DECISION

Approving the Project for “Encouraging Vietnamese enterprises in directly participating in foreign distribution networks by 2030”

THE PRIME MINISTER

Pursuant to the Law on Governmental Organization dated June 19, 2015; Law on amendments to the Law on Governmental Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to Law on Foreign Trade Management dated June 12, 2017;

Pursuant to Decree No. 98/2017/ND-CP dated August 18, 2017 of the Government on function, tasks, powers and organizational structure of the Ministry of Industry and Trade of Vietnam;

Pursuant to Decree No. 28/2018/ND-CP dated March 01, 2018 of the Government of Vietnam elaborating the Law on Foreign Trade Management concerning certain methods for developing foreign trade;

Pursuant to Decision No. 493/QD-TTg dated April 19, 2022 of the Prime Minister of Vietnam approving the goods import and export strategy by 2030;

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HEREBY DECIDES:

Article 1. Approving the Project for “Encouraging Vietnamese enterprises in directly participating in foreign distribution networks by 2030” (hereinafter referred to as “the Project”) with the following main contents:

I. OBJECTIVES

1. General objective

a) Develop the import and export market, ensure the sustainable growth for a long term;

b) Encourage Vietnamese enterprises in strongly participating in the global goods manufacture, supply and distribution chain, export directly to  foreign distribution networks on the basis of promotion of strengths and use of the competitive advantages of Vietnam's exports;

c) Build a close and strategic cooperation relationship between Vietnamese manufacturers and exporters and foreign distribution networks on traditional export channels and e-commerce channels, towards a stable and sustainable manufacture-export-distribution;

d) Contribute to the change of production thinking, organization of manufacture systematically and sustainably, thereby enhancing the long-term competitiveness of enterprises; attract domestic and foreign investment in clean and sustainable green production, process high-quality exports, bring high added value to Vietnamese exports; build Vietnam into a reputable country capable of supplying large volumes of goods meeting quality standards.

2. Specific objectives

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b) Assist in providing training and consultation for 15.000 enterprises to improve their competitiveness and supply capacity for gradually participating in the global value chain;

c) Assist 5.000 enterprises in developing their capacity to participate in cross-border e-commerce;

d) Organize connections and trade with foreign distribution networks 10.000 times;

dd) Support over 10.000 products exported directly to foreign distribution networks;

e) Strive to bring Vietnamese goods into traditional and online distribution chains in all countries having concluded free trade agreements (FTAs) with Vietnam.

II. Tasks and solutions

1. Assist enterprises with market information

a) Regularly update information about demands and tendencies for development of the world market and international supply chains;

b) Provide information and disseminate policies of distributors to domestic manufacturers and exporters to promptly grasp them and adjust them when necessary in order to meet criteria and requirements for being suppliers to foreign distribution networks;

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d) Build a network of export consultants to support Vietnamese enterprises to exchange, learn information and receive direct advice and guidance from experts on market, export, marketing and branding;

dd) Establish, maintain and develop a system of online database of industries and enterprises in the supply chain:

- Cooperate with areas and industry associations in building a database of Vietnamese industries and enterprises;

- Cooperate with Vietnamese Trade Offices, overseas Vietnam Trade Promotion Offices, foreign business associations in building a database of foreign industries and distribution enterprises;

- Develop tools to use, analyze and share databases, thereby extracting information according to needs for market analysis and business connection.

e) Maintain the Project's web portal and other digital information channels as a tool for disseminating market information, online providing advice to enterprises, approaching domestic and foreign enterprises, thereby ensuring the adequate and regular provision of information and creating an effective forum for connecting exporters and foreign distribution corporations.

2. Assist enterprises in developing their capacity for supply to foreign market

a) Provide training and assistance for enterprises in improving their capacity for studying and developing products suitable for market needs and requirements of distribution networks;

b) Assist enterprises in improving production organization capacity, productivity and product quality, meeting requirements, regulations and quality standards of foreign distribution networks through training programs, disseminating information, guiding enterprises to apply management systems and tools to improve product quality and productivity, especially tools to assist in smart production and smart services;

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d) Assist in improving the governance capacity of enterprises, increasing the ability to manage/control risks and effectiveness of enterprises in the face of difficulties and challenges in the current context;

dd) Build a network of production consultants to support Vietnamese enterprises to improve their research and development capacity; organize production towards the goal of sustainable development; apply science and technology in production, in order to improve competitiveness as well as the ability to meet the requirements of the market and distribution corporations;

e) Support in training and guiding enterprises to meet standards of production according to the standards of the import market in general and of distribution corporations in particular. 

