Decision No. 490/QD-TTg dated May 07, 2018 of the Prime Minister on approving the One Commune One Product program in the 2018-2020 period

DECISION

Approving the One Commune One Product program in the 2018-2020 period^[1]

THE PRIME MINISTER

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

Pursuant to the Prime Minister’s Decision No. 1600/QD-TTg of August 16, 2016, approving the national target program on building a new countryside in the 2016-2020 period;

Pursuant to the Prime Minister’s Decision No. 1760/QD-TTg of November 10, 2017, amending and supplementing the Prime Minister’s Decision No. 1600/QD-TTg of August 16, 2016, approving the national target program on building a new countryside in the 2016-2020 period;

Pursuant to the Prime Minister’s Decision No. 414/QD-TTg of April 4, 2017, promulgating a plan to implement the National Assembly’s Resolution No. 32/2016/QH14 of November 23, 2016, on further raising the effectiveness and efficiency of implementation of the national target program on building a new countryside associated with agriculture restructuring;

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

DECIDES:

Article 1.To approve the One Commune One Product program in the 2018-2020 period (below referred to as OCOP program) with the following principal contents:

1. Viewpoints

The OCOP program is a program on economic development in rural areas toward developing internal strength and increasing values; and provides solutions and tasks for implementing the national target program on building a new countryside. The OCOP program will center on developing advantageous agricultural and non-agricultural products and services of each locality according to value chains, which will be carried out by the private economic sector (enterprises and production households) and collective economic sector.

The State will play a facilitating role, promulgate legal frameworks and policies for implementation; set orientations for the planning of commodity production and service areas; manage and supervise product quality standards; and support the training, technical guidance, science and technology application, brand building, trade promotion, product advertising and credit extension.

2. Objectives

a/ Overall objectives:

-To develop forms of production and business organization (with priority given to cooperatives and small- and medium-sized enterprises) to produce advantageous traditional products and services that meet required standards and are competitive at home and abroad, contributing to rural economic development;

- To contribute to economic restructuring, improving people’s incomes and livelihoods and effectively satisfying the group of criteria on “economy and organization of production” in the national set of criteria for new-style rural communes;

- Production development in rural areas will contribute to agricultural and rural industrialization and modernization; promoting rational rural labor restructuring (limiting migration to cities), protecting the environment and preserving the fine traditional values of rural Vietnam.

b/ Specific objectives:

- To put into place a synchronous OCOP program management system from central to local (provincial, district and commune) levels;

- To issue a set of criteria and processes for product evaluation and rating;

- To adopt and implement synchronous policies to effectively implement the OCOP program nationwide;

- To standardize at least 50% of the total existing products or around 2,400 products; to strengthen and improve the organization of production toward building partnership between production households and cooperatives and enterprises;

- To build 8-10 culture and tourism village models;

- To build OCOP product design, innovation and development centers associated with product advertising and introduction in areas where conditions permit;

- To strengthen all enterprises and cooperatives participating in the OCOP program;

- To strive to develop an addition of around 500 small- and medium-sized enterprises, and cooperatives participating in the OCOP program;

- To step up OCOP product trade promotion and advertising programs;

- To provide training in production and business management knowledge for around 1,200 state management officials (at central, provincial and district levels) engaged in implementing the OCOP program and all managers of enterprises and cooperatives and heads of registered production households participating in the OCOP program.

3. Scope, subjects and principles of implementation

a/ Scope of implementation

- Geographical area: The OCOP program will be carried out in all rural areas nationwide; local authorities are encouraged to implement the program in urban areas in an appropriate manner, depending on their actual situation.

- Duration: The OCOP program will be implemented from 2018 to 2020.

b/ Subjects of implementation

- Products: Local or domesticated commodity and service products, especially regional specialties, which are produced or provided based on tapping comparative advantages in local ecological conditions, culture, genetic resources, knowledge and technologies.

- Subjects of implementation: Small- and medium-sized enterprises, cooperatives, cooperative groups and registered production households.

c/ Principles of implementation

- Products meeting international quality standards;

- Improving human resources quality.

4. Contents

a/ Implementing the OCOP cycle in the following order:

- To disseminate public information about and provide guidance on the OCOP;

- To receive registrations of product ideas;

- To receive production and business plans and projects;

- To implement production and business plans and projects;

- To evaluate and rate products;

- To promote trade.

