Decree 60/2021/ND-CP financial autonomy mechanism applicable to public non-business units

DECREE

Providing the financial autonomy mechanism applicable to public non-business units

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the June 13, 2019 Law on Public Investment;

Pursuant to the June 20, 2012 Law on Price;

Pursuant to the June 21, 2017 Law on Management and Use of Public Assets;

Pursuant to the November 25, 2015 Law on Charges and Fees;

At the proposal of the Minister of Finance;

The Government promulgates the Decree providing the financial autonomy mechanism applicable to public non-business units.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation 

This Decree provides the financial autonomy mechanism applicable to public non-business units in the fields of education and training; vocational education; health-population; culture, sports and tourism; information and communications; science and technology; and economic activities, and other fields.

Article 2. Subjects of application

1. Public non-business units established by competent agencies of the State in accordance with law, having the legal person status and their own seals and bank accounts in accordance with law, and providing public services or serving state management (below referred to as public non-business units).

2. Public non-business units of the Ministry of National Defense, Ministry of Public Security, Vietnam Television, Voice of Vietnam, and Vietnam News Agency; and public non-business units attached to public non-business units shall implement this Decree and relevant regulations.

3. Public non-business units of political organizations or socio-political organizations may apply this Decree, the Party’s regulations, and relevant regulations.

4. Public non-business units established under agreements and commitments between the Government of Vietnam and Governments of other countries or international organizations shall implement financial mechanisms under commitments, treaties or exclusive decisions promulgated by the Prime Minister.

Article 3. Interpretation of terms

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

1. “Financial autonomy mechanism applicable to public non-business units” means regulations on autonomy and accountability in implementation of regulations on the list of public non-business activities; prices and charges, and roadmap for calculating prices, of public non-business services; classification of financial autonomy levels; autonomy in use of financial sources; autonomy in entry into joint ventures or associations; and management and use of public assets, and other relevant regulations.

2. “Public non-business services” means non-business services in the fields of education and training; vocational education; health-population; culture, sports and tourism; information and communications; science and technology; and economic activities, and other fields (including agriculture and rural development, natural resources and environment, transport, industry and trade, construction, justice, labor, invalids and social affairs, and other non-business activities).

3. “Public non-business services funded by the state budget” means basic and essential public non-business services and exclusive public non-business services of a number of sectors and fields on the lists issued by competent authorities which are wholly or partly financed by the State.

4. “Public non-business services not funded by the state budget” means public non-business services provided through mobilization of social resources; prices of public non-business services according to the market mechanism shall be set by public non-business units themselves or by the State in accordance with the law on price or relevant specialized laws, ensuring payment of all expenses for service providers with reasonable earnings; the State shall not provide support in payment of expenses.

Article 4. Public non-business services funded by the state budget

1. The state budget shall shift from providing support for public non-business units to providing support directly for the poor and policy beneficiaries that use basic and essential public non-business services; from providing support under the mechanism of average allocation to the mechanism whereby the State places orders and assigns tasks for provision of public non-business services based on output quality or organizes bidding for provision of public non-business services.

The allocation of state budget funds for provision of public non-business services funded by the state budget must comply with the current law on the state budget regarding budget management decentralization in conformity with the state budget’s fund-balancing capacity and roadmap for fully accounting expenses that constitute service prices according to regulations of competent agencies.

2. List of public non-business services funded by the state budget

a/ Basic and essential public services as provided by specialized laws and the law on the state budget, including early childhood education and general education services; preventive medicine, grassroots-level healthcare, and hospitals in difficulty-hit, border and island areas; examination and treatment of leprosy, tuberculosis and mental illnesses; basic scientific research; traditional folk cultures and arts, and training of national sports athletes and coaches; care for people with meritorious services to the country and provision of social protection and services on the list of public non-business services funded by the state budget in the fields specified in Appendix I to this Decree.

b/ Ministries, ministerial-level agencies and government-attached agencies (below referred to as ministries and central agencies); and People’s Committees of provinces and centrally run cities (below referred to as provincial-level People’s Committees) shall continue applying the competent authority-issued list of public non-business services funded by the state budget if such list complies with Point a of this Clause; and, at the same time, review it to make appropriate revisions.

3. Competence to revise or issue the detailed list of public non-business services funded by the state budget

In pursuance to specialized laws and this Decree, ministries, central agencies and provincial-level People’s Committees shall implement the following provisions:

a/ Ministries and central agencies shall assume the prime responsibility for, and coordinate with the Ministry of Finance and related agencies in, proposing the Prime Minister to decide on revision or issuance of the list of public non-business services funded with the state budget which fall under their management;

b/ Specialized agencies of provincial-level People’s Committees shall report to provincial-level People’s Committees for the latter to propose provincial-level People’s Councils to revise or issue the list of public non-business services funded by the state budget according to delegation of powers which fall under localities’ management and suit their budget capacity, then send it to the Ministry of Finance and related line ministries for supervision during implementation.

Article 5. Prices and charges of public non-business services funded by the state budget

1. Prices of public non-business services funded by the state budget shall be determined in accordance with the law on price, techno-economic norms and expense norms issued by competent agencies, and roadmap for calculating prices of public non-business services funded by the state budget as specified in Clause 3 of this Article, specifically as follows:

a/ Salary expense in prices of public non-business services shall be calculated on the basis of basic salary levels, salary coefficients based on salary ranks, salary grades and positions of salary earners, salary-based contributions and salary-based allowances according to regulations applicable to public non-business units, or calculated on the basis of salary levels according to working positions, titles and positions of salary earners and salary-based contributions according to the State’s regulations; and labor norms issued by ministries, central agencies or provincial-level People’s Committees according to their competence.

b/ Fixed asset depreciation in accordance with the law on management and use of public assets and roadmap for inclusion of depreciation costs in prices of public non-business services shall be specified by competent authorities.

2. In case competent agencies have not yet issued techno-economic norms or expense norms, prices of public non-business services funded by the state budget shall be determined in accordance with the law on price or based on the average level of reasonable and valid expenses actually paid in 3 preceding years.

3. Roadmap for calculating prices of public non-business services funded by the state budget

a/ By the end of 2021, to basically complete the roadmap for calculation of prices of public non-business services (fully inclusive of salary expenses, direct costs, expenses for management work and fixed asset depreciation, and other expenses in accordance with the law on price). In case it is required to build another roadmap due to external obstacles, ministries, central agencies and provincial-level People’s Committees shall, after obtaining appraisal opinions of the Ministry of Finance, submit such to the Prime Minister for consideration and decision.

Particularly for prices of medical examination and treatment services at public health establishments; and prices of education and training and vocational education services at public education and training institutions and vocational education institutions: If it is impossible to follow the roadmap specified at Point a of this Clause, the Ministry of Health, Ministry of Education and Training and Ministry of Labor, Invalids and Social Affairs shall, after obtaining appraisal opinions of the Ministry of Finance, report such to the Prime Minister for subsequent submission to a competent authority for consideration and decision.

b/ For public non-business services provided under orders placed by the State at prices fully inclusive of expenses, such prices shall continue to apply.

4. Price-setting methods and agencies competent to set prices of public non-business services funded by the state budget must comply with the law on price.

In pursuance to the law on price and based on the roadmap for calculating prices of public non-business services specified in Clauses 1, 2 and 3 of this Article, and based on the state budget’s fund-balancing capacity, market price levels and socio-economic conditions in each period, ministries, central agencies and provincial-level People’s Committees shall set specific prices of public non-business services according to their competence or propose competent authorities to do so.

Public non-business units shall decide on specific prices of different services, ensuring that they are within brackets and levels of prices of public non-business services set by competent state agencies. In case competent state agencies set specific prices of public non-business services, public non-business units shall collect charges at such prices.

5. Public non-business service charges

Public non-business services on the list of charged services must comply with the law on charges and fees. Public non-business units shall collect charges at rates set by competent state agencies.

Article 6. Public non-business services not funded by the state budget

1. Public non-business services not funded by the state budget include:

a/ Services not on the list of public non-business services funded by the state budget specified in Article 4 of this Decree;

b/ Services provided by public non-business units from production and business or joint-venture/association activities exclusively in their fields of operation in order to meet the society’s needs in accordance with relevant regulations.

2. Public non-business units may enjoy autonomy in using their assets and resources to provide public non-business services not funded by the state budget exclusively in their fields of operation as assigned by competent authorities on the following principles:

a/ Strictly complying with law;

b/ Deciding on prices of services, ensuring payment of all expenses with reasonable earnings; applying specific prices or price brackets set by competent agencies, for services on the list of goods and services subject to price setting by the State.

