Decision No. 604/QD-TTg dated May 25, 2012 of the Prime Minister approving the project on raising of productivity and quality of industrial products and goods under the national program to raise productivity and quality of products and goods of Vietnamese enterprises through 2020

DECISION

APPROVING THE PROJECT ON RAISING OF PRODUCTIVITY AND QUALITY OF INDUSTRIAL PRODUCTS AND GOODS UNDER THE NATIONAL PROGRAM TO RAISE PRODUCTIVITY AND QUALITY OF PRODUCTS AND GOODS OF VIETNAMESE ENTERPRISES THROUGH 2020

THE PRIME MINISTER

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

Pursuant to the Prime Minister’s Decision No. 712/QD-TTg of May 21, 2010, approving the national program to raise productivity and quality of products and goods of Vietnamese enterprises through 2020;

At the proposal of the Minister of Industry and Trade,

DECIDES:

Article 1.To approve the project on raising of productivity and quality of industrial products and goods under the national program to raise productivity and quality of products and goods of Vietnamese enterprises through 2020, with the following principal contents:

I. OBJECTIVES OF THE PROJECT

1. General objectives

a/ To raise productivity and quality of core industrial products and goods on the basis of application of management solutions, scientific advances, technological innovations, and investments in order to create a substantial progress from low productivity, quality, value added and technologies to high productivity, quality and value added and technologies with high scientific contents, and to increase the localization value, thereby contributing to increasing the contribution of total factor productivity (TFP) to the gross domestic product (GDP) growth rate; and to enable a number of industrial products and goods to join in the global value chain;

b/ To elaborate and improve the system of standards and technical regulations; to apply management systems, productivity and quality improvement tools, and advanced models and production processes in order to raise productivity and quality of industrial products and goods.

2. Specific objectives

a/ For the 2012-2015 period

- Five hundred new national standards (TCVNs) will be elaborated for quality management of core industrial products and goods;

- All products and goods which are likely to be unsafe (products and goods of group 2) under the management of the Ministry of Industry and Trade will be managed under national technical regulations (QCVNs);

- Forty per cent of enterprises producing core industrial products and goods will formulate and implement productivity and quality improvement projects;

- Two thousand enterprises producing core industrial products and goods will apply scientific advances and technological innovations, management systems, and productivity and quality improvement models and tools;

- Twenty per cent of laboratories for testing quality of core industrial products and goods will be upgraded and completed up to the world level, giving priority to textile and garment, leather and footwear, and plastics industries; to build a network of regionally and internationally accredited conformity assessment organizations up to international standards;

- To increase the contribution ratio of TFP to GDP up to 35% by 2015.

b/ For the 2016-2020 period

- Five hundred new TCVNs will be elaborated for quality management of core industrial products and goods;

- To complete the system of QCVNs, ensuring that all products and goods of group 2 under the management of the Ministry of Industry and Trade made during the period will be managed;

- Two thousand enterprises producing core industrial products and goods will apply scientific advances and technological innovations, management systems, and productivity and quality improvement models and tools;

- All enterprises producing core industrial products and goods will formulate and implement productivity and quality improvement projects;

- Fifty per cent of laboratories for testing quality of core industrial products and goods will be upgraded or completed up to the world level, giving priority to chemical and manufacturing mechanical industries; to build a network of regionally and internationally accredited conformity assessment organizations up to international standards;

- To increase the contribution ratio of TPF to GDP up to at least 40% by 2020.

II. MAJOR TASKS OF THE PROJECT

1. Propagation among and encouragement of enterprises to raise productivity and quality of industrial products and goods

a/ Dissemination and propagation on raising of productivity and quality of industrial products and goods

- To compile documents and conduct intensive propagation among enterprises and producers, first of all those directly participating in the project, about the role and importance of productivity and quality improvement as well as solutions to raise productivity and quality of products and goods under the project;

- To disseminate and popularize standards, technical regulations, advanced technological processes, scientific and technical advances, management systems up to international standards, and innovation models and tools;

- To elaborate and issue publications for propagation and promotion of enterprises participating in the project and achieving high productivity, quality and economic efficiency; and typical examples of application of productivity and quality raising solutions; as well as these solutions, for wide application in production.

b/ To set up a website to update information on and results of the project implementation, the application of scientific advances and technological innovations, national standards and technical regulations, and management systems, for enterprises’ and producers’ reference and application.

