Decision 490/QD-TTg in 2018 approving the one-commune-one-product program for the period 2018-2020 issued by the Prime Minister

DECISION

APPROVING “ONE COMMUNE ONE PRODUCT” PROGRAM IN 2018 – 2020 PERIOD

THE PRIME MINISTER OF VIETNAM

Pursuant to the Law on Organization of Government dated June 19, 2015;

Pursuant to the Prime Minister’s Decision No. 1600/QD-TTg dated August 16, 2016 giving approval for the National target program for development of new-style rural areas in the 2016 – 2020 period;

Pursuant to the Prime Minister’s Decision No. 1760/QD-TTg dated November 10, 2017 providing amendments to the Prime Minister’s Decision No. 1600/QD-TTg dated August 16, 2016 giving approval for the National target program for development of new-style rural areas in the 2016 – 2020 period;

Pursuant to the Prime Minister’s Decision No. 414/QD-TTg dated April 04, 2017 promulgating the plan for implementation of the Resolution No. 32/2016/QH14 dated November 23, 2016 of the National Assembly on further increase of validity and effectiveness of implementation of the national target program on development of new-style rural areas associated with agricultural restructuring;

At the request of the Minister of Agriculture and Rural Development of Vietnam,

HEREBY DECIDES:

Article 1. The “One commune one product” program in 2018 – 2020 period (hereinafter referred to as “OCOP Program”) is hereby given approval. The OCOP Program includes the following primary contents:

1. Viewpoints

OCOP Program is an economic development program for rural areas with a view to increasing internal power and values; is considered solution and task for implementing the national target program for development of new-style rural areas. The OCOP Program focuses on value chain-based development of agricultural and non-agricultural products and services with advantages of each province with the primary participation by private sector entities (including enterprises and production households) and collective economic sector.

The State shall play the leading role in formulating and promulgating legal framework and policies for implementation of the Program; giving planning orientations for commodity production and service regions; managing and supervising product quality standards; giving support for provision of training and technical instructions for application of science and technology, development of brands, trade promotion, product promotion, and credit extension.

2. Objectives

a) General objectives:

- Develop production and business of various types (in which development of cooperatives, small and medium-sized enterprises (SMEs) is given priority) for producing traditional products and services with particular advantages, which are expected to meet relevant quality standards and be highly competitive in both domestic and international markets, and thus contributing to rural economic development.

- Contribute to economic restructuring, increase of income and improvement of lives of people as well as efficient implementation of “Economic and production organization” criteria included in the National criteria for new-style rural areas.

- Contribute to agricultural and rural industrialization and modernization by means of development of production in rural areas; promote rational restructuring of rural labour force (with a view to reducing the migration of workers from rural to urban areas), environmental protection and preservation of fine traditional values of Vietnam’s rural areas.

b) Specific objectives:

- Develop a synchronous OCOP Program managing system from central to local government (including provincial, district and communal governments);

- Promulgate criteria and procedures for assessment and ranking of products;

- Promulgate and synchronously implement policies for efficient implementation of the OCOP Program nationwide;

- Standardize at least 50% of existing products, equivalent to 2.400 products; strengthen and complete production organization models towards association of production households with cooperatives and enterprises;

- Develop at least 8 – 10 "culture and tourism village” models;

- Establish centers for design, creation and development of OCOP products associated with product promotion and introduction in eligible regions;

- Strengthen and reinforce all of enterprises and cooperatives participating in the OCOP Program;

- Strive to achieve the participation by at least 500 new SMEs and cooperatives in the OCOP Program;

- Develop trade and brand promotion programs for OCOP products;

- Provide professional training in production and business management for about 1.200 state managerial officials (at central, provincial and district levels) for implementing the OCOP Program and for all of executives of enterprises, cooperatives, and owners of production households that participate in the OCOP Program.

3. Scope, subjects and rules of implementation

a) Scope:

- Spatial scope: The OCOP Program will be implemented in all rural areas of Vietnam; the implementation of the Program in urban areas is also encouraged depending on actual conditions of each area.

- Temporal scope: The OCOP Program will be implemented from 2018 to 2020.

b) Subjects:

- Products: Native-owned and indigenous products and services, especially local specialties, shall be developed by means of taking comparative advantages in terms of ecological and cultural conditions, genetic resources, local intellectuals and technologies.

- Implementing entities: SMEs, cooperatives, artels, and production households that have carried out business registration.

c) Rules of implementation:

- Develop products which are expected to meet international quality standards;

- Improve quality of human resources.