3. Public non-business units may enjoy autonomy in deciding on expenses for provision of public non-business services, ensuring their reasonability and validity, and shall include such in internal spending regulations. They shall organize accounting work in accordance with the law on accounting; keep accounting books, use and manage documents, and organize separate accounting and monitoring in order to ensure adequate and accurate recording of turnover amounts and allocation of expenses for different activities; register, declare and fully pay tax amounts and other amounts treated as state budget revenues (if any) in accordance with law; fully and periodically implement internal audit regulations; and promptly send financial statements to superior management agencies and related agencies in accordance with law. Heads of public non-business units shall take responsibility for efficiency of the management and use of public assets and land assigned by the State to them for management and use as well as financial sources at the units in accordance with law.

4. In case of a negative difference between revenues from and expenses for public non-business services not funded by the state budget, public non-business units shall make calculations so as to offset such difference by their lawful funding sources. No state budget funds shall be allocated for such difference.

 Article 7. Management and use of public investment funds

1. Public non-business units shall manage and use public investment funds in accordance with the law on public investment and relevant laws.

2. The competence to appraise, approve and assign medium-term and annual public investment plans to public non-business units must comply with the law public investment and relevant laws.

Article 8. Management and use of public assets

1. Public non-business units shall manage and use public assets and apply standards and norms on use of public assets in accordance with the law on management and use of public assets.

2. Public non-business units shall make fixed asset depreciation and calculate amortization thereof in accordance with the law on management and use of public assets. Fixed asset depreciation amounts shall be added to the units’ funds for development of non-business activities.

For fixed assets invested or procured from loans or raised funds, fixed asset depreciation amounts shall be used for debt payment; the remainder after the debt payment shall be added to public non-business units’ funds for development of non-business activities. In case such amounts are not enough for debt payment, public non-business units may use their funds for development of non-business activities for debt payment.

Assets formed from funds for development of non-business activities and lawful financial sources of public non-business units constitute assets and capital of the State.

3. Heads of public non-business units shall, in pursuance to the law on management and use of public assets and this Decree’s provisions on financial management, issue regulations on management and use of public assets under their management.

Article 9. Classification of financial autonomy levels of public non-business units

1. A public non-business unit that can cover its regular  expenses and investment expenses (below referred to as group-1 unit) is a unit satisfying either of the following conditions:

a/ It has a level of self-coverage of regular  expenses determined according to Article 10 of this Decree equal to or higher than 100%; and a level of self-coverage of investment expenses equal to or higher than the setting-aside level for fixed asset depreciation and amortization.

The unit’s level of self-coverage of investment expenses shall be determined on the basis of:

- The amount expected to be set aside for the unit’s fund for development of non-business activities in the planning year or the set-aside average amount of 5 preceding years;

- The collected charge amount permitted to be retained for payment of regular expenses that are not assigned to the unit under the financial autonomy mechanism according to regulations.

b/ It provides public non-business services not funded by the state budget at service prices determined according to the market mechanism and fully inclusive of fixed asset depreciation and earnings for payment of investment expenses.

2. A public non-business unit that can cover its regular  expenses (below referred to as group-2 unit) is a unit satisfying either of the following conditions:

a/ It has a level of self-coverage of regular expenses determined according to Article 10 of this Decree equal to or higher than 100%, and has not yet self-covered investment expenses with its fund for development of non-business activities, collected charge amounts permitted to be retained for payment of expenses in accordance with the law on charges and gees, and other lawful financial sources in accordance with law;

b/ It provides public non-business services on the list of public non-business services funded by the state budget that are subject to the State’s order placement or bidding for provision of public non-business services at prices fully inclusive of expenses (not inclusive of fixed asset depreciation).

3. A public non-business unit that can self-cover part of its regular expenses (below referred to as group-3 unit) is a unit having a level of self-coverage of regular  expenses determined according to Article 10 of this Decree of between 10% and under 100%, which are subject to the State’s order placement or bidding for provision of public non-business services at prices not fully inclusive of expenses. Group-3 units shall be classified into:

a/ Units that can cover between 70% and under 100% of their regular expenses;

b/ Units that can cover between 30% and under 70% of their regular expenses;

c/ Units that can cover between 10% and under 30% of their regular expenses.

4. Public non-business units with regular expenses covered by the State (below referred to as group-4 units) include:

a/ Public non-business units having a level of self-coverage of regular expenses determined according to Article 10 of under 10%;

b/ Public non-business units having no revenues from non-business activities.

Article 10. Determination of levels of self-coverage of regular expenses

1. Formula for determination

Of which:

a/ A includes the revenues specified at Points a and b, Clause 1, and Clauses 2, 3 and 5, Article 11; Points a and b, Clause 1, and Clauses 2, 3 and 5, Article 15; and Clause 2, Article 19, of this Decree. Specifically, for the revenues specified at Point b, Clause 2, Article 11; Point b, Clause 2, Article 15; and in Clause 2, Article 19, to determine only the positive difference of revenues and expenses (after fulfilling the obligations toward the State); for the revenues specified in Clause 3, Article 11 and Clause 3, Article 15, excluding expenses for irregular tasks.

b/ B includes the expenses specified in Articles 12, 16 and 20 of this Decree, excluding those for provision of public non-business services not funded by the state budget specified in Article 6 of this Decree.

2. The values of A and B specified in Clause 1 of this Article shall be calculated on the basis of revenue-expense estimates in the year in which a public non-business unit formulates its financial autonomy plan for submission to a competent authority.

Chapter II

SPECIFIC PROVISIONS ON THE FINANCIAL AUTONOMY MECHANISM APPLICABLE TO PUBLIC NON-BUSINESS UNITS

Section 1

FINANCIAL AUTONOMY FOR GROUP-1 UNITS AND GROUP-2 UNITS

Article 11. Financial sources of units

1. Sources from the state budget

a/ Funds for provision of public non-business services on the list of public non-business services funded by the state budget, including also state budget funds used for placement of orders or bidding for provision of public non-business services according to regulations;

b/ Funds for payment of regular expenses for performance of scientific and technological tasks as selected or directly assigned by competent agencies in accordance with the law on science and technology;

c/ Funds for payment of regular expenses for performance of tasks assigned by the State (if any), including funds for implementation of national target programs; counterpart funds for implementation of foreign-funded projects under decisions of competent authorities; funds for performance of tasks assigned by competent agencies; funds allocated by competent state agencies to public non-business units for provision of public non-business services funded by the state budget in case no techno-economic norms and unit prices are available for placement of orders;

d/ Development investment funds of capital construction investment projects approved by competent authorities in accordance with the law on public investment (if any). Particularly for group-1 units, the State shall consider allocating funds for ongoing capital construction investment projects under decisions of competent authorities or for new capital construction investment projects under medium-term public investment plans approved by competent authorities. Public non-business units shall manage and use development investment funds according to Article 7 of this Decree.

2. Revenues from non-business activities

a/ Revenues from provision of public non-business services;

b/ Revenues from production and business activities; entry into joint ventures or associations with organizations and individuals in accordance with law under joint-venture or association schemes approved by competent agencies as suitable to the functions and tasks of public non-business units;

c/ Revenues from lease of public assets: Units shall comply with the law on management and use of public assets and have schemes on lease of public assets approved by competent agencies.

3. Collected charge amounts permitted to be retained at public non-business units for making payments in accordance with the law on charges and fees.

4. Loans; aid and donations as specified by law.

5. Other revenue sources (if any) as specified by law.

Article 12. Regular expenses assigned to units under the financial autonomy mechanism

Public non-business units may take the initiative in using financial sources assigned to them under the financial autonomy mechanism as specified at Point a, Clause 1, Clauses 2 and 3 (revenues permitted to be retained at units for payment of regular expenses for charge collection), and Clause 5, Article 11 of this Decree for regular expenses. Some expense items are specified as follows:

1. Expenses for payment of salaries and salary-based contributions

a/ Pending the Government’s promulgation of salary regime under Resolution No. 27-NQ/TW of May 21, 2018, of the seventh plenum of the XII^th Party Central Committee, on reform of salary policies for cadres, civil servants, public employees, armed forces and workers of enterprises (below referred to as Resolution No. 27-NQ/TW), units shall pay salaries based on salary ranks and grades, and positions of salary payees, and salary-based contributions and allowances as specified by the State for public non-business units; and pay remuneration amounts under job-based contracts (if any). When the State adjusts salary policies, units shall cover additional salary amounts with their revenue sources; no state budget funds shall be allocated to cover such amounts.

b/ From the effective date of the Government-promulgated salary regime under Resolution No. 27-NQ/TW:

- For group-1 units: Based on their financial status, they may implement the salary autonomy mechanism based on their operation results like enterprises (grade-I single-member limited liability companies with 100% of charter capital held by the State); decide on levels of salary to be paid to public employees and workers; and pay remuneration amounts under job-based contracts (if any).

