Circular No. 05/2003/TT-BKH guiding the contents, procedures for preparation, examination, and management of sector development planning projects and overall socio-economic development planning projects.

CIRCULAR
Guidelines on the content, procedures for preparation, review, and management
of industry development plans and overall socio-economic development territorial plans
overall economic and social development of the territory

Pursuant to Decree No. 61/2003/NĐ-CP dated June 6, 2003 of the Government stipulating the functions, tasks, and powers of the Ministry of Planning and Investment;

Pursuant to Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain articles of the Investment and Construction Management Regulations issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government on the issuance of the Investment and Construction Management Regulations;

The Ministry of Planning and Investment issues this Circular to provide guidelines on the content, procedures for preparation, review, and management of industry development plans and overall socio-economic development territorial plans as follows:

Part 1:
CONTENTS, PROCEDURES FOR PREPARATION, REVIEW OF INDUSTRY DEVELOPMENT PLANS
DEVELOPMENT INDUSTRY

I. CONTENTS OF INDUSTRY DEVELOPMENT PLANS

1. The following types of industries and sectors need to prepare development plans

(1) Economic infrastructure sector:

National highway network;

National railway network;

Port system;

National airport system;

Telecommunications network;

Comprehensive utilization of water resources from major river basins;

National power system.

(2) Social infrastructure sector:

Higher education and vocational training institution system;

Regional hospital and specialized medical center system;

Museum system;

National sports facility system.

(3) Important economic and technical industries, key products:

Specific lists shall be determined by the relevant industry management ministries in coordination with the Ministry of Planning and Investment for submission to the Prime Minister for decision during each planning period.

(4) Science and technology sector and environmental protection:

National research and development institutions;

High-tech zones system;

National park and nature reserve system.

(5) Other sectors:

Land use planning;

Forest planting and protection planning;

Industrial zone planning.

The above industries and sectors (from (1) to (5)) are collectively referred to as "industries."

2. Main contents of industry development plan projects include:

2.1. Main contents of industry production and key product development plans:

a) Determination of the position and role of the industry in the national economy and the development goals of the industry.

b) Analysis and forecasting of industry development factors, including comprehensive analysis and forecasting of market factors and competitiveness requirements for products and services. Analysis of competition conditions both internationally and domestically.

c) Analysis and evaluation of current industry development and distribution across regions. Analysis of industry structure, key products, investment, science and technology, labor, production organization.

d) Development of viewpoints, goals, and arguments for industry structure development plans, key products, and main conditions ensuring the implementation of planning goals (investment, technology, labor).

đ) Arguments for industry distribution plans across regions, especially for critical projects.

e) Environmental protection issues.

g) Determination of mechanism and policy solutions; proposals for implementation plans according to development stages (especially the first five years).

h) Establishment of a list of key construction projects and organization of plan implementation.

2.2. Main contents of economic infrastructure industry plans include:

a) Forecasting demand for socio-economic development; role of the industry;

b) Forecasting scientific and technological progress and infrastructure development in the region affecting national infrastructure development during the planning period;

c) Arguments for infrastructure development plans across the country and regions;

d) Arguments for priority investment solutions and project implementation;

2.3. Main contents of social infrastructure industry plans include:

a) Determination of residents' needs for social infrastructure services in each planning stage;

b) Forecasting socio-economic development levels and scientific and technological progress in the region affecting residents' needs and social infrastructure development during the planning period;

c) Arguments for social infrastructure development and distribution plans across the country and regions;

d) Arguments for priority investment solutions and project implementation;

đ) Arguments for solutions and policies to ensure that residents benefit from social infrastructure services;

II. PROCEDURES FOR PREPARING INDUSTRY DEVELOPMENT PLANS

1. Basis for preparing industry development plan projects

Based on the Party and State's economic and social development policies, the national socio-economic development strategy, the industry development strategy, and the overall socio-economic development territorial plans of large regions and key economic zones, the relevant industry management ministries organize the preparation of industry development plans.

