Decision No. 266/2003/QĐ-TTg on approving the Project for Developing Export Markets for Goods during the 2004-2005 Period

DECISION

Regarding the approval of the Project on Developing Export Markets for Goods during the Period 2004-2005

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Considering the proposal of the Minister of Trade at the report No. 307/TTr-BTM dated October 23, 2003 and the report No. 3950/TM-PC dated August 28, 2003,

Pursuant to …;

Article 1. Approves the Project on Developing Export Markets for Goods during the Period 2004-2005 of the Ministry of Trade with the following objectives, directions for development, and solutions to develop export markets:

1. Objectives and Directions for Market Development:

- The target is to achieve a minimum annual growth rate of 12% in exports during the period 2004-2005; simultaneously, every opportunity should be seized and all resources utilized to exceed this growth rate.

- Maintain an average annual growth rate of 12% in exports during the period 2004-2005 for Asian, European, and Oceania markets; for North American, African, and Latin American markets, the rate should be 15%-17% annually.

- Key markets that need to intensify trade promotion activities during the period 2004-2005 include the United States, EU (old and new member states), Japan, China, South Korea, ASEAN, Russia, the Middle East, Africa, and Latin America; border trade markets.

2. Solutions to Develop Export Markets:

a) To contribute to enhancing the competitiveness of exported goods, the Ministry of Finance shall take the lead, in coordination with the Ministry of Trade, the Ministry of Planning and Investment, and the State Bank of Vietnam, to review, adjust, and supplement financial mechanisms, credit policies, investment, fees, and charges in the direction of: concentrating long-term credit for expanding production capacity, especially in auxiliary industries producing raw materials for export goods; expanding commercial credit guarantees, paying particular attention to new technology projects producing export goods and effective export contracts; gradually implementing credit support for large and stable importers of Vietnamese goods, primarily within the region; narrowing the scope of preferential policies for export volume bonuses towards focusing on key competitive sectors and those using significant domestic raw materials and supplies; reducing direct financial support and shifting to supporting input factors, technological, and scientific solutions directly serving export production; proposing specific measures to the Prime Minister before January 31, 2004.

b) Strengthening negotiation efforts to open up markets and proactively accelerating the process of international economic integration.

The Ministry of Justice shall coordinate with relevant ministries and agencies to adjust or draft new regulatory documents to expedite negotiations for accession to the World Trade Organization (WTO).

The Ministry of Trade shall take the lead, coordinating with the Ministry of Foreign Affairs and the Ministry of Justice, to study and propose policies for signing, ratifying, approving, or joining international agreements to expand markets and integrate into the global economy; reviewing signed trade agreements and proposing amendments, supplements, or new agreements consistent with the process of international economic integration, with emphasis on adjusting the legal framework concerning new member states of the EU.

Delegates the Minister of Trade to establish a Research and Negotiation Board on Free Trade Agreements (FTAs) led by the Ministry of Trade, including representatives from relevant ministries and agencies, to study global FTA trends and propose strategies for our participation and implementation of FTA commitments. The Ministry of Trade shall draft and promulgate regulations governing the operations of this board.

c) Enhancing the effectiveness of market information, forecasting, and trade promotion work:

- Information Work:

Central state management agencies, particularly the Ministries of Trade, Planning and Investment, Industry, Agriculture and Rural Development, Fisheries, must regularly and periodically conduct foreign market forecasts every three months, six months, and annually. Forecast content should focus on market conditions, supply-demand relationships, price fluctuations domestically and internationally, providing recommendations for businesses and agricultural households to reference in business and production planning.

Agencies responsible for market forecasting have the duty to disseminate market forecasts through mass media (television, newspapers, radio...), on their websites, and in publications and special issues.

Encourage industry associations and enterprises to organize their own research and forecasting of foreign markets based on national priority trade promotion programs each year and the business strategies of each sector approved by competent authorities.

- Scientific Research Serving Market Development:

The Ministry of Science and Technology and other ministries and agencies, when assigning or tendering scientific topics, should prioritize and allocate funds for topics directly related to developing foreign markets, researching distribution channels and consumption patterns, foreign export-import legal systems, demands and preferences, business practices, and solutions for potential markets; resolving trade disputes.

Agencies managing scientific topics have the responsibility to provide and disseminate their own foreign market research results upon request.

Encourage research on foreign markets not funded by the budget based on commissioned contracts from business organizations and units.

- Trade Promotion Work:

The Ministry of Commerce shall take the lead and coordinate with relevant ministries, sectors, Vietnamese representative offices abroad, industry associations, state-owned enterprises, and the Vietnam Chamber of Commerce and Industry to review and assess the implementation of key trade promotion programs in 2003; adjust these programs and propose key programs for the period 2004-2005 that closely align with actual conditions, linked to the development orientation of export markets during the period 2004-2005, while using budgetary support funds more effectively.

The Ministry of Commerce shall take the lead and coordinate with the Ministry of Finance to review the current mechanism for supporting key national trade promotion programs and propose measures to improve this policy to the Government in the first quarter of 2004.

