INTRODUCTORY 1 The need of the research topic The development of science and technology is a particularly important issue, which has long been considered a top national policy and a driving force for[.]
INTRODUCTORY The need of the research topic: The development of science and technology is a particularly important issue, which has long been considered a top national policy and a driving force for socio-economic development The Central Committee of the Party (Second Central Committee, Term VIII in 1996) approved the Resolution on "Strategic orientations for development of science and technology in the period of industrialization and modernization and tasks to the year 2000" Then, at the Xth Congress, for the first time, our Party recorded in the document an important thesis on the development of the knowledgebased economy as a constitutive element of the industrialization and modernization of the country In the system of management mechanisms for S&T activities, the financial management mechanism plays an important role Finance is both a resource and a driving force for the development of science and technology The fact that financial resources are properly arranged and properly allocated is only one side of the problem, the other side is that there must be an appropriate financial management mechanism, built and implemented based on the characteristics of the financial institution S&T activities The financial management mechanism in general, the state budget expenditure management mechanism in particular, for S&T activities has also been gradually renewed, gradually removing difficulties and obstacles in the process of implementing S&T activities However, along with the development of the economy and society, the perfection of the economic management mechanism and the increasing requirements for the contribution of science and technology factors to the economy, the management mechanism has increased Finance in general, the state budget expenditure management mechanism in particular, for science and technology activities have also revealed many limitations and shortcomings in both theory and practice, thereby posing requirements that need to be researched and perfected in order to improve the efficiency of state budget spending for S&T activities Stemming from the above reasons, the author chooses the topic: "Mechanism management of state budget expenditures for science and technology activities in Vietnam" Research purpose of the thesis: Through the research of this thesis, the author wishes on the basis of theoretical and practical research, to propose solutions and recommendations to contribute to improving the cost management mechanism State budget for S&T activities in Vietnam Research tasks of the thesis Firstly, systematize the theory of S&T activities; on financial management mechanism, state budget expenditure management mechanism for S&T activities; experience of some countries in this regard Second, analyze and evaluate the current status of the state budget expenditure management mechanism for S&T activities in Vietnam In which, analyze and evaluate the current status of the state budget expenditure management mechanism according to the budget process, each type and level of S&T activities; by each method From there, clearly identify the achieved results, the remaining limitations in the mechanism of state budget expenditure management for S&T activities Thirdly, on the basis of viewpoints, objectives and orientations for S&T development, assessing the actual situation of implementing state budget expenditure management for S&T activities, the thesis proposes objectives, views, orientations and solutions in order to improve the mechanism of state budget expenditure management for S&T activities The thesis focuses on solving the following issues: Concept and characteristics of S&T activities in the economy - society; mechanism of management of state budget expenditure in general and mechanism of management of state budget expenditure for S&T activities; Overview of state budget expenditures for the S&T sector in Vietnam; Mechanism of allocation, management and use of state budget expenditures for S&T activities in Vietnam; Solutions to improve the mechanism of state budget expenditure management for S&T activities in Vietnam The object and scope of the study of the thesis - Research object: Theoretical and practical issues of S&T activities; mechanism for management of state budget expenditures for S&T activities - Scope of research: In terms of space, the thesis focuses on studying the issue of the state budget expenditure management mechanism for S&T activities, including the state budget expenditure management mechanism according to the budget cycle to perform the S&T tasks of the S&T activities granting, the allocation mechanism and the Fund mechanism in S&T activities In terms of time, the thesis mainly uses the data of state budget expenditures for science and technology from 2017 to 2022 In some cases, the thesis uses time series data through periods to get an overview of both progress Research method: The thesis uses common scientific research methods, and at the same time uses theoretical research methods and practical research methods Data collection: Secondary data sources are data from the Ministry of Finance, the Ministry of Science and Technology and data from published research works New contributions of the thesis (1) General contribution: The thesis is the first work to classify the state budget expenditure management mechanism for S&T according to the criteria of the budget process and the criteria of the method of budget expenditure management for activities S&T activities; At the same time, research on the management mechanism of state budget expenditure for S&T activities in both directions has also been carried out, both according to the budget process (2) In theoretical: The thesis has presented some theoretical issues about management mechanism, financial management mechanism and state budget expenditure management mechanism for S&T activities At the same time, the thesis introduces its own concept and points out the characteristics, principles and content of the state budget expenditure management mechanism for S&T activities (3) In practical: The thesis has assessed the status of the state budget expenditure management mechanism for S&T activities in Vietnam according to the budget cycle, from three angles: Mechanism of management of state budget expenditure for S&T tasks at all levels; Mechanism of contract spending to perform S&T tasks; Mechanism of management of state budget expenditure through S&T funds (4) Regarding solutions: Based on the analysis of the current situation and orientation of the Party and State, the thesis has proposed a system of solutions to improve the mechanism of state budget expenditure management for S&T activities In which, it proposes solutions to improve the state budget expenditure management mechanism for S&T tasks at all levels and perfect the management mechanism for S&T funds in Vietnam Thesis structure Beside of the introduction, conclusion, the thesis is structured into chapters: Chapter 1: Theoretical basis for S&T activities and the mechanism of state budget expenditure management for S&T activities Chapter 2: The current situation of the state budget expenditure management mechanism for S&T activities in Vietnam Chapter 3: Solutions to improve the state budget expenditure management mechanism for S&T activities in Vietnam Overview of the related researchs to the thesis 8.1 Overseas researchs (1) On funding for S&T: Research by Walter W Powell, Jason Owen-Smith (2007) in “Innovation and simulation: lessons from US universities selling private ownership to becoming General knowledge shows that building a suitable financial mechanism between research and applied units will have mutual support and influence in S&T