Decision No. 186/2001/QĐ-TTg on economic and social development in six particularly difficult northern mountainous provinces for the period 2001-2005

Pursuant to …;

On the development of the economy and society in six particularly difficult mountainous provinces in the northern region for the period 2001-2005

The development of the economy and society in the six particularly difficult mountainous provinces in the northern region: Cao Bang, Bac Kan, Lao Cai, Ha Giang, Son La, Lai Chau for the period 2001-2005 with the aim of leveraging the potential and advantages of geographical location, land, climate, forests, and minerals, as well as human potential in the area; linking economic and social development with ethnic policies, gradually improving and enhancing the living standards of the people; protecting the ecological environment for the region and downstream areas in the Red River Delta; contributing to maintaining national security and defense. Specific goals by 2005 are:

___________________

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

1. Addressing fundamental issues in the lives and society of the six provinces: chronic poverty, slash-and-burn agriculture, spontaneous migration, opium replanting; transportation, education, and healthcare for the people.

DECISION:

Article 1. 2. Gradually developing infrastructure in conjunction with the development of a commodity economy to improve the living standards of the ethnic groups, reducing the gap with other regions in the country.

3. Gross Domestic Product (GDP) to be 1.7 times that of 2000, increasing on average about 9.9% per year, including industry at 15.5% per year, agriculture and forestry at 5.7% per year, and services at 13.1% per year. Average GDP per capita to be 1.5 times that of 2000.

4. The proportion of GDP from agriculture and forestry is 43.3%, industry and construction 20.7%, and services 36%, total export turnover to increase by 17.76%.

5. No households suffering from chronic hunger, the poverty rate below 17%.

6. Most communes in Zone III have roads accessible by automobiles to the commune center, 100% of communes have telephones to the commune center; 70% of rural population use clean water; over 75% of communes have electricity to the commune center.

7. Upgrading and reinforcing health stations in communes to ensure that all communes have health stations suitable for economic conditions, geography, ecological environment, and medical needs in the region; reduce the rate of malnutrition among children under five years old to below 33%.

8. Consolidate the results of universal primary education and literacy campaigns. Mobilize students within age groups to attend school: primary school 95%, lower secondary school 79%, and upper secondary school 40%; 100% of hamlets have classrooms and reinforce classrooms in communes; 15% of workers in various sectors have received training.

9. Better address social issues, raise public awareness, and significantly improve the spiritual life of the people, especially the cultural life of ethnic minorities.

10. Prepare the area and conditions for resettling residents affected by the Son La hydroelectric reservoir.

Develop economic and social infrastructure.

1. Focus on developing infrastructure to serve production development and improve the living standards of the people; first and foremost, focus on planning and mobilizing all resources to develop transportation, considering this as a breakthrough for the economic and social development of the region during the period 2001-2005 and beyond.

Article 2. Develop economic and social infrastructure.

1. Focus on developing infrastructure to serve production development and improve people's living standards; first and foremost, concentrate on planning and mobilizing all resources to develop transportation, considering it a breakthrough for the region's economic and social development during the period from 2001 to 2005 and in the future.

The investment objectives for transportation during the period 2001-2005 are: to connect routes to form a synchronized and interconnected network of transportation between provinces, provinces with districts, and districts with communes; to invest in constructing national roads to upgrade 90% of the surface of national roads, and 60-80% of the surface of provincial roads to asphalt; to ensure that 100% of communes or clusters of communes have automobile-accessible roads with asphalt, cement concrete, or gravel surfaces to the center, and to construct solid bridges, culverts, and tunnels. To invest in upgrading and improving railway, air, and waterway routes within the region; prioritizing investments in transportation routes to border areas, border zones, border patrol roads, and roads to production areas. Continue to invest in upgrading and improving National Highway Nos. 6, 2, 3, 4, 12, 32A, 32B, 32C, 34, 37, 70, 279, and the Xi Pang Phin - Muong Nhe - Pac Ma Lai Chau route. Among these, prioritize investments in certain sections such as National Highway 6 (from Hoa Binh to Son La), upgrading and expanding the Lao Cai-Doan Hung, Phu Tho route to promote economic relations between Vietnam and southern Chinese provinces, National Highway 2 (from Tuyen Quang to Ha Giang), National Highway 3 (from Bac Kan to Cao Bang), National Highway 4D (from Pa So Lai Chau to Ban Phiet Lao Cai), National Highway 4C (from Lao Cai to Ha Giang-Cao Bang), National Highway 32 (from Lao Cai to Lai Chau), National Highway 34 (from Cao Bang to Ha Giang), National Highway 37 (sections in Son La), National Highway 70 (from Dau Lo to Ban Phiet), National Highway 279 (sections in Lao Cai, Ha Giang, Son La, Lai Chau), and other necessary sections.

