Decision 344/QD-TTg 2022 the Sustainable Macadamia Development Scheme 2021-2030

DECISION

Approving the Sustainable Macadamia Development Scheme in the 2021-2030 period, with a vision toward 2050

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THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Forestry dated November 15, 2017;

Pursuant to the Law on Crop Production dated November 19, 2018;

Pursuant to the Government’s Decree No. 27/2021/ND-CP dated March 25, 2021 on management of forest tree cultivars;

Pursuant to the Prime Minister’s Decision No. 150/QD-TTg dated January 28, 2022 on approving the sustainable agriculture and rural development strategy in the 2021-2030 period, with a vision toward 2050;

Pursuant to the Prime Minister’s Decision No. 255/QD-TTg dated February 25, 2021 on approving the plan on restructuring of agriculture in the 2021-2025 period;

Pursuant to the Prime Minister's Decision No. 523/QD-TTg dated April 1, 2021 on approving Vietnam’s forestry development strategy for the 2021-2030 period, with a vision toward 2050;

At the proposal of the Minister of Agriculture and Rural Development.

DECIDES:

Article 1. To approve the “Sustainable Macadamia Development Scheme in the 2021-2030 period, with a vision toward 2050” (hereinafter referred to as the Scheme), with the following principal contents:

I. VIEWPOINTS

1. Macadamia is an introduced plant, newly planted and developed in Vietnam. The development of the macadamia cultivation zone needs to be researched and deployed carefully, step by step, on the basis of solid science, practice and market demand, associated with the task of socio-economic development, ecological environment protection, in accordance with strategies and master plans approved by competent authorities; creating jobs, increasing people's income, contributing to stabilizing the population, maintaining political security and social safety.

2. To develop Macadamia on the basis of promoting the natural, economic and social advantages of each region and each locality; to gradually form the macadamia industry under the product value chain from planting, to processing and consumption of products.

3. To develop macadamia on the basis of building a concentrated cultivation zone, investing in intensive farming, and applying synchronously scientific and new technological advances to improve productivity and quality, create diversified and suitable products, meet the requirements of the market, have high competitiveness.

4. To strengthen socialization, attract investment resources from all economic sectors for sustainable Macadamia development. The State introduces mechanisms, policies and investment support in accordance with the law to implement a number of contents with lack of investment interest from enterprises, organizations and individuals.

II. OBJECTIVES

1. Overall objectives

To develop Macadamia into an efficient and sustainable production industry, contributing to the implementation of the sustainable agriculture and rural development strategy in the 2021-2030 period, with a vision toward 2050, socio-economic development, environmental protection and national defense and security assurance.

2. Specific objectives

- The yield of processed macadamia will reach about 130,000 tons of nuts by 2030, about 500,000 tons of nuts by 2050.

- The export turnover of macadamia products will reach about USD 400 million in 2030, about USD 2.5 billion in 2050, of which the proportion of whole macadamia products does not exceed 40%.

III. DEVELOPMENT ORIENTATIONS

1. Area scale and orientation of the plant cultivation zones

a) By 2030

Striving for the total area of macadamia in the whole country to reach from 130,000 to 150,000 ha by 2030, concentrated in the provinces of Northwestern region (about 75,000 - 95,000 ha, mainly in the following provinces: Dien Bien, Lai Chau), Central Highlands (about 45,000 ha, mainly in the following provinces: Lam Dong, Dak Nong, Kon Tum) and a number of localities with climatic and soil conditions suitable to the ecological requirements of macadamia (about 10,000 ha), with specific scale and location determined by the Ministry of Agriculture and Rural Development and localities on the basis of a thorough assessment of investment potential, capacity, land fund, economic, social, environmental efficiency and market demand.

b) Development potential by 2050

Based on summarizing and evaluating the effectiveness of macadamia development in the 2021-2030 period, specific orientations will be given on the scale of area and macadamia cultivation zones by 2050, striving to reach about 250,000 ha.

2. Processing establishments

a) By 2030

- To encourage all economic sectors to invest in the construction of Macadamia preliminary processing and processing establishments associated with the material cultivation zones in the Northwestern region and Central Highlands. To upgrade 65 existing preliminary processing and processing establishments, to build about 300-400 preliminary processing and processing establishments, each with a capacity of 100-200 tons of nuts/year.

- To create conditions for enterprises to invest in building about 8 factories for deep processing of high-value macadamia products, each with a capacity of 10,000 - 15,000 tons of fresh nuts/year in localities with favorable conditions.

b) Orientation to 2050

After 2030, the system of Macadamia preliminary processing and processing establishments shall be reviewed and evaluated to serve as a basis for orienting the scale of development of preliminary processing and processing establishments suitable to the material regions in the Northwestern region, Central Highlands and other regions.

IV. SOLUTIONS

1. About the science and technology

- To continue research, seed selection and propagation, introduction, and experiment to diversify the Macadamia varieties towards high productivity, quality and economic efficiency, resistance to pests and diseases, and adaptation to ecological sub-regions.