research activities Research by author Charly.J (2012) on "Building a mechanism to share scientific data internationally" suggests that, in addition to investment by governments, should be attracted from businesses, by businesses Industry is the one who needs and benefits greatly from sharing scientific data (2) On financial mechanism for S&T: Research by Charly.J (2012) [86], Building a mechanism to share scientific data internationally The author's research proposes the establishment of a non-profit trust fund This fund is operated with the financial mechanism of contributions of countries as member countries This fund will be used in part for scientists to research and build databases (3) About the evaluation of investment efficiency for S&T Research by author Terry F Young (2013) [93], Evaluation of research effectiveness at US environmental protection agency The author believes that in order to effectively operate a financial mechanism for S&T research activities, it is necessary to build a system of evaluation criteria as well as a set of tools to evaluate the effectiveness of scientific research In the Framework for Assessment of Science and Technology Development Policy of UNCTA (2011), it is shown that: countries have grounds for strategic planning, policy formulation as well as application of financial mechanisms in accordance with the provisions of the law conditions for each country to promote scientific and technical development Authors Amir Piric and Neville Reeve (2015) with "Assessment of public investment activities for science and technology development" propose studies to use financial criteria to evaluate projects when selecting projects selection and evaluation of research results Research by George Papaconstantinou and Wolfgang Polt (2016) in "Financial Policy Evaluation in Science and Technology Innovation" mainly focuses on macro level, the research has not mentioned the implementation as well as building financial mechanism at scientific research institutions has not been specified, not yet specifying the conditions and operating models of scientific research institutions to be able to apply and operate the approved financial mechanism Proposal works as expected 8.2 Domestic researches (1) Studies on the role of science and technology and investment in science and technology: Center for Scientific Research, Institute for Legislative Research (2013) in "Financial management in S&T activities - Current situation and solutions" for that the system of financial mechanisms and policies plays a particularly important role in the development of S&T activities Research by author Dat Khang (2015) in "Need to renew financial mechanism and mobilize investment for S&T suggests that 2% of budget expenditure for S&T activities belongs to the group of countries with a high rate The study makes a proposal to pay high salaries to scientists and pilot a mechanism of contracting payments to the final product and the state will buy back S&T products Author Dr Nguyen Thi Nhung (2014), "The current status of the financial mechanism for S&T activities in Vietnam in the recent period" has pointed out outstanding issues about the financial management mechanism for S&T activities (2) Studies on the legal basis for the state budget expenditure management mechanism for S&T activities: Author Lieu Thi Ngoc Suong in "Innovation of financial mechanism for S&T activities" has proposed a number of issues that need to be amended and supplemented in the financial mechanism for S&T activities, conditions for selected tasks to be assigned stock to the final product Author Minh Tien (2007) in "New Financial Mechanism for Science and Technology" pointed out the innovations in financial mechanism for S&T at the time of the research This is a breakthrough policy to create conditions for organizations and individuals to apply scientific and technological results to production and business (3) Studies on the current situation and proposed solutions to improve the state budget expenditure management mechanism for S&T activities: Research by Assoc Prof Dr Le Xuan Truong (2014), "Financial mechanism for S&T: From international practice to Vietnamese practice" suggests it is necessary to learn from experiences from advanced countries, This is a necessary job for developing countries like Vietnam Author GS.TS Ngo The Chi in "Research on theoretical and practical basis for building a mechanism for creating, managing and using sources to form science and technology development funds in enterprises" proposes solutions to increase investment in science and technology development in Vietnam enterprises, financial mechanism, management mechanism, and use of financial resources for S&T development in Vietnamese enterprises in the coming years Author Dr Nguyen Truong Giang (2012) on “Renovation of financial mechanism for S&T” pointed out the shortcomings of financial mechanism for S&T activities; propose a group of solutions in the management and use of state budget funds; science and technology sector (4) Regarding the evaluation of investment efficiency for S&T: The authors Amir Piric and Neville Reeve (2015) in "Evaluating public investment activities for S&T development" propose to use financial criteria to evaluate projects when selecting and appraising research results rescue Authors George and Wolfgang Polt (2016) in the new "Financial Policy Review in Science and Technology Innovation" mainly focus on the macro level, the research has not mentioned the implementation as well as the construction of financial mechanism in Vietnam scientific research institutions 8.3 Achievements and gaps in research on the mechanism of state budget expenditure management for S&T activities (1) General assessment of the results achieved by the research works: All the research results published above are important sources of material inherited and developed by the thesis author However, the published works show that there are still issues that have not been mentioned or mentioned comprehensively With this thesis, the author wishes to contribute to overcome those gaps (2) Gaps in research on the management mechanism of state budget expenditure for S&T activities Firstly, the authors mainly focus on research on the results, effectiveness of S&T activities and criteria for evaluating the results of S&T activities, but have not gone deep into systematizing the methods of operation and organization scientific and technological activities as a basis for research according to each method and content Secondly, most of the studies have studied and considered the issue of financial management mechanism, the state budget for S&T activities as a whole, there have not been studies looking at the issue of financial management mechanism, state budget for different groups of S&T subjects to show the suitability and inadequacy if the same model is applied Third, most of the solutions are still general, lacking specific and detailed solutions, associated with the reality of state budget expenditure management for S&T activities From the point of view of inheriting and developing from previous studies, the thesis focuses on in-depth research on the mechanism of state budget expenditure management for S&T activities in Vietnam, contributing to overcome the gaps that have not been mentioned fully in previous studies CHAPTER 1: THEORETICAL BASIS FOR S&T ACTIVITIES AND THE MECHANISM OF STATE BUDGET EXPENDITURE MANAGEMENT FOR S&T ACTIVITIES 1.1 Science, technology and science and technology activities 1.1.1 Concepts of science, technology and S&T activities 1.1.1.1 Science: Science is understood as the collection of understandings about nature, society, and thought expressed by inventions in the form of theories, theorems, laws, and principles Thus, the essence of science is the discovery of phenomena whose properties inherently exist objectively This discovery