2. Procedures for preparing and submitting industry development plan projects

Step 1: Compilation of existing research results related to the preparation of industry development plans; based on this, conduct an analysis and evaluation of development factors and conditions and their impact on industry development plans. Collect basic survey data on relevant environmental resources, and if necessary, develop supplementary survey plans.

Step 2: Analysis and evaluation of current industry development status (if there was a previous plan, the current status should be compared with the goals set out in the previous plan).

Step 3: Based on national socio-economic development strategy goals, domestic and international market factors, and resource capabilities, argue viewpoints and development goals for the industry at key years of the planning period. Argue development plans and main solutions to ensure the implementation of industry development plans. Propose a list of planned investment projects.

Step 4: Prepare a comprehensive report on the industry development plan project.

Step 5: The competent state management agency submits the plan to the authority with approval power for review and approval.

III. REVIEW AND APPROVAL OF INDUSTRY DEVELOPMENT PLAN PROJECTS

1. Content of the project planning development sector review

a) Legal basis, scientific foundation, reliability of information, data, and materials used in the planning process and the content of the plan;

b) The compatibility of the plan with the economic and social development strategy (perspectives, orientations, and development goals for each stage, comprehensive development indicators, and reasonable resource allocation schemes);

c) The consistency of regional territorial plans, sectoral plans, and construction plans (cross-referencing and checking the alignment of these types of plans according to key indicators, related factors over time and space);

d) The feasibility of the development schemes of the plan, implementation solutions of the plan, and management measures for implementing the plan (investment capital, science and technology and environment, human resources, mechanisms, policies, and operational cooperation capabilities under domestic, regional, and international market conditions when implementing the project);

2. Documentation for reviewing the project planning development sector

2.1. Documentation from the state agency responsible for preparing the plan submitted for approval and the agency organizing the review, including:

a) The proposal for approval of the plan by the authority with approval power from the agency preparing the plan;

b) The report on the plan prepared according to the prescribed content (main report accompanied by drawings at scales of 1/500,000 to 1/1,000,000 (ten sets));

c) The summary report on the plan for submission (accompanied by reduced-size maps on A3 paper (twenty-five sets));

d) Specialized reports accompanying drawings at scales of 1/500,000 to 1/1,000,000 (each specialized topic twenty-five sets);

đ) Relevant legal documents;

2.2. Documentation from the reviewing agency submitted to the authority with approval power, including:

a) The review report;

b) Documents (copies) regarding opinions of relevant ministries, agencies, localities, scientists, and experts;

c) Draft decision on approval (in case of requesting approval of the plan);

3. Approval authority and review of the planning development sector

+ The Ministry of Planning and Investment organizes the review of sector development projects and key product development plans submitted for approval by the Prime Minister. For sector plans assigned by the Prime Minister to the National Review Council, specific regulations will apply.

+ Ministries organize the review of plans within their jurisdiction.

+ The Prime Minister approves sector development projects and key product development plans reviewed by the Ministry of Planning and Investment. The Ministers of relevant ministries approve sector plans requiring planning but not within the Prime Minister's approval authority.

4. Organization of the review of the project planning development sector

+ The Minister, Head of the Sector, Chairman of the Provincial People's Committee decides on the review process and organizational structure for implementing the review of projects within their approval authority.

The review organization involves participation from relevant ministries, sectors, localities, and invited consulting organizations.

+ Relevant ministries, sectors, and localities are required to study and provide opinions on issues within their scope, functions, and responsibilities. For plans within the Prime Minister's approval authority, opinions from ministries, sectors, and localities must be sent to the Ministry of Planning and Investment within fifteen working days from receipt of the documentation and request for opinion on the plan.

+ Invited consulting organizations conduct reviews and critiques based on signed contracts with the competent authority organizing the review and are responsible for the results of their reviews.

+ The reviewing agency may request the submitting agency to explain and supplement the plan based on the opinions of ministries, localities, and participating organizations; the agency preparing and submitting the plan is responsible for providing explanations and supplements in writing.

+ The review period for sector development projects does not exceed forty-five working days from the date the reviewing agency receives complete valid documentation, excluding time for supplementation and modification of documentation.

