Chương II Nghị định 60/2021/NĐ-CP về cơ chế tự chủ tài chính của đơn vị sự nghiệp công lập: Quy định cụ thể về cơ chế tự chủ tài chính của đơn vị sự nghiệp công

Chapter II

SPECIFIC PROVISIONS ON FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS

Section 1. FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS SELF-COVERING BOTH RECURRENT AND INVESTMENT EXPENSES (GROUP-1 UNITS) AND PUBLIC ADMINISTRATIVE UNITS SELF-COVERING RECURRENT INVESTMENT EXPENSES (GROUP-2 UNITS)

Article 11. Financial sources

1. Funding from state budget

a) Funding for provision of public administrative services which are included in the list of public administrative services funded by state budget, including funding for public administrative services provided in the form of order placement or bidding as prescribed;

b) Funding for performance of science and technology tasks when being selected or assigned by competent authorities in accordance with regulations of law on science and technology;

c) Funding for covering recurrent expenses incurred from performance of tasks assigned by the Government (if any), including: Funding for implementation of national target programs; reciprocal capital for implementation of foreign-invested projects allocated under decisions issued by competent authorities; funding for performance of tasks assigned by competent authorities; funding allocated by competent authorities to public administrative units for provision of public administrative services funded by state budget in case economic-technical norms and unit prices are not available for placing orders;

d) Investment and development funding for infrastructural development investment projects which have been approved by competent authorities in accordance with regulations of the Law on public investment (if any). With regard to group-1 units, the Government shall consider allocating funding for in-progress infrastructural development investment projects under decisions issued by competent authorities or for new infrastructural development investment projects which are included in the medium-term public investment plan approved by competent authorities. Public administrative units shall manage and use investment and development funding according to the provisions of Article 7 hereof.

2. Revenues earned from administrative operations

a) Revenues from provision of public administrative services;

b) Revenues from business operations; joint-venture, cooperation or association activities which are performed in accordance with regulations of law and under specific schemes approved by competent authorities in conformity with the functions and tasks of the public administrative unit;

c) Revenues from leasing of public assets: The unit must fully comply with regulations of the law on management and use of public assets and must have the scheme for leasing of public assets approved by competent authorities.

3. Collected fees which are retained by the public administrative unit for covering its expenses in accordance with regulations of the Law on fees and charges.

4. Borrowed capital; aids and grants as prescribed by law.

5. Other sources of revenues as prescribed by law (if any).

Article 12. Recurrent expenses covered by funding which the autonomy to use is delegated to public administrative units

A public administrative unit is entitled to take its own initiative in taking advantage of financial sources which it is granted the autonomy to use as prescribed in Point a Clause 1, Clause 2 and Clause 3 (revenues retained for covering recurrent expenses incurred from fee collection) and Clause 5 Article 11 hereof for covering its recurrent expenses. Some expenses shall be specified as follows:

1. Salaries and salary-based contributions

a) While the Government's regulations on salary policies under the Resolution No. 27-NQ/TW dated May 21, 2018 of the seventh plenum of the 12^th Central Executive Committee on reform of salary policies for officials, public employees, armed forces and workers of enterprises (hereinafter referred to as “Resolution No. 27-NQ/TW”) are not available, the public administrative unit shall pay scale-, rank- or position-based salaries, salary-based contributions and allowances as stipulated in Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any). Whenever the Government makes any changes to salary policies, the public administrative unit shall use its own revenues for covering the increased salary expenses; no additional funding shall be granted by state budget.

b) When the Government’s regulations on salary policies under the Resolution No. 27-NQ/TW come into force, the public administrative unit shall comply with the followings:

- For a group-1 unit: Based on its financial status, the unit shall exercise the autonomy to pay salary expenses according to business results as an enterprise (wholly state-owned rank-I single-member limited liability company); decide the salary amounts paid to its public employees and workers; and pay wages under employment contracts (if any).

- For a group-2 unit: Based on its financial status, the unit shall exercise the autonomy to pay salary expenses according to business results as an enterprise (wholly state-owned rank-II single-member limited liability company); decide the salary amounts paid to its public employees and workers; and pay wages under employment contracts (if any).