has changed human perception, facilitating research and application of this knowledge in practice 1.1.1.2 Technology: From the results of research and analysis of the above concepts, based on the reality at the present time, the author proposes the concept of technology as follows: Technology is a set of systematic solutions that are established used in the process of creating a product, completing a work or performing a certain service to serve a specified purpose 1.1.1.3 S&T activities: These are activities on “scientific research, experimental research and development, technology development, technology application, S&T services, promotion of initiatives and other creative activities for development S&T” 1.1.2 Characteristics of S&T activities: S&T activities are a kind of creative intellectual work; High risk of S&T activities, unpredictable research process and expected results; S&T activities are inherited and cumulative; S&T activities are always associated with training and production needs 1.1.3 The role of science and technology in the economy: Promoting economic growth and development; Promote economic restructuring towards progress, increase the proportion and position of GDP of the industrial sector, the service sector, reduce the proportion of the agricultural sector; Improve the competitiveness of enterprises and the economy 1.2 State budget expenditure for S&T activities 1.2.1 State budget and state budget expenditures for S&T activities: According to the 2015 State Budget Law: “State budget is all revenues and expenditures of the State that are estimated and realized in a certain period of time, by competent state agencies decisions to ensure the performance of the State's functions and tasks" 1.2.2 Contents of state budget expenditures for S&T activities: State budget expenditures for S&T activities are all expenditures from the state budget for S&T activities If fully calculated, this expenditure includes direct expenditure from the state budget and indirect expenditure through funding policies outside the state budget, such as tax exemption and reduction policies and other indirect expenses However, within the scope of the thesis, the author focuses on the content of direct expenditures from the state budget for S&T activities, including: 1.2.2.1 S&T investment and development expenditure: S&T development investment expenditure is an irregular expenditure for the purpose of building infrastructure, material and technical facilities for S&T organizations regardless of economic sectors 1.2.2.2 Recurring expenditures for science and technology: Recurring expenditures for science and technology are expenditures incurred regularly, continuously, annually, 1.2.3 Characteristics of state budget expenditure for S&T activities: State budget expenditures for S&T activities are expenditures for intellectual labor to meet and stimulate the ability and creative needs of scientists; State budget expenditure for S&T activities is risky 1.2.4 The role of state budget expenditure for S&T activities: The role of the state budget for S&T in each country and in each period is different However, whether the proportion is high or low, state budget expenditure still plays a very important role in S&T development in all countries for the necessary S&T fields, but the private sector cannot or does not want to invest as in basic research 1.3 Mechanism of management of state budget expenditure for S&T activities 1.3.1 Financial management mechanism and state budget expenditure management mechanism for S&T activities 1.3.1.1 The concept of financial management mechanism: Financial management mechanism is a collection of measures and organizational forms to manage the process of creating, distributing and using financial resources Thus, the definition of financial mechanism given in the Dictionary of Economic Terminology is the definition of "financial management mechanism" (a subjective category), not the definition of "financial mechanism" finance”, (an objective category) 1.3.1.2 Mechanism of management of state budget expenditures for S&T activities: The mechanism of management of state budget expenditures for S&T activities is a combination of measures and organizational forms to manage the process of making, implementing and finalizing state budget expenditures for S&T activities S&T activities with three main functions: (i) Stimulating S&T development, through the operation of financial and state budget mechanisms and policies; (ii) Regulating S&T relationships among stakeholders through financial and state budget relations; (iii) Control economic activities through the mechanism to control the movement of cash flow 1.3.2 Characteristics of state budget expenditure management mechanism for S&T activities: Firstly, the financial management mechanism in general and the state budget expenditure management mechanism in particular for S&T reflect the financial relationship between scientific research organizations and state and society; Secondly, the mechanism of management of state budget expenditure for S&T activities is implemented in the context that financial sources for S&T activities are very diverse; Third, the organization, distribution and mobilization of financial resources for S&T are determined by the characteristics of the economic mechanism 1.3.3 Contents of the mechanism for managing state budget expenditures for S&T activities 1.3.3.1 Mechanism of management of state budget expenditure for S&T activities according to the budget cycle: Every year, the State organizes the formulation of budget plans for S&T based on two bases: Firstly, based on the needs proposed by S&T organizations, scientists, businesses and other organizations and approved by the Government approved by the management agency in charge of science and technology Second, based on the state budget's ability to balance Basically, the budget cycle for the S&T sector from the state budget is carried out through main steps: Step 1: Proposing a plan and making a budget estimate; Step Allocate budget expenditure estimates; Step Advance or pay and finalize expenses 1.3.3.2 Mechanism of management of state budget expenditure for S&T activities by mode of expenditure Method of actual payment and expenditure according to actual arising: Expenses are allocated according to norms to perform research tasks as planned or as required This method has the advantage of being simple and easy to manage, but has the disadvantage of being heavily administrative and subsidized Method of contracting and purchasing scientific research results in S&T activities: Contract spending is the assignment of financial autonomy to organizations and individuals presiding over S&T tasks in the use of funds already approved by competent agencies approval authority, associated with responsibility for the results of the assigned task The contract payment method includes the payment package to the final product and the partial payment package - Method of purchasing research results: The purchase of scientific research results is a higher development step of the contract payment method This method is implemented when the following conditions are satisfied: (i) S&T research tasks with results of scientific research and technological development that need to be purchased are valuable for socioeconomic development; (ii) There are organizations and individuals committed to applying and using the results of scientific research and technological development; (iii) Organizations and individuals undertaking scientific research and technological development accept the appraisal process of content and funding according to current regulations of competent state agencies, commit to self-mobilizing funding to carry out S&T tasks 1.3.3.3 Mechanism of management of state budget expenditures for S&T activities according to the Fund model: Along with direct expenditures