Decision No. 69/2007/QD-TTg approves the Project on Developing Processing Industry for Agricultural and Forestry Products in Industrialization and Modernization of Agriculture and Rural Areas until 2010 and with orientations towards 2020.

Pursuant to …;

Approving the project on developing processing industry for agricultural and forestry products

in industrialization and modernization of agriculture and rural areas

until 2010 and orientation until 2020

PRIME MINISTER

___________

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

Considering the proposal of the Minister of Agriculture and Rural Development,

DECISION:

Article 1. Approving the project on developing processing industry for agricultural and forestry products in industrialization and modernization of agriculture and rural areas until 2010 and orientation until 2020 with the main contents as follows:

I. DEVELOPMENT VIEWS

1. Developing processing industry must be linked to restructuring the economic structure of agriculture and rural areas in accordance with the process of industrialization and modernization of agriculture and rural areas.

2. Developing processing industry for agricultural and forestry products must be linked to domestic and international markets and raw material regions to develop products with comparative advantages and competitive capabilities.

3. Investment in building new and upgrading existing processing facilities must ensure modern technological requirements, advanced equipment combined with traditional technology and appropriate scale in relation to raw material regions and products to enhance the quality and competitiveness of processed agricultural and food products, protect the ecological environment, and ensure sustainable and effective development of the processing industry.

4. Developing processing industry for agricultural and forestry products based on mobilizing all resources and participation from all economic sectors.

II. DEVELOPMENT OBJECTIVES

1. General Objective: Building processing industries with high competitiveness; rapidly increasing the added value of products, serving as a basis to promote the development of agricultural and forestry production; creating additional jobs and increasing income for people; producing high-quality products ensuring food safety and hygiene, enhancing competitiveness both domestically and internationally.

2. Specific Indicators

a) Regarding processing of agricultural and forestry products for food

- Rice: total paddy production processed at 100%, of which industrial-scale processing for consumption and export will reach 55% in 2010, and 60-65% in 2020.

- Coffee: total coffee production processed at 100%, increasing wet-processing ratio to 30% in 2010, and 40-50% in 2020; striving to increase coffee powder processing ratio to 10% in 2010, and 20% in 2020.

- Rubber: rubber latex production processed at 100%, product structure for the period 2010-2020: 40% crumb rubber, 40% technical grade rubber, 20% cream rubber. Striving to increase deep processing ratio of rubber products domestically to 30% in 2010, and 40% in 2020.

- Tea: tea bud fresh production processed on an industrial scale will reach 60-65% in 2010, and over 80% in 2020, with product structure: 50% green tea, 50% black tea (of which 50% is CTC, 50% is OTD).

- Sugarcane: sugarcane production processed on an industrial scale will be 90% in 2010, 10% processed manually; by 2020, industrial processing will be 95%, manual processing 5%.

- Vegetables and fruits: vegetable and fruit products processed for preservation will reach over 10% in 2010, and 20-30% in 2020.

- Cashew nuts: cashew nut products processed entirely into cashew kernels, with diversified deep processing of cashew products to meet domestic demand and exports, reaching 20% in 2010, and 30% in 2020.

- Meat: by 2010, 30% of meat production will be processed industrially, reaching 40% in 2020.

- Milk (raw): by 2010, milk production processed industrially will be approximately 1.3 billion liters.

- Vegetable oil: by 2010, refined vegetable oil production will be 783 thousand tons/year.

- Alcohol: by 2010, alcohol production processed industrially will be approximately 145 million liters.

- Beer: by 2010, beer production processed industrially will be approximately 3.5 billion liters.

- Soft drinks: by 2010, soft drink production processed industrially will be approximately 1.6 billion liters.

- Tobacco: by 2010, tobacco production processed industrially will be approximately 3.2 billion packs, and by 2020, approximately 4 billion packs.

- Fiber: by 2010, fiber production processed industrially will be approximately 350 thousand tons, and by 2020, approximately 650 thousand tons.

- Paper: by 2010, paper production processed industrially will be 1.38 million tons, and by 2020, 3.6 million tons.

- Timber and non-timber forest products: by 2010, 50% of timber and non-timber forest product production will be processed industrially, and by 2020, 70%.

b) Average annual growth rate of production value: during the period until 2010 is 10.7%, and the orientation until 2020 is 11.7%.

c) Total export turnover of various agricultural products will reach about 11 billion US dollars by 2010, and about 16.5 billion US dollars by 2020.

III. MAJOR SOLUTIONS

1. On planning

a) The Ministry of Agriculture and Rural Development shall take the lead in coordinating with provincial People's Committees under the Central Government and relevant ministries and agencies to build, review, and adjust detailed plans for each crop and livestock species nationwide in the direction of forming concentrated commodity production areas linked to processing facilities in line with the approved plan for restructuring agricultural, forestry, and fisheries production structures nationwide until 2010 and vision until 2020 as decided in Decision No. 150/2005/QĐ-TTg dated June 20, 2005.

b) The Ministry of Agriculture and Rural Development and the Ministry of Industry, within their respective functions, tasks, and powers, shall build, review, and adjust detailed plans for processing facilities nationwide in the direction that processing facilities must be linked to raw material regions and gradually form processing clusters and industrial zones for agricultural and forestry products for approval by competent authorities.

c) Provincial People's Committees under the Central Government shall build, review, adjust, and organize the implementation of detailed plans for processing facilities and concentrated raw material regions in line with the overall plan of the country and the socio-economic development plan of the locality.