- For group-2 units: Based on their financial status, they may implement the salary autonomy mechanism based on their operation results like enterprises (grade-II single-member limited liability companies with 100% of charter capital held by the State); decide on levels of salary to be paid to public employees and workers; and pay remuneration amounts under job-based contracts (if any).

Group-1 and group-2 units shall determine their planned salary funds and to-be-paid salary funds and distribute salaries under the guidance of the Ministry of Labor, Invalids and Social Affairs; and have their salary plans approved by competent agencies, which shall serve as a basis for formulating annual planned salary funds to pay salaries to public employees and workers, ensuring the harmony of interests of employees and the units’ funds for development of non-business activities. In case a unit’s positive revenue-expense difference is smaller than that stated in the approved financial autonomy plan, the unit shall reduce its to-be-paid salary fund at a rate corresponding to the difference, ensuring that salaries to be paid to public employees and works are not lower than those specified by the State for public non-business units.

Based on their to-be-paid salary funds, public non-business units may set aside contingency funds for addition to the subsequent year’s salary funds. The annual percentage of setting aside contingency funds shall be decided by units themselves but must not exceed 17% of their to-be-paid salary funds. The setting aside of a unit’s salary contingency fund must ensure that after the fund is set aside, the unit has a positive revenue-expense difference. If such difference is not positive, the unit may not set aside its contingency fund at the above 17% percentage. In case in the preceding year, the unit had set aside the salary contingency fund but after 6 months from the end of the fiscal year, it has not used or not used up the fund, the unit shall exclude the used amount from the contingency fund.

When the State adjusts salary policies, public non-business units shall cover additional salary amounts with their own revenue sources; no state budget funds shall be allocated for payment of such additional amounts. The payment of salaries to employees in units shall be based on quantity, quality and efficiency of their task performance in accordance with law and the units’ internal spending regulations.

2. Expenses for hiring experts, scientists and persons with special talents to perform tasks of agencies, organizations or units. Based on practical requirements, actual market rental rates and their financial capacity, units may decide on specific expenses for their assigned tasks and shall include such expenses in their internal spending regulations.

3. Expenses for professional activities and management work

a/ For expenses for which techno-economic norms and spending regimes have been issued by competent state agencies, and based on practical requirements and actual market prices for professional activities and management work in localities, and their financial capacity, units may decide on expenses according to their internal spending regulations and shall take responsibility for the quality of services under the State’s regulations;

b/ For expenses not yet regulated by competent state agencies, based on practical conditions, units shall formulate expense norms as suitable to their financial sources and include such norms in their internal spending regulations. Heads of public non-business units shall take responsibility for their decisions.

4. Expenses for charge collection jobs and services in accordance with the law on charges and fees; and expenses for performance of service activities.

5. Setting aside of provisions under regulations applicable to enterprises, unless specialized laws require the setting aside of special funds for offsetting risks (if any).

6. Expenses for payment of loan interests (if any) in accordance with law.

7. Other expenses (if any) as specified by law.

Article 13. Regular expenses not assigned to units under the financial autonomy mechanism and expenses for performance of scientific and technological tasks

1. Regular expenses not assigned to units under the financial autonomy mechanism include:

a/ Expenses for performance of the State-assigned tasks specified at Point c, Clause 1, Article 11 of this Decree in accordance with the law on the state budget and regulations applicable to different funding sources;

b/ Expenses for asset procurement and overhaul to serve charge collection activities, which come from revenues permitted to be retained at units (amounts permitted to be retained for procurement, and overhaul of assets, machinery and equipment serving charge collection activities);

c/ Expenses from loans, aid and donations in accordance with law.

2. Expenses for performance of scientific and technological tasks: In case competent agencies select or assign scientific and technological tasks to public non-business units, these units shall manage and use funds according to regulations on financial autonomy for performance of scientific and technological tasks funded by the state budget.

3. Public non-business units shall strictly implement the State’s regulations on overseas work-trip allowances, reception of foreign guests, and organization of international conferences in Vietnam.

Article 14. Distribution of financial results in a year

1. At the end of a fiscal year, after fully accounting regular revenues and expenses assigned under the financial autonomy mechanism, depreciating fixed assets, and paying taxes and amounts payable to the state budget under regulations, a public non-business unit may use the positive difference (if any) between regular revenues and expenses assigned under the financial autonomy mechanism as follows:

a/ Setting aside the fund for development of non-business activities: at least 25%;

b/ Setting aside the fund for income addition in cases in which the unit pays salaries under Point a, Clause 1, Article 12 of this Decree: Group-1 units may decide by themselves on the percentage for setting aside the fund (which is not controlled); group-2 units shall set aside the fund at a rate no greater than twice the salary rank-, grade- and position-based salary fund and salary-based contributions and allowances specified by the State. In case the unit pays salaries under Point b, Clause 1, Article 12 of this Decree, no fund for income addition shall be set aside; 

c/ Setting aside the reward fund and welfare fund: The total amount to be set aside for these two funds must not exceed 3 months’ payable salary and remuneration amount in the year;

d/ Setting aside other funds in accordance with specialized laws;

dd/ The positive difference (if any) between revenues and expenses after above funds are set aside shall be added to the fund for development of non-business activities. 

2. Use of funds

a/ The fund for development of non-business activities shall be used for construction, renovation, upgrading and repair of physical foundations, procurement of working equipment and means; development of capacity for non-business activities; payment of expenses for application of scientific, technical and technological advances; training for improvement of professional qualifications and skills of employees; purchase of copyrighted works and programs; making of contributions to joint ventures or associations with domestic and foreign organizations and individuals in organizing public non-business service activities according to assigned functions and tasks of units, and other expenses (if any);

b/ The fund for income addition shall be used for additional payment of incomes to employees in the year and as a provision for additional payment of incomes to employees in the following year in case of reduction of income sources. Additional payment of incomes to employees of units shall be made based on the quantity, quality and efficiency of performed jobs;

c/ The reward fund shall be used to pay year-end, periodical and extraordinary bonuses to collectives and individuals inside and outside units for their job performance efficiency and contributions to units. Bonus levels shall be decided by heads of public non-business units and stated in internal spending regulations of units;

d/ The welfare fund shall be used for construction and repair of welfare works of units; as a partial contribution to construction of common welfare works in the sectors or works for shared use with other units under contracts; payment of expenses for collective welfare activities of employees of units; payment of allowances for employees encountering unexpected difficulties, including also retirees, or persons resigning from work for loss of working capacity or due to difficult circumstances; payment of additional allowances for employees laid off due to state payroll streamlining; and payment of part of social relief and charity activities;     

dd/ Other funds shall be used in accordance with specialized laws.

3. The use of the fund for development of non-business activities for investment, procurement, or making of contributions to joint ventures or associations must comply with the laws on public investment; management and use of public assets; and bidding, and other relevant laws.

4. Specific levels of the funds to be set aside as specified in Clause 1 of this Article and procedures for use thereof shall be decided by heads of public non-business units according to internal spending regulations and relevant regulations and publicized in such units.

Section 2

FINANCIAL AUTONOMY FOR GROUP-3 UNITS

Article 15. Financial sources of units

1. Sources from the state budget

a/ Funds allocated for provision of public non-business services on the list of public non-business services funded by the state budget, including also state budget funds for placement of orders or bidding for provision of public non-business services under regulations; 

b/ Funds for regular expenses for performance of scientific and technological tasks selected or directly assigned by competent agencies in accordance with the law on science and technology;

c/ Support funds for regular expenses after units have used revenues from non-business activities and collected charge amounts permitted to be retained for performance of their tasks or provision of public non-business services on the list of public non-business services funded by the state budget but have not yet covered regular expenses;

d/ Funds for regular expenses for performance of tasks assigned by the State (if any), including funds for implementation of national target programs; counterpart funds for implementation of foreign-invested projects under decisions of competent authorities; funds for performance of tasks assigned by competent agencies; funds allocated by competent state agencies to public non-business units to perform the task of providing public non-business services funded by the state budget in case no techno-economic norms and unit prices are available for placement of orders; funds for state payroll streamlining; and funds for training and further training of cadres and public employees under approved training schemes; 

dd/ Development investment funds of capital construction investment projects approved by competent authorities in accordance with the law on public investment.

2. Revenues from non-business activities

a/ Revenues from provision of public non-business services;

b/ Revenues from production and business activities; and activities of joint ventures or associations with organizations and individuals in accordance with law under schemes on entry into joint ventures or associations approved by competent agencies as suitable to the functions and tasks of public non-business units;

c/ Revenues from lease of public assets: Public non-business units shall properly comply with the law on management and use of public assets and have their schemes on lease of public assets approved by competent agencies.

3. Collected charge amounts permitted to be retained at public non-business units to cover their expenses in accordance with the law on charges and fees.

