Directive No. 29/TTg On organizing well the supply of materials and goods in conjunction with the purchase of agricultural, forestry, and marine products, and promoting the implementation of the two-way economic contract system

DIRECTIVE

ON THE ORGANIZATION OF EFFECTIVE WORK IN SUPPLYING MATERIALS AND GOODS ASSOCIATED WITH THE PURCHASE OF AGRICULTURAL, FOREST, AND MARINE PRODUCTS, TO STRENGTHEN THE IMPLEMENTATION OF THE TWO-WAY ECONOMIC CONTRACT SYSTEM
BIDIRECTIONAL CONTRACTUAL EFFECTIVENESS

In compliance with Directive No. 525-TTg dated November 7, 1978 of the Prime Minister, some sectors and localities made efforts to guide and organize the expansion of two-way economic contracts in 1979, achieving good results. In places where it was done well, there were clear effects in serving and promoting production development, ensuring that the State has a firmer and larger source of goods, while also contributing to improving planning work at the grassroots level and within districts.

However, the overall results across the country were still limited and uneven among different localities. In the Northern region, some provinces and many counties were still struggling in guiding the signing and implementation of contracts. In the Southern region, many places did not follow the central guidance, mostly remaining formalistic, signing but unable to implement, with unclear service effects on production, resulting in little purchase results. In many localities, materials and goods supplied by the State to rural areas were not strictly managed, leading to losses, embezzlement, or being used for bribery; the volume of products purchased did not correspond to the amount of materials and goods exchanged in two-way transactions.

In 1980, to boost agricultural, forestry, and fisheries production and thereby increase the State's control over goods, in conjunction with implementing policies to stabilize the obligation of supplying agricultural products to the State, intensifying the collection of agricultural taxes and debt repayment in kind, it is necessary to effectively manage the supply of materials and goods associated with purchasing agricultural, forest, and marine products, especially expanding the implementation of the two-way economic contract system as clearly stated in Decision No. 65-CP dated March 23, 1978 of the Council of Ministers and Directive No. 525-TTg dated November 7, 1978 of the Prime Minister.

To achieve this, sectors and localities need to grasp and organize the implementation of the following specific tasks:

1. Regarding requirements and methods of two-way exchange of goods: The supply of materials and goods to rural areas must meet the following requirements:

- Serving and promoting agricultural, fisheries, and forestry production, while also serving the living needs of rural workers;

- Being closely linked to the purchase of agricultural, forest, and marine products; it is essential to ensure that the volume of purchased products corresponds to the volume of materials and goods exchanged in two-way transactions.

Based on these requirements, the method of two-way exchange is defined as follows:

- The State will not supply materials and goods in an average manner, as in the past, but according to the principle of two-way exchange. Localities and units that produce well and sell more products to the State will be allocated more than other localities and units (except for particularly difficult regions where the State needs to provide assistance).

- Two-way exchanges are calculated based on corresponding ratios in kind (each type of material and goods sold by the State must purchase a certain volume of products from farmers and fishermen). In terms of value settlement, the two-way exchange within the obligations and contracts under the State-guided price; if exchanging outside the obligations and contracts, it will be based on agreed prices (which can be both sides at the guided price or higher than the guided price but lower than the free market price).

- Actively expand the signing and implementation of economic contracts between the State and farmers and fishermen to make two-way exchanges proactive, ensuring the successful implementation of State plans, but without forcing or limiting direct exchanges not through contracts.

It is necessary to make all sectors, levels, cadres, party members at the grassroots level, and producers understand that two-way exchanges and the two-way economic contract system are fundamental, long-term measures with significant political and economic importance, a socialist economic management system aimed at strengthening the relationship between state economic organizations and collective and individual production sectors in rural areas, between industry and agriculture, contributing to advancing the revolution in rural areas. It is necessary to firmly grasp the requirement of ensuring consistency between the interests of the State and farmers in the exchange of goods and the implementation of the two-way economic contract system. Only focusing on one aspect and emphasizing one side will lead to incorrect policies and actions, harming the interests of both the State and farmers.

In this spirit, state management agencies and economic organizations must delve deep and closely investigate and research to fully understand the actual capacity and requirements for materials and goods of units and producers in each region and season. They must actively prepare necessary sources of materials and goods at the highest level of effort (including both central and local goods) to include in two-way contracts, organizing timely supply to producers according to signed contracts.

