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THE
PRIME MINISTER OF GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.
28/2004/QD-TTg
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Hanoi,
March 4, 2004
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DECISION
ON REORGANIZING THE PRODUCTION OF, AND APPLYING A NUMBER OF
MEASURES TO REMOVE DIFFICULTIES FOR, SUGAR PLANTS AND COMPANIES
THE PRIME MINISTER
Pursuant to the December 25,
2001 Law on Organization of the Government;
Pursuant to the Resolution of the 3rd plenum of the IXth Party
Central Committee on continued reorganization, renovation, development and
raising of the business efficiency of State enterprises and the Resolution of
the 5th plenum of the IXth Party Central Committee on
agricultural and rural industrialization and modernization;
At the proposals of the Minister of Planning and Investment, the Minister of
Agriculture and Rural Development, the Minister of Finance, the Vietnam State
Bank Governor and the general director of the Development Assistance Fund,
DECIDES:
Article 1.-
To reorganize the production of, and apply a number of measures to remove
difficulties for, sugar plants and companies (hereinafter referred collectively
to as plants) with a view to creating conditions for the sugar industry to
continue its development and to achieve the target of one million tons of
sugar, thus contributing to economic restructuring, job creation and the
acceleration of the process of agricultural and rural industrialization and
modernization.
Article 2.-
On the basis of their current technological conditions, raw material-supplying
capability and financial situation, the sugar plants are classified into 3
following groups:
Group 1: Plants which operate
efficiently and need to be continually maintained in status quo and to enjoy
support policies for better development;
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Group 3: Plants which must be
relocated and stop their production.
The list of specific groups of
plants is mentioned in the Appendix to this Decision.
Article 3.-
Applying measures to remove difficulties for plants after their classification
1. For Group 1-plants:
a/ Forgiving debt amounts
payable into the State budget but not yet paid regarding added value tax
arising in 2001 thru 2003 on sugar products and products using byproducts,
discarded materials recovered from sugar production. The forgiven debt amounts
shall not exceed the plants' arising loss amounts accumulated up to December
31, 2003.
b/ For plants being joint-stock
companies which borrow credit capital for investment in the construction of
plants or plants being State enterprises which borrow capital of domestic
credit institutions to contribute legal capital to sugar- manufacturing
or - processing joint ventures, apart from the remission of the
above-mentioned budget remittance amounts, they shall be entitled to the
current interest rates of the State's development investment credits as from
January 1, 2004 for domestic loans (the Development Assistance Fund, commercial
banks) at different interest rates in each period with balance by December 31,
2003.
The State budget shall offset
the difference between the commercial interest rates and the interest rates
already adjusted for the lending credit institutions under each guidance of the
Finance Ministry.
2. For Group 2-plants: Upon the
equitization, sale, business contracting or lease of enterprises, apart from
the measures to settle the existing problems and provide financial support
according to the State's current regulations, they shall be entitled to the
application of the following support measures:
a/ Applying the current interest
rates of the State's development investment credit as from January 1, 2004 for
domestic loans (the Development Assistance Fund, commercial banks) at different
interest rates in each period with balance by December 31, 2003, including
loans as compulsory debt acknowledgement arising after January 1, 2004 of the
investment projects on construction of plants.
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To re-determine the
capital-borrowing terms for loans after the adjustment of interest rates and conversion
of foreign-currency loans into domestic-currency loans, the maximum duration
shall be 15 years as from January 1, 2004; where the borrowing terms in the
signed credit contracts exceed 15 years, the durations in the signed credit
contracts shall apply.
The State budget shall offset
the differences between the commercial interest rate and the interest rates
already adjusted for the lending credit institutions under the Finance
Ministry's guidance.
b/ Remitting loan interest debts
for domestic loans, underwriting and re-underwriting charge debts arising from
foreign loans (in foreign currencies, borrowings for import of equipment with
deferred payment) underwritten by domestic credit institutions for sugar plants
by December 31, 2003. The Finance Ministry shall guide the accounting and
handling of the above forgiven debts according to the financial regimes and the
enterprise income tax law for credit institutions.
c/ Remitting State budget
remittances payable but not yet paid regarding added value tax having arisen in
2001 thru 2003 for sugar products and products using byproducts, discarded
materials recovered from sugar production. The forgiven debt amounts shall not
exceed the plants' loss amounts accumulated up to December 31, 2003.
d/ Offsetting the differences
between exchange rates of foreign currencies borrowed for import of equipment
(including loans borrowed for import of equipment with deferred payment) having
arisen by December 31, 2003 but not yet handled. The Finance Ministry shall
base itself on the concrete data of each sugar plant for settlement.