Group-1 and group-2 units shall determine their planned salary fund, realized salary fund and allocate salary fund according to guidelines adopted by the Ministry of Labor, War Invalids and Social Affairs; have salary plans approved by competent authorities as the basis for developing their annual planned budget for paying salaries to their public employees and workers provided that interests of workers and funds for development of administrative operations are balanced. If the positive difference between revenues and expenses is smaller than that specified in the approved plan to exercise financial autonomy, the unit shall take initiative to reduce the realized salary fund by a percentage in proportion to the decrease in the positive difference between revenues and expenses provided that salaries paid to public employees and workers shall not be lower than those stipulated in Government’s regulations on salaries applicable to public administrative units.

Based on the realized salary fund, the public administrative unit is allowed to establish a provision for inclusion in the succeeding year’s salary fund. The annual provision is decided by the unit and must not exceed 17% of the realized salary fund. The unit must ensure that its difference between revenues and expenses is positive after making the provision. Otherwise, the provision must be smaller than 17%. If the unit does not use up the previous year’s salary fund provision within 06 months from the end of the fiscal year, the provision shall be reversed.

Whenever the Government makes any changes to salary policies, the public administrative unit shall use its own revenues for covering the increased salary expenses; no additional funding shall be granted by state budget. Payment of salaries to employees of the unit shall be made according to the principle that quantity, quality and efficiency in task performance must be taken into consideration in accordance with regulations of law and its regulations on internal expenses.

2. Expenses on employment of experts, scientists or talents for performing tasks of authorities and units. Based on actual demands, actual market prices and its financial capacity, the unit is allowed to decide specific spending limits corresponding to assigned tasks and include them in its regulations on internal expenses.

3. Operating and managerial expenses

a) Regarding expenses specified in economic-technical norms and of which spending limits are stipulated by competent authorities, based on actual demands, market prices actually applied in the province where the public administrative unit is located, and its financial capacity, the unit shall decide spending levels according to its regulations on internal expenses and take full responsibility for ensuring their service quality as prescribed by the Government;

b) Regarding expenses which are not yet stipulated by competent authorities, based on actual conditions, the public administrative unit shall develop spending levels in conformity with its financial sources and specify them in its regulations on internal expenses. Head of the public administrative unit shall assume responsibility for his decision.

4. Expenses on performance of fee collection tasks as prescribed by the Law on fees and charges; expenses on service provision.

5. Provisions made according to regulations on provisions made by enterprises, unless special funds for risk management must be established in accordance with specialized laws (if any).

6. Payment of loan interests as prescribed by law (if any).

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

Article 13. Recurrent expenses covered by funding which the autonomy to use is not delegated to public administrative units, and expenses on performance of science and technology tasks

1. Recurrent expenses covered by funding which the autonomy to use is not delegated to the public administrative unit include:

a) Expenses on performance of tasks assigned by the Government as prescribed in Point c Clause 1 Article 11 hereof in accordance with regulations of the Law on State Budget and relevant laws on each funding source;

b) Expenses on procurement of assets and major repairs serving fee collection which are covered by retained amounts of collected fees (retained amounts used for procurement and major repair of assets, machinery and equipment serving the fee collection);

c) Expenses covered by borrowed capital, aids and grants as prescribed by law.

2. Expenses on performance of science and technology tasks: If a public administrative unit is selected or directly assigned by a competent authority to perform science and technology tasks, it shall manage and use funding in accordance with regulations of allocation of predetermined funding for performance of science and technology tasks funded by state budget.

3. Public administrative units shall strictly comply with Government’s regulations on allowances for overseas business trips, reception of foreign guests and international seminars organized in Vietnam.

Article 14. Distribution of incomes generated within a year

1. At the end of the fiscal year, after posting all revenues and recurrent expenses covered by funding which the autonomy to use is delegated to the public administrative unit into accounting records, making depreciations of fixed assets, paying taxes and other amounts payable to state budget as prescribed, the positive difference between revenues and expenses (if any) shall be used in the following order:

a) Contribution to the fund for development of administrative operations: at least 25%;

b) Contribution to the fund for supplementation of income in case the public administrative unit pays salaries according to Point a Clause 1 Article 12 hereof: a group-1 unit shall decide the contribution amount (which is not restricted); a group-2 unit shall make the contribution amount which is restricted to twice less than the sum of scale-, rank- or position-based salary fund, salary-based contributions and allowances as stipulated by the Government. In case the public administrative unit pays salaries according to Point b Clause 1 Article 12 hereof, no contribution is made to the fund for supplementation of income;

c) Contribution to reward fund and welfare fund: Total amounts contributed to both funds shall not exceed the sum of 3-month salaries or wages paid by the unit within a year;

d) Contributions to other funds as prescribed by specialized laws;

dd) The remaining positive difference between revenues and expenses (if any), after making contributions to all funds as prescribed, shall be paid to the fund for development of administrative operations.

