Decision No. 11/2007/QD-BCN Approving the Master Plan for Industrial Development Along the Ho Chi Minh Highway to 2010, with a Vision to 2020

 

Pursuant to …;

Approving the Master Plan for Industrial Development Along the Ho Chi Minh Highway until 2010, with a Vision to 2020

MINISTER OF INDUSTRY

Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to the Prime Minister's opinion expressed in Official Letter No. 37/VPCP-CN dated January 3, 2007 of the Government Office assigning the Ministry of Industry to approve the Master Plan for Industrial Development Along the Ho Chi Minh Highway until 2010, with a Vision to 2020.

At the proposal of the Director of the Planning Department,

DECISION:

Article 1. Approving the Master Plan for Industrial Development Along the Ho Chi Minh Highway (including 116 districts, cities, and towns with a total area of 73,770 square kilometers and a population of 13.07 million people from 29 provinces and cities along the highway) until 2010, with a Vision to 2020, with the main contents as follows:²a) The development of industry along the highway must be consistent with the master plan for overall industrial development and the industrial development plan of the provinces through which the highway passes;

1. Development Orientation

b) Focus on developing industry at a high speed to serve as a driving force and core for economic and social development, development of residential areas, urban areas, etc.;

c) Develop industry based on leveraging the comparative advantages of each locality along the highway regarding natural resources, human resources, geographical location, etc., to stand firm in the context of integration;

d) Develop industry while prioritizing the protection of headwater forests, maintaining water sources, and protecting the environment;

đ) Develop industry in conjunction with safeguarding national defense security along the western and southwestern borders of the country.

2. Direction for Development

a) Focus on rapidly developing industries and sectors with comparative advantages such as hydropower, processing of agricultural, forestry, and aquatic products, mining and processing of mineral resources, production of construction materials as a driving force to promote economic and social development in each region;

b) Focus on building some large-scale industrial production facilities as cores for development in each region, such as the gas-electric-ammonia complex in Ca Mau, bauxite-alumina in Dak Nong, large cement factories in Bac Can, Thai Nguyen, Ha Tay, Hoa Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Binh Phuoc, and Tien Giang, and hydropower plants like Tuyen Quang (Tuyen Quang), Cua Dat (Thanh Hoa), Ban Ve (Nghe An), and Quang Tri (Quang Tri);

c) Synchronize and improve the quality of aquaculture and processing of aquatic products in the Mekong Delta to serve exports. Implement planning and gradually form concentrated raw material zones for industrial crops linked with processing industries and integrated with planning for residential clusters along the highway such as rubber, coffee, tea, sugarcane, cotton, and paper raw materials;

d) Emphasize the development of small-scale handicrafts, traditional craft villages, and ethnic crafts particularly in areas intersecting with east-west corridors to serve tourism and exports, provide employment for residents along the highway, and contribute to poverty reduction;

đ) Reorganize production, invest in modern equipment to enhance capacity for repair and manufacturing of small mechanical products and tools for agriculture, forestry, fisheries, and processing industries;

e) Establish some industrial parks of appropriate scale in major centers of the provinces. Develop industrial clusters, small-scale handicrafts, service centers, and multi-industry complexes in commune, town, and market centers to develop medium and small-scale processing industries, preliminary processing of raw materials, and satellite services for industrial parks; enhance mechanization capabilities in agriculture and forestry production; transport goods for agriculture and rural areas.