Ministers of relevant ministries, Chairmen of provincial people's committees directly under the central government shall direct and support enterprises and industry associations to be proactive in market search activities, trade promotion, brand development, and establishment to penetrate the distribution systems of importing countries. The Ministry of Finance shall consider adjusting marketing, advertising, promotional cost standards according to the Law on Corporate Income Tax to ensure that enterprises can implement these tasks well.

Based on the requirements and tasks of developing overseas markets, the Ministry of Commerce shall take the lead and coordinate with industry associations and related agencies to study and submit to the Prime Minister in the second quarter of 2004 a general plan for building material and technical infrastructure, including commercial centers, exhibition centers, warehouses, and the operating mechanisms of these facilities to enhance trade promotion activities abroad; promptly organize the centers approved by the Prime Minister.

On the basis of annual investment, trade, and tourism promotion programs approved by the Prime Minister, the Ministry of Foreign Affairs shall take the lead and coordinate with the Ministries of Planning and Investment, Commerce, Culture and Information, Finance, General Department of Tourism, and related agencies to build and implement an overall program to promote Vietnam's image on international markets, including comprehensive areas such as investment, trade, culture, tourism, and introducing Vietnam's economy in general.

d) Strengthening work to recognize and respond to trade protection policies and non-tariff barriers on overseas markets:

The Ministry of Commerce shall cooperate with relevant ministries, sectors, and industry associations to strengthen research on non-tariff barriers and trade protection policies of other countries to develop flexible and appropriate countermeasures; establish a system of legal information and data; enhance advisory services and widely disseminate the legal and business practices of other countries to assist industry associations and enterprises in resolving trade disputes.

The Ministry of Commerce is the leading and coordinating agency for related activities (collecting, processing, analyzing information, and conducting government-level negotiations) during the process of handling major trade disputes affecting domestic production industries.

Ministries, sectors, provincial people's committees, industry associations, and enterprises shall closely cooperate with the Ministry of Commerce to seek and implement appropriate measures in accordance with Vietnamese law, international practice, and principles of international economic organizations.

Each industry association must regularly monitor issues that may arise for export markets, organize training for staff with legal and trade expertise; establish industry financial resources to handle matters promptly.

đ) Consolidate and enhance the effectiveness of operations of Vietnamese trade representative offices abroad.

The Ministry of Commerce shall consult with relevant ministries and sectors to develop systematic and specialized plans for training a cadre of trade representatives; establish specific criteria for recruitment and appointment of these cadres.

The Ministry of Commerce shall consult with the Ministry of Home Affairs, the Ministry of Foreign Affairs, and the Ministry of Finance to complete the project on establishing and strengthening trade representative offices abroad for the period 2004-2005, aiming to reorganize and supplement staffing for trade representative offices in key markets; open additional trade representative offices in countries where diplomatic missions already exist and branch offices in necessary regions; study salary systems and funding for operational activities to meet the needs of foreign-based representative offices; submit to the Prime Minister for decision in the first quarter of 2004.

e) Develop and apply electronic commerce to expand export markets:

The Ministry of Commerce shall finalize the draft of legal regulations on electronic transactions to report to the Government for submission to the National Assembly in 2004.

Implement the establishment of centralized internet addresses (regional portals) to guide transaction needs, trade promotion, and product promotion online. Funding for setting up and maintaining portals for the first three years will be supported from the budget for promoting trade and boosting exports of the Export Support Fund, thereafter transferred to industry associations or the Trade Promotion Agency under the Ministry of Commerce to operate on a revenue-to-cost basis.

The Ministry of Commerce shall take the lead and coordinate with the Ministry of Posts and Telecommunications and the Ministry of Finance to develop a proposal to implement in 2004.

Other contents related to electronic commerce work, the Ministry of Commerce shall proactively discuss with the Ministry of Posts and Telecommunications to implement according to its authority.

g) Implement research on commodity trading platforms for agricultural products:

The Ministry of Commerce discusses with associations and state-owned enterprises in the agricultural product industry that have concentrated production, stable operations, and experience in foreign trade transactions to conduct in-depth research on commodity trading platforms and futures trading; organize learning from foreign experiences and participate in testing futures trading for agricultural products abroad. Based on the trial results, the Ministry of Commerce will summarize experiences, establish trading procedures, conditions, and related operational work, draft a proposal to submit to the Prime Minister to organize the implementation of this work in 2005.

Article 2. Implementation

1. The Minister of Commerce coordinates with relevant ministries, sectors, provincial people's committees under the central government to organize and implement the contents of the "Plan for Developing Export Markets for the 2004-2005 Period" and the export market development measures stipulated in this Decision; monitor and supervise the implementation of the Plan; propose necessary solutions, report to the Prime Minister for decision-making, creating conditions for effective implementation of the Plan and annually summarize and report to the Prime Minister on the implementation of the Plan.

2. The Ministers of directly related ministries follow up on the progress of implementing the Plan and coordinate with the Ministry of Commerce to direct the implementation of the contents related to their respective industries as outlined in the Plan as well as in the export market development measures set forth in this Decision.

Article 3. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees are responsible for implementing this Decision.