from the state budget for S&T, in many countries, including Vietnam, S&T development funds have also been established to perform S&T tasks The sources of these funds are very diverse, possibly from the state budget, or from enterprises The purpose of the Fund is to invest in science and technology development, investment methods are also very rich, suitable to the characteristics of science and technology activities 1.3.3.4 Financial inspection and supervision mechanism in S&T activities: The financial inspection and supervision mechanism in S&T activities is a collection of methods, forms and tools established to inspect and supervise the mobilization of funds mobilize, distribute and use financial resources for the field of science and technology to ensure the right objectives and ensure efficiency 1.3.4 Principles of state budget expenditure management for S&T activities - Management of state budget expenditure in general and state budget expenditure for S&T activities in particular must ensure the principle of overall fiscal balance - Management of state budget expenditures for S&T activities must ensure the minimum requirements on capital sources for S&T activities and fulfill spending commitments - Management of state budget expenditures for S&T activities must ensure efficiency in resource allocation and promote S&T agencies and organizations to provide high quality S&T products - Management of state budget expenditures for S&T activities must promote the socialization of S&T activities, gradually reducing and eventually eliminating the state of subsidies in S&T activities - Management of state budget expenditures for S&T activities must ensure financial discipline - Management of state budget expenditures for S&T activities must ensure publicity and transparency 1.4 Factors affecting state budget expenditure for S&T activities 1.4.1 Objective factors (1) Socio-economic conditions and capacity of public financial resources: State budget expenditure estimates are made based on mobilized public financial resources, that is, based on actual revenue collection in previous years and revenue growth forecast this year, and also based on socio-economic development tasks (2) Mechanisms, policies and regulations of the State on management of state budget expenditure: In the market economy with state regulation, law has become an indispensable part of State management general and state budget expenditure management in particular The legal system with the role of guiding and creating conditions for economic sectors in society to operate in order, within the legal framework to ensure fairness, safety and efficiency requires a very complete , normative and synchronous 1.4.2 Subjective factors: Management capacity of leaders and professional qualifications of staff in the state budget expenditure management apparatus, organization of state budget expenditure management apparatus as well as professional processes and management technology state budget expenditure management 1.5 International experience on the mechanism of management of state budget expenditures for S&T activities 1.5.1 Mechanism for management of state budget expenditures for public research institutions in OECD countries (1) Appropriation: Funding is a mechanism by which a government or a budgeting agency allocates an annual amount of funding to a research institution unconditionally, not for a project or program and the research institution is free to use the funds as it wishes (2) Project-based budget allocation: The project-based budget allocation mechanism is implemented to meet the public sector's requirements for transparency and accountability in S&T spending State budget spending on scientific research is increasingly directed towards performing tasks on the basis of contracts and output criteria In the long term, the funding mechanism will be gradually reduced, replaced by a contract allocation mechanism with definite term and allocation according to specific research programs 1.5.2 Financing mechanism for public research institutions in Korea: Public research institutions in Korea are divided into categories based on management mechanism and financial mechanism: Government-owned research institutes grants (GRI); National Laboratories; Research institutes funded by local governments; Local laboratories Among the above four types of organizations, GRIs are the most important public research institutes, with the largest scale and areas of activity Therefore, this paper is limited to the scope of research on financial mechanism for GRIs 1.5.3 Financial Mechanisms for Public Research Institutions in China (1) The State orients and develops according to goals with appropriate policies, consistent with economic and innovation policies (2) Mobilizing appropriate resources: In order to mobilize a variety of resources, China has aimed to change not only the innovation component such as research institutes or educational and training institutions, but also strengthen environment for innovation (3) Organization and management of R&D and technology The emergence of new technologies is multidisciplinary in nature 1.5.4 Lessons learned from the study of financial management mechanisms for S&T in some countries First, sources of research funding tend to be more diverse In addition to the state budget, the proportion of sources from cooperation with the business sector, cooperation with foreign countries or from the public-private partnership model is increasing Secondly, the mechanism of budget allocation according to the competitive method is a measure applied by many countries and achieved good results, but there are also disadvantages that need to be overcome Third, in the area of budget spending for S&T, the general trend is to gradually replace the whole method of contracting funding with a partial contract, and the part changes depending on the project or the results of research activities Sub-Conclusion Chapter Chapter has systematized the basic theories on concepts, characteristics and roles of S&T activities; clarify the factors affecting the development of S&T Chapter also presents some theoretical issues on management mechanism, financial management mechanism and state budget expenditure management mechanism for S&T activities The thesis also introduces the experience of financial management mechanism and state budget for S&T activities in some countries around the world and in the region, thereby drawing lessons for Vietnam The new point expressed by the author in this chapter is that he has presented and introduced his own concept of the financial and state budget management mechanism for S&T activities, and pointed out characteristics, principles and contents of the mechanism State budget expenditure management system for S&T activities The thesis has for the first time introduced the criteria for classifying the content of the state budget management mechanism for S&T activities, including: Management mechanism according to the budget process; Management mechanism by mode of expenditure; Management mechanism according to the fund model This classification criterion is also the basis for research in the next parts of the thesis CHAPTER 2: THE CURRENT SITUATION OF THE STATE BUDGET EXPENDITURE MANAGEMENT MECHANISM FOR S&T ACTIVITIES IN VIETNAM 10 2.1 S&T activities and state budget spending on S&T activities in Vietnam 2.1.1 S&T organization and decentralization of S&T activities in Vietnam 2.1.1.1 S&T organizations: According to the Ministry of Science and Technology, by 2020, Vietnam has about 4,100 organizations registered for S&T activities (an increase of nearly times compared to 2014), of which there are 1,900 public organizations and nearly 2,200 organizations non-public There are about 173,000 people involved in research and development 2.1.1.2 Decentralization of S&T tasks: According to the 2013 Law on Science and