Program and expenses for its contents specified in Clause 2, Article 1 of the Prime Minister's Decision No. 2204/QD-TTg of December 6, 2010, approving the Program to support intellectual asset development during 2011-2015, through approved projects, which are specified in Clauses 1 thru 11 of this Article.

1. Expenses for general activities of the Program:

- Public information and communication about the Program, communication and guidance on intellectual property, application of measures to promote the domestic and overseas registration for protection of intellectual property rights;

- Conferences, seminars, preliminary and final reviews of the Program;

- Elaboration, compilation and printing of documents relating to the management and implementation of the Program;

- Responsibility remuneration for members of the Steering Committee, the Secretariat, the Chief and Deputy Chief(s) of the Office of the Program;

- State-level approval, inspection, assessment for takeover of performed tasks of the Program;

- Outbound and inbound visits (if any);

- Day-to-day activities of the Program Office;

- Investigation and survey for formulation and approval of important projects of the Program; appraisal of typical models formed during the implementation of projects under the Program for the purpose of multiplication and popularization of these models;

- Purchase and repair of office equipment of the Program Office;

- Hiring of consultants (if any) for new contents and tasks arising in the course of management and implementation of the Program;

- Other expenses directly related to general activities of the Program.

2. Expenses for communication, training and dissemination of knowledge about intellectual property:

- Communication on intellectual property in the mass media; printing of leaflets, publications and posters;

- Organization of workshops and training courses to raise professional qualifications and skills related to intellectual property at central and local levels;

- Compilation and distribution of technical documents, model documents and instructive course books on intellectual property; guidelines on methods of domestic and overseas registration of intellectual property; provision and guidance on exploitation of information sources of domestic and overseas intellectual property systems;

- Setting up and maintenance of hotlines and websites on intellectual property.

3. Expenses for establishment, registration, exploitation, protection and development of intellectual assets being geographical indications, certification marks and collective marks for special products and services of localities, covering: supports for evaluation of local special products and services to determine the necessity of protection; identification of rights holders; selection of forms of protection, compilation of dossiers and completion of procedures for establishing rights; management and use of protected objects in reality, protection and development of the value of intellectual property rights.

4. Expenses for application of foreign inventions unprotected in Vietnam to serve research, development, production and business activities:

- Survey and identification of demands of organizations, communities and localities for application and renewal of technologies and exploitation of inventions unprotected in Vietnam to serve research, development, production and business activities;

- Search for, evaluation, selection and identification of technologies and solutions suitable to exploitation and application demands;

- Elaboration and implementation of plans on application of technologies and solutions belonging to selected inventions unprotected in Vietnam.

5. Expenses for consultancy on the establishment and assistance for operations of intellectual asset development assistance organizations:

- Survey and study of and learning from foreign models of intellectual asset development assistance organizations;

- Research and building of operation models of intellectual asset development assistance organizations;

- Consultancy on establishment of intellectual asset development assistance organizations;

- Assistance for operations of intellectual
asset development assistance organizations: study, guidance and performance of intellectual property-related activities (apparatus organization; establishment, exploitation, protection and development of intellectual assets).

6. Expenses for establishment, exploitation, protection and development of domestic and overseas intellectual assets, including:

- Designing, registration for protection, exploitation and development of the value of marks and industrial designs (dissemination of knowledge about and requirements on designing, registration for protection, exploitation and development of the value of marks and industrial designs);

- Building and development as intellectual assets of outcomes of scientific and technological activities (encouragement of creative labor; introduction of intellectual property information in scientific and technological research and creation activities; establishment, exploitation and protection as intellectual assets of products of scientific and technological activities);

- Registration for protection, exploitation and development of the value of computer software and literary and artistic works (consultancy and guidance on registration for protection, exploitation and application of measures to fight unauthorized reproduction or use of computer software, literary-artistic and scientific works; assistance for advertising and introduction of computer software and literary-artistic and scientific works).