2. Regarding water conservancy projects: repair and upgrade existing facilities, invest in new projects, prioritizing those aimed at increasing rice cultivation areas, irrigating industrial crops, other crops, and providing water for daily use. Continue to invest in small-scale water storage facilities, headworks to channels and ditches, reinforcing channels and ditches; small-scale water conservancy projects in particularly difficult communes. Start new projects such as flood control in Son La, Chieng Khoi reservoir, the trial irrigation project for tea in Son La, Na Hi - Lai Chau water conservancy, the Choc Don - Bac Kan, Xin Man and Yen Minh - Ha Giang, Ly Van Ha Lang, Bac Trung Khanh - Cao Bang, Coc Ly and Than Uyen Lao Cai water conservancy system. Prioritize investments in building riverbank protection structures against landslides along rivers, streams, and border markers.

3. Regarding infrastructure projects for communes under Program 135: based on planning, resettling residents, developing production, it is necessary to effectively integrate with other programs and projects in the area to invest in infrastructure projects of the Program.

Invest in schools at commune cluster centers including classrooms, housing for teachers, and dormitories for students; nursery and kindergarten facilities in communes (where needed); health station and commune health center facilities, including housing for health workers.

4. Prioritize investment in infrastructure in resettlement areas for the Son La Hydropower Reservoir to ensure that the population has sufficient conditions to develop production, stabilize quickly, and improve their living standards compared to their previous locations.

5. Focus on investing in economic and social infrastructure in safe zone communes to create favorable conditions for production development, improve people's lives in the region, and gradually reduce the gap with other regions.

6. Emphasize investment in cultural service facilities, radio and television broadcasting, sports facilities, and cultural houses serving festivals to promote traditional culture and preserve ethnic identity.

7. Prioritize investment in vocational education and training institutions, research, application, and transfer of advanced technology and techniques into production and daily life, primarily in seed breeding, livestock breeding, preservation and processing technologies for agricultural and forest products, mineral extraction and processing.

8. Develop urban networks by investing in central city construction such as the cities of Son La, Muong Chau, Cao Bang, Dien Bien Phu, Lao Cai, Ha Giang, Bac Kan. Form new cities based on developing special economic zones such as border trade, tourism, mining industry, hydropower, and other industrial complexes. Develop market towns in district centers and production areas. Construct market towns to serve as economic, cultural, and service centers for each community. Upgrade water supply and drainage systems in urban areas.

Gradually establish industrial clusters in the centers of cities and concentrated industrial tree areas: the city of Son La, Muong Chau (Son La), the city of Dien Bien Phu, Tam Duong (Lai Chau), Tang Long Industrial Zone, border gate industrial zone (Lao Cai), the city of Ha Giang, the city of Cao Bang, and Ta Lung border gate industrial complex (Cao Bang).

Modernize the postal and telecommunications network towards synchronization and digitalization to meet domestic and international information requirements.

(The specific project investment list is attached as an appendix)

Article 3. Orientation for economic structure development and transformation.

I. ON AGRICULTURAL, FORESTRY, AND FISHERIES PRODUCTION

The growth rate of production value is 6.63%, based on restructuring production, exploiting regional advantages, and increasing income per unit of cultivated land by more than 2.0 times compared to 2000. On the basis of continuing to develop food grains where conditions permit, focus on developing agricultural products that contribute to replacing imports such as tobacco, dairy cattle, vegetable oil, etc., while continuing to strongly develop export-oriented agricultural and forestry products such as tea, coffee, paper pulp and paper, wood products, etc., to increase export turnover.

1. On food grain production: The output is approximately 1.3 million tons, with a focus on developing hybrid corn (especially high-protein varieties) and high-yield cassava in the direction of commercial production to solve local food needs and increase income for the population.

Maintain current acreage, apply intensive farming methods and rapidly propagate hybrid rice seeds, continue to expand paddy and upland rice areas in suitable locations. Prioritize the construction of medium and small-scale water conservancy projects, reclaiming and transforming paddy fields, creating terraced fields to produce food locally for remote mountainous areas.

The Ministry of Agriculture and Rural Development shall direct scientific research institutions and seed production units under the Ministry, together with localities, to rapidly propagate new seeds, especially hybrid rice, drought-resistant rice, hybrid corn, cassava, etc., with high yield and quality to meet the production needs of ethnic communities.

