Decision No. 166/2001/QD-TTg On certain measures and policies for developing pig farming for export during the period 2001-2010

Pursuant to …;

On certain measures and policies for developing pig farming for export during the period 2001-2010

To vigorously develop commercial pig farming to meet domestic demand for pork consumption and for export, create employment opportunities for workers, and increase income for farmers. By 2005, export 80,000 tons/year, aiming to exceed 100,000 tons/year of various types of pork.

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

At the request of the Minister of Agriculture and Rural Development,

DECISION:

Article 1. Develop pig farming for export in regions with favorable conditions to ensure environmental safety when raising pigs at appropriate scales. In the initial phase (2002-2005), focus on some regions such as the Red River Delta, North Central Coast, South Central Coast, and Southeastern Region.

Article 2. Provincial People's Committees shall review land planning and usage plans, allocate suitable areas of land away from residential areas for organizations, individuals, and households to lease for building pig farms, growing and producing feed, constructing slaughterhouses and processing facilities for exporting pork, and investing in infrastructure development to support pig farming and pork processing facilities according to state regulations.

Encourage all organizations, individuals, and households from various economic sectors, as well as foreign investors, to develop pig breeding farms that meet export standards.

Article 3. In pig farming export regions, there must be sufficient breeding facilities for grandparent pigs (scale of 300-500 heads) and parent pigs to provide enough breeding stock to meet the needs of pig farming for export in the region.

The Ministry of Agriculture and Rural Development must direct the management of inbred breeding facilities funded by the State to ensure that the genetic resources of this herd are improved and effective.

The Ministry of Agriculture and Rural Development must instruct relevant agencies to ensure adequate supplies of vaccines and medicines, especially for dangerous infectious diseases, to guarantee disease control measures for the pig herd.

Article 4. Plan investments to upgrade vaccine production facilities; initially, upgrade the Central Veterinary Drug Factory (Hoa Duc, Ha Tay) and the drug production facility of Company II Animal Husbandry Supplies; implement Phase 2 of the VIRBAC-VIETNAM joint venture project to achieve self-sufficiency in vaccine production without importing.

Annually, provincial People's Committees must direct veterinary agencies to organize mandatory vaccinations against dangerous infectious diseases as stipulated by the Veterinary Law, aiming to establish disease-free zones for pig farming for export in localities.

The Ministry of Agriculture and Rural Development must promote negotiations to sign agreements or veterinary conventions with countries importing Vietnamese pork.

The Ministry of Agriculture and Rural Development must take the lead in coordinating with provincial People's Committees, related ministries, and agencies to review and assess the current status of livestock feed production nationwide, plan the full utilization of existing facilities, and invest in new facilities where necessary, linked to local raw material sources.

Article 5. Quickly expand the area planted with high-protein corn varieties as raw materials for livestock feed production to reduce production costs.

Guide farmers in pig farming techniques, including the processing of feed from available domestic raw materials.

Provincial People's Committees must establish policies and create favorable conditions regarding location and investment procedures, financial support, etc., for organizations and individuals to improve and upgrade existing processing facilities, and construct new slaughterhouses and processing facilities for exporting pork.

Article 6. Pig farming, slaughtering, and processing facilities for exporting pork must comply with current environmental laws.

Slaughterhouses and processing facilities for exporting pork must be equipped with advanced technology and have technical facilities that meet production process requirements and food safety standards. The Ministry of Agriculture and Rural Development must promptly issue guidelines and specific industry standards for enterprises to follow.

The Ministry of Commerce must support organizations and individuals exporting pork in maintaining existing export markets, continuing to seek new markets, and directing economic counselors abroad to provide timely and comprehensive information about demand levels, preferences, product specifications, prices, payment methods, etc., to exporters and pig farmers.

Article 7. Encourage and facilitate organizations and individuals from all economic sectors to participate in market research and information gathering for pork exports, organizing trade promotion activities.

Slaughterhouses and processing facilities for exporting pork must enter into direct purchase contracts with pig farmers and clearly define responsibilities and rights for both parties. Encourage contract forms that include supplying breeding stock, feed, veterinary services, and technical assistance, and guaranteeing product sales.

