Decision No. 1137/QD-TTg dated August 03, 2017 of the Prime Minister on approving the project for enhancing the competitiveness of Vietnam’s exports by 2020 with the orientations by 2030

THE PRIME MINISTER

Decision No. 1137/QD-TTg datedAugust 03, 2017 of the Prime Minister on approving theproject for enhancing the competitiveness of Vietnam’s exports by 2020 with the orientations by 2030

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to Decision No. 2471/QD-TTg dated December 28, 2011 by the Prime Minister approving the goods import and export strategy for the 2011-2020 period with the orientations towards 2030;

Pursuant to Decision No. 950/QD-TTg dated July 25, 2012 by the Prime Minister introducing the Action Program in implementation of the import and export strategy for the 2011-2020 period with the orientations towards 2030;

At the request of Minister of Industry and Trade;

DECIDES:

Article 1.The Project for enhancing the competitiveness of Vietnam s exports by 2020 with the orientations by 2030 is given approval herein. The Project includes the following main contents:

I. VIEWPOINTS AND OBJECTIVES

1. Viewpoints

a) Enhance the competitiveness of Vietnam’s exports in conformity with the viewpoints, objectives and solutions for promoting the goods export defined in the goods import and export strategy for the 2011-2020 period with the orientations towards 2030.

b) Conform to the economic restructuring associated with the renovation of growth models so as to meet the industrialization and modernization requirements.  

c) Conform to international treaties as well as take full advantage of free trade agreements to which Vietnam is a signatory so as to consistently implement the Government s policies for the active international integration.

d) Boost the competitiveness of advantageous exports or potentially advantageous exports on the basis of making the best use of the existing comparative advantages as well as create new comparative advantages by applying science and technology advances, especially high technologies and achievements of the fourth industrial revolution.

dd) Enhance the competitiveness of exports associated with the enhancement of the competitiveness of enterprises and the national competitiveness.

e) Enterprises play a decisive role in enhancing the competitiveness of Vietnam’s exports; the Government shall facilitate enterprises in adopting relevant mechanisms and policies and business associations shall provide necessary assistance and establish a link between member enterprises.

2. Objectives

a) General objectives

Enhance the competitiveness of Vietnam’s exports in the global markets for the 2016-2020 and 2021-2030 periods; raise the export value in 2020 to triple the amount in 2010, gain a trade balance in 2020 and achieve a trade surplus in the 2021 – 2030 period.

b) Specific objectives

- By 2020:

+ The quality and the added value of products with export advantages are improved.  

+ The added value of exports of agriculture and fishery products is expected to increase on average by 20%. The export of agriculture and fishery products into developed countries and regions such as EU, Japan, Korea, etc. is expected to be gradually improved.

+ The average export revenue growth is expected to reach 8% per year during the 2016-2020 period.

+ Every year, at least 100 products of exporters are marked national brands and 200 enterprises are awarded the national quality prize.

+ Supporting industries are developed to meet demand for raw materials, auxiliary materials and spare parts of the businesses with export advantages.

+ Vietnamese enterprises are enabled to participate in higher added value stages of the global supply chain.

+ The competitive industrial performance of Vietnam is expected to raise at least 12 ranks compared to that in 2015.

+ The national competitiveness is also expected to raise at least 15 ranks compared to that in 2015.

- By 2030:

+ The quality and the added value of products with potential export advantages are improved. 

+ The average export growth is expected to reach 9% - 10% per year during the 2021-2030 period.

+ Every year, at least 200 products of exporters are marked national brands and 400 enterprises are awarded the national quality prize.

+ Highly competitive enterprises under each category of export products are established.

+ The competitive industrial performance of Vietnam is expected to raise at least 20 ranks compared to that in 2015.

+ The national competitiveness is also expected to raise at least 25 ranks compared to that in 2015.

II. PRODUCTS TO BE GIVEN PRIORITY

1. Agriculture and fishery products

a) Products that show export advantage

- Rice.

- Coffee.

- Rubber.

- Fishery products.

