Article 1.- To approve the Strategy on development of Vietnam's motorbike industry up to 2015, with a vision toward 2025, with the following principal contents:

1. Development viewpoints

To promote all economic sectors' resources and reorganize production along the line of specialization, cooperation and association so as to raise investment efficiency and competitiveness in the process of integration, meet the demand of the domestic market and boost export.

2. Objectives

a/ General objectives:

To build and develop Vietnam's motorbike industry into a strong one for manufacture and export of motorbikes and motorbike accessories and spare parts in the region.

b/ Specific targets:

- In the 2006-2010 period:

+ To satisfy 90% of domestic demand for motorbikes, and fully meet the demand for motorbikes of common types;

+ To domestically manufacture 90% of motorbike accessories and spare parts and 95% of motorbike engine parts;

+ To set up a system of manufacturers and suppliers of motorbike accessories who are capable of meeting the requirements on quality, prices and after-sale services; and dynamic and professional distribution and service systems.

+ By 2010, to export motorbikes of common types and motorbike accessories and spare parts equivalent to 450,000-500,000 motorbikes with an estimated export value of USD 300 million;

+ To set up R&D centers and put them into operation before 2010.

- The 2011-2015 period:

To satisfy 95% of domestic demand for motorbikes and more than 95% for accessories and spare parts; to earn an export value of about USD 500 million from motorbikes, accessories and spare parts, to improve the capacity of R&D centers in order to design motorbikes of common types and some high-class ones.

- The 2016-2025 period:

+ To concentrate efforts on accelerating the manufacture and export of motorbikes and motorbike accessories and spare parts;

+ To manufacture high-class motorbikes and special-use motorbikes in service of the domestic market and export;

+ To design and manufacture engines and motorbikes operated by clean fuel.

3. Development strategies

a/ To develop production to meet the domestic demand

To invest in and develop the domestic production of motorbikes in the direction of:

- Developing the manufacture of motorbike accessories and spare parts of increasing quality, especially engines, raw materials and auxiliary materials for the industry;

- Quickly developing support industries such as precision engineering, chemicals, rubber, plastics, electricity, electronics and new materials;

- Accelerating the research into, and design of, new products, raising the prestige and competitiveness of Vietnam-made motorbikes;

- Researching into the manufacture of high-class motorbikes and special-use motorbikes, especially those operated with clean fuel.

b/ To boost exports:

- To conduct trade promotion, seek and tap export markets, especially African, Southwestern Asian and Latin-American markets;

- To boost the export of motorbikes, accessories and spare parts of high competitiveness, meeting the consumption demand and taste of each market;

- To enhance cooperation and association in domestic production, raise competitiveness and research into motorbike designs to suit export markets;

- To actively participate in regional and global cooperation in the manufacture of motorbikes and motorbike accessories and spare parts.

c/ To develop science and technology

To mobilize all domestic scientific and technological resources in combination with raising international cooperation, in which foreign investment and technology transfer shall constitute a motive force for scientific and technological development, focusing on:

- Investment in R&D activities, boosting the designing of new products;

- Transfer of advanced and modern technologies;

- Development of domestic technologies in combination with acquisition of foreign technologies;

- Investment in product quality inspection technologies.

d/ To develop systems of suppliers and distribution and service systems

- To rearrange and reorganize production establishments on the basis of the optimum association and cooperation between enterprises in the industry;

- To set up systems of manufacturers and suppliers of motorbike accessories and spare parts of high competitiveness on the basis of association and cooperation, strive to participate in the manufacture and supply of automobile accessories and spare parts;

- To build and develop service and distribution systems;

- To renovate management work, raise production and business efficiency and develop skills of mass production in enterprises;

- To uphold the role and functions of the Bicycle and Motorbike Association, which shall act as the core in allying (domestic and foreign-invested) enterprises in Vietnam's motorbike industry.

4. Solutions and policies for the implementation of the Strategy on development of Vietnam's motorbike industry

a/ On investment orientations

- Enterprises of all economic sectors which have projects meeting all conditions prescribed in the Industry Minister's Decision No. 24/2002/QD-BCN of June 7, 2002, on criteria of enterprises engaged in motorbike manufacture and assembly, shall be allowed to invest in motorbike manufacture and assembly projects on the principle of accountability for investment efficiency;

- Motorbikes manufactured and/or assembled at home shall be subject to industrial property protection registration and quality registry in accordance with the provisions of law.

