Decision No. 18/2007/QĐ-BCT Approving the Master Plan for the Development of Key Commercial Infrastructure in the Central Key Economic Region until 2010 and Orientations until 2020

Pursuant to …;

Approving the planning for the development of certain key commercial infrastructure in the Central Key Economic Region until 2010 and orientation to 2020 

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to Resolution No. 01/2007/QH12 dated July 31, 2007 of the National Assembly of the Socialist Republic of Vietnam, the twelfth session, first meeting, concerning the organizational structure of the Government and the number of Deputy Prime Ministers for the twelfth term;  

Pursuant to Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies; 

Pursuant to Decree No. 92/2006/NĐ-CP dated September 7, 2006 of the Government on the establishment, approval, and management of overall socio-economic development planning;

Pursuant to Decision No. 27/2007/QĐ-TTg dated February 15, 2007 of the Prime Minister approving the Project "Developing Domestic Trade until 2010 with orientation towards 2020";

Based on the authorization of the Prime Minister allowing the Minister of Industry and Trade to review and approve planning projects for the development of commercial infrastructure within the region as stated in Circular No. 6428/VPCP-KTTH dated November 7, 2007 of the Government Office;

Considering the Report No. 344/VNCTM-TTr dated December 3, 2007 of the Institute of Trade regarding the approval of the project "Planning for the Development of Certain Key Commercial Infrastructure in the Central Key Economic Region until 2010 with orientation towards 2020";

At the proposal of the Director of the Department of Planning and Investment,

DECISION:

Article 1: Approve the "Planning for the Development of Certain Key Commercial Infrastructure in the Central Key Economic Region until 2010 with orientation towards 2020" with the main contents as follows:

1. Development Orientation

- The planning for the development of commercial infrastructure in the Central Key Economic Region (hereinafter referred to as the Region) must be consistent with the level of socio-economic development of the entire Region generally and each province and centrally-administered city within the Region specifically (hereinafter referred to as the province) until 2010 and until 2020.

- Focus on developing major types of commercial infrastructure with medium scale and distributed widely across provinces in the Region. For large-scale commercial infrastructure types, it may be considered for development in Da Nang and Binh Dinh to create a "highlight" and conditions to promote regional and extra-regional linkage.

- Mobilize maximum resources within the Region, domestically, and foreign resources according to the law to develop the system of commercial infrastructure within the Region.

- Due to the socio-economic conditions of many provinces in the Region still being difficult, therefore, to invest in developing commercial infrastructure, in addition to mobilizing resources from various economic sectors, there needs to be state investment support.

- The State focuses on creating a favorable investment environment for economic components participating in the development of commercial infrastructure in the direction of gradually improving policies to encourage, support investment, and manage commercial infrastructure in accordance with market mechanisms and Vietnam's commitments to the World Trade Organization.

2. Development Objectives

- Develop types of commercial infrastructure commensurate with the increasing demand and diversity of trade activities at each locality in the Region during the planning period.

- Develop commercial infrastructure in Da Nang, Binh Dinh, and Hue as nuclei linking with adjacent regions and creating conditions for the development of the East-West economic corridor economy.

- Ensure a harmonious combination between the development of traditional and modern types of commercial infrastructure until 2010 and subsequent years.

- In the period 2011-2015, focus on developing a network of Type I markets and wholesale markets; supermarkets, large-scale shopping centers, and exhibition centers; warehouse systems and oil storage port systems in key areas within the Region, primarily Da Nang, Hue, and Binh Dinh, while also emphasizing upgrading, renovation, and enhancing the operational efficiency of other commercial infrastructure facilities.

- In the period 2016-2020, focus on developing types of commercial infrastructure in the Region in a modern direction, including some large-scale projects with regional significance.

3. Planning for the Development of Certain Key Commercial Infrastructure

3.1. Planning for the Development of Type I Markets and Wholesale Markets

3.1.1 Development Goals

- Develop Type I markets and wholesale markets in the Region towards perfecting the technology of organizing commodity circulation and service provision at markets, enhancing service levels and commercial civility.

