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You are here: Investors » How to invest » Laws and regulations on investment » Decision No.429 of the Prime Minister
Decision No.429 of the Prime Minister
This decision is to approve the five-year plan of production and trading, investment and development of the vietnam national textile and garment group for the period of 2011-2015. The overall objectives are to develop Vietnam Textile and Garment Group into a strong economical unit, the core unit of Vietnam textile industry, which is capable for competition in domestic and international market, effective in production and trading, meeting the increasing domestic needs and tastes, creating more jobs for the society, ensuring sustainable development, protecting ecological environment, integrating firmly in global and regional economics etc.

THE PRIME MINISTER
-------

THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
---------------

No.: 429/QD-TTg

Hanoi, April 12, 2012

 

DECISION

ON APPROVING THE FIVE-YEAR PLAN OF PRODUCTION AND TRADING, INVESTMENT AND DEVELOPMENT OF The VIETNAM NATIONAL TEXTILE AND GARMENT GROUP FOR THE PERIOD OF 2011-2015

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Conclusion No. 78-KL/TW of July 26, 2010 of the Politburo on the inspection results of the implementation of the Central Resolution No.3 and No.9 (Term IX) and the Resolution of the Party Congress on further reorganizing, renovating, developing and improving efficiency of State-owned enterprises and on the scheme of further strengthen and promote the role of the state capital investment and trading corporations;

Pursuant to the Decision No. 36/2008/QD-TTg of March 14, 2008 of the Prime Minister approving the Strategy on development of Vietnams Textile and Garment industry till 2015 and orientations to 2020;

At the proposal of the Minister of Industry and Trade,

DECIDES:

Article 1. To approve the the five-year plan of production and trading, investment and development of The Vietnam National Textile and Garment Group for the period of 2011-2015 with the following principle contents:

I. OVERALL OBJECTIVES

To develop Vietnam Textile and Garment Group into a strong economical unit, the core unit of Vietnam textile industry, which is capable for competition in domestic and international market, effective in production and trading, meeting the increasing domestic needs and tastes, creating more jobs for the society, ensuring sustainable development, protecting ecological environment, integrating firmly in global and regional economics.

II. SPECIFIC OBJECTIVES

1. Key targets for the period of 2011 - 2015

By 2015, the industrial production value reaches 28,144 billion VND; non VAT turnover reaches 53,858 billion VND; export turnover reaches 3,865 million US dollars and before-tax profit reaches 2,434.3 billion VND (see details in Appendix I).

2. Orientation and investment targets of the projects for the period of 2011 – 2015

The expected new investment projects and transitional forwarding projects in the period 2011 - 2015 of the Vietnam Textile and Garment Group and its subsidiaries will continue to adhere to the 03 strategic target programs approved by the Prime Minister for the purpose of increasing of the production capacity of the Group, dominating the domestic market and gradually promoting their competitive capacity in the international market and establishing the position of Vietnam textile industry.

List of key investment projects and intergration aggregation of invested capitals in of projects for the period of 2011 - 2015 see Appendix II for details.

3. Implementation Solutions

a. Strategic solutions

- To implement immediately in 2012 the equitization plan of the Group parent company and its affiliates subsidiaries which have not been equitized in order to attract further investment capital.

- To expand the areas of raw material plantation for textile industry, especially the fabric cotton development program by 2015 and orientation to till 2020. To strive for the Cotton area to reach 50,000 ha by 2015, of which the irrigated cotton area will reach 10,000 ha. The average productivity will to reach 1.5 tons / ha, 2 tons / ha for irrigated cotton. The production of fiber cotton will to reach 35-40 thousand tons.

- To strengthen assessment, examination of production and business efficiency of investment projects and of the affiliates. To dissolve or merger the affiliates operating inefficiently.

- To perfect regulation on standardization of internal control department at Group enterprises holding controlling shares.

b, Market affairsaffairs

- To balance and improve the quality of supply chain (yarn - weaving - completed dyeing - sewing) in order to increase the competitiveness of the Group and Group subsidiary enterprises and be ready for the swifting of textile trend from Europe and China to ASEAN countries.

- To improve the quality of research, analysis, evaluation, and forecast of socio-economic reality and competitors in order to decide appropriate strategies for each stage.

- To increase the localization proportion of textile production of the Group, to gradually swift from processing role to actively producing of FOB, ODM. To to reach 10%for the the ODM designing value ratio by 2015.

- To build appropriate development strategics for domestic and international market. To emphasize on development of VINATEX brandname, together with other fashional brandnames of affiliates e.g. Viet Tien, San Sciaro, Mattana, etc, in order to dominate the domestic market and conquer international market.

- To consolidate and increase market share in large textile markets e.g the U.S., EU and Japan. develop research programs to exploit new markets such as Canada, Korea, ASEAN, Russia, etc.

- To invest in improving the fairs and exhibition organization and to actively participate in international fairs. To improve the quality of system of retail service and e-commerce.

c, Financial solutionsaffairs

- To develop detailed financial plan, to strictly balance capital demands in production and business and in development investment.

- To enhance the efficient use of capital, reduce capital turnover. To flexibly balance USD and VND loan structure for lower average interest rates.

- To focus on improving the performance efficience of Vietnam textile financial stock Company, forming the base of providing loans to textile subsidiaries of the Group.

- Regardig to construction projects: to balance cash flow and priority of the project. To evaluate the effectiveness of the project, through which:

+ Enhancing the investment effectiveness of projects.

+ Suspending inefficient projects.

- To priorly invest capital in efficiently performing companies.

- To priorly contribute and supplement capital to efficiently performing companies and shall not to reduce the holdings in these companies.

d) The organization and training of human resources

- Develop appropriate incentive policies in order to draw high quality human resources.