2. Regarding industrial crops.

a/ Tea trees: Focus on intensive cultivation of existing tea areas, gradually replacing current tea varieties with new ones that have high yields and quality suitable for both domestic and international markets. Develop high-quality tea planting areas in mountainous regions to produce rare specialty tea products. By 2005, the area should reach 34,000 hectares, with fresh tea leaf output around 120,000 tons/year. Continue to invest in building and upgrading processing facilities to increase product value and quality, ensuring competitiveness in the global market.

b/ Coffee trees: Focus on intensive cultivation of existing areas, continue planting new areas in Son La, Lai Chau, Ha Giang provinces according to the planning and program of coffee development loans from AFD.

c/ Sugarcane: Continue to expand the area to ensure sufficient raw material for existing sugar factories. Implement intensive measures, increase the proportion of new sugarcane varieties planted, and expand irrigated sugarcane areas where there are irrigation works. Survey and prepare feasible projects for investment in establishing raw material zones and sugar factories in Lai Chau province to implement resettlement for people living in the reservoir area of the Son La hydropower project.

d/ Mulberry trees: Focus on restoring and developing mulberry planting and silkworm breeding areas mainly in Son La province. By 2005, the area should be about 2,000 hectares, with cocoon and silkworm output around 800 tons. Invest in silk reeling and weaving facilities linked to raw material areas to address employment and resettlement issues.

đ/ Tobacco plants: Develop high-quality tobacco planting in provinces with favorable conditions such as Cao Bang, Bac Kan, providing raw materials for cigarette manufacturing and export, contributing to poverty reduction. By 2005, the area should reach about 2,000 hectares, with an output of about 2,800 tons/year.

3. Regarding fruit trees: In provinces within the region with many favorable conditions, develop fruit trees with local specialties such as tangerines, mandarins, longans, etc., and temperate and subtropical fruits like peaches, plums, apricots, pears, contributing to economic restructuring, poverty reduction, and replacing opium poppies. By 2005, the total area of various fruit trees should be about 55,000 hectares, with an output of about 200,000 tons/year.

4. Regarding food crops: Vigorously develop soybeans and other legumes towards specialized farming and concentrated commodity production. By 2005, the area should be about 100,000 hectares, with an output of about 300,000 tons/year.

5. Regarding forestry: Developing forestry is an immediate and long-term task to increase forest coverage to 65%, aiming to protect the environment and water sources for large hydropower projects and the lower Red River delta, forming concentrated raw material zones for paper, plywood, and wood processing industries, and establishing large tree plantations and specialty tree plantations, contributing to increasing income and job creation.

Effectively implement forest protection, encircling and regenerating existing forests, including natural forests, protective forests, national parks, nature reserves, and historical forest areas. Strict measures must be taken to protect natural forests, particularly primary forests with rare and precious timber species.

Plant approximately 160,000 hectares of economic forest areas for paper, particleboard, plywood, and wood processing industries. Apply advanced scientific and technological progress in breeding, especially tissue culture and cutting technology to rapidly propagate fast-growing, short-cycle, and highly efficient tree varieties.

Vigorously develop trees such as pine, acacia, bamboo, eucalyptus, and other species for timber and raw materials for paper, plywood, and wood processing industries; specialty trees like cinnamon, turmeric, cardamom, clove, plum, bitter tea, and ant-nest trees, among others, especially investing in high-yield cardamom varieties to enhance protective functions and contribute to addressing the growing demand for vegetable oil in the country. Develop large timber trees along urban fringes and roadsides.

Continue implementing the allocation of land and forest management contracts for organizations, individuals, and households to plant, care for, and protect forests; gradually allocate natural forest areas to households and communities (villages, communes) for management and protection according to community agreements.

6. Regarding animal husbandry: Leverage land and grassland advantages to develop cattle and buffalo farming. Implement projects to develop beef and dairy cattle farming in Moc Chau (Son La) linked to improving and upgrading milk processing facilities, reaching about 800,000 heads of cattle and buffalo by 2005, including 5,000 dairy cows. Animal husbandry development primarily relies on household and farm operations. State-owned enterprises, cooperatives, and private economic organizations provide services related to breeding, veterinary care, agricultural extension, and preservation, processing, and marketing of livestock products.

7. Regarding fisheries: Utilize existing water surfaces, especially hydropower and irrigation reservoirs, to develop fisheries. Along with cultivating native fish species, quickly introduce new breeds to produce high-value products. Supplement fish fry in reservoirs to restore and develop resources linked to eco-tourism and genetic conservation. The Ministry of Fisheries shall direct the rapid propagation of suitable fish breeds to meet the breeding needs of the population.

II. REGARDING INDUSTRY

The main focus of industry development in the region is processing agriculture and forestry products, hydropower industry, and mining industry.