4. Loans borrowed by units; aid and donations for units in accordance with law.

5. Other revenues as specified by law (if any).

Article 16. Regular expenses assigned to units under the financial autonomy mechanism

Based on their assigned tasks and financial capacity specified at Points a and c, Clause 1, Clauses 2 and 3 (amounts permitted to be retained to cover regular expenses for charge collection), and Clause 5, Article 15 of this Decree, public non-business units may enjoy autonomy in deciding on:

1. Expenses for payment of salaries and salary-based contributions

a/ Pending the Government’s promulgation of the salary regime under Resolution No. 27-NQ/TW, public non-business units shall apply the salary regime based on basic salary levels, salary coefficients according to salary ranks and grades, positions, salary-based contributions and allowances of salary payees specified by the State for public non-business units; and pay remuneration under job-based contracts (if any).

As from the effective date of the salary regime promulgated by the Government under Resolution No. 27-NQ/TW, public non-business units shall apply the salary regime based on working positions, titles, positions and salary-based contributions of salary payees under the State’s regulations applicable to public non-business units; and pay remuneration under job-based contracts (if any).

b/ Funding sources for salary reform

When the State adjusts salary policies, public non-business units shall continue to use at least 40% of collected charge amounts permitted to be retained under regulations (or 35%, for public non-business units in the fields of health-population, after subtracting expenses already included in service charge rates), and save 10% of regular expenses from annually added state budget allocations and assigned state budget estimates in order to ensure funding sources for salary policy reform. State budget funds shall be additionally allocated only after a unit has used up the fund for income addition and amount set aside for salary reform.

c/ Payment of bonuses must comply with the salary regime provided by the Government under Resolution No. 27-NQ/TW.

2. Expenses for hiring of experts, scientists and persons with special talents to perform tasks of agencies, organizations and individuals. Based on practical requirements, actual market prices and their assigned state budget estimates and financial capacity, public non-business units may decide on specific expense levels commensurate to their assigned tasks, which shall be included in their internal spending regulations.

3. Expenses for professional activities and management work

a/ For public non-business units that can cover by themselves between 70% and under 100% of their regular expenses

For expenses for which expense norms have been issued by competent state agencies, based on practical requirements, actual market prices and their financial capacity, units may decide on expense levels higher than (in case they pay expenses with revenues from non-business activities but not with state budget funds) or equal to or lower than expense levels set out by competent state agencies and included in their internal spending regulations but shall ensure satisfaction of service quality standards under the State’s regulations.     

For expenses not yet regulated by competent state agencies, depending on practical situation, public non-business units shall set out expense levels suitable to their financial sources and include such levels in their internal spending regulations. Heads of public non-business units shall take responsibility for their decisions.

b/ For public non-business units that can cover by themselves between 30% and under 70% of their regular expenses; and public non-business units that can cover by themselves between 10% and under 30% of their regular expenses

Based on their assigned tasks and financial capacity, public non-business units may decide on expenses for professional activities and management work which must not exceed expense levels specified by competent state agencies.

For expenses not yet regulated by competent state agencies, depending on practical situation, public non-business units shall set out expense levels suitable to their financial sources and include such levels in their internal spending regulations. Heads of public non-business units shall take responsibility for their decisions.

4. Expenses for performance of charge collection jobs and services in accordance with the law on charges and fees; and expenses for service activities.

5. Expenses for setting aside provisions for production and business activities, joint venture or association activities, and other services required for enterprises, unless specialized laws require the setting aside of special funds to offset risks (if any).

6. Expenses for payment of loan interests (if any).

7. Other expenses as specified by law (if any).

Article 17. Regular expenses not assigned to units under the financial autonomy mechanism and expenses for performance of scientific and technological tasks

Based on financial sources specified at Points b and d, Clause 1, Clause 3 (amounts permitted to be retained to pay expenses for irregular tasks), and Clause 4, Article 15 of this Decree, public non-business units shall comply with Article 13 of this Decree.

Article 18. Distribution of financial results in a year

At the end of a fiscal year, after fully accounting regular revenues and expenses assigned under the financial autonomy mechanism, depreciating fixed assets, setting aside amounts for salary reform under Point b, Clause 1, Article 16 of this Decree, and paying taxes and amounts payable to the state budget under regulations, a public non-business unit may use the positive difference (if any) between regular revenues and expenses assigned under the financial autonomy mechanism in the following order:

1. Setting aside the fund for development of non-business activities

a/ For units that can cover by themselves between 70% and under 100% of their regular expenses: To set aside at least 20%;

b/ For units that can cover by themselves between 30% and under 70% of their regular expenses: To set aside at least 15%;

c/ For units that can cover by themselves between 10% and under 30% of their regular expenses: To set aside at least 10%.

2. Setting aside the fund for income addition and paying additional income amounts

a/ Pending the Government’s promulgation of the salary regime under Resolution No. 27-NQ/TW, units shall set aside the fund for income addition not exceeding twice the salary rank-, grade- and position-based salary fund, salary-based contributions and allowances specified by the State.

b/ As from the effective time of the salary regime promulgated by the Government under Resolution No. 27-NQ/TW:

- Units that can cover by themselves between 70% and under 100% of their regular expenses may pay an average additional income not exceeding 0.8 of the basic salary fund of their public employees and workers;

- Units that can cover by themselves between 30% and under 70% of their regular expenses may pay an average additional income not exceeding 0.5 of the basic salary fund of their public employees and workers;

- Units that can cover by themselves between 10% and under 30% of their regular expenses may pay an average additional income not exceeding 0.3 of the basic salary fund to their public employees and workers.

3. Setting aside the reward fund and welfare fund

The total amount to be set aside for these two funds is as follows:

a/ Units that can cover by themselves between 70% and under 100% of their regular expenses, such amount must not exceed 2.5 months’ salary and remuneration amounts payable in the year;

b/ Units that can cover by themselves between 30% and under 70% of their regular expenses, such amount must not exceed 2 months’ salary and remuneration amounts payable in the year;

c/ Units that can cover by themselves between 10% and under 30% of their regular expenses, such amount must not exceed 1.5 months’ salary and remuneration amounts payable in the year.

4. Setting aside other funds in accordance with law.

5. The positive difference (if any) between revenues and expenses after above funds are set aside shall be added to the fund for development of non-business activities. 

6. The use of funds must comply with Clauses 2 and 3, Article 14 of this Decree. Specific amounts to be set aside for and procedures for use of the funds specified in this Article shall be decided by heads of public non-business units according to internal spending regulations and relevant regulations and publicized in such units.

Section 3

FINANCIAL AUTONOMY FOR GROUP-4 UNITS

Article 19. Financial sources of units

1. Sources from the state budget, covering:

a/ Funds for regular expenses on the basis of tasks assigned by the State, number of employees, and norms of budget estimate allocation approved by competent authorities;

b/ Funds for regular expenses for performance of scientific and technological tasks selected or directly assigned by competent agencies in accordance with the law on science and technology;

c/ Funds for regular expenses for performance of tasks assigned by the State as specified at Point d, Clause 1, Article 15 of this Decree (if any);

d/ Development investment funds of capital construction investment projects approved by competent authorities in accordance with the law on public investment.

2. Revenues from non-business activities (if any) carried out in conformity with the functions and tasks of public non-business units.

3. Aid and donations in accordance with law.

4. Other revenues as specified by law (if any).

Article 20. Regular expenses assigned to units under the financial autonomy mechanism

Based on their assigned tasks and financial capacity specified at Point a, Clause 1, and Clauses 2 and 4, Article 19 of this Decree, public non-business units may enjoy autonomy in deciding on:

1. Expenses for payment of salaries and salary-based contributions

a/ Pending the Government’s promulgation of the salary regime under Resolution No. 27-NQ/TW, public non-business units shall apply the salary regime based on basic salary levels, salary coefficients according to salary ranks and grades, positions, salary-based contributions and allowances of salary payees specified by the State for public non-business units; and pay remuneration under job-based contracts (if any).

As from the effective date of the salary regime promulgated by the Government under Resolution No. 27-NQ/TW, public non-business units shall apply the salary regime based on working positions, titles, positions and salary-based contributions of salary payees under the State’s regulations applicable to public non-business units; and pay remuneration under job-based contracts (if any).

b/ Funding sources for salary reform

When the State adjusts salary policies, public non-business units shall save 10% of regular expenses from annually added state budget allocations and assigned state budget estimates in order to ensure funding sources for salary policy reform. State budget funds shall be additionally allocated only after a unit has used up the amount set aside for salary reform.

c/ Payment of bonuses must comply with the salary regime provided by the Government under Resolution No. 27-NQ/TW.

2. Expenses for hiring of experts, scientists and persons with special talents to perform tasks of agencies, organizations and individuals. Specific expense levels must comply with the State’s general regulations on salaries and remunerations.