4. Contents of implementation

a) Perform the following steps of the OCOP cycle:

- Disseminate information and provide instructions on OCOP;

- Receive registration of product ideas;

- Receive business plans/projects;

- Implement business plans/projects;

- Carry out assessment and ranking of products;

- Carry out trade promotion.

(Appendix I)

b) Develop products and services which are classified in the following 06 groups:

- Foods, including: fresh agricultural products and processed agricultural products.

- Beverages, including: alcoholic beverages; non-alcoholic beverages.

- Herbs, including: products made of herbal ingredients.

- Fabrics and garments, including: products made of cotton and fibre.

- Souvenirs, interior furniture and decoration articles, including: products made of wood, fibre, rattan, bamboo, metal, pottery and porcelain, textile and garment products, etc. used as souvenirs or household articles.

- Rural tourism and sales services, including: services and products serving sightseeing, tourism, convalescence, relaxation, study, research, etc.

c) Develop product management and monitoring system, including:

- Product assessment and ranking, including 05 star-based ranks:

5-star rank: High-quality products which meet international standards;

4-star rank: Standard products which may be developed to meet international standards;

3-star rank: Standard products which may be developed into 4-star ranked products;

2-star rank: Substandard products which may be developed into 3-star ranked products;

1-star rank: Poor-quality products which may be developed into 2-star ranked products.

(Appendix II)

- National database on OCOP Program.

- Inspection tasks.

- Human resource training:

Trainees: Managerial officials in charge of implementing the OCOP Program from central to local governments; executives and workers of enterprises, cooperatives, etc. participating in the OCOP Program.

Training contents: Professional knowledge about management of the OCOP Program; professional knowledge about production and business management according to training framework of the OCOP Program.

(Appendix III)

d) Trade promotion: carry out product advertising and marketing; e-commerce; organize provincial, regional, national and international OCOP product promotion events associated with tourism development, trade fairs and exhibitions of OCOP products; establish centers for design, creation and development of OCOP products (OCOP centers) associated with support for startups and design of OCOP product models, introduction and promotion of OCOP products; establish points of introduction and selling of OCOP products in tourist resorts, residential areas, supermarkets, traditional markets, administrative centers (at district, provincial, and central levels).

dd) Component projects of the OCOP Program include: project on development of OCOP product brands; project on development of culture and tourism village models; project on establishment of some national key rural production and service regions (representing some ecological – cultural areas with advantages of the country); project on establishment of centers for design, creation and development of OCOP products associated with introduction and promotion of OCOP products in important regions; component projects (projects No. 2, 3, 4) in the PPP form that are implemented with approval of competent authorities.

5. Sources and structure of funding for implementing the Program

Total estimated funding for the OCOP program is VND 45.000 billion, including:

- Funding for the OCOP Program is primarily mobilized from private sector, including: funding mobilized by enterprises, cooperatives and production households, funds borrowed from credit institutions, investment funds, Small and Medium Enterprise Development Fund, cooperative assistance and development fund, aids given by international organizations, etc.

- Funding derived from state budget includes: funding from state budget for implementation of the national target program on development of new-style rural areas in 2016 – 2020 period, funding for science and technology development, funding for industrial extension and agricultural extension, and funding for implementing other central and provincial combined programs.

6. Essential solutions and tasks

a) Disseminate information and increase awareness:

Information on the OCOP Program shall be frequently and continuously disseminated via the mass media from central to communal, village level; via opening conferences of the OCOP Program and the OCOP Program’s website, and in the forms of news, seminars or product stories associated with specific images and slogans, etc.

b) Develop OCOP Program managing system:

- At central level:

+ Steering agency: The central steering committee for national target programs.

+ Standing agency: The Ministry of Agriculture and Rural Development of Vietnam.

+ Advisory and assisting agency: The central coordination office for new-style rural area development.

+ The Ministry of Agriculture and Rural Development shall establish a central-level advisory council for OCOP Program that shall take charge of assisting provincial governments in assessing and ranking products; providing counseling on establishment of national OCOP product brands; monitoring quality of OCOP products; doing research and proposing mechanisms and policies for implementing the OCOP Program.

- At provincial level:

+ Steering agency: The provincial steering committee for national target programs.

+ Advisory and assisting agency: Provincial Department of Agriculture and Rural Development or the provincial coordination office for new-style rural area development.

+ Provincial and district-level product assessment and ranking councils shall be established according to decision of the same-level People's Committees in each annual assessment period.