7. Expenses for elaboration and application of processes of management of outcomes and products of scientific researches with a view to raising the value of intellectual assets:

- Elaboration and application of measures and processes of management of products eligible for intellectual property rights protection;

- Application of new scientific and technological research outcomes to the management and raising of the value and competitiveness of products eligible for intellectual property rights protection;

8. Expenses for establishment of intellectual property rights, organization of intellectual property rights protection, prevention of infringements and illegal use of intellectual property objects:

- Elaboration and implementation of professional training and retraining programs and activities for enforcement of intellectual property rights for intellectual property rights enforcers;

- Elaboration and implementation of programs for and activities of coordination and information exchange for raising intellectual property rights enforcement capacity;

9. Expenses for international cooperation on the establishment, exploitation, management, protection and development of intellectual assets; elaboration and implementation of programs on and activities of cooperation with foreign organizations and individuals on training, information exchange, registration of establishment and enforcement of intellectual property rights for the purpose of raising capacity of and developing Vietnam's intellectual property system.

10. Expenses for the exploitation of scientific, technological and intellectual property information for research, development, production and business activities:

- Building and updating of scientific, technological and intellectual property databases and information products;

- Organization of training courses on the exploitation of and search for scientific, technological and intellectual property information sources;

- Provision of scientific, technological and intellectual property information at the request of organizations and individuals;

- Assistance for exploitation and utilization of scientific and technological information, especially information on inventions, in order to serve research and development to turn out new technologies and products.

11. Expenses for research, development and wide dissemination of models of promotion of intellectual asset transfer; study and guidance on the identification of methods of valuation of intellectual assets of businesses in the course of division, splitting up or equitization and to meet other needs for valuation of intellectual assets.

Article 5. Expense levels and state budget support levels

1. For expense items specified in Clauses 2 thru 11, Article 4 of this Circular, which are estimated in the form of scientific and technological projects under Joint Circular No. 44/2007/TTLT/BTC-BKHCN of May 7,2007, of the Ministry of Finance and the Ministry of Science and Technology, guiding the norms for estimation and assignment of estimated funds for state budget-funded scientific and technological projects, package funds shall be allocated under regulations on expenditures covered by funds of projects already agreed between heads of organizations in charge of projects and project managers stipulated in Joint Circular No. 93/2006/TTLT/BTC-BKHCN of October 4, 2006, of the Ministry of Finance and the Ministry of Science and Technology, guiding package funds for implementation of state budget-funded scientific and technological projects, and other current financial expenditure regimes, standards and norms promulgated by competent state agencies.

Expense items for general activities specified in Clause 1, Article 4 of this Circular shall be supported under current legal documents.

2. Depending on each expense item specified in Article 4 of this Circular, the state budget shall allocate the whole or part of the approved total fund of a centrally managed project, specifically as follows:

a/ The state budget allocates 100% of the fund for:

- Expenses for general activities of the Program;

- Expense items specified in Clauses 2, 3 and 4, Article 4 of this Circular;

- Activities in agriculture;

- Urgent tasks under the Program which need to be immediately performed to meet practical implementation requirements specified in Article 19 of the Ministry of Science and Technology's Circular No. 03/2011/TT-BKHCN of April 20,2011, guiding the selection and management of projects under the Program, and tasks which can be performed only by a professionally qualified and adequately equipped organization or individual and the specified selection procedures cannot be implemented. The performance of these tasks is necessary to turn out products and to achieve results which can be widely disseminated or propagated or serve as a basis for the performance of other activities of the Program.

b/ The state budget allocates between 50-70% of the total fund for the implementation of projects to perform the tasks specified in Clauses 5 thru 11, Article 4 of this Circular in non-agricultural sectors.

3. For projects authorized by the central government to local administrations for management, the central budget provides annual budgetary supports for local budgets on the principle that the support level depends on sectors in which these projects are implemented, project implementation units and percentage of this state budget-allocated support:

- The central budget provides supports accounting for no more than 90% of the total state budget-allocated fund for projects implemented in mountainous provinces; the remainder (of at least 10%) shall be covered by local budgets;

- The central budget provides supports accounting for no more than 70% of the total state budget-allocated fund for projects implemented in provinces and centrally run cities which receive additional allocations from the central budget; the remainder (of at least 30%) shall be covered by local budgets;

- The central budget provides supports accounting for no more than 30% of the total state budget-allocated fund for projects implemented in provinces and centrally run cities which remit into the central budget under 50% of their revenues; the remainder (of at least 70%) shall be covered by local budgets;

- The central budget provides supports equal up to 20% of the total state budget-allocated fund for projects implemented in provinces and centrally run cities which remit into the central budget more than 50% of their revenues; the remainder (of at least 80%) shall be covered by local budgets.