(Appendix I)

b/ Developing products and services in 6 groups, namely:

- Foodstuffs: raw and processed farm products.

- Beverages: alcoholic and non-alcoholic beverages.

- Herbal medicines: herbal plant products.

- Fabric and garment: cotton and fiber products.

- Souvenir and interior decoration: souvenir and household utensil products made of wood, fiber, bamboo and rattan, metal, porcelain and textile and garment.

- Rural tourism services and sale: service products for tourism, recreation, entertainment, study, research…

c/ Product management and supervision system, including:

- Product evaluation and rating with five-star ratings:

Five-star products: international standard high-quality products;

Four-star products: standard products that may be upgraded to meet international standards;

Three-star products: standard products that may be upgraded to four-star products;

Two-star products: products that fail to fully satisfy standards but may be upgraded to three-star products;

One-star products: Poor products that may be developed into two-star products.

(Appendix II)

- The national database system for the OCOP program.

- Examination and monitoring work.

- Human resources training:

Trainees: management officials implementing the OCOP program from central to grassroots level; managers and workers of enterprises and cooperatives participating in the OCOP program.

Training contents: OCOP program management knowledge; specialized knowledge of production and business administration according to the OCOP program training framework.

(Appendix III)

d/ Trade promotion: product advertising and marketing activities; e-commerce activities; organization of OCOP product advertising events coupled with tourism development and provincial, regional, national and international OCOP product fairs and exhibitions; building a network of centers of OCOP product design, innovation and development (OCOP centers) associated with supporting startups and OCOP product design, advertising and introduction; points for OCOP product display and sale in tourist zones, residential areas, supermarkets, traditional markets and administrative centers at district, provincial and central levels.

dd/ Component projects of the OCOP program: a project on development of OCOP product brands; a project on culture and tourism village models; a project on a number of national key rural production and service areas (representing advantageous ecological-cultural areas nationwide); and a project on centers for OCOP product design, innovation and development associated with OCOP product advertising and introduction in key regions. Component projects 2, 3 and 4 will be carried out in the public-private partnership form after obtaining approval of competent authorities.

5. Sources and structure of funds mobilized for implementation

The total fund for the program implementation is estimated at around VND 45 trillion, including:

- Funds for implementation of the OCOP program will be mainly from enterprises, cooperatives, and production households which will arrange funds by themselves, loans taken from credit institutions, investment funds, small- and medium-sized enterprise development funds, and cooperatives development support funds, and financial assistance from international organizations,…

- In addition, the state budget will provide partial support for the national target program on building a new countryside in the 2016-2020 period, science and technology fund, industrial and agricultural extension funds and other central and local funds for integrated implementation.

6. Major tasks and solutions

a/ Public information work to raise awareness:

Public information work will be carried out continuously in the mass media from central to commune and village levels; at conferences to launch the implementation the OCOP program and via the OCOP program website in the form of news stories, specialized sections and stories about products associated with specific images and slogans.

b/ Development of the management system for the OCOP program implementation

- The central level:

+ The steering agency: The Central Steering Committee for National Target Programs.

+ The standing agency: The Ministry of Agriculture and Rural Development.

+ The full-time advisory and supporting agency: The Central Coordination Office for New Countryside Development.

+ At the central level: The Ministry of Agriculture and Rural Development will set up an advisory council for the OCOP program to assist localities in evaluating and rating products; provide advice on building national brands for OCOP products; supervise OCOP product quality; and study and propose mechanisms and policies for the implementation of the OCOP program.

- At the provincial level:

+ The steering agency: The provincial-level Steering Committees for National Target Programs;

+ The full-time advisory and supporting agencies: Provincial-level Departments of Agriculture and Rural Development or provincial-level Coordination Offices for New Countryside Development.

+ The establishment of provincial-level or district-level product evaluation and rating councils for annual evaluation will be decided by the People’s Committee of the same level.

- At the district level:

+ The steering agency: The district-level Steering Committees for National Target Programs;

+ The full-time advisory and supporting agencies: District-level Agriculture and Rural Development Divisions or Economic Divisions.