1. Processing Industry: Prioritize completing new investments and upgrading processing facilities for agriculture and forestry products according to planning. Investments in processing facilities must be based on market demand and the potential for raw material development. Invest in advanced and modern equipment and technology to produce products that meet consumer preferences and are competitive in both domestic and export markets. Specifically:

BASED ON THE DEVELOPMENT OF RAW MATERIAL AREAS TO INVEST IN BUILDING PAPER AND WRITING PAPER MILLS WITH SUITABLE SCALE AND ENSURE EFFICIENT PRODUCTION, CONTRIBUTING POSITIVELY TO IMPLEMENT THE STATE'S PAPER INDUSTRY PROGRAM.

INVEST IN BUILDING A MANUFACTURING PLANT FOR ARTIFICIAL WOOD PANELS IN LAO CAI WITH AN ANNUAL CAPACITY OF ABOUT 30,000 M3 OF PRODUCTS; BUILD ONE PLANT FOR TREES AND BAMBOO STRIP PANELS IN EACH OF THE PROVINCES: SON LA, CAO BANG, BAC CAN, HAA GIANG, LAO CAI WITH AN ANNUAL CAPACITY OF ABOUT 1,000 M3 OF PRODUCTS IN LINE WITH MARKET REQUIREMENTS. IMPROVE AND UPGRADE TEA PROCESSING PLANTS IN SON LA, LAI CHAU, LAO CAI, HA GIANG; DAIRY PROCESSING IN MOCHAU (SON LA); AND SILK REARING AND SPINNING IN SON LA.

2. HYDROPOWER INDUSTRY:

CONTINUE TO STUDY AND INVEST IN HYDROPOWER PROJECTS LINKED TO IRRIGATION; PRIORITY SHOULD BE GIVEN TO SMALL HYDROPOWER PLANTS IN AREAS WITH SUITABLE CONDITIONS. COMPLETE THE PROCEDURES AND PREPARATORY WORK FOR THE CONSTRUCTION OF THE SON LA HYDROPOWER PLANT SO THAT UNIT 1 CAN BE OPERATIONAL BY 2010.

3. MINING AND CHEMICAL INDUSTRIES:

THE MINISTRY OF INDUSTRY SHALL LEAD AND COORDINATE WITH THE PROVINCES TO CONTINUE SURVEYING, EXPLORATION, AND COMPLEMENTARY ASSESSMENT OF THE QUANTITIES AND GRADES OF MINERALS AND UNDERGROUND RESOURCES TO DEVELOP EFFECTIVE EXPLOITATION PLANS AND MEASURES. CONTINUE TO EXPLOIT APATITE IN CURRENT MINES IN LAO CAI, EXPLORE AND ASSESS NEW MINES TO INCREASE EXPLORATION CAPACITY, REACHING ABOUT 3 MILLION TONNES PER YEAR BY 2005 TO MEET THE NEEDS OF A SEPARATION PLANT WITH AN ANNUAL CAPACITY OF 760,000 TONNES. START THE PROJECT TO EXPLOIT COPPER ORES AT SINH QUYEN (LAO CAI). EXPLOIT OTHER MINERALS SUCH AS COAL, RARE EARTHS (LAICHAU), GOLD (LAICHAU, BAC CAN), IRON ORES (CAOBANG, HAA GIANG), ALUMINUM (HAA GIANG), LEAD AND ZINC (BAC CAN) TO MEET LOCAL DEMAND AND FOR EXPORT.

4. CONSTRUCTION MATERIALS INDUSTRY:

FOCUS ON DEEPENING INVESTMENT IN EXISTING CEMENT PLANTS, BUILD A NEW CEMENT PLANT IN SON LA WITH AN ANNUAL CAPACITY OF ABOUT 500,000 TONNES AND A CLAY BRICK PLANT WITH AN ANNUAL CAPACITY OF 10-15 MILLION BRICKS TO MEET THE NEEDS OF MAJOR PROJECTS AND LOCAL DEMAND.

5. MACHINE INDUSTRY AND SMALL HANDICRAFT INDUSTRY:

REORGANIZE MACHINE INDUSTRY PRODUCTION, INVEST IN UPGRADING EQUIPMENT IN EXISTING MACHINE PLANTS. FIRSTLY, INCREASE THE CAPACITY OF THE MACHINE REPAIR AND SMALL MACHINE PRODUCT INDUSTRY TO SERVE AGRICULTURAL AND FORESTRY PRODUCTION. RESTORE AND DEVELOP TRADITIONAL SMALL HANDICRAFT INDUSTRIES, IMPROVE DESIGNS, AND ENHANCE THE QUALITY OF ETHNIC TEXTILES.