2. Use of funds

a) The fund for development of administrative operations shall be used for investing in construction, upgrade and repair of facilities, purchasing working equipment and instruments; improving capability of administrative operations; covering expenses on application of technological and scientific advances; organizing professional training for public employees and workers; purchasing copyrighted works and programs; making contribution to joint venture, cooperation or association with domestic and foreign organizations or individuals to perform public administrative operations according to the assigned functions and tasks, and covering other expenses (if any);

b) The fund for supplementation of income shall be used for supplementing incomes of public employees and workers within a year and making provisions for supplementing incomes of public employees and workers in the following year in case their incomes are reduced. Spending on supplementation of incomes of public employees and workers of a public administrative unit shall stick to the principle that quantity, quality and efficiency in task performance must be taken into consideration;

c) The reward fund shall be used for offering year-end bonus, periodic and unplanned rewards to collectives or individuals inside and outside of the public administrative unit based on their task performance results and contribution to the unit. Specific reward amounts shall be decided by the head of the public administrative unit and specified in its regulations on internal expenses;

d) The welfare fund shall be used for building and repairing welfare facilities of the unit; making contribution to construction of common welfare facilities of the branch or with other units under contracts; spending on operations intended for welfare of public employees and workers in the unit; providing subsidies for public employees or workers faced with unexpected difficulty, including those who have retired, or those faced with work incapacity; further spending on severance pays to public employees and workers in case of downsizing; spending on social and charity activities;

dd) Other funds shall be used in accordance with regulations of specialized laws.

3. When using the fund for development of administrative operations for investment, procurement or contribution to joint venture, cooperation or association, the public administrative unit must strictly and fully comply with regulations of the Law on public investment, the Law on management and use of public assets, the Law on bidding and other relevant laws.

4. Specific contribution amounts made to the funds specified in Clause 1 of this Article and procedures for use of such funds shall be decided by heads of public administrative units in accordance with their regulations on internal expenses and relevant laws, and must be publicly announced within their units.

Section 2. FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS SELF-COVERING PART OF THEIR RECURRENT EXPENSES (GROUP-3 UNITS)

Article 15. Financial sources

1. Funding from state budget

a) Funding for provision of public administrative services which are included in the list of public administrative services funded by state budget, including funding for public administrative services provided in the form of order placement or bidding as prescribed;

b) Funding for performance of science and technology tasks when being selected or assigned by competent authorities in accordance with regulations of law on science and technology;

c) Funding for covering recurrent expenses which remain unpaid after the unit has used revenues earned from administrative operations and retained revenues for covering expenses on performance of tasks and provision of public administrative services included in the list of public administrative services covered by state budget;

d) Funding for covering recurrent expenses incurred from performance of tasks assigned by the Government (if any), including: Funding for implementation of national target programs; reciprocal capital for implementation of foreign-invested projects allocated under decisions issued by competent authorities; funding for performance of tasks assigned by competent authorities; funding allocated by competent authorities to public administrative units for provision of public administrative services funded by state budget in case economic-technical norms and unit prices are not available for placing orders; funding for downsizing; funding for provision of training courses for officials and public employees under approved schemes;

dd) Investment and development funding for infrastructural development investment projects which have been approved by competent authorities in accordance with regulations of the Law on public investment.

2. Revenues earned from administrative operations

a) Revenues from provision of public administrative services;

b) Revenues from business operations; joint-venture, cooperation or association activities which are performed in accordance with regulations of law and under specific schemes approved by competent authorities in conformity with the functions and tasks of the public administrative unit;

c) Revenues from leasing of public assets: The unit must fully comply with regulations of the law on management and use of public assets and must have the scheme for leasing of public assets approved by competent authorities.

