Decision 417/QD-TTg on Scheme on development of the fruit and vegetable processing industry in the 2021-2030 period

DECISION 

Approving the Scheme on development of the fruit and vegetable processing industry in the 2021-2030 period^[1]

THE PRIME MINISTER

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

Pursuant to the November 26, 2014 Law on Investment;

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

Pursuant to the June 29, 2006 Law on Standards and Technical Regulations;

Pursuant to the November 21, 2007 Law on Product and Goods Quality;

Pursuant to the June 17, 2010 Law on Food Safety;

Pursuant to the Government’s Decree No. 124/NQ-CP of September 3, 2020, promulgating the Government’s program of action for implementation of the Political Bureau’s Resolution No. 23-NQ/TW of March 22, 2018, on orientations for formulating national industrial development policies up to 2030, with a vision toward 2045;

Pursuant to the Government’s Resolution No. 53/NQ-CP of July 17, 2019, on solutions to encourage enterprises to invest in agriculture in an efficient, safe and sustainable manner;

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

DECIDES:

Article 1. To approve the Scheme on development of the fruit and vegetable processing industry in the 2021-2030 period (below referred to as the Scheme) with the following major contents:

I. VIEWPOINTS AND OBJECTIVES

1. Viewpoints

- To develop the fruit and vegetable processing industry into a large commodity production sector which is highly competitive in the international market in conformity with the Party’s and State’s orientations on development of the agro-forestry-fishery product processing industry.

- To develop the fruit and vegetable processing industry in a sustainable manner based on market demands and raw material supply capacity; to concentrate efforts on making the best use of production advantages each region or locality.

- To improve quality and efficiency, ensuring food safety and international competitiveness on the basis of boosting investment in developing modern fruit and vegetable processing and preservation enterprises.

- To mobilize social resources for development of the fruit and vegetable processing industry in conformity with particularities of each locality through setting forth orientations and solutions and formulating mechanisms and policies to remove bottlenecks and create a favorable open environment for enterprises to intensify their development investment.

2. Objectives

a/ General objectives

By 2030, the fruit and vegetable processing industry will be developed in an efficient, safe and sustainable manner, meeting production requirements and demands of the consumption market, reaching an advanced technological level in centralized fruit and vegetable production areas with high output, ensuring the industry’s satisfaction of food quality and safety requirements and products’ high added value and competitiveness, thus contributing to bringing Vietnam’s fruit and vegetable export turnover to top 5 countries in the world.

b/ Specific targets by 2030

- Fruit and vegetable export turnover will reach USD 8-10 billion, of which processed fruit and vegetable products will account for at least 30%.

- Post-harvest losses of fruits and vegetables will be annually reduced by over 1% on average.

- Over 70% of establishments that process and preserve fruits and vegetables for export will attain advanced production technology level and capacity.

- Fruit and vegetable processing output will reach 2 million tons of products/year, nearly doubling that of 2020.

- To attract investment in building 50-60 new large- and medium-sized fruit and vegetable processing facilities; to build and develop a number of modern fruit and vegetable processing groups and enterprises that are of regional or international stature and internationally competitive.

II. TASKS AND SOLUTIONS

1. Tasks:

a/ Promoting investment aimed to raise fruit and vegetable processing capacity

To attract investment in building modern processing facilities and upgrading technologies to advanced level so as to raise fruit and vegetable processing capacity.

- In the 2021-2025 period, to focus on attracting investment in building 20-25 new large- and medium-sized processing facilities in centralized fruit and vegetable production areas; in the 2026-2030 period, based on practical market demand and raw material production capacity to continue investing in building around 30-35 processing facilities under the following projects:

+ Investment projects with state-of-the-art fruit and vegetable processing technologies and eco-friendly clean technologies to turn out new products of high added value;

+ Inter-provincial and inter-regional investment projects that are capable of leading the market and creating key fruit and vegetable products for export and acting as the core in linking production, processing and consumption chains;

+ Investment projects that can make changes in fruit and vegetable production methods and customs, shifting from obsolete to modern, hi-tech, and eco-friendly production methods following the circular economy’s models.

