Decision No. 18/2007/QD-BCN dated May 08, 2007 of the Ministry of Trade approving adjustments and supplements to the master plan on the development of Vietnam’s beer, liquor and beverage industry up to 2010

DECISION

APPROVING ADJUSTMENTS AND SUPPLEMENTS TO THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM’S BEER, LIQUOR AND BEVERAGE INDUSTRY UP TO 2010

THE MINISTER OF INDUSTRY

Pursuant to the Government’s Decree No. 55/2003/ND-CP dated May 28, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Industry;

Pursuant to the Government’s Decree No. 92/2006/ND-CP dated September 7, 2006, on the elaboration, approval and management of socio-economic development master plans;

After reaching agreement with the Ministries of Planning and Investment, Finance, Science and Technology; Construction; and Trade; and the State Bank;

At the proposal of the director of the Department for Consumption and Food Industries,

DECIDES:

Article 1. To approve adjustments and supplements to the Master Plan on the development of Vietnam's beer, liquor and beverage industry up to 2010 with the following principal contents:

1. Development objectives

a) Overall objectives

- To build Vietnam's beer, liquor and beverage industry into a strong economic sector. To encourage the use of domestic raw materials, develop the production of high-quality and prestigious products bearing strong trademarks in the market, ensure food hygiene and safety, diversify types of products, and renew product packings and designs; to strive to reduce prices and raise competitiveness of products so as to meet the domestic demand and step up export, increase budget revenues and steadily integrate into regional and world economies.

- To encourage the formation of strong enterprises and economic groups based on joint venture or cooperation among beer, liquor and beverage enterprises of all economic sectors.

b) Specific objectives

- By 2005, to produce 1,530 million liters of beer, 83 million liters of liquor and 911 million liters of beverage;

- By 2010, to produce 3,500 million liters of beer, 145 million liters of liquor and 1,650 million liters of beverage.

2. Product development planning and planning arrangement

a) Product planning

- Beer production: To invest in high-capacity factories with modern equipment, for efficient production and business, meeting the environmental requirements under state regulations. Beer products must meet food hygiene and safety and quality requirements, and have prices acceptable to consumers;

- Liquor production: To invest in liquor factories with modem technologies and improve the quality of liquor specialties and traditional liquor products to meet the domestic demand and for export. To encourage enterprises to enter into cooperation or joint venture with foreign investors to produce high-quality liquor from domestic raw materials. To take appropriate measures to reduce the manual brewing of wine which is harmful to consumers' health;

- Beverage production: To encourage various economic sectors to invest in the production of beverages from domestic raw materials, with priority given to the production of fruit juices.

b) Region- and territory-based planning

To arrange beer, liquor and beverage factories nationwide in 6 regions (see the enclosed Appendix).

To ensure balanced territory-based development in line with the socio-economic development strategy in each period as well as local economic development strategies and plannings.

3. Capital needs of investment projects

The total investment capital for the beer, liquor and beverage industry in the 2005-2010 period is VND 34,690 billion (see the enclosed Appendix), of which:

- Capital for beer production: VND 31,809 billion;

- Capital for liquor production: VND 807billion;

- Capital for beverage production: VND 2,074 billion.

The State encourages all domestic and foreign economic sectors to mobilize capital for investment in the construction of beer, liquor and beverage factories so as to achieve the Plan's objectives.

4. Solutions and policies for the implementation of the Plan

a) Technological solutions

- For investment projects to build new factories:

Importance will be attached to investment in large-capacity factories with modern equipment and advanced technologies;

- For expansion investment or in-depth investment projects: To thoroughly modernize technologies and replace existing backward technologies and equipment with modern and advanced ones;

- To encourage enterprises, through joint venture or cooperation, to transfer technologies for the domestic manufacture of equipment (beer, liquor and beverage production equipment) meeting the requirements for modern techniques. To encourage the use of domestically manufactured equipment, which are of quality equivalent to that of imported equipment for investment projects;

- To build raw-material (barley, fruit, etc.) supply areas and, through cooperation with farmers and localities, to build farms of fruit trees and other raw-material trees. To encourage farmers to apply scientific advances to varieties selection, planting and preliminary processing in order to raise the yield and quality of barley and fruits for use as production materials.

b) Capital and investment-related solutions

- To concentrate investment in factories of a capacity of over 100 million liters/year; to promote to the utmost and expand the production capacity of factories with advanced equipment and technologies; to speed up the renovation, expansion and modernization of small factories with backward equipment;

