Decision No. 28/2002/QĐ-TTg on approving the overall planning for the development of the Alcohol - Beer - Beverage Industry in Vietnam until 2010.

Pursuant to …;

Regarding the approval of the Comprehensive Plan for the Development of the Alcohol - Beer - Beverage Industry

of Vietnam until 2010

____________

PRIME MINISTER

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

Considering the proposals of the Ministry of Industry in the reports numbered 1783/TT-KHĐT dated May 8, 2000 and 5523/CV-KHĐT dated December 26, 2001; the Ministry of Planning and Investment in the letters numbered 7355 BKH/VPTĐ dated November 28, 2000 and 8737 BKH-CN dated December 24, 2001, as well as the opinions of relevant ministries and sectors on the approval of the Comprehensive Plan for the Development of the Alcohol - Beer - Beverage Industry in Vietnam until 2010,

DECISION:

Article 1Approve the Comprehensive Plan and some development measures for the Alcohol - Beer - Beverage Industry in Vietnam until 2010, with the main contents as follows:

1. Objectives:

- Building the Alcohol - Beer - Beverage Industry in Vietnam into a strong economic sector. Utilizing domestic raw materials to the maximum extent to develop high-quality products, diversify types, improve packaging and design; strive to reduce costs, enhance competitiveness, meet domestic demand, produce exportable products, increase state revenue, and firmly integrate into regional and global economies.

- Building the Vietnam Alcohol - Beer - Beverage Corporation into a strong economic group, playing a leading role in the production of alcohol and beer industries; serving as the core in producing high-quality beverages.

- Encouraging various economic sectors to participate in the production of high-quality soft drinks from domestic raw materials to meet domestic consumption needs and for export.

2. Orientation for Development:

a) On technology and equipment: Modernize technology, gradually replace existing technology and equipment with advanced and modern technology and equipment from around the world, ensuring quality, food safety, and environmental standards according to Vietnamese and international regulations to ensure that products have increasingly higher competitive capabilities in both domestic and foreign markets.

b) On investment: Focus on investing in large-scale factories; fully utilize the capacity of production facilities equipped with advanced technology and equipment; at the same time, expand the capacity of some existing factories. Diversify investment forms and capital mobilization methods, encourage the mobilization of domestic economic components' capital, issue bonds and stocks; accelerate the process of shareholding for state-owned enterprises that do not need to hold 100% equity.

c) On scientific research and training: Plan and build laboratories and research centers; implement experimental applications of science and technology in production; simultaneously plan and train a cadre of scientific and technical workers to meet the industry's development requirements.

3. Main indicators:

a) On beer:

- Production volume:

In 2005: 1.2 billion liters;

In 2010: 1.5 billion liters.

- The Vietnam Alcohol - Beer - Beverage Corporation plays a key role in enhancing the reputation of Vietnamese beer brands, ensuring production and consumption reach a market share of 60% to 70% domestically and aiming for exports.

- Concentrate on investing in large-scale factories with efficient business operations, strictly manage food safety, ensure quality and cost levels acceptable to consumers, specifically:

+ Construct a new beer factory in Cu Chi belonging to Saigon Beer Company with an annual capacity of 100 million liters (phase 2002-2005) and the potential to expand to 300 million liters annually in subsequent years.

+ After 2005, construct a new beer factory belonging to Hanoi Beer Company with an annual capacity of 100 million liters and the potential to expand to 200 million liters annually in subsequent years.

- For businesses with foreign invested capital: strictly follow the investment permits, fully exploit the designed capacity. In the coming years, no consideration will be given to issuing joint venture establishment permits or increasing production capacity of existing facilities.

b) On wine:

- Production volume:

In 2005: 250 million liters;

Year 2010: 300 million liters.

- The Vietnam Alcohol - Beer - Beverage Corporation plays a key role in producing traditional specialty wines and high-quality wines to meet domestic demand and for export; appropriate measures should be taken to gradually reduce handcrafted wine production.

- Strengthen state management in wine production and consumption.

- Focus on investing in the modernization of equipment and technology, intensifying the production of high-quality industrial wine, and minimizing harmful components.

- Propose cooperation or joint ventures with foreign countries to produce certain high-quality wines using domestic raw materials, thereby reducing imports.