3. Development Goals

a) Achieve an average annual growth rate of 16-17% in industrial production value during the period 2006-2010 and 14-15% during the period 2011-2020;

b) Increase the proportion of industrial production value in the region in the total industrial production value of 29 provinces from 39.27% in 2005 to 40-41% in 2010 and 42-44% in 2020; compared to the whole country, increase from 9.2% in 2005 to 9.4-9.9% in 2010 and 9.8-11.4% in 2020.

c) Shift the industrial sector structure towards increasing the share of electricity production, construction materials, and mining. Processing industries of agricultural, forestry, and aquatic products will play a leading role, accounting for the highest proportion in the overall industrial structure;

d) Gradually increase the number of industrial workers in the 116 districts to 1.3 million to 1.4 million people by 2010 (an increase of 350 thousand to 450 thousand people compared to 2004); reaching 2.6 million to 2.7 million people by 2020 (an increase of 1.3 million to 1.4 million people compared to 2004), making a significant contribution to the shift in labor structure in the region.

4. Planning for Development of Various Industries

a) Processing Industry of Agricultural, Forestry, and Aquatic Products

Focus on developing the processing industry of agricultural, forestry, and aquatic products in areas capable of creating large raw material zones and having competitive advantages such as coffee, rubber, pepper, cashew nuts (in the Central Highlands and South Central Coast); tea, plantation wood (in the Northern region); fish, shrimp, meat, vegetables, fruits, and grains (in the Mekong Delta). Combine large-scale centralized deep processing with modern technology for export (at major centers) with medium and small-scale decentralized shallow processing serving as satellites. Develop household-scale operations following traditional trades to meet local needs and tourists.

b) Production of Construction Materials

Develop the production of common construction materials to meet local needs such as bricks, tiles, roofing sheets, construction stones, and floor tiles in almost all localities. Build some large and medium-sized cement factories as development centers in areas such as Cho Moi (Bac Can), My Duc (Ha Tay), Luong Son (Hoa Binh), Ngoc Lac (Thanh Hoa), Anh Son (Nghe An), Huong Ke (Ha Tinh), Tuyen Hoa, Dong Hoi, Quang Ninh (Quang Binh), Tan Lam (Quang Tri), Phong Dien, Dong Lam, Nam Dong (Thua Thien Hue), and some sanitary ware and ceramic tile factories in Binh Duong, Binh Phuoc, Hue, and Quang Binh.

c) Development of Small Hydropower Plants

c) Development of small hydropower projects

Development of small hydropower plants (installed capacity N<30 MW/station) in the provinces of Cao Bằng, Bac Kan, Tuyen Quang, Thanh Hoa, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Quang Nam, Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Binh Phuoc according to Decision No. 3454/QD-BCN dated October 18, 2005 of the Minister of Industry approving the Master Plan for Small Hydropower Plants nationwide.

d) Mining industry

Focus on exploiting and processing bauxite in the Dak Nong area on a large scale to serve as a driving force for industrial development and socio-economic development in the Central Highlands region.

Other metallic minerals with small and scattered scales should only be exploited and processed when there is market demand. Emphasis should be placed on investing in technology, equipment, capital, and technical human resources in mining activities to minimize resource losses and protect the ecological environment.

Exploitation and processing activities need to combine small-scale operations with industrial-scale operations based on the principle that small-scale operations provide raw inputs (ore or concentrate) for deep-processing industrial-scale operations.

The group of common construction materials (stone, gravel, clay, tiles) should be invested in exploitation at appropriate scales (mainly small) to meet local needs.

đ) Textile and footwear industry

Invest in developing the textile industry in Hue and Da Nang. The garment and footwear industries should be located in industrial zones and clusters in most provinces along the route to attract labor from local areas, serving as satellite enterprises for large textile and garment companies in northern centers (Hanoi, Nam Dinh, Hung Yen) and southern centers (Ho Chi Minh City, Binh Duong, Dong Nai, Long An).

In concentrated hubs, factories should have a scale of 1-5 million products/year; in counties and remote provinces, the scale should be smaller, from 0.5-1 million products/year.

e) Mechanical industry

Encourage all economic sectors to invest in developing the mechanical industry, particularly mechanical equipment serving agricultural modernization and rural industrialization.

