SOCIALIST REPUBLIC OF VIETNAM Independence Freedom - Happiness No.: 76/QĐ-TTg Hà Nội, 11 January 2016 DECISION

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1 THE PRIME MINISTER SOCIALIST REPUBLIC OF VIETNAM Independence Freedom - Happiness No.: 76/QĐ-TTg Hà Nội, 11 January 2016 DECISION APPROVING THE NATIONAL ACTION PROGRAM ON SUSTAINABLE PRODUCTION AND CONSUMPTION UP TO 2020, WITH A VISION TOWARD 2030 THE PRIME MINISTER Pursuant to the Law on Government Organization dated 16 June 2015 Pursuant to the Resolution No. 06/NQ-CP dated 07 March 2012 of the Prime Minister promulgating the action program of the Government period ; Pursuant to the Decision No. 950/QĐ-TTg dated 25 July 2012 of the Prime Minister approving action program to carry out import-export strategy for the period of , with a vision toward 2030; Pursuant to the Decision No.432/QĐ-TTg dated 12 April 2012 of the Prime Minister approving sustainable Development Strategy of Vietnam period ; Pursuant to the request of Minister of Industry and Trade DECIDES: Điều 1. Approve the national action program on sustainable production and consumption up to 2020, with a vision toward 2030 (name of the Program from now on) with the following main points: I. VIEW POINT 1. Implement sustainable production and consumption to ensure efficient and fast economic development; contribute to environmental protection, poverty reduction and economic restructuring. The sustainable production and consumption is comprehensively implemented, focused on breakthrough acts, while integrated into the existing programs. 2. Implement sustainable production and consumption towards product lifecycle approach, promote links in the different stages of product life cycle; apply, innovative technology, improve equipment and process management to utilize resources efficiently, minimize waste generation and environmental pollution; change consumer behavior in the process of procurement, usage and disposal of products.

2 3. Implement sustainable production and consumption based on mobilizing the participants and contributions of all sectors among the society, in which businesses and consumers play a central role. II. OBJECTIVES 1. General Objectives Gradually change the production and consumption model towards enhancing efficiency of natural resources and energy; increase the use of environmentally-friendly raw materials, renewable energy and products; reduce, reuse and recycle waste; maintain the sustainability of the ecosystem at all stages in the product life cycle from exploitation, supply of raw materials to production, processing, distribution, consumption and disposal of products. 2. Specific Objectives a) : - Complete mechanisms and policies to implement the sustainable production and consumption; - Increase the total number of businesses in the energy-intensive industries, at high risk of environmental pollution, constructing and implementing the roadmap aiming at technological innovation towards cleaner technologies from 60% to 70%; the share of industrial production facilities applying solutions towards cleaner production and energy saving shall be 50%; Ecoinnovation activities shall be successfully piloted in businesses, industrial parks, industrial clusters, and gradually expanding the scale and scope of application; the share of green industry, environmental industry, waste recycling in GDP shall rise from 42% to 45%; - Minimize waste generation in distribution activities. About 50% of businesses in the distribution sector should have awareness, be guided for the implementation and application of solutions for cleaner production, energy saving; decrease to about 65% in the rate of nondegradable packaging in supermarkets, commercial centers, and to about 50% in the public markets; green distribution models shall be certified; successfully develop and gradually scale up the model of sustainable supply chains, green value chains for some product groups; - Gradually raise the proportion of the environmentally-friendly products and services of key export items in Vietnam; Exporters shall be provided necessary information, guidance, support in applying management systems, environmental standards and sustainable development practices; - Consumers and the general public shall be provided with adequate information about the environmentally-friendly products, the sustainable production and consumption; Increase the proportion of environmentally-friendly products, services in the structure of public spending by the Government; Improve legal framework concerning provisions, guidance in the implementation of green public procurement;