5. Content of the approval of the project planning development sector

The approving authority bases its decision on the documentation, proposal for approval, and review report from the agency tasked with organizing the review to consider and decide on the approval of the sector development projects.

The main content of the approval decision includes:

a) Main development directions and primary objectives of the plan;

b) Major solutions to achieve the plan's objectives such as structural solutions, development directions for key industries and fields, mechanisms and policies; cooperation development orientation;

c) List of investment projects for five years and ten years (including priority investment programs and projects);

d) Spatial organization direction;

đ) Human resource training program;

e) Action program.

Part II:
GUIDELINES ON THE CONTENT AND PROCEDURE FOR PREPARING AND REVIEWING COMPREHENSIVE PLANS FOR ECONOMIC AND SOCIAL DEVELOPMENT OF TERRITORIES
MASTER PLAN FOR THE OVERALL ECONOMIC AND SOCIAL DEVELOPMENT OF THE TERRITORY I. CONTENT OF THE COMPREHENSIVE PLAN FOR ECONOMIC AND SOCIAL DEVELOPMENT OF TERRITORIES

1. Types of comprehensive plans for economic and social development of territories

Comprehensive national economic and social development plan.

Comprehensive development plan for economic and social regions (Economic-Social Regions, Economic Key Regions, and special territories (collectively referred to as comprehensive regional economic and social development plans).

Comprehensive provincial economic and social development plan (collectively referred to as comprehensive provincial economic and social development plans).

Comprehensive town, district, and county economic and social development plan (collectively referred to as comprehensive county-level economic and social development plans).

2. Sector development plans and comprehensive territorial economic and social development plans are closely related. National sector development plans precede territorial comprehensive economic and social development plans and serve as a basis for them.

3. Content of the comprehensive regional economic and social development plan

3.1. Analysis, evaluation, and forecasting of regional development factors.

- Geographic location, territorial relationships, and potential for utilizing these factors for development planning.

- Requirements and position of the region in the national economic and social development strategy.

- Requirements and position of the planning region in the national economic and social development strategy.

- Analyze and evaluate natural conditions, natural resources, and forecast their exploitation potential; comparative advantages as well as limitations of the region.

- Inventory and assess population development and distribution in relation to socio-economic development requirements and cultural values serving development.

- Analyze and assess the level of economic infrastructure and social infrastructure in meeting development requirements.

- Analyze and assess the current socio-economic development status of the region.

3.2. Determine the position and role of the region in the national economy, thereby substantiate the objectives and development viewpoints of the region.

- Substantiate the determination of driving forces and the relationship between the region and external regions and the country to define the scope and main objectives of the region appropriately.

- Select economic targets: GDP growth, total GDP, export value, and the contribution ratio of the region to the country, GDP per capita, labor productivity, and the competitiveness of sectors and products with comparative advantages domestically and regionally.

- Determine social targets: increase employment opportunities, reduce poverty, vocational training, healthcare services, cultural and sports development, and reduce social evils.

- Determine environmental impacts: minimize environmental pollution, build a sustainable development environment.

3.3. Select the economic structure, directions for developing industries, key products, and investment structure (including priority programs and projects for the first five years and the planning period).

3.4. Select options for developing infrastructure structures.

- Select options for developing transportation networks.

- Select options for developing power sources and transmission networks.

- Select options for developing water conservancy works, water supply systems, and environmental protection.

- Select options for developing major social infrastructure (hospitals, specialized medical facilities, universities and colleges, vocational training centers; regional scientific research and technology bases).

3.5. Select options for developing urban systems and residential areas within the region.

3.6. Substantiate implementation solutions for the master plan.

- Solutions for mobilizing investment capital.

- Solutions for human resource training.

- Solutions for science and technology.

- Solutions for mechanisms and policies.

- Solutions for organizational implementation.

4. Content of the comprehensive socio-economic development master plan for the province.

In addition to the contents mentioned in the comprehensive socio-economic development master plan for the region, the contents of the comprehensive socio-economic development master plan for the province need to be more specific.

4.1. When analyzing and forecasting development factors and conditions, it is necessary to focus on market factors and determine comparative advantages compared to other provinces and consider international competition.