Emphasize investment in upgrading equipment, enhancing manufacturing capabilities at existing facilities in central areas such as Binh Duong, Da Nang, Can Tho, and provincial capitals along the route. Encourage the development of repair mechanics to meet the needs of underdeveloped regions, remote areas.

Develop mechanical industry in industrial clusters - small and medium-sized enterprises - service centers in commune, town, and village centers, serving as satellites for industrial zones; enhance production capacity and mechanization capabilities for agriculture, forestry, and cargo transportation in rural areas.

Produce consumer mechanical equipment, equipment serving traditional craft villages, food processing, animal feed processing, and handicrafts.

g) Metallurgical industry

By 2010, based on demand, establish some tin, gold smelting facilities, and steel production from iron ore or scrap steel with medium and small scales, suitable for local natural resources, markets, and infrastructure. After 2010, invest in aluminum electrolysis projects based on the development of the Alumina Dak Nong project combined with the development of several hydroelectric power plants in the Central Highlands or Laos, Cambodia.

h) Chemical industry

Prioritize investment in high-nutrient fertilizer production; products with advantages in raw materials and meeting local needs such as light soda ash, plastic products, rubber products, pharmaceuticals...

i) Development of small and medium-sized enterprises, craft villages

Develop small and medium-sized enterprises and craft villages in urban areas, industrial zones, and densely populated areas; closely link with agriculture, forestry, and fisheries, tied to raw material sources, primarily processing agricultural, forestry, and aquatic products.

Gradually restore and develop traditional crafts serving tourism and exports. Introduce and develop new crafts in areas without existing crafts, suitable for absorption capacity, raw material sources, and markets such as rattan and bamboo weaving, high-end woodwork, handicrafts, souvenirs, wood, stone, flower, and plant carving...

5. Orientation for industrial distribution along the route

Based on natural conditions, socio-economic factors, and the impact of the route on provinces along the route, industrial development along the route will be distributed across seven regions as follows:

a) Region I (Includes 4 districts and towns of Cao Bang province, 4 districts and towns of Bac Kan province, 2 districts of Thai Nguyen province, 1 district of Tuyen Quang province, and 4 districts and towns of Phu Tho province).

Develop mining and processing industries for iron ore, lead-zinc; processing industries for agricultural and forest products (wood, paper, food, beverages...); small hydropower plants; assembly and repair mechanical industries at three centers: Cao Bang city, Bac Kan city, and Cho Moi town.

Limit the exploitation of planted timber in Dien Hoa district, Thai Nguyen province, along the route to supply the industrial area of Cho Moi and part of processing in Chu due to the forest being within the ATK (safe zone).

Create conditions for the development of mining industries for some lead-zinc and iron mines as well as forest products in the area passing through Yen Son district (Tuyen Quang province). Establish a large industrial park to develop mineral processing, wood, paper, machinery, food, and beverage industries in the southern area of Tuyen Quang city where the Ho Chi Minh Highway meets National Route 2.

Form one centralized industrial park in the city area and two industrial parks in Tam Nong district (Phu Tho province) to develop processing industries for agricultural and forest products, machinery manufacturing, textiles, and construction materials.

b) Region II (Includes 6 districts and towns of Ha Tay province and 5 districts of Hoa Binh province).

Develop high-tech industries, machinery manufacturing, electrical equipment, electronics, textiles, footwear, construction materials, and tourism-related industries such as handicrafts, souvenir production, and food and beverage processing, located in industrial parks in Xuan Mai, Luong Son, Hoa Lac High-Tech Park, and some industrial clusters near district and town centers in the northern part of the route.

Develop small-scale construction material production, mineral exploitation, and agricultural and forest product processing in the southern part of the route.

c) Region III (Includes 6 districts of Thanh Hoa province, 4 districts of Nghe An province, and 3 districts of Ha Tinh province).

