THE MINISTRY
OF INDUSTRY AND TRADE
-------
|
THE
SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------
|
No. 6209/QĐ-BCT
|
Hanoi,
November 25, 2010
|
DECISION
APPROVING THE MASTER PLAN FOR THE DEVELOPMENT OF THE LEATHER
AND FOOTWEAR INDUSTRY OF VIETNAM BY 2020 AND THE ORIENTATION TOWARDS 2025
THE MINISTER OF INDUSTRY AND TRADE
Pursuant to the Government's Decree No. 189/2007/NĐ-CP
on December 27, 2007 on defining the functions, tasks, powers and
organizational structure of the Ministry of Industry and Trade;
Pursuant to the Government's Decree No.
92/2006/NĐ-CP dated September 07, 2006 of the Government on the establishment,
approval, and management of the master plan for socio-economic development, and
the Government's Decree No. 04/2008/NĐ-CP dated January 11, 2008, amending and
supplementing a number of articles of the Decree No. 92/2006/NĐ-CP;
At the proposal of the Director of the
Department of Light Industry,
DECIDES
Article 1. Approving the master plan for the development of the leather
and footwear industry of Vietnam by 2020 and the orientation towards 2025. In
particular:
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a) Develop the leather and footwear industry of
Vietnam in accordance with the master plan for socio-economic development,
national industrial development, local socio-economic development, and the
roadmap of international integration of Vietnam;
b) Mobilize the economic sectors, domestic
resources, and attract foreign investment in developing leather and footwear
industry of Vietnam to serve the export and domestic sale, increase the revenue
of foreign currency, create employments, improve the incomes and life of
employees;
c) Intensify the production of materials and
ancillary industries that support the leather and footwear industry aiming to
reduce trade deficit, raise added values, participate deeply in the added value
chain of the world’s leather and footwear market;
d) Develop the leather and footwear industry of
Vietnam rapidly and sustainably towards specialization, modernization, and
application of new and modern technologies using advanced and eco-friendly
apparatus, aiming to achieve high productivity and economic efficiency, to
integrate into the regional and the world’s economy, to step by step converting
from outsourced processing to proprietary production;
e) Combine the rapid development of production
scale with the expansion of foreign and domestic markets; study and apply
science and technologies; develop the trained human resources, especially poor
and agricultural labor that participate in the economic restructuring from
agriculture to industry. Combine the production development with the
fulfillment of social obligation and environment protection. Move the
facilities that process toe caps to rural areas and labor-abundant areas;
g) Develop the competence in designing and
developing new products, prioritizing the application of automation to
production and management;
2. Targets of development
a) General targets
Make the leather and footwear industry of
Vietnam a key export industry by 2020. Remain one of the leading countries in
the production and export of leather and footwear. Create more employments,
increase employees’ income, fulfill social responsibilities, increase the
number of trained workers
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- The value growth rate of the leather and
footwear industry reaches 9.4% per year during 2011 – 2015; 8.8% per year
during 2016 – 2020; 8.2% per year during 2020 – 2025;
- Try to achieve the export turnover of 9.1
billion VND in 2015; 14.5 billion VND in 2020, and 21 billion VND in 2025. The
growth rate of the average export turnover reaches 10.9% per year during 2011 –
2015; 9.7% per year during 2016 – 2020; 7.6% per year during 2021 – 2025;
- Gradually increase the proportion of domestic
products. The proportion of domestic products reaches 60-65% in 2015; 75-80% in
2020, and 80-85% in 2025;
- Lead the fashion industry of Vietnam, together
with the textile and garment industry, in some major cities;
- Build some industrial complexes and industrial
parks of leather and footwear; produce materials and safeguard the environment
by utilizing the existing infrastructure and labor, in order to actively supply
the materials and raise the competitiveness;
- Build new and develop the training
institutions, scientific and technological research institutions, laboratories,
service centers, trade promotions centers, and fashion centers at home and
overseas.
3. Development orientation
a) Plan for strategic products
- Footwear is the primary products of the
industries. The production and export of sneakers must be prioritized;
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- Concentrate on producing leather using
advanced and eco-friendly technologies serving the strategy to produce
high-quality bags, purses, satchels, wallets, and fashion leather footwear to
serve high-end market and domestic market. Invest in leather production and
livestock to reduce trade deficit and to be more active in production.