- At the commune level: Commune-level People’s Committees will implement the OCOP program.

c/ Mechanisms and policies:

Economic organizations and production households participating in the OCOP program will be entitled to the State’s current policies on the development of crafts and trades and agricultural and rural development. Based on the actual situation, provincial-level People’s Committees will adopt appropriate mechanisms and policies to support credit interest rates; science and technology application; and training (for directors, business staff and accountants in small- and medium-sized enterprises and heads of production households with approved business plans);

d/ Science and technology, protection of intellectual property rights:

- To develop and implement science and technology policies for OCOP products toward research and application, research and development and building of product standards;

- To formulate and implement scientific research and technology development subjects and projects, improve technologies and apply technologies to the production and trading of OCOP products. These subjects and projects will be based on specific requirements of economic organizations (with priority given to cooperatives and small- and medium-sized enterprises with specific application addresses);

- To prioritize the development, registration for establishment, protection and enforcement of intellectual property rights for OCOP products;

- To apply management science to developing models of small- and medium-sized enterprises and cooperatives turning out OCOP products in the community.

dd/ Setting up the system of consultants and partners supporting the OCOP program implementation:

- The system of consultants will consist of: (i) the program management agencies at all levels, especially at the district level; and (ii) individuals and legal entities that have experiences and capacity to provide comprehensive advice on the OCOP program’s activities.

- The system of OCOP program partners will include enterprises in production and trading chains; institutes, universities and scientists related to the program’s products from central, regional and local science and technology organizations; business associations; product sales promotion and advertising organizations, banks, investment funds, central and local radio and television stations and journalists.

e/ Mobilization of resources:

- The largest resources will come from the community, therefore it is required to adopt solutions to mobilize resources from the community such as capital, land, labor, raw materials and technologies in accordance with law and during the establishment of economic organizations in the form of capital contribution or implementing activities under the annual OCOP cycle;

- To mobilize credit from credit institutions supporting economic organizations and production households participating in the OCOP program;

- The State will timely allocate appropriate budget funds to the community for investment in production and services to implement the OCOP program.

g/ International cooperation:

- To cooperate with other countries that implement OVOP/OTOP/OCOP so as to share experiences and export OCOP products and increase their competitiveness in the international market;

- To organize OCOP program fact-finding tours in appropriate countries (with priority participants being state officials directly involved in management and administration of the OCOP program and managers of enterprises and cooperatives participating in the OCOP program);

- To organize annual or biennial international OCOP forums in order to improve the OCOP program implementation and mobilize international resources for the OCOP program.

Article 2.Organization of implementation

1. The Ministry of Agriculture and Rural Development shall:

a/ Assume the prime responsibility for preparing and implementing plans on the OCOP program implementation for each period and every year;

b/ Direct and guide provincial-level authorities in elaborating and implementing the OCOP program in localities; regularly inspect and evaluate the implementation of the OCOP program in the localities;

c/ Assume the prime responsibility for summarizing plans on the OCOP program implementation of ministries, central sectors and localities and incorporating them into the general plan on implementation of the national target program on building a new countryside and send them to the Ministry of Planning and Investment and Ministry of Finance under regulations;

d/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and Ministry of Finance in, proposing a plan on allocation of central budget funds for the OCOP program under the fund allocation plan for the national target program on building a new countryside;

dd/ Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and related ministries, sectors and units in, developing a set of criteria for OCOP product evaluation and rating; organize product evaluations and ratings at national product fairs; mobilize financial resources from investment funds, international organizations and donors to support the implementation of the OCOP program; compile training textbooks and documents for the OCOP program; formulate and implement a number of component projects of the OCOP program;

e/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, selecting 10 provinces and cities to represent economic regions for pilot direction of the OCOP program implementation;

g/ Assume the prime responsibility for, and coordinate with related ministries, sectors and units in, evaluating and reviewing the implementation of the OCOP program scheme during the 2018-2020 period and report and propose the OCOP program scheme for the subsequent period to the Prime Minister for consideration and approval.

2. The Ministry of Planning and Investment shall appraise fund allocation estimates, specific targets and tasks to implement the OCOP program proposed by the Ministry of Agriculture and Rural Development and incorporate them into annual plans for submission to the Prime Minister for consideration and decision.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and Ministry of Agriculture and Rural Development in, balancing and ensuring the allocation of funds for non-business expenditures for the OCOP program contents and tasks under regulations.

