The thesis aims to provide scientific arguments for competence state agencies to amend, supplement and complete the management of state budget investments for science and technology development funds in Vietnam by raising the quality and effectiveness of these funds to promote research activities and contribute to social-economic development. The thesis also serves as precious reference materials for research institutes and universities for their research and training activities.
Trang 1CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT
LE VAN DUC
MANAGEMENT OF STATE BUDGET INVESTING
IN SCIENCE AND TECHNOLOGY
DEVELOPMENT FUNDS IN VIETNAM
Major: Economic Management Code: 9 31 01 10
SUMMARY OF DOCTORAL THESIS
Hanoi – 2019
Trang 2The thesis is accomplished in: Central Institute for Economic
Management
Scientific supervisors: 1 A/Prof.Dr Le Xuan Ba
2 Dr Nguyen Ngoc Song
Reviewer 1: A/Prof.Dr Tran Quoc Toan
Reviewer 2: A/Prof.Dr Nguyen Trong Co
Reviewer 3: Dr Hoang Xuan Long
(Specify full names, academic titles)
The thesis will be defended at Thesis Evaluation Committee at Institute level to be held in the Central Institute for Economic Management at (time)
Access to the thesis is available at:
- Library of Central Institute for Economic Management
- Vietnam National Library, Hanoi
Trang 3INTRODUCTION
1 The urgency of the thesis
In Vietnam, the Science and Technology Development funds was established under the Law on Science and Technology Those funds using state budget in Vietnam include National fund for Science and Technology Development; science and technology development funds
of ministries, ministerial-level agencies, governmental agencies, centrally-run provinces and cities level In general, forms of sponsors and investments from state budget for the operations of science and technology funds are are carried out in accordance with the law on organization and operation of non-state budget financial institutions These funds are established to sponsor and provide funds for basic and applied research; sponsor and provide funds for urgent scientific and technological tasks with great scientific and practical significance or potential scientific and technological tasks; provide low-interest or non-interest loans for the application of scientific research and technological development in production and life; provide loan security for some specialized scientific and technological tasks; support young scientists to participate in international conferences and seminars; support activities aimed at raising national scientific and technological capacities However, implementation process has revealed some problems that require futher improvement and supplement Therefore, the research
titled “State budget management investing in Science and
Technology Development Funds in Vietnam” is of both theoretical
and practical significance amid our country’s current context
2 Research objectives and significance of the thesis
2 1 Research objectives
Trang 4The thesis aims to provide scientific arguments for competence state agencies to amend, supplement and complete the management of state budget investments for science and technology development funds
in Vietnam by raising the quality and effectiveness of these funds to promote research activities and contribute to social-economic development The thesis also serves as precious reference materials for research institutes and universities for their research and training activities
2 2 Research significance
- Theoretical significance: the thesis builds up and develops
theories on state budget management investing in science and technology development funds and its application to Vietnam’s practical conditions
- Practical significance:the thesis helps to strengthen and
enhance the efficiency and effectiveness of state budget management investing in science and technology development funds in Vietnam; contributing to completing legal framework and administration mechanism of science and technology in Vietnam
3 Structure of the thesis
In addition to the Introduction, Conclusion, References and Appendix, the thesis consists of 4 chapters as follows:
Chapter 1: Overview of research on state budget management investing in science and technology development funds
Chapter 2: Theoretical basis and international experience of state budget management investing in science and technology development funds
Trang 5Chapter 3: Current situation of state budget management investing in science and technology development funds in Vietnam Chapter 4: Solutions to complete state budget management investing in science and technology development funds in Vietnam
CHAPTER 1 OVERVIEW OF RESEARCH ON STATE BUDGET ANAGEMENT INVESTING IN SCIENCE AND TECHNOLOGY
DEVELOPMENT FUNDS 1.1 Overview of published studies on state budget management investing in science and technology development funds
Domestic and foreign research mostly focus on: Research on science and technology development funds; research on policies for science and technology development in general and policies for science and technology development funds in particular; research on state management of science and technology in general and state budget management investing in science and technology development funds in particular
Domestic and foreign studies on science & technology and finance for science and technology development have provided precious information for improving the quality of state budget management investing in science and technology development in general and science and technology development funds in particular There has not been comprehensive and intensive research on state budget management investing in science and technology development funds Previous studies have only looked into one specific aspect or content that the
author wishes to research on
1.2 Orientations to deal with research questions
Trang 61.2.1 Research objectives and research questions
1.2.1.1 Research objectives
- Overall objectives: Creating scientific basis to propose solutions
to complete and improve the quality of state budget management investing in science and technology development funds in Vietnam in present context
- Specific tasks:
+ Systematize, supplement and explain the theoretical basis on state budget management investing in science and technology development funds;
+ Evaluating the current situation of state budget management investing in science and technology development funds in Vietnam, identifying achievements, limitations and causes;
+ Proposing orientations and solutions to complete and improve the quality of state budget management investing in science and technology development funds in Vietnam
1.2.1.2 Research questions
Questions 1: What does state budget management investing in
science and technology development funds refer to?
