Directive No. 24/2003/CT-TTg on Developing Processing Industry for Agriculture, Forestry, and Aquaculture

DIRECTIVE OF THE PRIME MINISTER

On the development of processing industry
for agriculture, forestry, and fisheries

In recent years, the Party and State have issued many policies and guidelines to create favorable conditions for domestic and foreign enterprises of all economic sectors to actively and effectively participate in developing the processing industry for agriculture, forestry, and fisheries. Technological equipment has gradually been modernized and improved towards advanced and progressive directions. The value of processed industrial products has seen rapid annual growth, quality has steadily increased, some products have gradually dominated both domestic and international markets, contributing to export turnover growth, promoting the development of agriculture, forestry, and fisheries.

However, the actual development of the processing industry for agriculture, forestry, and fisheries over the past period still has several shortcomings: planning work for raw material regions and processing facilities is still inadequate; investment is scattered without focus; technological equipment and application of new science and technology are limited; workers' skills do not meet requirements; product quality and competitiveness are not high; production and business efficiency is low.

To address these shortcomings, to make significant progress in developing the processing industry for agriculture, forestry, and fisheries, increase the competitiveness of processed products, meet market demands domestically and for exports, contribute positively to the consumption of agricultural and fishery products, shift the economic structure and labor structure nationwide, accelerate the process of industrialization and modernization, the Prime Minister issues the following directive:

1. Ministries of Industry, Agriculture and Rural Development, Fisheries, People's Committees of provinces and centrally governed cities shall, within their respective duties and authorities, concentrate on directing the completion of reviews, adjustments, supplements, and improvements to overall and detailed planning for processing facilities and raw material regions for each production sector and territorial area, in accordance with the socio-economic development plans of the sector and locality, exploit advantages, and enhance the competitiveness of processed products. At the same time, they must regularly update scientific and technological advancements and market trends to adjust and supplement planning, thereby enhancing the feasibility of planning work.

For sectors that do not yet have planning, they must promptly develop planning and direction for development to be approved by competent authorities. Planning, investment, and construction of processing facilities must be linked to raw material regions, infrastructure investment within planned areas, and gradually form concentrated processing industrial clusters to guide and attract investors to quickly achieve effectiveness; at the same time, planning and construction must comply with the provisions of Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain articles of the Investment Management Regulation issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government.

2. The Ministry of Science and Technology shall take the lead in coordinating with the Ministries of Industry, Agriculture and Rural Development, Fisheries to guide investors in selecting modern technologies and advanced equipment suitable for the quality requirements and competitive capabilities of each type of processed agricultural, forestry, and fisheries products.

Study and build mechanisms and policies for importing or purchasing new and high-tech technologies suitable for the requirements of the processing industry of certain agricultural, forestry, and fisheries products to create models and implement according to production needs; encourage research institutions and training organizations to participate in joint ventures and collaborations with processing facilities to research, apply, and share benefits from the implementation of science and technology, to be submitted to the Prime Minister by the second quarter of 2004.

3. The Ministry of Trade shall take the lead in coordinating with the Ministries of Industry, Agriculture and Rural Development, Fisheries, and People's Committees of provinces and centrally governed cities to guide and support processing enterprises to effectively implement Decision No. 57/2003/QĐ-TTg dated April 17, 2003 of the Prime Minister on the Key Trade Promotion Program; direct guidance for enterprises to actively build brands and trademarks suitable for regional and international economic integration processes.

Organize the provision of market information both domestically and internationally, laws, business customs, and practices in countries and international organizations to farmers, fishermen, and processing facilities for agriculture, forestry, and fisheries.

4. The Ministry of Industry shall take the lead in coordinating with relevant ministries, sectors, and People's Committees of provinces and centrally governed cities to direct investment in developing industrial zones, clusters, small-scale industries, and craft villages with appropriate industries in line with the overall industry planning and socio-economic development of each region and locality.

Develop mechanisms and policies to encourage enterprises in the industry to research and manufacture, supply equipment for primary processing and refining of agricultural, forestry, and fisheries products with guaranteed quality, reasonable costs, and suitability for the scale of raw material regions.

By the fourth quarter of 2003, complete and submit to the Prime Minister for approval the Decree on Encouraging the Development of Rural Industry. Mobilize maximum financial resources for promotional activities, manage and use these funds reasonably to support the development of the processing industry for agriculture, forestry, and fisheries.

