Circular No. 1-TS/TT guiding the implementation of policies for collective economic units and households engaged in production, operation, exploitation, breeding, processing, and post-harvest services in the fisheries sector.

CIRCULAR

GUIDELINES FOR IMPLEMENTATION OF POLICIES TOWARDS COLLECTIVE ECONOMIC UNITS AND HOUSEHOLDS ENGAGED IN PRODUCTION, EXPLOITATION, PROCESSING, AND POST-HARVEST SERVICES IN THE FISHERIES SECTOR ISSUED BY THE MINISTRY OF FISHERIES NUMBER 1-TS/TT ON APRIL 11, 1990

BASED ON DECREE NO. 181-HĐBT OF NOVEMBER 8, 1989 OF THE COUNCIL OF MINISTERS ON THE ADOPTION OF THE MODEL REGULATIONS FOR FISHERIES COOPERATIVE SOCIETIES; DECREES NO. 28 AND 29-HĐBT OF MARCH 9, 1988 OF THE COUNCIL OF MINISTERS ON POLICIES TOWARDS COLLECTIVE ECONOMIC UNITS AND HOUSEHOLDS ENGAGED IN INDUSTRIAL AND SERVICE PRODUCTION.
THE MINISTRY OF FISHERIES GUIDES THE IMPLEMENTATION OF REGULATIONS ON POLICIES TOWARDS COLLECTIVE ECONOMIC UNITS AND HOUSEHOLDS ENGAGED IN PRODUCTION AND BUSINESS ACTIVITIES IN FISHERIES EXPLOITATION, CULTIVATION, PROCESSING, AND POST-HARVEST SERVICES AS FOLLOWS:

I. COLLECTIVE ECONOMY

A. GENERAL PROVISIONS

1. The collective economy in fisheries is a socialist economic component and must continue to be consolidated, reformed, and improved in quality to fulfill its core role in the fisheries sector.

2. Collective economic units in fisheries are self-managed entities of cooperative members, with production assets and other capital under various forms of ownership, independently deciding all issues related to production and business activities, and bearing financial responsibility for income and losses.

3. Collective economic units in fisheries have the obligation to strictly comply with laws and policies of the State, pay taxes according to regulations, and implement the accounting and statistics decrees of the State.

4. Collective economic units in fisheries must register their business operations and operate within the scope and types of products registered. Any changes require re-registration.

All necessary procedures and conditions for business registration must be fulfilled:

- They must submit an application detailing their business activities, fishing gear, and product types. Business registration is approved by the People's Committee of the district, town, or city.

- For fishing activities, they must complete vessel inspection procedures according to the regulations of the fishing vessel inspection authority and register fishing vessels and gear with the competent authority responsible for implementing the fisheries resources protection and development decree.

- For processing activities involving mass production, they must register product quality with the product measurement and quality control agency and undergo inspections based on industry or state standards.

5. Occupational structure, product types, and necessary conditions:

a) Fisheries exploitation

All types of fisheries exploitation currently applied in Vietnam, new imported or newly created methods not contrary to the provisions of the decree and circulars guiding the implementation of the fisheries resources protection and development decree.

- Fishing vessels must meet all technical safety standards set by the fishing vessel inspection authority.

- Fishing gear must comply with established standards suitable for the provisions of the decree and circulars guiding the implementation of the fisheries resources protection and development decree.

- Development of fisheries exploitation activities should follow the planning directions of the industry and localities in marine areas and fishing grounds.

b) Aquaculture

- On all types of water bodies (saltwater, brackish water, freshwater), if permitted by the management authorities through agreements between parties, to produce products for domestic consumption and export.

- Must respect the overall planning of the industry and locality, avoiding adverse impacts on other economic sectors such as agriculture, water conservancy, construction, and transportation.

c) Fisheries processing

Engage in processing all products according to orders from state-owned enterprises, collectives, etc., meeting domestic demand and export requirements, while also organizing trials for new products.

- Products produced must meet quality standards and continuously improve their utility value.

d) Post-harvest services

Engage in production and service activities in shipbuilding, repair, machinery and equipment supply, raw material and material procurement for fisheries exploitation, cultivation, and processing.

- Must respect the overall planning of the industry and locality regarding the division of labor and restructuring of the post-harvest service network to avoid duplication and enhance service efficiency.

B. SPECIFIC PROVISIONS

1. Regarding plans and economic contracts, supply of materials, and product sales.

- Planning work in cooperatives is carried out through economic contracts, and cooperatives have the right to sign economic contracts with any production and business organizations at central and local levels.

- The relationship between state-owned economic organizations and cooperatives is based on equal economic contracts, benefiting both parties.

- Cooperatives can organize additional exploitation of domestic raw materials and supplies needed for production, such as wood, bamboo, reed, rattan, willow, and rattan, following the general regulations and procedures of the relevant ministries.

- Cooperatives can seek additional supplies from joint ventures and collaborations with other economic units within and outside the locality, and purchase necessary raw materials and supplies from the market.

- Cooperative members can directly receive or authorize the cooperative management board to receive materials, machines, equipment, and foreign currency sent from abroad by their relatives according to state regulations.

- Cooperatives can sell products according to signed contracts, and any remaining products can be sold on the open market.

Use their own products to form joint ventures and collaborations with other economic units within and outside the locality to obtain materials and goods for production and living needs.