Questions 2: What problems and limitations are existing in the
state budget management investing in science and technology development funds in Vietnam? What contents are included?
Questions 3: What should Vietnam do to complete the state
budget management investing in science and technology development funds?
1.2.2 Subject and scope of the thesis
1.2.2.1 Research subject
Trang 7The subject of the thesis is state budget management investing in science and technology development funds in Vietnam
1.2.2.2 Research scope
- In content: The thesis researches theories on state budget
investments for science and technology development funds Among these contents, the thesis focuses on the basic contents including: (1) identifying orientations for the construction and development of science and technology development funds and orientations for state budget investments for science and technology development funds; (2) setting
up and issuing legal regulations and policies on the organization and operations of science and technology development funds and state budget investments for science and technology development funds; (3) developing expenditure plan, spending schemes and approving annual state budget investments and registered capital for science and technology development funds; (4) supervising, controlling and auditing capital disbursement from state budget for science and technology development funds as approved by authorized agencies
- In terms space:The thesis focuses its research on state budget
management investing in science and technology development funds in Vietnam
- In terms of time: The thesis researches, surveys and evaluates
the situation of state budget management investing in science and technology development funds in Vietnam from 2011 to 2017 and suggests solutions to complete the state budget management investing in
these funds from now to 2025
1.2.3 Research approach, methods and hypotheses
1.2.3.1 Research approach
Trang 8- General and comprehensive approach: researching and dealing
with the subject comprehensively and generally from theoretical to practical perspective of state budget management investing in science and technology development in general and science and technology development funds in particular
- Practical approach:approaching and dealing the issues related
to state budget management investing in science and technology development funds in Vietnam in recent timea
- Systematic approach: Researching state budget management
investing in science and technology development funds in the general situation of mechanism and policies on science and technology development as well as state budget management investing in public services in Vietnam in the context of industrialization, modernization and international integration as well as public financial reform
- Moving, multi-sectoral approach based on fundamental principles of public financial management: Solutions to improve the
quality of state budget management investing in science and technology development funds in Vietnam are not only suggested on theoretical basis but also take into account the mechanism to ensure the implementation at present and upcoming time
1.2.3.2 Research methods
- Methodology: The thesis is carried out by a combination of
methods including dialectical materialism and historical materialism The author looks into the research subject in a specific political – cultural – economic context
- Specific research methods: The thesis employs the following
methods:(i) Method of analysis and synthesis, method of logic and
Trang 9history (ii) Methods of generalization and specification (iii) Method of
comparison: this method is used to compare the reality of state budget management for science and technology development funds in some
developed countries in the world so as to draw lessons for Vietnam (iv) Methods of data collection (v) Methods of data synthesis and analysis:
these methods include descriptive statistics, disaggregated, comparison, forecast, expert, quantitative analysis
To collect data from reality, the author uses the following methods:
+ In-depth personal interviews: the author conducts in-depth interviews with officials in charge of managing science and technology development funds at province and city levels, the staff of National Foundation for Science and Technology Development, who are directly
in charge of administrating science and technology development funds
in Vietnam at present
+ Questionnaires: the author collects information by questionnaires from two main sources: (1) staffs of the national Science and Technology Development fund and (2) staffs in charge of management of science and technology development funds at ministry, government office, province and city levels
1.2.3.3 Research hypotheses
- Hypothesis 1:State budget management investing in science and
technology development funds in Vietnam has gradually reduced obstacles and difficulties in financial mechanism for science and technology development
- Hypothesis 2:State budget management investing in science and
technology development funds in Vietnam is still facing certain
Trang 10limitations and weaknesses: these are barriers to science and technology development to meet the demand of rapid and sustainable national development
- Hypothesis 3: Science and technology development funds have
gradually affirmed their positions and roles in science and technology development, they have particularly created changes in financial mechanism to promote science and technology development However,
