Decision No. 156/2006/QD-TTg dated June 30, 2006 of the Prime Minister approval of the plan for export development for the phase from 2006 to 2010

DECISION

RE: APPROVAL OF THE PLAN FOR EXPORT DEVELOPMENT FOR THE PHASE FROM 2006 TO 2010

THE PRIME MINISTER

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

Upon on proposal of the Ministry of Trade in Petition 3281/TTr-BTM dated May 29, 2006,

HEREBY DECIDES:

Article 1. The Plan for Export Development for the phase from 2006 to 2010 (better known as the Plan) with the following contents is approved.

I. DEVELOPMENT VIEWS

1. Pushing up implementation of the guidelines on encouraging exports of goods and services so as to contribute to GDP growth, production development and labour attraction in compliance with rules of the World Trade Organization and international agreements that Vietnam is a member.

2. Linking the internal and external markets in the orientation of boosting the domestic market to boost sources of export goods and expanding export markets to stimulate domestic market and production; expanding and diversifying export markets in parallel with expanding and speeding up exploitation of the domestic market to support the export sector and reduce possible risks occurring when the world market is changeable.

3. Encouraging and mobilizing resources of all economic sectors and luring more foreign investment for production of export commodities, step by step creating prestigious brands to satisfy requirements of export markets.

4. Boosting imports in the orientation of focusing resources on investment and production development; controlling trade deficit by increasing export value so as to keep the balance of payment and macro stability of the economy from negatively affected.

II. DEVELOPMENT GOALS

1. General aims

Achieving high, sustainable export growth rate. Speeding up investment in production of competitive export products, which are capable to gain a considerable market share in the world market. Changing export structure in the orientation of accelerating exports of products with high added value; processed and manufacture products and those with high content of technology and intelligence, reducing share of raw exports; pushing up service exports.

2. Specific aims

- Obtaining an average goods export growth rate of 17.5% per annum and earning an annual goods export value of $72.5 billion by 2010.

- Obtaining an average service export growth rate of 16.3% per annum and earning an annual goods export value of $12 billion by 2010.

- Agricultural – forestry – aquatic products should make up 13.7%; fuel and mineral products, 9.6%; industrial and high-tech products 54.0%; and other products, 22.7% of the total export value. In terms of geographical structure, the Asian market should represent 45.0%; European market, 23%; American market, 24%; and the Oceanic market, 5.0%; and other markets, 3% of the total export turnover.

- Achieving export – import balance soon after 2010.

III. MAJOR SOLUTIONS

1. Supporting business environment

- Expanding business rights and opening the market for trading, distributing of goods and services in accordance with international agreements that Vietnam is a member; ensuring the principle of equal treatment in providing export assistance services in Vietnam; step by step eliminating monopoly in the fields of post and telecom, energy, insurance, transport, sea port, logistics, etc to improve business performance and reduce business costs for the business community.

- Facilitating establishment and operation of centers that supply materials to enterprises producing export commodities.

- Reforming formalities and modernizing customs work, minimizing time for customs procedures for export and import.

- Signing agreements on banking international payments with export markets facing difficulties in transaction and payment guarantee; signing bilateral agreements and mutual recognition on food safety, sanitary and phytosanitary with trade partners.

2. Enhancing the system of financial, credit and investment policies for the export sector

- Renewing credit policies in the orientation of market economy; improving credit policies for development of export production and export credit policies in compliance with the views and aims of the Plan and the WTO’s rules and other international agreements that Vietnam is a member; launching more credits modes, ensuring favourable capital access conditions and credit modes at commercial banks; gradually providing loans to importers with stable value and large share, especially of agricultural products.

- Properly implementing the mechanism on tax refund for businesses importing materials to supply to export manufacturers.

- improving financial institutions with focus on inputs for export manufacture and trade promotion, facilitating improvement of competitiveness of export products; further enhancing tax and fee categories; speeding up insurance for assets in production, especially agricultural production.

- Keep exchange rates at levels as near real levels as possible and matching purchase power of dong, tie dong to a number of freely exchangeable currencies so as to avoid risks against exporters.

3. Improving administration over trade promotion activities

- Renewing operation, management and use of the Fund for Economic Diplomacy so as to improve its efficiency in assisting the business community developing markets and seeking for business partners.

- Diversifying and expanding trade promotion modes.