- From 2001 to 2005, the Hanoi Wine Company and the Western Vietnam Wine Company will invest in updating technology and equipment so that each company reaches a capacity of 5 million liters of ethanol and 10 million liters of various wines annually, doubling this capacity in the subsequent phase.

c) On beverages:

In 2005: 800 million liters;

In 2010: 1.1 billion liters.

- The Vietnam Alcohol - Beer - Beverage Corporation plays a key role in improving product quality and reducing costs; at the same time, encourage various economic components to participate in producing beverages from domestic raw materials, prioritizing increased production capacity for fruit juices, without investing in expanding the production capacity of carbonated beverages made from imported flavorings.

Article 2. Implementation organization; responsibilities of relevant ministries, sectors, the Vietnam Alcohol - Beer - Beverage Corporation, and related localities

- Propose to the Prime Minister to supplement additional members to the Board of Directors of Vietnam Coal-Mineral Industries Group.

- Lead and coordinate with relevant ministries, sectors, the Vietnam Alcohol - Beer - Beverage Corporation, and provincial people's committees to establish a roadmap for shareholding; identify a list of state-owned enterprises holding controlling shares in the Alcohol, Beer, and Beverage industry; at the same time, direct the reorganization of existing alcohol, beer, and beverage production facilities.

- Arrange new investment projects in accordance with the planning of each region and locality.

- Direct the Vietnam Alcohol - Beer - Beverage Corporation to cooperate with localities in reorganizing alcohol, beer, and beverage production facilities equipped with advanced technology but operating inefficiently, failing to meet quality and food safety standards, and unable to fulfill annual tax obligations. Small-scale factories with outdated technology should be studied for business redirection, shareholding, leasing, dissolution, or bankruptcy according to regulations.

- Coordinate with relevant ministries and sectors to promulgate documents related to the production and business activities of alcohol, beer, and beverages.

- Based on the goals and indicators in the industry plan, direct implementation, organize periodic evaluations of the plan's execution, and propose adjustments to the plan in accordance with specific economic and social conditions nationwide.

2. The Vietnam Alcohol - Beer - Beverage Corporation:

- Lead and coordinate with localities to reorganize alcohol, beer, and beverage production and business operations throughout the industry; establish some member units as pioneers in technological and equipment innovation, rationalizing production, reducing costs, and improving product quality in provinces and cities nationwide.

- Cooperate with localities to study the cultivation of barley domestically to replace imported raw materials, gradually producing export products.

3. Ministries and sectors: Planning and Investment, Finance, Trade, Agriculture and Rural Development, Science, Technology and Environment, Health, State Bank of Vietnam, Vietnam Fund for Development shall perform their functions and coordinate with the Ministry of Industry and Vietnam Beverages Corporation:

- Study and propose support policies to exploit investment capital for production projects and raw material areas of the alcohol, beer, and beverage industry.

- Issue quality standards for alcohol, beer, and beverages and coordinate with localities to organize product quality inspections, ensuring food safety standards, environmental hygiene, and industrial property laws.

- Develop regulations against dumping, substandard goods, counterfeit products, smuggling, and promotional activities, advertising, marketing, and labeling of alcohol, beer, and beverage products circulating in the domestic market.

- Strengthen management through business registration, quality certification, and ensure full tax obligations for medium and small-scale alcohol production and business establishments.

- Examine and handle according to the Law on Foreign Investment for foreign joint ventures producing alcohol, beer, and beverages that have been suffering prolonged losses.

4. People's Committees of provinces and centrally-administered cities:

- Direct local alcohol, beer, and beverage manufacturing enterprises to comply with the industry's development goals and orientations. Focus on stable development of local raw material areas to ensure production materials; simultaneously increase employment and improve workers' living standards.

- Coordinate with the Ministry of Industry, related ministries and sectors, and Vietnam Beverages Corporation to reorganize enterprises and manage production and business activities of the Alcohol, Beer, and Beverage sector within the jurisdiction of provinces and centrally-administered cities.

Article 3. This Decision takes effect fifteen days from the date of signature. Previous provisions contrary to this Decision are abolished.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally-administered cities, and Vietnam Beverages Corporation are responsible for implementing this Decision.