Decision No. 002/2007/QD-BCT Approving the Master Plan for the Development of the Motorcycle Industry in Vietnam for the Period 2006-2015, with Consideration to 2020

DECISION

Approving the Master Plan for the Development of the Motorcycle Industry in Vietnam for the period 2006-2015, with consideration up to 2020

period 2006-2015, taking into account the year 2020

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THE MINISTER OF INDUSTRY AND TRADE

Pursuant to Resolution No. 01/2007/QH12 of the National Assembly on the organizational structure of the Government and the number of Deputy Prime Ministers for the twelfth term, adopted on July 31, 2007;

Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Pursuant to the opinion of the Prime Minister in Document No. 3174/VPCP-CN dated June 11, 2007 regarding the assignment to the Minister of Industry to examine and approve the Master Plan for the Development of the Motorcycle Industry in Vietnam for the period 2006-2015, with consideration up to 2020;

At the proposal of the Director of the Machinery, Metallurgy, and Chemical Department,

DECISION:

Clause 4 of Article 6Approves the Master Plan for the Development of the Motorcycle Industry in Vietnam for the period 2006-2015, with consideration up to 2020, with the main contents as follows:

1. Development Orientation

- The development of the motorcycle industry in Vietnam must be consistent with the Master Plan for Industrial Development of Vietnam, the economic and social development plans of localities, and the Master Plan for Road Transport Development in Vietnam until 2020;

- The development of motorcycle manufacturing facilities must be synchronized with the development of the supporting industry towards modernization, aiming to enhance the competitiveness of production facilities within the industry, meeting the requirements of the domestic market and export;

- The development of the motorcycle industry must be closely linked with ensuring product quality standards, road traffic safety regulations, environmental protection, intellectual property rights, and harmonizing the interests of consumers, society, the State, and businesses;

- Prioritize the development of the supporting industry as the core, creating a foundation for the development of other assembly industries.

2. Development Goals

a) General Objective

To build and develop the motorcycle industry so that by 2015, Vietnam becomes a major center for motorcycle design, production, and assembly with competitive strength in the region, fully integrated into regional and international markets.

b) Specific Objectives

*Phase up to 2015:

- Meeting 100% of the demand for general motorcycles in rural areas, 90% in urban areas;

- Striving to achieve a domestic production rate of over 60% for scooter models and over 90% for general motorcycle models;

- Motorcycle products must meet exhaust emission standards according to the commitments made by Vietnam under current regulations;

- Producing larger displacement motorcycles over 125 cm³, high-end scooters, sports motorcycles, three- and four-wheeled motorcycles for disabled persons, off-road motorcycles for tourism, agricultural transport motorcycles, etc., to serve domestic needs and exports; striving to reach over 30% of total industry output for these types of vehicles by 2015;

- Striving to export motorcycles and motorcycle parts to achieve approximately 400 million USD;

- Developing the supporting industry for motorcycle production to have sufficient international competitiveness, actively participating in the production and supply system of motorcycle components for international motorcycle groups.

     *Phase 2016-2020:

- Researching and producing various types of motorcycle engines using clean fuels to serve both domestic and export markets;

- By 2020, striving to export motorcycles and motorcycle parts to achieve 500-800 million USD, of which 15%-20% should be engines and motorcycles using clean fuels;

- The supporting industry for motorcycle production can meet the basic needs of components for other assembly industries such as electrical equipment, electronics, automobiles, and consumer goods.

3. Planning for the Development of the Motorcycle Industry

a) Forecasting Domestic Market Demand

- By 2010, it is forecasted that there will be about 24 million motorcycles nationwide, increasing annually by about 2.0-2.2 million units per year;

- By 2015, it is forecasted that there will be about 31 million motorcycles nationwide, increasing annually during this phase by about 2 million units per year;

- By 2020, the total number of motorcycles nationwide is expected to reach about 33 million, increasing annually during the 2016-2020 phase by about 1.8 million units per year.

b) Orientation for Production and Product Development

- Strengthening cooperation, joint ventures, and associations to increase the competitiveness of small and medium-sized enterprises in the production of parts and motorcycle assembly;

- Actively diversifying products, producing parts for other industries such as automobiles, consumer machinery, electronics, chemicals, plastics, etc., to utilize existing material and technical resources from motorcycle production.

c) Research and Development Activities (R&D)

- Promoting R&D activities through various forms (self-research, collaboration, purchasing designs, etc.) based on the capabilities and conditions of each enterprise, focusing on developing high-quality motorcycle models;

- The State may support from science and technology funds for the design and trial production of certain motorcycle models and for training and technology transfer activities in accordance with current laws.

d) Development of the Supporting Industry

- Establishing detailed planning for the development of the supporting industry for the motorcycle sector, serving as a basis for enterprises to plan their future development;

- Building a database on the supporting industry, combining with brokerage services between foreign-invested enterprises and domestic enterprises;

- Promoting the development of upstream industries for the production of parts and components;

- Investing in building one to two specialized supporting industrial parks in the two key economic regions of the North and South to strengthen investment attraction for the development of the supporting industry. Additionally, encouraging the establishment of supporting production facilities near existing motorcycle manufacturing and assembly enterprises.