e) Losses suffered by plants
upon their equitization or experimental sale, business contracting or lease
shall be handled according to the Government's regulations for State
enterprises subject to equitization and ownership conversion. For enterprises
which have already completed the ownership conversion and registered their
business under the Enterprise Law, the loss amounts having arisen from the time
of determining the value of enterprises to the time of conversion into
joint-stock companies, they shall be entitled to decrease adjustment of State
capital at the enterprises.
f/ For capital construction
volumes under projects on investment in sugar plants, which have been completed
and the settlement thereof have been already approved by competent authorities
strictly according to the current regulations of the State, but capital has not
yet been borrowed for payment to contractors, the Development Assistance Fund
shall provide loans at the current interest rates of the State's development
investment credit. The capital-lending terms shall comply with the provisions
at Point a, Clause 2, Article 3 of this Decision.
3. For Group 3-plants:
a/ The Ministry of Agriculture
and Rural Development shall decide on the relocation of the sugar plants of
Quang Binh and Quang Nam to new places suitable to the plannings on development
of sugar and sugarcane industry and the raw material zones. The plant
relocation must be based on investment projects on relocation of plants,
financial schemes, reorganization of enterprises, already approved by competent
authorities.
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b/ To stop the sugar production
and processing by Viet Tri sugar, liquor and beer company (now the beverage
company VIGER), applying the following financial and labor solutions:
- Liquidating, selling assets
according to the current financial regulations for State enterprises.
- For losses, receivable bad debts
having arisen before the time of stopping sugar production, the sources of
expenses for reform of enterprises shall be used to handle them. For amounts
borrowed from banks for investment in sugar production and processing by the
enterprises, which remain outstanding, the debt-handling plans shall comply
with the scheme on handling of outstanding debts of commercial banks, already
approved by the Prime Minister.
For amounts borrowed from the
Development Assistance Fund by enterprises, the Development Assistance Fund is
assigned to work out plans on handling of debts for investment in construction
of plants and their raw-materials zones and submit them to the Prime Minister
for consideration and decision.
- The mechanism to support
redundant laborers upon production stoppage shall comply with the provisions in
the Government's Decree No. 41/2002/ND-CP of April 11, 2002 on laborers.
c/ Other State enterprises
conducting sugar production and having to stop their production for
reorganization, change of production and business lines shall also be entitled
to financial handling and policies for redundant laborers of the enterprises
under the provisions at Point b of this Clause.
Article 4.-
On solutions to development of raw-materials zones
1. The People's Committees of
the provinces where exist sugar plants must concentrate efforts on directing
the development of sugarcane raw-materials zones along the direction of fully
planting the planned areas, quickly expanding the areas under high-yield
sugarcane of new strains and high sugar contents; stepping up intensive
farming, particularly with the application of method of irrigated farming to
raise productivity. From 2006, the average sugarcane productivity must reach
over 60 tons/ha, and sugar content reaches over 10 CCS for provinces in coastal
Central Vietnam, the Central Highlands and the North, and over 90 tons/ha and
over 8 CCS for southern provinces, ensuring adequate sugarcane raw materials
for plants to reach their designed capacity.
To direct plants to elaborate
investment projects on development of sugarcane strains, investment in
infrastructural development (irrigation, traffic) of raw-materials zones and
submit them to competent authorities for approval.
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3. The plants must work out
plans and solutions to development of sugarcane raw-materials zones and sign
contracts on sugarcane consumption with sugarcane growers under the Prime
Minister's Decision No. 80/2002/QD-TTg of June 24, 2002 on consumption of
agricultural products under contracts. The plants shall sign sugarcane
consumption contracts with sugarcane growers entitled to the preferential
policies prescribed in the Decision on encouragement of consumption of
agricultural products under contracts.
Article 5.-
Directing the implementation
1. The Ministry of Agriculture
and Rural Development shall assume the prime responsibility for, and coordinate
with the concerned ministries and provincial People's Committees in, revising
and re-assessing the general planning on sugarcane and sugar programs; for the
immediate future maintain the production level of one million tons of sugar;
the expansion and raising of the capacity of the plants must be considered on
the case-by-case basis.
- Guiding localities in
solutions to support peasants in crop restructuring, employment in
raw-materials zones where the plants must stop their production or be
relocated.
- Coordinating with the
concerned ministries and branches as well as Vietnam Sugarcane and Sugar
Association in promulgating regulations on coordination among plants nationwide
in the production and consumption of raw materials sugarcane and sugar,
overcoming the situation of competing in purchase and sale, devalorizing the
market prices, thus causing damage to plants and sugarcane growers.
2. The Finance Ministry shall
assume the prime responsibility for, and coordinate with the Ministry of
Agriculture and Rural Development, the Ministry of Planning and Investment,
Vietnam State Bank and provincial People's Committees in, guiding the handling
of financial difficulties and relevant contents for sugar plants under this
Decision.