4.2. In the part determining the position and role of the province relative to neighboring provinces, large regions, and the entire country, it is necessary to clarify:

- The contribution level of the province to the GDP and the GDP growth rate of the large region as well as the entire country.

- The role of the province in developing important products and exports for the national economy.

4.3. For the content of organizing socio-economic activities within the province, it is necessary to conduct in-depth research:

- Developing urban systems and rural residential areas.

- Developing industrial zones, special economic zones, and trade economic zones.

- Developing commodity crop and livestock production areas.

- Developing education and training networks (including vocational training), health systems, and healthcare services.

- Developing difficult areas linked to population stabilization, poverty reduction.

4.4. When building solutions, mechanisms, and policies to implement the comprehensive socio-economic development master plan for the province, it is particularly necessary to clarify: key investment programs and projects; environmental protection measures, and the organization of the master plan implementation.

5. Content of the comprehensive socio-economic development master plan for the district.

In addition to the contents mentioned in the comprehensive socio-economic development master plan for the province, the content of the comprehensive socio-economic development master plan for the district needs to further specify the construction of residential area systems, land use planning, job creation solutions, forming investment programs, and compiling lists of key investment projects for each development stage.

II. PROCEDURE FOR ESTABLISHING THE COMPREHENSIVE SOCIO-ECONOMIC DEVELOPMENT MASTER PLAN FOR THE TERRITORY

1. Basis for establishing the comprehensive socio-economic development master plan for the territory.

- National socio-economic development strategy.

- Party and Government's socio-economic development policies.

- Sectoral and key product development master plans at the national level.

- Comprehensive socio-economic development master plan for large regions as the basis for the comprehensive socio-economic development master plan for the province; the comprehensive socio-economic development master plan for the province as the basis for establishing the comprehensive socio-economic development master plan for the district.

2. Procedure for establishing the comprehensive socio-economic development master plan for the territory.

- Step 1: Assess the impact (or influence) of the national socio-economic development strategy and the impact of the region on the comprehensive socio-economic development master plan for the territory. Evaluate and forecast development factors and resources.

- Step 2: Determine the role of the planned territory in the country and in the larger territory it is part of.

- Step 3: Determine objectives, development options, and socio-economic organization according to the territory (as outlined in points 2, 3, and 4 of Part II). Simultaneously, substantiate the main implementation solutions and conditions to ensure the realization of the comprehensive socio-economic development master plan according to selected options.

III. REVIEW AND APPROVAL OF THE COMPREHENSIVE SOCIO-ECONOMIC DEVELOPMENT MASTER PLAN FOR THE TERRITORY

1. Review content.

1.1. For comprehensive socio-economic development master plans for regions.

- Review the reliability and legal basis of the documents and data used in the planning.

- Review the consistency between the comprehensive socio-economic development master plan for the region and the national socio-economic development strategy regarding economic growth targets, economic structure orientation, and key products, as well as cross-regional and cross-sector issues.

- Review the rationality of resource utilization:

+ Land, water, mineral resources, labor.

- Reviewing the feasibility of the plan:

+ Reviewing the direction for developing the urban system and the important infrastructure structure.

+ Reviewing the calculations regarding the conditions to ensure the achievement of planning objectives.

+ Reviewing environmental protection measures.

- Reviewing the consistency between regional planning and provincial planning, sectoral planning, and construction planning.

1.2. For comprehensive development planning projects of the socio-economic sector of the province.

- Review the reliability and legal basis of the documents and data used in the planning.

- Reviewing the degree of compatibility of the comprehensive socio-economic development planning of the province with the national socio-economic development strategy, with the regional socio-economic development strategy and overall planning, and with industry development planning. Specifically on: GDP growth rate, list of key products, export value and growth rate, GDP per capita, job creation and labor structure transformation, unemployment reduction, poverty alleviation, education普及率，人口增长率，受过培训的劳动力比例和环境污染减少程度。评估上述指标的可行性。

- Reviewing the economic structure and its degree of compatibility with the requirements of industrialization and modernization, specifically on:

+ Economic structure by sector.