3. Collected fees which are retained by the public administrative unit for covering its expenses in accordance with regulations of the Law on fees and charges.

4. Borrowed capital; aids and grants as prescribed by law.

5. Other sources of revenues as prescribed by law (if any).

Article 16. Recurrent expenses covered by funding which the autonomy to use is delegated to public administrative units

Based on assigned tasks and financial sources specified in Point a and Point c Clause 1, Clause 2, Clause 3 (revenues retained for covering recurrent expenses incurred from fee collection) and Clause 5 Article 15 hereof, the public administrative unit is entitled to decide the following expenses:

1. Salaries and salary-based contributions

a) While the Government's regulations on salary policies under the Resolution No. 27-NQ/TW are not available, the public administrative unit shall pay salaries according to the statutory pay rate, scale-, rank- or position-based salary coefficients, salary-based contributions and allowances as stipulated in Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any).

When the Government’s regulations on salary policies under the Resolution No. 27-NQ/TW come into force, the public administrative unit shall pay position- or title-based salaries and salary-based contributions according to Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any).

b) Funding for salary reform

Whenever the Government makes any changes to salary policies, the public administrative unit shall use at least 40% of its revenues retained as prescribed (particularly, a public administrative unit operating in the field of healthcare - population shall be allowed to use at least 35% of its retained revenues after deducting all costs constituting its service prices), save 10% of increased funding for recurrent expenses annually allocated from state budget and arrange funding allocated according state budget estimates for ensuring funding for salary reform. Additional funding derived from state budget shall be allocated after the unit has used up its fund for supplementation of incomes and funding for salary reform.

c) Payment of rewards: The unit shall comply with Government’s regulations on salary policies under the Resolution No. 27-NQ/TW.

2. Expenses on employment of experts, scientists or talents for performing tasks of authorities and units. Based on actual demands, actual market prices, allocated state budget estimates and its financial capacity, the unit is allowed to decide specific spending limits corresponding to assigned tasks and include them in its regulations on internal expenses.

3. Operating and managerial expenses

a) A public administrative unit that self-covers from 70% to less than 100% of recurrent expenses

With regard to expenses of which spending limits are stipulated by competent authorities, based on actual demands, actual market prices and its financial capacity, the unit shall be allowed to decide the higher amounts (in case such expenses are covered by revenues from administrative operations) or the same or lower amounts of expenses compared with the spending limits announced by competent authorities and specify them in its regulations on internal expenses provided quality of its services must be ensured according to the Government's regulations.

Regarding expenses which are not yet stipulated by competent authorities, based on actual conditions, the public administrative unit shall develop spending levels in conformity with its financial sources and specify them in its regulations on internal expenses. The head of the public administrative unit shall assume responsibility for his decision.

b) A public administrative unit that self-covers from 30% to less than 70% of recurrent expenses; a public administrative unit that self-covers from 10% to less than 30% of recurrent expenses

Based on assigned tasks and financial sources, the public administrative unit shall decide their operating and managerial expenses which shall be restricted to less than the corresponding spending limits announced by competent authorities.

Regarding expenses which are not yet stipulated by competent authorities, based on actual conditions, the public administrative unit shall develop spending levels in conformity with its financial sources and specify them in its regulations on internal expenses. The head of the public administrative unit shall assume responsibility for his decision.

4. Expenses on performance of fee collection tasks as prescribed by the Law on fees and charges; expenses on service provision.

5. Provisions for business, joint venture, cooperation or association activities and other services which are made according to regulations on provisions made by enterprises, unless special funds for risk management must be established in accordance with specialized laws (if any).

6. Payment of loan interests as prescribed by law (if any).

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

Article 17. Recurrent expenses covered by funding which the autonomy to use is not delegated to public administrative units, and expenses on performance of science and technology tasks

Based on the financial sources specified in Point b and Point d Clause 1, Clause 3 (amounts retained for covering non-recurrent expenses), Clause 4 Article 15 hereof, the public administrative unit shall comply with Article 13 hereof.

