Decision No. 33/2006/QD-BCN Approving the Strategy for the Development of the Motorcycle Industry in Vietnam until 2015, with a Vision to 2025

Pursuant to …;

APPROVING THE STRATEGY FOR THE DEVELOPMENT OF THE MOTORCYCLE INDUSTRY IN VIETNAM UNTIL 2015, WITH A VISION TO 2025

đến năm 2015, tầm nhìn đến năm 2025

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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 the opinion of the Prime Minister at Official Letter No. 4383/VPCP-CN dated August 11, 2006 of the Office of the Government regarding the assignment to the Minister of Industry to examine and approve the Strategy for the Development of the Motorcycle Industry in Vietnam until 2015, with a vision to 2025;

Based on the proposal of the Director of the Planning Department and the Director of the Machinery, Metallurgy, and Chemicals Department,

DECISION:

Article 1. APPROVES THE STRATEGY FOR THE DEVELOPMENT OF THE MOTORCYCLE INDUSTRY IN VIETNAM UNTIL 2015, WITH A VISION TO 2025, WITH THE FOLLOWING MAIN CONTENTS:

1. Development Orientation

To leverage the resources of all economic sectors, organize production towards specialization, cooperation, and linkage to enhance investment efficiency, competitive capacity in the process of integration, meeting domestic market demand, and promoting exports.

Clause 2. Objectives

a) General Objective:

To build and develop the Vietnamese motorcycle industry into one of the strongest industries in producing and exporting motorcycles, spare parts, and accessories in the region.

b) Specific Objectives:

- Period from 2006 to 2010:

+ Meeting 90% of domestic motorcycle demand, including 100% of common motorcycle demand;

+ Domestic production reaching over 90% of motorcycle spare parts and accessories and 95% of motorcycle engine spare parts and accessories;

+ Establishing a system of manufacturers and suppliers of motorcycle spare parts capable of meeting quality, cost, and post-sales service requirements; a dynamic and professional distribution and service system;

+ By 2010, export common motorcycles, spare parts, and accessories equivalent to 450,000 to 500,000 units, estimated export value reaching 300 million USD;

+ Establishing and putting into operation Research and Development Centers before 2010.

- Period from 2011 to 2015:

Production meeting 95% of domestic motorcycle demand; over 95% of spare parts and accessories; export value of motorcycles, spare parts, and accessories reaching approximately 500 million USD; enhancing the capacity of Research and Development Centers to independently design common and some high-end motorcycles.

- Period from 2016 to 2025:

+ Focusing on promoting production and export of various types of motorcycles, spare parts, and accessories;

+ Producing high-end and specialized motorcycles serving both domestic and export markets;

+ Independently designing and manufacturing engines and motorcycles using clean fuels.

3. DEVELOPMENT STRATEGY

a) DEVELOPING PRODUCTION TO MEET DOMESTIC DEMAND

Investing in developing domestic motorcycle production according to the following directions:

- Developing the production of motorcycle spare parts and accessories with increasingly higher quality, particularly the production of engines, raw materials, and auxiliary materials for the industry;

- Rapidly developing supporting industries such as precision machinery, chemicals, rubber, plastics, electricity, electronics, and new materials;

- Strengthening research and design of new products, enhancing the reputation and competitiveness of Vietnamese motorcycles;

- Researching the production of high-end motorcycles and specialized motorcycles, especially those using clean fuels.

b) PROMOTING EXPORTS

- Implementing trade promotion activities, seeking and tapping export markets, particularly African, South Asian, and Latin American markets;

- Promoting the export of motorcycle products, spare parts, and accessories with competitive advantages, suitable for consumer needs and preferences in each market area;

- Enhancing cooperation and linkage in domestic production to improve competitiveness, researching and designing vehicles suitable for export markets;

- Actively participating in international division of labor and cooperation in motorcycle production, spare parts, and accessories within the region and globally.

c) DEVELOPING SCIENCE AND TECHNOLOGY

Mobilizing all domestic scientific and technological resources, combining enhanced international cooperation, including attracting foreign investment and technology transfer as the driving force for industry scientific and technological development, focusing on the following contents:

- Investing in research and development activities, accelerating the design of new products;

- Transferring advanced and modern technologies;

- Developing domestic technology, combining the absorption of foreign technology;

- Investing in product quality inspection technology.

d) DEVELOPING SUPPLIER SYSTEMS, DISTRIBUTION SYSTEMS, AND SERVICES

- Taking optimal collaboration and cooperation among enterprises in the industry as the basis for reorganizing production facilities;

- Linking and cooperating to form a system of manufacturers supplying motorcycle spare parts and accessories with high competitiveness, moving towards participating in the production and supply of automobile spare parts;

- Building and developing service systems and distribution systems;

- Actively improving management work, enhancing business efficiency, and developing mass production skills in enterprises;

- Enhancing the role and function of the Bicycle-Motorcycle Association as the link between domestic and foreign-invested enterprises in the entire Vietnamese motorcycle industry.

