Decision No. 148/2004/QĐ-TTg On Main Directions for the Development of the Central Key Economic Region to 2010 and Vision to 2020

DECISION OF THE PRIME MINISTER

On the main directions for economic and social developmentof the central key economic region

from 2006 to 2010and vision until 2020

______________________

PRIME MINISTER

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

Pursuant to the proposal of the Minister of Planning and Investment in Circular No. 7349/BKH-CLPT dated December 1, 2003,

DECISION:

Article 1. Approves the main directions for economic and social development of the central key economic region (KKT) from 2006 to 2010 and vision until 2020 for implementation in five provinces and centrally governed cities, including Da Nang, Thua Thien Hue, Quang Nam, Quang Ngai, and Binh Dinh, with the aim of leveraging the potential, geographical location, and comparative advantages of the region, gradually developing the central KKT into one of the most dynamic regions in the country, ensuring its role as a growth core and promoting development in the Central and Western Highlands region.

Article 2. Main development objectives.

1. The average annual GDP growth rate during the period 2006-2010 will reach about 1.2 times, and during the period 2011-2020 will reach about 1.25 times the national average growth rate. Increase the contribution ratio of the region in the national GDP from the current 5% to approximately 5.5% in 2010 and 6.5% in 2020.

2. Increase the average export value per capita per year from 149 US dollars in 2005 to 375 US dollars in 2010 and 2,530 US dollars in 2020.

3. Increase the contribution ratio of the region in the national budget revenue from 4.6% in 2005 to 6% in 2010 and 7% in 2020.

4. Accelerate the pace of technological innovation at an average rate of 20% per year in the modernization process, gradually increasing the proportion of trained labor to about 50% by 2010.

5. Strive to achieve a rate of urbanization in the central KKT of 40% by 2010. Reduce and maintain the unemployment rate below 5%, and continue to control it under the safe level allowed, which is 4%, by 2020, striving to create more than 60,000 to 70,000 new jobs each year.

6. Reduce the poverty rate from 15.5% in 2005 to below 8.8% in 2010 and approximately 2% in 2020.

7. Ensure political security, social order, and sustainable environmental conditions in both urban and rural areas.

Article 3. Tasks and main solutions to promote the development of key industries and fields.

1. New breakthrough tasks.

Accelerate the pace of investment in constructing the open economic zones of Chu Lai (Quang Nam province), Dung Quat (Quang Ngai province), and the economic-commercial development encouragement zone of Chan May (Thua Thien Hue province), planning the construction of the Nhon Hoi economic zone (Binh Dinh province) so that after 2010, these economic zones gradually become nuclei and centers of development in the region.

Strengthen the role of the central trading, service, and international transaction hub of Da Nang city, Hue city, and Qui Nhon city to assume the functions of trade, services, and transactions, and tourism center for the entire Central and Western Highlands region.

Form tourism centers such as Hue, Da Nang, Qui Nhon, and surrounding areas of the Central and Western Highlands.

Complete the construction of major infrastructure projects to connect this area with adjacent regions, contributing to implementing the East-West Corridor program of the expanded Mekong sub-region, linked with the task of developing the border triangle of Vietnam-Laos-Cambodia; among which, Da Nang plays the role of the central point of the region. Complete the construction of the Hai Van tunnel and the western bypass road through Hue city; complete the Da Nang-Chu Lai-Quang Ngai expressway and the Da Nang-Hue-Quang Tri expressway (part of the North-South expressway) before 2007.

Form a high-quality multi-disciplinary training center in Hue.

For Da Nang city: Gradually invest in building and developing Da Nang city into a coastal city - the center of the Central region with a population of about 1 million people by 2010 and nearly 2 million people by 2020, with basic tasks such as: industrial, commercial, tourism, and service center of the Central region; port city, important transportation hub (seaport, international airport, trans-Vietnam, trans-Asia transportation for international transit and transport in the Central and Western Highlands and countries in the Mekong River region); build an industrial research and development zone (improving technology and industry for industrial enterprises), financial, banking, securities, and telecommunications center of the Central region; one of the cultural, educational, and training centers, scientific and technological centers of the Central region; one of the important areas in terms of security and defense in the Central and Western Highlands and the whole country.

In addition to Da Nang, other cities should be developed, such as building Hue into a festival city, Qui Nhon into a southern regional center, and the cities of Hoi An, Tam Ky, and Quang Ngai towards forming modern, civilized urban centers.