- The average production and growth rate by
2020:
No.
Products
Unit
2015
2020
1
Footwear
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1,172
1,698
2
Bags, satchels, wallets,
purses
Million units
170
285
3
Leather
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- Hard Leather
1,000 tonnes
39
63
- Soft Leather (30x30)
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197
277
Average
growth rate
2011 - 2015
2016 – 2020
1
Footwear
% per year
9.0
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2
Bags, satchels, wallets,
purses
% per year
13.0
12.0
3
Leather
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- Hard Leather
% per year
15.0
10.0
- Soft Leather
% per year
10.0
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b) Planning by region
Arrange the development centers and producing
capacity by region based on the advantages of man power, the resources of materials,
and the traffic. Maintain and develop the existing centers of leather and
footwear in major cities into shopping malls; design new models and
technological services with high real-time; move the producing facilities,
especially the facilities the process toe caps, to adjacent areas and
labor-abundant rural areas.
The production and investment of the leather and
footwear industry nationwide are arranged in 4 primary regions:
Region 1: the Red River Delta
Hanoi is the center of services, supply of materials,
technologies, models and designs, facilities that produce footwear, bags,
satchels, wallets, and purses with high value and reasonable scales, and the
professional trade promotion centers.
The processing enterprises shall be developed or
moved to provinces such as Hai Duong, Bac Ninh, the peripheral areas of Hai
Phong city, Pho Noi (Hung Yen), Dong Van (Ha Nam), Nam Dinh, expanded Hanoi,
Phu Tho, and Vinh Phu. These areas shall focus on providing materials and
ancillary services; small industrial complexes, and trade villages. Develop
training centers, and centers of scientific research, technology transfers and
application.
Region 2: South East area
Ho Chi Minh city is the center of services,
supply of materials, technologies, models and designs, facilities that produce
footwear, bags, satchels, wallets, and purses with high value and reasonable
scales, and the professional trade promotion centers; build small industrial
complexes and trade villages in peripheral districts of the city. Move the leather
facilities in the center and the periphery of the city to the concentration
leather areas away from the city and residential area.
The facilities that production footwear, bags,
satchels, wallets, and purses shall be moved to provinces such as Binh Duong,
Dong Nai, Tay Ninh. Such area shall focus on providing materials and ancillary
services. Develop training centers, and centers of scientific research,
technology transfers and application.
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Da Nang city is a center of the major industrial
complexes of processing, and producing footwear, bags, satchels, wallets, and
purses of the leather and footwear industry
The facilities making toe caps, producing
footwear, bags, satchels, wallets, and purses, leather and foot wear made of
crocodile leather and ostrich leather shall be developed in provinces such as
Binh Dinh, Da Nang, Quang Nam, Khanh Hoa.
Region 4: The Mekong Delta
Can Tho city is the center. Encourage
enterprises to expand the processing and production of footwear, and cooperate
with local leather and footwear enterprises because of the advantage of human
resources and incentives for economic restructuring.
Focus on Point the leather products, footwear, bags,
satchels, wallets, and purses made of crocodile leather and python leather This
is the advantage of the region recently by developing the largest area of
reptile breeding in Vietnam.
(More details in Annex 1 promulgated together
with this Decision).
4. Capital demand for
developing the leather and footwear industry
- Total capital during 2011 – 2015 is 28,340
billion VND. Including:
+ Domestic investment: 12,340 billion VND,
making up 44%;
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- Total capital during 2016 – 2020 is 31,230
billion VND. Including:
+ Domestic investment: 13,124 billion VND,
making up 42% total investment;
+ Foreign investment: 944 million USD, making up
58% total investment.
- Total capital during 2011 – 2020 is 59,570
billion VND. Including:
+ Domestic investment: 43%
+ Foreign investment: 57%
(More details in Annex 2 promulgated together
with this Decision).
5. Solutions for
implementation
a) Investment solutions
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Mobilizing all capital sources from all economic
sectors, under various form of ownership, at home and overseas, to build and
develop more production and business establishments.
Encourage the development of medium and small
enterprises and trade villages. Encourage the commencement of leather and
footwear enterprises that create many employments and hire existing labor in
rural areas.