- Ensure maintaining the average annual growth rate of sales revenue and services through markets at 13-15% during the period 2006-2010; 10-12% during the period 2011-2015; and 8-10% during the period 2016-2020.

- Ensure providing employment for 3-5% of labor in urban areas in the Region currently undergoing rapid urbanization.

3.1.2 Principles of Distribution Planning

a. Principles of Distribution Planning for Type I Markets

- The average population density of the area served by a Type I market must reach a minimum of 600 people/km². The area served by a Type 1 market has an approximate size of 40 km²

- Within the planned area for a Type I market, the gross domestic product per capita annually should be at a level of 500 to under 1000 USD or 8 million to under 16 million VND.

- Have a location and relatively developed infrastructure conditions ensuring convenience for residents' regular shopping.

b. Principles of Distribution Planning for Wholesale Markets

- Agricultural production has entered a stage of rapid development in scale, and the division of labor among stages in the process of agricultural product circulation from production to consumption has become clearly defined.

- The process of urbanization in the rapidly developing region has expanded both in scale and level, necessitating the availability of facilities ready to supply goods, particularly agricultural products, for the increasingly professional, civilized, and modern retail network within the urban area.

- Merchants with the ability and willingness to participate in providing support services for the circulation of goods from production to consumption. The organizational level of labor among merchants ensures the capacity to expand the scale of operations and diversify fields of activity.

- Conditions regarding infrastructure, especially relatively developed transportation, reasonable freight rates ensure favorable conditions for the development of commodity exchange and service provision.

- The distance between similar wholesale markets (attracting and distributing similar products): from 30 to 50 kilometers.

3.1.3 Planning Scheme

- In Thua Thien Hue Province: Upgrade Dong Ba Market and Tay Loc Market (2008-2010). Construct border markets in A Luoi District, including investing in a Class I market at Hong Van-Cutai Border Gate Area (2011-2020). Construct one provincial-level comprehensive agricultural wholesale market and one regional-scale market.

         - In Da Nang City: From 2007 to 2010, construct two new Class I markets, invest in Phase II of Hoa Cuong Agricultural Wholesale Market and invest in a new Tho Quang Seafood Wholesale Market.

- In Quang Nam Province: Invest in upgrading one market and constructing four new Class I markets. Complete the Giang-Dakchung Border Market project (regional-scale) during the period 2007-2010 and construct new border markets in Nam Giang and Tay Giang districts. Construct two comprehensive agricultural-seafood wholesale markets (2007-2010) and two seafood wholesale markets (2011-2020).

- In Quang Ngai Province: From 2007 to 2010, upgrade one Class I market, construct two new Class I markets and one provincial-level comprehensive agricultural wholesale market. From 2011 to 2020, add one additional seafood wholesale market.

- In Binh Dinh Province: Upgrade four Class I markets, construct one new seafood wholesale market and three comprehensive agricultural wholesale markets (2007-2015).

3.2. Planning for the Development of Supermarkets and Shopping Centers

3.2.1 Objectives for Development

- Increase the share of retail sales and service revenue of supermarkets and shopping centers in the total volume of commodity turnover and service revenue of the region from below 1% in 2005 to 5% in 2010, 10% in 2015, and 20% in 2020.

- From now until 2015, focus on developing Class II and III supermarkets in urban areas and industrial zones being developed according to the socio-economic development plan. During the period 2016-2020, develop large supermarkets and shopping centers in major urban areas (Da Nang, Hue, Qui Nhon).

- Increase the number of workers in supermarkets and shopping centers in the region from 0.37% of current commercial workforce to 3% in 2010, 7% in 2015, and 10% in 2020.

3.2.2 Principles for Distribution Planning

- Within the planning area for supermarkets, the average annual gross domestic product per capita must reach over 1,000 USD or over 16 million VND. For the planning area for large supermarkets, the average annual gross domestic product per capita needs to reach over 2,000 USD or over 32 million VND.

- The density and scale of supermarkets and shopping centers are determined in accordance with the size of the urban area. Large supermarkets and shopping centers are mainly planned in cities classified as Type 2 or higher.

