Decision No. 113/2006/QĐ-TTg Approving the Master Plan for the Development of Industry in Hanoi City until 2010

Pursuant to …;

Approving the Master Plan for Industrial Development of Hanoi City until 2010 city of Hanoi by 2010

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 PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Capital Law dated December 28, 2000;

Considering the proposal of the Minister of Industry.

Pursuant to …;

Article 1. Approves the Master Plan for Industrial Development of Hanoi City until 2010 with the following main contents:

1. Development viewpoint:

- The industrial sector of Hanoi needs to develop rapidly to enable Hanoi to play its role as a leading city in the Northern Key Economic Region. From now until 2010, industry will continue to be a key driving force for the process of industrialization and modernization of the socio-economic development of the capital, while supporting the development of localities within the region.

- Developing industry in accordance with the structural transformation of the economy of the capital towards industrialization and modernization, focusing on industries with comparative advantages such as high technology, biotechnology, new materials, and key industries of the national economy; particularly emphasizing environmental protection requirements.

- Developing industry in Hanoi based on actively attracting foreign and non-state investment. Paying attention to attracting and closely cooperating with multinational corporations to participate in international production and distribution systems.

- The development of industry in Hanoi must be consistent with the master plan for industrial development of the Northern Key Economic Region; combining and coordinating uniformly to leverage the strengths of each locality and to aggregate the strength of the region.

2. Orientation for development:

- Concentrating on developing industries that produce products with high knowledge and advanced technology content (automation technology, biotechnology, new material technology); competitive industries with brands such as electronic products (computers, office machines, industrial electronics, medical electronics, etc.), information technology, mechanical manufacturing products (machine tools and power units, automobile assembly and manufacturing, transformer assembly, etc.), food processing, pharmaceuticals, new material products... Prioritizing the development of some high-tech industrial zones in Hanoi.

- Implementing division of labor and cooperation between Hanoi City and provinces/cities in the development of regional industry, in line with the overall regional planning and the entire industry planning. Industries that require a large number of workers and have significant transportation needs will gradually shift to neighboring provinces and suburban areas. Polluting industries will be relocated to industrial zones for centralized waste treatment. Hanoi will become the research and design center, manufacturing center, trading and service supply center, and export-import hub for the region. Developing medium and small industrial zones, traditional craft villages, in line with the expanded urban planning and the overall Northern Key Economic Region.

- Encouraging the development of auxiliary industries for key industries such as machinery, electronics, etc.; strongly developing small and medium enterprises with private capital, creating a network of production satellites and export outlets for large companies.

3. Objectives

- During the period from 2006 to 2010, the annual growth rate of industrial production value will be 15-16%, and the added value will be 12-13%.

- By 2010, the export value of industrial products will account for about 80% of the total export value of the city. The average annual growth rate of industrial product export value will be 15-16%.

- By 2010, the technological level of some key industries and fields will reach advanced levels in the region; promoting access to advanced world technologies. In some fields with strengths, fundamentally renewing outdated technologies causing environmental pollution. Computerizing information systems in production, trade, scientific and technological activities, and industrial management.

- By 2010, attracting an additional 120,000 to 130,000 workers, accounting for about 30% of the additional workforce attracted to the city's economy. The scientific and technical workforce in the industrial sector will have sufficient qualifications to effectively operate and utilize advanced technologies.

- Developing sustainable industry to prevent and effectively address environmental pollution caused by industrial solid waste; forming and developing environmentally friendly industrial zones, ecological industrial zones...

The objectives for developing industry across 10 sectors (based on production value) are as follows:

Objectives for developing the 13 main industrial product groups (based on industrial production value) are as follows:

- Shift the structure of the city's industrial sector towards reducing the share of group 1 industries (mining) and increasing the share of group 2 industries (processing), particularly focusing on significantly increasing the share of processing industries by 2010.

The key industrial sectors identified are electronics and information technology; mechanical; food and beverage processing; high-end textiles; high-end construction materials and interior decoration, with the mechanical industry having the highest share, and the electronics and information technology industry seeing the fastest increase in share by 2010.

- Shift the economic component structure of the city's industrial sector towards reducing the share of state-owned enterprises from 43% in 2005 to 34-35% in 2010. Increase the share of non-state owned enterprises from 14.6% in 2005 to 16-17% in 2010. Foreign-invested enterprises' share increases from 42% in 2005 to 47-48% in 2010.

4. Orientation for Developing Key Industries

a) Electronics and Information Technology Industry

- Prioritize building the electronics and information technology industry into a key industry to create a foundation supporting the development of other industries.

- Strive to make Hanoi a national and Red River Delta center for product design, software production, electronic component and equipment manufacturing, and related services based on leveraging the potential of all economic components within the city.

- Develop the electronics industry towards enhancing efficiency in production division and cooperation. Establish modern software parks and electronics industrial parks. Encourage the production of components, accessories, and auxiliary products for assembly industries.

b) Mechanical Industry

Focus on developing the industry through strengthening joint ventures, collaborations, and cooperation between domestic companies and foreign-invested companies; investing in advanced equipment and technology to produce integrated equipment, electrical equipment, electromechanical equipment, and automation equipment serving the development of various industries, agriculture, services, and consumer markets, meeting most domestic market demands, gradually expanding into regional and global markets.

