DECISION

APPROVING THE PLANNING ON DEVELOPMENT OF RUBBER TREE UP TO 2015, WITH A VISION TOWARD 2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
At the proposal of the Minister of Agriculture and Rural Development,

DECIDES:

Article 1. To approve the planning on development of rubber tree up to 2015. with a vision toward 2020. with the following principal contents:

I. DEVELOPMENT VIEWPOINTS

1. The planning of development of rubber tree must be based on market demands. To effectively tap and bring into play advantages in land and natural conditions in some regions for sustainable development of rubber tree. To rapidly apply scientific and technological advances in order to raise the yield, quality, efficiency and market competitiveness of rubber products.

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3. To develop rubber tree on the basis of linking material zones with processing establishments and the market to form large-scale consolidated commodity production zones.

4. To bring into play all resources of all economic sectors and supports of the State to ensure efficient and sustainable rubber production and eco-environmental protection.

II. DEVELOPMENT TARGETS

1. By 2010: To continue planting new rubber trees on 70,000 hectares so as to increase the total area under rubber tree in the whole country to 650,000 hectares, thereby achieving an annual latex output of 800,000 tons and an annual export turnover of USD 1.6 billion. To increase the processing capacity to around 220,000 tons.

2. By 2015: To continue planting new rubber trees on 150,000 hectares so as to increase the total area under rubber tree in the whole country to 800,000 hectares, thereby achieving an annual latex output of 1.1 million tons and an annual export turnover of USD 1.8 billion. To increase the processing capacity in 5 years to around 360,000 tons.

3. By 2020: To stabilize the total area under rubber tree at 800,000 hectares, an annual latex output of 1.2 million tons and an annual export turnover of USD 2 billion.

III. PLANNING ORIENTATIONS

1. Regarding land areas reserved for planting rubber tree

To achieve the target of 800,000 hectares of rubber tree, it is necessary to plant new rubber trees on 150,000 hectares of land areas under inefficient agricultural production, left unused or under poor natural forests suitable to rubber tree growth requirements.

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a/ The Southeastern region: To continue planting new rubber trees on 25.000 hectares of land areas under inefficient agricultural production or under poor natural forests suitable to rubber tree, in order to stabilize the total area under rubber tree in this region at 390,000 hectares:

b/ The Central Highlands: To continue planting new rubber trees on around 95,000-100,000 hectares of land areas under inefficient agricultural production, left unused or under poor natural forests suitable to rubber tree, in order to stabilize the total area under rubber tree in this region at 280,000 hectares:

c/ The coastal southern Central Vietnam: To continue planting new rubber trees on 10,000-15.000 hectares of land areas under inefficient agricultural production or under poor natural forests suitable to rubber tree, in order to stabilize the total area under rubber tree in this region at 40,000 hectares:

d/ The northern Central Vietnam: To continue planting new rubber trees on around 20,000 hectares mostly of agricultural land, in order to stabilize the total area under rubber tree in this region at 80,000 hectares;

dd/ The northeastern provinces: To develop rubber tree through different steps appropriate to different localities, avoiding unplanned planting movement. Based on available land areas and results of efficiency evaluation of existing rubber tree areas, localities shall decide to expand rubber tree areas in places where conditions permit, striving for the target that by 2020 these provinces will have a total rubber tree area of around 50,000 hectares.

3. Capital and capital sources

a/ Total investment capital: around VND 30 trillion;

b/ Capital sources:

- State budget investment in infrastructure (power facilities, roads, health stations and schools in project areas) and job training;

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- Development investment credit under current regulations;

- Commercial credit.

IV. SOME MAJOR SOLUTIONS

1. Land

a/ Provincial-level People's Committees shall review and adjust their existing rubber tree development plannings and elaborate new ones in line with this planning, then submit them to competent authorities for approval; allocate or lease land and grant land use rights certificates for rubber tree growers under the land law.

b/ For forest areas and forestry land areas planned to be converted into those for rubber tree planting, provincial-level People's Committees shall direct the conversion under the law on forest protection and development and other relevant laws. Forest tenders and protectors will receive additional biomass values generated through capital investment in and labor for forest tending and protection from the date of land allocation and forest contracting by the State to the date of land recovery and handover for rubber tree planting, in the form of proceeds from sale of forest products.

c/ For agricultural production land areas currently used for cultivation by peasants: Peasant households in project areas are encouraged to lease land or contribute the land use rights value as capital to rubber tree planting enterprises and their members of working age may be employed by these enterprises;

d/ Based on plannings approved by competent authorities, investors shall select and formulate projects on rubber tree planting and investment in industrial processing establishments (preliminary and in-depth processing) under the investment law.

2. Science, technology and transfer of technical advances

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b/ To step up agricultural extension, transfer of technical advances, supply of information, skill training of laborers engaged in rubber tree planting, tending, exploitation and processing.

3. Product sale

a/ Enterprises shall well organize the signing of contracts for rubber product sale with producers, ensuring that all products will be sold at mutually beneficial prices;

b/ To step up trade promotion activities, further expand the market for rubber products, develop brands and elaborate product and goods quality standards and regulations. To form a forward market for Vietnamese rubber and eventually build a commodity wholesale market in conformity with international practice. To promote cooperation with foreign countries in rubber tree planting and rubber processing and sale.

4. Investment and credit

a/ To mobilize capital from investors, idle capital from people and the land use rights value for investment in rubber tree development;

b/ To allocate capital from the state budget for investment in socio-economic infrastructure in areas where rubber tree planting projects are implemented;

c/ Rubber tree growers in difficult localities are entitled to loans under the Government's Decree No. 151/006/ND-CP of December 20,2006. and Decree No. 106/2006/ND-CP of September 19,2006. amending and supplementing a number of articles of Decree No. I51/2006/ND-CP.

5. Production organization

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b/ The State encourages enterprises and individuals to invest in rubber tree planting and rubber product processing and sale under the approved planning;

c/ To encourage and support the formation of cooperative groups or cooperatives in the domains of rubber tree planting and rubber product processing and sale to provide rubber tree growers with technical assistance, supplies and product sale services;

d/ To enhance the operating capacity of the Vietnam Rubber Association to support, create favorable conditions for and protect benefits of its members and producers.

V. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for. and coordinate with concerned ministries and branches and provincial People's Committees in. guiding, directing and inspecting the implementation of the planning; updating information on production, market, scientific and technological advances for appropriate adjustment of the planning.

2. Other ministries and central branches shall coordinate with the Ministry of Agriculture and Rural Development and localities in performing state management functions and tasks; guiding localities in lawfully and efficiently using land areas with converted use purposes; and assuring prerequisites, especially investment capital, for development under the planning.

3. Provincial People's Committees shall review local rubber tree development plannings or elaborate new ones, determining and converting use purposes of land areas currently used for agricultural production or under poor productive natural forests for rubber tree planting, and publicizing these plannings and conversion policies for enterprises, organizations and individuals at home and abroad to select localities for investment. To select enterprises, organizations and individuals with sufficient investment capacity for carrying out procedures for formulation of investment projects under regulations, so that these entities can formulate detailed projects as soon as possible.

4. The Vietnam Rubber Industry Group and state rubber corporations shall work out their own rubber tree development plans in line with the approved planning, and efficiently use natural resources, land and other resources.

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

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FOR THE PRIME MINISTER DEPUTY
PRIME MINISTER




Nguyen Sinh Hung