3. The People's Committees of
the provinces where exist sugar plants and the Ministry of Agriculture and
Rural Development shall direct and guide sugar plants in working out
reorganization schemes and approve schemes on reorgani-zation and ownership
conversion of sugar plants in accordance with the contents of this Decision,
which must be completed before June 30, 2004.
4. The Ministry of Planning and
Investment shall have to examine and urge the implementation and assume the
prime responsibility for, and coordinate with the concerned ministries and
branches as well as People's Committees of the provinces where exist sugar plants
in, synthesizing the results of implementation of this Decision and biannually
report thereon to the Prime Minister.
5. The Steering Board for
Renovation and Development of Enterprises shall coordinate with the Ministry of
Agriculture and Rural Development and the provincial People's Committees in
directing the deployment and implementation of schemes on reorganization and
ownership conversion of plants.
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Article 6.-
This Decision takes effect 15 days after its publication in the Official
Gazette.
Article 7.-
The Minister of Finance, the Minister of Planning and Investment, the Minister
of Agriculture and Rural Development, the Vietnam State Bank Governor, the
general director of the Development Assistance Fund, the general director of
Vietnam Bank for Investment and Development, the general director of Vietnam
Bank for Agriculture and Rural Development, the general director of Vietnam
Bank for Industry and Commerce, the presidents of the People's Committees of
the provinces where exist sugar plants shall have to implement this Decision.
FOR THE PRIME
MINISTER
DEPUTY PRIME MINISTER
Nguyen Tan Dung
LIST
OF CLASSIFIED SUGAR PLANTS AND COMPANIES TO BE REORGANIZED
(Appendix
to Decision No. 28/2004/QD-TTg of March 4, 2004)
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1) Lam Son sugarcane and sugar
joint-stock company.
2) La Nga sugarcane and sugar
joint-stock company.
3) Binh Dinh sugar joint-stock
company.
4) Nghe An Tate and Lyle
sugarcane and sugar joint-venture company.
5) Vietnam- Taiwan sugarcane and
sugar company Ltd.
6) Long An Nagarjuna
international company Ltd.
7) Vietnam KCP Industrial
company Ltd.
8) Tay Ninh- Bourbon sugarcane
and sugar company Ltd.
9) Gia Lai- Bourbon sugarcane
and sugar company Ltd.
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1) Son Duong sugar company of
Sugarcane and Sugar Corporation I.
2) Nong Cong sugar company of
Sugarcane and Sugar Corporation I.
3) Tra Vinh sugarcane and sugar
company of Sugarcane and Sugar Corporation I.
4) Tuy Hoa sugarcane and sugar
company of Sugarcane and Sugar Corporation II.
5) Dong Xuan sugarcane and sugar
company of Sugarcane and Sugar Corporation II.
6) Binh Duong sugar company of
Sugarcane and Sugar Corporation II.
7) Hiep Hoa sugar company of Sugarcane
and Sugar Corporation II.
8) Quang Phu sugar plant of
Quang Ngai sugar company.
9) An Khe sugar plant of Quang
Ngai sugar company.
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11) Kon Tum sugar plant of Quang
Ngai sugar company.
12) Hoa Binh sugarcane and sugar
company.
13) Cao Bang sugarcane and sugar
company.
14) Tuyen Quang Industrial
Development company (sugarcane and sugar company).
15) Son La sugarcane and sugar
company.
16) Song Lam sugarcane and sugar
company.
17) Song Con- Nghe An sugarcane
and sugar company.
18) Dak Nong sugarcane and sugar
company.
19) 333 sugarcane and sugar
company.
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21) Phan Rang sugarcane and
sugar company.
22) Tri An sugarcane and sugar
company.
23) Tay Ninh sugarcane and sugar
company.
24) Tay Ninh non-refined sugar
plant of Bien Hoa sugar joint-stock company.
25) Ben Tre sugar company.
26) Vi Thanh sugar enterprise of
Can Tho sugarcane and sugar company.
27) Phung Hiep sugar enterprise
of Can Tho sugarcane and sugar company.
28) Soc Trang sugarcane and
sugar company.
29) Kien Giang sugarcane and
sugar company.
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31) Cam Ranh sugar plant of
Khanh Hoa sugar company.
32) Binh Thuan sugar company of
Sugarcane and Sugar Corporation II.
III. GROUP 3: PLANTS TO BE
RELOCATED OR TO STOP THEIR PRODUCTION
1) Quang Nam sugarcane and sugar
company of Sugarcane and Sugar Corporation II.
2) Quang Binh sugar company of
Sugarcane and Sugar Corporation I
3) VIGER liquor and beer company
of Sugarcane and Sugar Corporation I