DIRECTIVE

REGARDING A NUMBER OF SOLUTIONS TO THE DEVELOPMENT OF WOOD-PROCESSING INDUSTRY AND WOOD PRODUCT EXPORT

Over the recent years, despite numerous difficulties but thanks to the implementation of a number of policies to encourage wood product manufacture and export, the direction and administration of various branches and localities as well as the efforts of enterprises in production and the search for export markets, our country's wood-processing industry and wood product export have seen new steps of development, having become a branch earning considerable export turnover (over USD 560 million in 2003) with high growth rates (around 30% in 2003) and having contributed to creation of jobs and incomes for laborers and the consumption of forestry products.

However, the wood product- processing and manufacturing industry of our country still sees many limitations: the domestic supply of raw materials remains unstable; the production and processing scale remains small and scattered; machinery, equipment and technology are obsolete; workers' professional skills are still low; products, models and patterns are not yet diversified; the marketing, trade promotion, management, responsibility division and cooperation in this domain remain weak; many traditional craft villages specialized in wood product manufacture and export are slowly restored and developed.

In order to overcome the above-mentioned problems, better tap potentials and advantages, to further boost the development of wood processing industry, striving to raise the wood product export turnover to USD 750 million in 2004 and USD 2 billion in 2010, the Prime Minister instructs the ministries, branches, provincial/municipal People's Committees to well perform the following tasks:

1. To organize domestic production and import, meeting in time the demands for raw materials for the wood-processing industry, producing wood articles for domestic consumption and export.

a) The Ministry of Agriculture and Rural Development and the provincial/municipal People's Committees where exists forestation land shall:

- Expeditiously review, finalize and approve the plannings on planting of raw material forests, ensuring the stable supply of raw materials for wood processing industry; mark off appropriate areas afforested with big timber trees, rare precious indigenous trees, thus creating stable sources of timber in order to maintain and develop the production of fine-art handicraft wood articles.

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- On the basis of plannings on raw-material forest planting, review and supplement policies in order to further encourage various economic sectors to invest in afforestation, benefiting from forests which supply raw materials for wood processing industry, particularly the policies on land, investment, credit, support in saplings, construction of infrastructure for raw materials zones, on forestry promotion and product sale.

- Expeditiously make preliminary review of the experimental investment and production of artificial boards at home, fully evaluate the investment efficiency and outlets in order to work out orientations for development in the coming years; on that basis, work out solutions to meet the demands for artificial boards for domestic consumption and raw materials for production of wood articles for export.

b) The Trade Ministry shall assume the prime responsibility for, and coordinate with the concerned ministries and/or branches, Vietnam Association of Timber and Forest Products in, guiding and supporting enterprises in seeking and selecting the import markets based on the demands for import of raw-material wood; review, amend and supplement mechanisms and policies and organize and facilitate the import in order to adequately supply raw-material timber, particularly natural forest timber, for the production of wood articles. To strictly prohibit activities of speculation, monopoly, harassment, difficulty-causing in the import of raw-material timber.

2. To review, amend and supplement policies in order to assist and create favorable conditions for enterprises of all economic sectors to participate in investing in wood article processing and production, meeting domestic consumption and export demands.

a) The provincial/municipal People's Committees plan, support the construction of infrastructure of concentrated production areas, settling difficulties in production grounds for enterprises, traditional craft villages to operate in the field of processing and manufacturing wood products for export.

b) The Industry Ministry shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development, Vietnam Association of Timber and Forest Products in, evaluating the present situation, orientation and gathering demands for renewal of wood product-processing and manufacturing equipment and technology; on that basis work out appropriate support policies for, and direct the research into, domestic manufacture and import thereof; enhance the cooperation between the mechanical engineering industry and the wood-processing industry.

c) The Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development, Vietnam Association of Timber and Forest Products, and the provincial/municipal People's Committees in, identifying the demands for training of technical workers and high-skill laborers; review and formulate policies to renovate and upgrade the existing training establishments in association with the addition of tasks of training in wood processing; consider and open more new training establishments in a number of localities where exist burning demands; conduct recruitment and training to satisfy demands of enterprises and craft villages.

d) The Ministry of Planning and Investment, the Finance Ministry and Vietnam State Bank shall, according to their respective functions and tasks, direct the implementation of credit policies to support export and reward those who top the wood product export turnovers according to general regulations; propose or promulgate according to competence and direct the implementation of, policies on investment, credit incentives for raw-material production, wood product processing and manufacture.

3. To continue reviewing, amending and supplementing in time policies, administrative procedures to remove problems and difficulties for wood product manufacture; provide necessary guidance and support for enterprises in seeking outlets and stepping up export of wood products.

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a) To supply information on wood product import demands, the current wood product import regulations of some major countries; to supplement policies, remove obstacles and difficulties in time in order to continue stepping up the wood product export, particularly to markets where exist great demands therefor such as North America, EU, Japan, China and ASEAN.

b) On the basis of annual national trade promotion programs, to organize international wood article fairs in big cities in the country, at the same time to select, organize and guide Vietnamese enterprises to participate in international wood articles fairs organized in various countries and territories in the world in order to introduce and advertise for Vietnamese wood products, to actively seek customers and sign export contracts; to approach new science and technology.

c) To reach agreement with Vietnam Association of Timber and Forest Products on establishing a Website on wood products as well as wood product-manufacturing and/or exporting enterprises of Vietnam.

d) To create favorable conditions for Vietnam Association of Timber and Forest Products to participate in exchanges and strengthen relations with Associations of Timber and Forest Products within ASEAN and in the world.

e) To proceed with negotiations at the governmental level between Vietnam and countries in the region and the world on import of raw material timber by mode of barter, creating legal basis for wood-processing enterprises to materialize.

4. The Ministers of Agriculture and Rural Development; Trade; Planning and Investment; Home Affairs; Finance; Natural Resources and Environment; Labor, War Invalids and Social Affairs; the Vietnam State Bank Governor and the provincial/municipal People's Committee presidents shall have to implement this Directive.

The Government's Office has the responsibility to examine and urge the implementation of this Directive and report on the implementation results to the Prime Minister.

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