2. On building raw material regions

a) Implementing comprehensive solutions on seeds, cultivation techniques, intensive farming investment, infrastructure construction, and mechanization to improve the productivity and quality of commercial agricultural and forestry products for processing facilities.

b) Provincial People's Committees under the Central Government shall direct processing facilities and levels of development to establish raw material regions according to approved plans to ensure sufficient raw materials for processing facilities to reach design capacity; directing to create conditions for processing facilities to build investment projects to develop raw material regions, and implementing policies to invest in infrastructure (irrigation, transportation,...) for concentrated raw material regions.

c) Factories and processing facilities must have plans for developing raw material regions that are consistent with approved master plans; they must have specific policies and solutions to support raw material producers to develop production, increase productivity and quality of agricultural and forestry products, and enter into sales contracts with producers.

3. On science, technology, and technology transfer

a) The Ministry of Agriculture and Rural Development and People's Committees of provinces and centrally governed cities shall effectively direct and implement Decision No. 17/2006/QĐ-TTg dated November 20, 2006.

b) Focus on investing in research and development of small and medium-sized production lines suitable for raw material regions, ensuring modern technology and advanced equipment. Rapidly develop domestic machinery, gradually increasing the proportion of self-production in integrated processing equipment for agricultural and forestry products of small and medium sizes. Establish auxiliary industries producing packaging materials to serve the processing industry of agricultural and forestry products. Invest in equipment and technology to increase the ratio of deep processing products, enhancing the value of agricultural and forestry products for export.

c) Strengthen agricultural extension work (state agricultural extension, business agricultural extension), training, guidance, and model building to quickly transfer new seeds, advanced cultivation methods, and scientific and technological progress to farmers.

d) Develop and promulgate intensive farming procedures suitable for each ecological region, organize quick guidance and transfer into production, invest in intensive farming to increase crop and livestock yields and quality.

đ) Factories should promptly complete modern production management and quality systems at factories, ensuring food safety standards, and aligning with global economic integration.

4. On investment and credit

a) State budget support: import and new breeding; investment in water reservoirs, major irrigation works (primary and secondary canals) and transportation within concentrated raw material regions. Provincial People's Committees should plan to use local government budgets to invest in infrastructure outside factories and processing facilities and outside raw material regions.

b) Implement policies to mobilize capital from other legitimate sources together with state support to build comprehensive infrastructure (land improvement, transportation, irrigation...) for concentrated raw material regions, increasing productivity, quality, and reducing transportation costs. Invest in irrigation for industrial crops and fruit trees where conditions and water sources are adequate.

c) Encourage factories and processing facilities to support farmers in investing in mechanization from land preparation to harvesting and storage, to increase labor productivity and address labor shortages.

5. On consumption and trade promotion

a) The Ministry of Agriculture and Rural Development, in collaboration with relevant ministries and sectors, will review, adjust, and supplement policies and implement commitments with the Association of Southeast Asian Nations (ASEAN) in agriculture, particularly food security, trade promotion, veterinary services, plant protection; commitments with the World Trade Organization (WTO) on agriculture, quarantine of animals and plants, investment, and services; the Plant and Animal Health Inspection Agreement (SPS) with countries importing Vietnamese agricultural products.

b) Localities, factories, and processing facilities continue to effectively implement signing sales contracts for agricultural products for producers through contracts under Decision No. 80/2002/QĐ-TTg dated June 24, 2002.

c) Support and guide enterprises to expand export markets for agricultural and forestry products; coordinate with localities to organize trade promotion activities, establish and manage the quality of agricultural goods, guide enterprises to register and protect brand names, and promote trade.

d) Improve and expand the information system of the sector, including production and market information, to assist entities and producers in developing production according to market demand and effectively selling products.

6. Continue to innovate and reorganize agricultural and forestry production

a) Create conditions for household economies to develop towards encouraging households with capital, labor, and production experience to develop commodity production and farmstead economies. Support and create favorable conditions for poor and disadvantaged households to develop production, eliminate hunger, reduce poverty, and become prosperous.

b) Effectively implement policies to promote the rapid development of cooperative and private economies, especially small and medium-sized enterprises in rural areas, to promote the transformation of production structures and labor structures.

c) State-owned corporations and localities should promptly complete the restructuring, innovation, and development of agricultural and forestry farms according to Resolution 28 of the Politburo and Government Decrees; effectively implement the restructuring, innovation, and development of state-owned enterprises.

d) Encourage domestic and foreign organizations and individuals to invest in agriculture and forestry, especially small and medium-sized enterprises in food processing in rural areas.

đ) Enhance the role and effectiveness of associations to effectively perform functions such as consumption, market information, trade promotion, and science and technology, ensuring benefits for businesses, farmers, and consumers.

7. On land policy

a) Effectively implement the Land Law 2003, promptly complete the consolidation and exchange of land plots, issue certificates of land use rights in the fields of agriculture, forestry, aquaculture, and focus on directing the implementation of policies to resolve residential and production land for ethnic minorities in place.

b) Have policies to encourage and support farmers to implement production planning, concentrate land to form centralized commodity production regions; encourage the development of some potential industries: industrial crops, fruit trees, livestock breeding, poultry raising, etc.

c) Continue to vigorously implement land allocation and forest contracting in forestry; adjust policies to encourage people's participation in protecting natural forests and developing economic tree planting.

VI. IMPLEMENTATION

1. The Ministry of Agriculture and Rural Development and the Ministry of Industry shall coordinate with the People's Committees of provinces and centrally governed cities and relevant ministries and sectors to direct and implement the contents of the Project on developing processing industries for agricultural and forestry products during the process of accelerating industrialization and modernization until 2010 and subsequent years.

2. The People's Committees of provinces and centrally governed cities shall take the lead and coordinate with the Ministries of Agriculture and Rural Development, Industry, and other relevant ministries and sectors to organize and direct the implementation of this Project within their respective jurisdictions.

Article 2. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 3. THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.