3. Support enterprises in gradually adapting and transforming production to meet sustainable consumption trends

a) Support enterprises in using green - clean materials: promote activities to raise the independence of enterprises in materials, reduce dependence on imported materials, actively develop green and clean materials to enhance the value and competitiveness of products in the global value chain;

b) Encourage enterprises in energy transition and energy saving in the production process: raise the awareness of efficient and economical use of energy in enterprises, use production technology that saves resources, consumes less energy and is environmentally friendly; promote enterprises to energy transition to be clean and renewable in production. In the future, this will be a competitive advantage of exports to developed countries or countries that have participated in commitments at COP 26;

c) Promote the development of the circular economy in production: find support for enterprises in building and developing the circular economy in production (especially in the agriculture and aquaculture), towards a rational, economical and environmentally friendly production process;

d) Encourage enterprises in developing supporting industries, processing and manufacturing (especially agro-forestry-fishery processing industry), link global supply chains with distribution corporations.

4. Support enterprises in building a capacity to participate in cross-border e-commerce

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b) Promote support of Vietnamese enterprise in participating in distribution systems based on the cross-border e-commerce of Vietnam and other countries. Cooperate with cross-border e-commercial corporations in Vietnam and in other countries in gradually improving the capacity for digital transformation and training in sales skills (including marketing, customer services, after-sales services, etc.) on the digital environment, towards building and strengthening Vietnamese brands, helping businesses improve their competitiveness, effectively participate in the global production and supply chain towards market development in a sustainable manner;

c) Improve the development in logistics services for export to distribution firms on cross-border e-commerce platforms.

5. Support development of brands

a) Cooperate with distribution corporations and consulting experts in supporting provinces/cities, associations and enterprises in developing from brands of distributors to co-brands and developing towards personal brands in their distribution systems;

b) Cooperate with foreign distribution networks in supporting the development of Vietnamese-branded products in their distribution systems on the cross-border e-commerce platforms;

c) Support enterprises in registering product brand protection in the international market and cooperate with distribution corporations in strengthening their positions and advertising Vietnamese products.

6. Connect and trade with foreign distribution networks, including:

a) Organize seminars to connect and trade between manufacturing enterprises and exporting enterprises with foreign distributors;

b) Organize a Program for Vietnamese Good Week for foreign distribution networks; support domestic enterprises in displaying and introducing goods in the Program according to regulations of law;

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d) Visit and learn about the manufacture of manufacturing and exporting enterprises of Vietnam by foreign distribution corporations;

dd) Connect with distribution networks owned by overseas Vietnamese traders; organize advertising for the overseas Vietnamese community.

7. Organize communication activities

a) Establish communication to heighten Vietnamese enterprises’ awareness:   

- Communicate benefits of the participation in the scheme, thereby contributing to changing awareness and improving the understanding of enterprises about the model of direct participation in foreign distribution networks and considering this as an effective product and brand export and promotion channel;

- Transmit information and guide enterprises on standards of participation and process for supply of goods to foreign distribution networks;

- Communicate activities of the Scheme on supporting enterprises in direct approaching with foreign distributors and consumers;

b) Communicate experience in putting goods into foreign distribution networks:

Experience of success of typical enterprises which have participated in the Scheme in innovating and researching the market, organizing manufacture, improving product quality to satisfy the international standards, developing guest services, thereby raising turnover of selling to foreign distribution systems.

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Overseas communicate Vietnam’s image as a reliable and quality source, etc. Through export dissemination activities, customers can clearly see the production capacity and product quality of Vietnamese manufacturing industries and enterprises.

d) Use multimedia communication tools, diversify forms of dissemination with customers.