For the open economic zone of Chu Lai (Quang Nam province): Build and develop the open economic zone of Chu Lai to test new systems and policies, create an investment environment suitable for international practices for various types of business operations of domestic and foreign economic organizations, thereby gaining experience for international and regional economic integration.

Apply new models of driving force for economic development, overcome weaknesses and bottlenecks in current economic management policies and mechanisms while not having the conditions to implement nationwide.

Develop the open economic zone of Chu Lai according to the "zone within a zone" model, mainly including: Free Trade Zone connected with part of the Ky Ha Port. Activities in this zone include production of export goods and local services, commodity trade, service activities, trade promotion; industrial zones; special entertainment areas, areas dedicated to tourism; administrative residential areas.

For the Dung Quat economic zone (Quang Ngai province): Planned on an area of 10,300 hectares, ensuring effective operation of the oil refinery complex, completing basic infrastructure components.

Promote the formation and development of economic zones as a driving force to advance industrialization and modernization in Central Vietnam and throughout the country. Build and develop the Dung Quat Economic Zone into a multi-sector comprehensive economic zone with long-term preferential policies, encouraging domestic and foreign investors to invest capital in production and business within the current legal framework and continuously improving it. Develop oil refining, petrochemicals, and chemical industries. Gradually develop mechanical industries, shipbuilding and repair, steel rolling and production, cement production, container manufacturing, consumer goods production. Attract investment and businesses to operate and produce in the Binh Chanh and Binh Dong industrial parks. Accelerate construction projects in the Dung Quat Port project with ten oil and gas berths, a general port area, wave barriers, sand barriers. Develop inter-zone and inter-regional transportation systems to enhance the role of the Dung Quat Port. Organize land clearance, reorganize residential areas, and resettlement areas. Focus on large-scale water conservancy projects such as reservoirs supplying water for the Dung Quat Industrial Zone. Construct commercial centers and develop tourism. Develop social and public sectors: build a 300-bed hospital. Complete a vocational training school for 1,000 students per year. Construct kindergartens, nurseries, primary schools, and secondary schools in Van Tuong. Build cultural and sports facilities. Form and develop the Van Tuong and Doc So urban areas. Construct the Van Tuong urban area with a population of 120,000 people, serving as an industrial, service, and tourist city. The Doc So urban area will play a supporting role for the western industrial cluster and serve as one of the key transportation nodes (road, railway to the port and oil refinery).

For the economic-commercial encouragement zone of Chan May (Thua Thien Hue province); in the short term, focus on developing the Chan May commercial area covering approximately 1,000 hectares, linked with the development of the Chan May Port according to the Prime Minister's Decision on the economic-commercial encouragement zone. During the period from 2006 to 2010, construct an international information center along with a system of services including trade, tourism, finance, banking, and other professions at a high level of commercial civilization. Gradually develop the Chan May Industrial Park and the new city of Chan May.

The Nhon Hoi Comprehensive Economic Zone (Binh Dinh province): in the Field of Teachers and Educational Institution Managers covering approximately 10,000 hectares, independent from the mainland, will in the future develop into the Nhon Hoi Comprehensive Economic Zone, adding momentum as a core driver for the economic and social development of the Central Economic Zone. The construction area covers about 5,000 hectares, planned as follows: a concentrated industrial park covering about 1,000 hectares with industries such as agricultural, forestry, and seafood processing, construction materials, new and repaired shipbuilding, petrochemicals, electronics and electrical materials, textile, leather, export-oriented garment industry, and general storage and transfer facilities. A new urban area of Nhon Hoi with an area of about 500 hectares, expected to have a population of about 80,000 people by 2010. This new urban area will be built following a modern coastal city model. A deep-water port and port service facilities covering about 450 hectares. A Nhon Hoi Tourism Area covering about 500 hectares. The remaining area will be used to construct infrastructure projects to support the development of the comprehensive economic zone.

2. Regarding the adjustment of planning.

a) On industry.

Shift the industrial product structure towards forming leading processed products: oil refining and petrochemicals; seafood processing; mechanical and electronic industries; consumer goods industry, construction materials industry... with advanced technology, high productivity, and quality ensuring competitive product capabilities... Develop supporting industries to increase the national value in strong products in the region. From now until 2010, focus on completing and effectively exploiting industrial parks that are being developed with a total area of approximately 2,200 hectares.

b) On tourism and other services.

