Decision No. 17/2002/QĐ-TTg on orientations and solutions for developing industrial cotton during the period 2001-2010

Pursuant to …;

On the orientation and solutions for developing industrial cotton during the period 2001-2010

 industrial cotton period 2001-2010

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PRIME MINISTER

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

Pursuant to the proposal of the Minister of Agriculture and Rural Development and the Minister of Industry,

DECISION:

Article 1: The orientation and solutions for developing industrial cotton during the period 2001-2010 aim at:

1- Providing raw materials for the textile industry, reducing the import of cotton fiber, saving foreign currency, and ensuring self-sufficiency in production.

2- Contributing to the restructuring of agricultural production towards efficiency, creating additional jobs for about 400,000 workers in agriculture and tens of thousands of workers in processing industries, increasing income for farmers, and alleviating poverty.

3- Ensuring sustainable development of the textile and garment industry, capable of competing with domestic and international markets.

4- By 2005, the area will reach approximately 115,000 hectares, with a yield of 80,000 tons, meeting 50% of the raw material needs for the textile industry, and by 2010, the area will reach approximately 230,000 hectares, with a yield of about 180,000 tons, meeting 70% of the raw material needs for the textile industry.

Article 2: Development viewpoint

1- Mobilizing all resources nationwide, quickly expanding the planting area of industrial cotton in regions with suitable land and climate conditions to gradually replace imported cotton fiber and eventually ensure sufficient domestic cotton fiber demand.

2- Developing cotton must follow the direction of building concentrated areas, using hybrid seeds for dry season cultivation with irrigation, applying advanced technology and new technology to increase productivity, quality, reduce product costs, and increase income per unit area compared to other crops under the same conditions.

3- Developing cotton must be linked with processing industries in the region.

4- Diversifying products from cotton such as: yarn, oil, animal feed to increase revenue supporting cotton cultivation.

Article 3: Main solutions

1- Regarding regional planning: developing industrial cotton in conjunction with cotton fiber processing facilities according to the direction of forming concentrated, intensive production areas with irrigation. In the short term, focus on coastal provinces of South Central Vietnam: Ninh Thuan, Binh Thuan, Phu Yen, Khanh Hoa; Central Highlands provinces: Gia Lai, Dak Lak, some provinces in Southeastern Vietnam, and some provinces in the Mekong Delta.

2- Regarding infrastructure investment: prioritizing investment in water conservancy projects (including upgrading existing projects, completing ongoing projects, and constructing new projects) in concentrated, specialized, intensive irrigation areas, specifically:

Water conservancy project Dau Tieng, system of water conservancy works and reservoirs: Song Long Song, Phan Ri - Phan Thiet, Song Luu, Song Ca Giay, Song Quao (constructing new Song Luu reservoir), Song Dinh 3, Ta Po, Tan Giang, Dinh Binh, Dai Ninh, Iasoup Upper, Iasoup Lower, Ealaou, Eamo, Krong Pa, AJunpa, Dong Tron.

Reinforcing irrigation channels for existing water conservancy works.

3- Regarding investment in processing facilities: Investment in cotton processing facilities must be linked to raw material areas, modern equipment and technology to ensure the production of high-quality products that meet the requirements of the textile industry.

- Upgrading existing cotton processing plants, constructing new cotton processing plants, to reach a capacity of about 470,000 tons of cotton seeds per year by 2010.

- Constructing several cotton seed oil pressing plants with a total capacity of about 200,000 tons per year.

4- Regarding science and technology: Concentrating on research and breeding, selecting, and importing hybrid and pest-resistant cotton varieties with high yields and good quality to meet the production needs of farmers.

- Investing in research and production facilities for cotton seeds including original seeds, parent seeds, and F1 hybrids; importing high-yielding and high-quality original seeds.

- Completing the technology for producing F1 hybrid cotton seeds, establishing a network to ensure sufficient seeds for production needs.

- Research Institutes of Cotton Nha Ho, Southern Agricultural Science and Technology Institute, Mekong Delta Rice Research Institute, Southern Fruit Tree Research Institute, West Highland Agricultural and Forestry Science and Technology Institute, National Agricultural Genetics Institute, and the Central Research Center for Agricultural Science (under the Vietnam Agricultural Science and Technology Institute) must have programs and plans for researching and implementing technological advancements, scientific and technological progress in cotton from seeds, cultivation, processing, especially the creation of cotton seeds using biotechnology to provide high-yielding and high-quality seed sets suitable for each region's ecological conditions to meet production needs.

- Widely implementing integrated pest management (IPM) measures for cotton.

- Strengthening agricultural extension work for cotton towards socialization of agricultural extension services including state agricultural extension, enterprise agricultural extension, voluntary agricultural extension... to quickly transfer new technologies and techniques for growing cotton and processing.

- Effectively conducting quality inspection and testing of raw materials, classifying cotton fibers to ensure the quality of domestically produced cotton fiber fabrics, serving the increasingly high demands of the people and export textile production.