Technology, S&T tasks using the state budget are classified into levels: national level, ministerial level, provincial level, grassroots level and (special) level 2.1.2 Results of S&T activities in Vietnam: The development of S&T in our country over the past time is reflected in the following activities: Firstly: The national S&T potential is growing Up to now, the country has more than 4,000 S&T organizations, national hi-tech parks, 13 hi-tech agricultural parks, and concentrated information technology zones The number of staff directly doing research has reached about 67,000 people Second: Vietnam's science and technology level has improved markedly Third: S&T activities are not limited to the state sector, but have spread to businesses and the community , towards approaching international practices and standards The fifth is: The training of scientific staff is respected by the State, reflected in many projects and projects on training cadres 2.1.3 State budget expenditure for S&T activities in Vietnam in the past time The period 2016-2020 is a relatively stable period in terms of policies and regimes in the field of science and technology, as well as investment from the state budget for science and technology However, according to the Law on Public Investment (effective from the 2017 budget year), this period marks the handover of autonomy in resource management decentralization from the state budget to science and technology between central and local governments Accordingly, the National Assembly only assigns the total amount of development investment spending from the state budget, not detailing each spending area as before Therefore, from 2017 it is not possible to calculate the total expenditure on development investment for S&T of the whole country As for recurrent expenditures, in the period 2016-2020, the state budget always allocates higher spending on science and technology next year than the previous year, if in 2016 it is 10,471 billion VND, then in 2020 it has increased to 14,042 billion VND from the state budget 60,771 billion VND (Table 2.1), an average increase of 6.9%/year, of which the central budget spends 47,670 billion VND, equaling 78.4%, the local budget spends 13,101 billion VND, equaling 21.6 % Period 2021-2022: Due to the impact of the Covid-19 pandemic, investment resources from the state budget for science and technology in the period of 2021-2022 show that the growth has not corresponded to the growth rate of the total state budget expenditure During this period, the allocation for S&T decreased to the same level as in 2016-2018 and was mainly due to a reduction in recurrent expenditure on S&T at the central level 11 2.1.4 General comment on state budget expenditure for S&T activities in the past time: Over the past 20 years, state budget expenditure for S&T activities has really made great strides, having a strong impact on the development of the S&T career International comparison shows that Vietnam has a lot of potential for developing S&T and innovation capacity, but has not yet been invested at the optimal level It is encouraging that S&T development has contributed to enhancing Vietnam's position in the international arena, Vietnam's ranking on the Global Innovation Index (GII) has been improved In 2022, this index of Vietnam has risen to 48th position out of 132 ranked countries/economies, up 11 places compared to 2016, up 28 places compared to 2012 2.2 Mechanism of management of state budget expenditure for S&T activities in Vietnam 2.2.1 Legal basis for the mechanism of management of state budget expenditures for S&T activities: The legal basis for the mechanism of state budget expenditure management for S&T activities includes a system of legal documents on management of S&T activities and documents on financial regulations and guidelines in allocating the state budget and organizing the implementation of state budget expenditures for S&T activities Up to now, both types of legal documents have been promulgated quite fully and synchronously, specifically: System of Laws in the field of S&T, Legal documents on financial management in the field of S&T 2.2.2 The current status of the general management mechanism for state budget expenditures for S&T activities 2.2.2.1 Mechanism for making and assigning cost estimates ⁃ Budgeting process (including steps), carried out from June to November every year: Step Annually, the State organizes the development of budget estimates, including S&T activities and provides guidance documents for the preparation of the estimates Step The unit using the budget, prepares the state budget expenditure estimate of its organization or unit, that is, determines the amount of funds needed to carry out its S&T activities and sends it to the governing body (Management ministries, local People's Committees) Step The governing bodies review and summarize the estimates of S&T organizations and send them to the ministries assisting the Government in science and technology, investment and finance for synthesis and appraisal Step Ministries assisting the Government in science and technology, investment and finance exchange, discuss and agree on plans and state budget estimates for science and technology for ministries, sectors and localities; submit to the Government and the National Assembly for consideration and decision the state budget expenditure estimates for S&T activities Bases for making budget estimates of S&T tasks: Objectives, requirements, contents and research workload of S&T tasks have been approved by competent authorities; The economic - technical norms are promulgated by functional ministries and branches, the norms serve as a basis for making estimates and the current regimes and policies of the State In case there is no economic - technical norm, it is necessary to explain in detail the basis for making the estimate 12 Mechanism for assigning estimates for the performance of S&T tasks to S&T organizations: After the S&T activities cost estimates are approved by the National Assembly, the governing bodies shall distribute the estimates to S&T organizations, units and agencies the use of the affiliated budget (for localities, the plan for allocating state budget expenditures for S&T activities needs to ensure that it is not lower than the level decided by the National Assembly) 2.2.2.2 Mechanism for performing S&T tasks and payment of funds to organizations and individuals: Payment of state budget funds for S&T activities is made according to each type of expenditure There are three basic types of expenditure: investment expenditure, recurrent expenditure and research expenditure As for the contents of investment expenditure, the payment shall comply with regulations on payment of investment capital; for the contents of recurrent expenditures for S&T organizations shall comply with regulations suitable to each spending content (salary, procurement, ) 2.2.2.3 S&T budget settlement mechanism: The settlement of funds for performing S&T tasks using the state budget shall comply with the provisions of the State Budget Law, the Law on Science and Technology and guiding documents The reality of the past time shows that S&T tasks are often implemented slowly, so the settlement of funds is also slow There is a big difference between the allocated funds and the implementation costs due to the need to carry out procedures for transferring the source to the next year In addition, some S&T institutions still lack financial staff, so the accounting, accounting and settlement work are still confused and error-prone, which must be corrected, thus delaying the progress and completion deadlines finalize and approve the settlement according to regulations 2.2.3 Mechanism of management of state budget expenditures for S&T tasks at all levels 2.2.3.1 State budget expenditure management mechanism for special S&T (level) tasks: Up to