Decision No. 966/QD-TTg Approving the Business Plan for the Period 2006-2010 and Development Orientation until 2020 of Vietnam Rubber Corporation

Pursuant to …;

Regarding the approval of the business production plan for the period 2006-2010

and development orientation until 2020 of Vietnam Rubber Corporation

______________________

PRIME MINISTER

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

Considering the proposal of Vietnam Rubber Corporation at the report No. 723/TTr-CSVN dated March 29, 2006 and Report No. 1374/TTr-CSVN dated June 13, 2006.

Pursuant to …;

Article 1. Approve the business production plan for the period 2006-2010 and development orientation until 2020 of Vietnam Rubber Corporation with the main contents as follows:

I. Objectives

1. Shift the product structure towards developing a synchronous and reasonable industry-agriculture-service sector, aiming to increase the value of rubber products and expand investment into other manufacturing and service sectors.

2. Implement diversification of investment forms, including multiple ownerships (including foreign investment) to better exploit land advantages, enhance the competitiveness of rubber products, and align with the overall planning for the rubber industry until 2010 and orientation until 2020.

3. Focus on implementing the main tasks of planting, processing, and exporting rubber, prioritizing investment in raw material rubber and deep processing, while also developing other production and business activities such as cattle breeding, industry, and services to support rubber planting, processing, and export.

The average revenue growth rate for the period 2006-2010 is 27%/year, reaching 12%/year by 2015, and the orientation until 2020 is 11%/year.

II. Development Plan for Major Production Sectors:

1. On Cultivation:

a) Rubber Trees

Invest in intensive cultivation and effective exploitation of existing rubber tree gardens; continue planting new trees in areas with suitable conditions and replanting according to intensive methods using new varieties to increase productivity.

For the period 2006-2010: plant approximately 70,000 hectares both domestically and internationally. Total area will reach about 290,000 hectares, of which the stable commercial rubber area will be around 180,000 hectares. Average yield will be 1.9 tons/hectare; in the Southeast region, it will be 2 tons/hectare, and in the Central Highlands and South Central Coast regions, it will be 1.8 tons/hectare. Harvested rubber production will reach about 340,000 tons.

For the period 2011-2015: complete the program of planting approximately 130,000 hectares (including internationally), reaching a total area of about 380,000 hectares by 2015, of which 320,000 hectares will be domestic, with production reaching about 400,000 tons. Orientation until 2020 is to reach 600,000 tons.

b) Coffee: Develop Robusta coffee in areas with suitable conditions through intensive investment, reaching an area of about 1,000 hectares; production will be from 3,000 to 4,000 tons of branded products. Construct a soluble coffee processing plant with a capacity of about 500 tons/year to supply the domestic market and for export.

c) Cattle Breeding: Develop breeding of dairy cows, beef cattle, and milk cows; continue maintaining and developing high-yield herds in subsequent stages; by 2010, the herd size will reach 35,000 heads, and the orientation until 2020 is to reach about 100,000 heads.

2. On Industry:

a) Rubber Processing Industry:

Invest in increasing the capacity of existing processing facilities, building new ones where there is sufficient raw material according to the plan to ensure the processing of all rubber latex harvested by the entire Vietnam Rubber Corporation and part of other economic components. By 2010, the total processed and consumed production of the entire corporation will reach about 440,000 tons of rubber, and the orientation until 2020 is to reach between 650,000 and 800,000 tons.

b) Wood Processing Industry:

Invest in upgrading the capacity of wood processing (mainly recycled rubber wood) to reach 70,000 cubic meters of refined wood and 80,000 cubic meters of rough wood by 2010. The orientation until 2020 is to achieve a finished wood production capacity of about 170,000 cubic meters/year. Invest in new medium-density fiberboard (MDF) factories where there is sufficient raw material to reach a capacity of 100,000 to 150,000 cubic meters/year by 2010 and an orientation until 2020 is to reach about 350,000 cubic meters/year.

c) Production of Rubber Industrial Products:

Continue maintaining and developing existing industrial products such as sports balls (5 million units), sports shoes (2 million pairs), sports shoe soles (10 million units);

Vigorously develop two types of products with high demand for natural rubber: automobile tires and conveyor belts; based on market supply-demand balance and specific conditions of the corporation to determine production targets for each period. Develop various products: elastic threads for the garment and fashion industries, medical gloves, rubber mattresses, and rubber accessories in industrial products.

d) Other Industries:

Participate in investing in essential manufacturing industries serving domestic economic development needs such as cement, hydropower, steel, etc., in accordance with the development plans for these industries until 2010 and orientation until 2020.