4. IMPLEMENTATION POLICIES AND SOLUTIONS FOR THE DEVELOPMENT STRATEGY OF THE VIETNAMESE MOTORCYCLE INDUSTRY

a) REGARDING INVESTMENT DIRECTION

- Enterprises of all economic sectors with projects complying with all provisions of Decision No. 24/2002/QĐ-BCN dated June 7, 2002 of the Minister of Industry on enterprise standards for motorcycle production and assembly are permitted to invest in motorcycle production and assembly projects on the principle of self-responsibility for investment effectiveness;

- Motorcycles produced and assembled domestically must be registered for industrial property rights protection and quality inspection in accordance with the law;

Products of motorcycles manufactured in Vietnam without registration for industrial property rights protection and quality inspection in accordance with the law shall not be allowed to register for circulation;

- Spare parts for motorcycle assembly, including imported and domestically produced spare parts, must have clear and legal origins and be registered for product quality in accordance with the law;

- Enterprises engaged in motorcycle manufacturing and assembly, and motorcycle engine manufacturing must have an ISO 9001 (2000 version) quality management system certification for their motorcycle manufacturing and assembly systems and motorcycle engine manufacturing systems.

b) On production organization

- Promote cooperation and linkage in production among domestic enterprises and foreign-invested enterprises. Encourage all economic sectors with financial and technological capabilities to participate in motorcycle component and accessory production to establish a system of component and accessory suppliers, gradually integrating component and accessory production for automobiles;

- Encourage joint ventures and linkages to form large motorcycle manufacturing groups with high competitiveness;

- Participate in the production and distribution system within the region.

c) On market

- Establish mechanisms effectively to prevent smuggling and trade fraud and protect industrial property rights in the motorcycle industry;

- Strengthen trade promotion activities, creating favorable conditions for enterprises to increase their market share domestically and penetrate international markets;

- Promote the development of sales and after-sales services;

- Implement demand-stimulating policies for rural and mountainous regions' markets such as improving and upgrading road systems; promoting traffic law education and training networks for driving licenses;

- Support the promotion of Vietnamese motorcycle components and motorcycles through organizing trade fairs and product exhibitions.

d) On science and technology

- Focus investment on research and design technology from science and technology funds for new product development activities;

- Invest in modern testing technologies to ensure rapid, accurate, and comprehensive product quality assessment capabilities;

- Emphasize modernizing existing production technologies and quickly applying new technologies for industry development.

đ) On human resource development

- The State supports the training of staff in design, production technology, and production management at high levels;

- Combine enterprises with educational institutions to build a team of skilled technical workers with production skills, disciplined labor, and effective work;

- Strengthen cooperative programs with countries having developed motorcycle industries.

e) On finance:

- The State encourages investment in new product research and design and R&D activities consistent with Vietnam's commitments to international organizations;

- Implement policies to encourage the development of supporting industries, such as supporting human resource training, providing technological information, organizing trade fairs and product exhibitions;

- Implement policies to encourage Vietnamese investors to invest abroad for motorcycle and motorcycle component production.

g) On state management

- Complete motorcycle standards, component, and accessory standards; regulations on motorcycle inspection suitable for Vietnam's reality and international practices;

- Strengthen intellectual property management and motorcycle product quality inspection;

- Establish mechanisms to encourage investment in supporting industry development, developing satellite enterprises.

Article 2. Implementation

1. The Ministry of Industry shall take the lead:

a) In performing state management functions over the motorcycle manufacturing industry, taking the lead and coordinating with relevant ministries, sectors, and localities to implement this Strategy;

b) In drafting the planning for the development of the Vietnamese motorcycle industry until 2015, considering up to 2025.

2. The Ministry of Industry shall coordinate:

a) With the Ministry of Finance to study and propose financial policy mechanisms for motorcycle exports and motorcycle component and accessory exports; overseas investments in motorcycle manufacturing and assembly;

b) With the Ministry of Trade and related ministries and sectors to strengthen trade promotion and develop export and import management mechanisms suitable for the post-2006 development phase to ensure investor confidence in production development and increased exports;

c) With the Ministry of Science and Technology, the Ministry of Transport, and related ministries and sectors to complete and issue technical standards for Vietnamese motorcycles and motorcycle accessories, regulations on motorcycle and accessory usage periods, and intellectual property management mechanisms for motorcycles consistent with international practices and commitments;

d) With the Ministry of Transport and related ministries and sectors to complete and issue motorcycle inspection standards and regulations suitable for international practices, and circulation management mechanisms for motorcycles suitable for the post-2006 period;

đ) With the Ministry of Public Security, the General Customs Department, and market management agencies to strengthen measures against smuggling, trade fraud, and counterfeit goods in the motorcycle production, export, import, and circulation sectors.

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

Article 4. Ministries, ministerial-level agencies, government-affiliated agencies, provincial People's Committees, centrally governed cities, and related organizations and individuals are responsible for implementing this Decision.