- To strongly develop small-sized fruit and vegetable processing facilities with appropriate capacity and technologies suitable to particular characteristics and material production capacity of localities having no production advantages in order to diversify categories of processed fruit and vegetable products.

- To concentrate efforts on renovating and upgrading obsolete fruit and vegetable processing and preservation facilities in order to raise their processing capacity and technological levels, satisfying food hygiene and safety requirements and meeting greater demands of consumption markets.

- To build clusters of associated enterprises that are capable of linking fruit and vegetable processing and consumption with production in localities and regions with large fruit and vegetable outputs (the Northern delta, Northwestern, Northern Central Vietnam, Central Highlands, Southeastern and Mekong River delta regions); to develop large groups and enterprises that have sufficient financial, scientific and technological capabilities and outlets in order to lead association chains to operate in a smooth and efficient manner.

b/ Developing fresh fruit and vegetable preliminary processing and preservation facilities

- To build a system of fresh fruit and vegetable preliminary processing and packaging establishments and cold-storage warehouses of a scale and with equipment suitable to outputs and characteristics of major categories of fruits and vegetables so as to quickly reduce post-harvest losses.

- To attract more and more investment so that by 2030, centralized fruit and vegetable production areas, production cooperatives and large procurement establishments and agents will have machinery, equipment, preliminary processing and packaging facilities and cold-storage warehouses of an appropriate scale, thereby forming a synchronous system of preliminary processing and packaging facilities.

- To encourage enterprises to invest in food irradiation centers meeting international standards associated with large-sized centralized fruit and vegetable production areas.

c/ Intensifying the processing of key fruit and vegetable products and high added-value products

To intensify deep processing and diversify products processed from fruits and vegetables and discarded products and by-products from the processing process; to strive for the target that in the 2021-2030 period, the added-value growth rate will reach over 10% per year.

- To concentrate efforts on key product groups: (i) canned fruits and vegetables; (ii) frozen fruits and vegetables; (iii) fruit and vegetable juices and purees; (iv) dried fruits and vegetables, fruit and vegetable snacks and pickled fruits and vegetables.

- To diversify products processed from fruits and vegetables with rooms for development in markets in which Vietnam has production advantages and of which ratios of processed materials remain low (dragon fruit, avocado, litchi, longan, jackfruit, mango, banana, citrus fruits, watermelon, assorted vegetables, kohlrabi, tomato, cucumber, carrot, herbs, etc.).

- To change the product structure from raw products to refined products, deeply processed products and synthesized products so as to turn out high added value (instant food, functional food, pharmaceuticals, cosmetics, etc.).

- To develop processing of fruits and vegetables being specialties of localities and regions and products under the “One Commune, One Product” program in order to stabilize and improve food quality and safety and expand product shelf life.

- To promote processing of discarded products and by-products from fruit and vegetable production and processing in order to turn out products of high economic value while ensuring environmental protection (animal feed, fertilizers, etc.); to develop models of enterprises operating in the circular economy in the fruit and vegetable processing industry.

d/ Organizing production of raw fruits and vegetables for processing

To build specialized fruit and vegetable production areas in order to ensure that supplied raw materials (of a total output of 5-6 million tons by 2030) meet food quality and safety requirements for processing.

- Based on orientations for development of fruit and vegetable production nationwide, every locality shall select and prioritize development of a number of key types of fruits and vegetables being regional specialties in which it has advantages and is capable of cooperating with neighboring localities in forming large-scale centralized fruit and vegetable production areas.

- To intensify research into, and selection and creation of, fruit and vegetable varieties of high yield and quality and capable of resisting drought, salinity and pests; to develop organic fruit and vegetable production, and properly apply sustainable intensive farming methods; to apply technical advances to production so as to facilitate year-round harvest and improve season-based crop production.

- To step by step carry out digital transformation in fruit and vegetable production on the basis of databases on land, plants, environment and weather in order to improve yields and product quality.

dd/ Developing fruit and vegetable consumption markets

(i) Regarding export markets:

- To increase market survey and forecast capacity; to update information on trade policies of each country and market regarding market shares, taste, prices, product quality standards, technical barriers and tariffs so as to set out orientations for domestic fruit and vegetable production and processing activities.