On the part of producers, who have been greatly supported by the State in material and technical conditions and supplied materials and goods according to contracts, they must demonstrate their patriotic spirit, sincerely take charge of socialist collective ownership, strive to boost production, and simultaneously fulfill their tax payment, debt repayment, and product sale obligations according to the two-way contracts signed with the State, contributing to building and defending the socialist motherland.

2. Regarding types of materials and goods the State exchanges with farmers and fishermen:

The State supplies main production materials according to the requirements of each sector and profession (agriculture, fishing, salt-making, forestry); fuel and construction materials such as wood, cement, bricks, tiles, roofing materials, and essential consumer goods as specified in Decision No. 65-CP.

Regarding agricultural production materials (including various types of chemical fertilizers, pesticides, veterinary drugs, plant and animal seeds, small machinery and spare parts, improved tools, etc.), apart from the portion allocated for the needs of state farms and stations, the State reserves a large part of chemical fertilizers (nitrogen, phosphorus, potassium, lime) to supply under bilateral contracts. Additionally, a certain amount of nitrogen fertilizer, wood, cement, and other goods are reserved to supply those units and producers who sell additional products outside the plan to the State at prices or exchange rates agreed upon by both parties.

Concerning gasoline and diesel oil used in agriculture and irrigation, the State mainly distributes them to tractor stations and agricultural machinery complexes, pumping stations, milling and processing facilities (both state-owned and collective) to sign contracts for supplying mechanical services to agricultural production units, with payment in kind (rice or other agricultural products). Only a portion is directly supplied to units and individuals with their own vehicles and machines used in production, processing, and product transportation.

Regarding consumer goods: all types of goods sold in rural areas are included in bilateral contracts, except for the following:

- Medicines, paper, notebooks, pens and ink for students, salt (where the masses request, they will be included in the contract);

- Certain common goods still sold freely in state-owned and cooperative trade stores;

- Goods intended for sale to specific groups according to policy and regulations (disabled veterans, families of martyrs, retired officials...).

Based on the general direction above, the State Planning Commission, together with relevant ministries (Agriculture, Materials, Foodstuffs and Food, Internal Trade, Foreign Trade, Fisheries, Forestry, Health), shall specifically determine the list of materials and goods of the State used for bilateral exchanges and the corresponding exchange ratios between each type of material and good supplied by the State and each type of agricultural, forestry, and fishery products purchased. This must be completed and submitted to the Government by January 1980.

In the national plan's distribution index of materials and goods for 1980 for each province and city, it is necessary to separately allocate the volume of materials and goods for bilateral exchanges, matching with the production and mobilization indices of each type of agricultural, forestry, and fishery products. The People's Committees of provinces and cities, based on the distribution index of materials and goods provided by the central government, combined with local exploitation and production sources, shall allocate the indices to counties and guide the People's Committees of counties to strictly direct the distribution according to bilateral contracts, preventing any abuse, embezzlement, collusion, or loss in receiving, transporting, storing, and distributing stages.

Localities receiving materials and goods distributed according to the central plan must ensure increased production, mobilization, and submission of sufficient products to the central government according to the assigned plan indices.

Material and goods funds that central and provincial departments bring down to rural areas need to be unified under the management of the County People's Committee to direct supply organizations at the county level, distribute according to plans and policies, implement well the bilateral economic contracts signed with producers, closely link with purchasing and securing sources of goods. The County People's Committee must bear responsibility before the State and the people for commodity exchange, implementation of bilateral economic contracts, ensuring the purchase of quantities of agricultural, fishery, and forestry products corresponding to the quantities of materials and goods sold by the State. This correspondence is calculated in kind according to the ratio prescribed by the Government.

While comprehensive regulations on the corresponding exchange ratios in bilateral relations have not been issued, the Standing Committee of the Council of Ministers stipulates the exchange ratios between rice and some main materials as follows:

The Standing Committee of the Council of Ministers authorizes the Ministry of Foodstuffs and Food to issue guidelines for the Provincial People's Committees, municipalities, and centrally-administered special zones to determine specific and definite exchange ratios in kind for each county based on this regulation.

3. On the signing and implementation of bilateral contracts in 1980:

In the Northern region and in Southern counties where cooperatives and production groups have been consolidated, and the county administrative apparatus has been strengthened, the form of signing and implementing bilateral contract systems still applies according to Directive No. 525-TTg of the Prime Minister.