Establish two industrial centers in the Lam Son area (Thanh Hoa) and Nghia Dan (Nghe An) to develop processing industries for agricultural and forestry products, production of construction materials, and rural crafts. Develop medium and small industrial clusters, small-scale industries, and rural crafts linked with raw material development areas such as rubber planting and processing, tea, resin, planted wood, and rattan weaving in townships and district centers.

d) Region IV (comprising 6 districts and towns of Quang Binh province, 7 districts of Quang Tri province, 5 districts of Thua Thien Hue province, 2 districts of Da Nang city, and 5 districts of Quang Nam province).

Establish an industrial center at the Lao Bao border gate area to develop processing industries for agricultural and forestry products, export processing for Laos, Thailand, Myanmar, and other countries through the Chan May and Da Nang seaports. Develop several small hydropower plants according to approved power plans.

đ) Region V (comprising 5 districts and towns of Kon Tum province, 3 districts and cities of Gia Lai province, 3 districts and cities of Dak Lak province, and 6 districts of Dak Nong province).

Focus on developing processing industries for agricultural and forestry products such as rubber, coffee, cotton, cashew nuts, wood, paper, exploitation and processing of bauxite-aluminum, and building hydropower plants. Develop repair and manufacturing industries for agricultural tools.

Accelerate the progress of the bauxite-aluminum mining and processing project in Dak Nong, aiming to develop it into a large-scale bauxite-aluminum complex to serve as a center for industrial development in the region.

e) Region VI (comprising 4 districts and towns of Binh Phuoc province, 4 districts and towns of Binh Duong province, 2 districts of Tay Ninh province, and 5 districts of Long An province).

Focus on developing modern factories producing high-quality, high-volume goods for export, such as food and beverage production, high-quality and high-value processing of agricultural and forestry products (wood, rubber, cashew nuts), textile and footwear, machinery manufacturing, electronics, high-grade chemical and construction materials (tiles, glass, sanitary ceramics, and construction ceramics). The main focus should be on 4 districts and towns of Binh Duong province and 2 districts of Long An province.

g) Region VII (comprising 4 districts and towns of Dong Thap province, 2 districts and cities of An Giang province, 2 districts and cities of Can Tho city, 6 districts and towns of Kien Giang province, 1 district of Bac Lieu province, and 5 districts and cities of Ca Mau province).

Develop advantageous industries such as large-scale processing of aquatic and agricultural products, foodstuffs; industries serving oil and gas exploration and processing; shipbuilding and repair, and production of consumer goods for local demand and export to Cambodia.

6. Planning for the Development of Industrial Zones and Clusters

During the period from 2006 to 2010, build 30 new industrial zones with a total area exceeding 6,348 hectares (investment capital approximately 536.4 billion VND); 59 industrial clusters with 1,110 hectares (investment capital: 57.9 billion VND).

During the period from 2011 to 2015, continue to complete the industrial zones built during the period from 2006 to 2010, and plan an additional 5 industrial zones with a total area exceeding 820 hectares; 31 industrial clusters with 1,129 hectares. The total investment capital for infrastructure in new industrial zones and clusters is 71.9 billion VND.

7. Capital Investment Requirements

The capital investment requirement for the development of industry in 29 provinces during the period from 2006 to 2010 is 270 to 280 trillion VND, and during the period from 2011 to 2020 is 1,300 to 1,400 trillion VND. For the 116 districts along the route, the investment requirement is 100 to 110 trillion VND for the period from 2006 to 2010, and 500 to 600 trillion VND for the period from 2011 to 2020.

The list of major projects along the route is attached as an appendix.

8. Industries and Fields Encouraged for Development

a) Processing industries for agricultural, forestry, and aquatic products using local raw materials;

b) Industries that employ a large number of workers in particularly difficult areas;

c) Small-scale industries and village crafts.

9. Implementation Measures and Policies for the Plan

a) Measures and policies regarding capital and investment

- Mobilize all available capital sources within the provinces along the route and neighboring provinces for investment in development.