Article 6. Responsibility remuneration

Responsibility remuneration for members of the Steering Committee, the Secretariat, the Chief and Deputy Chief(s) of the Office of the Program is as follows:

1. The Steering Committee:

- The Head: VND 500,000/month;

- Members: VND 400,000/member/month.

2. The Secretariat:

- The Head: VND 400,000/month;

- Members: VND 350,000/member/month.

3. The Office of the Program:

- The Chief: VND 400,000/month;

- Deputy Chiefs: VND 350,000/person/month.

Local officials performing equivalent tasks enjoy remuneration levels equal to 70% of the above levels.

Article 7. Assignment of funding sources for implementation of the Program

1. The central budget shall:

- Allocate funds for performance of general activities of the Program at the central level; and approved funds of centrally managed projects.

- Provide support for provinces and centrally run cities in implementing projects authorized by the central government to local administrations for management at the percentages specified in Clause 3, Article 5 of this Circular.

2. Local budgets shall:

- Allocate funds for performance of general activities of the Program in localities;

- Allocate part of funds for implementation of projects authorized by the central government to local administrations for management at the percentages specified in Clause 3, Article 5 of this Circular.

3. Domestic funds raised from organizations and individuals benefiting from projects partially funded by the state budget. Specific levels of these funds shall be decided by project-approving agencies and clearly indicated in project implementation assignment contracts.

4. Contributions of domestic and overseas organizations and individuals:

- In case contributions of organizations and individuals are made under agreements on management and use conditions, the management and use of these contributions will comply with these agreements;

- In case contributions of organizations and individuals are unconditional, these contributions will be subtracted upon calculating the percentage (%) of the state budget supports to contributions of businesses benefiting from projects.

Article 8. Estimation of budget expenditures of the Program

Annual funds for the Program shall be estimated based on the operation plan of the Program and the list of approved projects under the Program.

1. For the central budget's non-business scientific and technological funds allocated for implementation of centrally managed projects, provision of supports for implementation of projects authorized by the central government to local administrations for management, organization of intellectual property training courses, public information and communication and general activities of the Program at the central level: Annually, at the time of estimation of state revenues and expenditures, the Ministry of Science and Technology shall make budget expenditure estimates and incorporate them in its budget expenditure estimates, then send them to the Ministry of Finance under the Law on the State Budget.

2. For local budgets' allocations for non-business scientific and technological activities: Local administrations shall make budget expenditure estimates for implementation of projects under the Program authorized by the central government and payment of expenses for general activities of the Program in their localities under the Law on the State Budget.

3. Other funds for implementation of the Program:

- Contributions of organizations and individuals participating in the implementation of the Program;

- Integrated funds of other programs and projects;

- Funds raised from other sources.

Estimation of other funds for implementation of the Program shall be conducted by project implementation units upon submitting projects to competent agencies for approval. Agencies competent to approve projects shall consider and incorporate estimates of other funds in estimates of state budget funds for implementation of the Program according to the decentralization of management of projects under the Program.

Article 9. Assignment and allocation of budget expenditure estimates

1. Assignment of budget expenditure estimates:

- Estimates of the central budget's funds for centrally managed projects, supports for projects authorized by the central government to local administrations for management, expenses for intellectual property training courses, public information and communication and general activities of the Program at the central level shall be assigned to the Ministry of Science and Technology;

- Estimates of local budgets' funds shall be incorporated in local budget estimates and assigned under the Law on the State Budget.

