Decision No. 156/2006/QĐ-TTg Approving the Export Development Program for the 2006-2010 period

Pursuant to …;

Approving the Export Development Program for the 2006-2010 Period

_____________________

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Considering the proposal of the Ministry of Trade at Circular No. 3281/TTr-BTM dated May 29, 2006.

 Pursuant to …;

Article 1Approving the Export Development Program for the 2006-2010 Period (hereinafter referred to as the Program) with the main contents as follows:

I. DEVELOPMENT VIEWS

1. Actively implement the policy of encouraging the export of goods and services to contribute to GDP growth, production development, and attracting suitable labor according to the regulations of the World Trade Organization and international commitments to which Vietnam is a member.

2. Linking the domestic market with foreign markets in the direction of developing the domestic market to create exportable goods, while expanding the export market to stimulate production and the domestic market; expanding and diversifying the export market alongside increasing and intensifying the exploitation of the domestic market to support and reduce risks for exports when the world market fluctuates.

3. Encouraging and mobilizing all resources from various economic sectors and intensifying the attraction of foreign investment to develop export production, gradually creating products with brands that meet the requirements of the world market.

4. Developing imports in the direction of concentrating resources on investment and production development; controlling the level of trade deficit reasonably mainly through measures to increase export turnover, without affecting the balance of payments and macroeconomic stability.

II. DEVELOPMENT OBJECTIVES

1. General Objective

Developing exports with high and sustainable growth rates. Promoting investment in developing export production of goods with competitive advantages and the ability to capture significant market shares in the global market. Shifting the export structure towards promoting the export of goods with high value-added; processed and manufactured products, products with high technological and intellectual content, reducing the proportion of raw material exports; promoting the export of services.

2. Specific objectives

- Striving to achieve an average annual growth rate of 17.5% in merchandise export turnover and reaching approximately 72.5 billion USD by 2010.

- Achieving an average annual growth rate of 16.3% in service export turnover nationwide and reaching approximately 12 billion USD by 2010.

- By 2010, agricultural, forestry, and aquatic product exports will account for about 13.7%, mineral fuel and raw materials group will account for about 9.6%, industrial and high-tech group will account for about 54.0%, and other goods will account for 22.7% in total merchandise export turnover. In terms of geographical structure, exports to the Asian market will account for about 45.0%, the European market will account for about 23%, the American market will account for about 24%, the Oceania market will account for about 5.0%, and other markets will account for about 3% in total merchandise export turnover.

- Moving towards balancing exports and imports in the early years after 2010.

III. MAJOR SOLUTIONS

1. Supporting the business environment

- Expanding the right to engage in business and opening up the market for trading and distributing goods and services according to international commitments to which Vietnam is a member; ensuring the principle of equality in the operation of businesses providing export support services in Vietnam; gradually eliminating monopolies in the provision of services such as postal and telecommunications, energy, insurance, transportation, seaports, logistics... to improve operational efficiency and contribute to reducing business costs for enterprises.

- Facilitating the formation and operation of centers supplying raw and auxiliary materials for export-oriented manufacturing enterprises.

- Reforming customs procedures and modernizing customs, shortening the time for processing import and export clearance procedures.

- Implementing the signing of agreements on international payment through banks with export markets currently facing difficulties in transactions and ensuring payment; signing bilateral agreements and mutual recognition regarding quarantine of animals and plants, food safety standards with partner countries.

2. Improving the financial, credit, and investment policy system to serve exports

- Reforming credit policies according to market mechanisms; improving investment credit policies for developing export production and export credit policies in line with the views and goals of the Program and the principles of the World Trade Organization (WTO) and international commitments to which Vietnam is a member; expanding credit forms and ensuring favorable conditions for accessing capital and guarantee forms at commercial banks; gradually implementing loans for stable-import volume and large market share importers, primarily for agricultural products.

- Effectively implementing the mechanism for refunding taxes for importers of raw materials supplied to export manufacturers.

- Reforming and perfecting financial institutions in the direction of focusing on input factors for export production and trade promotion, creating conditions to enhance the competitiveness of export products; continuing to improve tax, fee, and charge systems; promoting asset and commodity insurance in production, especially agricultural production.

- Managing exchange rates closely to actual rates, in line with the purchasing power of the Vietnamese dong, while having policies to link the Vietnamese dong with convertible foreign currencies beneficially to avoid risks for exports.

3. Enhancing the effectiveness of trade promotion management

- Reforming the mode of operation and management of the Economic Diplomacy Fund to fully utilize its role in market development activities and searching for customers for the business community.

- Diversifying and expanding trade promotion methods.