- Improving quality of construction and implementation of the annual national trade promotion program; coordinating promotion activities to organize trade, investment and tourism promotion programs for several sectors at the same time so as to promote the country’s image, even through international media.

- Pushing up high-level trade promotion activities to boost cooperation, investment and trading, especially to attract multinationals to invest in export manufacture.

- Reorganizing trade promotion organizations and the mechanism on providing market information and consultancy about investment, trade, law and business environment at home and abroad for the business community.

4. Training and developing labour resource for export production industries

- Setting up detailed plans and carrying out vocational training programs to solve the problem of labour dearth and improve quality of labour in export production sectors; speeding up socialization of vocational training services; balancing vocational training funds for export production industries in certain places.

- Improving mechanism, policies and laws on labour so as to protect legal interests and raise incomes and living conditions for workers, encouraging the business community to involve in training and exchange their labour sources.

5. Setting up forecast programs and export boosting plans for sectors

- Setting up forecast programs to analyze competitiveness by 2010 for major export products and services.

- Constructing and carrying out plans to boost exports for export industries (this should be done by Ministries) on the basis of the development views and goals of the Plan and the aforesaid forecast programs as well as the strategy for development of industries by the year of 2010 approved by the Prime Minister.

Establishment of plans for specific industries should have consultancy and coordination of the Ministry of Trade, provincial People’s Committees and relevant sectoral corporations to ensure feasibility and suitability with international agreements that Vietnam is a member. There should be tight linkage between manufacturers of materials and those of export products through policies that create close ties between interests of the 2 subjects.

6. Restrict trade deficit

On the basis of the Plan’s goals of keeping trade deficit at a reasonable level, restricting it from negatively impacting balance of payment and macro stability of the economy, ensuring Vietnam international commitments, measures to control trade deficit are as the following:

- Boosting exports of goods and services, especially to markets that Vietnam has trade deficit with. This should be considered as major measure to control trade deficit;

- On the basis of ensuring compositeness and forecasting market demand, developing competitive products to satisfy domestic demand; renewing technology and management to save inputs;

- Controlling exchange rates and interest rates to match economic development, restricting trade deficit;

- Controlling foreign debts;

- Boosting the export, tourism and labour export sectors; luring more overseas remittance;

- Speeding up attraction and effective use of foreign investment and ODA.

IV. IMPLEMENTATION

1. The Ministry of Trade is in charge of:

- Coordinating with Ministries, localities, corporations, groups and associations to carry out the plan.

- Providing information, updating information about implementation of export plans for sectors; consolidating, reporting and proposing necessary policies and mechanism to speed up implementation of the plan and export plans for specific sectors.

- Coordinating with the Ministry of Foreign Affairs to study and propose new mechanism on use of the Fund for Economic Diplomacy, submitting that to the Prime Minister for consideration.

- Presiding over and coordinating with relevant Ministries and industries to establish the plan for forecasting and analyzing competitiveness of major export products and services by 2010; presiding over implementation of measures to improve efficiency of trade promotion activities and restrict trade deficit and coordinate with relevant agencies to implement other measures of the plan.

2. The Ministries of Finance, Planning and Investment and the State Bank of Vietnam have the following responsibilities:

- Coordinating with relevant agencies to set up detailed roadmap and carry out measures to support the business environment and improve the system of financial, credit and investment policies for development of export production and relevant measures to restrict trade deficit; coordinating with the Ministry of Trade and relevant agencies to carry out other relevant measures in the Plan.

3. The Ministry of Labour, War Invalid and Social Affairs is in charge of presiding and coordinating with relevant Ministries and industries to define sectors in need for support and establish plans to deliver vocational training support to sectors in need.

4. In the scope of management, Ministries and industries are responsible for studying and implementing specific export plans, coordinating tightly with the Ministry of Trade and other relevant agencies to carry out contents and measures of the Plan.

5. People Committee of provinces and cities under direct central management direct local agencies to construct and coordinate with central agencies to implement plans and programs for development of export production and boosting exports of local products on the basis of views and goals of the Plan and other export plans built by relevant Ministries.

Article 2. The Decision will come into effect in 15 days after it is publicized in the Gazette.

Article 3. Ministers, Directors of ministerial-level agencies, Government’s units, Chairmen of People’s Committees of provinces and cities under direct central management are in charge of implementation of the Decision./.