+ Economic structure by component.

- Reviewing the direction for developing sectors:

+ Industrial sector group.

+ Agriculture, forestry, and fisheries sector group.

+ Service and social sector group.

- Reviewing the territorial organization direction to ensure long-term development requirements and economic and national defense development requirements.

- Reviewing the conditions to ensure the implementation of planning objectives (mechanism, policy, capital, labor).

1.3. For comprehensive development planning projects of the socio-economic sector of the district.

- Reviewing the compatibility of the comprehensive socio-economic development planning of the district with the provincial socio-economic development planning in terms of economic growth rate, key products, social goals, and environmental protection.

- Reviewing the direction for developing urban areas and infrastructure.

1.4. For comprehensive adjustment planning projects of the socio-economic sector of the territory.

The contents reviewed for comprehensive adjustment planning projects of the socio-economic sector of the territory include:

- Reviewing the adjustment objectives.

- Reviewing the economic structure, sector development direction, and important products that have been adjusted.

- Reviewing the conditions to ensure the implementation of the adjustment planning objectives.

2. Documentation for reviewing comprehensive socio-economic development planning of the territory

2.1. The documentation of the state agency responsible for planning submitted to the approving authority and the reviewing agency includes:

a) The application for approval of the planning from the competent authority to approve the planning;

b) The main report on the planning prepared according to the prescribed content (accompanied by drawings and maps (10 sets));

c) Special reports accompanied by reduced-size maps (A3 size) (one set per topic);

d) Summary report on the planning for review (accompanied by A3 size map, 25 sets);

đ) Relevant legal documents;

2.2. The documentation of the reviewing agency submitted to the approving authority includes:

a) The review report;

b) Documents (copies) regarding opinions of relevant ministries, agencies, localities, scientists, and experts;

c) Draft decision on approval.

3. Authority for reviewing and approving comprehensive socio-economic development planning of the territory

3.1. Authority for approving comprehensive socio-economic development planning of the territory.

- The Prime Minister approves comprehensive socio-economic development planning for regions, key economic zones, provinces, centrally governed cities, and special territories.

- The Chairman of the Provincial People's Committee approves comprehensive socio-economic development planning for districts.

- The Chairman of the District People's Committee approves planning within their jurisdiction.

3.2. Authority for organizing the review of comprehensive socio-economic development planning projects of the territory.

- The State Investment Planning Agency reviews comprehensive socio-economic development planning projects of the territory organized by the Ministry of Planning and Investment and other planning projects assigned by the Prime Minister, which fall under the Prime Minister's approval authority.

- The Ministry of Planning and Investment organizes the review of planning projects organized by provincial and centrally governed city people's committees and submitted to the Prime Minister for approval.

- Provincial and centrally governed city people's committees organize the review of planning projects organized by district people's committees.

- District people's committees organize the review of planning projects within their jurisdiction.

4. Organization of reviewing comprehensive socio-economic development planning of the territory

During the review process, the competent state agency invites relevant ministries, localities, consulting organizations, and scientists to participate in the review based on contracts with the reviewing agency and assumes responsibility for the review results.

The reviewing agency may request the planning submission agency to explain and supplement the planning based on the opinions of ministries, localities, and participating organizations; the planning preparation and submission agencies are responsible for providing explanations and supplements in writing.

The review time for comprehensive socio-economic development planning projects of the territory shall not exceed 45 working days from the date the reviewing agency receives complete valid documentation, excluding the time for supplementary and revised documentation.

5. Content of approval for comprehensive socio-economic development planning of the territory

The competent authority for approving comprehensive socio-economic development planning of the territory bases on the documentation, application for approval, and the review report of the designated reviewing agency to consider and decide on the approval of the planning.

The main content of the decision includes:

a) Main development orientation and major goals of the planning;

b) Major solutions to achieve the plan's objectives such as structural solutions, development directions for key industries and fields, mechanisms and policies; cooperation development orientation;

c) List of investment projects for five years and ten years (including priority investment programs and projects);

d) Spatial organization direction;

đ) Human resource training program;

e) Action program.