3. Expenses for professional activities and management work

Based on their assigned tasks and financial capacity, units may decide on expense levels for their professional activities and management work which must not exceed expense levels set out by competent state agencies.     

4. Other expenses specified by law (if any).

Article 21. Regular expenses not assigned to units under the financial autonomy mechanism and expenses for performance of scientific and technological tasks

Based on their allocated financial sources specified at Points b and c, Clause 1, and Clause 3, Article 19 of this Decree, public non-business units shall comply with Article 13 of this Decree.

Article 22. Distribution of financial results in a year

1. At the end of a fiscal year, after fully accounting regular revenues and expenses assigned under the financial autonomy mechanism, depreciating fixed assets, setting aside amounts for salary reform under Point b, Clause 1, Article 20 of this Decree, and paying taxes and amounts payable to the state budget under regulations, a public non-business unit may account the positive difference (if any) between regular revenues and expenses assigned under the financial autonomy mechanism as its saved funding source for regular expenses.

2. Units may use their saved funding sources for regular expenses in the following order:

a/ Payment of additional income to their public employees and workers: Units shall pay an average additional income not exceeding 0.3 of the basic salary fund of their public employees and workers based on job performance efficiency and results of each person;

b/ Payment of bonuses and welfare amounts: Units shall pay periodical or extraordinary bonuses to collectives and individuals inside and outside their units based on the latter’s job performance results and contributions; payment of expenses for collective welfare activities of public employees and workers; payment of allowances for public employees and workers encountering unexpected difficulties, including also retirees and persons resigning from work for loss of working capacity; and payment of additional severance for workers laid off due to state payroll streamlining;

c/ When deeming that it is not likely to save funding sources in a stable manner, units may set aside the contingency fund for stabilization of income for their public employees and workers.

Saved funding amounts not yet used up by the end of a year may be carried forward to the following year for use.

3. Heads of public non-business units may decide on plans on use of saved funding sources as mentioned above under internal spending regulations and publicize such plans in their units.

Section 4

AUTONOMY IN FINANCIAL TRANSACTIONS AND ENTRY INTO JOINT VENTURES AND ASSOCIATIONS

Article 23. Opening of transaction accounts

1. Public non-business units may open their accounts at commercial banks for their revenues from non-business activities and business or service provision activities.

2. Group-3 units and group-4 units may open their accounts at commercial banks for revenues from provision of medical examination and treatment services, preventive health services and tuitions at rates specified by competent state agencies; and shall periodically remit such revenues into their deposit accounts opened at the State Treasury for management under regulations.

3. For fund amounts belonging to the state budget as specified in the Law on the State Budget, including state budget allocations, charges collected in accordance with the law on charges and fees and other state budget revenues (if any), units shall open accounts at the State Treasury for management. 

4. The funds set aside under this Decree may deposit money at commercial banks for management.

Article 24. Capital raising and loan borrowing

1. General principles

a/ When borrowing loans or raising capital for construction or procurement of assets, public non-business units shall work out plans on loan borrowing or capital raising and loan repayment; pay by themselves loan principals and interests; and take responsibility before law for efficiency of loan borrowing or capital raising and use efficiency of loans or raised capital;  

b/ Units may not put public assets as mortgage for loan borrowing as specified in Clause 5, Article 54 of the Law on Management and Use of Public Assets;

c/ Investment projects funded with loans or raised capital shall be implemented in accordance with law and publicized in public non-business units.

2. Group-1 units and group-2 units in the field of health-population may borrow loans from credit institutions for construction of physical foundations in accordance with the law on public investment; borrow concessional loans from the State or enjoy interest rate support for their investment projects funded with loans borrowed from credit institutions in accordance with law (if any). Procedures and competence for approval of loan borrowing plans must comply with the law on public investment.

3. Group-1 units, group-2 units and group-3 units providing services may borrow loans from credit institutions and raise capital from their public employees and workers to expand, renovate or repair existing physical foundations; and additionally purchase equipment and devices to help improve the quality and scale up their non-business activities, organize service provision suitable to their functions and tasks, and shall repay loans in accordance with law. The raising of capital from public employees and workers in units shall be included in contracts in accordance with the civil law.

4. Public non-business units shall submit to their superior management agencies for approval their plans on loan borrowing or capital raising and loan repayment. For units with management councils or school/university councils, plans on loan borrowing or capital raising and loan repayment shall be approved by such boards.

Article 25. Autonomy in entry into joint ventures or associations

1. Public non-business units may enjoy autonomy in and take accountability for entry into joint ventures or associations with organizations and individuals in order to provide services to meet needs of the society. The use of public assets for the purpose of entering into joint ventures or associations must satisfy the requirements specified in Clause 2, Article 55 of the Law on Management and Use of Public Assets and fall into the cases specified in Clause 1, Article 58 of the Law on Management and Use of Public Assets.

2. Public non-business units shall formulate and submit their schemes on entry into joint ventures or associations to ministers or heads of central agencies (for centrally managed units) for approval after obtaining opinions of the Ministry of Finance, or to chairpersons of provincial-level People’s Committees (for locally managed units) for approval after obtaining opinions of standing bodies of provincial-level People’s Councils. Such a scheme must clearly state the form of joint venture or association (with or without establishment of a new legal person); plan on assurance of financial and human resources for activities of the unit and the joint venture or association. Units with management councils or school/university councils shall report such schemes to their boards for approval before submitting them to competent authorities for approval.    

3. This Decree does not regulate the use of brands, licenses and copyright for entry into joint ventures or associations with establishment of new legal persons. In case of entering into joint ventures or associations with establishment of new legal persons, public non-business units shall comply with the laws on enterprises, management and use of public assets, investment, and intellectual property, and other relevant laws.

4. The division of results of joint venture or association activities must comply with agreements in joint venture or association contracts, specifically as follows:

a/ For joint ventures or associations with establishment of new legal persons: Public non-business units shall add all results of joint venture or association activities to their financial sources under schemes on entry into joint ventures or associations approved by competent authorities;

b/ For joint ventures or associations with establishment of new legal persons: Public non-business units may use proceeds from the division of results of joint venture or association activities, after paying loan interests and asset rentals as capital contribution (if any). The remaining divided income amounts of public non-business units shall be managed and used under schemes on entry into joint ventures or associations approved by competent authorities.

5. In case of using their brands, licenses and copyright for entry into joint ventures or associations and in other special cases, units shall comply with the law on management and use of public assets and law on intellectual property, and other relevant laws. When valuating brands used for capital contribution to joint ventures or associations according to valuation standards of Vietnam, a number of financial indicators of public non-business units used in the valuation shall be determined as follows: 

a/ Income of public non-business units shall be determined on the basis of revenue-expense difference before calculating loan interests and after paying taxes plus asset depreciation;

b/ Expenses for use of equity of public non-business units shall be determined according to interest rate of 10-year governmental bonds. If no 10-year governmental bonds are available, such expenses shall be determined according to interest rate of governmental bonds of the longest maturity by the time of valuation; 

c/ Value of contributed assets in the income-based approach shall be determined on the basis of their book value.

6. In case of loan borrowing or capital raising for entry into joint ventures or associations for investment in the form of public-private partnership, the law on investment in the form of public-private partnership shall apply.

Chapter III

FINANCIAL AUTONOMY FOR PUBLIC NON-BUSINESS UNITS IN THE FIELDS OF HEALTH-POPULATION, EDUCATION AND TRAINING, AND VOCATIONAL EDUCATION

Section 1

FINANCIAL AUTONOMY FOR PUBLIC NON-BUSINESS UNITS IN THE FIELDS OF HEALTH-POPULATION

Article 26. Autonomy in using financial resources

Autonomy in using financial resources of public non-business units in the fields of health-population must comply with Articles 12, 16 and 20 of this Decree and the following provisions:

1. A public non-business unit may hire medical technical service providers to satisfy its professional requirements in case it does not have enough equipment to provide services within the ambit of its assigned functions and tasks. The competence to decide on the hiring of a medical technical service provider is as follows:

a/ For group-1 units and group-2 units: The management council of a unit shall approve a service hiring scheme, clearly stating the list of to-be-hired services; volume; standards, quality requirements (if any) and prices of to-be-hired services; payment method; and responsibilities of the public non-business unit and service provider. In case a unit has not yet formed the management council, its head shall decide on the hiring of a medical technical service provider;

b/ For group-3 units and group-4 units: Units shall send requests for the hiring of medical technical service providers to ministers or heads of central agencies (for centrally managed units) or chairpersons of provincial-level People’s Committees (for locally managed units) for approval; such a request must clearly state the list of to-be-hired services, volume, standard, quality requirements (if any) and prices of to-be-hired services; payment method; and responsibilities of the public non-business unit and service provider;

c/ The hiring of service providers must comply with the bidding law. The hiring period shall be based on the demand of units but must not exceed the maximum depreciation period of to-be-hired assets in accordance with regulations on asset depreciation;

d/ Expenses for hiring medical technical service providers shall be accounted as reasonable expenses of units.

