Decision No. 644/QD-TTg dated May 05, 2014 of the Prime Minister on approval of the Scheme for “supporting small- and medium-sized enterprises to develop industrial linkage clusters in the value chain of agriculture and rural areas”

DECISION

On approval of the Scheme for “supporting small- and medium-sized enterprises to develop industrial linkage clusters in the value chain of agriculture and rural areas”

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THE PRIME MINISTER

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

Pursuant to the Prime Minister’s Decision No. 1231/QD-TTg dated September 07, 2012, approving the Plan for developing medium- and small-sized enterprises in the 2011 - 2015 period;

In consideration of the proposal of the President of the Vietnam Chamber of Commerce and Industry,

DECIDES:

Article 1. To approve the Scheme for “supporting small- and medium-sized enterprises to develop industrial linkage clusters in the value chain of agriculture and rural areas” with the principal contents as follows:

I. SCHEME'S OBJECTIVES

To support and enhance competitiveness for Vietnamese rural small and medium-sized enterprises to participate in and develop the network linkages, production, business and services in the value chain of agricultural products. To be specific:

- The proportion of enterprises conducting business in some agricultural product chains will increase at least 5% in 2018 compared to 2013;

- To promote and support the building of at least 02 agricultural product brands, which are competitive in the market and export-oriented;

- To strengthen the connection in the potential agricultural product supply chain;

- To promote the role and improve the capacity of organizations supporting small and medium-sized enterprises, enterprise associations and commodity line associations in supporting enterprises in the agricultural product value chain.

II. IMPLEMENTATION CONTENT

Content of the Scheme for “supporting small- and medium-sized enterprises to develop industrial linkage clusters in the value chain of agriculture and rural areas” means the implementation of the Scheme's components, including:

- Formulation and development of a number of typical agricultural product value chains;

- Improvement of management capacity for enterprises in the agricultural product value chain;

- Linkage and development of enterprises in zones, clusters and nurseries in the value chain of agricultural products from production to distribution and consumption;

- Product development promotion; supporting branding for enterprises;

- Supporting market access for enterprises in the value chain;

- Improvement of the capacity to support small and medium-sized enterprises for organizations supporting enterprises and commodity line associations in the value chain.

(Details are provided in Appendix attached to this Decision).

Article 2. Implementation organization

1. The Vietnam Chamber of Commerce and Industry shall: Preside the implementation of activities to support small- and medium-sized enterprises in order to develop industrial linkage clusters in the value chain of agricultural and rural areas; based on tasks of the Scheme of formulating detailed estimates for annual operations sent to the Ministry of Finance to carry out appraisal and allocate budget, and implement in accordance with current regulations.

2.  The Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Ministry of Science and Technology and the Ministry of Finance shall coordinate with the Vietnam Chamber of Commerce and Industry in implementing this Scheme.

3. Ministers, heads of ministerial-level agencies and government-attached agencies, Chairpersons of People’s Committees of provinces and centrally-run cities, heads of related agencies shall, within their ambit and tasks, be responsible for guiding and inspecting the implementation of this Decision.

4. Institutions, universities, clubs, associations, small- and medium-sized enterprises and relevant agencies shall, within their ambit and tasks, be responsible for cooperating with the Vietnam Chamber of Commerce and Industry in implementing this Scheme.

5. Enterprises participating in the linkage chains of production, processing and consumption in rural areas that fully meet conditions of the programs and schemes under the Prime Minister’s Decision No. 62/2013/QD-TTg dated October 25, 2013, on policies encouraging the development of the cooperation and linkage between production and consumption of agricultural products and the construction of the large field; the Prime Minister's Decision No. 72/2010/QD-TTg dated November 15, 2010, providing the Regulation on formulation, management and implementation of the National Trade Promotion Program; National Brand Program, etc. shall be entitled to supporting policies as prescribed.

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

Article 4. Ministers, heads of ministerial-level agencies and government-attached agencies, Chairpersons of People’s Committees of provinces and centrally-run cities, and related agencies shall be responsible for the implementation of this Decision./.

APPENDIX

ACTIVITIES FOR THE IMPLEMENTATION OF THE SCHEME FOR “SUPPORTING SMALL- AND MEDIUM-SIZED ENTERPRISES TO DEVELOP INDUSTRIAL LINKAGE CLUSTERS IN THE VALUE CHAIN OF AGRICULTURE AND RURAL AREAS”

(Attached to the Prime Minister’s Decision No. 644/QD-TTg dated May 05, 2014)

I. IMPLEMENTATION CONTENT

The content of the Scheme for “supporting small- and medium-sized enterprises to develop industrial linkage clusters in the value chain of agriculture and rural areas” includes implementation components to accomplish objectives set in the Scheme:

1. Formulation and development of a number of typical agricultural product value chains.

Objectives: Analyzing the value chain, map the main stages, sectors and linkages in each stage or domain, point out the main actors and bottlenecks in the value chain to propose reasonable support and improvement measures.

Activities to be implemented:

a) Researching and analyzing the value chain of selected products in a number of regions and localities (in 3 regions: North, Central and South) to plan the impact on the value chain.

b) Organizing workshops on competitive advantage assessment, developing action plans to implement the impact on the value chain of concerned parties, policy consultation dialogue regarding investment in the value chain of agricultural products.

c) Providing training on the development of mechanisms and policies to facilitate the development of small- and medium-sized enterprises in local agricultural and industrial clusters.

d) Other related activities.