- Determining the location for building large supermarkets and shopping centers must take into account their impact on urban order, environment, and traditional commercial concentration areas.

3.2.3 Planning Scheme

During the planning period, following these principles, large supermarkets and shopping centers will develop in Da Nang, while other provinces in the region will mainly develop Class II and III supermarkets.

Closely integrate the development of shopping centers with the development of tourist areas and resorts, thereby fostering mutual development between commerce and tourism.

         - In Thua Thien Hue Province: From 2007 to 2010, increase six supermarkets in Hue City. From 2011 to 2020, increase nine supermarkets in Hue City and other districts. Construct a shopping center (including a trading center for raw materials for the garment industry) in Chan May Economic Zone and a shopping center linked to National Tourism Area: Canh Duong-Hai Van-Non Nuoc.

         - In Da Nang City: From 2007 to 2010, increase thirteen supermarkets and shopping centers. From 2011 to 2020, construct a shopping center linked to Regional Tourism Area-Vung Mountain Ba Na Resort.

         - In Quang Nam Province: Construct two to four supermarkets (2007-2010) and five to seven supermarkets (2011-2020). After 2010, form two shopping centers linked to Regional Tourism Areas: Tam Thanh Beach Tourism Area and Chu Lai Service Tourism Area.

         - In Quang Ngai Province: From 2007 to 2010, construct four to six supermarkets; from 2011 to 2020, increase six to eight supermarkets and shopping centers. After 2010, gradually form a shopping center linked to Regional Tourism Area-My Khe Beach Tourism Area (linked to My Son Heritage Site).

         - In Binh Dinh Province: From 2007 to 2010, increase three to five supermarkets; from 2011 to 2020, increase five to seven supermarkets and shopping centers. After 2010, gradually form a shopping center linked to National Tourism Area-Phuong Mai-Nui Ba Coastal Resort and Nhon Hoi Beach Tourism Area with regional scale.

3.3. Planning for the Development of Exhibition Centers

3.3.1 Objectives for Development

- Increase the scale of exhibitions to an average of 400-500 enterprises per exhibition by 2010 and 1,000 enterprises per exhibition during the period 2011-2020.

- Increase the proportion of foreign enterprises participating in exhibitions to 10-15% by 2010 and approximately 20-25% during 2011-2015, reaching 20-25% by 2015-2020.

3.3.2 Planning Principles

- Areas that have experienced rapid development of businesses in both quantity and scale.

- Regional markets that are rapidly developing and attracting businesses from both within and outside the region, in terms of supply and consumption of goods.

- Possessing geographical economic positions or the ability to develop economic and trade relations between regions and areas.

- The determination of the location for constructing exhibition centers must take into account its impacts on security, local culture, and environmental protection.

3.3.3 Planning Scheme

- The general direction is not to develop small-scale and scattered trade fair and exhibition facilities across various locations.

- During the planning period, medium-sized exhibition centers will be constructed to support tourism development in Hue City from 2007 to 2010, and expand facility areas in Binh Dinh and Da Nang in subsequent phases.

3.4. Planning for the Development of Warehouse Systems

3.4.1 Development Goals

- Develop several units providing comprehensive logistics services according to the model of logistics centers.

- Strive to ensure that all localities in the Region have comprehensive logistics service facilities by 2015, with Da Nang and Binh Dinh playing central roles in the Region and the area.

3.4.2 Planning Distribution Principles

- The scale and scope of the market for goods, including raw material markets for production and consumer goods markets, are quite developed.

- Labor division during the circulation of goods on both domestic and export-import markets has developed at a relatively high level.

- Areas with transportation conditions and the convergence or concentration of consumer markets.