- To diversify markets, particularly potential markets and key markets; to continue searching and exploiting new markets in which Vietnam’s fruits and vegetables have advantages in terms of categories, quality and seasons, specifically as follows:

+ For fresh fruit and vegetable products: To concentrate on markets in a close or comparatively close geographical distance, particularly markets of China, Taiwan (China), Republic of Korea, Japan, and ASEAN countries, so as to reduce logistics service charges and product loss ratios;

+ For processed fruit and vegetable products: To focus on markets in developed countries in a far geographical distance such as the EU, US, Australia and Middle East;

+ For specialty fruits and vegetables and herbs: To focus on markets in developed countries where a large number of Vietnamese people are residing such as the EU, US, Eastern Europe and Australia.

- To organize trade promotion activities for key fruit and vegetable products, new products and added-value products among big distributors, supermarket systems and consumers in different countries; to intensify the building of brands and geographical indications for Vietnam’s popular fruit and vegetable products.

(ii) Regarding the domestic market:

- To continue implementing the campaign “Vietnamese people prioritize Vietnamese goods” in an effective and practical manner; to honor Vietnamese fruit and vegetable products that are of high quality and meet food safety requirements.

- To intensify activities to link producers and consumers, organize exhibitions of, and promote and advertise, fruit and vegetable products; to diversify distribution channels for fruit and vegetable products in a modern and appropriate manner.

2. Implementation solutions:

a/ Improving institutions, mechanisms and policies to develop fruit and vegetable processing

- To continue implementing current mechanisms and policies in order to create favorable conditions and simplify procedures for provision of support for development of the fruit and vegetable processing and preservation industry (the Government’s Decree No. 57/2018/ND-CP of April 17, 2018, on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas; and Decree No. 98/2018/ND-CP of July 5, 2018, on policies to promote cooperation and association in production and consumption of agricultural products, etc.).

- To review and improve mechanisms, policies and legal documents that encourage organizations and individuals to invest in fruit and vegetable processing and preservation; to integrate contents on development of the fruit and vegetable processing and preservation industry into strategies for and plans on development of agriculture and national, regional and local socio-economic development strategies and master plans.

- To study and formulate new mechanisms and policies, especially to encourage enterprises to invest in deep processing of fruit and vegetable products in order to create high added value and quickly reduce post-harvest losses; and at the same time, to adopt policies to promote innovative startups operating in the fruit and vegetable processing and preservation industry:

+ Policies to encourage fruit and vegetable processing enterprises to invest in innovation and application of advanced technologies and clean and eco-friendly technologies;

+ Mechanisms for hire and purchase of land use rights and association with farmers to form centralized production areas and make intensive investment to create stable supply sources of fruit and vegetable materials;

+ To seek funding sources first of all to promptly and sufficiently meet the demand for capital for fruit and vegetable production and trading development; to simplify procedures and step up provision of credit loans based on production, processing and consumption value chains.

b/ Intensifying research and application of advanced technologies to fruit and vegetable processing and preservation

- To effectively implement national scientific and technological programs to help enterprises and cooperatives upgrade their fruit and vegetable processing and preservation technologies.

- To concentrate efforts on research, development and transfer of advanced production technologies and techniques in treatment and preservation of fresh fruits and vegetables and processing of fruits and vegetables and discarded products and by-products from fruits and vegetables.

- To research and apply to the utmost achievements of the Fourth Industrial Resolution along the line of integrating digital applications in agriculture (artificial intelligence, Internet of Things, big data, etc.) in order to develop advanced production processes and smart fruit and vegetable processing and preservation models.

c/ Improving quality and ensuring food safety and hygiene for fruits and vegetables

- To step up the implementation of the State’s regulations on management of food quality and safety and import-export quarantine for fruits and vegetables and plant-based foods; to strictly manage import, production, trading and use of pesticides (including also chemical preservatives).

- To review and improve national standards on fruit and vegetable products, prioritizing processed fruit and vegetable products of massive volume.

- To formulate and apply regulations on maximum residue limits (MRLs), ensuring their completeness and harmony with international standards applied by importing countries; to disseminate them among farmers, production establishments and enterprises with specific guidance for application.