3 - About 90% domestic scrap plastic, paper, waste oils and steel shall be recycled; 85% of urban living solid waste shall be recycled, reuse, recovered for energy or producing organic fertilizers; 75% of industrial non-hazardous solid wastes shall be recovered for re-use and recycling and 50% of constructing solid waste generated in urban areas shall be recovered for reuse or recycling. b) Implement activities to promote sustainable production and consumption comprehensively; models and practices in sustainable production and consumption shall be made more popular and widely used in the community and businesses. Basically change current production and consumption model to a more sustainable way. III. MAIN TASKS 1. Construct and improve the legal framework and policies to implement the sustainable production and consumption - Integrate content of sustainable production and consumption into the strategy, planning and national, sectoral and local development plans, sustainable development programs, social - economic development plans, environmental protection and poverty reduction; - Construct and improve policies to encourage investment in the development of production, sales and distribution of environmentally-friendly products and services; construct incentive, preferential mechanism towards consumption of environmentally-friendly products; construct and improve mechanisms coordinating and promoting public-private partnership for sustainable production and consumption; construct national indicator system to monitor and evaluate the implementation of sustainable production and consumption; - Construct and improve policies to promote green public procurement activities; issue a list of priority environmentally-friendly products and services for public procurement; - Develop international trade policy, export tax, import tariff policies for environmentallyfriendly products and services in accordance with the international integration roadmap, the bilateral and multilateral trade agreements; - Construct and improve policy frameworks to promote the activities of circulating, recycling and reuse of wastes. 2. Promote sustainable production and economic restructuring - Exploit and use natural resources sustainably; promote the alternative use of natural resources such as renewable energy resources; - Continue to implement cleaner production, energy saving and efficiency; research and apply clean and environmentally-friendly technologies; innovate technology and remove outdated

4 technologies which require a large volume of fuel consumption and pollute the environment, in accordance with the roadmap; develop human resources to meet the requirements of sustainable production activities; - Apply the product lifecycle approach by implementing eco-innovation activities in the business and industrial parks, industrial clusters in order to improve the efficiency of resource usage, waste prevention and minimization; - Develop the production of environmentally-friendly products, services; continue to promote the development of environmental industries. 3. Make the distribution system greener and develop a supply chain of environmentally-friendly products and services - Apply cleaner production, energy saving and efficiency in distribution of products and services; reduce the use of non-degradable packaging in supermarkets, commercial centers, public markets; promote the replacement of non-degradable by environmentally-friendly packaging; - Research, support the pilot implementation, advertise, scale up some environmentally-friendly products and services distribution models; construct standard systems and issue certificates of environmentally-friendly, green distribution models; - Promote sustainable links among material suppliers - manufacturers - the distributor - the consumer in the production, distribution and use of environmentally-friendly products and services; - Raise awareness of the sustainable production and consumption for those involved in the distribution system and product supply chain. 4. Improve market access and promote the export of Vietnamese key products toward sustainability - Assess market potential and the ability of Vietnamese exporters to supply environmentallyfriendly products; investigate export opportunities, participate in global value chains for Vietnamese key export products when it is labeled Vietnam green, energy-saving label and other eco-labels; - Provide support for trade promotion, market access for products labeled Vietnam green, energy-saving label and other eco-labels; - Enhance the competitiveness of key export products; improve market access and the ability to meet the provisions on the environment, sustainable development of key export products of Vietnam

5 - Guide, provide technical support for businesses in applying and certifying international standard system and standards of the importer on environment and sustainable development; construct sustainable export business model; 5. Change consumer behavior, implement sustainable lifestyle - Advertise and mobilize people for environmentally-friendly lifestyles, sustainable consumption, raise awareness for environmental protection, towards the construction of a less waste, low carbon, harmonious and environment-friendly society; - Organize information channels and promote environmentally-friendly products and services for the consumers; promote training and dissemination of knowledge, policies and legislation on sustainable production and consumption for officials, businesses and employees to improve the quality of human resources for the realization of practical activities on sustainable production and consumption; - Enhance the support to encourage social institutions to protect the interests of consumers in advertising and disseminating, training laws and knowledge on sustainable production and consumption for consumers; - Continue to implement labeling Vietnam green, energy-saving and other eco-labels; promoting evaluation activities, product certification, environmentally-friendly services; - Implement green procurement activities, prioritize activities which promote green public procurement; investigate development on the pilot basis and scale up green public procurement; - Develop and disseminate models practicing sustainable lifestyle 6. Minimize, recycle and reuse waste - Organize communication activities, raise awareness of recycling and reusing of waste to communities and businesses; - Implement comprehensive management of solid waste under the market mechanism, charge by the volume of solid waste generated; - Guide, provide technical support to implement activities of minimizing, recycling and reusing of solid waste from daily life, production and trade and services; enhance control the import of scrap; - Pilot and scale up the model of minimizing, recycling and reusing of waste in the community and businesses. IV. IMPLEMENTING SOLUTIONS