- Pepper.

- Cashew nuts.

- Cassava and its related products.

- Fruits and vegetables.

b) Products that show potential export advantage

- Tea.

- Bee’s honey.

2. Processed products

a) Products that show export advantage

- Garments and textiles.

- Footwear products.

- Wood products.

- Handbags, suitcases and umbrellas.

- Phones and components.

- Computers, electronics products and parts.

- Cameras, movies cameras and components.

- Means of transport and parts.

- Machinery, equipment and other parts.

- Electric wires and cables.

b) Products that show potential export advantage

- Raw materials for garment, textile and footwear sectors.

- Plastics and plastic products.

- Fertilizers.

- Chemicals.

III. SOLUTIONS FOR IMPLEMENTING THE PROJECT

1. Main solutions

a) Restructuring of production by means of changing modes of production and export

- Changing mode of production:

+ Agricultural products: Make change from the production of scattered small-scale products into the concentrated large-scale production with the product quality controlled in all processes, i.e. transport, processing, preservation and sale.

+ Industrial products: Make change from the minimum process into the mode of production with a higher added value in the value chain.

- Changing mode of export:

+ Make change from indirect export into direct export.

+ Make change from the export under FOB terms of delivery into the export under CIF terms of delivery.

b) Making change in the structure of export products in the direction of improving the proportion of high-value export products

- Agricultural exports: Make change from the export of raw materials into the export of processed products and from the export of products undergone the minimal operations and processes into the export of high-value processed products.

- Industrial exports: Make change from the export of low-value products into the export of high-value products.

c) Improving the quality of export products

- Speed up the formulation and application of the national standards system in harmony with international standards, regional standards as well as foreign standards on export products, including technical standards, standards on food safety and hygiene and environment standards.

- Improve the competence of testing and certification bodies that satisfy international standards so as to serve the conformity assessment of national standards, international standards, regional standards, foreign standards and specific standards for each category of export products.

- Speed up the formulation and provide guidance on application of specific standards in the main export markets that may set up trade barriers to Vietnam’s exports.

- Disseminate goods quality standards in foreign markets and provide consultancy or training domestic producers and exporters in applying such standards.

- Encourage and give assistance to enterprises to develop export products which have been awarded the national or international quality prize.

d) Developing supporting industries for businesses that show export advantage

- Step up the development of supporting industries; focus on the development of supporting industries for the production of products that show export advantage or potential export advantage so as to increase the export value and the production portion of exports from domestic raw materials.

- Develop supporting industries by means of formulating and implementing policies on support for research and development activities, technology transfer and application, human resource development and market development.

dd) Emphasize the role of foreign direct investment (FDI) enterprises in enhancing the competitiveness of Vietnam’s exports.

- Encourage FDI enterprises to increase the import substitution ratio of the main industrial exports (such as garment and textile products, footwear products, means of transport, machinery, equipment and tools).

- Give priority and facilitate FDI enterprises’ participation in agriculture, forestry and aquaculture sectors.

- Encourage and give assistance to FDI enterprises in cooperating or associating with domestic enterprises to manufacture and trade in exports.

- Adopt policies for attracting FDI in development of supporting industries and other industries that show the export potentiality but in which domestic enterprises are still weak.

e) Consolidating and expanding export markets

- Consolidate main and traditional export markets, especially the largest export markets such as America and EU and previously traditional export markets in the Eurasian Economic Union.

- Enhance the effectiveness of trade promotion methods and adopt the new ones with attaching special importance to advantageous exports, potential markets and niche markets so as to penetrate into new markets and diversify export market. 

- Continue negotiating, concluding and implementing bilateral and multilateral trade agreements with the aims of facilitating and enhancing the competitiveness of Vietnam s exports in global markets as well as canvassing for recognizing Vietnam’s market economy.

- Attach special importance to the development of domestic market in order to supplement and support export markets, increase production scale, lower prime cost and gain competitive advantage for exports.

g) Intensifying the establishment of national brands, export brands and corporate brands

- Establish Vietnam’s national brands in export markets.