3. On Infrastructure Development, Construction, and Real Estate Business: Invest in infrastructure for 5-6 industrial zones with an area of 2,500-3,000 hectares, build residential areas with a scale of 300-500 hectares, construct office buildings, housing, and apartments with a scale of 60,000-80,000 square meters/year. After 2010, annually invest in developing an average of 300 hectares of industrial zones, 50-70 hectares of residential areas, 20,000-30,000 square meters of apartments and office buildings.

4. Service Sector and Others: Diversify and expand the scale of financial services, tourism services, improve the quality of services such as investment funds, finance, banking, hospitals, vocational training, scientific research related to the rubber industry, and strongly invest during the period 2015.

III. Main Solutions:

1. On Land: Conduct a review of the land planning and usage plan of the entire Vietnam Rubber Corporation in accordance with Decree No. 170/2004/NĐ-CP dated September 22, 2004 of the Government on continuing the restructuring, reform, and development of state-owned farms. Strictly manage and effectively utilize allocated or leased land. Minimize the conversion of established high-yielding rubber areas to other crops or uses. The recovery of land for rubber planting due to change of land use purpose must have a land use plan approved by competent authorities, and compensation must be made according to the market value of the rubber garden.

2. Regarding the market: strengthen trade promotion, maintain existing markets; exploit and open new markets; prioritize the domestic market, especially the rubber industry which uses natural rubber raw materials.

3. Regarding restructuring, innovation, and development of enterprises: Implement restructuring, innovation, and development of member enterprises according to the roadmap approved by the Prime Minister under Decision No. 240/QĐ-TTg dated March 4, 2003, while intensifying efforts during the period from 2006 to 2010, with a focus on the shareholding reform of affiliated units. For new rubber planting projects, joint-stock companies must be established to act as the main investors for implementation. Implement comprehensive measures to ensure that the Vietnam Rubber Industry Group operates effectively and sustainably immediately after approval by the Prime Minister.

4. Regarding sources of capital: Develop specific solutions to mobilize various sources of capital for investment including: capital formed from the shareholding reform of rubber companies (including issuing shares), profits and depreciation of rubber companies, domestic and foreign loans for development. The self-owned capital of the Corporation must account for at least 30% of the total investment capital of each project. For projects in remote areas, ethnic minority regions, and border areas, depending on annual budget conditions, there will be support for infrastructure investment to develop rubber and stabilize the livelihoods of local ethnic minorities.

5. Developing human resources: Formulate plans to recruit labor to meet production development requirements, prioritizing recruitment of local ethnic minority workers, particularly those in the local area. Continuously train and provide supplementary technical knowledge and improve skills for workers, especially those directly involved in tapping rubber, and local ethnic minority workers to enhance productivity, quality, and efficiency of work.

Develop training programs and retraining plans for management cadres and specialized vocational staff (including both domestic and international training) to improve their professional competence, management skills suitable for market mechanisms and international economic integration.

Invest in upgrading specialized schools and vocational training institutions of the Corporation to have the capacity to train professional staff and skilled workers to serve the entire industry.

6. Reform the system of contracting and wage payment in enterprises under the Corporation, implement long-term stable land allocation contracts for workers, including wage contracting (V) and production cost contracting (C2), allocate contracts for protection and transportation of latex to factories for workers, while closely managing the technical process of exploitation to ensure the quality of the plantation.

7. Strengthen agricultural extension services; forestry extension services; apply scientific and technological progress to production; rapidly implement the transfer and use of new high-yield varieties for new rubber planting (including imports), adopt advanced cultivation methods, improve the tapping process to increase the average yield throughout the Corporation to 2 tons/hectare/year. Invest in upgrading the Vietnam Rubber Research Institute to have sufficient equipment and research staff to conduct hybridization and selection of high-yielding varieties to meet production requirements.

Article 2. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, People's Committees of provinces and centrally-administered cities, and related agencies are responsible for implementing this Decision./.