- To build a system of hedge orchards, focusing on the Northwestern region to have sufficient sources of materials for seed production; to complete and master the technology of clonal propagation of macadamia trees on industrial scale; to improve the capacity of the seed production system in order to supply enough varieties under the standards and regulations for new planting, grafting and renovation according to the Scheme's objectives.

- To develop and transfer the process of domesticated planting, intercropping of Macadamia for each sub-region; macadamia production process in the direction of high technology, good agricultural production practices (VietGAP, GlobalGAP, etc.), organic agriculture to create quality, safe and competitive macadamia products in domestic and international markets.

- To research, design, manufacture or purchase technology and equipment to mechanize the stages from planting, care, harvest to preservation and processing of macadamia products for domestic consumption and export.

2. About the production organization

- The localities shall, based on practical conditions, coordinate with scientific units in reviewing the land fund under the production forest planning for Macadamia development under the method of domesticated species cultivation; intercropping of Macadamia on land for industrial crops and vacant land under the protection forest planning, in accordance with Provincial planning in the 2021-2030 period, with a vision toward 2050 and land use plan in each period.

- To encourage enterprises to link with farmers in macadamia production through connection of cooperatives and cooperative groups to build concentrated macadamia cultivation zones, forming a chain of macadamia products from planting, to processing and consumption of products.

- The scientists shall support localities to research the suitable macadamia cultivation zone for each seed/cultivar; transfer science and technology from planting, care, harvest, preliminary processing and processing of products to households and enterprises.

- To implement synchronously solutions to support the development of cooperatives and cooperative groups for macadamia production both in breadth and depth; to pay special attention to improving the quality of operations and strengthening the capacity of cooperatives.

- For households, it is necessary to connect to enterprises through cooperatives and cooperative groups to build concentrated macadamia cultivation zones, establish area codes for traceability and consumption of products.

- To promote the role of the Vietnam Macadamia Association, which is a bridge connecting closely between households and enterprises in developing Macadamia production in chains, supporting loans, providing seed and fertilizer services, creating favorable conditions for effective and sustainable Macadamia development.

3. About the consumption market

- For the domestic market, the localities need to support the building of brands of macadamia products, associated with geographical indications; carry out trade promotion, propaganda and introduction activities so that domestic consumers have sufficient information on Macadamia products.

- For the export market, the localities continue to closely coordinate with ministries, Vietnam Macadamia Association and enterprises to take measures to expand export markets and take down trade barriers. To focus on implementing measures to promote official export of macadamia nuts in shell and macadamia kernels and deeply processed macadamia products to markets in other countries.

4. About the mechanisms and policies

- To organize the effective implementation of existing mechanisms and policies in order to encourage and create favorable conditions for people, enterprises and scientists to invest in research and development of macadamia in an effective and sustainable direction, especially in the National Target Programs; Program on sustainable forestry development; mechanisms and policies to encourage enterprises to invest in agriculture and rural areas according to the Government’s Decree No. 57/2018/ND-CP dated April 17, 2018; policies to encourage the development of cooperation and association in the production and consumption of agricultural products according to the Government's Decree No. 98/2018/ND-CP dated July 5, 2018; Credit policies for agricultural and rural development according to the Government’s Decree No. 55/2015/ND-CP dated June 9, 2015, the Government’s Decree No. 116/2018/ND-CP dated September 7, 2018 amending and supplementing a number of articles of the Government’s Decree No. 55/2015/ND-CP dated June 9, 2015.

- To continue to review, supplement and issue new mechanisms and policies; to review, develop and promulgate standards and regulations on Macadamia, contributing to the implementation of the Scheme.

5. About the investment funds

 To diversify investment funds for sustainable development of Macadamia in the direction of socialization; mainly capital of enterprises, people and other legal capital sources.

- The state budget shall support the development of Macadamia through the integration and implementation organization of programs and schemes in accordance with the law to perform the following tasks: formulating mechanisms and policies, investing in infrastructure, conducting scientific research, transferring technology, training human resources, promoting trade and expanding markets.

- Socialization capital sources shall be used to invest in building raw material zones, building establishments for preliminary processing, processing and consumption of macadamia products. The localities with climate and soil conditions suitable to the ecological requirements of macadamia trees create favorable conditions for organizations and individuals to invest in macadamia development in the area.

6. About the international cooperation

To continue to expand cooperation with other countries and international organizations in order to take down trade barriers and expand the market for Macadamia products; to strengthen cooperation in science and technology transfer on cultivars, process of planting, harvest, preservation and processing of macadamia products.

V. IMPLEMENTATION ORGANIZATION

1. The Ministry of Agriculture and Rural Development

- To be the standing agency of the Scheme, assume the prime responsibility for, and coordinate with relevant agencies in guiding localities to organize the effective implementation of the Scheme.