In other counties, especially in the former South, where cooperatives and production groups have not yet been consolidated, individual farmers are still numerous, and state management and business organizations at the county level are weak, methods must be simpler and more flexible. For cooperatives and production groups, if conditions are deemed insufficient to sign contracts for the entire year, they may base contracts on production plans with production units for bilateral contracts and procurement sales for each season. For each type of product, payments should be settled promptly as work progresses, then new contracts signed for the next season. Efforts should focus on successfully implementing bilateral contracts in regions and communes producing significant amounts of food and industrial raw materials, particularly in specialized and concentrated production areas to secure substantial food and raw material supplies for industry and exports. For newly established production groups and individual farmers, if producers wish to engage in direct exchanges, selling agricultural products to the State to purchase necessary materials and goods according to the corresponding exchange ratios in kind without signing contracts or dealing with paperwork, county People's Committees may direct such actions without forcing them. In scattered production areas and for other sideline products, state-owned and cooperative trade organizations should organize normal direct purchases and sales with producers at agreed prices and goods, buying and selling in batches without going through bilateral contracts.

For goods with high value, the terms of agreement are not limited to one year and if cooperatives request, long-term contracts can be signed to be implemented over several years.

To assist cooperatives and production corporations to produce in time for the season, the State implements policies of providing loans and advance supplies of materials, which will be repaid to the State by the cooperatives or production corporations with specified products at harvest time.

4. On the organization and direction of implementation:

a. At the central level: The Office of the Prime Minister's Council together with the State Economic Arbitration Council assists the Standing Committee of the Government in directly directing the implementation of this directive.

Ministries directly related to two-way commodity exchange must assign a Deputy Minister to be responsible and arrange specialized staff to assist the Ministry in closely and continuously overseeing and directing this work throughout the sector.

b. At the provincial and municipal levels: The People's Committees of provinces and municipalities directly direct this work, linking it with the direction of building and implementing the State plan at the local level. It is necessary to establish a steering committee for two-way commodity exchange at the provincial and municipal levels, headed by a Vice Chairman of the People's Committee responsible for finance-commerce, and including representatives from relevant sectors with authority. In the office of the People's Committee of the province or municipality, it is necessary to assign some specialized staff to oversee this work. The provincial economic arbitration council needs to be strengthened to have the capacity to guide the signing, inspect, and handle violations of two-way economic contracts.

c. At the district level: The People's Committee of the district directly directs comprehensively and uniformly the two-way commodity exchange and two-way economic contracts within the district. The trade, material supply, and living conditions department of the district needs to be strengthened according to Directive No. 344-TTg dated October 27, 1979 of the Prime Minister to assist the district People's Committee in effectively directing the signing and implementation of two-way contracts within the district. The number of staff previously assigned to the planning department to monitor contracts should now be transferred to the trade, material supply, and living conditions department.

The People's Committee of the district is authorized to handle contract violation cases occurring during implementation according to the guidance of the State Economic Arbitration Council, transferring only relatively large cases requiring severe economic and administrative penalties, or criminal prosecution, to the provincial or municipal economic arbitration council for handling.

Regarding state economic organizations at the district level tasked with supply and purchase duties.

In 1980, in districts, first in key commodity production districts, it is necessary to strengthen and adjust organizational structures towards developing networks within the district area, but consolidating business outlets at the district level, while tightly integrating supply and purchase stages, ensuring strict management of state materials and goods, distributing according to policy and system, to the correct recipients, facilitating producers in accordance with the two-way contracts already signed with them.

Supply organizations of materials and goods and purchase organizations at the district level must be directly directed by the People's Committee of the district in arranging store networks or stations according to economic zones within the district, to facilitate the implementation of two-way contracts, serving production and living needs of producers well. Meanwhile, it is necessary to utilize cooperative retail networks as agents for selling and entrusting purchases for state commerce, while expanding sales outside plans and contracts according to agreed prices.

Relevant ministries and People's Committees of provinces and municipalities need to expedite the delegation of direct direction and management of economic organizations at the district level to the People's Committee of the district; sending good cadres to reinforce their own organizations at the district level, regularly monitoring, guiding, and assisting the district on various aspects, creating favorable conditions for the district to fulfill its tasks.

d. At the commune level: The Chairman of the Commune People's Committee is responsible for supervising, urging, and inspecting the implementation of two-way economic contracts within the commune, relying on existing organizations at the commune and village level to carry out these tasks.

Upon receipt of this Directive, relevant ministries and People's Committees of provinces, municipalities, and centrally-administered cities need to carefully study and promptly develop implementation plans; reporting results monthly and quarterly to the Standing Committee of the Government Council.