Decision No. 18/2007/QD-BCT Approving the Adjustment and Supplement to the Comprehensive Plan for the Development of the Beer - Wine - Beverage Industry in Vietnam until 2010

Pursuant to …;

Approves the adjustment and supplementation of the Comprehensive Development Plan for the Beer - Wine - Beverage Industry of Vietnam until 2010

Industry of Beer - Alcohol - Beverages of Vietnam by 2010

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 MINISTER OF INDUSTRY

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

Pursuant to Decree No. 92/2006/NĐ-CP dated September 7, 2006 of the Government on the establishment, approval, and management of comprehensive development plans for the economy and society.

After reaching consensus with the Ministries of Planning and Investment; Finance; Science and Technology; Construction; Trade; and the State Bank;

At the proposal of the Director of the Consumer Industry and Food Department,

DECISION:

Article 1Approves the adjustment and supplementation of the Comprehensive Development Plan for the Beer - Wine - Beverage Industry of Vietnam until 2010, with the main contents as follows:

1. Development Goals

a) General Objective

- Building the Beer - Wine - Beverage Industry of Vietnam into a strong economic sector. Encouraging the use of domestic raw materials, developing high-quality products with reputable brands, ensuring food safety, diversifying product types, improving packaging and design; striving to reduce costs, enhance competitiveness, meet domestic demand, and promote exports, increase revenue for the state budget, and firmly integrate into regional and global economies;

- Encouraging the formation of strong enterprises and economic groups based on joint ventures and collaborations among beer - wine - beverage production enterprises of all economic sectors.

b) Specific Objectives

- By 2005, producing 1,530 million liters of beer, 83 million liters of wine, and 911 million liters of beverages;

- By 2010, producing 3,500 million liters of beer, 145 million liters of wine, and 1,650 million liters of beverages.

2. Product Development Planning and Layout

a) Product Planning

- Beer Production: Concentrating investment in large-scale breweries equipped with modern technology, achieving efficient business operations, and meeting environmental standards set by the state. Beer products must comply with food safety conditions, ensure quality, and have prices acceptable to consumers;

- Wine Production: Investing in modern wine production facilities to improve the quality of traditional and specialty wines to meet domestic demand and export requirements. Encouraging businesses to cooperate and form joint ventures with foreign investors to produce high-quality wines using domestic raw materials. Implementing appropriate measures to gradually reduce the production of harmful handcrafted wines;

- Beverage Production: Encouraging all economic sectors to invest in producing beverages from domestic raw materials, prioritizing fruit-based beverages.

b) Regional and Territorial Planning

The layout of breweries, wineries, and beverage plants across the country is divided into six regions (with attached appendices). Implement balanced development according to territorial strategies, meeting the socio-economic development strategy at each stage and the economic development planning of each locality.

3. Capital Requirements for Investment Projects

Total investment capital for the Beer - Wine - Beverage Industry from 2005 to 2010 is 34,690 billion VND (with attached appendices).

Where:

- Capital for beer production: 31,809 billion VND;

- Capital for wine production: 807 billion VND;

- Capital for beverage production: 2,074 billion VND.

The State encourages all domestic and foreign economic sectors to mobilize capital for the construction of breweries, wineries, and beverage plants to achieve the goals of the plan.

4. System of Measures and Policies to Implement the Plan

a) Technological Measures

- For new factory projects: Emphasizing investment in large-scale factories with advanced equipment and technology;

- For expansion and deepening projects: Fully implementing technological modernization, replacing outdated technology and equipment with advanced and cutting-edge technology and equipment from around the world;

- Encouraging enterprises through joint ventures and collaborations to transfer technology to produce equipment (beer, wine, and beverage production equipment) domestically that meets modern technical requirements. Encouraging the use of domestically manufactured equipment equivalent in quality to imported equipment for investment projects;

- Proactively establishing raw material areas (barley, fruits...) through collaboration with farmers and localities to build orchards and other raw material plantations. Encouraging farmers to apply scientific advancements in seed selection, cultivation, and processing to increase the yield and quality of barley and fruits to meet production requirements.

b) Capital and Investment Measures

- Concentrating investment in large-scale factories over 100 million liters/year, fully utilizing and expanding the production capacity of factories with advanced equipment and technology, accelerating the renovation, expansion, and modernization of small-scale factories with outdated equipment;

- Diversifying investment forms and methods of capital mobilization, encouraging the mobilization of capital from domestic and foreign economic sectors through bond issuance, stock issuance, joint ventures, and collaborations;

Promoting the shareholding reform of state-owned enterprises, including state-owned holding companies. Encouraging joint-stock companies to list on the stock exchange;

c) ofMeasures concerning science and training

- Planning and building research institutes and laboratories with the necessary conditions to conduct experimental research and apply new science and technology to production;

- Establishing industry quality standards consistent with national food safety standards. Regularly inspecting compliance with food safety standards and environmental protection regulations as stipulated by law;

- Cooperating with domestic and international training institutions to train managers, technical staff, and skilled workers to meet the development needs of the industry. Combining short-term and regular training, integrating new training with refresher courses.

d) Management solutions

- Proceed with the shareholding reform of the Vietnam National Beer-Aliquors-Water Corporation and the Saigon Beer-Alcohol-Water Joint Stock Company in stages, gradually reducing state-owned capital;

- Reorganize state-owned beer, liquor, and beverage factories that are not operating effectively through mergers, shareholding reforms, production and business redirection, sales, leasing, and other forms;

- Strengthen strict quality control, food safety, environmental protection, tax obligations, and enhance management through business registration, quality certification, and tax compliance for enterprises;

Article 2. Implementation

1. The Ministry of Industry shall take the lead and coordinate with relevant ministries, sectors, and People's Committees of provinces and centrally-run cities to direct the development of the industry according to the adjusted master plan that has been approved;

2. People's Committees of provinces and centrally-run cities shall detail the overall development master plan for the Vietnam Beer-Alcohol-Beverage Industry within their respective areas; participate with ministries and sectors in monitoring and supervising the implementation of this master plan to ensure consistency and uniformity with the overall socio-economic development master plan of the locality;

3. The Vietnam Beer-Alcohol-Beverage Association shall cooperate with the Ministry of Industry and localities to organize the dissemination and popularization of the master plan; guide member enterprises in complying with the master plan and other legal regulations;

Article 3. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of People's Committees of provinces and centrally-run cities, and related units are responsible for implementing this Decision./.