- Encourage and assist enterprises in developing exports achieving national brands and establishing corporate brands.

- Improve enterprise development policies with respect of establishing and protecting enterprises’ intellectual property rights in domestic markets and export markets.

h) Enhancing the national competitiveness, facilitating and reducing costs for enterprises

- Improve business environment:  Promote the simplification of administrative procedures, intensify the provision of online public services and develop the national single-window system.

- Promote the development of infrastructure systems such as electricity, water, communications and transport infrastructure facilities; the development of logistics services so as to save costs and time of sending products into export markets.

i) Enhancing the competence of producers and exporters, especially small- and medium-scale enterprises

- Formulate policies to support enterprises in making investments in equipment innovation, technology innovation and process innovation so as to manufacture products meeting quality standards of export markets; promote research and development activities, and application of science and technology advances, especially high technologies, with the aims of adopting and developing advanced production and management methods according to development orientations of the fourth industrial revolution.

- Encourage and assist enterprises in formulating export strategies in conformity with each export market and their competence; participating in the global production and distribution networks as well as the global value chain.

- Encourage and facilitate the promotion of connections between suppliers and manufacturers of end products, between production, transport, processing, preservation and selling stages, between farmers, enterprises, regulatory authorities and scientists (in agriculture), and between domestic enterprises and foreign enterprises.

- Assist enterprises in accessing market information and trade promotion activities by means of developing market information systems and promoting market research, analysis and forecasting activities.

- Assist enterprises in training and improving qualifications of human resources (including managers, technicians and workers).

- Provide legal advice and assistance to enterprises involved in import and export activities.

k) Enhancing the competence of business associations

- Facilitate business associations’ development of activities to assist their members in training, consultancy, trade promotion and application for international quality certifications.

- Assist business associations in establishing information systems on supply and demand analysis and forecasting, international market prices, and connecting with market and trade promotion databases of relevant ministries so as to provide necessary information to their member enterprises.

- Facilitate business associations’ promotion of their role in connecting member enterprises in each industry and of different industries.

- Make appropriate revisions or amendments to relevant laws so as to ensure the business associations’ participation in the formulation of mechanisms, policies and/or laws.

2. Project phasing

a) First phase by 2020

- With regard to products that show export advantage: Consistently implement solutions to enhance the competitiveness to make the best use of existing advantages and promote export activities.

- With regard to products that show potential export advantage: Focus on solutions for creating new advantages so as to enhance local supply capacity, develop separate brands and expand markets as well as step by step enhance export activities.

b) 2021-2030 phase

Consistently implement solutions to enhance the competitiveness of products that show export advantage and the ones with potential export advantage so as to promote export activities.

IV. ORGANIZATION OF IMPLEMENTION

Based on the main solutions mentioned in Section III Article 1 herein and specific solutions for enhancing the competitiveness of products to be given priority herein, ministries and local governments shall, within the ambit of assigned functions, duties and scopes of management, formulate and implement specific action plans for enhancing the competitiveness of exports in conformity with actual conditions of each sector or region. To be specific:

1. Ministry of Industry and Trade

Take charge and cooperate with other ministries, local governments, business associations and enterprises to organize the implementation of the Project and the following tasks:

a) Formulate and implement plans for production restructuring of advantageous exports in the category of industrial products mentioned in Clause 2 Section II herein in conformity with each phase of the Project.

b) Facilitate enterprises’ trade promotion and market development by means of developing the National Trade Promotion Programs, the Project for development of regional markets for the 2015-2020 period, with a vision towards 2030, the Project for formulation of enterprise development policies to promote Vietnamese enterprises direct participation in foreign production and distribution networks, the Project for strengthening and development of Vietnamese trade promotion representative agencies in foreign countries and the Project for promoting trade promotion information systems.

c) Take charge of establishing Vietnam s national export brands; instruct and assist enterprises in establishing product brands and export brands through National Brand Certification Programs.

