Decision No. 69/2007/QD-TTg approving the scheme on development of the agro-forest product processing industry in agricultural and rural industrialization and modernization up to 2010 and orientations towards 2020

50 OFFICIAL GAZETTE Issue nos 06·071May 2007 (Gong Bao nos 332-333/June 6, 2007) THE PRIME MINISTER DECISION No. 69/2007/QD-TTg OF MAY 18,2007, APPROVING THE SCHEME ON DEVELOPMENT OF THE AGRO­ FOREST PRODUCT-PROCESSING INDUSTRY IN AGRICULTURAL AND RURAL INDUSTRIALIZATION AND MODERNIZATION UP TO 2010 AND ORIENTATIONS TOWARDS 2020 THE PRIME MINISTER Pursuant to the December 25, 2001 Law on Organization ofthe Government; At the proposal of the Minister ofAgriculture and RuralDevelopment, DECIDES: Article 1.- To approve the Scheme on developmentof the agro-forest product-processing industry in agricultural and rural industrialization and modernization up to 2010 and orientations 1 towards2020 with the following principal contents: I. DEVELOPMENT VIEWPOINTS 1.Developmentof the processing industrymust be associated with the agricultural and rural economic restructuring in accordance with agricultural and rural industrialization and modernization. 2. Development of the agro-forest product­ processing industry must be associated with domesticandworldmarketsandraw-material zones to developproductsof comparativeadvantagesand competitiveness. 3. Investment in building and upgrading processing establishments must satisfy the requirement thatmodemtechnologies andadvanced equipment be combined with traditional technologiesand equipmentand must be on a scale suitable to the raw-material zones and products in order to raise the quality and competitiveness of processed agro-forest products and protect the ecological environmentto ensure the efficientand sustainabledevelopmentofthe processingindustry. 4. The agro-foresr product-processing industry must be developed on the basis of mobilizing all resourcesand economicsectors. II. DEVELOPMENT OBJECTIVES 1. General objectives: To develop highly competitive processed commodities; rapidly increase the added value of products as a basis to boost agro-forestry production; generate more jobs and raisefarmers' income;turn outqualityproducts whichensurefoodsafetyand industrialhygieneand raise the competitiveness domestically and internationally. 2. Specifictargets atAgro-forest food processing Ricepaddy: 100%ofthetotalricepaddyoutput will be processed, of which industrial-scale processingin serviceof domesticconsumptionand export reaches55% by 2010 and 60-65% by 2020. Coffee; 100% of the total coffee output will be processed, to raise the percentage ofcoffee by the method of wet processingto 30% by 2010 and 40 © VIETNAM LAW & LEGAL FORUM 0 Issue nos 06·07/May 2007 (C6ng BaD nos 332-333/June 6, 2007) OFFICIAL GAZETTE 51 50% by 2020; to strive to raise the percentage of processed coffee powder to 10% by 2010 and 20% by 2020. Rubber: 100% of the rubber latex output will be processed with the following product structure for the 2010·2020 period: granular latex, 40%, technical latex, 40%, and creamy latex, 20%. To strive to reach the following rates ofrubber products intensively processed at home: 30% by 2010 and 40% by 2020. Tea: 60-65% ofthe fresh tea bud output will be industrially processed by 2010 and over 80% by 2020, with the product structure as follows: green tea, 50% and black tea, 50% (CTC black tea accounting for 50%, and O'I'l) black tea, 50%). Sugarcanes: By 201 0, 90% of the sugarcane output will be industrially processed and 10%, manually processed; by 2020, the figures are respectively 95% and 5%. Vegetables and fruits: The output ofprocessed and preserved vegetables and fruits reaches over 10% by 2010 and 20-30% by 2020. Cashew: Processed cashew nuts reach 100%, intensively processed and diversified cashew products for domestic consumption and export reach 20% by 2010 and 30% by 2020. Meat: 30% of the meat output will be industrially processed by 2010 and 40% by 2020. Milk (fresh milk equivalent): The industrially­ processed milk output reaches 1,300 million liters by20lO. Vegetable oil: The annual output of refined vegetable oil reaches 783,000 tons by 2010. Liquors: The industrially-processed liquor output reaches around 145 million liters by 2010. Beer: The industrially-processed beer output reaches around 3,500 million liters by 2010. Softdrinks: The industrially-processed soft drink output reaches around 1,600 million liters by 2010. Cigarettes: The industrially-processed cigarette output reaches around 3,200 million packs by 2010 and around 4,000 million packs by 2020. Fiber: The industrially-processed fiber output reaches around 350,000 tons by 2010 and around 650,000 tons by 2020. Paper: The industrially-processed paper output reaches 1,380,000 tons by 2010 and around 3,600,000 tons by 2020. Timher and non-timber forest products: The industrially-processed timber and non-timber forest product output reaches 50% by 2010 and 70% by 2020. b/Production value grows annually 10.7% by 2010 and 11.7% by 2020. c/ The total export value ofagricultural products reaches around