Motorbikes manufactured in Vietnam without industrial property protection registration and quality registry under legal provisions shall not be allowed for circulation registration;

- Spare parts, including imported and home-made ones, which are used for assembly of motorbikes, must be of clear and lawful origin and subject to quality registration according to the provisions of law;

- Enterprises engaged in the manufacture and assembly of motorbikes and motorbike engines must obtain the certificate of ISO 9001 (the 2000 version) quality management system for their motorbike- and motorbike engine-manufacturing and -assembling systems.

b/ On organization of production

- To accelerate cooperation and association in production between domestic and foreign-invested enterprises. To encourage all economic sectors having financial and technological capability to participate in the manufacture of motorbike accessories and spare parts in order to set up a system of suppliers of accessories and spare parts in combination with the production of automobile accessories and spare parts;

- To encourage joint venture and association so as to set up large motorbike manufacture groups of high competitiveness;

- To participate in the regional production and distribution systems.

c/ On market

- To formulate institutions for effective prevention of smuggling and trade frauds and protection of industrial property rights in the motorbike industry;

- To accelerate trade promotion, creating favorable conditions for enterprises to raise their shares in the domestic market and penetrate into the world market;

- To boost the development of sale and after-sale services;

- To adopt policies to increase demands in rural and mountainous markets by renovating and upgrading road systems; disseminating and propagating traffic rules, and developing the network of driver training and examining and granting driving licenses;

- To support the advertisement of Vietnam's motorbikes and motorbike accessories and spare parts, e.g., to organize trade fairs and exhibitions.

d/ On science and technology

- To concentrate scientific and technological funds for investment in technologies of researching and designing new products, especially R&D activities;

- To invest in modern inspection technologies so as to appraise product quality in a fast, accurate and comprehensive manner;

- To attach importance to and investment in the modernization of existing production technologies and application of new technologies for the development of the industry.

e/ On the development of human resources

- The State shall support the training of high-quality personnel in designing, production technologies and production management;

- To combine enterprises with training establishments, building a contingent of skilled technical workers who work with discipline and efficiency;

- To enhance programs on cooperation with countries having a developed motorbike industry.

f/ On finance:

- The State encourages investment in the research into and design of new products as well as R&D activities in conformity with Vietnam's commitments to international organizations;

- To adopt policies to encourage the development of support industries such as providing support for human resource training, supplying technological information, and organizing trade fairs and exhibitions;

- To adopt policies to encourage Vietnamese investors to make investment in the manufacture of motorbikes and motorbike accessories and spare parts in foreign countries.

g/ On state management

- To perfect standards and specifications on motorbikes and motorbike accessories and spare parts, and regulations on motorbike registry in line with Vietnam's conditions and international practice;

- To enhance the management of industrial property and quality registry of motorbikes;

- To formulate mechanisms to encourage investment in the development of support industries and satellite enterprises.

Article 2.- Organization of implementation

1. The Ministry of Industry shall:

a/ Perform the functions of state management over motorbike manufacture industry, and assume the prime responsibility for, and coordinate with ministries, branches and localities in, implementing this Strategy;

b/ Formulate a planning on development of Vietnam's motorbike industry up to 2015, with prospects till 2025 taken into consideration.

2. The Ministry of Industry shall coordinate with:

a/ The Ministry of Finance in studying and proposing financial mechanisms applicable to the export of motorbikes and motorbike accessories and spare parts and offshore investment in motorbike manufacture and assembly;

b/ The Ministry of Trade and concerned ministries and branches in boosting trade promotion and formulating mechanisms on the management of motorbike import and export in line with the post-2006 development period for investors to invest in production development and boost exports;

c/ The Ministry of Science and Technology, the Ministry of Transport and concerned ministries and branches in finalizing and promulgating technical standards of Vietnam's motorbikes and motorbike accessories and spare parts, and providing their use duration as well as industrial property management mechanisms applicable to motorbikes in conformity with international practice and commitments.

d/ The Ministry of Transport and concerned ministries and branches in finalizing and promulgating standards and regulations on registry of Vietnam's motorbikes in conformity with international practice and mechanisms for motorbike circulation management suitable to the post-2006 period.

e/ The Ministry of Public Security, the General Department of Customs and market control agencies in enhancing the application of measures against smuggling, trade frauds and production of fake goods in the domain of manufacture, import, export and circulation of motorbikes and motorbike spare parts.

Article 3.- This Decision shall take effect 15 days after its publication in "CONG BAO."

Article 4.- Ministries, ministerial-level agencies, government-attached agencies, provincial/municipal People's Committees and concerned organizations and individuals shall have to implement this Decision.