Article 18. Distribution of incomes generated within a year

At the end of the fiscal year, after posting all revenues and recurrent expenses covered by funding which the autonomy to use is delegated to the public administrative unit into accounting records, making depreciations of fixed assets, making contribution to the fund for salary reform as prescribed in Point b Clause 1 Article 16 hereof, paying taxes and other amounts payable to state budget as prescribed, the positive difference between revenues and recurrent expenses (if any) shall be used in the following order:

1. Contribution to the fund for development of administrative operations

a) A public administrative unit that self-covers from 70% to less than 100% of recurrent expenses: at least 20%;

b) A public administrative unit that self-covers from 30% to less than 70% of recurrent expenses: at least 15%;

c) A public administrative unit that self-covers from 10% to less than 30% of recurrent expenses: at least 10%.

2. Contribution to the fund for supplementation of income and payment of increased income

a) While the Government's regulations on salary policies under the Resolution No. 27-NQ/TW are not available, the contribution to the fund for supplementation of income is restricted to twice less than the sum of scale-, rank- or position-based salary fund, salary-based contributions and allowances as stipulated by the Government.

b) When the Government’s regulations on salary policies under the Resolution No. 27-NQ/TW come into force, the public administrative unit shall comply with the followings:

- A public administrative unit that self-covers from 70% to less than 100% of recurrent expenses shall be allowed to make payment of increased income which shall not exceed 0,8 times the fund for minimum wages of its public employees and workers;

- A public administrative unit that self-covers from 30% to less than 70% of recurrent expenses shall be allowed to make payment of increased income which shall not exceed 0,5 times the fund for minimum wages of its public employees and workers;

- A public administrative unit that self-covers from 10% to less than 30% of recurrent expenses shall be allowed to make payment of increased income which shall not exceed 0,3 times the fund for minimum wages of its public employees and workers.

3. Contribution to reward fund and welfare fund:

Contribution amounts to both funds are as follows:

a) A public administrative unit that self-covers from 70% to less than 100% of recurrent expenses: total contribution amounts shall not exceed the sum of 2,5-month salaries or wages paid by the unit within a year;

b) A public administrative unit that self-covers from 30% to less than 70% of recurrent expenses: total contribution amounts shall not exceed the sum of 2-month salaries or wages paid by the unit within a year;

c) A public administrative unit that self-covers from 10% to less than 30% of recurrent expenses: total contribution amounts shall not exceed the sum of 1,5-month salaries or wages paid by the unit within a year.

4. Contributions to other funds as prescribed by specialized laws.

5. The remaining positive difference between revenues and expenses (if any) after all funds have been established in accordance with regulations shall be added to the fund for development of administrative operations.

6. The use of such funds shall comply with regulations in Clause 2 and Clause 3 Article 14 hereof. Specific contribution amounts and procedures for use of the funds specified in this Article shall be decided by the head of public administrative unit in accordance with their regulations on internal expenses and relevant laws, and must be publicly announced within the unit.

Section 3. FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS OF WHICH RECURRENT EXPENSES ARE COVERED BY STATE BUDGET (GROUP-4 UNIT)

Article 19. Financial sources

1. Funding from state budget, including:

a) Funding for covering recurrent expenses based on the tasks assigned by the Government, the number of employees and limits on allocated budgets approved by competent authorities;

b) Funding for performance of science and technology tasks when being selected or assigned by competent authorities in accordance with regulations of law on science and technology;

c) Funding for performance of tasks assigned by the Government as prescribed in Point d Clause 1 Article 15 hereof (if any);

d) Investment and development funding for infrastructural development investment projects which have been approved by competent authorities in accordance with regulations of the Law on public investment.

2. Revenues earned from administrative operations in conformity with functions and tasks of the public administrative unit (if any).

3. Aids and grants as prescribed by law.

4. Other sources of revenues as prescribed by law (if any).

Article 20. Recurrent expenses covered by funding which the autonomy to use is delegated to public administrative units

Based on assigned tasks and financial sources specified in Point a Clause 1, Clause 2 and Clause 4 Article 19 hereof, the public administrative unit shall exercise the autonomy to decide the following expenses:

1. Salaries and salary-based contributions

a) While the Government's regulations on salary policies under the Resolution No. 27-NQ/TW are not available, the public administrative unit shall pay salaries according to the statutory pay rate, scale-, rank- or position-based salary coefficients, salary-based contributions and allowances as stipulated in Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any).

