Decision No. 750/QD-TTg approving the planning on development of rubber tree up to 2015, with a vision toward 2020

l::;sue nos 07-oS{June 2009 (Gong Bsooo:297·298/June 17, 2(09) OFFICIAL GAZETTE 37 THE PRIME MINISTER Decision No. 750/QD.TTg of June 3, 2009, appruving the planning on development of rubber tree up to 2015, with a vision toward 2020 THE PRIME MINISTER Pursuant to the December 25, 2001 Law on Organization of the Government; At the proposal ofthe Minister ofAgriculture and Rural Development, DECIDES: Article 1. To approve the planning on development of rubber tree up to 2015. with a visiontoward2020, with the following principal contents: L DEVELOPMENT VIEWPOINTS 1. Theplanningof developmentof rubbertree mustbe basedon marketdemands. Toeffectively tap and bring into play advantages ill laud and natural conditions in someregionsforsustainable development of rubber tree. To rapidly apply scientific and technological advances in order to raise the yield. quality, efficiency and market competitiveness of rubber products. 2. To develop rubber tree in the direction of investment in intensive plantation to bring about higheryieldandquality. Toplantnewrubbertrees on land areas under inefficient agricultural production or under poor natural foreses suitable for rubber tree. 3. To develop rubber tree on the basis of linking material zones with processing establishments and the marketto form l&rge-scale consolidated commodity production zones. 4. To bring into play all resources of all economic sectors and supports of the State to ensure efficient and sustainable rubber production and eco-environmental protection. II. DEVELOPMENT TARGE'TS 1. By 2010: Tocontinue planting newrubber treeson70,000hectaresso as to increasethe total area under rubber tree in the whole country to 650,000 hectares, thereby achieving an annual latex outputof 800,000 tons and an annual export turnover of USD 1.6 billion. To increase the processing capacity to around 220.000 tons. © VIETNAM LAW & LEGAL FORUM 38 OFFICIAL GAZETTE Issue nosOl-ll8{June 2009 (Gong 8aonos 297-298/June t7, 2009) 2. By 2015: To continue planting new rubber trees on 150,000 hectares so as to increase the total area under rubber tree in the whole country to 800,000 hectares. thereby achieving an annual latex output of 1.1 million tons and an annual export turnover of USD 1.8billion. To increase me processing capacity in 5 years to around 360,000 tons. 3. By 1020: To stabilize the total area under rubber tree at ~OU,OUO hectares, an annual latex output of 1.2 million tons and an annual export turnover ofUSD 2 billion. III. PLANNING ORIENTATIONS 1. Regarding land areas reserved for planting rubber tree. To achieve the target of 800,000 hectares of rubber tree; it is necessary to plant new rubber trees on lJO.OOO hectares of land areas under inefficient agricultural production, left unused or under poor natural forests suitable to rubber tree growth requirements. 2. Rubber tree planning orientations for different regions e! The Srmrheastern region: To continue planting new rubber trees on 25,000 hectares of land areas under inefficient agricultural production or under poor natural forests suitable to rubber tree. in order to stabilize the total area under rubher trf';f' in thj, rp,eion at 190,000 hectares; bl The Central Highlands: To continue planting new rubber trees on around 95.000 100,000 hectares of land areas under inefficient agricultural production, left unused or under poor natural forests suitable to rubber tree. in order to stabilize the total area under rubber tree in this region at 280,000 hectares; c/ The coastal southern Central Vietnam: To continue planting new rubber trees on 10.000 15,000 hectares of land areas under inefficient agricultural production or under poor natural forests suitable to rubber tree, in order to stabilize the total area under rubber tree in this region at 40,000 hectares; dJ The northern Central Vietnam: To continue planting new rubber trees on around 20,000 hectares mostly of agricultural land, in order to stabilize the total area under rubber tree in this region at 80.000 hectares; e/ The northeastern provinces: To develop rubber tree through different steps appropriate to different localities, avoiding unplanned planting movement Based on available land areas and results of efficiency evaluation of existing rubber tree areas, localities shall decide to expand rubber tree areas in places where conditions permit. striving for the target that by 2020 these provinces will have a total rubber tree area of around 50,000 hectares. 3, Capital and capital sources aJ Total investment capital: around VND 30 trillion; bl Capital sources: State budget investment in infrastructure (power facilities, roads, health stations and schools in project areas) and job training; Capital of enterprises and people; Development investment credit under curreru regulations: © VII::TNAM LAW & U::GAL FO/-iUM Issue nQs OZ·Oa/June 2009 (Gong Beo nos 297-2981June 17,2009) Commercial credit. OFFICIAL GAZETTE investment law. 39 IV. SOME MAJOR SOLUTIONS 1. Land aJ Provincial-level People's Committees shall review and adjust their existing rubber tree development plannings and elaborate new ones in line with this planning, then submit them to competent authorities for approval; allocate or lease land and grant land use rights certificates for rubber tree erowers under the land law. bl For forest areas and forestry land areas planned to be converted into those for rubber tree planting, provincial-level People's Committees shall direct the conversion under the law on forest protection and development and other relevant laws. Forest tenders and protectors will receive additional biomass values generated through capital investment in and labor for forest tending and protection from the date of