- Reforming the quality of national trade promotion program planning and implementation; coordinating promotional activities to organize large-scale inter-sectoral programs on trade promotion, investment, tourism-culture, to promote the national image, including through international media channels.

- Intensifying high-level trade promotion activities to promote cooperation, investment, and trade, particularly in attracting multinational corporations to invest in export production sectors.

- Reorganize the system of trade promotion organizations and mechanisms for providing, forecasting market information, investment advisory services, trade, legal advice, and business environments both domestically and internationally for the business community.

4. Training and developing labor resources for certain export-oriented production sectors.

- Develop specific plans and implement vocational training programs to address shortages and improve the quality of labor in export-oriented production sectors facing labor shortages; promote socialization of vocational education and training services; balance the budgetary support for vocational training for certain occupations serving export production according to specific targets.

- Improve mechanisms, policies, and laws in the field of labor and employment to protect legitimate interests and increase income levels and living conditions of workers; encourage businesses to self-train and exchange human resources.

5. Developing Programs for Forecasting and Initiatives to Promote Exports by Product Categories.

- Develop a Program for Forecasting and Analyzing Competitiveness until 2010 for major export goods and services categories.

- Develop and implement initiatives to promote exports by product category (initiated, approved, and implemented by relevant Ministries managing production) based on the development perspective, goals, and guiding solutions of this Initiative, the aforementioned Program for Forecasting and Analyzing Competitiveness, while aligning with the strategic development plan for each product category approved by the Prime Minister up to 2010.

The development of specific industry initiatives must be coordinated and harmonized with the Ministry of Trade, People's Committees of provinces, and related industry holding companies and conglomerates to ensure feasibility and compliance with international commitments Vietnam is a member of; emphasis should be placed on measures to promote collaboration between raw material producers and export manufacturing enterprises through economic policies, thereby fostering long-term alignment of interests and obligations between these two production groups.

6. Limiting the Trade Deficit.

Based on the perspective of the Initiative to reasonably control the trade deficit without affecting the balance of payments and macroeconomic stability, ensuring international commitments Vietnam is a member of, measures to limit the trade deficit are directed as follows:

- Promote growth in exports of goods and services, particularly targeting markets with trade deficits, viewing this as the primary solution to limit the trade deficit.

- On the basis of ensuring competitiveness and market demand forecasts, develop products with comparative advantages to meet domestic needs; innovate production technology and management to conserve raw materials.

- Manage exchange rates and interest rates appropriately in line with economic development trends; limit the trade deficit.

- Control and regulate foreign borrowing and debt.

- Promote service, tourism, labor export, and remittance attraction activities.

- Strengthen attraction of foreign direct investment; ODA assistance and utilize these sources effectively.

IV. IMPLEMENTATION

1. The Ministry of Trade shall be responsible for:

- Coordinating with relevant Ministries, localities, and industry holding companies and associations to uniformly implement the Initiative.

- Organizing the provision of information, monitoring, updating, and evaluating the implementation status of export industry initiatives; compiling, reporting, and proposing necessary policies and mechanisms to promote the implementation of the Initiative and export industry initiatives.

- Leading and coordinating with relevant Ministries to develop the Program for Forecasting and Analyzing Competitiveness until 2010 for major export goods and services categories; leading the implementation of solutions to enhance the effectiveness of trade promotion activities; solutions to limit the trade deficit, and coordinating with relevant agencies to implement other related solutions of the Initiative.

- Leading and coordinating with relevant Ministries to determine industries requiring support and developing proposals for vocational training and human resource support for identified export industries.

2. The Ministry of Finance, the Ministry of Planning and Investment, and the State Bank of Vietnam shall be responsible for:

- The Ministry of Finance shall lead, together with the Ministry of Planning and Investment, the State Bank of Vietnam, and related agencies, to develop specific timelines and implement solutions to support the business environment; complete the financial and credit policy system and investment to serve exports; contents related to solutions to limit the trade deficit; closely coordinate with the Ministry of Trade and related agencies in implementing other related solutions of the Initiative.

3. The Ministry of Labor, Invalids, and Social Affairs shall be responsible for:

Leading and coordinating with relevant Ministries to identify industries requiring support and developing proposals for vocational training and human resource support for identified export industries.

4. Ministries and sectors managing production according to their functions and responsibilities shall be responsible for researching and implementing specialized export initiatives and closely coordinating with the Ministry of Trade and related agencies in organizing and implementing the contents and solutions of the Initiative.

5. Provincial People's Committees shall direct functional agencies at the local level to develop and coordinate with central Ministries and sectors to implement planning, programs for developing production and promoting local product exports based on the export development directions of the Initiative and specialized export initiatives led by production-managing Ministries.

Article 2. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 3. THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.