| THE MINISTRY OF INDUSTRY ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No.18/2007/QD-BCN | Hanoi, May 08, 2007 |
DECISION
APPROVING ADJUSTMENTS AND SUPPLEMENTS TO THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM’S BEER, LIQUOR AND BEVERAGE INDUSTRY UP TO 2010
THE MINISTER OF INDUSTRY
Pursuant to the Government’s Decree No. 55/2003/ND-CP dated May 28, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Industry;
Pursuant to the Government’s Decree No. 92/2006/ND-CP dated September 7, 2006, on the elaboration, approval and management of socio-economic development master plans;
After reaching agreement with the Ministries of Planning and Investment, Finance, Science and Technology; Construction; and Trade; and the State Bank;
At the proposal of the director of the Department for Consumption and Food Industries,
DECIDES:
Article 1. To approve adjustments and supplements to the Master Plan on the development of Vietnam's beer, liquor and beverage industry up to 2010 with the following principal contents:
1. Development objectives
a) Overall objectives
- To build Vietnam's beer, liquor and beverage industry into a strong economic sector. To encourage the use of domestic raw materials, develop the production of high-quality and prestigious products bearing strong trademarks in the market, ensure food hygiene and safety, diversify types of products, and renew product packings and designs; to strive to reduce prices and raise competitiveness of products so as to meet the domestic demand and step up export, increase budget revenues and steadily integrate into regional and world economies.
- To encourage the formation of strong enterprises and economic groups based on joint venture or cooperation among beer, liquor and beverage enterprises of all economic sectors.
b) Specific objectives
- By 2005, to produce 1,530 million liters of beer, 83 million liters of liquor and 911 million liters of beverage;
- By 2010, to produce 3,500 million liters of beer, 145 million liters of liquor and 1,650 million liters of beverage.
2. Product development planning and planning arrangement
a) Product planning
- Beer production: To invest in high-capacity factories with modern equipment, for efficient production and business, meeting the environmental requirements under state regulations. Beer products must meet food hygiene and safety and quality requirements, and have prices acceptable to consumers;
- Liquor production: To invest in liquor factories with modem technologies and improve the quality of liquor specialties and traditional liquor products to meet the domestic demand and for export. To encourage enterprises to enter into cooperation or joint venture with foreign investors to produce high-quality liquor from domestic raw materials. To take appropriate measures to reduce the manual brewing of wine which is harmful to consumers' health;
- Beverage production: To encourage various economic sectors to invest in the production of beverages from domestic raw materials, with priority given to the production of fruit juices.
b) Region- and territory-based planning
To arrange beer, liquor and beverage factories nationwide in 6 regions (see the enclosed Appendix).
To ensure balanced territory-based development in line with the socio-economic development strategy in each period as well as local economic development strategies and plannings.
3. Capital needs of investment projects
The total investment capital for the beer, liquor and beverage industry in the 2005-2010 period is VND 34,690 billion (see the enclosed Appendix), of which:
- Capital for beer production: VND 31,809 billion;
- Capital for liquor production: VND 807billion;
- Capital for beverage production: VND 2,074 billion.
The State encourages all domestic and foreign economic sectors to mobilize capital for investment in the construction of beer, liquor and beverage factories so as to achieve the Plan's objectives.
4. Solutions and policies for the implementation of the Plan
a) Technological solutions
- For investment projects to build new factories:
Importance will be attached to investment in large-capacity factories with modern equipment and advanced technologies;
- For expansion investment or in-depth investment projects: To thoroughly modernize technologies and replace existing backward technologies and equipment with modern and advanced ones;
- To encourage enterprises, through joint venture or cooperation, to transfer technologies for the domestic manufacture of equipment (beer, liquor and beverage production equipment) meeting the requirements for modern techniques. To encourage the use of domestically manufactured equipment, which are of quality equivalent to that of imported equipment for investment projects;
- To build raw-material (barley, fruit, etc.) supply areas and, through cooperation with farmers and localities, to build farms of fruit trees and other raw-material trees. To encourage farmers to apply scientific advances to varieties selection, planting and preliminary processing in order to raise the yield and quality of barley and fruits for use as production materials.
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