5- Regarding investment and credit:

a) State budget support for investment:

- Building water conservancy projects including reservoirs, main structures, main canals, and transportation systems according to approved projects;

- Investing in upgrading the Cotton Research Institute, seed production facilities, and facilities for producing F1 hybrid cotton seeds;

- Scientific research and technology promotion, transferring technological advancements;

- Providing original seeds and parent seeds to seed production facilities to supply to farmers;

- Supporting the price of commercial seeds for farmers for two years, the first year at 60% and the second year at 50% of the current market price.

b) State development investment capital for projects to upgrade, renovate technology, equipment, and construct new cotton processing plants, cottonseed oil pressing plants, livestock feed production, and fertilizer from cottonseed oil.

c) The State Bank of Vietnam directs commercial banks and credit organizations to lend to cotton growers in accordance with Decision No. 67/1999/QĐ-TTg dated March 30, 1999 of The Prime Minister on certain credit policies to serve the development of agriculture and rural areas; coordinate with the Farmers' Association and the Vietnam Women's Union to expand credit-saving organizations and mutual loan support groups to facilitate farmers' access to loans and ensure effective use of capital and timely repayment of debts.

d) Banks serving the poor, the National Target Program on Poverty Reduction and Employment shall prioritize allocating capital for industrial cotton-growing regions to provide loans for people to plant cotton, contributing to poverty reduction.

6- On taxes and funds: The Ministry of Finance shall study adjusting the input tax deduction rate when calculating value-added tax for purchasing cotton seeds; exempting or reducing land use tax for land used for planting industrial cotton.

Establish a fund to support domestic cotton prices when world cotton prices decline. The fund shall be participated in and contributed to by organizations and individuals involved in purchasing and processing cotton. The contribution level for organizations and individuals engaged in purchasing and processing cotton shall be 2% of the value of purchased cotton seeds, and for those using cotton, it shall be 2% of the value of imported raw cotton fiber within the year, but not exceeding 50% of the resulting profit. The fund's resources shall be deducted from production costs of enterprises. The fund shall be managed by the Cotton Association, and the Ministry of Finance shall lead the collaboration with the Ministry of Industry and the Vietnam Textile and Garment Corporation to issue regulations governing the management and use of the fund.

7- On consumption and prices:

a) Member enterprises of the Vietnam Textile and Garment Corporation must enter into contracts to purchase all raw cotton fiber produced by local processing and pressing units. Processing and pressing units must enter into contracts to purchase cotton seeds from producers or cooperatives. Contracts must clearly define the responsibilities and rights of both parties, and set a minimum price for cotton seeds that benefits producers, which should be announced at the beginning of the crop season to ensure producers feel secure in their production. Encourage organizations and individuals to implement two-way service contracts for materials (seeds, fertilizers, pesticides...) and capital advances, agricultural promotion, and cotton seed sales to producers, gradually linking production, processing, and consumption throughout the production process.

b) The Ministry of Trade shall cooperate with relevant ministries and sectors to establish a market information system, forecasts, and trade promotion for textile, garment, raw cotton fiber, and cottonseed oil products, aiming to form reasonable supply-demand relationships and prices for these goods, ensuring the interests of both producers and consumers; actively promote trade and regional and global integration.

8- On developing economic components; encourage and create favorable conditions for organizations and individuals from various economic components to invest in growing cotton, consuming, and processing industrial cotton.

a) The Vietnam Cotton Company and state-owned enterprises in localities shall continue to reform their organizational structures and management towards providing services for seeds, materials, technology, and cotton consumption and processing.

b) Gradually form cooperatives among cotton growers to support each other in material and technical services and cotton consumption.

c) Establish a Cotton Association including cotton growers, consumers, processors, and raw cotton fiber importers to protect the interests of members.

9- On organization and implementation guidance:

a) Provincial People's Committees, based on the overall planning for the cotton industry, shall be responsible for guiding specialized agencies and enterprises in their jurisdiction to review, develop detailed plans, and build specific projects; approve according to their authority and organize the implementation of provincial industrial cotton planting plans.

b) The Ministry of Agriculture and Rural Development shall perform its state management functions over cotton production, leading the collaboration with relevant ministries, sectors, and provincial People's Committees to develop planning and development plans for the industrial cotton sector nationwide.

c) The Ministry of Industry shall manage state affairs in the textile and garment sector, directing textile and garment enterprises to have the responsibility to consume raw cotton fiber for processing units.

Article 4: THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Article 5: The Ministers of Agriculture and Rural Development, Planning and Investment, Industry, Finance, Trade, Science and Technology, and Environment, the Governor of the State Bank of Vietnam, the Director-General of the Land Administration General Department, the Director-General of the Development Support Fund, the General Director of the Vietnam Textile and Garment Corporation, the Chairpersons of the People's Committees of provinces and centrally-administered cities, and the heads of related agencies shall be responsible for implementing this Decision.