Prioritize state budget capital and ODA funds for investment in infrastructure projects serving economic and social purposes as follows:

+ Road transportation: invest in national highways, provincial roads, and routes to the border and concentrated raw material areas.

+ Invest in water conservancy works and water supply systems for urban areas, concentrated residential areas, and industrial zones and clusters.

+ Invest in the development of science and technology and agricultural, forestry, and industrial extension services.

+ Invest in geological surveys, investigations, and supplementary evaluations of mineral resources and other underground resources.

- For particularly difficult areas, the State will provide loans up to the approved total investment amount or subsidize interest rates without regard to the economic sector for the following types of projects:

+ Projects investing in rural industrial development in particularly difficult areas;

+ Projects investing in production and processing of export goods, and processing of agricultural, forestry, and aquatic products along the route.

b) Measures and policies regarding science and technology

Encourage enterprises to innovate technology, apply new technologies, and research new products through policies such as:

- Provide funding support for small and medium-sized industrial production facilities in particularly difficult areas to register and train in management improvement according to ISO standards.

- For particularly difficult areas:

+ Provide loans from the technology innovation fund or guarantee loans;

+ Exempt import duties on raw materials and components for the first batch of new product trials and for one year of production;

+ Establish a free information system on equipment and technology for small and medium-sized enterprises;

+ Organize free training for business managers on technology management.

c) Measures for Developing Domestic Markets and Exporting

- Continue implementing Decree No. 20/1998/ND-CP dated March 31, 1998, of the Government on developing mountainous and island trade.

- Encourage businesses to enter into contracts with farmers for the purchase of agricultural products and provide financial and material services for production.

- For particularly difficult areas, create all favorable conditions for exporting products of enterprises; strengthen information and free advisory services on markets and technology; support promotion and introduction of products to facilitate trade for enterprises.

d) Investment development solutions for raw material regions

- Investors developing concentrated raw material regions according to planning shall be exempted from land rental fees for agricultural land. The State will support infrastructure construction; they may borrow preferential loans to develop large-scale production.

- Establish concentrated specialized cultivation regions and provide preferential loans to organizations and individuals for reclamation, expansion of area, and investment in large-scale production development in regions with reclamation and restoration conditions such as the Central Highlands, midland and mountainous regions.

- Establish some research centers for crop and livestock breeds and seed multiplication directly invested by the State or encouraged by other economic sectors to supply people in concentrated raw material regions along the development route.

- Prioritize budget allocation for resource exploration and survey work or provide preferential loans to enterprises for resource investigation and upgrading reserves.

đ) Industrial and small-scale industrial development incentive policies

- Land rental fees shall be calculated at the lowest rate within the framework issued by the State for particularly difficult areas; special investment projects encouraged shall be exempted from land rental fees for the maximum allowable period under the law.

Enterprises may pay land rental fees in installments depending on the region and business sector according to the preferential decision of the Provincial People's Committee and in accordance with the law.

- The State shall consider exempting corporate income tax for enterprises operating in particularly difficult areas and special investment projects encouraged under the law.

- National and local funds for promoting industry shall be used to support small and medium-sized enterprises in rural and mountainous areas to establish projects, collect market and technology information, equipment, receive consulting services, recruit and train workers for enterprises.

e) Solutions and policies for human resource training

- Encourage children of ethnic minority groups in particularly difficult areas to study in educational institutions (universities, vocational high schools, vocational training).

- Provinces shall be responsible for training labor for investment projects according to the requirements of investors at provincial vocational training facilities and support training costs at central training facilities based on the national training cost standards.

In cases where enterprises train local labor in particularly difficult areas, localities shall have supportive policies for training costs suitable to specific conditions.