now, the first and only special S&T task in Vietnam is the Task "Building the Ministry of National Geography of Vietnam" approved by the Prime Minister approved in 2017 and assigned to Hanoi National University as the lead agency for implementation The task has an implementation period from 2018 to 2022 The task has not yet had an approved total estimate Up to now, the state budget has allocated 70 billion VND to perform the task (in 2018: 10 billion VND; in 2019: 20 billion VND, in 2020: 40 billion VND) The state budget expenditure management mechanism for special S&T tasks is currently a gap in the legal system on financial management for S&T activities in Vietnam 2.2.3.2 Mechanism of state budget expenditure management for national science and technology tasks The financial management mechanism of national-level S&T programs and tasks shall comply with the general mechanism promulgated by the Ministry of Science and Technology or a separate and specific mechanism for each program (if any) General financial mechanism promulgated by the Ministry of Science and Technology: The general financial mechanism for managing S&T tasks is specified in documents regulating the order and procedures for determining national-level S&T tasks using the state budget; regulations on the management of national science and technology tasks; and regulations on the selection and direct assignment of organizations and individuals to perform national science and technology tasks using the state budget - Mechanism for making estimates and allocating state budget for national science 13 and technology programs and tasks: According to the Law on Science and Technology, the estimation and allocation of state budget for science and technology of the following year is carried out on the basis of actual needs of reality practices and results of using the allocated budget; financial agencies are responsible for allocating funds fully, timely and in line with the progress of the S&T plan - The mechanism for reporting, examining, evaluating, checking and accepting results and finalizing the funding for the performance of national science and technology tasks using state budget funds shall comply with the regulations of the Ministry of Science and Technology and the Ministry of Finance In which, ministries, central agencies and localities separately monitor and report on funding for implementation of national science and technology tasks 2.2.3.3 State budget expenditure management mechanism for S&T tasks at ministerial and provincial levels: Basically follow the same steps as the general process and similar to the national tasks 2.2.3.4 State budget expenditure management mechanism for grassroots S&T tasks: Current financial regulations not clearly mention financial management for grassroots S&T tasks, there is no clear legal corridor; most of them are carried out "similarly" to tasks at ministerial and provincial levels 2.2.4 Mechanism of management of state budget expenditures for S&T activities under the method of contract spending 2.2.4.1 Method of contracting for the implementation of S&T tasks: The contract of spending for the performance of S&T tasks is to assign financial autonomy to the organization in charge and in charge of the S&T task in the use of state budget funds assigned by competent authorities contract, associated with responsibility for the results of the assigned tasks in accordance with the objectives and requirements; ensure the principles of openness and transparency 2.2.4.2 Develop, appraise and approve budget estimates for the performance of tasks Estimation of estimates: The organization in charge, the task manager is responsible for correctly and fully calculating the total funding for the performance of the task on the basis of the economic and technical norms, the spending norms according to current regulations and specific explanations on the basis of the current regulations elaboration of cost estimates for expenditures that not have economic and technical norms, expenditure norms Task approval: On the basis of conclusions of the Selection Council, directly assigned tasks, results of appraisal of cost estimates and opinions of independent consultants (if any), the competent authority shall decide to approve the host organization maintenance, individual leader, method of contracting (departure payment to final product, partial payment), total budget and level of contracted funding, duration of the task 2.2.4.3 Payment and settlement of lump-sum funds for performing S&T tasks: In accordance with regulations, after the S&T tasks and funds for task performance have been approved, the task manager is allowed to take the initiative in formulating a plan deploy the contents of the contracted work, in which the right to adjust the spending items, spending contents, spending norms and funding between the parts of the contracted work (ensure within the total amount of the allocated budget) contract), submit it to the head of the lead 14 organization for approval before implementation in order to effectively perform the task, in accordance with the problems arising in the actual implementation of the task 2.2.5 Fund mechanism in management of state budget expenditures for S&T activities 2.2.5.1 Overview of Science and Technology Funds in Vietnam: Managing funds for performing S&T tasks in Vietnam according to the Fund model is no longer a new issue but has been stipulated in legal documents on S&T since a long time ago over 20 years The Law on Science and Technology passed by the National Assembly in 2000 stipulates types of S&T development funds, including: (1) National Science and Technology Development Fund; (2) Science and Technology Development Fund of ministries, provinces and centrally run cities; (3) S&T development fund of enterprises; (4) Science and technology development fund of domestic organizations and individuals; (5) S&T development fund established in Vietnam by overseas Vietnamese, international organizations, foreign organizations and individuals 2.3.5.2 Mechanism for management of state budget expenditures for national science and technology funds National Science and Technology Funds: (1) National Science and Technology Development Fund (Nafoted), established under the provisions of the Law on Science and Technology The Fund's main functions and tasks are: Funding and funding for the implementation of basic research and applied research; funding and funding for unexpected S&T tasks of scientific and practical significance, potential S&T tasks; lending at low or no interest rates to implement the application of results of scientific research and technological development into production and life; loan guarantee for a number of specialized S&T tasks; supporting young scientists to participate in international conferences and seminars; support activities to improve national S&T capacity (2) National Technology Innovation Fund (Natif) The contents of the fund are prescribed in the Law on Technology Transfer (3) National high-tech venture capital fund: According to the provisions of the Law on High Technology, the National High-Tech Venture Fund is a state financial institution to invest capital, provide investment services Consulting for organizations and individuals to form and develop enterprises in application, production of high-tech products and provision of services Mechanism for management of state budget expenditures for national-level S&T funds + Mechanism for estimating charter capital: The main feature of National Science and Technology Funds is that every year, these funds are allocated a charter capital from the State budget to organize their operations This level of capital is specified in the legal documents establishing the fund + Mechanism for allocating annual charter capital: The difference in the financial management mechanism of national science and technology funds