4. Implementation Measures and Policies

a) Regarding Investment Orientation

- Encouraging cooperation and division of labor among enterprises in the industry to utilize existing technologies and equipment, reduce new investment costs, and avoid redundant investments.

- New investment projects must be consistent with the orientation of the Motorcycle Industry Development Master Plan and Strategy that have been approved, using advanced technology, ensuring intellectual property rights, and meeting exhaust emission standards to ensure product quality serving market demands.

b) Promote the development of the supporting industry for motorcycles

- Strengthen the attraction of investment into five target sectors of the supporting industry: pressure processing, casting, welding, heat treatment, and mold production;

- By 2010, the Ministry of Industry and Trade shall take the lead in establishing a database for the supporting industry;

- Promote and effectively utilize training programs implemented and funded by both domestic and foreign organizations;

- Encourage the development of joint training programs involving both foreign-invested enterprises and local suppliers.

c) Enhance scientific and technological capacity

- Increase support through science and technology funds for projects aimed at developing research and development capabilities, improving production capacity for spare parts, and developing production of clean energy engines and motorcycles;

- Encourage businesses to build their own brands and product designs through support for purchasing production licenses or design costs.

d) Improve organizational structure and operations of industry associations

- Perfect and enhance the role of the industry association as a central point for gathering and improving the quality of products and production development capabilities of all motorcycle assembly and spare parts supply companies in Vietnam.

đ) Improve product quality and protect the environment

- Establish and apply unified standards on quality, safety, and the environment compatible with international standards;

- Encourage economic entities to develop inspection and maintenance systems for motorcycles;

- Inspect and install exhaust gas treatment equipment for motorcycles over five years old.

e) Protect intellectual property rights

- Strictly enforce the Intellectual Property Law; intensify efforts to protect industrial property rights and inspect motorcycle quality;

- Shorten the duration of intellectual property protection. Maximize quantification of differences in industrial design evaluations;

- Encourage the establishment of independent appraisal organizations with sufficient professional expertise, facilities, and credibility to enforce the Intellectual Property Law.

g) Develop the market

- Industry associations should play a role in fostering close links and cooperation among enterprises within the industry to improve product quality and develop a supporting industry system;

- Vigorously promote trade, enhance international cooperation in seeking and tapping export markets; strengthen cooperation with international associations and multinational motorcycle manufacturing groups to promote direct or indirect exports of components and spare parts.

h) Urban traffic issues and traffic safety

- Study and perfect regulations under the Road Traffic Law to enhance traffic safety in the management and use of motorcycles;

- Intensify compulsory propaganda and education on road traffic safety issues, including the production and use of motorcycles.

Article 2. Implementation

1. Responsibilities of the Ministry of Industry and Trade:

- Coordinate with relevant Ministries, Departments, and People's Committees of provinces and centrally-administered cities to guide the development of the industry according to the approved master plan;

- Coordinate with Ministries such as Planning and Investment; Finance; Public Security; Science and Technology; Natural Resources and Environment; Transport... to establish support programs for organizations, enterprises, and localities in implementing the approved master plan; propose mechanisms and policies to develop the motorcycle industry;

- Develop a supporting industry master plan for motorcycle and automobile production until 2015, considering up to 2025.

2. Provincial People's Committees directly under the Central Government, based on the approved master plan, shall be responsible for creating favorable conditions for motorcycle industry development projects and programs to be implemented in a coordinated and unified manner with the overall socio-economic development master plan of the locality.

3. Relevant industry associations shall cooperate with the Ministry of Industry and Trade to implement the master plan through various forms: propaganda, dissemination, and guidance to the national motorcycle industry business community to have appropriate development plans and business strategies in line with the master plan.

Study and propose adjustments to policies and mechanisms to develop the motorcycle industry according to the master plan to state management agencies.

Article 3. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 4. Ministries, ministerial-level agencies, government agencies, provincial people's committees directly under the Central Government, and related agencies are responsible for enforcing this Decision./.