d) Negotiate, conclude and organize the implementation of economic – trade agreements such as Trans-Pacific Partnership Agreement (TPP), Regional Comprehensive Economic Partnership (RCEP), free trade agreements signed by and between Vietnam and EU, Korea and Eurasian Economic Union and border trade agreements signed by and between Vietnam and China, Laos and Cambodia.

dd) Take charge and cooperate with relevant authorities to periodically review and evaluate the implementation of the signed bilateral and multilateral trade agreements and propose solutions for dealing with adverse changes.

e) Take charge and cooperate with relevant authorities to perform canvassing operations so that Vietnam’s market economy will soon recognized.

g) Promote dissemination and propagation activities so that enterprises may thoroughly grasp and minimize adverse effects of free trade agreements on exports.

h) Instruct and assist enterprises in cooperating with regulatory authorities to deal with trade remedies taken by foreign countries so as to protect legitimate rights and interests of Vietnamese enterprises and exports in foreign markets.

i) Step up the development of supporting industries for exports in accordance with regulations of law and supporting industry development plans or programs.

k) Provide enterprises with trade information through the market and trade promotion information systems, promote market analysis and forecasting activities, consolidate and upgrade functions and duties of trade information providers.

l) Encourage and give assistance in developing the connections between business associations, enterprises and large-scale international trade corporations.

m) Develop infrastructure systems and logistics services of Vietnam; organize the implementation of the Planning for development of the nationwide logistics center system by 2020 with a vision towards 2030 and the Action Plan for improvement of competitiveness and development of Vietnam’s logistics services by 2025 .

n) Enhance e-commerce development so as to support exporters.

o) Annually evaluate the implementation of the Project and sum up implementation results of the Project at the end of 2020; submit report proposing orientations for implementing the Project in the following phases to the Prime Minister.

2. Ministry of Agriculture and Rural Development

Take charge and cooperate with relevant ministries, local governments, business associations and enterprises to fulfill the following tasks:

a) Continue restructuring agricultural production towards the sustainable development on the basis of potentialities and comparative advantages, applying high technologies and focusing on development of advantageous and high-quality products; promote the development of agriculture enterprises and reduce small-scale production activities; strengthen the connections between farmers, enterprises and scientists where farmers and enterprises are key forces; continue establishing set of connections between production, preservation, processing and distribution of agricultural products, and effectively participate in global production networks and global agricultural value chain.   

b) Formulate and implement plans for production restructuring of products that show export advantage in the category of agricultural and aquatic products mentioned in Clause 1 Section II herein in conformity with each phase of the Project.

c) Encourage and assist enterprises in applying science and technology advances, especially high technologies, with the aims of upgrading and perfecting production processes so as to produce agricultural-aquatic-forestry products which can satisfy export requirements.

d) Protect and expand export markets for agricultural-aquatic-forestry exports as well as attach special importance to the development of domestic markets.

dd) Encourage and assist the establishment of brand names for agricultural-aquatic-forestry exports and brands for agricultural-aquatic-forestry producers and exporters.

e) Instruct and assist enterprises in applying Good Agricultural Practices (GAP) to raising/cultivating operations and advance quality management systems to processing operations so as to promote the quality control and food safety control of agricultural-aquatic-forestry exports in all stages, including raising/cultivation, collection/harvesting, transport, processing and export.

g) Perfect regulations on product quality and food safety and hygiene standards in course of production of agricultural-aquatic-forestry exports. Establish quality standards on inputs and outputs of agricultural processing factories.

h) Establish legal corridor to create favorable conditions for the export of agricultural-aquatic-forestry products by means of negotiating and concluding treaties or agreements with partners on market access for agricultural-aquatic-forestry exports and the mutual recognition agreements on testing, quarantine and food safety inspection of agricultural-aquatic-forestry exports.

