Circular No. 03/2005/TT-BCN guiding the implementation of certain contents of Decree No. 134/2004/NĐ-CP dated June 9, 2004 of the Government on encouraging the development of rural industry.

CIRCULAR

||| Guidelines for implementing certain contents ||| of Decree No. 134/2004/NĐ-CP dated June 9, 2004 ||| of the Government on encouraging the development of rural industry

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||| Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2005 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

||| Pursuant to Decree No. 134/2004/NĐ-CP dated June 9, 2004 of the Government on encouraging the development of rural industry;

||| To facilitate the implementation and management of activities promoting industry, the Ministry of Industry provides guidelines for implementing certain contents of Decree No. 134/2004/NĐ-CP as follows:

Part I GENERAL PROVISIONS

1.||| This Circular guides the implementation of activities promoting industry, certain contents of the promotion policy, and planning work in promoting industry activities.

||| The management and use of economic public funds allocated from the state budget for promoting industry activities shall be carried out in accordance with Circular Joint No. 36/2005/TTLT-BTC-BCN dated May 16, 2005 of the Ministry of Finance and the Ministry of Industry.

2. This Circular applies to:

a) Organizations and individuals directly investing in industrial production at districts, towns, townships, and villages (hereinafter referred to as rural industrial production establishments), including:

||| - Small and medium enterprises (with registered capital not exceeding VND 10 billion or average number of employees not exceeding 300 people) established and operating under the Law on State Enterprises and the Enterprise Law;

||| - Cooperatives established and operating under the Law on Cooperatives;

||| - Individual business households according to Decree No. 02/2000/NĐ-CP dated February 3, 2000 (previously), now Decree No. 109/2004/NĐ-CP dated April 2, 2004 of the Government on business registration.

b) Service organizations for promoting industry.

c) State administrative agencies responsible for promoting industry activities as stipulated in Article 15 of Decree No. 134/2004/NĐ-CP.

3. In this Circular, the following terms are understood as follows:

a) Industrialization Project ||| is a project plan to implement one or more contents of promoting industry activities as prescribed in Article 3 of Decree No. 134/2004/NĐ-CP. A promoting industry project has specific objectives and beneficiaries, a defined implementation period, and determined funding.

National Promoting Industry Project ||| is a promoting industry project managed and organized by the Local Industry Department under the Ministry of Industry (in cases where promoting industry funds are directly managed by the Ministry of Industry) or by the Provincial Industry Department (in cases where central government budgetary support funds are used for local promoting industry activities) to implement national promoting industry activities according to programs approved by the Prime Minister or plans approved by the Minister of Industry.

Local Promoting Industry Project ||| is a promoting industry project managed and organized by the Provincial Industry Department from local promoting industry funds to implement local promoting industry activities according to programs and plans approved by the Chairman of the People's Committee of the province.

b) Service Organization for Promoting Industry ||| established by organizations and individuals of all economic sectors in accordance with the law (Promotion Centers, scientific research institutions, training centers, enterprises, etc.), is an organization that implements service activities for promoting industry such as consulting, training, technology transfer, information provision, trade promotion, and other related activities to rural industrial production investment.

Part II SPECIFIC PROVISIONS

I. IMPLEMENTATION OF PROMOTION ACTIVITIES

1. Promotion activities according to the contents prescribed in Article 3 of Decree No. 134/2004/NĐ-CP shall be carried out through promotion programs, which are established based on approved promotion plans.

2. Depending on the content of the promotion activities, the promotion program shall be established and implemented in the following forms:

a) Organizing training courses, capacity building sessions, workshops, and skill transmission.

b) Establishing advisory points or conducting direct advisory services at rural industrial production facilities.

c) Directly supporting rural industrial production facilities in establishing business start-up projects, expanding production investment, investing in new product production, technological innovation and application, enhancing production capacity, managing product quality, and environmental protection.

d) Supporting technology transfer accompanied by training for rural industrial production facilities.

đ) Building and organizing demonstrations of technical models to popularize new technologies, new product production, and replicate successful models.

e) Organizing and supporting rural industrial production facilities to participate in trade fairs and exhibitions; conducting site visits, learning exchanges, joint ventures, economic cooperation, and joining industry associations.

g) Supporting information provision, market search, and business partner search.

h) Other promotion methods suitable for the activities prescribed in Article 3 of Decree No. 134/2004/NĐ-CP.

3. Based on the scale and nature of the promotion program, the capability of the implementing unit, the Ministry of Industry (for national promotion programs) and the People's Committee of the province (for local promotion programs) shall approve the selection of one of the following implementation methods:

a) The Local Industry Bureau and the Department of Industry directly implement;

b) The Local Industry Bureau and the Department of Industry sign contracts with service organizations to implement;

c) Rural industrial production facilities self-implement (direct financial support for promotion).

The method of implementation of the program is reflected in the annual promotion plan.

4. Local promotion activities need to focus on serving the implementation of the local industrial development planning, prioritizing support for the development of agricultural, forestry, aquatic products processing industries, machinery and chemical industries serving agriculture and rural areas, consumer goods industry, and small-scale handicrafts; developing products with markets that can create many jobs and bring high economic and social benefits to the locality.