3.4.3 Planning Scheme

- In Thua Thien Hue Province: Form a warehouse area serving import-export activities at the Cham May-Lang Co Economic Zone. Construct a warehouse area serving domestic circulation (peripheral Hue City);

- In Da Nang City: Construct two warehouse areas serving import-export activities at the Tan Sa Port and Lien Chieu Port, and two warehouse areas serving domestic circulation in peripheral Da Nang City;

- In Quang Nam Province: Construct a warehouse area serving import-export activities at the Ky Ha Port, and one warehouse area serving domestic circulation in peripheral Tam Ky City;

- In Quang Ngai Province: Construct two warehouse areas for import-export activities at the Sa Ky Port and Dung Quat Port, and one to two warehouse areas serving domestic circulation in peripheral Quang Ngai City and Van Tuong City;

- In Binh Dinh Province: Construct a large-scale warehouse area serving import-export activities at the Qui Nhon Port, and two to three warehouse areas serving domestic circulation in peripheral Qui Nhon City.

- These warehouse areas will be developed starting from 2010.

3.5 Planning for the Development of Oil Storage and Port Systems

3.5.1 Development Goals

- Adjust and supplement the planning of oil storage and port systems to align with regional socio-economic development plans and environmental protection requirements.

- Increase the capacity of oil storage and port facilities in the Region to match the overall economic growth rate of the Region.

3.5.2 Planning Distribution Principles

- Areas relatively isolated from residential zones, public works, and other critical infrastructure.

- Possess the capability to develop one or more modes of oil transportation (pipelines, sea, river, road...).

- Favorable locations for receiving and transferring oil within the Region and to adjacent Regions at low costs.

- Meeting conditions for environmental sanitation, ensuring safety for oil storage facilities...

3.5.3 Planning Scheme

- In Thua Thien Hue Province: Increase the capacity of the Thu An warehouse by 6,000 m³ during the 2007-2010 period; complete and put into operation the Cham May oil storage and port with a capacity of 14,000 m³ during the 2007-2010 period;³ during the period from 2007 to 2010; completing to put into operation the Chân Mây oil storage and port facility with a capacity of 14,000 cubic meters;³ - In Da Nang City: Complete the expansion and upgrade of the Nuoc Mat oil storage facility with an investment scale of 60,000 m³ during the 2007-2010 period. Expand the Lien Chieu oil storage facility with an investment scale of 25,000 m³ during the 2011-2015 period. Construct a new Tho Quang-Son Tra oil storage and port, completed at the beginning of the 2011-2015 period, expected to have a capacity of 20,000 m³, with a wharf capable of receiving ships with a deadweight tonnage of 5,000 DWT;

- In Da Nang city: Completing the expansion and upgrade of the Nước Mặn oil storage facility with an investment scale of 60,000 cubic meters;³ - In Quang Ngai Province: Construct a new Dung Quat oil storage and port during the 2011-2020 period, expected to have a capacity of 60,000 m³, with a wharf capable of receiving ships with a deadweight tonnage of 30,000 DWT,³ during the period from 2011 to 2015. Constructing the new Thọ Quang – Sơn Trà oil storage and port facility, to be completed at the beginning of the period from 2011 to 2015, with an expected capacity of 20,000 cubic meters;³- In Binh Dinh Province: Expand the Phu Hoa oil storage facility with an investment scale of 25,000 m³ during the 2016-2020 period.

Thus, the total additional capacity of oil storage facilities in the Region according to the plan is 210,000 m³, with 80,000 m³ in the 2007-2010 period, 45,000 m³ in the 2011-2015 period, and 85,000 m³ in the 2016-2020 period.³4. Investment Capital and Land Requirements

4.1 For Type I Markets and Agricultural and Aquatic Product Wholesale Markets³ - The land requirement for Type I markets is 332,925 m², with newly constructed Type I markets requiring 89,550 m².

- The land requirement for wholesale markets is 360,000 m².³, including 80,000 cubic meters during the period from 2007 to 2010;²45,000 cubic meters during the period from 2011 to 2015;³ and 85,000 cubic meters during the period from 2016 to 2020;³.

       4. Investment capital and land use requirements

         4.1. For type I markets and agricultural and aquatic product wholesale markets

- The land use requirement for type I markets is 332,925 square meters,²specifically for newly constructed type I markets is 89,550 square meters;².

- The land use requirement for wholesale markets is 360,000 square meters;².