2. Expenses for surgery and medical operations

a/ For group-1 units and group-2 units: Heads of units shall base on revenue sources of units to decide on levels of expenses for surgery and medical operations, which may be higher than, equal to or lower than the State-set levels and shall be included in internal spending regulations of units.

b/ For group-3 units and group-4 units: Heads of units shall base on revenue sources from non-business activities of units to decide on levels of expenses for surgery and medical operations, which may be higher than, equal to or lower than the State-set levels and shall be included in internal spending regulations of units.

3. Distribution of financial results in a year

a/ Public non-business units in the fields of health-population shall distribute financial results in a year in accordance with Articles 14, 18 and 22 of this Decree.

b/ Medical examination and treatment establishments shall, depending on their financial capacity, set aside a medical examination and treatment support fund to provide support for policy beneficiaries who are members of poor households, households living just above the poverty line or families facing economic difficulties.

The support covers meals during inpatient treatment; expenses for travel from home to hospital and vice versa, and expenses for hospital transfer; medical examination and treatment expenses exceeding levels covered by the Health Insurance Fund for persons suffering cancer, hemodialysis, heart surgery or other diseases for which expenses are too high for patients to afford.

Heads of units shall formulate regulations on medical examination and treatment support, ensuring publicity and transparency.

Article 27. Allocation and assignment of estimates to group-3 units

1. State budget funds shall be allocated for regular expenses for units assigned to provide preventive health services (including health stations of communes, wards and townships), and health improvement, population and food safety services that are on the list of public non-business services funded by the state budget, including:

a/ Expenses for payment of salaries, salary-based contributions and salary-based allowances under the State-provided regime applicable to public non-business units, which shall be determined on the basis of number of employees salaried by the state budget and assigned by competent authorities to perform the tasks of providing preventive health, health improvement, population and food safety services;

b/ Expenses for operation and assurance of regular activities, and other specific expenses according to assigned functions and tasks of units and provided regimes.

2. State budget funds shall be allocated for regular expenses for units providing medical examination and treatment, and caring for and nurturing leprosy and mental illness patients under the mechanism of placement of orders or assignment of tasks for provision of public non-business services on the basis of number of service users, and unit prices of medical examination and treatment, care and nurture services for these subjects as specified by law.

3. State budget funds shall be partially allocated for units that cannot yet cover their regular expenses by themselves for the following activities: medical examination and treatment, medical quarantine, preventive health, population-planning family, reproductive health care; health communication; forensic assessment, forensic psychiatric assessment and medical assessment; testing of drugs, cosmetics and drug materials; control of vaccines and biologicals; food safety testing, standardization control, and calibration.

Article 28. Classification of financial autonomy levels of multi-functional medical centers

1. A multi-functional medical center shall determine its level of self-coverage of regular expenses in accordance with this Decree. In case the center’s revenues from medical examination and treatment services and other services can cover regular expenses or can cover both regular expenses and investment expenses for medical examination and treatment activities, the center shall be classified and assigned to exercise financial autonomy like a group-1 unit or group-2 unit. For preventive health, health improvement, population, and food safety activities, and activities of health stations of communes, wards and townships, state budget funds shall be partially allocated under Clause 1, Article 27 of this Decree.

2. Centers may use revenues from medical examination and treatment services and other services; and state budget fund allocated for activities as specified in Clause 1, Article 27 of this Decree to pay expenses for their activities. The distribution of financial results in a year must comply with this Decree.

Section 2

FINANCIAL AUTONOMY FOR EDUCATION AND TRAINING AND VOCATIONAL EDUCATION INSTITUTIONS

Article 29. Conditions for higher education institutions to exercise autonomy

A higher education institution may exercise the autonomy mechanism in accordance with the law on higher education if fully satisfying the following conditions:

1. Having formed the university/general university council and recognized by a lawful education quality accreditation institution as conforming to higher education institution quality standards.

2. Having issued, and organized the implementation of, the operation regulation of the university/general university council; regulation on coordination between the university/general university council, Party Committee and the university/general university; organization and operation regulation; regulation on democracy exercise; regulation on management of training, science and technology, students, finance and assets, and policies to ensure education quality up to quality standards specified by the State.

3. Delegating powers for exercising the autonomy and accountability to units and individuals in the institution.

4. Formulating a scheme on autonomy and publicizing all conditions for quality assurance, inspection results, employment rate of graduates and other information in accordance with law.

Article 30. Financial autonomy

1. Financial resources

Financial sources of an education and training institution or a vocational education institution are specified in Articles 11, 15 and 19 of this Decree and include:

a/ State budget funds for public education and training institutions and vocational education institutions to implement the policy on tuition fee exemption or reduction; and as support for study expenses and other support policies for students (if any) in accordance with the State’s regulations;

b/ Collected tuition fees as specified by the laws on education, higher education, and vocational education, and the Government’s regulations on tuition fees;

c/ Revenues from production and service provision activities, including revenues from education and training services by the mode of continuing education; revenues from short-term training and further training services on professional knowledge and improvement of knowledge and skills for grant of training certificates and other forms of short-term training and further training; revenues from education and training counseling services; revenues from training cooperation with enterprises; revenues from scientific research and technology transfer; and revenues from other services provided within the ambit of functions and tasks of the education and training institution, and in accordance with regulations. Revenues from services shall be specified and publicized.

2. Use of financial resources

Education and training institutions and vocational education institutions may decide to use their financial resources to pay expenses for regular activities, ensuring outcome quality standards as committed. The autonomy in using financial resources is specified in Articles 12, 16 and 20 of this Decree and covers:

a/ Expenses for grant of study promotion scholarships and tuition fee exemption or reduction; as support for study expenses for students; and other support expenses for students (if any) in education and training institutions and vocational education institutions in accordance with the State’s regulations;

b/ Expenses for investment in maximizing scientific and technological potential and promoting scientific and technological activities in higher education institutions in accordance with the law on higher education and accounted as reasonable expenses of institutions.

3. Distribution of financial results in a year

a/ Education and training institutions and vocational education institutions shall distribute financial results in a year in accordance with Articles 14, 18 and 22 of this Decree.

b/ Based on their financial resources, education and training institutions and vocational education institutions shall set aside the student support fund. The management and use of the student support fund must comply with relevant guidance of the Ministry of Education and Training (for activities in the field of education and training) or the Ministry of Labor, Invalids and Social Affairs (for activities in the field of vocational education).

Article 31. Financial autonomy for regional general universities

Financial autonomy for regional general universities must comply with this Decree and the following provisions:

1. The Ministry of Education and Training shall provide specific guidance on financial autonomy for regional general universities.

2. A regional general university shall formulate a financial regulation and submit it to the Ministry of Education and Training for approval for the former to implement. Based on the financial regulation approved by the Ministry of Education and Training, the director of the regional general university shall issue the internal spending regulation of the regional general university; heads of member general universities and attached units of the regional general university shall issue their own internal spending regulations.

Chapter IV

MAKING AND EXECUTION OF ESTIMATES AND ACCOUNT-FINALIZATION OF REVENUES AND EXPENSES

Article 32. Making of estimates

1. For group-1 units and group-2 units

a/ Annually, based on implementation results in terms of quantity and volume of services; revenues from and expenses for provision of public non-business services and other services of the current year, and requirements and tasks of the planning year, units shall formulate plans on quantity and volume of services and revenue-expense estimates, and report them to superior management agencies;

b/ For public non-business services to be provided under orders placed by the State: Annually, based on unit prices, quantity and volume of public non-business services to be provided under orders, and guidance of ministries, central agencies or provincial-level People’s Committees, units shall make estimates and send them to superior management agencies.

2. For group-3 units: Based on the implementation situation in the current year and tasks of the planning year, units shall formulate plans on quantity and volume of public non-business services and revenue-expense estimates, and report them to superior management agencies.

3. For group-4 units: Based on the implementation situation in the current year, tasks assigned by competent authorities in the planning year, number of employees approved by the competent authorities, and the current spending regime, units shall make revenue-expense estimates and send them to superior management agencies.

4. Public non-business units shall make revenue-expense estimates from collected charge amounts permitted to be retained for payment of expenses in accordance with the law on charges and fees; and estimates of expenses for performance of irregular tasks in accordance with the law on the state budget.

5. Annually, superior management agencies shall consider, summarize and send revenue-expense estimates of public non-business units to same-level finance agencies and related agencies in accordance with the law on the state budget.