2. Allocation of budget expenditure estimates to units complies with the Law on the State Budget.

3. During the period of implementation of a project as approved by a competent authority, the assigned estimated fund (including the estimate balance and advance balance at the State Treasury office where the Program's standing agency conducts transactions and the State Treasury office or the commercial bank (in case the project implementation unit is a business) where such unit conducts transactions) for project implementation, if not used up in the year, may be carried forward to the subsequent year for further use.

Article 10. Provision of funds

1. For centrally managed projects:

a/ Receipt of funds and control of expenditures:

- The Ministry of Science and Technology shall assign expenditure estimates according to project progress, volume of performed work and contracts signed between the National Office of Intellectual Property and project implementation units;

- The National Office of Intellectual Property shall control the legality of payment documents of project implementation units and make settlement and finalization with the State Treasury office where the National Office of Intellectual Property conducts transactions under current regulations;

- Project implementation units shall open deposit accounts at the State Treasury offices where they conduct transactions or commercial banks (in case these units arc businesses) for receipt of project implementation funds. These units shall be accountable for their expenditure decisions according to regulations on use of funds of schemes or projects as agreed upon between their heads and directors of these schemes or projects under Joint Circular No.93/2006/BTC-BKHCN of October 4, 2006, guiding funds for implementation of state budget-funded scientific and technological schemes or projects, and current relevant regulations; and submit to inspection and control by the National Office of Intellectual Property of the use and finalization of project implementation funds.

b/ Advances:

- Based on assigned annual expenditure estimates and fund provision progress according to signed contracts, the standing agency of the Program shall advance 100% of first-phase funds for project implementation units which must not exceed 70% of total support funds from the central budget's scientific and technological non-business source.

- For funds advanced in subsequent phases, based on reports on and written records of inspection and evaluation of the implementation progress and volumes and use of funds, the standing agency of the Program shall only advance funds in subsequent phases for projects which have used at least 70% of funds advanced in previous phases. A dossier for fund advances in subsequent phases to be sent to the State Treasury comprises:

+ A written record of inspection of the implementation progress and evaluation of the volume of completed work;

+ A written certification by the National Office of Intellectual Property of funds used corresponding to completed work;

+ Bills of state budget advances.

c/ Advance settlement:

Upon settlement of advances, the National Office of Intellectual Property shall send dossiers for advance settlement to the State Budget office where it conducts transactions, such a dossier comprises:

- Its written certification of funds used corresponding to completed work;

- Its written request for advance settlement;

- Copies of lawful documents made in the course of project implementation and suitable to the volume of work performed by the agency in charge of the project.

2. Expenses for intellectual property training courses; public information; and general activities of the Program at the central level comply with the Law on the State Budget.

3. Estimates of the central budget's supports for implementation of projects authorized by the central government to local administrations for management comply with management authorization contracts between the National Office of Intellectual Property and local project management agencies.

4. For funds from local budgets:

a/ Expenses for general activities of the Program in localities comply with the Law on the State Budget.

b/ Expenses for projects authorized by the central government to local administrations for management comply with the Law on the State Budget and contracts signed between local project management agencies and project implementation units, and are paid according to the progress and volume of work performed.

5. Funds to be provided by the state budget in reality must suit the proportion of these funds to capital contributions of organizations and individuals benefiting from projects already approved by competent authorities.

6. The provision or advance provision of other funds and settlement of advanced amounts comply with current regulations on management of these funds.

Article 11. Accounting and finalization of funds for the Program

1. For funds for implementation of centrally managed projects, the central budget's supports for the implementation of projects authorized by the central government to local administrations for management, expenses for intellectual property training courses, public information and general activities of the Program at the central level: Annually, based on funds provided and works performed in the year, project implementation agencies shall report on the fund finalization to the National Office of Intellectual Property. Based on figures of settlement of advances for projects with the State Treasury, the National Office of Intellectual Property shall sum up and finalize funds for implementation of centrally managed projects, the central budget's supports for projects authorized by the central government to local administrations for management, and expenses for intellectual property training courses, public information and communication and general activities of the Program, in the budget chapter of the Ministry of Science and Technology and corresponding budget categories and items. The Ministry of Science and Technology shall finalize funds for implementation of centrally managed projects, the central budget's supports for projects authorized by the central government to local administrations for management, and expenses for other activities of the Program at the central level, sum up and send its annual finalization reports to the Ministry of Finance under current regulations.