2. Elaboration of standards and technical regulations

- To elaborate plans on elaboration of TCVNs for core groups of industrial products and goods to meet objectives and requirements of raising of productivity and quality, and be conformable with international and regional standards;

- To elaborate plans on elaboration of QCVNs for products and goods of group 2 under the management of the Ministry of Industry and Trade, industrial safety regulations and electric and thermal safety regulations;

- To elaborate, supplement or amend TCVNs and QCVNs as planned; to disseminate TCVNs and QCVNs; and to provide guidance and consultancy to enterprises for elaboration and application of sets of in-house standards.

3. Application of management systems, productivity and quality improvement models and tools, scientific advances and technological innovations

a/ Dissemination of application of management systems, productivity and quality improvement models and tools

- To build on a pilot basis and develop production enterprises applying management systems up to international standards, namely: ISO 9001quality management system for manufacturing industries; ISO 29001 quality management system for petroleum and gas industry; ISO/TS 16949 quality management system for automobile manufacture and supporting industries; ISO/IEC 17025 quality management system for laboratories; ISO 22000, HACCP and GMP food safety mana-gement systems, OSHAS 18001 occupational safety and health administration system; ISO 14001 environmental management system , etc.

- To build on a pilot basis and develop production enterprises applying productivity and quality improvement tools: 5S, Kaizen; quality control circle (QCC); enterprise diagnosis techniques; key performance indicator (KPI); etc.

- To build on a pilot basis and develop production enterprises applying the model of business excellence - (BE); productivity management system -(PMS); and total quality management - (TQM); etc.

b/ Application of scientific advances and technological innovations

- To build a model of raising of productivity and quality of products and goods of core industrial production industries or hi-tech products prioritized for investment and development promotion;

- To sum up and widely apply the production with high productivity and quality models.

4. Formulation and implementation of projects on raising productivity and quality of core industrial products and goods

a/ Project on raising productivity and quality of garment and textile products: To raise the productivity and quality of cloth production to serve export garment; the production of cotton, fibers, synthetic fibers and accessories; and garment and fashion industry;

b/ Project on raising productivity and quality of leather footwear products: To raise the productivity and quality of production of leather products; production of leather footwear materials and accessories; and leather tanning and leather fashion industries;

c/ Project on raising productivity and quality of plastic products: To raise the productivity and quality of production of plastic products with clean and energy-saving technologies; plants producing materials, semi-finished products, chemicals and additives for plastics industry; production of molds, models, spare parts and equipment of plastics industry; and disposal of wastes and refuse of plastics industry;

d/ Project on raising productivity and quality of steel industry: To raise the productivity and quality of production of cast iron, steel billet and finished steel products with economical and efficient use of materials and saving of energy; and to build mining-metallurgy complexes, integrated steel mills, large-sized steel sheet mills;

e/ Project on raising productivity and quality of chemical industry: To raise the productivity and quality of production of fertilizers, plant protection drugs, petrochemical products, base chemicals, electro-chemical products, industrial gases, rubber products, detergents, paints and pharmaceutical chemicals;

f/ Project on raising productivity and quality of manufacturing mechanical engineering: To raise the productivity and quality of automobile industry; shipbuilding industry; machines and equipment for processing agro-forest- aqua products, equipment in complete sets and electro-mechanic equipment; and production of core mechanical products;

g/ Project on raising productivity and quality of energy industry: electricity, coal, oil and gas, new energies and renewable energies;

h/ Project on raising productivity and quality of the production of electronic, telecommunications and information technology equipment, software industry and digital content industry.