USD 11 billion by 2010 and around USD 16.5 billion by 2020. III.MAJOR SOLUTIONS 1. Planning al The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with provincial/municipal People's Committees and relevant ministries and branches in, elaborating, reviewing and adjusting detailed planning on each crop and livestock nationwide with a view to forming concentrated commodity production areas associated with processing establishments in accordance with the national master plan on restructuring ofagro-forestry and fishery production up to 20 I°and the vision © VIETNAM LAW & LEGAL FORUM 52 OFFICIAL GAZETIE I~~!J& nos Q6·07IMay 2007 (Cong 8<lo nos 332·3331June 6,2007) towards2020approved underthe PrimeMinister's Decision No.150/2005/QD-TTg of June 20, 2005, and submitting them to competent authorities for approval. bl The Ministry of Agriculture and Rural Development and the Ministryof Industry shall, according to their functions, tasks and powers, elaborate, review and adjust the master plan on processingestablishments nationwide with a view to associating processing establishments "with raw­ materialzones and step by stepforming industrial clustersand parks processing agro-forestproducts and foods, andsubmitthem to competent authorities for approval. cf Provincial/municipal People's Committees shall elaborate, review, adjust and direct the implementation of detailed master plans on processing establishments and concentrated raw­ material zones in accordance with the national masterplan andlocalsocio-economic development plans. 2. Development of raw-material zones eJ To adopt comprehensive measures on seeds, fanning techniques, intensive farming investment, infrastructure construction and mechanization to raisetheproductivity andqualityofcommodity agro­ forest products in service of processing establishments. bl Provincial/municipal People's Committees shalldirectprocessing establishments and levelsto develop raw-material zones in accordance with masterplans approved bycompetent authorities to ensure adequate raw materials for processing establishments to reach their designed capacity; create conditions for processing establishments to formulate investmentprojectsonraw-material zone developmentand adopt policies on infrastructure investment (irrigation, roads,etc.)for concentrated raw-material zones. c/ Mills and processing establishments shall work out plans on development of their raw­ material zones in accordance with master plans approvedby competent authorities;adopt specific policies and solutions to support raw-material producers in production development, raise the productivity and quality of agro-forest products andenterintoproduct consumptioncontractswith raw-materialproducers. 3. Science, technologyand transferof technical advances al The Ministry of Agriculture and Rural Development and provincial/municipal People's Committees shall direct and efficiently implement thePrimeMinister'sDecisionNo. 17/2006/QD-TIg of November 20, 2006, on the continued implementation of the Prime Minister's Decision No. 225/1999/QD-TIg of December10, 1999,on theProgram onplantvarieties, livestockbreedsand forestry saplings up to 2010, to ensure sufficient high-yield and quality varieties tor production ofmw materials of industrialprocessingstandards. blToinvestin researchintomanufactureof small­ andmedium-sizedproductionchainssuitable toraw­ materialzones,ensuringmodem technologies and advanced equipment. To rapidly develop the domestic mechanical engineering, gradually raise the rate of domestic parts in comprehensive agro­ forest productprocessing linesof smallandmedium capacities. To form a support industryproducing packages inservice ofagro-forest product processing industry. Toinvestin equipmentandtechnologies to raise the rate of intensively-processed products and the valueof agro-forestproductsin serviceof export. © VIETNAM LAW & LEGAL FORUM Issue nos 06·071May 2007 (Gong Bao nos 332·3331June 6, 2007) OFFICIAL GAZETTE 53 c/ Tointensify the agricultural extension (bythe State and by enterprises), train, guide and build models to swiftly transfer new strains, advanced farming methods, scientific and technological advances to fanners. d/ To develop and adopt intensive farming processes suitableto each ecological region, guide the swift transferthereof into production, invest in intensive fanning and raise the productivity and quality of plants and livestock. e/ Mills shall soon complete their production quality control systems towards modernity, ensuring foodsafetyandhygiene inconformitywiththeworld economic integration. 