8. Develop mechanisms and policies to promote foreign enterprises to develop sustainable purchasing strategies for the Vietnamese market

a) Encourage and support foreign distribution corporations to set up commercial presence (open representative offices, establish purchasing enterprises, etc.) in Vietnam, cooperate in bringing Vietnamese exports into the distribution networks of corporations in other countries, especially goods bearing Vietnamese brands;

b) Encourage and support multinational distribution corporations already present in Vietnam to associate and cooperate with domestic manufacturing facilities and enterprises in developing sources of goods for global distribution networks of such corporations or enterprises, and building Vietnam into a regional supply center;

c) Promote the signing of agreements to establish a cooperation framework with foreign distribution corporations with specific action plans.

9. Research and develop mechanisms and policies to encourage Vietnamese enterprises to actively develop distribution agent systems in foreign markets to bring Vietnamese goods into foreign distribution networks.

10. Other tasks

Make good use of FTAs ​​already in effect between Vietnam and partners; negotiate and promote the market opening process for Vietnam's key agricultural and aquatic products in foreign markets, create a premise for the introduction of Vietnamese products into the foreign distribution systems.

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Funding for the implementation of this Project shall be allocated from the central and local budgets under the current budget decentralization prescribed in the Law on State Budget in 2015; from contributions and sponsorships of domestic and foreign individuals and organizations; from other lawful revenue sources as prescribed by law (if any).

Article 3. Organization of implementation

1. Ministry of Industry and Trade

a) Take charge and cooperate with Ministries, central and local authorities, industry associations and enterprises, based on their assigned functions and tasks, in implementing the tasks and solutions stated in the Project;

b) Organize dissemination of the Project to local authorities, associations and enterprises, and direct and urge the implementation thereof;

c) Strengthen the direction of Trade Offices, Trade Promotion Offices in foreign countries to support enterprises to connect and export directly to foreign distribution networks;

d) By the end of 2025, the Ministry of Industry and Trade shall take charge and cooperate with concerned ministries and branches in making summaries and mid-term evaluations of the implementation of the Project, and reporting them to the Prime Minister for necessary adjustments for the following period. BY the end of 2030, evaluations and summaries of the process of implementation of the Project shall be made.

2. The Ministry of Finance

Submit a proposal to allocate funds from the annual state budget to ministries and central authorities to perform the tasks of the project to competent authorities in accordance with the Law on State Budget and relevant laws.

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Negotiate and promote the market opening process for Vietnam's key agricultural and aquatic products in foreign markets, create a premise for the introduction of Vietnamese products into the foreign distribution systems.

4. Ministries, central authorities and local authorities

a) Based on tasks and solutions mentioned in the Project, Ministries, central authorities and local authorities and relevant agencies shall, within their jurisdiction, take the initiative in formulating a plan to implement the project, make annual summaries of the implementation results, and send them to the Ministry of Industry and Trade for consolidation.

Ministries and central authorities shall prepare estimates for the implementation of the Project's activities and consolidation of them into the annual budgets to be submitted to the Ministry of Finance. Local authorities shall take the initiative in allocating funds from sources of the local budget and other lawful sources according to the applicable law.

b) Consolidate difficulties from enterprises in different industries to propose and recommend policies to support and solutions to solve them in a timely manner;

c) Take the initiative in reviewing and amending policies within their assigned fields or areas to encourage and enable Vietnamese enterprises to participate in exporting their goods to foreign distribution networks;

d) Actively cooperate and create conditions to distributors to develop their supply systems in Vietnam;

dd) Develop a handbook to introduce key products, a list of reputable local enterprises to introduce and attract distributors to build a supply or purchase system for local products. .

5. Business associations and industry associations

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b) Consolidate difficulties arising and propose policies and solutions for solving such difficulties to competent authorities;

c) Provide and update data on the direct export of enterprises to foreign distribution networks.

Article 4. This Decision comes into force from the day on which it is signed.

Article 5. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People's Committees of provinces and central-affiliated cities and relevant organizations, units and individuals are responsible for implementation of this Decision.

PP. PRIME MISNISTER
DEPUTY PRIME MINISTER




Le Van Thanh