III. TRADE, TOURISM, AND SERVICES

MAKE FULL USE OF BORDER GATE ADVANTAGES, HISTORICAL REMNANTS, AND SCENIC SPOTS TO DEVELOP THE TRADE, TOURISM, AND SERVICE INDUSTRIES TO PROVIDE MOTIVATION FOR THE REGION'S ECONOMIC AND SOCIAL DEVELOPMENT.

1. ON TRADE: CONTINUE TO IMPLEMENT POLICIES TO DEVELOP MOUNTAIN, ISLAND, AND ETHNIC GROUP AREAS' TRADE. PERFECT THE POLICIES STATED IN DECREE NO. 20/1998/NĐ-CP OF THE GOVERNMENT DATED MARCH 31, 1998 ON DEVELOPING MOUNTAIN, ISLAND, AND ETHNIC GROUP AREAS' TRADE.

DEVELOP THE RETAIL NETWORK AT PROVINCE, DISTRICT, COMMUNE, AND VILLAGE LEVELS, ENCOURAGING ALL ECONOMIC COMPONENTS TO PARTICIPATE IN TWO-WAY COMMODITY FLOW, TO PROVIDE MOTIVATION FOR PRODUCTION DEVELOPMENT, WHERE STATE ENTERPRISES MUST ENHANCE BUSINESS EFFICIENCY AND PLAY A CORE ROLE.

DEVELOP MORE WEEKLY MARKETS. INVEST IN BUILDING BORDER GATES (INTERNATIONAL AND LOCAL), BORDER ECONOMIC ZONES, BORDER MARKETS, AND MARKETS INSIDE BORDER ECONOMIC ZONES. INVEST IN BUILDING AND UPGRADE SOME DOMESTIC MARKETS AND COMMERCIAL CENTERS, LINKING TRANSPORTATION DEVELOPMENT WITH POPULATION RELOCATION PLANNING.

PROMOTE COOPERATION AND CROSS-BORDER TRADE, PURCHASE AND EXCHANGE OF GOODS, ESPECIALLY AGRICULTURAL, FOREST, AND FISHERY PRODUCTS WITH CHINA AND LAOS.

2. FOCUS ON DEEPENING INVESTMENT IN EXISTING TOURISM CENTERS, SELECT NEW INVESTMENTS IN AREAS WITH SUITABLE CONDITIONS, AND EXPLOIT THE STRENGTHS OF ECOTOURISM, LANDSCAPES, AND REVOLUTIONARY HERITAGES IN THE REGION.

Article 4. DEVELOP EDUCATION, HEALTHCARE, CULTURE, AND SOCIAL SERVICES

1. ON EDUCATION:

IMPROVE THE QUALITY OF COMPREHENSIVE EDUCATION AT THE SECONDARY LEVEL, STEP BY STEP APPROACHING NATIONAL STANDARDS. INCREASE THE RATE OF SCHOOL ATTENDANCE AMONG STUDENTS OF AGE. CONTINUE TO INVEST IN BUILDING ROBUST CLASSROOMS FOR ALL EDUCATIONAL LEVELS; FOR COMMUNES AND VILLAGES IN AREA III, CLASSES AND SCHOOLS WILL BE INVESTED IN ACCORDANCE WITH THE PROGRAM 135. ALL COUNTIES HAVE BOARDING SCHOOLS FOR ETHNIC MINORITY STUDENTS, STRENGTHENING INFRASTRUCTURE FOR PROVINCIAL BOARDING SCHOOLS TO ACHIEVE NATIONAL STANDARDS. DEVELOP BOARDING SCHOOLS AND SCHOOLS FOR DISABLED CHILDREN IN PROVINCES. STRENGTHEN AND DEVELOP KINDERGARTEN AND PRESCHOOL FACILITIES. FOCUS ON INVESTING TO ENHANCE TRAINING CAPACITY AND SCALE FOR THAI NGUYEN UNIVERSITY; INVEST IN BUILDING NORTHWESTERN UNIVERSITY (SON LA) AND BAC KAN TEACHER COLLEGE. INVEST IN UPGRADE AND EXPAND EXISTING VOCATIONAL SCHOOLS AND BUILD SOME KEY VOCATIONAL TRAINING CENTERS IN MARKET TOWNS AND COUNTIES. ALL COUNTIES AND CITIES HAVE CONTINUOUS EDUCATION CENTERS.

2. ON HEALTHCARE: CONTINUE TO UPGRADE, IMPROVE, AND BUILD PROVINCE LEVEL HOSPITALS LIKE BAC KAN, LAI CHAU, SON LA, HAA GIANG; UPGRADE COUNTY LEVEL HOSPITALS, MULTIDISCIPLINARY CLINICS IN REGIONS, AND BUILD A NORTHWESTERN REGION HEALTH CENTER IN SON LA; SUPPLEMENT EQUIPMENT FOR SOME HOSPITALS, SOLIDIFY AND STANDARDIZE 100% OF COMMUNE HEALTH STATIONS, HEALTH FACILITIES IN COMMUNE GROUP CENTERS, AND MULTIDISCIPLINARY CLINICS IN REGIONS.

