b) Regarding area, productivity and output for growing tobacco trees:

- By 2015: the area for growing tobacco trees of whole country will attain 28,940 ha, average productivity will attain 2.25 ton/ha, output will attain 65,300 ton. Over 50% domestic raw materials will be used to replace for import raw materials so as to produce tobacco with high-grade label, meeting partly the use demand of cigarette plants and export.

- By 2020: the area for growing tobacco trees of whole country will attain 31,960 ha, average productivity will attain 2.36 ton/ha, output will attain 75,500 ton. To stablize area of raw material regions, the agricultural growing technical qualification will attain the advanced level in the world, to produce a large part of kinds of raw materials for the medium-and high-grade tobacco.

c) Regarding processing tobacco raw materials

By 2015, all enterprises producing cigarettes must use 100% of the processed tobacco raw materials.

3. Development orientations

- Intensive investment, renewal of equipment and technology in direction of modernizing equipment chain, techology and automation with the aim to improve technology in tobacco production in direction of decreasing Tar, nicotine, thrift of raw materials but not increasing the production capability.

- Developing the domestic tobacco products so as to contribute in enhancing effective prevention and fighting of tobacco imported illegally and tobacco with bad quality. Structuring products in direction of increasing the medium- and high-grade tobacco’ proportion and gradually decreasing the common tobacco’s proportion, pushing up production of export tobacco.

- To implement international cooperation so as to use capital and technology in cigarette production so as to improve product quality, fight against fake tobacco and smuggled tobacco.

...

...

...

- Investing in regions growing tobacco so as to promote potentials of land, labor, meeting partly demand of tobacco and tobacco raw material production for export. Paying attention to development of growing tobacco in mountainous, depth-lying and remote areas, contributing in hunger elimination, poverty reduction.

- Pushing up the science and technology research and application, improving science and technology qualification of tobacco industry equal to the qualification of countries in region.

- Further arranging, reorganizing the tobacco industry according to 4 focal units included Vietnam National Tobacco Corporation, Saigon Industry Corporation, Khanh Viet Corporation, Dong Nai Food Industrial Corporation; moving the plants causing polution out city.

4. Planning production

4.1. Planning tobacco production

a) Regarding organization and arrangement of enterprises producing tobacco

Planning tobacco production in direction of organizing, re-arranging enterprises producing tobacco products into big focal units, merging enterprises with small scale and ineffective production and business. By 2017, all enterprises producing cigarettes must attain the output of cigarettes produced and consumed is over 100 million packages / year, in case of failing to attain the above output, they will be forced for merger or dissolution.

b) Regarding output

Producing cigarette products for export, producing cigarettes for domestic consumption on the basis of effective control and prevention against smuggled tobacco. By 2015: Whole the tobacco industry will produce 5,441 million tobacco packages, of which tobacco produced for domestic consumption will be 4,200 million packages, export tobacco will be 1,241 million packages.

...

...

...

c) Regarding structure of tobacco products consumed domestically

To concentrate on production of medium-and high-grade tobacco kinds, gradually decreasing proportion of common tobacco.  To diversify products such as producing tobacco with light taste, wrapping and designing in diversity and conformity with preferences of consumers, reducing weight of fibers in cigarette by advanced technical methods with the aim to meet demand and contribute in protecting healthy of consumers.   Structure of tobacco products as follows:

No.

Structure of products

Rate (%)

2015

2020

1

High-grade tobacco

...

...

...

40

2

Medium-grade tobacco

12

15

3

Common tobacco

53

45

...

...

...

Total

100

100

d) Regarding roadmap of Tar and nicotine reduction

To implement Law on tobacco harm prevention, to research measures to gradually decrease content of Tar and nicotine in cigarettes, from the present time to 2020 as follows:

Index

Year 2015

Year 2020

Tar (mg/cigarette)

...

...

...

≤ 10

Nicotine (mg/cigarette)

≤ 1.0

≤ 1.0

4.2. Planning the development of regions growing trees for tobacco raw materials and plants processing tobacco raw materials

a) Planning the development of regions for tobacco raw materials (detailed in Annexes I and II enclosed with this Decision)

- To concentrate on development of tobacco raw materials in regions with potentials of land, socio-economic and pedological conditions suitable with tobacco trees so as to develop regions of tobacco raw materials with quality, meeting requirements on processing and preparation of the cigarettes and export to become the intensive-cultivation regions in producing tobacco raw materials. Gradually decreasing regions growing raw materials that have low productivity and quality and dispersal.

- Area, productivity, output of domestic tobacco raw materials by 2020 as follows:

...

...

...

Year 2020

1. Yellow tobacco

- Area (ha)

28,300

31,300

- Productivity (ton/ha)

2.25

...

...

...