Article 33. Allocation and assignment of estimates

1. The annual allocation and assignment of estimates by superior management agencies to public non-business units must comply with the law on the state budget. Specifically, for group-3 units and group-4 units, the allocation and assignment of regular expense estimates under the financial autonomy mechanism of annual state budget funds shall be based on revenue-expense estimates of the first year of the budget stabilization period and fluctuations as a result of changes in the State’s policies and regimes leading to changes in revenue-expense estimates of units.

2. Based on estimates assigned by competent authorities, superior management agencies shall allocate and assign estimates to their attached units, clearly stating estimates for assignment of tasks and placement of orders for provision of public non-business services funded by the state budget to attached public non-business units; placement of orders (or assignment of tasks in cases specified by specialized laws) to other public non-business service providers; or organization of bidding for provision of public non-business services funded by the state budget in accordance with the Government’s Decree No. 32/2019/ND-CP of April 10, 2019, on the assignment of tasks, placement of orders, or bidding for provision of public products and services funded by the state budget from funds reserves for regular expenses (below referred to as the Government’s Decree No. 32/2019/ND-CP).

Article 34. Accounting and account-finalization

1. Public non-business units shall implement the accounting regime applicable to administrative and non-business units and internal audit regime in accordance with the current law on internal audit; and open account books for monitoring in detail the provision of public non-business services funded by the state budget as tasked by competent state agencies and provision of public non-business services not funded by the state budget to meet the society’s demands without using state budget funds.

In case group-1 units formulate management and accounting schemes following the model applicable to enterprises as approved by competent authorities, they shall comply with the corporate accounting regime.

2. Public non-business units shall formulate their annual financial statements for submitting to their superior management agencies and related agencies in accordance with the law on accounting.

3. Public non-business units shall formulate annual account-finalization statements of their allocated state budget funds, aid amounts, and collected charge amounts and other amounts that are permitted to be retained under regulations, and submit them to their superior management agencies or same-level finance agencies in accordance with the law on accounting and law on the state budget.

4. Based on the practical conditions of public non-business units, the organization of their accounting apparatus shall be decided by the competent agencies that have established such units, which must be suitable to the units and meet the requirement on streamlining of the accounting apparatus.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 35. Assignment of the financial autonomy to public non-business units

1. Public non-business units shall formulate their financial autonomy plans for a 5 (five)-year budget stabilization period in line with the Government-prescribed socio-economic development period; make revenue-expense estimates of the first year of the budget stabilization period and propose the classification of their financial autonomy levels as suitable to their assigned functions and tasks (made according to the form provided in Appendix II to this Decree), and report such plans to the superior management agencies (ministries or central agencies, for centrally managed units; or provincial- or district-level People’s Committees, for locally managed units). Such a financial autonomy plan must clearly identify the financial autonomy level of a public non-business unit based on 4 groups of public non-business units specified in this Decree.

2. For public non-business units with attached non-business units

a/ Public non-business units shall formulate their financial autonomy plans and report them to their superior public non-business units for approval after reaching agreement with their superior management agencies.

b/ Superior public non-business units shall formulate their financial autonomy plans (excluding financial autonomy plans of their attached public non-business units specified at Point a of this Clause) and send them to their superior management agencies.

3. Based on the financial autonomy plans proposed by public non-business units (excluding financial autonomy plans of the public non-business units specified at Point a, Clause 2 of this Article), superior management agencies shall consider and verify their regular revenue-expense estimates of the first year of the budget stabilization period, determine regular expenses funded by the state budget, collected charge amounts permitted to be retained; and state budget funds used for placement of orders for provision of public non-business services (in case it is possible to determine funds for placement of orders for the units at the time of appraisal of the financial autonomy plans); plan the classification of attached units based on their financial autonomy levels, and summarize classification plans and revenue-expense estimates of public non-business units and send written requests to their same-level finance agencies (the Ministry of Finance or local finance agencies as delegated) for consideration and opinion.

After obtaining written opinions of the same-level finance agencies, superior management agencies shall determine groups of units and issue decisions on assignment of the financial autonomy to their attached public non-business units; and approve the estimates of regular expenses funded by the state budget and collected charge amounts permitted to be retained; and state budget funds used for placement of orders for provision of public non-business services (if any) for the units according to their financial autonomy plans of the first year of the budget stabilization period.

4. After each budget stabilization period (5 years), ministries and central agencies (for centrally managed units), or provincial-level People’s Committees (for locally managed units) shall review and raise the financial autonomy levels of group-3 units (except public non-business units providing basic and essential public non-business services without non-business revenues) according to the following roadmap:

a/ To transform at least 30% of public non-business units that can cover by themselves between 70% and under 100% of their regular expenses into group-2 units; annually, to decrease at least 2.5% of expenses directly paid from the state budget;

b/ To transform at least 30% of public non-business units that can cover by themselves between 30% and under 70% of their regular expenses into public non-business units that can cover by themselves between 70% and under 100% of their regular expenses; annually, to decrease at least 2.5% of expenses directly paid from the state budget;

c/ To transform at least 30% of public non-business units that can cover by themselves between 10% and under 30% of their regular expenses into public non-business units that can cover by themselves between 30% and under 70% of their regular expenses; annually, to decrease at least 2.5% of expenses directly paid from the state budget.

5. Public non-business units that are classified by competent agencies as group-1 units or group-2 units shall continue complying with the financial autonomy mechanism specified in this Decree; these units may not be transformed into group-3 units or group-4 units during or after the 5 (five)-year budget stabilization period, except cases of force majeure events due to objective causes (such as natural disasters and epidemics) or cases in which such units have their functions, tasks and powers adjusted by state competent agencies according to law, which lead to changes in their revenues and financial autonomy levels.

Group-1 units and group-2 units shall complete dossiers and send reports to their superior management agencies for assignment of land areas and public assets in accordance with relevant laws.

6. Superior management agencies shall carry out the reorganization or dissolution of poorly-performing public non-business units in accordance with the Government’s regulations on establishment, reorganization and dissolution of public non-business units.

Article 36. Responsibilities of ministries and central agencies

1. Responsibilities of ministries and central agencies

a/ To coordinate with the Ministry of Finance in guiding public non-business units of their sectors and fields to comply with this Decree;

b/ To assume the prime responsibility for, and coordinate with the Ministry of Finance in, submitting to the Prime Minister for promulgation or revision the list of public non-business funded by the state budget in the fields under their management specified in Article 4 of this Decree, which must be suitable to reality in each period;

c/ To issue or revise techno-economic norms and expense norms (if any) to serve as a basis for issuance of unit prices and prices of public non-business services funded by the state budget in accordance with the law on price and other relevant laws so as to have grounds for assignment of tasks, or placement of orders or bidding for provision of public non-business services specified in the Government’s Decree No. 32/2019/ND-CP;

d/ To issue criteria and standards on the quality of public non-business services funded by the state budget; mechanisms on quality supervision, evaluation and inspection, and regulations on examination and pre-acceptance test, of public non-business services funded by the state budget of ministries and central agencies; and on the operational efficiency of public non-business units;

dd/ To conduct inspection and examination, and sanction violations in provision of public non-business services, and organize the performance of state management responsibilities for public non-business services and public non-business units under the management of ministries and central agencies.

2. The Ministry of Finance

a/ To assume the prime responsibility for, and coordinate with ministries and sectors in, guiding the implementation of this Decree;

b/ To develop, manage, and operate an information and data system on finance and public assets of public non-business units nationwide.

3. The Ministry of Labor, Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with ministries and sectors in, guiding the salary regime for employees working in group-1 units and group-2 units as specified at Point b, Clause 1, Article 12 of this Decree.

4. For special sectors and fields, ministries and central agencies shall, based on relevant specialized laws, assume the prime responsibility for, and coordinate with the Ministry of Finance and related ministries and agencies in, submitting to the Government for promulgation additional regulations on special autonomy mechanisms applicable to such sectors and fields.

5. Annually, ministries and central agencies shall send to the Ministry of Finance reports on the results on implementation of the financial autonomy mechanism of their attached public non-business units; and reports on results of the declaration and updating of information and assurance of data connection and integration to the information and data system on finance and public assets of public non-business units nationwide. After each budget stabilization period (5 years), ministries and central agencies shall send to the Ministry of Finance reports on the evaluation of the implementation results under Clause 4, Article 35 of this Decree.

Article 37. Responsibilities of provincial-level People’s Committees

1. To promulgate or revise the list of public non-business services funded by the state budget which fall under the management of localities specified in Article 4 of this Decree to suit reality in each period.

2. To issue or revise techno-economic norms and expense norms (if any) to serve as a basis for issuance of unit prices and prices of public non-business services funded by the state budget in accordance with the law on price and other relevant laws so as to have grounds for assignment of tasks, or placement of orders or bidding for provision of public non-business services specified in the Government’s Decree No. 32/2019/ND-CP.