- To apply advanced quality management systems (HACCP, ISO, etc.) in establishments processing fruits and vegetables for export so as to ensure food quality and safety according to international standards.

- To build a system for tracing origins, production unit codes and packaging facility codes on the basis of applying information technology and origin-tracing software.

d/ Developing the system of logistics services and auxiliary industries serving the fruit and vegetable industry

- To build logistics centers for agricultural products in regions and localities where infrastructure and transport conditions permit for linking to fruit and vegetable production centers in order to uniformly manage product quality and reduce goods circulation costs.

- To invest in development of cold supply chains and services related to fruit and vegetable import and export; in the immediate future, to invest in building large cold-storage warehouses with advanced loading and unloading technologies at fruit and vegetable distribution centers, wholesale markets and border gates with China and international seaports and airports.

- To attach importance to developing auxiliary industries serving the fruit and vegetable industry along the line of intensifying research into, engineering and manufacture of, assorted machinery and equipment suitable to the scale of enterprises, eco-friendly packaging and fruit and vegetable additives and preservatives that satisfy food safety requirements.

dd/ Human resource training and development

- To formulate and implement mechanisms and policies on development of human resources for the fruit and vegetable processing industry, especially in the context of the Fourth Industrial Revolution and international economic integration; to mobilize enterprises to participate in the training process so as to link training with practice and employment opportunities.

- To provide more training courses for corporate managers, production managers and technical workers with high qualifications to meet requirements of operation of modern equipment and chains and advanced technologies; to organize training and refresher courses on fruit and vegetable production, processing and preservation techniques and food safety and hygiene for workers directly engaged in production activities.

III. FUNDS FOR IMPLEMENTATION OF THE SCHEME

Funds for implementation of the Scheme come from the state budget (central and local budgets); donations, aid and other sources lawfully mobilized from domestic and overseas organizations and individuals in accordance with law.

- Based on tasks assigned under the Scheme, related ministries and sectors shall formulate their annual operation plans and estimate funds for submission to competent authorities for approval in accordance with the law on the state budget.

- Localities shall arrange local budgets and mobilize lawful sources for developing the fruit and vegetable processing industry in their localities under regulations.

Article 2. Organization of implementation

1. The Ministry of Agriculture and Rural Development shall:

a/ Assume the prime responsibility for, and coordinate with ministries, sectors, provincial-level People’s Committees, and related agencies in, organizing the implementation of the Scheme; proactively integrate objectives and tasks set forth in the Scheme in national target programs and related schemes which the ministry is in charge of or manages; examine and evaluate the implementation of the Scheme; and annually report thereon to the Prime Minister.

b/ Formulate, approve, and organize the implementation of, the Scheme on development of key fruit trees nationwide by 2025, with orientations toward 2030.

c/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, effectively implementing the Government’s Decree No. 98/2018/ND-CP of July 5, 2018, on policies to encourage and develop cooperation and association in production and consumption of agricultural products to increase association among related stakeholders, especially between processing enterprises and farmers and cooperatives.

d/ Formulate sets of data on properties and nutritious ingredients of Vietnamese fruits.

dd/ Review and improve the system of national standards on processed fruit and vegetable products.

e/ Carry out research and development activities and transfer advanced production technologies and techniques for processing and preservation of fresh fruits and vegetables and processing of fruits and vegetables and discarded products and by-products from fruits and vegetables.

g/ Formulate and perform agricultural extension tasks to boost production of high-quality raw material fruits and vegetables for processing.

h/ Coordinate with the Ministry of Industry and Trade in formulating and implementing plans on seeking of markets that import Vietnam’s fruit and vegetable products.

i/ Coordinate with the Ministry of Science and Technology, trade associations and enterprises in intensifying the building and application of the origin tracing system for agricultural products to meet market demands.