- Output (tan)

63,700

73,800

2. Brown tobacco

- Area (ha)

260

280

...

...

...

2.50

2.68

- Output (tan)

650

750

3. Burley tobacco

- Area (ha)

...

...

...

380

- Productivity (ton/ha)

2.50

2.50

- Output (tan)

950

950

4. Total

...

...

...

- Area (ha)

28,940

31,960

- Average productivity (ton/ha)

2.25

2.36

- Output (tan)

65,300

75,500

...

...

...

From now to 2020, not invest more plants processing tobacco raw materials (for separating fibers), except for case of investment in processing tobacco raw materials for export.

5. System of solutions and policies in implementing master plans

a) Management solutions

- To further complete the policy mechanism and manage the tobacco production and business operation so as to develop tobacco industry in accordance with orientation, control consumption about quantity, quality; avoid loss of the State budget.

- To strengthen inspection, supervision of use of trademarks, labels, design of products, combat against contraband goods, counterfeits, goods with bad quality with the aim to ensure benefits of consumers and enterprises.

- To regulate the output allowed producing but not be used all by enterprises in excess for enterprises which used all their current output so as to avoid wastefulness of power sources of State and society.

- To strengthen investment in domestic and international market investigation, research and forecast so as to have sufficient and exact market data supporting for enterprises in sector to capture market as well as opportunities for exporting products.

- To facilitate for organizations, individuals to invest in development of regions growing tobacco raw materials with the aim to replace import and meet the export demand.

b) Solutions about market and products

...

...

...

- To conduct selective investment to form and develop key products in each segment, each market. Gradually remove small products with the aim to concentrate power source and market on key products.

- To develop potential labels of export cigarettes, expand the export market to new markets through cooperation or processing for export of tobacco labels for foreign partners.

- To consolidate and strengthen the competition of medium-and high-grade products in market, units should have key medium-and high-grade products, produce cigarette products with high quality, reduce harmfulness under the roadmap so as to meet domestic demand and export.

c) Solutions about investment

- To invest essentially in fields that replace the old and obsolete machines, equipment by machines, technological equipment with high technological and automatic level, minimize environment pollution; to combine with renewal of technology, equipment, application of solutions on saving energy and raw materials.

- To invest in science research and foreign technology application in several fields such as raw materials, cigarettes, quality control of products, ancillary materials; gradually invest in production of fiber tobacco, cigarettes abroad for markets exporting products with the aim to bring higher added value.

- To re-arrange the facilities of tobacco production and business so as to promote the general power, increase competition of tobacco with international label produced in Vietnam compared to foreign tobacco imported illegally.

d) Solutions about science research and technology transfer

- To push up research, application and improvement of technology imported from foreign countries on the basis of expanding international cooperation, so as to serve timely and effectively for tobacco production.   To improve the science and technology level in tobacco production equal to level of countries in region.

...

...

...

- To improve activities of international cooperation, information exchange and receive technology transfers in production of tobacco and tobacco raw materials and ancillary materials.

dd) Solutions about development of raw material production

- Centrally invest in regions of raw materials with quality, able to replace a part of import raw materials and serve for export. To focus on concentrated investment in regions growing yellow tobacco with high quality; to research production or coorperat in production of leaf tobacco raw materials with high quality in serve for domestic production and export.

- To select productivity and quality potential varieties suitable with land and pedological conditions of each region; to improve and implement strictly the technical processes such as sowing, planting, harvesting, drying and grading so as to create products with high quality, and so on

- To strengthen venture or association for investment in growing tobacco in serve for domestic production and export; to strengthen relation and cooperation with foreign partners so as to calling investment in production of tobacco raw materials in Vietnam.

e) Solutions about human source

- To further renew policy on managing human source from the recruitment, arrangement of jobs, wage policies, assessment on effectiveness of jobs; strengthen the vocational training for laborers, especially laborers in tobacco raw material field.

- To elaborate and carry out program on training human source; to further improve skills in management and executive of managers in  enterprises in the modern and professional management direction.

g) Solutions about environmental protection

...

...

...

- To use technology processing tobacco smell through system of purging, cooling and biological filtering, cleaner production technology to prevent polution and improve environment.

Article 2. Organization for implementation

1. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with other Ministries, relevant sectors, localities in announcing, propagating, guiding, implementing the master plan; examining, supervising implementation of master plans; proposing to competent authorities for adjusting mechanisms, policies to be suitable with actual status during implementing the master plan.

2. Other Ministries and sectors of: Planning and Investment, Finance, Science and Technology, Agriculture and Rural Development, Natural resources and Environment, Public Health and the State bank of Vietnam shall, within their assigned competents and functions, coordinate with the Ministry of Industry and Trade in organizing implementation of this master plan.