Free training for entrepreneurs and enterprise staff operating in particularly difficult areas through the small and medium-sized enterprise human resource assistance program for the 2004-2008 period (Decision No. 143/2004/QĐ-TTg dated August 10, 2004 of the Prime Minister).

g) Policies to attract investment in building industrial cluster infrastructure

- Investors building industrial cluster infrastructure shall be allocated land to construct infrastructure systems such as main roads in industrial clusters, power supply systems, water supply and drainage systems, wastewater treatment plants outside factory boundaries, green spaces, public works...

- Costs for land acquisition and compensation and infrastructure construction in industrial clusters shall be balanced by the provincial budget and decided by the Provincial People's Committee. Encourage enterprises to invest in infrastructure operations and enjoy incentives under the law on investment.

h) Environmental protection solutions

- New investment projects must have thorough environmental management solutions, especially for wastewater, as stipulated by environmental laws. Encourage enterprises to invest in industrial zones and clusters to improve wastewater treatment conditions.

- Mineral extraction and processing projects shall only be granted permits if they have designs and specific environmental protection measures, including post-extraction land restoration (including small-scale mining).

- Processing projects for agricultural and forest products, especially small-scale paper production projects, chemical and fertilizer production projects must have wastewater treatment solutions. The State may support part of the investment capital for wastewater treatment through an environmental protection fund.

- Production facilities causing pollution must have a remediation plan. The State will support part of the funding and assign tasks to research institutes of ministries and sectors to transfer technology and technical solutions for treatment.

Article 2. Implementation

1. Assign the Planning Department to coordinate with the Local Industry Bureau to implement the following tasks:

a) Announce the approved planning and direct provincial industrial departments along the route to review and adjust local industrial planning to suit the specific needs of each area, while studying and proposing specific incentive policies for each special area for approval by the Provincial People's Committee;

b) Take the lead in coordinating with relevant agencies and localities to implement the planning; prioritize the allocation of national funds for promoting industry and have specific programs for particularly difficult areas along the route;

2. Request the Ministry of Planning and Investment to prioritize budget allocation for infrastructure construction in particularly difficult areas along the route to facilitate overall socio-economic development and industrial development in particular.

3. The Local Industry Bureau shall take the lead in researching and coordinating with the Ministry of Finance, the Ministry of Planning and Investment, and localities along the route to study and build financial, credit, and tax incentives to attract investment in the development of industry and small-scale industry in particularly difficult areas along the route, to be submitted to the Prime Minister for approval.

4. The Science and Technology Department shall study and develop a support program for small and medium-sized enterprises in rural and mountainous areas along the route concerning management, innovation, and the application of technological advancements to production, including enhancing awareness and management technology skills; establishing a system to provide relevant information on technology, equipment, intellectual property, and product brands to businesses in particularly difficult areas along the route; issuing mechanisms linking the research tasks of institutes and schools under the industry sector with resolving technological issues faced by small and medium-sized enterprises along the route.

5. The Local Industry Department shall take the lead in coordinating with the Ministry of Commerce to establish a free market information provision system for small and medium-sized enterprises in rural and mountainous areas along the route; studying and issuing support policies for businesses to build and promote their product brands in foreign markets and participate in the electronic trading platform of the Ministry.

6. The Local Industry Department shall take the lead in coordinating with the Ministry of Agriculture and Rural Development to conduct research, surveys, and plan the development of concentrated industrial crop and livestock zones; establishing or encouraging economic sectors to set up seed centers for crops and livestock to supply concentrated raw material regions.

7. The People's Committees of provinces along the Ho Chi Minh Route shall be responsible for directing detailed planning of industrial zones, towns, and residential clusters along the route; reviewing local regulatory documents to improve policy systems encouraging the development of small and medium-sized enterprises and industrial clusters in special and difficult areas along the route; prioritizing the allocation of local budgets to build infrastructure and promote craft villages in particularly difficult areas along the route.

Article 3. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 4. Ministries, ministerial-level agencies, government-affiliated agencies, provincial People's Committees, centrally governed cities, and related organizations and individuals shall be responsible for coordinating and implementing this Decision./.