4. Credit investment a/ The state budget supports the import and propagation of new varieties; investment in reservoirs andkeyirrigationworks(canals of grades 1 and 2) and road systems in concentrated raw­ material zones. Provincial People's Committees shallplan to allocate localbudgets to investment in infrastructure outside mills, processing establislnnents and raw-material zones. bl Toadoptpolicies tomobilize capital fromother lawful sources in addition to state supports for investment in the construction of comprehensive infrastructure (improvement of fields, roads and irrigation works,etc.)forconcentrated raw-material zones,raisingproductivity andquality andreducing transport costs. To investin irrigating the industrial and fruit tree areas in localities where adequate conditions and watersources exist. cl To encourage mills and processing establishments to support farmers to invest in mechanizing production stepsfromsoilpreparation to harvesting and preservation to raise labor productivity and addressthe laborshortage. 5. Saleand trade promotion a/ The Ministry of Agriculture and Rural Development shallassumetheprimeresponsibility for, and coordinate with relevant ministries and branches in,reviewing, adjusting andsupplementing policies and materializing the commitments to the Association of SontheastAsianNations(ASEAN) in agriculture, first of all food security, trade promotion, veterinary and plant protection; the commitments to the World Trade Organization (WTO) in agriculture, plantand animalquarantine, investment and services; and the Sanitary and Phytosanitary Agreement (SPS) with countries importing Vietnam's farmproduce. biLocalities, millsandprocessing establishments shallcontinue efficiently performing theagricultural product consumption contracts with producers in accordance withthePrimeMinister'sDecision No. 80/2002/QD-TTg of June 24,2002. c/ To support and guide enterprises to expand exportmarketsforagro-forest products; coordinate with localities in organizing trade promotion activities, developing and managingthe quality of commodity farm produce and guiding enterprises in brand registration and protection and trade promotion. dl To consolidate and expand the sectoral information system, including information on production and markets, in order to assist establishments and producers in investment in market-driven productiondevelopment andefficient saleof products. 6.Continuedrenewal andreorganization ofagro­ forestry production a/ To createconditions for household economy to develop by encouraging households having capital, laborandproductionexperience to develop © VIETNAM LAW & LEGAL FORUM 54 OFFICIAL GAZETTE Issue nos 06·07/May 2007 (C6ng Bao nos 332-333/June 6, 2007) commodity production and farm economy. To support and create favorable conditions for poor and difficulty-stricken households todevelop production, eradicate hunger, reduce poverty and strive to get riches. ' bl To well implement policies to boost rapid development of the cooperative and private economic sectors, especially small- and medium­ sized rural enterprises, in order to intensify production and laborrestructuring. cl Corporations and localities shall promptly complete the rearrangement and renewal of agricultural andforestry farms underthePolitburo's Resolution No. 28 and the Government's decrees; and efficiently rearrange, renew and develop state enterprises. d/ To encourage domestic and overseas organizations and individuals to investin the agro­ forestry sector, especially small-andmedium-sized rural enterprises processingagro-forest products and foods. el To enhance the role and operation efficiency of professional associations for better sale, information, marketforecasts, tradepromotion and science and technology, ensuring the interests for enterprises, farmers and consumers as well. 7.Landpolicies a/ To well implement the 2003 Land Law and soon complete the land plot convergence and swapping, thegrantof'landuse rights certificates in the agriculture, forestry and aquaculture domains, and well direct the undertaking of settlement of residential and production land for ethnic minority people in localities. bl Toadoptincentive and supportive policies for farmers to planproduction andconcentrate land to form commodity production areas; encourage the development ofa numberofpotential commodities such as industrial trees, fruit trees, livestock and poultryrearing, etc. cl Tocontinue boosting the landassignment and forestcontracting in the forestry sector; and adjust policies to encourage people toprotectnatural forests and develop economic forestation. VI. ORGANIZATION OF IMPLEMENTATION 1. The Ministry of Agriculture and Rural Development and the Ministry of Industry shall coordinate with provincial/municipal People's Committees and relevant ministries and branches in directing the implementation of the Schemeon development of the agro-forest productprocessing in the course of accelerated industrialization and modernization up to 2010and subsequent years. 2. Provincial/municipal People's Committees shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Industry and relevantministries andbranches in, organizing and directing the implementationof thisSchemein their localities. Article2.-This Decision takes effect 15 daysafter its publication in "CONG BAO." Article 3.- Ministers, heads of ministerial-level \ agencies, heads of government-attached agencies, and presidents of provincial/municipal People's Committees shall implement this Decision. For tlu: Prime Minister Deputy Prime Minister NGUYEN SINH HUNG © VIETNAM LAW 8< LEGAL FORUM