2. Local budgets' funds for implementation of projects authorized by the central government to local administrations for management and general activities of the Program in localities shall be accounted into the budget chapter of provincial-level Science and Technology Departments and corresponding categories and items. Provincial-level Science and Technology Departments shall finalize funds from local budgets for project implementation and expenses for general activities of the Program in localities with competent agencies defined in the Law on the State Budget.

3. The accounting and finalization of other funds comply with current regulations on management of these funds.

Article 12. Inspection and handling of violations

Annually, the Ministry of Science and Technology and provincial-level People's Committees or Science and Technology Departments, if assigned, shall assume the prime responsibility for regularly or extraordinarily inspecting the implementation of centrally managed projects, and coordinate with related agencies and units in regularly or extraordinarily inspecting the implementation of projects authorized to local administrations for management.

For cases of failure to implement projects according to plans or use of funds for improper purposes or at variance with regulations, they shall stop the implementation of projects and issue decisions to recover improperly used funds for refund to the state budget.

In case contributions of organizations and individuals that benefit from projects are mobilized behind schedule or at variance with commitments in contracts, the state budget's supports shall be reduced correspondingly in proportion to contributed funds for project implementation.

Article 13. Handling of financial issues upon termination of contracts under the civil law

1. For completed contracts: For contracts which are completed and considered satisfactory after takeover test, project funds shall be liquidated under current regulations.

2. For unsatisfactory contracts: The following contracts shall be considered unsatisfactory:

- Completed contracts which are considered unsatisfactory after takeover test;

- Contracts of which the performance is stopped after competent state management agencies find, through inspection, that these contracts are not performed according to set requirements and objectives or when managing agencies request termination of projects.

Unsatisfactory contracts shall be handled under Article 14 of this Circular.

Article 14. Handling of unsatisfactory contracts

For unsatisfactory contracts: After checking the implementation of projects, the National Office of Intellectual Property (for centrally managed projects) shall report in writing to the Minister of Science and Technology; while provincial-level Science and Technology Departments (for projects authorized by the central government to local administrations for management) shall report in writing to chairpersons of provincial-level People's Committees, for consideration and decision under regulations on handling of uncompleted schemes and projects provided in Joint Circular No. 93/2006/TTLT/BTC-BKHCN of October 4,2006, guiding the provision of package funds for implementation of state budget-funded scientific and technological schemes and projects.

The recovery of state budget funds must be clearly stated in project implementation assignment contracts.

Article 15. Handling of assets of the Program

Assets invested with state budget funds for the Program are state assets. Units assigned by the State to procure, manage and use these assets shall strictly observe current regulations on procurement, management and use of state assets.

Within 30 days after the official evaluation and takeover test of a project or the issuance of a decision to stop the implementation of a project, the asset-using unit shall report to a competent state agency for decision on a plan on handling of assets, covering asset recovery, transfer, sale or transformation of ownership, specifically:

- The Ministry of Finance shall decide on handling plans at the request of the Ministry of Science and Technology, for assets invested or procured with the central budget's funds;

- Provincial-level People's Committees shall decide on handling plans at the request of provincial-level Finance Departments and Science and Technology Departments, for assets invested or procured with local budgets' funds (including also funds authorized by the central budget to local budgets).

Article 16. Responsibility of related ministries and sectors

The Ministries of Justice; Culture, Sports and Tourism; Agriculture and Rural Development; Education and Training; Industry and Trade; Health, and other related ministries and sectors shall coordinate with one another in performing their tasks assigned under Article 4 of the Prime Minister's Decision No. 2204/QD-TTg of December 6, 2010.

III. ORGANIZATION OF IMPLEMENTATION

Article 17. This Circular takes effect on September 18, 2011.

Article 18. Any difficulties or problems arising in the course of implementation should be reported to the Ministry of Finance and the Ministry of Science and Technology for coordinated settlement.-