The investment must ensure both rapid expansion
of the production scale and capacity, and the restructuring of the industry
towards sustainable development and increasing efficiency. Some primary
projects of investment:
- Invest in expanding more 3,000 of production
lines of toe caps, and projects of producing bags, satchels, wallets, and
purses These projects of investment must be executed in rural areas and
labor-abundant areas.
- Invest in new and expand more than 400 lines
of footwear assembly. These projects of investment must be executed in
provinces that have advantages of seaports and materials;
- Invest in new and develop the fashion survey
centers in major cities; centers of assessing quality of materials and
products; the projects of investment in waste treatment sites and environment
protection;
The projects of producing leather and footwear
materials; projects of investment in industrial parks and industrial complexes
of leather and footwear materials shall enjoy incentives as ancillary
industries, and enjoy incentives for investment credit and export credit from
the State;
The State shall consider and allocate land for
developing industrial parks and industrial complexes of leather and materials;
develop the centers of leather and footwear materials; the centers of training,
scientific research, technology transfer and application, model design; test
labs and concentrated environment treatment sites of the industry.
b) Solution for developing the material
production and ancillary industries.
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- Build 02 centers (01 in the south, 01 in the
north) of providing materials and ancillary services, in order to make a breakthrough
of leather and footwear ancillary industries.
- Expedite the construction of 02 concentrated
leather industrial parks/industrial complexes (01 in the south, 01 in the
north) that have a waste treatment system to satisfy the demand for leather at
home and for export, reduce the import, and increase the proportion of domestic
products.
- Expedite the projects of building fashion
research centers and leather and footwear development centers in Hanoi and Ho
Chi Minh city;
- Encourage enterprises to study and produce
machinery and equipment serving the industry development to reduce trade
deficit.
c) Solution for the market
In order to sustain, expand the export market,
and gradually break into the domestic market, the leather and footwear industry
must be developed based on its efficient and active production capacity, under
the management of business people experienced in international fashion. In
particular:
- Sustain the primary products (sneakers) and
traditional markets (US, EU, Japan) together with actively and flexibly
innovate the structure of producing exports, in order to satisfy the diverse of
the market, especially the export market;
- Study to give early warnings about the
liability to imposition of penalties for subsidies and dumping in order to
avoid litigation when participating in the world's market. Apply the commercial
protection measures for dumping and intellectual property to protect the
domestic production and consumers;
- Enhance the trade promotion via the National
trade promotion program aiming to sustain traditional export markets (US, EU,
Japan, and) and develop new markets (Middle East, Africa, SNG, Asia). Regularly
hold fairs and exhibitions at home and overseas to provide enterprises with
opportunities to advertise and introduce their products to consumers nationwide
and foreign investors who look for a chance to produce or trade leather and
footwear in Vietnam;
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- Cooperate with the textile and garment
industry in building a number of fashion centers and shopping malls in major
cities and economic centers;
- Actively approach the modern business skills,
prioritizing the development of trademarks and brand names, in order to present
the image of Vietnam’s leather and footwear to domestic and international
markets.
d) Solution for training the human resources
By 2020, prioritize the training of human
resources to create a resource for converting the method of production, improve
the quality of human resources able to participate in international production
and business on the basis of achieving the social potential and generating
motivation for developing the industry, and the extensive mechanism of
socialization. In particular:
- Cooperating with schools of the Ministry of
Industry and Trade and other training institutions in building some training
centers specialized in leather and footwear industry that meet the National
standards that adopt the method of socializing education and training;
- Build a training system by in the cooperation
of the State - the school - and the corporations;
- Build a complete vocational module according
to the segments of the added value chain of the leather and footwear industry
(design, production, sale) aiming to create a training database for training
institutions, and enterprises may base on that to train human resources that
suit their requirements, shorten the distance between theory and practice,
create favorable conditions for enterprises to retrain and enhance the
proficiency of workers;
- Boost and expand international cooperation in
training to build and improve the qualified human resources that are comparable
to that of develop countries, and may deeply penetrate the international
market.
- Encourage all economic sectors and forms of
enterprises at home and overseas to contribute in the investment in the
training of the leather and footwear industry.