- At district level:

+ Steering agency: The district-level steering committee for national target programs;

+ Advisory and assisting agency: District-level Department of Agriculture and Rural Development or District-level Economic Department.

- At commune level: Commune-level People’s Committees shall organize the implementation of the OCOP Program.

c) Mechanisms and policies:

Business entities and production households participating in the OCOP Program are entitled to apply the State’s policies on career, agricultural and rural development. Depending on actual conditions of each province, the Provincial People’s Committee shall promulgate appropriate mechanisms and policies on loan interest rate subsidies; support for application of science and technology; support for human resource training (for directors, sales executives and accountants of SMEs, owners of production households that have their business plans approved by competent authorities).

d) Science and technology, and intellectual property rights:

- Formulate and implement science and technology policies for OCOP products with a view to doing research on establishment and application of product standardization;

- Formulate and implement topics/projects on science and technology research and development, improvement and application of technologies to production and trading of OCOP products. Such topics/projects are developed based on specific demands of business entities (especially cooperatives and SMEs with specific application addresses);

- Prioritize development and application for establishment, protection and exercise of intellectual property rights for OCOP products;

- Apply managerial science to formulation of models of SMEs and cooperatives producing OCOP products in the community.

dd) Establish a consultant and partner system for implementation of the OCOP Program:

- The consultant system includes: (i) The Program managing authorities at all levels, especially district-level authorities; (ii) Individuals and juridical persons that are experienced and capable of providing comprehensive consulting for activities of the OCOP Program.

- The partner system for implementing the OCOP Program includes: Enterprises participating in product manufacturing and trading chains; institutions, universities, and scientists working in the fields/sectors of the OCOP Program in central, regional and provincial science and technology organizations; specialized business associations; product promotion organizations, banks, investment funds, central and provincial radio and television stations, and journalists.

e) Mobilization of resources:

- The major resources are those from the community. Thus, resources from the community such as capital, land, labour, raw materials, technologies, etc. should be mobilized under appropriate plans in accordance with regulations of law during the establishment of business entities in the form of capital contribution according to the annual OCOP Cycle;

- Credit resources from credit institutions shall be mobilized for supporting business entities and production households participating in the OCOP Program;

- Funding from state budget shall be allocated in an appropriate and timely manner to support investment and production activities, and service providers implementing the OCOP Program.

g) International cooperation:

- Cooperate with other countries to implement OVOP/OTOP/OCOP Programs in the world with the aims of sharing experience and exporting OCOP products as well as improving their competitiveness in international market;

- Organize field trips for learning experience of the OCOP Program in other countries (state managerial officials who directly take charge of management and administration tasks, executives of enterprises and cooperatives participating in the OCOP Program are the main participants in such trips);

- Hold OCOP International Forum every one or two years so as to improve the efficiency of the OCOP Program and mobilize international resources for implementing the OCOP Program.

Article 2. Implementation organization

1. The Ministry of Agriculture and Rural Development of Vietnam shall:

a) play the leading role in formulating and implementing the action plan for implementation of the OCOP Program for each period and on annual basis;

b) direct and instruct provincial governments to formulate and implement OCOP programs in their provinces; carry out regular inspection and assessment of implementation of OCOP programs in provinces;

c) play the leading role in consolidating and including plans for implementation of the OCOP Program of Ministries, central regulatory authorities and provincial governments in the general action plan for implementation of the national target program for development of new-style rural areas which shall be the submitted to the Ministry of Planning and Investment and the Ministry of Finance as prescribed;

d) play the leading role and cooperate with the Ministry of Planning and Investment and the Ministry of Finance in planning the allocation of funding derived from state budget for the OCOP Program under the plan for allocation of funding for the national target program for development of new-style rural areas;

dd) play the leading role and cooperate with the Ministry of Industry and Trade and relevant Ministries, regulatory authorities and units in formulating the criteria for assessment and ranking of OCOP products; organizing assessment and ranking of OCOP products associated with organization of trade fairs nationwide; mobilizing financial resources from investment funds, international organizations, and sponsors for implementing the OCOP Program; formulating training curriculums and materials for the OCOP Program; formulating and implementing some component projects of the OCOP Program;

e) play the leading role and cooperate with relevant Ministries and regulatory authorities in selecting 10 qualified provinces and cities representing economic regions to give instructions for implementing the OCOP Program;

g) play the leading role and cooperate with relevant Ministries and regulatory authorities in assessing and preparing the final report on implementation of the OCOP Program in 2018 – 2020 period, and submitting the report to and requesting the Prime Minister of Vietnam to consider giving approval for implementation of the OCOP Program in the following period.