Emphasize the development of research and new product design stages, closely linking and cooperating between institutes, schools, and businesses; aligning national research programs with the development of key products. Gradually form a diverse support industry system in provinces within the region to enhance the competitiveness of the industry.

c) Food and Beverage Processing Industry

- Develop towards applying advanced technology, diversifying products, improving and enhancing product quality to meet Vietnamese and international standards, ensuring food hygiene and safety standards, satisfying consumption needs within the city and the region, while rapidly increasing export volumes.

- Continue expanding the scale of production for branded and reputable products to meet the increasingly high demand of the capital's residents and cities nationwide. Pay attention to developing traditional famous products of the capital to serve tourists. Collaborate with northern provinces to develop raw material areas and appropriately locate processing plants according to regional planning, avoiding waste and improving investment efficiency.

d) Textile and Garment Industry

Develop service centers, high-end fashion design research centers, and general agencies. The textile and garment industry mainly develops in depth, closely collaborating with provinces in the region to expand and develop production. For the textile sub-sector, focus on producing high-quality products using new and modern technologies that do not pollute the environment.

e) High-end Construction Materials and Interior Decoration Industry

Invest in applying new and advanced techniques to produce new types of materials, high-end materials, composite materials for construction and interior decoration such as lightweight materials, 3D structural panels, cladding products, ceramic and porcelain building materials; new materials utilizing nanotechnology like impact-resistant glass, anti-fog glass...

5. Industrial Development by Territory

Developing the capital's industry must be placed within the context of regional development, closely cooperating and coordinating with localities in the region, especially neighboring provinces such as Ha Tay, Ha Nam, Vinh Phuc, Bac Ninh, Hung Yen, etc. Encourage the development of heavy industry and construction materials production towards the northeast of Hanoi City along National Highway 18.

a) For industrial zones formed before the 1990s

- Accelerate the relocation of production facilities and business units with high pollution levels and unsuitable production conditions such as dyeing and printing, chemicals, tobacco... away from downtown and residential areas, combining technological innovation and investment in wastewater treatment systems to protect the environment.

- For remaining businesses, plans should be made to update technology and equipment, emphasizing clean technology applications. Renovate and upgrade technical infrastructure, particularly industrial wastewater treatment facilities.

- Re-draw specific boundaries, separating residential and public service areas from industrial production sites.

b) For newly planned and constructed concentrated industrial zones

Continue to complete the construction of infrastructure for five established industrial zones and implement the construction of the Nam Thang Long Industrial Zone. Promote selective investment in industrial zones with a focus on attracting projects in industries with high knowledge content, advanced technology, clean industry, or non-hazardous industries with large investment scales. Encourage particularly projects using advanced technology from developed countries. Do not permit projects using outdated, obsolete technology that affects the environment.

In addition to the six aforementioned concentrated industrial zones, depending on the level of occupancy and the land construction needs of investors, it may be planned to establish the Soc Son Industrial Zone with a scale of approximately 300-350 hectares.

c) Small and medium-sized industrial clusters and supporting industries.

Accelerate the progress of infrastructure construction for small and medium-sized industrial clusters that have been planned. Depending on the occupancy levels of these industrial clusters, the People's Committee of Hanoi City will consider expanding them to meet the land requirements of investors. Develop focused supporting industrial clusters for key industries, in line with the common needs of the entire region.

Article 2. Implementation

1. The People's Committee of Hanoi City

a) Shall be responsible for detailing and organizing the implementation of the Planning. Organize the dissemination of the viewpoints, orientations, objectives, and contents of the Planning to relevant departments, bureaus, municipal departments, districts, and counties, while coordinating with related central ministries and agencies to implement the Planning. Promote investment solicitation based on the Planning.

b) Shall proactively coordinate with related ministries and agencies to study and propose specific mechanisms and policies to ensure the implementation of the Planning.

c) Continue to reform organizational structures, administrative reforms, create a favorable environment to attract and encourage domestic and foreign investors. Utilize and promote the talents and resources of the capital city.

d) Vigorously carry out the restructuring and modernization of state-owned enterprises, accelerate the pace of shareholding.

đ) Coordinate with the Ministry of Science and Technology to develop a roadmap for technological innovation in the city's industries until 2010.

2. The Ministry of Industry shall take the lead, coordinate with the People's Committee of Hanoi City to direct the implementation of the Planning; submit to the Prime Minister for necessary adjustments to the Planning to ensure its alignment with the economic development requirements of the city and the country. Guide State-owned Enterprises and prioritize investments in the city and strictly comply with the urban spatial planning.

3. The Ministry of Finance shall take the lead, coordinate with the Ministry of Industry and the People's Committee of Hanoi City to base on legal regulations to study and submit to the Prime Minister for consideration and decision on specific financial policies to encourage and support the development of key industries according to the Planning.

4. Ministries: Planning and Investment, Agriculture and Rural Development, Construction, Trade, Science and Technology, Natural Resources and Environment, Transport, Finance, State Bank of Vietnam, and related agencies shall perform their coordination functions within their assigned responsibilities, handle related issues.

Article 3. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of People's Committees of provinces and cities: Hanoi, Hai Phong, Quang Ninh, Ha Tay, Hung Yen, Hai Duong, Vinh Phuc, Ha Nam, and related agencies are responsible for implementing this Decision./.