5. The Ministries of Agriculture and Rural Development, Fisheries shall coordinate with People's Committees of provinces and centrally governed cities to effectively implement the seed crop, livestock, and aquaculture breeding programs; rapidly multiply seeds with high productivity and quality to meet production needs, especially in concentrated raw material production areas supplying materials to processing facilities. Diversify extension methods for agriculture, forestry, and fisheries to transfer scientific and technological advancements to farmers.

6. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministries of Industry, Agriculture and Rural Development, Fisheries, and the People's Committees of provinces and centrally governed cities to concentrate on directing the implementation of the reorganization and shareholding reform of state-owned enterprises in the agricultural, forestry, and fisheries sectors. There should be policies to encourage various economic components to participate in shareholding investment for the development of agricultural, forestry, and fisheries processing industries, especially for raw material growers participating in shareholding.

Direct the implementation of specific solutions to develop small and medium-sized processing enterprises in accordance with Decree No. 90/2001/NĐ-CP dated November 23, 2001 of the Government on assistance for the development of small and medium-sized enterprises, aiming to maximize existing resources, enhance the dynamism and efficiency of production and business operations of enterprises.

Coordinate with the Ministry of Finance annually to balance appropriate financial resources for activities promoting industry, agriculture, forestry, and fisheries.

Submit to the Prime Minister policies supporting infrastructure investment to meet the requirements for developing raw material production and processing of agricultural, forestry, and fisheries products, particularly for processing facilities located within industrial zones, clusters, small-scale industries, and craft villages directly managed by localities.

7. The Ministry of Finance shall take the lead and coordinate with the Ministries of Industry, Agriculture and Rural Development, Fisheries to study and promptly issue financial support and tax incentives for the development of raw material regions and processing industries in agriculture, forestry, and fisheries. Study and guide depreciation regimes for fixed assets in processing plants in line with seasonal characteristics that have longer periods of downtime than production periods.

Supplement and adjust customs procedures appropriately for the export of processed agricultural, forestry, and fisheries products.

Coordinate with the Ministry of Industry to submit to the Government policies on importing complete sets of equipment, encouraging the use of domestically manufactured machines and equipment meeting quality standards.

8. The Ministry of Labor, Invalids and Social Affairs shall take the lead and coordinate with relevant ministries, sectors, and the People's Committees of provinces and centrally governed cities to submit to the Prime Minister a project on vocational training for the development of processing industries. The State shall have a policy to support the budget for the development of processing industries through the training of management staff and skilled workers, preparing a good labor force for industrial clusters, industrial zones, small-scale industries, and craft villages.

9. The Ministry of Health shall take the lead and coordinate with the Ministries of Agriculture and Rural Development, Fisheries, and Trade to urgently build guiding documents for the implementation of the Food Safety Law and organize its implementation at production and processing facilities.

10. The State Bank of Vietnam shall take the lead and coordinate with relevant ministries and sectors to submit to the Prime Minister credit mechanisms suitable for the seasonal characteristics of the processing industry. Create conditions for all economic components to borrow funds for raw material production, construction, and operation of agricultural, forestry, and fisheries processing facilities.

11. The People's Committees of provinces and centrally governed cities shall coordinate with relevant ministries and sectors, direct functional departments under their jurisdiction to implement tasks:

a. Develop special preferential policies suitable for each locality's conditions to attract domestic and foreign investment and processing industries. Implement special incentives for managers, technicians, and highly skilled workers willing to work at agricultural, forestry, and fisheries processing facilities in remote areas.

b. Direct the development of raw material production and processing according to planning. Organize professional associations based on product groups and create conditions for these associations to operate effectively, linking raw material production with processing to avoid overproduction or shortages of raw materials for processing.

Direct enterprises within their jurisdictions to effectively implement Decision No. 80/2002/QĐ-TTg dated June 24, 2002 of the Prime Minister on policies encouraging the consumption of agricultural products through contracts. Promptly resolve any issues arising during the implementation of contract terms signed between parties.

12. Business associations and industry associations in processing agriculture, forestry, and fisheries need to play their roles in tapping new markets; balancing production and business among members to avoid surpluses, shortages, and price spikes.

Promote the organization of professional associations from raw material producers to processors and consumers, creating links between processing enterprises and between raw material producers and processors and consumers to unify production and consumption directions, avoiding unfair competition.

Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of provincial and centrally governed city People's Committees, and heads of units and related organizations are responsible for implementing this Directive.