2. The Ministry of Planning and Investment of Vietnam shall:

Appraise and consolidate plans for allocation of funding, specific norms and tasks for implementing the OCOP Program at the request of the Ministry of Agriculture and Rural Development in the annual plan which will be submitted to the Prime Minister for consideration and decision.

3. The Ministry of Finance of Vietnam shall:

Play the leading role and cooperate with the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development in balancing and allocating funding for performing contents and tasks of the OCOP Program as prescribed.

4. The Ministry of Industry and Trade of Vietnam shall:

a) cooperate with relevant Ministries and regulatory authorities in assisting business entities and households in product design; effectively performing agricultural extension activities and trade promotion for products of the OCOP Program;

b) cooperate with the Ministry of Agriculture and Rural Development and relevant Ministries and regulatory authorities in organizing annual assessment and ranking of OCOP products.

5. The Ministry of Science and Technology of Vietnam shall:

a) play the leading role and cooperate with relevant Ministries, regulatory authorities and provincial governments in assisting business entities and households in product design; promoting application of science and technology to development and production of products of the OCOP Program. Consolidate annually proposed science and technology tasks in connection with OCOP products;

b) assist provincial governments and business entities in developing, application for establishment, protection and exercise of intellectual property rights for OCOP products, and give counseling on development orientations for OCOP product brands;

c) cooperate with the Ministry of Agriculture and Rural Development and relevant Ministries and regulatory authorities in organizing annual assessment and ranking of OCOP products.

6. The Ministry of Health of Vietnam shall:

a) direct health agencies to assist business entities and production households in complying with regulations of law on food safety, and product quality registration/declaration; perform topics of scientific research, research and development, formulation of quality standards, and assessment of efficacy of products made of herbs, etc.

b) cooperate with the Ministry of Agriculture and Rural Development and relevant Ministries and regulatory authorities in organizing annual assessment and ranking of OCOP products.

7. The Ministry of Culture, Sports and Tourism of Vietnam shall:

a) assist business entities and community groups in doing research and development, promotion of tourism products and services associated with rural tourism on the basis of promoting advantages of regional famous landscapes and cultural traditions; assist provincial governments in developing culture and tourism villages;

b) cooperate with the Ministry of Agriculture and Rural Development and relevant Ministries and regulatory authorities in organizing annual assessment and ranking of OCOP products.

8. The Ministry of Transport of Vietnam shall:

Regulate and connect domestic and international transport systems for products of the OCOP Program, and cooperate in carrying out trade promotion for OCOP products on air, road and waterway transport routes.

9. The Ministry of Information and Communications of Vietnam shall:

a) direct press, radio and television broadcasting agencies to increase the number of columns and news bulletins on the OCOP Program; frequently publish news and information about collectives and individuals with outstanding achievements in implementing the OCOP Program;

b) cooperate with the Ministry of Agriculture and Rural Development and relevant Ministries and regulatory authorities in organizing annual assessment and ranking of OCOP products.

10. Relevant Ministries and regulatory authorities shall, within the ambit of their assigned functions and tasks, proactively formulate plans for performing tasks set out the Program in their responsible sectors.

11. The State Bank of Vietnam shall direct and instruct commercial banks, BIDV, Agribank, and Vietnam Bank for Social Policies to assist enterprises, cooperatives, and production households in getting production loans.

12. Central-government authority of Vietnamese Fatherland Front and socio-political organizations, Vietnam Cooperative Alliance, socio-professional organizations, and other business associations are requested to intensify dissemination of information and encourage their members to actively participate in the OCOP Program; proactively participate in value chains established from the OCOP Program.

13. Provincial People’s Committees shall:

a) based on the contents of the OCOP Program approved by the Prime Minister of Vietnam, and depending on actual conditions of each province, direct formulation, approval and implementation of provincial targeted and focused action plans for implementation of the OCOP Program, in which development of key products with specific advantages of each province and rural tourism services is prioritized;

b) allocate adequate resources, and use funding for the national target program for development of new-style rural areas in the 2016 – 2020 period, funding for agricultural extension, local-government budget, loan capital, and other lawful funding sources for implementing the OCOP Program;

c) assign tasks to provincial departments/authorities; designate provincial advisory and assisting agencies for implementing the OCOP Program;

d) frequently inspect and assess implementation results of the OCOP Program in their provinces; strictly comply with regulations on information disclosure, periodical and ad hoc reporting to the central-level standing agency for the OCOP Program.

Article 3. This Decision comes into force from the date on which it is signed.