is that the state budget adds annual charter capital to these funds, which is included in the budget estimates recurrent expenditures of the state budget of the Ministry of Science and Technology without having to meet the same requirements as for the allocation of recurrent expenditures in the non-business of S&T for the implementation of S&T programs, topics and projects + Mechanism for management and use of charter capital for supporting, financing, lending, guaranteeing and entrusting activities: The management and use of charter capital 15 to carry out support and financing activities support for S&T tasks, activities to enhance S&T potential of national S&T funds are carried out similarly to a national S&T program 2.2.5.3 Mechanism of management of state budget expenditures for science and technology development funds at ministerial and provincial levels: According to the provisions of the Law on Science and Technology, ministries, ministerial-level agencies, government-attached agencies, and provincial-level People's Committees establish S&T development funds to meet their S&T development requirements 2.2.6 Current status of inspection, examination and supervision of state budget expenditures for S&T activities 2.2.6.1 Contents of inspection and supervision - Check and monitor the progress of the project implementation Implementation progress is checked periodically or irregularly Units and individuals are responsible for making reports on the progress of surveying and researching topics The contents of the state budget inspection include: implementation progress, research content, products and use of funds compared with the approved outline and signed contract for implementation of the project According to the regulations, the finance agency only provides funding for the next phase for the project that has made progress reports and has been checked for progress - Check the organization of assessment and acceptance of scientific research topics Evaluation and acceptance of the topic to review and evaluate the results according to the approved registration outline at the level of satisfactory or unsatisfactory, stating the limitations that need to be overcome and perfected of the project, evaluate The ability to apply in practice will be officially accepted, avoiding the loss of capital spent on science and technology activities, ensuring that capital is spent reasonably and effectively 2.2.6.2 Regarding inspection: Inspection activities are usually carried out by state inspection agencies at all levels or specialized inspectors with the main function of inspecting responsibilities in the state management of science and technology; 2.2.6.3 Supervision activities: Supervision activities are usually carried out by agencies of the National Assembly The objective of monitoring is to clarify the advantages, limitations and causes in the preparation, allocation and allocation of state budget expenditure estimates for S&T activities; implementation of state budget expenditure estimates; evaluate the use of budget for S&T; the implementation of the mechanism of autonomy and self-responsibility of S&T organizations; inadequacies in mechanisms, policies, management as well as evaluating the effectiveness of some science and technology topics and projects 2.3 Assessing the current status of the state budget expenditure management mechanism for S&T activities 2.3.1 Achievements 2.3.1.1 The mechanism for estimating S&T tasks has been innovated to meet the requirements of S&T development 2.3.1.2 Flexible mechanism for allocating estimates for state-level tasks According to regulations, the allocation of estimates for S&T tasks has been done through the selection, selection, and ordering of the State This regulation has been specifically guided by the Ministry of Finance in documents on annual state budget administration and management The Government stipulates on investment and financial mechanism for S&T 16 activities as follows: The identification and approval of S&T tasks are carried out regularly and continuously throughout the year on the basis of the approved state budget estimates and other relevant regulations Other funding sources are balanced for the implementation of S&T tasks in the plan year and subsequent years corresponding to the time of implementation of the approved S&T tasks 2.3.1.3 Strengthening the mechanism of contracting the use of funds and reducing expenditure control procedures through the State Treasury Most of the expenditures are made under the contract method Items that are not contracted, such as purchase of raw materials, fuel and materials without economic and technical norms, branches out, and expenses for the purchase of fixed assets According to regulations, the contract of funding is done in the form of contract to the final product 2.3.1.4 Automatic source transfer mechanism for the estimated balance, the balance of advance funding for performing S&C tasks: Up to now, according to new regulations in the State Budget Law, S&T tasks are automatically transferred from sources This is a separate, specific regulation for science and technology 2.3.1.5 Open mechanism in funding advance and advance payment: - According to current regulations on state budget advance for projects in general (development investment and science and technology projects), the level of funding advance up to 30% of the total approved cost estimate 2.3.1.6 Flexibility in the mechanism of financial settlement for the implementation of the project: According to current regulations, the settlement of funds for performing S&T tasks is carried out in two forms: annual budget settlement and final settlement once after taking over the task Depending on the actual situation of performing the task, the funding management agency performing the S&T task shall select the appropriate form of settlement Currently, this content, the Ministry of Finance is coordinating with the Ministry of Science and Technology to concretize in the Circular guiding the allocation of funding for performing S&T tasks 2.3.2 Limitations of the state budget expenditure management mechanism for S&T activities 2.3.2.1 Investment resources for science and technology are still limited, mainly from the state budget However, due to its small scale, the balancing capacity of the state budget does not meet the requirements of the approved S&T tasks Although state budget expenditures have given higher priority to S&T activities because of other fields, by ensuring that the State spends at least 2% of total annual state budget expenditures, due to the low scale of state budget, the In absolute terms, this financial source is also small, only approximately 1.5 billion USD/year Meanwhile, mobilizing resources outside the state budget to invest in S&T in Vietnam is very difficult Of the total social investment for S&T activities in Vietnam, the investment scale from the state budget is small, but still accounts for 70%, the investment of enterprises only accounts for about 30%, ie only about 500 million USD /year As a result, Vietnam's total investment in science and technology in general and per capita in particular is much lower than that of other countries in the region and the world With this situation, it is difficult to create a driving force for the development of science and technology of the country 2.3.2.2 The basis for building state budget expenditure estimates for S&T tasks is still incomplete, and the structure of recurrent expenditures for S&T between the central 17 budget and local budgets is really effective and clear The spending structure is not appropriate (it is estimated that about 20% of the money for S&T is actually invested in the creative activities of researchers, while 80% is in the intermediate and indirect stages) In addition, the process of registration, planning and budgeting is also complicated, research projects