3. Ministry of Science and Technology

Take charge and cooperate with relevant ministries, local governments, business associations and enterprises to fulfill the following tasks:

a) Instruct and assist enterprises in stepping up research and development activities, application of science and technology advances, technology innovation and transfer, especially high technologies; applying management systems and tools for improving productivity and quality, innovating production process according to development orientations of the fourth industrial revolution so as to generate high-quality products meeting quality standards of export markets.

b) Develop national standards in harmony with international standards, regional standards and foreign standards on export products.

c) Improve the competence of testing and certification bodies that satisfy international standards so as to serve the conformity assessment of technical standards and regulations on the main export products.

d) Encourage and assist enterprises in accessing and applying international standards, regional standards, foreign standards and specific standards to production of export products.

dd) Instruct enterprises in applying for certification of conformity with national standards, international standards, regional standards, foreign standards and specific standards in accordance with law regulations.

e) Promote and instruct enterprises in applying international standards which are commonly applied in the main export markets of certain main export products such as agricultural, aquatic, garment, textile and footwear products, etc.

g) Instruct and assist enterprises in establishing and protecting enterprises’ intellectual property rights in both domestic and export markets.

h) Disseminate and provide advice for enterprises about technical barriers in export markets.

i) Take charge of organizing the implementation of mutual recognition agreements on conformity assessment and acceptance under international treaties to which Vietnam is a signatory.

k) Promote the implementation of the National Program to raise productivity and quality of products and goods of Vietnamese enterprises by 2020, the Program for supports for scientific and technological enterprises, and public scientific and technological organizations in the exercise of the autonomy, and the Program for science and technology market development by 2020; continue formulating and implementing programs or schemes on measurement, standards and quality of products and goods so as to assist enterprises in enhancing the competitiveness and speeding up international integration.

4. Ministry of Natural Resources and Environment

Take charge and cooperate with relevant ministries, local governments, business associations and enterprises to fulfill the following tasks:

a) Formulate regulations on environment with respect to extraction, raising, cultivation, production and processing of export products in conformity with international regulations and regulations in export markets.

b) Formulate and perfect regulations on prestigious trademarks and brands in environment sector (such as sustainable use of natural resources, application of low emissions technologies and technologies using renewable energy, etc.).

c) Establish the system for assessing, ranking, certifying and rewarding products and exporters for strictly complying with regulations on environment protection.

d) Formulate mechanism for simplification of environment-related procedures for multinational corporations whose production and management systems meet international standards or granted ISO certifications in environment management.

dd) Formulate policies to facilitate and support projects on research and invention of advanced environmental remediation technologies with low costs and high effectiveness; facilitate the export of environmental remediation technologies.

e) Encourage and assist enterprises in investing in the construction of advanced waste treatment systems.

g) Formulate policies on long-term and stable use of land for enterprises that make investment in production and processing of agricultural and aquatic products for exporting purpose. Submit proposals to the Government for submitting to the National Assembly for amendment to the Land Law in the way so as to facilitate the land assembly and expand the land holding ceiling limits as well as adopt appropriate policies on compensation in cases of land appropriation and encourage the development of large-scale agricultural production.

5. Ministry of Foreign Affairs

Take charge and cooperate with relevant ministries, local governments, business associations and enterprises to fulfill the following tasks:

a) Formulate and perform diplomatic activities so as to serve the economic development and promote the canvassing for recognition of Vietnam s market economy; assist ministries, local governments and enterprises in promoting bilateral and multilateral trade cooperation with foreign countries.

b) Cooperate with ministries to assist Vietnamese enterprises in performing trade promotion and market research activities: Find opportunities for Vietnamese products’ penetration of foreign markets; intensify the connection between domestic enterprises and foreign enterprises; protect legal benefits and deal with difficulties encountered by Vietnamese enterprises and exports.

c) Instruct Vietnamese representative missions in foreign countries to provide necessary information for ministries, local governments, business associations and enterprises upon their request about prevailing policies in export markets.