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- The Vietnam Leather & Footwear Association and the Leather and
Footwear Research Institute must cooperate with vocational schools in opening
training class for the managers, designers, technicians, and salespeople;
combine short-term and long-term training; combine formal training and
on-the-spot training, training at home and training abroad;
e) Solution for the development of science and
technology, and environment protection
- Expand and improve the capability of leather and footwear
research institutes towards autonomy, so that they can become focal units in
studying, applying new technologies and materials, training human resources,
and participating in planning strategy for the development of leather and
footwear industry;
- The State shall encourage enterprises to
invest in scientific research and applying advanced and modern technologies in
their production via trading and technology transfer with countries of which
the leather and footwear industry is developed;
- Study the treatment of wastes in form of
solid, liquid, and gas from the processing and production of leather and
footwear applying advanced and eco-friendly technologies;
- Build a database of international and
Vietnamese shoe sizes; build a database of leather and footwear industry and
the system of technical and artistic module of footwear production;
- Build 2 centers of analyzing materials,
products, and environment of the leather and footwear industry in Hanoi and Ho
Chi Minh city;
- Boost the international cooperation and
encourage the domestic creation in scientific research in order to create
advanced technologies for the industry, on the basis of expediting and
executing some science and technology projects that suit each development stage
of the industry.
f) Solution for the industry management
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- Enhance the role and efficiency of the Vietnam
Leather & Footwear Association, on the basis of effectively creating the
connection among the leather and footwear enterprises, between leather and
footwear enterprises and the Government (the Ministry of Industry and Trade).
The Association must represent the enterprises, settle the shared issues of the
industry, collect opinions and proposals from leather and footwear enterprises
and sent to the Government or the Ministry of Industry and Trade, aiming to
build a legal corridor for the sustainable development of enterprises in
accordance with Vietnam’s law and international law;
- Formulate technical standards and Vietnam’s
Standards of leather and footwear industry to satisfy the requirements for
international integration in accordance with Vietnam’s law;
- Intensify the inspection and supervision of
the implementation of the Law on Intellectual property, the Law on Trade, and
take the commercial precaution measures for ensuring the interests of consumers
and enterprises.
Article 2. Implementation organization
1. The Ministry of Industry and Trade shall be
in charge and cooperate with relevant Ministries, industries, and People’s
Committees of central-affiliated cities and provinces in directing the
development of the industry in accordance with this plan, and announcing this
plan;
2. The Ministry of Planning and Investment, the
Ministry of Finance, the Ministry of Agriculture and Rural development, the
Ministry of Science and Technology, the Ministry of Natural Resources and
Environment, the Ministry of Education and Training, the State bank of Vietnam,
and the Vietnam Development Bank must cooperate with the Ministry of Industry
and Trade in supporting enterprises and localities in implementing the Plan and
approved schemes.
3. People’s Committees of central-affiliated
cities and provinces must concretize the master plan for developing the leather
and footwear industry locally, and cooperate with Ministries and industries in
supervising the implementation of the plan to ensure the uniformity with the
master plan for local socio-economic development.
4. Vietnam Leather & Footwear Association
must cooperate with the Ministry of Industry and Trade in propagating and
disseminating this plan to leather and footwear enterprises nationwide in order
to have an orientation and plan for production and business development in
accordance with the plan. Collecting opinions and proposals from enterprises
and send to competent agencies to adjust the plan to suit the actual situation.
Article 3. This Decision takes effect as from the date of its
signing.
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THE MINISTER
Vu Huy Hoang
ANNEX 1
STRUCTURE OF PRODUCITON BY REGION
(Promulgated together with the Decision No. 6209/QĐ-BCT dated November 25,
2010 of the Ministry of Industry and Trade)
Primary
products
Region 1
Region 2
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Region 4
Structure of
production by region in 2010
1. Footwear (%)
10
79
6
5
2. Leather (%): - Hard Leather
- Soft leather
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92
2
3
3
91
3
3
3. Bags, satchels, wallets, purses (%)
7
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4
5
Structure of
production by region in 2015
1. Footwear (%)
12
72
9
7
2. Leather (%): - Hard Leather
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5
84
5
6
5
84
6
5
3. Bags, satchels, wallets, purses (%)
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83
4
5
Structure of
production by region in 2010
1. Footwear (%)
14
67
10
9
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- Soft leather
7
79
6
8
7
79
7
7
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Region 1: the Red River Delta
- Including: Hanoi, Bac Ninh, Vinh Phuc, Quang
Ninh, Hai Duong, Hai Phong, Hung Yen, Thai Binh, Ha Nam, Nam Dinh, and Ninh
Binh.