3. Culture and society: Prioritize investment in cultural facilities, radio, television, and sports bases to serve festivals that promote traditional culture and national identity. Preserve and develop tangible and intangible cultural heritage of ethnic groups in the region through the implementation of democratic regulations at the grassroots level. Strive for 80% of households to meet the criteria for cultural families, 50% of villages, hamlets, neighborhoods, and wards to meet national cultural standards, gradually establishing community centers in communes and towns. All communes must have postal and cultural service points. Establish radio stations for each commune and clusters of communes. Modernize equipment and increase broadcasting time for programs in ethnic languages at the district and provincial levels.

Effectively implement national target programs on crime prevention, HIV/AIDS prevention, drug abuse, and prostitution.

4. Eradicating poverty and creating employment opportunities.

Ministries, sectors, and especially People's Committees of provinces must have specific plans and solutions regarding land, seeds, capital, and agricultural and forestry promotion to assist poor households in escaping poverty.

Effectively implement the National Program on Poverty Eradication and Employment Creation, aiming to provide jobs for 220,000 to 250,000 workers by 2005.

5. Planning and resettling residents, stabilizing settlement, spontaneous migration, and preparing well for resettlement areas for people in the reservoir area of the Son La Hydropower Project.

First, plan and resettle residents based on transportation development planning and overall socio-economic development planning for the period 2001-2005 of the locality. For border regions, combine with national defense to form residential clusters, residential lines, townships, and communal centers suitable for the situation. For places where ethnic minorities still live scattered and dispersed, encourage them to voluntarily move to villages and hamlets near traffic routes and with stable production conditions; focus on implementing projects to stabilize spontaneous migrants, return people to border areas, and link production development with national defense.

Stabilize settlement and living conditions for approximately 7,000 households of local ethnic minorities. Basically complete the work of stabilizing settlement in remote, deep, revolutionary base areas, and return people to border areas; take practical measures to stabilize spontaneous migrants in place and limit ethnic minorities from spontaneously migrating to the Central Highlands and coastal central provinces.

Urgently plan and build resettlement projects for the Son La Hydropower Project towards building complete economic and social infrastructure (transportation, water conservancy, electricity, water supply, schools, health clinics, etc.), production land, and residential land to accommodate people who need to be relocated under the Son La Hydropower Project, ensuring that their new living conditions and production development conditions are better than those in their previous locations; initially, implement the survey, design, and establish model resettlement projects in Mu Cang Chai, Son La Province, and Xi Pa Phìn, Lai Chau Province, to be implemented in 2002.

Article 5. Enhance the effectiveness and efficiency of state management, build a strong political system.

Improve the quality of the political system, build government machinery at all levels, particularly at the grassroots level, with sufficient capacity to direct and manage all aspects of the economy, livelihoods, and society. Strengthen national unity, pay attention to the role of village elders and hamlet chiefs.

Develop policies for training and utilizing civil servants, particularly ethnic minority cadres at all levels from the provincial to the grassroots level; encourage cadres to work at the grassroots level. Regularly organize training courses for village and hamlet cadres to gradually enhance their social management capabilities, agricultural and forestry knowledge, and guide ethnic minorities to stabilize production and improve their livelihoods.

Enhance the effectiveness and efficiency of state management in planning and directing the implementation of economic and social plans, strictly managing land, resources, and the environment.

Article 6. On some policies and solutions.

1. On investment and credit:

a/ On investment:

State budget funds and ODA funds should mainly be invested in the following areas serving economic and social development:

- Transportation: Prioritize investment in transportation development to support economic and social development, national security, including national highways, provincial roads, border roads, border ring roads, border patrol roads, roads to concentrated commodity areas, communes under the Program 135, and hamlets in Region III but not in communes under the Program 135.

- Water conservancy: Medium and large-scale water conservancy works, water source works, urban water supply works, and concentrated residential and industrial zones. Support interest rates for the reinforcement of irrigation channels according to Decision No. 66/2000/QĐ-TTg dated June 13, 2000, of the Prime Minister. Reclamation, improvement of paddy fields, and construction of terraced fields.

- Infrastructure serving education, healthcare, radio, and television...

- Forest planting and care according to regulations.