Open retail outlets to sell their products in markets that offer the best benefits.

2- On capital sourcing and utilization

- Cooperatives may raise capital from state-owned enterprises, collective organizations, and private entities in various forms such as loans, joint ventures, share contributions, and calling shareholders for production and business activities. The lenders, contributors, and shareholders shall enjoy interest or profit sharing according to the agreement between the cooperative and the lenders and contributors.

- Cooperatives may borrow funds from relatives of members residing abroad through foreign trade banks for the purpose of developing production and business activities and are permitted to repay such loans with lawful foreign currency resources of the unit or with exportable goods produced by the cooperative in accordance with state regulations.

- Cooperatives have full authority to flexibly utilize their own deposited capital for production and living purposes but must ensure the principle of repayment and accounting records.

- Cooperatives must annually review and adjust the value of fixed assets, actual depreciation value, and remaining value of fixed assets in line with new price levels, creating favorable conditions for the reproduction and modernization of fixed assets. The depreciation value of fixed assets that can be recovered may be converted into products or physical items (fish, gold...) to align with fluctuations in prices and currency (if any).

- Cooperatives may choose the most convenient banking institution within the province, city, or special economic zone to open accounts and have the right to use various types of funds available in their deposit accounts, withdraw money from their deposit accounts at the bank based on production and business needs, and borrow funds from the bank to develop production and business activities under the credit conditions of the bank.

3- On import and export

The State encourages cooperatives to develop exploitation, breeding, processing... of aquatic products for export and grants them the right:

- To use foreign currency in accordance with state regulations and to use lawful foreign currency resources to enter into contracts with import-export organizations to purchase raw materials, supplies, machinery, equipment, goods... as required by production and business activities.

- To voluntarily join joint venture or production linkage organizations for export processing; to directly engage in business cooperation with Overseas Vietnamese or foreigners in accordance with investment laws.

4- On science and technology

Cooperatives have the right:

- To sign contracts to send cadres and members for training, enhancement, and advanced studies in state schools at the expense of the cooperative and in compliance with the regulations of the Ministry of Higher Education, Vocational Training, and Secondary Specialized Education.

- If registering with state functional agencies regarding progressive scientific and technological achievements of the unit and individuals, they will retain copyright and receive awards according to the general regulations on inventions and patents and will be rewarded by using units according to state policies.

- High-quality products and export products of cooperatives shall enjoy preferential policies of the State similar to those of state-owned enterprises.

II- FOR FAMILY ECONOMY

Family economy is an economic component within the household of cooperative members, state employees, and constitutes part of socialist society's economy. Developing family economy effectively will support the consolidation of socialist production relations in the fishing industry.

Cooperative members, state employees, during non-working hours for collective enterprises, factories, and offices, and retired cooperative members, state employees who have reached retirement age or are unable to work due to health reasons, may purchase production materials to engage in extraction, breeding, processing, service... industries not classified as individual or private businesses and are considered family economy.

The State and collectives encourage and assist cooperative members and state employees to invest in developing family economies in extraction, breeding, processing, agriculture, forestry, salt production, small-scale handicrafts... industries in various forms including joint ventures with state-owned enterprises, collectives, private entities, and individuals...

For coastal fishing cooperatives with agricultural land, land allocation solutions should be provided for member families where conditions permit, including land, forest, water surface... allocation according to general regulations to further develop family economy.

Those engaged in family economy producing and trading in extraction, processing of aquatic products... must apply for business registration approved by the People's Committee of the commune or ward and fulfill tax obligations, and if exempted from business taxes, it shall follow state regulations.

Those engaged in family economy have rights and obligations:

- To purchase raw materials and supplies from the State, collectives, and individuals for production and processing;

- To accept subcontracting orders, processing products... with state and collective business organizations...

- To borrow funds and open accounts at a bank.

- To freely sell products outside the contracted quantities and other products made.

- To sign contracts with production units exporting goods or business organizations for export to sell or entrust export of products made by themselves, purchase materials for re-production including imported materials.

- Purchasing materials, selling products, or accepting subcontracting orders for processing products... must be documented by invoices or economic contracts in accordance with the contract system prescribed by the State.

- The People's Committee of the commune or ward has the responsibility to supervise and assist those engaged in family economy to comply with laws and state regulations, but not to interfere in their legitimate production and business activities.

III- IMPLEMENTATION

- The People's Committee of the province, city, or special zone directs the Fisheries Department or Agriculture, Forestry, and Fishery Department to implement this Circular.

- The Fisheries Department or Agriculture, Forestry, and Fishery Department assists the People's Committee of the province, city, or special zone in building specific plans and measures to implement this Circular.

- The implementation of this Circular should be coordinated with the implementation of the model cooperative charter for fisheries issued pursuant to Decree No. 181-HĐBT dated November 8, 1989 of the Council of Ministers and Circular No. 2 dated February 18, 1989 of the Ministry guiding the implementation of the model cooperative charter for fisheries.

- During the process of organizing and directing the implementation of difficult issues and obstacles within the scope, authority, and responsibility of any sector or level, that sector or level must resolve them. Issues requiring research, amendment, or supplementation shall be reported promptly to the Ministry.

- This Circular shall be disseminated to cadres, members of fisheries cooperatives, and production and service units of the sector.

- This Circular replaces Circular No. 4 dated June 8, 1988 of the Fisheries Department.