6 1. Deploy the prioritized Programs comprehensively and effectively; Integrating tasks of the Program into the program, the national and sectoral, local action plan of the country implementing sustainable development strategies and national strategies for green growth and involved programs. Details of the prioritized activities of the implemention of national action program on sustainable production and consumption shall be in the Appendix of this Decision. 2. Relevant ministries, ministerial-level agencies, Government agencies, based on their functions and tasks assigned, conduct the review, integrating content on sustainable production and consumption into the sectoral development strategies, planning and plans, while promoting the realization of the content of sustainable production and consumption in existing programs. 3. Financial support for the Program: - The Program shall be financed through the following sources: the state budget, aid, grants, investment capital from domestic and international organizations and individuals and other eligible funds; - The Ministries, branches and local authority according to the functions and tasks assigned shall be responsible for mobilizing and managing the aforementioned funding resources in accordance with the current regulations to implement the tasks of the Program; - The government prioritizes and locates adequate funds from the state budget to implement the tasks of the Program. Article2. Implementation Arrangements 1. The MoIT shall be the lead agency coordinating with concerned Ministries, agencies and local authority: - Perform the prioritized tasks and activities of the Program; - Develop and improve policies to boost investment, develop production, distribution networks and trade policies to encourage, support export products, environmentally-friendly services; - Implement the Program: innovate eco-system; develop to produce some environmentallyfriendly products and services; develop sustainable distribution system; enhance competitiveness and promote export of products in a sustainable way; develop a sustainable supply chain for beverages, textiles and footwear products; - Develop national indicators of sustainable production and consumption, guide and apply it widely; - Supervise, inspect and monitor the implementation of the Program; annually review the situation and report to the Prime Minister; conduct preliminary and final evaluation of the

7 results; efficiency of implementation of the Program and propose to the Prime Minister amendments and supplements of contents, the Program s task in case of necessity. 2. Ministry of Natural Resources and Environment, in collaboration with the Ministry of Industry and Trade and the concerned Ministries and agencies, develop and implement policies to encourage consuming preferences for environmentally-friendly products, services; policies to promote circulation, recycling and reusing of wastes; raise awareness of the sustainable production and consumption; implement an action plan for reducing, recycling and reusing waste. 3. Ministry of Finance, Ministry of Planning and Investment shall balance and allocate annual funding to implement the content of the Program s activities in accordance with the law of the state budget. 4. The Ministry of Education and Training shall coordinate with concerned ministries and agencies to integrate content of sustainable production and consumption into training Programs at all levels of education, vocational training programs, professional education. 5. Ministry of Agriculture and Rural Development, in collaboration with concerned ministries, agencies and local authority to construct and develop a sustainable supply chain for agricultural and food products. 6. People's Committees of provinces and centrally-run Cities: - Organize the Program of sustainable production and consumption actively; be responsible for the action plan and specify tasks of the Programs to be integrated into annual and 5-year local social - economic development plans. - Mobilize and allocate local funds so as to implement the objectives and tasks of the program as assigned; - Observe, supervise, monitor the implementation of the Program s assigned tasks; annually submit a report to the Ministry of Industry and Trade results for further report to the Prime Minister. Article 3. This Decision shall take effect from the signing date. Article 4. Ministers, heads of Ministerial-level agencies, Heads of Government-dependent agencies, Chairpersons of People's Committees of provinces and centrally-run cities and relevant entities/individuals shall be responsible for executing of this Decision. /. Recipients: FOR THE PRIME MINISTER DEPUTY PRIME MINISTER