6. Ministry of Finance

Take charge and cooperate with relevant ministries, local governments, business associations and enterprises to fulfill the following tasks:

a) Allocate funding for implementing the Project’s contents in accordance with regulations of the Law on State Budget.

b) Do research on policies on agricultural insurance and effectively implement them.

c) Simplify and introduce taxation and customs online procedures to enterprises.

d) Negotiate and conclude cooperation agreements or treaties on customs with important trade partners with the aims of facilitating and ensuring the competitive advantages of Vietnam’s exports into these markets.  

dd) Formulate policies to facilitate and assist enterprises in performing research and development, application and innovation of production technologies so as to improve productivity and product quality as well as enterprises’ competitiveness.

7. Ministry of Planning and Investment

Take charge and cooperate with relevant ministries, local governments, business associations and enterprises to fulfill the following tasks:

a) Allocate investment and development funding for fulfilling tasks of the Project in accordance with regulations and facilitate the enhancement of the competitiveness of exports.

b) Enhance and improve quality so as to attract foreign direct investments in supporting industries, hi-tech industries, hi-tech agriculture and agricultural product processing (especially, high value products and by-product processing) towards improvement of technology transfer, reduction of processing and assembling proportion and increase of the proportion of production of exports from domestic materials.

c) Instruct, manage and effectively use the Official Development Aids (ODA) for the purpose of enhancing the national competitiveness as well as the competitiveness of enterprises and Vietnam s exports.

d) Attach special importance to the development of enterprises towards enhancement of the competitiveness of enterprises, especially small- and medium-scale enterprises.

dd) Encourage and facilitate small- and medium-scale enterprises’ participation in the development of supporting industries.

e) Perfect the law regulations on outward investment of Vietnamese citizens and enterprises with attaching special importance to the provision of information about the investment environment, investment opportunities and protection of legitimate rights and interests of Vietnamese citizens and enterprises that make outward direct investments.

8. The State Bank of Vietnam

a) Manage and development the money market in an effective way so as to enhance the national competitiveness.

b) Carefully and flexibly manage the monetary policy tools with the aims of achieving macroeconomic stabilization objectives and consolidating the competitiveness of Vietnam’s exports in foreign markets.

9. Ministry of Transport

Take charge and cooperate with relevant ministries, local governments, business associations and enterprises to fulfill the following tasks:

a) Formulate regulations on freight charges and surcharges in accordance with the law regulations so as to explicitly apply and minimize irrational costs for enterprises.

b) Promote the implementation of infrastructure and logistics systems construction and investment works in the transportation sector.

10. Ministry of Education and Training

Take charge and cooperate with ministries, local governments, business associations and enterprises to instruct and assist training institutions in formulating training plans in the way so as to satisfy enterprise’ human resources demands in production and trading of products being given priority mentioned in Section II Article 1 herein.

11. Ministry of Labor, War Invalids and Social Affairs

Take charge and cooperate with ministries, local governments, business associations and enterprises to promote vocational training activities so as to improve the professional skills of workers directly involved in production and trading of products being given priority mentioned in Section II Article 1 herein.

12. Relevant ministries and local governments

a) Do research on solutions for enhancing the competitiveness of Vietnam’s exports within the ambit of assigned duties and functions and in conformity with the Project s contents.

b) Actively review and make amendments to mechanisms and policies within the scope of their management so as to encourage and give assistance in enhancing the competitiveness of Vietnam’s exports.

13. Business associations and enterprises

a) Actively implement solutions prescribed in Section III Article 1 herein.

b) Present difficulties that arise during the implementation of the Project and recommendations to competent authorities.

V. FUNDING FOR IMPLEMENTING THE PROJECT

1. The funding for implementing the Project shall be provided by state budget according to regulations, funding sources of enterprises, grants and other legal funding sources.

2. Based on assigned tasks mentioned in the Project, ministries and local governments shall formulate annual plans and submit costs estimates for implementing such plans to the competent authorities for approval in accordance with regulations of the Law on State Budget.

Article 2.This Decisiontakes effect on the signing date.

Article 3.Ministers, heads of ministerial-level agencies, heads of the Government’s affiliates, Chairpersons of People’s Committees of central-affiliated cities or provinces, and relevant agencies, units and individuals shall implement this Decision./.

The Prime Minister

Nguyen Xuan Phuc