2. The Ministry of Industry and Trade shall:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, assessing demands and tastes for consumption of fruit and vegetable products in potential markets; set orientations for export of fruits and vegetables in the 2021-2030 period and subsequent years.

b/ Assume the prime responsibility for, and coordinate with related ministries, sectors and associations in, carrying out trade promotion and brand building activities for key fruit and vegetable products.

c/ Assume the prime responsibility for, and coordinate with the Ministry of Transport, Ministry of Agriculture and Rural Development and related agencies in, formulating a scheme on development of logistics services for fruit and vegetable products in association with raw material production areas, serving domestic consumption and export.

d/ Formulate and perform industrial extension tasks in order to promote development of the fruit and vegetable processing and preservation industry.

3. The Ministry of Planning and Investment shall:

a/ Assume the prime responsibility for, and coordinate with related ministries and agencies in, effectively implementing the Government’s Decree No. 57/2018/ND-CP of April 17, 2018, on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas.

b/ Balance and arrange funds for localities to invest in building infrastructure facilities serving centralized fruit and vegetable production, and provide support for  investment in fruit and vegetable processing and preservation under regulations.        

4. The Ministry of Finance shall:

Balance and arrange non-business funds for implementation of tasks set forth in the Scheme which are to be covered by the central budget in accordance with the Law on the State Budget and in conformity with annual budget-balancing capacity.

5. The Ministry of Natural Resources and Environment shall:

a/ Assume the prime responsibility for, and coordinate with related ministries and agencies in, proposing amendments to land policies and formulating mechanisms for enterprises and cooperatives to access land for building fruit and vegetable processing and preservation facilities and forming concentrated raw material production areas serving the processing industry.

b/ Study and propose measures to support enterprises in using and recycling by-products obtained in the process of fruit and vegetable production and processing.

6. The Ministry of Science and Technology shall:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, studying policies to encourage fruit and vegetable processing enterprises to invest in innovation and application of advanced technologies as well as clean and eco-friendly technologies.

b/ Promptly support enterprises in registration of intellectual property, geographical indications, technical know-hows and technological solutions and origin tracing in the fruit and vegetable processing and preservation industry.

7. The Ministry of Transport shall:

Assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development, Ministry of Industry and Trade and related agencies in, studying and building a system of transport infrastructure facilities linking large-scale concentrated agricultural production areas, thus facilitating the development of logistics services, reduction of transport costs and improvement of competitiveness of agricultural products.

8. The State Bank of Vietnam shall:

Continue directing credit institutions to arrange funding sources first of all for providing, and simplify procedures for fruit and vegetable producers, processors and consumers to borrow, credit loans.

9. The Ministry of Health shall:

Assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, formulating and promulgating regulations on MRLs of pesticides in fruits and vegetables in harmony with international regulations.

10. Other ministries and sectors shall:

Based on their assigned functions, tasks and scope of state management, coordinate with the Ministry of Agriculture and Rural Development in effectively implementing related tasks set forth in the Scheme.

11. Provincial-level People’s Committees shall:

a/ Organize the implementation of the Scheme by incorporating contents of the Scheme in their local socio-economic development plans; annually sum up and report on implementation of the Scheme to the Ministry of Agriculture and Rural Development for further reporting to the Prime Minister.

b/ Support enterprises in investing in fruit and vegetable processing and preservation in conformity with their functions and tasks and local resources in order to promote the development of the fruit and vegetable processing industry and linkage between production and consumption in their localities.

c/ Assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, building concentrated fruit and vegetable production areas and fruit and vegetable production-processing-consumption chains in their localities.

12. The Vietnam Fruit and Vegetable Association and enterprises shall:

a/ Coordinate with ministries and sectors in effectively implementing the Scheme and policies on provision of support for people, cooperatives and enterprises regarding fruit and vegetable processing, preservation and consumption.

b/ Participate in proposing mechanisms and policies to encourage and support organizations and individuals in investing in fruit and vegetable processing and preservation in association with raw material production.

c/ Grasp market information and legal regulations of importing countries and Vietnam; proactively build sustainable production-processing-consumption linkages; invest in raising technological levels and processing capacity; develop and apply product origin tracing systems; and improve competitiveness of Vietnamese fruit and vegetable products.

Article 3. Implementation provisions

This Decision takes effect on the date of its signing.

Ministers, heads of ministerial-level agencies and government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations and individuals shall implement this Decision.-

For the Prime Minister
Deputy Minister
TRINH DINH DUNG