3. To issue criteria and standards on the quality of public non-business services funded by the state budget; mechanisms on quality supervision, evaluation and inspection, and regulations on examination and pre-acceptance test, of public non-business services funded by the state budget under the management of localities; and on the operational efficiency of public non-business units.

4. To conduct inspection and examination, and sanction violations in provision of public non-business services, and organize the performance of state management responsibilities for public non-business services and public non-business units under the management of localities.

5. Annually, to send to the Ministry of Finance reports on the results of implementation of the financial autonomy mechanism of their attached public non-business units; and reports on the declaration and updating of information and assurance of data connection and integration to the information and data system on finance and public assets of public non-business units nationwide. After each budget stabilization period (5 years), to send to the Ministry of Finance reports on the evaluation of the implementation results under Clause 4, Article 35 of this Decree.

Article 38. Responsibilities of public non-business units

1. To take responsibility before the superior management agencies and before law for their decisions on exercise of the financial autonomy.

2. To ensure the quality of public non-business services according to the criteria and standards issued by competent state agencies.

3. To formulate, and organize the implementation of, internal spending regulations, regulations on use of assets, grassroots democracy regulations, and regulations on financial publicity and internal audit in accordance with law.

4. To implement regulations on publicity and accountability for revenue-expense activities and figures when formulating their financial autonomy plans before their managing agencies, state management agencies, audit offices, and inspection agencies in accordance with law. Annually, to send reports on the evaluation of the implementation results of the financial autonomy mechanism to their superior management agencies under regulations.

Article 39. Application of this Decree to other subjects

1. Attached public non-business units of socio-political-professional organizations, social organizations, socio-professional organizations or other organizations may apply the financial autonomy mechanism specified in this Decree, adhering to the principles of self-coverage of operating expenses without allocations from the state budget.

2. Socio-political-professional organizations, social organizations, socio-professional organizations and other organizations shall be accountable for deciding on the assignment of financial autonomy to their attached public non-business units according to the regulations defining their functions and tasks and charters and other relevant regulations.

Article 40. Transitional provisions

1. Units for which the financial autonomy has been assigned under the Government’s Decree No. 43/2006/ND-CP of April 25, 2006, on the autonomy and accountability for task performance, organizational apparatus, payroll and finance of public non-business units, the Government’s Decree No. 54/2016/ND-CP of June 14, 2016, on the autonomy mechanism applicable to public science and technology organizations; and the Government’s Decree No. 141/2016/ND-CP of October 10, 2016, on the autonomy mechanism applicable to public non-business units engaged in economic non-business activities and other non-business activities, shall continue complying with the financial autonomy plans approved by competent authorities till the end of 2021.

2. From 2022 onward, public non-business units shall comply with Article 35 of this Decree and the following provisions:

a/ By March 31, 2022, group-3 units and group-4 units shall report their financial autonomy plans to their superior management agencies for approval;

b/ By June 30, 2022, ministries, central agencies, and provincial- and district-level People’s Committees shall approve the financial autonomy plans of public non-business units under their management after obtaining opinions of the same-level finance agencies.

3. Public non-business units which, under decisions approved by the Prime Minister or provincial-level People’s Committees before the effective date of this Decree, are permitted to implement on pilot basis the mechanism on full autonomy and accountability for their regular expenses and investment expenses, shall continue being regarded as group-1 units, and may continue complying with such decisions or apply the financial autonomy mechanism specified in this Decree.

4. Public non-business units which, under regulations of competent agencies, are permitted to apply the financial mechanism like enterprises before the effective date of this Decree, may continue to comply with such regulations or apply the financial autonomy mechanism applicable to group-1 units specified in this Decree.

5. By the effective date of this Decree, the remainder of the contingency fund for income stabilization (set aside under the Government’s Decree No. 43/2006/ND-CP of April 25, 2006, on the autonomy and accountability for task performance, organizational apparatus, payroll and finance of public non-business units); or the remainder of the fund for income addition (set aside under the Government’s Decree No. 54/2016/ND-CP of June 14, 2016, on the autonomy mechanism applicable to public science and technology organizations, and the Government’s Decree No. 141/2016/ND-CP of October 10, 2016, on the autonomy mechanism applicable to public non-business units engaged in economic non-business activities and other non-business activities) shall be handled as follows:

a/ For group-1 units and group-2 units, such remainder shall be transferred to the fund for income addition; from the effective date of the salary regime promulgated by the Government under Resolution No. 27-NQ/TW, the remainder of the fund for income addition shall be included in the reward fund and welfare fund;

b/ For group-3 units, such remainder shall be transferred to the fund for income addition.

Article 41. Effect

1. This Decree takes effect on August 15, 2021.

2. The following legal documents cease to be effective on the effective date of this Decree:

a/ The Government’s Decree No. 16/2015/ND-CP of February 14, 2015, prescribing the autonomy mechanism applicable to public non-business units;

b/ The Government’s Decree No. 54/2016/ND-CP of June 14, 2016, prescribing the autonomy mechanism applicable to public science and technology organizations;

c/ The Government’s Decree No. 141/2016/ND-CP of October 10, 2016, prescribing the autonomy mechanism applicable to public non-business units engaged in economic non-business activities and other non-business activities;

d/ The Government’s Decree No. 85/2012/ND-CP of October 15, 2012, prescribing the operational and financial mechanisms applicable to public health non-business units and prices of medical examination and treatment services of public health establishments.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

Appendix I

LIST OF PUBLIC NON-BUSINESS SERVICES FUNDED BY THE STATE BUDGET

(Attached to the Government’s Decree No. 60/2021/ND-CP dated June 21, 2021)

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Appendix II

FINANCIAL AUTONOMY PLAN TEMPLATE FOR PUBLIC NON-BUSINESS UNITS¹

(Attached to the Government’s Decree No. 60/2021/ND-CP dated June 21, 2021)

- Pursuant to the Government’s Decree No. .../2021/ND-CP dated ... 2021 prescribing the autonomy mechanism applicable to public non-business units;

- Pursuant to Decision No. ... of the superior management agency prescribing the functions and tasks of the unit;

- Pursuant to Decision No. ... of the superior management agency assigning the payrolls (if any);

- Pursuant to Decision No. ... of the superior management agency assigning tasks for the year ..., details of each assigned task.

I. Part One: Evaluation of the implementation of the financial autonomy plan of the previous period. In case of newly established units, no evaluation is required.

1. Regarding the tasks; organizational structure; quantity of cadres, civil servants and contractual employees

Where the tasks and functions; the organizational structure to perform the tasks assigned by the competent authority; the quantity of cadres, civil servants, and contractual employees shall be clearly stated.

2. Regarding the assigned tasks, provide a detailed list of them; the tasks assigned to affiliated units; and the tasks performed by the unit itself.

Provide details of the performance status of the tasks, the workload completed, the quality of such completed workload regarding each task.

3. The compliance with financial policies, regimes and regulations of the State.

- Regarding levels of revenues from non-business activities: Fees and charges collected in accordance with written regulations of competent authorities; fees and charges decided by the unit itself: Specify them in details; exemption and reduction policies in accordance with regulations: Specify them in details.

- Compliance with financial regimes; internal spending regulations of the unit; other regulations (if any).

4. Reporting on the implementation of financial revenue and expense targets during the autonomy period.

- State budget allocated for regular expenses: Estimated allocation; actual expenses; amount of savings.

- Revenues and expenses of service activities: revenues; expenses; difference between revenues and expenses.

- Amount of fees that may be retained in accordance with the law regulations on fees and charges in order to be spent in accordance with the regulations: Amount retained to be spent; actual spending; amount of savings.

5. Distribution of differences between regular revenues and expenses, including:

- Setting aside the fund for development of non-business activities.

- Setting aside the fund for income addition, reward fund, welfare fund, other funds (if any).

6. Additional income for employees.

7. Difficulties, shortcomings, and recommendations:

II. Part two: Reporting on the financial autonomy plan for the next period.

1. Regarding the tasks, organizational structure, quantity of cadres, civil servants and contractual employees: Report similarly to Point 1 of Part I above.

2. Regarding the tasks expected to be assigned, list in detail each task; the tasks to be assigned to affiliated units; and the tasks to be performed by the unit itself.

3. Regarding revenue and expense estimates:

a) Regular revenue and expense estimates

- Regarding revenues from non-business and service activities:

- Regarding sources of revenues for regular expenses:

- Regular expenses:

- Estimated difference between regular revenues and expenses (if any).

b) Estimated expenses for irregular tasks

4. Determining the unit’s financial autonomy level.

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¹ Used by level-3 public non-business units to report to superior management agencies