to further exploit the roles of these funds, it is necessary to enhance the quality of financial management, especially state budget investment administration for the funds by removing barriers such as: state budget spending on the funds are low; procedures are complicated; capital is provided on fiscal year basis, etc
CHAPTER 2 THEORETICAL BASIS AND INTERNATIONAL EXPERIENCE
OF STATE BUDGET MANAGEMENT INVESTING IN SCIENCE AND TECHNOLOGY DEVELOPMENT FUNDS
2.1 Science and technology development funds
2.1.1 Concepts and features of science and technology development funds
2.1.1.1 Concepts of science and technology development funds
Science and technology development funds are a centralized monetary fund established by the state or private sources, operating towards the aims of sponsoring, funding, lending and guaranteeing loans
to support and improve the science and technology competence of researchers rather than making profits
2.1.1.2 Features of science and technology development fund
Trang 11Firstly, science and technology funds are a special financial
institution; different from other financial institutions, the science and technology funds do not operate for profits but provide non-refundable
or refundable sponsors, low-interest or interest-free loans to organizations or individuals to support their scientific and technological
activities [27, p 100] Secondly, investments of the science and
technology funds are just to support organizations implementing scientific and technological research projects, running pilot programs of technological application or transfer in addition to their available
conditions Thirdly, science and technology funds create a free, equal
and democratic environment in the innovative operations of scientific
community Fourthly, these funds help to diversity sources of funds for scientific and technological activities Fifthly, science and technology
development funds have similar features to non-state budget financial funds
2.1.2 Classification of science and technology development funds
Science and technology development funds can be classified in different ways, depending on each set of classification criteria
Firstly, based on the entities to establish and manage the funds,
science and technology development funds can be classified into: science and technology development funds at central level; science and technology development funds at local level; science and technology development funds of enterprises; science and technology development
funds of individuals and organizations Secondly, based on the capital
forming the funds, science and technology development funds can be
Trang 12classified into state-funded science and technology development fund and private science and technology development fund
2.1.3 Roles of science and technology development funds
Firstly, science and technology development funds create diverse
and active capital channels to help mobilize additional capital sources from the society to support state budget in implementing science and
technology development goals Secondly, science and technology
development funds help the State in overcoming the limitations of traditional financial mechanisms for science and technology activities and gradually shifting to a new mechanism suitable for market economy
2.1.4 State budget investments for science and technology development funds
2.1.4.1 The concept of state budget investments for science and technology development funds
State budget investments for science and technology development funds are spending state budget on science and technology development funds to implement scientific and technological tasks towards socio-economic development goals
2.1.4.2 Effectiveness of state budget investments for science and technology development funds in market economy
The effectiveness of state budget investments for science and technology development funds can be understood as the relationships between outcomes gained by science and technology development funds and the investments for the funds in a certain period of time
Trang 132.1.5 Theories related to investments in science and technology development to promote socio-economic development
(i) Slow’s theory on the impacts of technical advancement on economic growth (ii) Romo’s theory on the impacts of specialized intellectual accumulation and human resource capital accumulation on economic growth (iii) Scot’s theory on the impacts of capital investments on technology development and economic growth (iv) Freeman’s theory on ‘participation parties’
2.2 State budget management investing in science and technology development funds
2.2.1 Concepts of subjects, participants, objects, tools and
contents of state budget investments for science and technology development funds
2.2.1.1 Concept of state budget management investing in science and technology development funds
State budget management investing in science and technology development funds is the system of impacts of state administration agencies from central to local levels on the provision of state budget for the establishment, operations and development of these funds so as to guarantee the financial resources for the funds to maintain their activities and carry out scientific and technological tasks
2.2.1.2 Subjects, participants, objects, tools and contents of state budget investments for science and technology development funds
2.2.2 Criteria to evaluate the management of state budget investments for science and technology development funds
(1) the adequacy and completeness of constituent elements to state budget management investing in science and technology