- To diversify forms of investment and modes of capital mobilization and encourage the mobilization of capital from domestic and foreign economic sectors through issuance of bonds or stocks, joint venture or cooperation;

To step up the equitization of state enterprises, including state corporations. To encourage joint- stock companies to be listed on the securities market.

c) Science and training-related solutions

- To plan and build research institutes and laboratories capable of conducting research and experiments and applying new sciences and technologies to production;

- To build a system of the industry's quality standards conformable with state food hygiene and safety standards. To regularly inspect the observance of food hygiene and safety and environmental protection standards in accordance with law;

- To coordinate with domestic and overseas training establishments in training managers, technicians and technical workers to meet the industry's development requirements. To combine short-term training with full-time training and new training with retraining.

d) Management organization-related solutions

- To carry out the phased equitization of the Hanoi Beer, Liquor and beverage Corporation and the Saigon Beer, Liquor and Beverage Corporation and gradually reduce state capital in these corporations;

- To reorganize in efficient state-owned beer, liquor and beverage factories through merger, equitization, change of production and business purposes, sale, contracting, lease or other forms;

- To enhance strict inspection of food quality, hygiene and safety, environmental protection, and the fulfillment of obligations towards the state budget; to enhance management through business registration, quality registration, and performance of tax obligations by enterprises.

Article 2. Organization of implementation

1. The Ministry of Industry shall assume the prime responsibility for, and coordinate with concerned ministries and branches and provincial municipal People's Committees in, directing the development of the industry according to the adjusted Master Plan already approved.

2. Provincial municipal People's Committees shall concretize the Master Plan on the development of Vietnam's beer, liquor and beverage industry in their provinces or cities; join ministries and branches in inspecting and supervising the implementation of this Master Plan to ensure consistency and uniformity with local socio-economic development master plans.

3. The Vietnam Beer, Liquor and Beverage Association shall coordinate with the Ministry of Industry and localities in publicizing the Master Plan, and guide its member enterprises to implement the Master Plan and observe other provisions of law.

Article 3.

This Decision takes effect 15 days after its publication in CONG BAO.

Article 4.

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial municipal People's Committees, and relevant units shall implement this Decision.

APPENDIX 1

NOTES ON REGIONS ACROSS THE COUNTRY
(To the Industry Minister’s Decision No. 8/2007/QD-BCN dated May 8, 2007)

1. Region 1,embracing 14 provinces, namely Bac Kan, Bac Giang, Cao Bang, Hoa Binh, Ha Giang, Lai Chau, Lang Son, Lao Cai, Phu Tho, Son La, Thai Nguyen, Tuyen Quang, Yen Bai, and Dien Bien.

2. Region 2, embracing 15 provinces and cities, namely Bac Ninh, Hanoi, Ha Tay, Ha Tinh, Hai Duong, Hai Phong, Ha Nam, Hung Yen, Nam Dinh, Ninh Binh, Nghe An, Quang Ninh, Thai Binh, Thanh Hoa and Vinh Phuc.

3. Region 3, embracing 10 provinces and cities, namely Binh Dinh, Da Nang, Khanh Hoa, Ninh Thuan, Phu Yen, Quang Binh, Quang Nam, Quang Ngai, Quang Tri, and Thua Thien-Hue.

4. Region 4, embracing 4 provinces, namely Dak Lak, Gia Lai, Kon Tum and Dak Nong.

5. Region 5, embracing 8 provinces and cities, namely Ba Ria-Vung Tau, Binh Duong, Binh Phuoc, Binh Thuan, Dong Nai, Lam Dong, Ho Chi Minh City and Tay Ninh.

6. Region 6, embracing 13 provinces and cities, namely An Giang, Bac Lieu, Ben Tre, Can Tho, Dong Thap, Kien Giang, Long An, Ca Mau, Soc Trang, Tien Giang, Tra Vinh, Vinh Long, and Hau Giang.

APPENDIX 2

PROJECTED PRODUCTION OUTPUT OF THE BEER, LIQUOR AND BEVERAGE INDUSTRY UP TO 2010
(To the Industry Minister's Decision No. 18/2007/QD-BCN dated May 8, 2007)

Unit of calculation: million liters

APPENDIX 3

ESTIMATED INVESTMENT CAPITAL NEEDS OF THE BEER, LIQUOR AND BEVERAGE INDUSTRY UP TO 2010
(To the Industry Minister's Decision No. 18/2007/QD-BCN dated May 8, 2007)

Unit of calculation: million liters