8 - Central Communist Party Secretariat; - Prime Minister, Deputy Prime Ministers; - Ministries, Ministerial-level agencies, Government-dependent agencies; - People s Councils and Committees of provinces and centrallyrun cities; - Central Office and Committees of the Communist Party; - Party General Secretary Office; - State President Office; - Ethnic Minority Council and National Assembly Committees; - National Assembly Office; - People s Supreme Court; - People s Supreme Procuracy; - National Financial Monitoring Committees; - State Audit; - Central Committee of Vietnam Fatherland Front; - Central Agencies of Mass Organizations; - Social Policy Bank; - Vietnam Development Bank; - Government Office: Minister-Chairperson, Vice-Chairpersons, Prime Minister Assistant, E-Portal Manager, Departments of KTTH, KGVX; - For filling: Clerical Section, KTN (3 copies). (signed and sealed) Hoàng Trung Hải APPENDIX LIST OF PRIORITIZED ACTIVITIES OF THE NATIONAL ACTION PLAN ON SUSTAINABLE PRODUCTION AND CONSUMPTION UP TO 2020, WITH A VISION TOWARD 2030 (Issued together with Decision No. 76 / QD-TTg dated 11 January by the Prime Minister) 1. Improve legal framework, policies on sustainable production and consumption a Objectives Formulate a legal framework to encourage the participation of individuals, organizations and businesses in the investment, implementation of sustainable production and consumption b Subjects Mechanisms and policies on sustainable production and consumption c Main Content 1. Supervise and guide the Integration of sustainable production and consumption into the strategy, planning and national, sectoral and local development plans, sustainable development programs, social - economic development plans, environmental protection and poverty reduction. 2. Construct and improve policies to encourage investment in the development of production, sales and distribution of environmentally-friendly products and services 3. Construct incentive, preferential mechanism towards

9 consumption of environmentally-friendly products and services. 4. Construct and improve policies to promote green public procurement activities; issue a list of priority environmentally-friendly products and services for public procurement. 5. Supervise and propose encouraging policies to invest and develop distribution, green consuming networks; develop sustainable supply chain. 6. Develop international trade policy, export tax, import tariffs policies for environmentally-friendly products and services in accordance with international integration roadmap, the bilateral and multilateral trade agreements. 7. Investigate and improve mechanism on public and private coordination in implementing sustainable production and consumption. d 8. Construct and improve policy framework to promote the activities of circulating, recycling and reuse of wastes. Leading and Leading Agencies: Coordinating Agencies MoIT: Content no. 1, 2, 5 and 6. đ Time e Ministry of Natural Resources and Environment: Content no. 3, 7 and 8. Ministry of Finance: content no. 4. Coordinating Agency: Ministry of Planning and Investment. Funding Resources State budget, aids and other legal funds. 2. Raising awareness, capacity of implementing sustainable production and consumption a Objectives Raising awareness of community, capacity of businesses and other concerned parties in participating, implementing sustainable production and consumption b Subjects Community, Businesses and other concerned parties c Main Content 1. Implement activities to propagandize, raise awareness of

10 the sustainable production and consumption 2. Promote training and dissemination of knowledge, policies and legislation on sustainable production and consumption for officials, businesses and employees to improve the quality of human resources for the realization of practical activities on sustainable production and consumption; 3. Promote typical entities implementing sustainable production and consumption; organize contests to call for the participation of communities, businesses to promote sustainable production and consumption. 4. Integrate content of sustainable production and consumption into national training programs, vocational training and professional education at Colleges, Universities and Vocational training Schools. d 5. Disseminate and scale up models practicing sustainable production and consumption Leading and Leading Agencies: Coordinating Agencies Ministry of Natural Resources and Environment: content no. 1, 2, 3 and 5. đ Ministry of Education and Training: content no. 4. Coordinating: MoIT, Ministry of Communication and Information, Provincial People s Committees and concerned centrally-run cities. Funding Resources State Budget, Aids and other legal funds. 3. Eco-Innovation a Objectives Apply the product lifecycle approach in promoting innovative and creative activities in the business so as to improve the efficiency of resource and energy use, competitiveness and environment protection and sustainable development b Subjects Industrial manufacturing businesses, Industrial parks, and industrial clusters. c Main Content 1. Investigate, propose policies to promote eco-innovation activities in manufacturing businesses, Industrial parks, and

11 d industrial clusters. 2. Propagandize and disseminate knowledge to raise awareness and capacity of implementing eco-innovation for businesses and concerned parties. 3. Guide, provide technical support to implement ecoinnovation in manufacturing business, industrial parks, industrial clusters; construct technical guidance of ecoinnovation for specific sector/fields. 4. Support constructing and disseminating pilot project of eco-innovation in manufacturing business, industrial parks, industrial clusters. Leading and Leading Agency: MoIT Coordinating Agencies Coordinating Agencies: Ministry of Planning and Investment, Ministry of Natural Resources and Environment, Ministry of Construction, Ministry of Transportation đ Time e Funding Resources State Budget, Businesses, Aids and other legal funds. 4. Develop production of environmentally-friendly products and services a Objectives Promote production and supply environmentally-friendly products and services to satisfy sustainable consuming needs. b Subjects Businesses producing or running the field of environmentally-friendly products or services c Main Content 1. Assess the current state of development, supplying capacity and market demand for environmentally-friendly products; propose a list of environmentally-friendly prioritized products support developing investment. 2. Investigate, apply, master clean and environmentallyfriendly manufacturing technology and technology to produce environmentally-friendly products. d Leading and Coordinating 3. Construct and guide to apply particular preferential mechanism so as to attract manufacturing businesses to produce environmentally-friendly products. Leading Agency: MoIT