land allocation and forest contracting by the State to the date of land recovery and handover for rubber tree planting. in the form of proceeds from sale of forest products. c/ For agricultural production land areas currently used tor cultivation by peasants: Peasant households in project areas are encouraged to lease land or contribute the land use rights value as capital to rubber tree planting enterprises and their members of working age may be employed by these enterprises; dI Based on plannings approved by competent authorities, investors shall select and formulate projects on rubber tree planting and investment in industrial processing establishments (preliminary and in-depth processing) under the 2, Science. technology and transfer of technical advances a/ To continue investing in projects on research. selection. cross-breeding and domestication of rubber tree varieties of high yield and quality, thereby supplying sufficient prototypical seedlings for nurseries- to meet production needs. The Ministry of Agriculture and Rural Development shall coordinate with provincial-level People's Committees and the Vietnam Rubber Industry Group in directing the implementation of projects on high-quality rubber tree varieties under the Prime Minister approved program on plant varieties, livestock breeds, forest tree seedlings and aquatic and marine species; bl To step up agricultural extension, transfer of technical advances, supply of information, skill training of laborers engaged in rubber tree planting, tending, exploitation and processing. 3. Product sale aJEnterprises shall well organize the signing of contracts for rubber product sale with producers. ensuring that all products will be sold at mutually beneficial prices; b/ To step up trade promotion activities, further expand the market for rubber products, develop brands and elaborate product and goods quality standards and regulations. To form a forward market for Vietnamese rubber and eventually build a commodity wholesale market in conformity with international practice. To promote cooperation with foreign countries in rubber tree planting and rubber processing and sale. © VIETNAM LAW &LEGAL FORUM OFFICIAL GAZETTE Issue nos07"(}8lJune 2009 (Gong BaD nos 297-298/June 17, 2(09) 4. Investment and credit a/ To mobilize capital from investors. idle capital from people and the land use rights value for investment in rubber tree development; bl To allocate capital from the state budget for investment in socio-economic infrastructure in areas where rubber tree planting projects are implemented; cI Rubber tree growers in difficult localities are entitled to loans under the Government's Decree No. 151/006JND-CP of December 20. 2CXXi. and Decree No. 106/2006/ND-CP of September 19, 2006, amending and supplementing a number of articles of Decree No. 151/2006IND-CP 5. Production organization alTo develop latex. rubber and rubber timber product processing establishments attached to rubber material zones in the direction of diversifying ownership forms and products and founding industrial and agricultural enterprises in order reassociate production with processing, sale and export; bl Tl\e State encourages enterprises and individuals to invest in rubber tree planting and rubber product processing and sale under the approved planning; cl To encourageand support the formation of cooperative gruups or cuoperatives in the domains of rubber tree planting and rubber product processing and sale to provide rubber tree growers with technical assistance, supplies and product sale services; dI To enhance the operating capacity of the Vietnam Rubber Association to support, create favorable conditions for and protect benefits of its members and producers. V. ORGANIZATION OF IMPLEMENTATION 1. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for. and coordinate with concerned ministries and branches and provincial People's Committees in, guiding, directing and inspecting the implementation of the planning; updating information on production, market, scientific and technological advances for appropriate adjustment of the planning. 2. Other ministries and central branches shall coordinate with the Ministry of Agriculture and Rural Development and localities in performing state management functions and tasks; guiding localities in lawfully and efficiently using land areas with converted use purposes; and assuring prerequisites, especially investment capital, for development under the planning. 3. Provincial People's Committees shall review local rubber tree development plannings or elaborate new ones, determining and converting use purposes of land areas currently used for agricultural production or under poor productive natural forests for rubber tree planting, and publicizing these plannings and cou version policies for enterprises, organizations and individuals at home and abroad to select localities for investment. To select enterprises, organizations and individuals with sufficient investment capacity for carrying out procedures for formulation of investment projects under regulations. so that these entities can formulate detailed projects as soon as possible. 4. The Vietnam Rubber Industry Group and state rubber corporations shall work out their own © VIETNAM LAW & LEGAL FORUM Issue nos 07-D8IJune 2009 (Gong Bao nos 297-298/June 17, 2009) OFFICIAL GAZETTE 41 rubber tree development plans in line with the approved planning, and efficiently use natural resources, land and other resources. Article 2. This Decision takes effect on the date of its signing. Article 3. Ministers, heads of ministerial level agencies and government-attached agencies and presidents of concerned provincial People's Committees shall implement this Decision. For the Prime Minister Deputy Prime Minister NGUYEN SINH HUNG © VIETNAM LAW & LEGAL FORUM