3. People’s Committees of central-affiliated cities and provinces shall coordinate with the Ministry of Industry and Trade and Ministries, sectors in concretizing the master plan in provinces, cities in conformity with the local master plan on socio-economic development. Coordinate with the Ministry of Industry and Trade in examining and supervising implementation of the master plan.

4. Vietnam Tobacco Association shall coordinate with the Ministry of Industry and Trade, localities in propagating, popularizing the master plan; guiding enterprises in Association to comply with the master plan and other provisions of law.

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

Article 4. Ministers, Heads of ministerial-level agencies, Government-attached agencies, presidents of municipal/provincial People's Committee shall implement this Decision. 

...

...

...

THE MINISTER OF INDUSTRY
AND TRADE




Vu Huy Hoang

ANNEX 1

PLANNING ON DEVELOPMENT OF REGIONS GROWING RAW MATERIAL TREES for DRIED-YELLOW TOBACCO BY 2020
(Promulgated together with the Decision No. 1988/QD-BCT dated April 01, 2013 of the Ministry of Industry and Trade)

No.

Regions of raw materials

Year 2015

Year 2020

Area (ha)

...

...

...

Output (tan)

Area (ha)

Productivity (tan/ha)

Output (tan)

I

 Northern mountainous and central region

14,550

2.0

29,450

...

...

...

2.2

37,470

1

Cao Bang

4,000

2.0

8,000

5,000

2.2

...

...

...

2

Lang Son

6,600

2.0

13,200

7,000

2.2

15,400

3

...

...

...

1,500

2.0

3,000

2,000

2.2

4,400

4

Thai Nguyen

700

...

...

...

1,610

700

2.4

1,640

5

Lao Cai

950

1.9

1,800

...

...

...

2.1

3,150

6

Bac Giang

800

2.3

1,840

800

2.4

...

...

...

II

South Central Coastal region

750

2.0

1,530

800

2.2

1,730

1

...

...

...

450

2.0

900

500

2.1

1,070

2

Ninh Thuan

300

...

...

...

630

300

2.2

660

III

High land

6,000

2.4

14,520

...

...

...

2.5

16,400

1

Gia Lai

4,500

2.4

10,800

5,000

2.5

...

...

...

2

Dak Lak

1,500

2.5

3,720

1,500

2.6

3,900

IV

...

...

...

7,000

2.6

18,200

7,000

2.6

18,200

1

Tay Ninh

7,000

...

...

...

18,200

7,000

2.6

18,200

Total

28,300

2.25

63,700

31,300

...

...

...

73,800

ANNEX 2

PLANNING ON DEVELOPMENT OF REGIONS GROWING RAW MATERIAL TREES FOR BURLEY AND BROWN TOBACCO BY 2020
(Promulgated together with the Decision No. 1988/QD-BCT dated April 01, 2013 of the Ministry of Industry and Trade)

No.

Regions of raw materials

2015

2020

Area (ha)

...

...

...

Output (tan)

Area (ha)

Productivity (tan/ha)

Output (tan)

A

Raw materials for Burley tobacco

380

2.5

950

...

...

...

2.5

950

I

South Central Coastal region

250

2.5

625

250

2.5

...

...

...

1

Quang Nam

250

2.5

625

250

2.5

625

II

...

...

...

130

2.5

325

130

2.5

325

1

Dong Nai

130

...

...

...

325

130

2.5

325

B

Raw materials for brown tobacco

260

2.50

650

...

...

...

2.68

750

I

South Central Coastal region

160

2.7

430

180

2.8

...

...

...

1

Ninh Thuan

160

2.7

430

180

2.8

510

II

...

...

...

100

2.2

220

100

2.4

240

1

Dong Nai

100

...

...

...

220

100

2.4

240

Total (A+B)

640

1,600

660

...

...

...

1,700

ANNEX 3

PLANNING ON PROCESSING RAW MATERIALS TILL 2020
(Promulgated together with the Decision No. 1988/QD-BCT dated April 01, 2013 of the Ministry of Industry and Trade)

No.

Name of enterprises processing raw materials

Capacity

(ton product/year)

1

...

...

...

24,000

2

Ngan Son joint-stock company

24,000

3

27/7 Company

7,000

4

Da Nang Tobacco Company

...

...

...

5

Cao Bang tobacco raw material processing factory

12,000

6

Development Economic Joint Stock Company For Vietnamese Young Talents

24,000

7

Khanh Viet Corporation

23,000

...

...

...

Dong Viet Thanh joint-stock company

24,300

9

Ben Tre Tobacco One Member Limited Liability Company

2,500

10

Binh Duong Industrial Services And Tobacco One Member Limited Liability Company

9,600

11

...

...

...

5,400

12

Sai Gon Trading – Service – Production One Member Limited Liability Company of processing tobacco raw materials

6,750

Total whole industry

174,550