- Capital investment requirement: 741.6 billion VND, including: 2007-2010 period is 254.6 billion VND, 2011-2015 period is 395 billion VND, and 2016-2020 period is 92 billion VND.

         4.2. For supermarkets and shopping centers

- Land usage requirement: 1,872,563 square meters², specifically for new construction is 1,777,975 square meters²;

- Capital investment requirement: 6,765 to 7,715 billion VND, including: 2007-2010 period is 1,535 to 1,595 billion VND; 2011-2015 period is 2,100 to 2,600 billion VND, and 2016-2020 period is 3,130 to 3,520 billion VND.

4.3. For exhibition and trade centers

- Land usage requirement: 850 thousand square meters².

- Capital investment requirement: 110 to 140 billion VND, including: 2007-2010 period is 20 to 30 billion VND, 2011-2015 period is 30 to 40 billion VND, and 2016-2020 period is 60 to 70 billion VND.

         4.4. For warehouse systems

- Land usage requirement: 1,145 to 1,660 thousand square meters².

- Capital investment requirement: 1,145 to 1,660 billion VND, including 2011-2015 period is 355 to 700 billion VND, and 2015-2020 period is 790 to 960 billion VND.

         4.5. For oil storage ports

- Land usage requirement for building oil storage facilities: 310 thousand square meters², specifically for land usage for port projects is 270,000 square meters² (Chân Mây is 70,000 square meters², Thọ Quang is 100,000 square meters² and Dung Quất is 100,000 square meters²),

- Capital investment requirement: 499.5 billion VND, including: 2007-2010 period is 200 billion VND, 2011-2015 period is 130 billion VND, and 2016-2020 period is 139.5 billion VND.

5. List of investment projects

(Cdetailed in the attached annex

6. Main solutions and policies

         6.1 Management organization solutions

- Review and amend or promulgate new some regulatory legal documents to complete the legal framework related to investment, business, and management activities of markets, supermarkets, shopping centers, oil storage ports, and especially the activities of exhibition and trade centers and warehouse systems according to the model of logistics centers.

- Promptly develop and promulgate standards and technical specifications for various types of commercial infrastructure structures, creating conditions for provinces to build or revise and supplement planning and establish investment projects to develop commercial infrastructure within their territories.

- Continue to promote administrative reform, innovate the content and methods of state management over the development and operation of various types and levels of commercial infrastructure.

6.2 Investment solutions and policies

- The State continues to use budget funds to support investment in developing markets in accordance with the provisions of Decree No. 02/2003/ND-CP dated January 14, 2003 of the Government on market development and management, Decision No. 559/2004/QD-TTg dated May 31, 2004 of the Prime Minister approving the Market Development Program until 2010 and other relevant legal documents.

- The State needs to have policies to encourage domestic and foreign economic sectors to participate in investing in developing various types of commercial infrastructure based on creating conditions for enterprises to effectively utilize their own capital and other sources of capital to invest in developing commercial infrastructure.

- Along with implementing preferential investment policies for projects in the priority investment sector list under Decree No. 108/2006/NĐ-CP dated September 22, 2006 of the Government detailing and guiding the implementation of certain provisions of the Investment Law, competent agencies need to promptly develop and submit to the Government for approval mechanisms and policies to provide preferential treatment and support for projects developing commercial infrastructure like those invested in other production and business sectors as stipulated in Decision No. 27/2007/QD-TTg dated February 15, 2007 of the Prime Minister approving the Domestic Trade Development Program until 2010 and orientation until 2020.

6.3 Land solutions and policies

When drafting socio-economic development plans at the local level, provincial People's Committees need to allocate land reasonably for the development of commercial infrastructure, meeting current needs while being suitable for the increase in investment projects and expansion of the scale of operations of various types of commercial infrastructure in the future. At the same time, there should be proactive and comprehensive solutions and policies to facilitate land clearance for investors when constructing commercial infrastructure in their areas.

6.4 Human resource solutions and policies

- Utilize domestic and foreign resources to support training and human resource development for commercial enterprises.

