Budget to spend VND1 trillion on technology innovation

Wednesday, Sep 24, 2014 15:56

Chu Lai Float Glass JSC has invested in a modern glass production chain. The National Technology Innovation Fund will provide preferential loans, interest rate assistance and credit guarantees to enterprises engaged in technological research and innovation. — Photo nhandan.com.vn

HA NOI (Biz Hub) — Viet Nam's National Technology Innovation Fund has a charter capital of VND1 trillion (US$47.6 million), which will be contributed by the state budget for science and technology activities.

The fund's operations have been regulated in Circular No 120/2014/TTLT-BTC-BKHCN, issued recently by the ministries of Finance, and Science and Technology. It will come into effect on October 10.

An annual amount will be added to the fund until it reaches the total amount of its charter capital. Based on specific conditions, the Ministry of Science and Technology will discuss with the Ministry of Finance about increasing the fund's charter capital. After reaching an agreement, the Minister of Science and Technology will send a request to the Prime Minister.

The fund will open accounts at the Vietnam State Treasury and in commercial banks. The capital for its operations will be taken from the state budget and mobilised from different sources such as local and international finance and credit institutions, and voluntary contributions from local and foreign individuals and organisations. The fund can be self-financed as allowed for finance organisations of the government, and can carry out accounting in accordance with the accounting laws of Viet Nam.

The fund, under the direct management of the Ministry of Science and Technology, is a financial and non-profit entity. Half of the fund can be used for providing preferential loans, interest rate assistance and credit guarantees to organisations, individuals and businesses engaged in technological production, research, transfer and innovation. — VNS

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