Article 4. Ministers, heads of ministerial agencies, heads of Governmental agencies, chairpersons of provincial People’s Committees and heads of relevant agencies units are responsible for the implementation of this Decision./.

APPENDIX I

OCOP CYCLE
(Enclosed with Decision No. 490/QD-TTg dated May 07, 2018 of the Prime Minister)

The OCOP Cycle is comprised of 6 steps which are known, discussed, participated and enjoyed by the people (demands are presented from the lowest level and appropriate for demands and capacity of production households, cooperatives and enterprises).

Annual OCOP Cycle

Steps of the OCOP Cycle include: (1) Disseminate information and provide instructions on OCOP; (2) Receive registration of product ideas; (3) Implement business plans/projects; (4) Implement business plans/projects; (5) Carry out assessment and ranking of products; and (6) Carry out trade promotion.

APPENDIX II

CRITERIA FOR ASSESSMENT AND RANKING OF PRODUCTS
(Enclosed with Decision No. 490/QD-TTg dated May 07, 2018 of the Prime Minister)

All products of the OCOP Program must undergo assessment and ranking according to this set of criteria for product assessment and ranking.

1. Purposes

- Ensure development of products that meet the requirements of the OCOP Program and ensure quality of products and services of the OCOP Program.

- Provide information for business entities and production households on standards which they are required to meet in order to organize appropriate production activities.

- Be used as the basis by district and provincial-level OCOP officials for providing counseling and assistance for business entities and production households in organizing their business and production activities, and develop production and products according to the required standards.

2. Criteria for product assessment and ranking

Products are assessed and ranked according to this set of criteria established in accordance with regulations of the Law on quality of products and goods approved by the National Assembly of Vietnam in 2007, and Vietnam’s national technical regulations for each group of products subject to the OCOP Program criteria. This set of criteria is comprised of 3 parts:

- Part A: Criteria for assessment of products and community strength (35 points), including: 1) Production organization; 2) Product development; 3) Community strength.

- Part B: Criteria for product marketing assessment (25 points), including: 1) Marketing; 2) Product story.

- Part C: Criteria for assessment of quality of products (40 points), including: 1) Inspection/analysis on standards to be met by products; 2) Opportunities for products to participate in global market.

3. Ranking of OCOP products

Upon completion of assessment, OCOP products shall be ranked as follows:

- 5-star rank: 90 – 100 points: High-quality products which meet international standards; 4-star rank: 70 - 89 points: Standard products which may be developed to meet international standards; 3-star rank: 50 - 69 points: Standard products which may be developed into 4-star ranked products; 2-star rank: 30-49 points: Substandard products which may be developed into 3-star ranked products; 1-star rank: Below 30 points: Poor-quality products which may be developed into 2-star ranked products.

4. Assessment for recognition and ranking of OCOP products

OCOP products shall be assessed by district, provincial and central-level authorities in charge of product recognition and ranking tasks. Products shall be assessed and ranked annually according to the OCOP Cycle:

- District-level People's Committees shall establish product assessment councils. Product assessment councils shall hold meetings for assessing products according to the set of criteria for assessment and ranking of products of the OCOP Program. The list of products (enclosed with relevant documents) shall be prepared and submitted to Provincial People's Committees for consideration, recognition and ranking.

- Provincial People's Committees shall establish product assessment and ranking councils. Product assessment and ranking councils shall hold meetings for appraising products according to the set of criteria for assessment and ranking of products, and request the Provincial People’s Committees to issue decisions to issue certificate of recognition and ranking of product. Products granted certificate of certificate of recognition and ranking of product by Provincial People’s Committees shall be sent for assessment and ranking by central-level authorities.

- The Ministry of Agriculture and Rural Development shall play the leading role and cooperate with the Ministry of Industry and Trade, the Ministry of Science and Technology, the Ministry of Health, and the Ministry of Culture, Sports and Tourism in establishing an advisory council for implementation of the OCOP Program, and organizing assessment and ranking of products; issue decisions to issue national-level certificate of recognition and ranking of product.

APPENDIX III

TRAINING FRAMEWORK OF OCOP PROGRAM
(Enclosed with Decision No. 490/QD-TTg dated May 07, 2018 of the Prime Minister)

Part 1

Training framework for managerial officials of OCOP Program

Part 2

Training framework for business – production management for chief executive officers (CEOs) of business entities and production households participating in OCOP Program

---------------

This document is handled by Vinas Doc. Document reference purposes only. Any comments, please send to email: [email protected]