2. Improvement of management capacity for enterprises in the agricultural product value chain.

Objectives: Developing human resources, improving the management capacity and developing science and technology application for enterprises, equipping and improving professional qualifications for workers in the value chain of agricultural products to enhance their competitive advantages, quality, added value for products.

Activities to be implemented:

a) Training and capacity building for enterprises and business households in selected industries and value chains (topics on technology management skills, enterprise management skills; start-up and controlling quality in the production process, applying quality standards of domestic and international organizations, etc.).

b) Organizing training courses for value chain and supply chain consultants, improving capacity of management boards of industrial and agricultural zones and clusters regarding skills to provide business development services.

c) Developing documents and manuals guiding the construction of value chains and supply chains.

d) Business planning consulting to support small and medium-sized enterprises to join the linkage chain.

dd) Some other related activities.

3. Linkage and development of enterprises in zones, clusters and nurseries in the value chain of agricultural products from production to distribution and consumption.

Objectives: Strengthening the network of linkage and cooperation between enterprises, science and technology research and application centers, universities, state agencies, associations, and business support organizations.

Activities to be implemented:

a) Training and capacity building on planning raw material areas to build linkage models in industrial and agricultural zones, clusters, enterprise nurseries, food processing, consulting the value chain policy for the industry and regional economic development, public-private cooperation in the value chain to connect farmers with enterprises distributing and consuming products.

b) Visiting and learning experiences in developing industrial and industrial zones, clusters, and enterprise nurseries in areas with good experience in linking industrial and agricultural clusters.

c) Organizing conferences and workshops to connect commodity line associations, improving the capacity of enterprise associations in controlling quality standards and improving competitiveness.

d) Other activities.

4. Product development promotion; supporting branding for enterprises.

Objectives: Developing new products and building brands for enterprises in the agricultural product value chain in order to create new added values and increase income for farmers, enterprises and supply chain participants.

Activities to be implemented:

a) Workshops and recommendations of trade promotion and investment promotion policies in the industry value chain.

b) Organizing training courses on product design, development and marketing, branding for enterprises, and methods to improve product quality to meet standards, quality and market tastes for enterprises and business households.

c) Selecting a number of enterprises and enterprise associations in the value chain in the localities to advise and support branding.

d) Providing information and supporting partially to participate in fairs and exhibitions for enterprises in the value chain of agricultural products.

dd) Support activities for product packaging design, distribution, and transportation.

e) Other support activities.

5. Supporting market access for enterprises in the value chain.

Objectives: Developing local radio and television programs for small- and medium-sized enterprises to advise on enterprise administration, training and providing commercial information for citizens and enterprises to capture information on harvest seasons, plant and animal care, business environment, prices, events, service providers, etc.

Activities to be implemented:

a) Assisting localities in building daily news reports on local radio stations (in districts and communes).

b) Workshops aim to disseminate knowledge and share experiences in developing the value chain on innovation and application of technology in the value chain of agricultural products.

c) Supporting enterprises to participate in domestic trade fairs.

d) Other activities.

6. Improvement of the capacity to support small and medium-sized enterprises for organizations supporting enterprises and commodity line associations in the value chain.

Objectives: Enhancing the role and capacity of organizations supporting small- and medium-sized enterprises, enterprise associations, and commodity line associations in assisting enterprises in the value chain of agricultural products.

Activities to be implemented:

a) Training to improve organizational management capacity for associations, enhancing the ability to provide services in the value chain, supply chain for service providers.

b) Organizing workshops to improve the representation of associations, organizations supporting enterprises in the process of policy consultation, branding for enterprises.

c) Consulting establishment and capacity building to participate in the supply chain for local enterprise associations and clubs.

d) Consulting capacity building for organizations supporting enterprises and associations regarding granting the certificate of standards, quality of agricultural products, and brand control.

sd) Other support activities.

II. IMPLEMENTATION PERIOD: 2014 - 2018.

III. EXPECTED BUDGET

1. Using the budget of programs and schemes under the Prime Minister’s Decision No. 62/2013/QD-TTg dated October 25, 2013, on policies encouraging the development of the cooperation and linkage between production and consumption of agricultural products and the construction of the large field; the Prime Minister's Decision No. 72/2010/QD-TTg dated November 15, 2010, providing the Regulation on formulation, management and implementation of the National Trade Promotion Program; National Brand Program, etc. (if conditions specified in Section 5, Article 2 of this Decision are fully met).

2. VND 31.5 billion (thirty-one billion five hundred million dong) supported by the State budget and VND 13.5 billion (thirteen billion five hundred million dong) mobilized from enterprises and other sources by the Vietnam Chamber of Commerce and Industry shall be used for the activities of the Scheme for “supporting small- and medium-sized enterprises to develop industrial linkage clusters in the value chain of agriculture and rural areas” outside the programs specified in Section 5, Article 2 of this Decision.

3. The Vietnam Chamber of Commerce and Industry shall, based on an annual plan, develop estimates and report to the Ministry of Finance for appraisal and allocation of budget for this Scheme./.