When the Government’s regulations on salary policies under the Resolution No. 27-NQ/TW come into force, the public administrative unit shall pay position- or title-based salaries and salary-based contributions according to Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any).

b) Funding for salary reform

Whenever the Government makes any changes to salary policies, the public administrative unit shall save 10% of increased funding for recurrent expenses annually allocated from state budget and arrange funding allocated according state budget estimates for implementing policies on salary reform. Additional funding derived from state budget shall be allocated after the unit has used up its funding for salary reform.

c) Payment of rewards: The unit shall comply with Government’s regulations on salary policies under the Resolution No. 27-NQ/TW.

2. Expenses on employment of experts, scientists or talents for performing tasks of authorities and units. Specific spending limits shall comply with the Government’s general regulations on salaries and wages.

3. Operating and managerial expenses

Based on assigned tasks and financial sources, the public administrative unit shall decide their operating and managerial expenses which shall be restricted to less than the corresponding spending limits announced by competent authorities.

4. Other expenses as prescribed by law (if any).

Article 21. Recurrent expenses covered by funding which the autonomy to use is not delegated to public administrative units, and expenses on performance of science and technology tasks

Based on the financial sources specified in Point b and Point c Clause 1, Clause 3 Article 19 hereof, the public administrative unit shall comply with Article 13 hereof.

Article 22. Distribution of incomes generated within a year

1. At the end of the fiscal year, after posting all revenues and recurrent expenses covered by funding which the autonomy to use is delegated to the public administrative unit into accounting records, making depreciations of fixed assets, making contribution to the fund for salary reform as prescribed in Point b Clause 1 Article 20 hereof, paying taxes and other amounts payable to state budget as prescribed, the positive difference between revenues and recurrent expenses (if any) shall be considered as the saved amounts of funding for recurrent expenses.

2. The public administrative unit shall use the saved amounts of funding for recurrent expenses in the following order:

a) Supplementation of incomes of public employees and workers: The public administrative unit shall be allowed to make payment of increased income which shall not exceed 0,3 times the fund for minimum wages of its public employees and workers according to the principle that efficiency in task performance of each person must be taken into consideration;

b) Payment of rewards and welfare: Payment of periodic or unplanned rewards to collectives or individuals inside and outside of the public administrative unit based on their task performance results and contribution to the unit; spending on operations intended for welfare of public employees and workers in the unit; providing subsidies for public employees or workers faced with unexpected difficulty, including those who have retired, or those faced with work incapacity; further spending on severance pays to public employees and workers in case of downsizing;

c) When the ability to save funding is unstable, the public administrative unit may make provision for stabilizing incomes of public employees and workers.

At the end of a year, the remaining saved amounts of funding shall be carried forward to the following year.

3. The head of the pubic administrative unit shall decide the plan to use the aforesaid saved amounts of funding according to its regulations on internal expenses and publish the plan within the unit.

Section 4. AUTONOMY TO CONDUCT FINANCIAL, JOINT VENTURE, COOPERATION AND ASSOCIATION TRANSACTIONS

Article 23. Opening trading accounts

1. Each public administrative unit is allowed to open an account at a commercial bank to receive revenues generated from administrative operations, business and service provision.

2. Group-3 and group-4 units shall open special purpose credit accounts at commercial banks to receive revenues generated from healthcare services, preventive medical services and tuitions at prices stipulated by competent authorities; periodically transfer received revenues to their deposit accounts opened at State Treasury for management as prescribed.

3. The public administrative unit shall open an account at the State Treasury for managing finances derived from state budget as prescribed by the Law on State Budget, including: funding allocated by state budget, fees collected according to the Law on fees and charges, and other state budget revenues (if any).

4. Funds established according to regulations herein may deposit money at commercial banks for management.

Article 24. Capital mobilization and credit loans

1. General rules

a) When applying for loans or mobilizing capital for investing in or procuring assets, the public administrative unit must have the capital borrowing or mobilization plan and repay borrowed capitals; assume legal responsibility for efficiency in capital borrowing or mobilization and in use of borrowed or mobilized capital;

b) The public administrative unit shall not be allowed to use public assets as collateral for loans as prescribed in Clause 5 Article 54 of the Law on management and use of public assets;

c) Projects funded by borrowed or mobilized capital must be implemented in accordance with regulations of law, widely published and comply with the unit’s democracy regulations.