- Program 135, National Target Program on Poverty Eradication and Employment Creation, National Target Program on Population and Family Planning, National Target Program on Education, Training, and Vocational Training, National Target Program on Prevention of Certain Social Diseases, Dangerous Diseases, and HIV/AIDS.

- Border Economic Zones according to Decision No. 53/2001/QĐ-TTg dated April 19, 2001, of the Prime Minister on policies for border economic zones.

- Defense Economic Zones.

- Investment in scientific and technological development and promotion of agriculture, forestry, fisheries, and artificial seed production facilities serving production (including the import of seeds).

Survey, investigate, and evaluate additional mineral and other underground resources.

Each locality should organize the integration of national target programs within its territory to effectively manage and utilize state budget funds.

b/ State development investment credit capital: Implement well the current regulations stipulated in Decree No. 43/1999/NĐ-CP dated June 29, 1999 of the Government on state development investment credit and Decision No. 02/2001/QĐ-TTg dated January 2, 2001 of the Prime Minister on support policies for investment from the Development Support Fund for export production and processing projects and agricultural production projects; Decision No. 133/2001/QĐ-TTg dated September 10, 2001 of the Prime Minister promulgating the Credit Support Export Regulation. Adequate priority should be given to capital sources for investment projects in this region, especially those focusing on exploiting the advantages and potential of the region in production and processing sectors.

c/ Credit capital: The State Bank of Vietnam directs commercial banks to ensure sufficient capital for borrowing needs in the region; continue improving loan procedures, take specific measures to dispatch credit officers directly to guide people in preparing loan applications, so that ethnic groups can obtain bank loans. Coordinate with the Farmers' Association to expand loan group construction forms to help farmers better access credit capital and effectively utilize these funds.

Increase additional capital for the Bank serving the poor, the National Target Program on Employment Resolution in this region, and focus on poor households, particularly ethnic minority poor households, to borrow capital for production development and poverty alleviation.

Encourage various forms of capital mobilization from the public and domestic investors to increase production capacity, develop small and medium enterprises, cooperatives, farms, and household businesses.

2. Some support policies:

a/ Regarding land reclamation and paddy field construction: Support Lai Chau Province to invest in 10,000 hectares and other provinces in terrace rice field construction at 5 million VND/hectare, and fixed garden establishment at 2 million VND/hectare.

b/ Regarding crop and livestock breeds: Provide a one-time support of 10 billion VND per province to immediately start from 2002 building bases for breeding and producing high economic value crops and livestock breeds (including imported breeds) such as high-quality tea, temperate fruit trees, specialty fruits, bamboo shoots, eucalyptus for paper raw materials, dairy cattle, and other rare and precious breeds.

c/ Regarding housing: The State implements a policy to support roofing materials to improve housing conditions for ethnic households and policy beneficiary households truly facing difficulties in housing. The Ministry of Labor, Invalids, and Social Affairs will lead and coordinate with relevant ministries and sectors to build specific support policies to submit to the Prime Minister by the first quarter of 2002. Provincial People's Committees must have plans to mobilize enterprises and the public with conditions to support and exploit wood from reservoirs of hydropower and irrigation dams to help ethnic groups build houses, aiming to basically resolve housing issues for ethnic households and policy beneficiary households by the end of 2003.

d/ Regarding drinking water supply: For highland and rocky mountain households facing difficulties in accessing drinking water, mainly in Ha Giang and Cao Bang Provinces, provide a support of 1 million VND/household to construct rainwater storage tanks, aiming to completely solve drinking water facilities for ethnic groups by the end of 2002.

đ/ Supporting ethnic groups returning to border areas and resettling residents:

- The support level for ethnic groups moving back to border areas for living and production is 15 million VND/household.

- The support level for relocating ethnic households from highlands to lowlands for long-term stable living according to resettlement programs is 5 million VND/household.

e/ Policies for permanent settlement, stabilizing spontaneous migrants, developing new economic zones, and supporting the eradication of opium poppies: The Ministry of Agriculture and Rural Development will lead and coordinate with relevant ministries and sectors to complete and submit to the Prime Minister by the first quarter of 2002.

g/ Regarding education policies: From 2002, implement educational policies for children of ethnic minorities and extremely difficult communes under Program 135 in six provinces:

- Exempt contributions for school construction and tuition fees. Support textbooks and stationery.

- Compile textbooks and teaching materials, implement the teaching and learning of ethnic languages at appropriate levels. Conduct ethnic language training for teachers, health workers, civil servants, and cadres who are not ethnic minorities working in ethnic regions.

- The State covers all costs for food, accommodation, and study at ethnic boarding schools (district and provincial levels). For students eligible for boarding but studying at public or semi-public schools, they will receive a scholarship equivalent to 50% of the boarding scholarship.