Strengthen investment and promotion to develop tourism. Leverage natural conditions, ecology, historical, and cultural advantages to develop tourism into one of the main economic sectors. Quickly form integrated entertainment and sports beach tourism areas such as Canh Duong - Hai Van - Non Nuoc as key points for regional tourism development, contributing to forming a major service center in the region and nationwide. Coordinate among provinces in the region to form a network of tourism spaces in the Central and national tourism regions, linking regional tourism with East-West corridors and nationwide routes.

Enhance the role of international trading centers in Da Nang, Hue, Qui Nhon to undertake the function of providing commercial services for the Central and Western Highlands regions and serve as gateways for the development of the East-West corridor.

Develop high-quality services such as finance, banking, insurance, healthcare, education... to make the Central Economic Zone one of the major service centers in the country and internationally.

c) On agriculture, forestry, and aquaculture.

Continue to promote the transformation of the agricultural and aquaculture structures towards enhancing disaster prevention capabilities, sustainable agricultural development, and combining agriculture with forestry hill gardens to create landscapes and environments for tourism.

Adjust crop and livestock structures to suit natural conditions and topography to improve efficiency per unit area of cultivation and enhance the competitiveness of agricultural products.

Review planning and reasonably exploit land and groundwater resources in establishing aquaculture areas on coastal sandy lands to ensure sustainable production development while protecting the environment. Increase offshore fishing capacity and develop aquaculture in areas suitable for production needs, living requirements, and exports.

d) Develop infrastructure.

Promote investment in infrastructure towards forming a framework for infrastructure to develop socio-economic activities, promptly completing construction of road projects, seaports.

Road transport, ensuring smooth and convenient operation under all circumstances, connecting the Central Coast Economic Zone with other regions and localities nationwide, among provinces within the zone; roads linking seaports, airports, coastal towns with western districts and the Ho Chi Minh Highway. Ensure road connectivity between the Central Coast Economic Zone and neighboring countries in the Greater Mekong Subregion (GMS) development program.

Upgrade Route 19 and cross routes from Route 19 connecting industrial zones, agricultural areas, and service zones. In the short term, renovate and upgrade the section from Km 5 + 500 to Km 11 (Ông Thọ intersection - Tuy Phước town) to Class III road standard. Complete construction of the cross route from the Ho Chi Minh Highway down to National Route 1A, through Tra My (Quang Nam), down to Tam Ky and through Tra Bong (Quang Ngai) to Dung Quat Economic Zone before 2007. Complete construction of the coastal road from Da Nang through Hoi An, Chu Lai Open Economic Zone, Dung Quat Economic Zone to Sa Huynh (Quang Ngai) before 2010 to promote socio-economic development along the coast, while enhancing national defense and security, and improving people's living standards. Complete the Hai Van Tunnel project in 2005 and complete the road network before 2007. Continue building rural road networks connecting counties, communes, and hamlets using various sources of budget funds combined with mobilization from the public. Strive to achieve 100% of counties having concrete-paved roads reaching county centers by 2005; 100% of mountainous communes having car-accessible roads to commune centers by 2008.

Railways: Upgrade and relocate sections of the Thong Nhat railway running through towns and cities outside parallel to roads. Construct overpasses and pedestrian bridges at sections where roads intersect railways. Invest in modernizing railway stations in the area. Invest in dedicated railway lines connecting seaports with the national railway system.

Seaports: Develop the seaport system together with other infrastructure in the Central Coast Economic Zone. Renovate and upgrade the Thien Sa Port, increasing its capacity to 4 million tons/year by 2010. From now until 2010, construct the new deep-water port of Lien Chieu (Phase I) with a capacity of 2 million tons/year, and continue Phase II to increase capacity to 8.5 million tons/year for subsequent periods. Accelerate the construction progress of the Dung Quat, Ky Ha, and Qui Nhon ports to start large-scale operations in 2005, which is a crucial condition to ensure the development of the Dung Quat Economic Zone, Chu Lai Open Economic Zone, and Nhon Hoi Economic Zone. The current capacity of the Qui Nhon Port (Binh Dinh) is over 2.5 million tons. It is expected that by 2010, additional berths will be added to ensure a throughput of about 4 million tons/year. Strive to complete the construction of these ports by 2010 to support the strong development of economic zones in the next phase. Continue constructing and completing the Cham May and Qui Nhon ports to successfully develop the Cham May Trade Promotion Zone and the Nhon Hoi Economic Zone, which are important driving forces for socio-economic development in Thua Thien Hue, Binh Dinh, and the entire region.