- To assume the prime responsibility for, and coordinate in proposing and formulating mechanisms and policies to implement the Scheme and submit it to competent authorities for promulgation.

- To strictly manage macadamia cultivars in accordance with the law; to direct and guide localities to plant macadamia trees with cultivars recognized by the Ministry of Agriculture and Rural Development; to continue to research, select and create new Macadamia cultivars with high yield and good quality, suitable for ecological sub-regions of Vietnam; to supplement and complete standards, technical regulations and technical guidelines on macadamia in the direction of intensive farming; to strengthen the organization of training, further training and transfer of science and technology on macadamia development.

- To assume the prime responsibility for, and coordinate with the Ministry of Natural Resources and Environment in, directing and guiding the provinces of Northwestern region, the Central Highlands and a number of localities with climate and soil conditions suitable to the ecological requirements of Macadamia trees; to review, evaluate, determine the appropriate size and land fund for planting macadamia nuts; to direct and guide pilot planting with appropriate scale, to evaluate effectiveness before propagation in some other localities (where climate and soil conditions are suitable with ecological requirements of macadamia trees).

- To coordinate with the Ministry of Industry and Trade and the Vietnam Macadamia Association to research and forecast the supply and consumption market of macadamia products domestically and internationally to orient development and promptly adjust production, promote trade promotion, diversify products, build brands of Vietnamese macadamia products.

- To assume the prime responsibility for monitoring and evaluating the results of the annual implementation of the Scheme, and to organize a preliminary review in a 5-year period; to identify difficulties and problems and to propose solutions to report to the Prime Minister in each period.

2. The Ministry of Industry and Trade

- To assume the prime responsibility for and cooperate with the Ministry of Agriculture and Rural Development in supporting localities, industry associations, enterprises and cooperatives to build and develop brands of Vietnamese macadamia products; to direct and guide localities to review and build a system of deep processing establishments, modern technology with appropriate scale, associated with raw material zones, creating diversified and high quality products for domestic consumption and export.

- To assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development and the Vietnam Macadamia Association in, researching and forecasting domestic and international consumption markets for macadamia products; to promote trade, develop markets for Macadamia products at home and abroad.

3. The concerned ministries and sectors

Based on assigned functions and tasks, coordinate with the Ministry of Agriculture and Rural Development and the localities in formulating and completing mechanisms and policies and organizing the implementation of the Scheme.

4. The People's Committees of centrally-affiliated cities and provinces

- The localities with climatic and soil conditions suitable to the ecological requirements of the macadamia trees shall review, evaluate, determine the appropriate scale and land fund for planting macadamia nuts, and integrate macadamia cultivation zones into the provincial planning. To research and develop local mechanisms and policies in the direction of encouraging production linkages and land accumulation to form concentrated intensive macadamia cultivation zones; to create favorable conditions for enterprises to invest and develop macadamia under the value chain, deep processing, associated with the consumption market. To balance and mobilize capital sources to implement the Scheme in accordance with the law.

- To strictly manage the production and trade of macadamia cultivars in the localities according to its competence and regulations of law; to strictly handle organizations and individuals producing and supplying macadamia cultivars in violation of the law.

- To direct functional agencies to organize propaganda and guide people to grow macadamia trees with clonal propagation (grafts) recognized by the Ministry of Agriculture and Rural Development, on the effectiveness of using good cultivars in production, technical measures for intensive Macadamia cultivation achieved high economic efficiency; to strengthen the organization of training, further training and transfer of science and technology on macadamia development to people and enterprises;

- To coordinate with the Ministry of Agriculture and Rural Development and other ministries and sectors in formulating mechanisms and policies to implement the Scheme.

- To organize a preliminary review and assessment of the results of the implementation of the Scheme for the 2021 - 2025 period, as a basis for determining the appropriate development scale of Macadamia in the next period; to promptly report difficulties and problems and propose solutions to the Ministry of Agriculture and Rural Development for synthesis and report.

5. The Vietnam Macadamia Association

- To closely coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade and relevant ministries, sectors and localities in the process of implementing the Scheme; to research and forecast domestic and international Macadamia products consumption market to orient development, promptly adjust production, promote trade promotion, diversify products, build brands of Vietnamese macadamia products.

- To coordinate with localities, cooperatives, cooperative groups and households to invest in building raw material zones, linking production under value chains, deep processing, associated with consumption markets.

 - To strengthen cooperation and communications with the Macadamia Associations of countries around the world to propagate and promote the Macadamia industry and products of Vietnam to domestic and international organizations and individuals; to promote its role as a member of the World Macadamia Association, gather information on the development trend of Macadamia in the world; to create favorable conditions to promote the effective and sustainable development of Vietnam's macadamia industry.

Article 2. This Decision takes effect from the date of signing.

Article 3. Ministries, Heads of ministerial-level agencies, Heads of Governmental agencies, Chairpersons of the People’s Committees of centrally-affiliated cities and provinces, relevant organizations and individuals shall take responsibilities for implementation of this Decision.