II. SOME CONTENTS OF THE PROMOTION POLICY

Rural industrial production facilities investing in industries and trades specified in Clause 1, Article 6 of Decree No. 134/2004/NĐ-CP and guided by the Joint Circular No. 36/2005/TTLT-BTC-BCN dated May 16, 2005 of the Ministry of Industry and Finance on management and use of state budget funds for promotion activities shall enjoy specific promotion policies as follows:

1. Participate and benefit from the results of promotion activities conducted by the Local Industry Bureau, the Department of Industry, and service organizations.

2. Receive direct support from the promotion fund to cover costs for project establishment, training, construction of demonstration technical models, technology transfer, participation in domestic trade fairs and exhibitions to introduce products.

3. Be supported in the field of information and market as follows:

a) Be supported by service organizations in providing information, marketing, searching for markets, business partners, organizing exhibitions, and trade fairs;

b) Be introduced free of charge on the website of the Ministry of Industry regarding production capacity, products, potential buyers, and other necessary information for production development;

c) Be supported by State-owned Enterprises and enterprises under the Ministry of Industry in market search and product sales (through production and business cooperation);

d) Be promoted and introduced by the Industrial Newspaper and Industrial Magazine about the production facility and its products.

The Local Industry Bureau and Departments of Industry have the responsibility to assist rural industrial production facilities in accessing the above-mentioned support activities.

4. Be supported in science and technology as follows:

a) Be supported by the Programs on automation technology, material technology, and energy conservation managed by the Ministry of Industry for investment projects (including both new investments and deepening technological innovation investments) if the projects meet the conditions and criteria of the Programs.

The Offices of the Programs coordinate with the Local Industry Bureau to provide detailed guidance on the procedures for establishing, registering, and assessing investment projects using Program support funds for the Departments of Industry and rural industrial production facilities to implement.

b) Participate in implementing research and development tasks consistent with the goal of developing rural industry within the annual budget for scientific research and technology development of the Ministry of Industry; at the same time, use the results of scientific and technological research projects at the ministry level appropriately.

The Science and Technology Department (Ministry of Industry) coordinates with the Local Industry Bureau to provide detailed guidance on the procedures for building, registering, participating in, and implementing research and development tasks and registering the use of results of scientific and technological research projects at the ministry level for the Departments of Industry and rural industrial production facilities to implement.

5. Enjoy other preferential policies on land, investment, and science and technology as stipulated in Articles 11, 12, and 14 of Decree No. 134/2004/NĐ-CP.

III. BUILDING PROGRAMS AND PLANS FOR PROMOTION ACTIVITIES

1. The industrial promotion program is a set of focused industrial promotion tasks and projects with specific implementation schedules and solutions, established to meet the requirements for rural industrial development during each five-year socio-economic development plan. The industrial promotion program is detailed through annual industrial promotion plans.

2. The Ministry of Industry builds the national industrial promotion program and plan, and submits them for approval.

3. Annually, based on the approved national industrial promotion program, the Prime Minister's Directive on developing the socio-economic development plan and the state budget estimate, the Ministry of Industry guides localities, relevant sectors, and service organizations to build and register their annual national industrial promotion plans and projects. These plans are submitted to the Ministry of Industry (Local Industry Department) for consolidation, to develop the next year's national industrial promotion plan and register with state consolidation agencies.

Based on available financial resources, the Local Industry Department formulates a specific plan to implement the national industrial promotion work, submits it for approval by the Ministry of Industry, and organizes its execution.

4. Based on socio-economic development planning, industrial development planning within the region, guidance from the Ministry of Industry, and directives from the provincial People's Committee, the Department of Industry leads the development of the local industrial promotion plan, including projects funded by local industrial promotion funds and national industrial promotion projects (for cases where central government budget support is used for local industrial promotion activities). The local industrial promotion project plans are submitted for approval by the provincial People's Committee (for local industrial promotion projects) or passed through for submission to the Ministry of Industry (for projects using central government budget support).

Part III

IMPLEMENTATION

1.The Local Industry Department is the main agency assisting the Minister of Industry in implementing state management functions regarding industrial promotion activities as stipulated in Article 15 of Decree No. 134/2004/NĐ-CP.

2.The Department of Industry assists the provincial People's Committee in implementing state management functions concerning industrial promotion activities and industrial promotion funds at the local level according to Clause 4, Article 15 of Decree No. 134/2004/NĐ-CP, Circular No. 02/2003/TTLT-BCN-BNV dated October 29, 2003, issued jointly by the Ministry of Industry and the Ministry of Home Affairs guiding the functions, tasks, and organizational structure of specialized agencies assisting people's councils in managing industry at the local level, and Circular Jointly Issued No. 36/2005/TTLT-BTC-BCN dated May 16, 2005, issued jointly by the Ministry of Finance and the Ministry of Industry guiding the management and use of public funds for economic activities related to industrial promotion.

To achieve the objectives of industrial promotion activities as stipulated in Article 1 of Decree No. 134/2004/NĐ-CP, the provincial People's Committee, in addition to ensuring the source of funding for local industrial promotion funds as specified in Point d, Clause 4, Article 15 of Decree No. 134/2004/NĐ-CP, has the responsibility to balance and supplement appropriate management staff for industrial promotion work. 3. This circular takes effect fifteen days after its publication in the Official Gazette. During implementation, if there are any difficulties, relevant units should report to the Ministry of Industry for timely supplementation and amendment as necessary.

3.This circular takes effect fifteen days after its publication in the Official Gazette. During implementation, if there are any difficulties, relevant units should report to the Ministry of Industry for timely supplementation and amendment as necessary./.