4. The Ministry of Industry and Trade shall:

a/ Coordinate with related ministries and sectors in supporting economic organizations and households to design products; effectively implementing industrial extension and trade promotion activities under the OCOP program;

b/ Annually coordinate with the Ministry of Agriculture and Rural Development and related ministries and sectors in organizing OCOP product evaluations and ratings.

5. The Ministry of Science and Technology shall:

a/ Assume the prime responsibility for, and coordinate with ministries, sectors and localities in, supporting economic organizations and households to design products; boosting science and technology application to producing products of the OCOP program; summarize annual scientific and technological proposals and tasks related to the development of OCOP products;

b/ Support localities and economic organizations to develop and register the establishment, protection and enforcement of intellectual property rights over OCOP products and provide advice on development of OCOP product brands;

c/ Annually coordinate with the Ministry of Agriculture and Rural Development and related ministries and sectors in organizing OCOP product evaluations and ratings.

6. The Ministry of Health shall:

a/ Direct agencies in the health sector to support economic organizations and production households in strictly complying with the regulations on food safety and registering product quality declarations; implement scientific and development research subjects, develop quality standards and assess the effects of products derived from herbal plants,..

b/ Annually coordinate with the Ministry of Agriculture and Rural Development and related ministries and sectors in organizing OCOP product evaluations and ratings.

7. The Ministry of Culture, Sports and Tourism shall:

a/ Assist economic organizations and community groups in studying the development and advertising of tourism products and services associated with rural tourism on the basis of bringing into play the strengths of regional landscapes and cultural traditions; support localities in developing culture and tourism villages;

b/ Annually coordinate with the Ministry of Agriculture and Rural Development and related ministries and sectors in organizing OCOP product evaluations and ratings.

8. The Ministry of Transport shall regulate and connect domestic and international transport systems for the OCOP program products and organize trade promotion for OCOP products on air, road and waterway transport routes.

9. The Ministry of Information and Communications shall:

a/ Direct press agencies, radio and television stations to develop sections and increase time slots for disseminating information about the OCOP program; regularly publish news and articles on exemplary collectives and individuals with outstanding achievements in implementing the OCOP program;

b/ Annually coordinate with the Ministry of Agriculture and Rural Development and related ministries and sectors in organizing OCOP product evaluations and ratings.

10. Related ministries and sectors shall, within the ambit of their assigned powers and tasks, take the initiative in making implementation plans and concretize the tasks of the scheme associated with the fields under their management.

11. The State Bank of Vietnam shall direct and guide commercial banks, the Bank for Investment and Development of Vietnam, the Vietnam Bank for Agriculture and Rural Development and the Vietnam Bank for Social Policies to support enterprises, cooperatives and production households in taking out loans for production.

12. The central agencies of the Vietnam Fatherland Front and socio-political organizations, the Vietnam Cooperative Alliance, socio-professional organizations, associations and societies shall mobilize their members to actively participate in the OCOP program and proactively join in the value chains formed under the program.

13. Provincial-level People’s Committees shall:

a/ Based on the contents of the approved OCOP program and specific conditions and characteristics of their localities, direct the elaboration, approval and implementation of provincial-level plans to implement the OCOP program, focusing on and prioritizing the development of key advantageous commodity groups of each locality and rural tourism services;

b/ Allocate necessary funds and use the funds of the national target program on building a new countryside in the 2016-2020 period, industrial extension funds, local budgets, credits and other lawful funding sources to implement the OCOP program;

c/ Assign specific duties to provincial-level departments and sectors; and appoint standing agencies to advise on and assist the implementation of the OCOP program in their localities;

d/ Regularly inspect, supervise and evaluate the implementation of the OCOP program in their localities, strictly implement the regulations on periodical and extraordinary reporting to the central standing body of the OCOP program.

Article 3.This Decision takes effect on the date of its signing.

Article 4.Ministers, heads of ministerial-level agencies and heads of government-attached agencies, chairpersons of provincial-level People’s Committees and heads of related agencies and units shall implement this Decision.-

For the Prime Minister
Deputy Prime Minister
VUONG DINH HUE

* The appendices to this Decision are not translated.