Part 3:
 STATE MANAGEMENT OF PLANNING WORK

1. Contents of state management of planning work include:

+ The State uniformly manages planning for the development of industries, key products, and comprehensive socio-economic development planning of the territory.

+ Central Ministries and Departments are responsible for guiding the establishment, review, and approval of planning in accordance with regulations; researching and issuing standards related to planning costs and management.

+ Planning management agencies are responsible for inspecting, supervising, and auditing the implementation of planning; considering and recommending authorities at all levels to adjust planning in a timely manner.

||| Investment programs and projects must be carried out according to approved planning schemes; in cases where there is no approved planning scheme, opinions must be sought and approval obtained from the competent authority responsible for approving the planning scheme based on the hierarchical level.

2. Responsibilities for organizing the establishment and adjustment of planning projects

2.1. For industry development planning.

Ministries managing industries are responsible for establishing and adjusting industry planning schemes within their functions. To ensure consistency in overall socio-economic development planning and industry development planning nationwide, close coordination between the industry management ministry, the Ministry of Planning and Investment, and relevant localities is necessary during the process of establishing and adjusting planning projects.

2.2. For overall socio-economic development planning of territories

- The Ministry of Planning and Investment is responsible for establishing and adjusting comprehensive planning projects for socio-economic regions, key economic zones, and special territories.

- Provincial People's Committees are responsible for establishing and adjusting comprehensive socio-economic development planning at the provincial level.

- District People's Committees are responsible for establishing and adjusting comprehensive socio-economic development planning at the district level.

2.3. Regarding the adjustment of planning.

- According to a five-year cycle or when required, state agencies will promptly adjust planning schemes according to their functions.

- The authority that decides to approve the planning scheme will decide on the adjustment of the planning scheme.

3. Publicizing planning schemes

Organizations shall seek public opinion during the planning process. Once the planning scheme has been approved, the state management agency must widely publicize it through mass media so that the people can implement and monitor the implementation of the planning scheme (except for those requiring confidentiality).

4. Inspection, supervision, and auditing of the implementation of planning projects

The Ministry of Planning and Investment and ministries managing industries are responsible for inspecting, supervising, and auditing the implementation of industry development planning schemes and territorial planning schemes approved by the Prime Minister and reporting to the Prime Minister.

Provincial People's Councils and People's Committees directly under the central government are responsible for inspecting, supervising, and auditing the implementation of development planning schemes (including those approved by the Prime Minister, those approved by sectors and localities) and reporting to the Ministry of Planning and Investment for consolidation and reporting to the Prime Minister or reporting directly to the Prime Minister.

District People's Councils and People's Committees are responsible for inspecting, supervising, and auditing the implementation of development planning schemes within their jurisdiction and reporting to the Provincial People's Committee for consolidation and reporting to the Ministry of Planning and Investment.

5. Capital for planning projects

- Comprehensive socio-economic development planning schemes and leading product development planning schemes approved by the Prime Minister are funded from the State budget as recorded in the annual plan.

- For socio-economic development planning schemes, industry development planning schemes, and leading product development planning schemes before the formal cost framework is established, the temporary cost framework for planning construction set forth in Decision No. 519/2002/QĐ-BKH dated August 26, 2002, issued by the Minister of Planning and Investment shall apply.

- Capital for planning includes costs for establishing and reviewing planning schemes. Capital for national planning, regional territory planning, industry planning, and important urban construction planning is balanced from the central government budget. Planning schemes for provinces, districts, and rural residential areas are funded from the local state budget. The Ministry of Planning and Investment and the Ministry of Finance are responsible for annually balancing capital for national planning, regional territory planning, industry planning, and urban construction planning, and guiding sector management ministries and localities to organize implementation. When necessary, foreign aid and international organization funding may be solicited.

Part 4:
IMPLEMENTING PROVISIONS

1. This Circular takes effect fifteen days after its publication in the Official Gazette.

2. During the implementation of this Circular, if any issues require discussion, ministries, sectors, provinces, and centrally governed cities shall directly contact and discuss with the Ministry of Planning and Investment./.