- Airports: Invest in restoring and upgrading Chu Lai Airport Phase I to serve approximately 0.5 million passengers and 500 tons of cargo/year, meeting the trade needs for the development of the Chu Lai Open Economic Zone and Dung Quat Economic Zone. In the long term, aim to build it into an international transit airport for the region and the area. Continue investing in building, upgrading, and expanding Danang International Airport to truly become the central airport of the Central Coast. Upgrade and effectively operate existing airports such as Danang, Phu Bai, and Phu Cat.

- Postal and Telecommunications: Further accelerate the construction and development of modern information infrastructure with high capacity, speed, quality, and safety, creating conditions for the application and development of information technology to serve socio-economic development and national defense. The average telephone density increases from 5.64 phones/100 people currently (2002) to 20-22 phones/100 people by 2010. The transmission system continues to be fiber-opticized and buried, minimizing copper cables.

- Power Supply: During the period from now to 2010, continue investing in upgrading the power transmission system to ensure sufficient energy supply for socio-economic activities in the region. Build and improve the quality of the 220 kV network including both transmission lines and transformer substations. Invest in constructing the 220 kV trunk lines Danang-Dung Quat and Danang-Thanh My. Construct the 500 kV line Danang-Dung Quat-Playku. Implement investment in constructing the Dakring hydropower plant (100 MW); Dakre hydropower plant (30 MW), Nước Trong hydropower plant (10 MW). Implement construction of some independent hydropower plants located on the upper reaches of the Tra Khuc River. Renovate and expand the distribution power grid in the region.

- Water Supply, Drainage, and Irrigation: Complete urban water supply projects definitively from now until 2010. Prepare Phase II of drainage projects in Da Nang, Hue, Qui Nhon, and Quang Ngai city. Complete water supply projects for industrial zones and economic zones according to schedule. Strictly control the construction and operation of drainage and wastewater treatment facilities in industrial zones and economic zones.

During the period from now to 2020, focus on developing irrigation systems, constructing large, medium, and small reservoirs, coordinating with the adjustment of crop structures and planting seasons, and basically overcoming drought during the dry season. Complete projects to restore flood control irrigation systems; develop irrigation works combined with flood prevention such as the Tả Trạch Reservoir (Thua Thien Hue); A Vuong, Phu Ninh (Quang Nam); Nuoc Trong, Thach Nham, expanding Chop Vung and Nui Ngang Reservoirs, and preventing flooding in the Thoa River Basin (Quang Ngai); Ding Binh Reservoir (Binh Dinh)... In addition, continue researching solutions to address drought in the region of the Huong River covering 12,000 hectares; the Que Son area (Quang Nam) covering 3,000 hectares; the Duc Pho area (Quang Ngai) covering 2,000 hectares; Bac Binh Dinh covering 2,000 hectares, and Nam Binh Dinh covering 8,000 hectares.

- Environmental protection: establish comprehensive policies and measures to proactively and effectively address environmental pollution issues. Establish a fund to support prevention and reduction of pollution. Develop regulations and strictly monitor environmental protection and preservation of natural scenery. Pay special attention to protecting the environment in industrial zones and urban areas; protect coastal environments. Emphasize disaster prevention and mitigation efforts.

d) Develop cultural, social, and health sectors.

Promote the value of traditional cultural activities in the region, continue investing in the protection of historical, cultural, and revolutionary relics, particularly world cultural heritages such as Hue, Hoi An, My Son. Build Hue into a festival city, reflecting traditional festival characteristics, linked with community cultural life in Vietnam and creating conditions for integration with other nations around the world. Upgrade community cultural houses to meet the increasing cultural needs of the community.

Implement primary healthcare programs; effectively achieve the goals of the national program on preventing and controlling social diseases and dangerous epidemics.

Strengthen technical equipment for disease prevention, diagnosis, and treatment systems from commune and ward levels to provincial levels, focusing on healthcare at the commune and district levels, and gradually deepening healthcare at the provincial level. Expand training for medical staff and implement policies to encourage doctors and medical personnel to work at grassroots levels (commune level).