12 Agencies đ Time e Coordinating Agencies: Ministry of Natural Resources and Environment, Ministry of Finance and other concerned Ministries. Funding Resources State Budget, Businesses, Aids and other legal funds. 5. Develop sustainable distribution network a Objectives Make products distribution network green and develop green distribution and consuming network. b Subjects Distribution Businesses c Main Content 1. Assess current state of supplying environmentallyfriendly products; infrastructure and other activities supporting distribution of products and services. d Leading and Coordinating Agencies đ Time e 2. Support constructing and disseminating pilot models distributing environmentally-friendly products. 3. Guide, provide technical support, construct pilot model applying cleaner production, energy-saving for distribution system. 4. Construct standard system and issue certificate of environment-friendly, green distribution model Leading Agency: MoIT. Coordinating Agency: Provincial People s Committees Funding Resources State Budget, Businesses, Aids and other legal funds. 6. Develop sustainable supply a Objectives Construct and develop a sustainable linkages between businesses in the chain supplying agricultural products and food products, beverages, textiles and footwear b Subjects Businesses producing or running the field of agriculture products, beverages, textiles and footwear c Main Content 1. Investigate and assess the current status and develop a sustainable pilot supply chain for agricultural and food products, textiles and footwear. 2. Support pilot project and disseminate models of sustainable supply chain supplying products and services

13 d Leading and Coordinating Agencies for the economy. 3. Propose mechanisms, supporting policy, strengthen the linkages between material suppliers - manufacturers - the distributor - the consumers in the environmentally-friendly production and consumption. Leading Agency: MoIT: Construct and develop sustainable supply chain supplying products and services for the beverages, textiles and footwear industries. đ Time e Ministry of Agriculture and Rural Development: Construct and develop sustainable supply chain supplying products and services for the agricultural products. Funding Resources State Budget, Businesses, Aids and other legal funds. 7. Enhance competitiveness and promote exporting products towards sustainability a Objectives Enhance the competitiveness of exporter; improve market access and the ability to participate in global supply chain for Vietnamese key export products labeled eco-labels, contributing to a Vietnam sustainable exporting structure. b Subjects Exporters c Main Content 1. Assess market potential and the ability of Vietnamese exporters to supply environment-friendly products; investigate export opportunities, participate in global value chains for Vietnamese key export products when it is labeled Vietnam green, energy-saving label and other ecolabel; 2. Provide support for trade promotion, market access for products labeled Vietnam green, energy-saving label and other eco-labels. 3. Construct database, guidance on regulation, sustainable standards of targeted market. 4. Guide, provide technical support for businesses applying international standard system and standards of the importer on environment and sustainable development.

14 d Leading and Coordinating Agencies 5. Construct standard and implement certifying sustainable exporter model. Leading Agency: MoIT đ Time e Coordinating Agencies: Ministry of Agriculture and Rural Development, Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Science and Technology. Funding Resources State Budget, Businesses, Aids and other legal funds. 8. Plan of Minimizing, Recycling, Reuse waste a Objectives Promote waste management towards sustainability. b Subjects Manufacturing businesses, recycling businesses, community c Main Content 1. Guide, Implement pilot project and disseminate technology, models which practice minimize, recycle and reuse solid waste in daily activities, commercial business and production, services. d Leading and Coordinating Agencies đ Time e 2. Guide, promote the implementation of separating solid waste at source; Scale up models of separating solid waste at source among community and businesses 3. Organize communication activities, raise awareness of 3R for community and businesses. Leading Agency: Ministry of Natural Resources and Environment. Coordinating Agencies: Provincial People s Committees, Centrally-run Cities Funding Resources State Budget, Businesses, Aids and other legal funds.