- Hanoi is the center.
Region 2: South East area
- Including: Binh Phuoc, Tay Ninh, Binh Duong,
Dong Nai, Ba Ria – Vung Tau, and Ho Chi Minh city.- Ho Chi Minh city is the
center.
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- Including: Thanh Hoa, Nghe An, Ha Tinh, Quang
Binh, Quang Tri, Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu
Yen, Khanh Hoa, Ninh Thuan, and Binh Thuan;
- Da Nang city is the center.
Region 4: The Mekong Delta
- Including: Long An, Tien Giang, Ben Tre, Tra
Vinh, Vinh Long, Dong Thap, An Giang, Kien Giang, Can Tho, Hau Giang, Soc
Trang,Bac Lieu, and Ca Mau;
- Can Tho city is the center.
ANNEX 2
LIST OF PROGRAMS AND PROJECTS OF INVESTMENT BY 2015
(Promulgated together with the Decision No. 6209/QĐ-BCT dated November 25, 2010
of the Ministry of Industry and Trade)
1. Projects of ancillary industries
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- Project of investment in producing PU-coated
leatherette that reaches 20 million m2 per year, estimated
investment is 210 billion VND;
- Project of investment in producing materials
for footwear, bags, satchels, wallets, and purses, estimated investment is 450
billion VND;
- Project of investment in producing molds and
blades, estimated investment is 500 billion VND;
- Project of investment in producing shoe lasts,
estimated investment is 200 billion VND;
- Project of investment in producing finished
leather that reaches 25 – 30 million pieces per year, estimated investment is
1,600 billion VND
2. Projects of building the infrastructure of
industrial parks, industrial complexes, and waste treatment
The project of investment in environment
protection for the leather and footwear industry in industrial parks,
industrial complexes, and factories are eligible for preferential loans from
environment protection funds, ODA, or investment and development fund.
The new projects:
- Project of investment in building a
concentrated waste treatment site for leather production (not including waste
burial) that reaches 600 tonnes per day, estimated investment is 700 billion
VND;
- Project of investment in building a
concentrated waste treatment site for production of footwear, bags, satchels,
wallets, and purses, that reaches 600 tonnes per day, estimated investment is
700 billion VND;
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- Project on industrial parks and industrial
complexes of footwear and materials in the north (region 1), estimated
investment is 350 billion VND;
- Project on industrial parks and industrial
complexes of footwear and materials in the south (region 2), estimated
investment is 350 billion VND;
- Project of investment in industrial parks and
industrial complexes of leather and footwear industry, estimated investment is
1,000 billion VND.
3. Projects of science, technology, and training
for human resources
The projects of investment in development of
science and technology, the projects of investment in developing human
resources, the projects of product research are partly funded by the State. The
new projects:
- Investment in of leather and footwear research
institutes, estimated investment is 100 billion VND.
- Investment in building 2 centers of analyzing
materials, products, and environment, estimated investment is 100 billion VND;
- Project of building a database of leather and
footwear industry: 20 billion VND;
- Project of building a database of leather and
footwear industry: 30 billion VND;
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4. The projects according to the
socialization mechanism
The projects of building trade promotion and
services centers are executed according to the socialization mechanism
Prioritize the construction of fashion centers in Hanoi and Ho Chi Minh city.
The capital is raised from domestic and overseas sources The new projects:
- Building trade promotion centers and fashion
centers in Hanoi and Ho Chi Minh city; estimated investment is 200 billion VND.
5. Projects of attracting foreign investment
The new project of investment aiming to increase
the productivity, expand the scale and diversify the products, provide
materials and ancillary services The new projects:
- Investment in new projects of material
production and ancillary industries: 1,200 billion VND.
6. The national programs for developing the
industry
- The National trade promotion program,
estimated budget: 50 billion VND;
- The National Industry support program,
estimated budget: 25 billion VND;
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