3. Mechanisms and policies for development.

a) On investment: implement well-established preferential mechanisms and policies already issued and applied to the Chu Lai Open Economic Zone (issued according to Decision No. 108/2003/QD-TTg dated June 5, 2003); apply additional preferential policies for the Dung Quat and Nhon Hoi Economic Zones. Apply preferential mechanisms and policies for the economic-commercial encouragement zone of Chan May. Study specific policies regarding land management (ensuring rational use) for land-for-infrastructure swaps. Study and improve the financial policy system to promote and attract investment for the development of industrial zones based on the Management Regulations for Industrial Zones and Export Processing Zones issued according to Decree No. 36/NĐ-CP dated April 24, 1997 of the Government.

b) Development mechanisms and policies for enterprises.

Vigorously reform administrative procedures to create a transparent environment supporting the development of enterprises within the region; establish a clear, unified, and fair competitive business environment regardless of economic components. Continue implementing the Central Resolution No. 3 on the restructuring, modernization, and improvement of state-owned enterprises within the region. Vigorously promote the development of small and medium-sized enterprises in accordance with the spirit of Decree No. 90/2001/NĐ-CP dated November 23, 2001 of the Government on assisting the development of small and medium-sized enterprises. Study planning and support investment in forming industrial clusters to provide small and medium-sized enterprises with concentrated land and technical infrastructure, thereby enhancing their production and business efficiency.

c) Policies for scientific and technological development.

Reorganize and strengthen (invest deeply) the university system and research institutions in the region towards restructuring educational and research fields. Form organizations connecting universities and research centers with economic activities in the region, especially in technology transfer research. Link research activities with those of enterprises in the region. Coordinate with scientific and technological research and training institutions in Hanoi and Ho Chi Minh City in the application of science and technology research.

Article 4. Development of human resources.

1. Training high-level human resources.

Investment should be made in appropriate steps to transform universities in Da Nang and Hue into multi-disciplinary training institutions and scientific research centers serving the socio-economic development of the Central region. Gradually upgrade regional universities according to the planned network of universities.

2. Training skilled labor forces.

By 2005, the proportion of working-age people trained in vocational skills and career guidance should reach 13-15%, and by 2010, it should reach 18-20%. Expand the scale and quality of vocational education in two directions: expanding the scope of common trades to meet societal demand for vocational training; training high-quality technical staff and skilled workers at advanced levels in key schools; closely combining general and vocational education to train skilled worker teams. Conduct planning and rearrangement of the network of specialized secondary and vocational schools in accordance with the requirements of workforce structure and regional economic development. Establish some high-tech vocational training centers to train technical workers for industrial zones. In the short term, build the Dung Quat vocational school and a high-tech vocational school funded by the South Korean government in Quang Ngai.

Article 5. Ministries, ministerial-level agencies, governmental agencies, provincial people's committees in the Central Key Economic Zone (KKT) region have the responsibility to strictly monitor and follow the main direction of socio-economic development in the KKT Central region, develop five-year plans, annual plans, programs, and investment projects suitable for development.

The Steering Committee for the Development of KKT regions directs the Ministry of Planning and Investment to coordinate with relevant ministries, sectors, and local people's committees to thoroughly review the development plan across the entire area in a practical and highly effective manner. First, focus on reviewing the overall socio-economic development plan for the entire KKT region, especially reviewing urban development plans, economic corridors, industrial zones, port systems, etc.

Review the socio-economic development plans of each province to adjust them appropriately to new development situations. After completing the overall reviews, relevant sectors and localities need to promptly implement detailed plans, ensuring timely notification of all levels of plans to the public. The Ministry of Planning and Investment will lead and coordinate with relevant ministries, sectors, and localities to implement key investment programs and projects.

Central ministries and sectors have the responsibility to cooperate and assist provinces and cities in the KKT Central region during the review process and implementation of established programs and projects, ensuring consistency between provincial and city plans and regional and national plans.

Article 6. This Decision takes effect fifteen days from the date of publication in the Official Gazette and replaces Decision No. 1018/1997/QĐ-TTg dated November 29, 1997, of the Prime Minister approving the overall socio-economic development plan for the KKT Central region from now until 2010.

Article 7. The Chairmen of the People's Committees of provinces and cities in the KKT Central region and Ministers, Heads of ministerial-level agencies, and Heads of governmental agencies are responsible for implementing this Decision./.