- Allocate and use state budget funds efficiently to upgrade material and technical facilities, build teaching staff, programs, and training content in the distribution field for vocational colleges and secondary vocational schools under the Ministry of Industry and Trade.

- Have policies to encourage enterprises and localities to organize training and retraining of human resources participating in trade activities with appropriate forms and methods suitable for the conditions of each enterprise and locality.

6.5 Environmental protection solutions and policies

- Investment projects for developing commercial infrastructure must comply with all environmental regulations.

- Enterprises and localities need to allocate sufficient resources to invest in building collection, sorting, transportation, and disposal systems for waste generated from commercial facilities.

- Strengthen inspection and supervision of the implementation of legal provisions on environmental protection by commercial establishments in the Region to prevent and promptly address violations by organizations or individuals, thereby promoting trade development in the region towards rapid and sustainable growth.

Article 2. Implementation

1. Responsibilities of Ministries and sectors

1.1 The Ministry of Industry and Trade shall be responsible for leading and coordinating with relevant ministries and sectors to guide and instruct the People's Committees of provinces to implement this Decision, focusing on the following main tasks:

a. Directing and guiding the provinces to review, adjust, supplement, or develop new plans for the development of commercial infrastructure in the provinces within the Region in accordance with the provisions of this Decision and related legal documents.

b. Directing, guiding, and inspecting the provinces in the Region in the establishment and implementation of investment projects for developing commercial infrastructure in their respective areas in compliance with the provisions of this Decision and related legal documents.

c. Reviewing and recommending the Government to amend or supplement, within its authority, legal normative documents related to mechanisms, policies, and solutions for the development and management of commercial infrastructure as stipulated in this Decision.

1.2 The Ministries of Planning and Investment, Finance, Agriculture and Rural Development, Construction, Science and Technology, Natural Resources and Environment, Transport, State Bank, and other relevant ministries and sectors shall cooperate with the Ministry of Industry and Trade to implement the measures set forth in this Decision according to their functions and responsibilities.

2. Responsibilities of localities

Directing the Departments of Commerce/Tourism to coordinate with relevant agencies to perform the following main tasks:

a. For provinces in the Region that have had commercial infrastructure development plans prior to the effective date of this Decision, they must conduct reviews; if these plans are not in line with the provisions of this Decision and related legal normative documents, they must establish adjustment and supplementation projects for the development plan of commercial infrastructure in their respective areas and submit them for approval by the People's Committee of the province.

b. For provinces in the Region without existing commercial infrastructure development plans, they must urgently develop plans for the development of commercial infrastructure in their respective areas in accordance with the overall provincial trade development plan, local socio-economic development conditions, regional trade planning orientation, and the provisions of this Decision.

c. During the implementation of this Decision, the planning schemes and project lists of commercial infrastructure of each province included in the list of investment projects for developing commercial infrastructure attached to this Decision may be adjusted to suit economic and social development and trade development in each locality. However, before deciding to adjust the planning scheme and develop large-scale projects, the People's Committee of the province must consult and reach consensus with the Ministry of Industry and Trade.

d. Developing annual plans for the development of commercial infrastructure to be submitted for approval by the People's Committee of the province.

đ. Advising the People's Committee of the province on the construction, examination, and guidance for the implementation of investment projects for developing commercial infrastructure in their respective areas according to approved planning and plans.

e. Advising the People's Committee of the province on the allocation and utilization of investment capital for developing commercial infrastructure, including state budget support investment funds, in an efficient, practical, and purposeful manner.

f. Establishing and submitting to the People's Committee of the province for issuance mechanisms, policies (in compliance with legal provisions) and solutions to mobilize and utilize local resources, especially those of enterprises and business households, for the development of commercial infrastructure in their respective areas.

g. Regularly inspecting the implementation of the development planning of commercial infrastructure in the province to promptly propose competent authorities to handle violations in the development of commercial infrastructure.

h. Annually reporting to the Ministry of Industry and Trade and the People's Committee of the province on the implementation and results of this Decision.

Article 3This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 4Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally governed cities in the Central Coastal Economic Zone, and related agencies shall be responsible for implementing this Decision./.