2. Group-1 and group-2 units operating in the field of healthcare - population shall be allowed to get loans from credit institutions to invest in or build facilities in accordance with regulations of the Law on Public Investment; get the Government’s concessional credit loans or interest support for investment projects funded by loans granted by credit institutions in accordance with regulations of law (if any). Procedures and authority to approve the borrowing plan shall comply with regulations of the Law on public investment.

3. Group-1, group-2 and group-3 units (units self-covering at least 70% of recurrent expenses) providing services shall be allowed to get loans from credit institutions and mobilize capital from their public employees and workers to invest in expansion, improvement and repair of their existing facilities; buy additional equipment to improve their service quality and increase the scale of their administrative operations and provide services in conformity with their functions and tasks, and shall themselves take responsibility to repay debts in accordance with regulations of law. Mobilization of capital from public employees and workers of a unit must be made under contracts in accordance with regulations of the Civil Code.

4. Public administrative units shall submit their plans for capital borrowing or mobilization and debt repayment to their superior agencies for approval. If a unit has established a management board, school’s council or university’s council, its plans for capital borrowing or mobilization and debt repayment must be approved by such board or council.

Article 25. Autonomy to perform joint venture, cooperation and association activities

1. Each public administrative unit shall exercise the autonomy to enter into joint venture, cooperation or association with other entities to provide services meeting social needs. The use of public assets for performing joint venture, cooperation or association activities must comply with the provisions of Clause 2 Article 55 of the Law on management and use of public assets and in the cases specified in Clause 1 Article 58 of the Law on management and use of public assets.

2. Public administrative units shall develop joint venture, cooperation or association plans and submit them to Ministers or heads of central agencies (if the unit is managed by central agency) for approval after obtaining written opinions from the Ministry of Finance; Chairperson of provincial People’s Committees (if the unit is managed by a local agency) for approval after obtaining opinions from Standing Committees of People's Councils of the same level, in which the joint venture, cooperation or association form (whether a new juridical person is established or not), and the plan for ensuring financial and personnel sources for their activities and those of the joint venture, cooperation or association establishments. If a unit has established a management board, school’s council or university’s council, the joint venture, cooperation or association plan must be submitted to these board or council for approval before it is submitted to competent authorities for approval.

3. This Decree does not provide regulations on the use of trademark, license or copyrights for performing joint venture, cooperation or association activities in case a new juridical person is established. In case joint venture, cooperation or association activities are performed in the form of a new juridical person, the public administrative unit shall comply with regulations of the Law on enterprises, the Law on management and use of public assets, the Law on investment, the Law on intellectual property and other relevant laws.

4. Incomes generated from joint venture, cooperation or association activities shall be distributed under terms and conditions of the joint venture, cooperation or association contract. To be specific:

a) In case joint venture, cooperation or association activities are performed without establishing a new juridical person: The public administrative unit shall include all incomes generated from joint venture, cooperation or association activities in the financial sources of the unit that performs such joint venture, cooperation or association activities under the joint venture, cooperation or association plan approved by a competent authority;

b) In case joint venture, cooperation or association activities are performed in the form of establishing a new juridical person: the received amounts of incomes generated from joint venture, cooperation or association activities which remain after fully paying loan interests and costs of leased assets which are contributed to the joint venture, cooperation or association (if any) shall be managed and used according to the joint venture, cooperation or association plan approved by a competent authority.

5. In case of use of trademark, license or copyrights for performing joint venture, cooperation or association activities and in other special cases, the public administrative unit shall comply with regulations of the Law on management and use of public assets, the Law on intellectual property and other relevant laws. When determining the value of trademark which is contributed to the joint venture, cooperation or association according to Vietnam’s valuation standards, some financial criteria employed by the public administrative unit in the valuation process are determined as follows:

a) Incomes of the public administrative unit shall be determined on the basis of earnings before interest after taxes plus depreciation costs;

b) Cost of equity of the public administrative unit shall be determined according to the interest rate of government bonds of 10-year term. In case of unavailability of government bonds of 10-year term, interest rate of government bonds of the longest term available at the valuation date shall be employed.

c) Values of contributed assets in income approach shall be determined according to their book values.

6. The borrowing or mobilization of capital for performing joint venture, cooperation or association activities in the form of public-private partnerships shall comply with regulations of the Law on investment in form of public-private partnerships.