More autonomy for sci-tech institutions, higher incomes for scientists

Published: 05/06/2009 05:00

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VietNamNet Bridge The government’s Decree 115 helps refresh scientific research institutions and raises incomes of scientists. Deputy Minister of Science and Technology Nguyen Quan talked about this.

Could you brief us on the results of three years implementing Decree 115, which gives autonomy to state-owned scientific and technological research institutions?

Scientists consider Decree 115 a breakthrough in science and technology. Yet, there are many difficulties and challenges for the implementation of this decree. Our economy and managers passed through a long subsidy period so they could not quickly adapt themselves to the renovation period.

In the past, as Vietnam was a very poor country, our scientific and technological organisations were not invested in properly. It was extremely difficult for them to take care of themselves when they moved from the subsidy to autonomy mechanism. Moreover, while they are undergoing the change, they have had to face the global financial crisis.

For these reasons, the Ministry of Science and Technology asked the government to prolong the subsidy mechanism to help sci-tech research institutions to have sufficient time to prepare for the change and to ensure successful changes.

How many sci-tech organisations have succeeded in changing their operating mechanism?

Around 45% of sci-tech institutions have successfully changed their organisation and operating mechanism. Some others are on the road of changing. The Centre for Standardisation and Measurement No. 3 in HCM City and the Thuy Phuong Poultry Research Centre in Hanoi are successful examples.

Many sci-tech organisations have changed their operating model under Decree 115, for instance the Mekong River Delta Rice Institute, but they still pay salaries to scientists under the government’s regulations. How will this matter be solved?

Decree 115 allows sci-tech institutions to pay unlimited salaries to its staff. The payment is defined in labour contracts and considered as pre-tax legal expenditures of the institutions.

These institutions’ managers are responsible for calculating and signing labour contracts with their staffs. Payment for salary is free from corporate income tax.

Centre No. 3 of the Ministry of Science and Technology pays salaries to its staff that are three times higher than the level stipulated in the government’s policy. This agency also pays annual bonuses to its staff. However, high-income earners have to pay income tax.

Decree 115 needs to be amended to adapt to the current situation. How will it be changed?

There are a few major amendments: the government will extend the time of preparation for the change of structure and mechanism of sci-tech institutions; the Finance Ministry and related agencies will compile regulations on salary and spending for sci-tech organisations; the government will support agricultural, forestry and fishery encouragement centres and sci-tech institutions serving the countryside; and finally, local authorities will properly use the stage budget for sci-tech development.

The government issued Decree 115/2005/ND-CP transferring state sci-tech organisations into self-financing institutions in September 2005. This was considered a way to quickly bring research projects into application.

The scientific circle, especially those directly involved in sci-tech research, considered this decree a revolution and a way to help them to exist in the market economy. However, it has not quite been like they expected because of barriers created by state management agencies.

Previously, sci-tech organisations only focused on research and experimental production on a small scale because they were not allowed to produce and do business. That’s why many research projects found it difficult to be applied into life.

However, since the government issued Decree 115, this problem has been gradually solved. Besides performing their major function – scientific research as in the past – sci-tech organisations are now allowed to operate like a business.

This is the biggest change for sci-tech organisations and it can help them to commercialise their research projects or to use their research projects as contributions to make joint ventures. Moreover, with self-funding and self-decision mechanisms, sci-tech organisations have conditions to improve the effectiveness of investment in sci-tech research, gradually socialise sci-tech activities and quickly turn sci-tech advances into reality. Decree 115 also permits sci-tech institutions to take initiative in cooperating with foreign partners.

With such open mechanisms, scientists consider Decree 115 a blessing for the development of sci-tech in Vietnam. However, in the nearly three years since the decree was issued, many new problems have emerged.

VietNamNet/VNE

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