The Ministry of Commerce, the Ministry of Agriculture and Rural Development, and the People's Committees of Hanoi and Ho Chi Minh City, along with some provinces, must establish pilot auctions for piglets and pork to help farmers avoid being forced into low prices.

Continue implementing export incentives for various types of pork until 2003. Adjust the incentive rate for the export value of weaned pig meat to 450 dong per 1 USD exported; the Ministry of Finance must supplement this item into the list of goods eligible for export incentives as stipulated in Decision No. 65/2001/QD-BTC dated June 29, 2001.

Investment and credit policies.

Article 8. 1. Regarding investment: The budget (including both central and local budgets) will invest in:

- Providing free vaccines for dangerous diseases in disease-free zones for exporting pigs;

- Upgrading the Central Veterinary Drug Factory (Hoa Duc, Ha Tay) and the vaccine production facility of Company II Animal Husbandry Supplies.

2. Credit according to the national plan.

2. Regarding state plan credit.

Slaughterhouses and pork processing facilities for export are eligible to borrow investment credit funds according to the state plan from the Development Support Fund pursuant to Decree No. 43/1999/NĐ-CP dated June 29, 1999 of the Government and Decision No. 02/2001/QĐ-TTg dated January 2, 2001 of the Prime Minister on policies supporting investment from the Development Support Fund for export production projects and agricultural production projects; they are also eligible to borrow export support fund credits under Decision No. 133/2001/QĐ-TTg dated September 10, 2001 of the Prime Minister.

Increase capital sources for the Bank serving the poor, the National Target Program on Job Creation to provide loans to poor households, pig farming households, and slaughterhouses and meat processing facilities.

3. Regarding commercial credit.

The State Bank of Vietnam directs commercial banks to ensure sufficient capital and convenient loan procedures for household and individual pig farmers to obtain bank loans. Coordinate with the Farmers' Association and the Vietnam Women's Union to expand mutual aid group and savings loan formation models to assist pig farmers in obtaining bank loans.

Encourage enterprises, organizations, and individuals from various economic sectors to implement contractual arrangements with pig farmers concerning product sales, capital, feed, and veterinary drugs.

Article 9. Pig breeding farms, export pigs, slaughterhouses, and pork processing facilities for export are entitled to preferential investment policies under Decree No. 51/1999/NĐ-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Domestic Investment Promotion.

Implement a tariff rate of 0% for imported dried oil used in animal feed production.

The Ministry of Agriculture and Rural Development coordinates with the Ministry of Finance to adjust related quarantine fees for exported pork subject to customer requirements or veterinary agreements or international treaties at the lowest possible level.

Establish a pig export breeding insurance fund based on contributions from breeders and exporters, with initial support from the state budget to mitigate price or disease risks for producers and exporters. The fund shall be managed and utilized by the Pork Exporters Association in accordance with regulations and guidelines issued by the Ministry of Finance.

Article 10. The main organizational forms for pig export breeding are family farms and private enterprises. Encourage family farms raising 50 sows or 100 fattening pigs regularly and above, and foreign investors to invest in suitable scale pig breeding for export that does not cause environmental pollution or affect underground water resources. The Ministry of Science, Technology, and Environment shall issue specific regulations and permissible scales to ensure environmental safety and underground water protection to guide domestic and foreign investors.

Encourage the formation of cooperative economic models and cooperatives providing services such as breeding stock, veterinary care, technology, capital, and product marketing.

The Ministry of Agriculture and Rural Development shall promptly establish a Pork Exporters Association comprising breeders, slaughterhouses, processors, and some scientists to support and protect each other's interests in pork production, marketing, and export.

Article 11. This Decision takes effect fifteen days after the date of signature.

Article 12. The Ministers of Agriculture and Rural Development, Finance, Trade, Science and Technology, Labor, Invalids and Social Affairs, the Governor of the State Bank of Vietnam, the General Director of the Development Support Fund, the Chairpersons of the People's Committees of provinces and centrally-administered cities, and the heads of relevant agencies are responsible for implementing this decision.