b) The credit capital shall be invested according to the State’s plans for the construction of processing establishments and the upgrading and renewal of equipment therein.

c) The Vietnam State Bank shall direct the Vietnam Bank for Agriculture and Rural Development and credit institutions in implementing the Prime Minister’s Decision No. 67/1999/QD-TTg of March 30, 1999 on a number of banking credit policies in service of agricultural and rural development, thus ensuring that capital shall be adequately and promptly lent to cotton growers for the purchase of seeds, raw materials and materials in service of seed cotton production, as well as to organizations and individuals for the purchase of seed cotton.

d) The Ministry of Planning and Investment as well as the Ministry of Finance shall find capital sources from organizations and individuals at home and abroad for investment or joint ventures in developing the large-scale production of cotton varieties and seed cotton, thus ensuring the quality requirements of the textile and apparel industry.

2. On science and technology

a) To step up research, strain-selection and hybridization in order to quickly create cotton strains of high yield of over 30 tons/hectare with various crossbred groups, and non-polliniferzous strain line of Vietnam.

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To concentrate the investment on developing the material foundation, equipment and scientific and technical staff for Nha Ho cotton research center, making it a cotton research institute fully capable of conducting research and creating high-yield and high-quality cotton strains, thus meeting the requirements of the domestic textile industry.

b) The Ministry of Agriculture and Rural Development shall include in its agricultural promotion plan the annual agriculture promotion plans in order to intensify the agricultural promotion activities, the transfer of technical advances to cotton-growing households; review the models of good cotton growers and popularize their experiences to others; study and review the cotton development models in various ecological zones in the Central Highlands, southern Central Vietnam coast and eastern-southern Vietnam.

c) To study the inter-cropping models to include cotton in the stable crop structure in some areas, with highly-intensive cultivation in the regions where exit water conservancy works.

The Ministry of Agriculture and Rural Development and Vietnam Textile and Apparel Corporation shall direct the implementation of the Prime Minister’s Decision No. 19/QD-TTg of January 8, 1998 on the Project for the development of cotton and other plants for rotary and inter-cropping with cotton, with capital borrowed from the French Development Agency (AFD).

3. On the consumption

a) The Ministry of Industry and Vietnam Textile and Apparel Corporation shall direct textile and apparel establishments to give priority to consuming cotton fibre of domestic seed cotton processing establishments. The benefits of textile and apparel enterprises, seed cotton processing establishments and cotton growers should be harmonized.

b) On the basis of consulting with the Government Pricing Committee, Vietnam Textile and Apparel Corporation shall reach agreement with the People’s Committees of the cotton-growing provinces on declaring the minimum buying prices of seed cotton (the floor price) to cotton growers right at the beginning of the harvest, ensuring that the income earned from cotton is higher than that from other crops cultivated on one area unit. The presidents of the People’s Committees of the cotton-growing provinces shall directly and tightly control the consumption of seed cotton in their respective localities and prevent organizations and individuals from lowering cotton quality grades and prices, that causes loss to cotton growers.

4. On the cotton-plant insurance fund

The Ministry of Industry shall direct Vietnam Textile and Apparel Corporation to annually deduct 1-2% of the value of import raw material cotton fibre for setting up the cotton-plant insurance fund.

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Article 4.- This Decision takes effect 15 days after its singing.

Article 5.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.

FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Cong Tan