that want to be approved this year must have a plan from the previous year Once approved for deployment, many contents are outdated 2.3.2.3 The allocation of state budget for S&T activities is not reasonable, the spending structure is not appropriate 2.3.2.4 There is still overlapping and unclear task of managing S&T tasks at the national level between the Ministry of Science and Technology and the specialized management ministries This situation originates from the reason that the Ministry of Science and Technology is the state management agency for science and technology, but the leading organizations and the leaders of science and technology topics belong to the ministries, central agencies and localities (institutions) research under ministries and universities) This led to the overlapping of responsibilities and powers for a long time from the beginning of 1986 until now 2.3.2.5 The efficiency of using financial resources for S&T activities is still low The results of S&T activities cannot be applied in practice A lot of research topics have been accepted and cost a lot of money, but the application of this topic to put it into practice, in management is still very little There are topics after acceptance, the presentation is finished and left there, the application is almost nonexistent 2.3.2.6 Limitations of inspection and examination Besides the achieved results, the inspection, examination and supervision of state budget expenditure management for S&T activities also has certain limitations, many negative phenomena in S&T activities are difficult to detect, such as: the state of using funds for improper purposes; the status of "contracting", undemocratic in science; there is a situation of abuse of power and "plagiarism", there is a situation where the leader of a topic or project is a civil servant with a position in the management apparatus 2.3.2.7 Limitations of the Fund mechanism Firstly, there is currently no clear definition of the Fund mechanism Second, S&T Funds have not shown clear roles and functions in practice Thirdly, there is a mismatch in the regulations on the Fund between the State Budget Law and the laws in the field of Science and Technology Fourth, there is no regulation on the S&T fund of S&T organizations (research institutes, universities ) and other organizations 2.3.3 The cause of the limitations Firstly, branches and levels at both central and local levels have not really paid attention to the field of science and technology, have not considered the development of science and technology as the top national policy, so they have not focused their wisdom and efforts on leadership directing S&T activities Many policies on S&T development have been slowly institutionalized and have not been seriously implemented Second, there is not a perception that investment in S&T is a development investment, leading to low state financial investment in S&T activities, unreasonable 18 allocation and use of budget for S&T There are no appropriate mechanisms and policies to mobilize non-budget capital sources for the development of science and technology The system of economic policies, especially tax policies, credit policies, and financial policies has not encouraged and forced enterprises, especially state-owned enterprises, to actively apply scientific and technological achievements The investment and competition environment is not favorable and has not created a driving force for the application of science and technology in production and business Third, the economic management mechanism in general and the financial management mechanism, the state budget in particular, in the market mechanism is still confused and inadequate, reflected in the fact that the organization and distribution of forces is still scattered, the management of research programs and projects is still scattered and heavily administrative, has not linked the research program with the functions and responsibilities of the research institution, has not promoted the sense of responsibility and promoted the initiative of the establishment; lack of combination between socio-economic program and science and technology program Many scientific agencies have not linked science with production, and have not been proactive in applying scientific and technological advances to life The legal system on management of science and technology, financial management, and state budget for science and technology is still incomplete, there are overlaps and overlaps, but it has not been detected and adjusted in time Sub-conclusion of Chapter Chapter has assessed the state of investment from the state budget for S&T and the mechanisms for managing state budget expenditures for S&T tasks in Vietnam In which, the concepts of S&T activities have been clarified, and S&T tasks are divided into special, national, ministerial/provincial and grassroots levels In addition, the law on science and technology allows the establishment of science and technology funds to manage state budget expenditures for science and technology activities Currently, the assignment of Science and Technology Funds at all levels to manage S&T tasks and funds has been implemented by many agencies, organizations and localities Based on the classification of S&T tasks, the management model prescribed in legal documents, associated with the subjects and scope of state budget management in science and technology, Chapter has studied the current status of the state budget expenditure management mechanism for activities S&T activities according to the budget process, and at the same time, deeply study the mechanism of state budget expenditure management for S&T activities in Vietnam into groups, including: State budget expenditure management mechanism for S&T tasks at all levels; Mechanism of contract spending to perform S&T tasks; Mechanism for managing state budget expenditures for S&T tasks through S&T Funds, including National Science and Technology Funds and S&T funds belonging to Ministries, ministerial-level agencies, Governmental agencies, National Universities and other institutions local The contribution of the thesis in chapter is to study and analyze the current status of the state budget expenditure management mechanism for S&T activities in both directions, both according to the budget process (legal basis; preparation and allocation of projects) accounting; making estimates; making final settlements; checking and inspecting), both according to the method of organizing research activities (spending for the performance of S&T tasks; spending according to the method of lump sum spending and spending according to the mechanism of the S&T Fund) Based on the analysis of the current 19 situation and orientation of the Party and the State, the thesis has gone into depth, evaluated each of the above mechanisms, pointed out the advantages, as well as the shortcomings, limitations and causes of these mechanisms this regime From there, as a basis for the research and suggestions for perfect solutions in the next chapter CHAPTER 3: SOLUTIONS TO IMPROVE THE STATE BUDGET EXPENDITURE MANAGEMENT MECHANISM FOR S&T ACTIVITIES IN VIETNAM 3.1 Viewpoint to improve the mechanism of management of state budget expenditures for S&T activities 3.1.1 Policy of the Party and State on the development of S&T activities: Science and technology development has received special attention from the Party, National Assembly and State The views and policies on S&T development are reflected in the document systems at the highest levels of the Socialist Republic of Vietnam Continuing the policy of science and technology development through the periods, the Resolution of the 13th Party Congress (2021) [5] affirmed that "consistently implementing the policy of science and technology is the top national policy and the key driving force for development develop modern productive forces,…” 20