- Implement policies for sending and utilizing ethnic minority children for vocational training, university, and secondary specialized education. Prioritize those willing to return home after graduation to work. Local authorities must plan and arrange local ethnic cadres to work in state agencies, political organizations, and social organizations. Gradually, the majority of health and education cadres in rural ethnic regions should be ethnic minorities.

- Implement housing policies for teachers working in extremely difficult communes in the region.

h/ Regarding healthcare:

- The State allocates budget to provide free medical examination and treatment services at health stations, centers, and hospitals for ethnic minorities.

- For extremely poor ethnic households in Category III communes starting from 2002, free medical examination and treatment will be provided; health facilities will implement this from the poverty relief fund established and managed by the provincial Health Departments.

- Open regular doctor training courses for ethnic minority candidates from Categories II and III regions. Provide appropriate allowances and implement housing policies for health workers stationed in extremely difficult communes in the region.

i/ Regarding culture:

- Increase funding for the implementation of radio, television, and film programs in ethnic languages at local levels down to villages, communes, and towns, as well as cultural preservation and promotion activities, including both tangible and intangible cultural heritage.

- Increase broadcasting time for ethnic language radio and television programs in the region.

- Provide funding to strengthen artistic groups and film teams to serve ethnic communities, especially those in remote mountainous areas and border regions.

k/ Regarding policies for economic sectors:

- For state-owned enterprises:

Effectively implement the restructuring of state-owned enterprises, shareholding, leasing. For forestry and agricultural farms in the area, review land funds, temporarily transfer unused or inefficiently used land to localities for long-term stable allocation to farmers. Remaining land must be transferred according to the content of Decree No. 01/ND-CP dated January 4, 1995 and Decree No. 187/1999/NĐ-CP dated September 16, 1999 of the Government, forestry and agricultural farms will only provide services related to seeds, materials, technology, processing, and marketing of agricultural products.

Support working capital for state-owned enterprises as stipulated in Decree No. 20/1998/NĐ-CP dated March 31, 1998 of the Government and other current regulations.

Continue to develop state-owned enterprises in conjunction with national defense security, particularly the continued formation and improvement of economic zones linked to national defense in critical areas along borders to attract residents (including both local and external residents) to participate in production in a manner where farmers receive production land near residential clusters, villages, and hamlets that align with production directions and national defense tasks. Each residential cluster must truly become an economic and cultural center oriented towards civilization while preserving ethnic identity.

- For cooperatives: Implement cooperative transformation according to the Law on Cooperatives, while quickly forming cooperative groups and cooperatives genuinely voluntarily joined by farmers to assist each other in technical services, seeds, materials, marketing, and processing of agricultural products.

- For household economies, farmstead economies, and private businesses are encouraged and provided conditions to develop in order to exploit potential capital and labor skills. Localities must create favorable conditions to assist investors in establishing production bases in agriculture and forestry, creating additional jobs, increasing income for local people, and greening vacant lands and barren hills.

- Encourage enterprises and economic sectors to enter into contracts with farmers for the purchase of agricultural products and provision of capital and material services for production, primarily enterprises, organizations, and individuals engaged in production and business based on local raw materials for processing agricultural and forest products. It is necessary to organize production methods to integrate production, processing, and consumption during the process of producing goods under a market mechanism.

Article 7. Implementing organization.

1. Provincial People's Committees must identify the contents of this Decision as the main tasks of the Party Committee and local administration to concretize into specific programs and plans of each specialized sector and each level of provincial, district, and commune authorities to organize implementation.

First, select and determine some target programs and specific contents of each locality with urgent requirements to organize and direct implementation from the beginning of 2002, and have detailed plans to implement the contents of this Decision in subsequent years.

The Chairman of the Provincial People's Committee is responsible for closely coordinating with central ministries and sectors in the work of building and organizing the implementation of proposed programs and projects.

2. Ministries and sectors shall base their functions, responsibilities, and authorities to take the lead in directing the implementation of specific programs and projects within their scope of guidance according to the goals and contents of this Decision together with provinces in the region.

Based on approved programs and projects, detailed annual plans must be established starting from 2002 to organize direction, inspection, and urging implementation according to the objectives of the programs and projects set out in this Decision.

3. The Ministry of Planning and Investment, the Ministry of Finance, based on approved programs and projects, allocate annual investment budgets to implement according to the set goals.

Article 8. This Decision takes effect fifteen days after the date of signature.

Article 9. Ministers, Heads of ministerial-level agencies, and heads of government-affiliated agencies, Chairmen of the People's Committees of Lào Cai, Cao Bằng, Hà Giang, Bắc Kạn, Sơn La, and Lai Châu are responsible for implementing this Decision.