5. Building of the capacity for quality management of core industrial products and goods

a/ Building and consolidation of the system of product quality management organizations

- To evaluate the state management apparatus in charge of quality of industrial products and goods from the central to local level for consolidating the organization system to be more appropriate and effective;

- To inspect and evaluate the capacity of officials specialized in quality management of industrial products and goods from the central to local level and enterprises of all economic sectors, to serve as a basis for training;

- To elaborate plans on training of quality management officials and employees to meet requirements of quality management and analysis activities;

- To periodically organize courses for training in management skills, advanced techniques, solutions to raise quality, standards and technical regulations for officials specialized in quality management and industrial extension, and those performing testing and analyzing activities.

b/ Investment in upgrading physical foundations and equipment to serve the quality management work

- To inspect and evaluate testing laboratories of each field and of the whole industry. To build new or upgrade and improve 1 or 2 laboratories for testing product and goods quality for key industrial fields and a number of specialized laboratories, turning them into national testing and calibration laboratories up to TCVN/ISO 17025;

- Enterprises shall equip more necessary analysis equipment for their testing laboratories so that they can inspect and analyze common quality criteria.

c/ Building of the quality certification system in the whole industry

To build and develop a network of regionally and internationally accredited quality certification and conformity assessment organizations up to international standards to meet needs for evaluation of products and goods of group 2 and core ones.

III. ORGANIZATION OF PROJECT IMPLEMENTATION

1. Annually, based on the project’s objectives, the Ministry of Industry and Trade shall sum up and elaborate state budget expenditure plan and estimates of the project, then send them to the Ministry of Finance and the Ministry of Planning and Investment. The estimated state budget expenditure for the project’s tasks shall be incorporated in annual state budget expenditure estimates of ministries and sectors, which shall assign these state budget expenditure plans and estimates to their units for implementation after approved by competent authorities.

2. Funds for the project implementation are allocated from the national program to raise productivity and quality of products and goods of Vietnamese enterprises through 2020, funds for non-business scientific activities, funds for industrial extension, funds of enterprises and production and business establishments and other lawful funding sources:

a/ State budget funds for knowledge propagation and dissemination, training of experts, trainers and core officials of enterprises in standards and quality; elaboration of plans; elaboration of TCVNs and QCVNs; research and organization of product and goods quality assessment; setting up and development of pilot models; and investment in developing the conformity assessment network to serve the state management of industry;

b/ Funds of enterprises for investment in applying scientific advances and technological innovations to raise productivity and quality of products and goods; investment in improving the testing capacity to directly serve their production and business activities; elaboration of in-house standards; professional training and retraining in TCVNs, QCVNs, quality management and conformity assessment for managers and employees of enterprises; and application of management systems and productivity and quality improvement tools;

c/ Other lawful funding sources: Financial supports of organizations and individuals for the training of experts, elaboration and application of standards and technical regulations and expansion of information and communications.

3. To intensify international cooperation for exchanging experiences in elaboration of standards and technical regulations, quality management and scientific and technological application; raising the capacity of laboratories for testing quality of products and goods up to international level to serve conformity assessment activities; and stepping up the negotiation and conclusion of agreements on mutual recognition of conformity assessment results with other countries.

IV. PROJECT IMPLEMENTATION RESPONSIBILITIES

1. The Ministry of Industry and Trade shall:

a/ Assume the prime responsibility for, and coordinate with related ministries and sectors and provincial-level People’s Committees in, carrying out and managing all activities of the project;

b/ Sum up the needs and proposals of sectors, key industries and related professional associations to elaborate specific plans on implementing the project for each year and for the 2012-2020 period;

c/ Annually inspect, sum up and report to the Prime Minister; and make preliminary and general review and evaluation of results and efficiency of the project implementation.

2. The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Science and Technology shall allocate state budget funds for performance of the tasks of the project under the law on the state budget.

3. Ministries, sectors, provincial-level People’s Committees and professional associations shall coordinate with the Ministry of Industry and Trade in implementing the project.

Article 2.This Decision takes effect on the date of its signing.

Article 3.Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decision.-