- To Train and develop succeeding forces till 2015.

- To start undergraduate enrollment of Hanoi Fashional Textile Industry College from school year 2012-2013.

- To cooperate with other universities at home and abroad to develop and implement international professional training programs in textile and garment, fashion and fashion business.

e) The investment, development and production efficiency improvement

- To emphasize on building and implementation of investment projects under the oriental investment planning of the Group for the establishment of the value-linked chain among afffiliates within the Group, improving synergic strength, increasing competitive capacity.

- To actively search for cooperation partners in research and investment projects in the fields of science and technology, textile equipments, raw materials manufacturing and processing for the stabilization of input raws and accessories for production.

- To step up trade promotion, to draw foreign and domestic investors to invest in the key projects of the Group during the period of 2011-2015.

- To improve management responsibilities of individuals in new investment affairs.

- To drastically implement the Resolution No. 01/NQ-CP of January 03, 2012 of the Government on implementation the solutions of saving, reducing raw material and fuel waste, renovating production rationalization and applicating advanced management processes in order to improve productivity, increase additional value for products and thereby improve the income and working conditions of workers.

e) Scientific research, engineering and environmental technology

- To formalize and perfect organization structure of research institutes in 03 major professional sectors: the new product research, consultation, and test and examination.

- To continuously promote the scientific researchs associated with the actual demands, to improve the practicality of themes, to commercialize products of scientific researchs.

g, Regrading to Cultivation of enterprise culture

To further consolidate and develop the enterprise culture into the core values of the Group and affiliates, ensuring the sustainable development.

h) communication

- To develop professional communication strategies, to emphasise the brand and core values of the Vietnam Textile and Garment Group.

- To improve the quality and popularity of magazines e.g. Fashion Magazine, Vietnam Fashional Textile Magazine.. ToTo perfect and develop the Group's new website.

Article 2. Organization of Implemetation

1. Ministry of Industry and Trade

a, To assume the prime responsibility for regular supervision and overall evaluation of performance of Vietnam Textile and Garment Group, ensuring the fulfillment of approved plan of the Group.

b, To coordinate with Ministry of Planning and Investment and Ministry of Financa to promptly handle issues arising during the implementation of plan; to report to the Prime Minister for handling over-competence issues.

2. Relevant Ministries and branches, according to their authozied line competence, shall together with the Ministry of Industry and Trade direct and organize the implemtation of this Decision.

3. People's Committees of cities and provincescentrally run shall facilitate and support the Vietnam Textile and Garment Group in actualization of the proposed plan.

4. Member Council of Vietnam Textile and Garment Group is responsible for implementation and ensuring the completion of the approved plan. To annually report on the plan implementation and the encumberments and difficulties arising in the implementation process.

Article 3. This Decision take effects on the date of signing..

Article 4. The ministers, heads of ministerial-level agencies, heads of Governmental agencies, Presidents of People’s Committee of cities and provincescentrally run and relevant organizations and individuals shall be responsible for implementing this Decision. /.

 

 

FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Hoang Trung Hai

 

ANNEX I

KEY TARGETS OF VIETNAM TEXTILE AND GARMENT GROUP FOR THE PERIOD OF 2011 – 2015
(Issued together with the Decision No. 429/QD-TTg of April 12, 2012 of the Prime Minister)

No.

Target

Implemented

Year 2011

Expected

Average increasing rate (%)

Year 2012

Year 2013

Year 2014

Year 2015

1

Industrial production value (billion VND)

15,144.1

17,200.1

23,431

26,946

28,144

14

2

Non VAT turnover (billion VND)

35,673.2

40,699.3

45,593

50,152

53,858

13

3

Full export turnover (million US dollars)

2,303.3

2,602.4

2,969

3,420

3,865

15

4

Full import turnover (million USD)

1,103

1,144.6

1,344

1,465

1,615

9.4

5

Key products

 

 

 

 

 

 

a

- Yarn (1,000 ton)

112

125.5

173

197

231

14.6

b

- Cloth – any kind (million m2)

231.9

258.2

383

440

506

17.9

c

- Textile products –any kind (million)

268.5

298.7

376

433

503

15.4

6

Before-tax profits (billion VND)

1,340.20

1,691.60

1,909.82

2,156.19

2,434.34

12.9

7

State Budget Remittance

1,077.30

1,239.33

1,425.22

1,639.00

1,884.85

15

 

ANNEX II

THE LIST OF KEY INVESTMENT PROJECTS AND INTEGRATION OF INVESTED CAPITAL IN PROJECTS OF VIETNAM TEXTILE AND GARMENT GROUP FOR THE PERIOD OF 2011-2015
(Issued together with the Decision No. 429/QD-TTg of April 12, 2012 of the Prime Minister)

1. List of key investment projects during period of 2011-2015

No.

List of Projects

Unit

Number of projects

Additional production capacity

Total of investment (billion VND)

1

Relocation

 

03

 

2,877

2

Yarn

Ton

29

175,000

10,424

3

Weaving - Dyeing

 Million m2

10

314

6,913

4

Sewing

Million unit

15

250

2,220

5

Other

 

14

 

1,424

Total

71

 

23,858

2. Integration of invested capital in projects for the period of 2011 - 2015

Capital resources

(Billion VND)

1. From Owners

7,500

Of which

 

+ From changing land-use purposes of Group affiliates

3,000

+ From issuing shares during Group equitization.

1,600

+ From left-over profits of the Group

1,400

+ From basic depreciation and profits of enterprises (other capital)

1,159

+ From share-capital partners

341

2. From commercial Loan

7,932

3. From investment credit

8,427

Total

23,858

 

 

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