Decision No. 2836/QD-BCT Approving the Master Plan for Industrial Development in the Central Key Economic Region until 2020, with a Vision to 2030

Pursuant to …;
Approving the planning for the development of industry in the Central Key Economic Region until 2020, with a vision to 2030
Pursuant to Decree No. 95/2012/ND-CP dated November 12, 2012 on the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to Decree No. 92/2006/ND-CP dated September 7, 2006 and Decree No. 04/2008/ND-CP dated January 11, 2008 amending and supplementing certain articles of Decree No. 92/2006/ND-CP dated September 7, 2006 of the Government on the establishment, approval, and management of overall planning for economic and social development;

Considering the proposal of the Director of the Planning Department,

Article 1.

DECISION:

Approves the planning for the development of industry in the Central Key Economic Region until 2020, with a vision to 2030, with the main contents as follows: a) Developing industry in the Central Key Economic Region in accordance with the national industrial development strategy and planning, and in line with the regional economic and social development planning. Promoting comprehensive and solid industrial development, serving as a driving force for economic and social development in the Central Highlands and Central Vietnam, based on leveraging internal resources combined with attracting external resources, ensuring regional linkage in investment and development;

1. Development Orientation

b) Focusing investment on some sectors where the Central Key Economic Region has comparative advantages and competitive strengths. Gradually developing high-tech industries with low raw material and energy consumption, and dual-use industries serving security and defense;

c) Adjusting the economic structure and labor structure of the Central Key Economic Region towards reducing labor-intensive primary processing industries and increasing high-tech industries with high-quality human resources;

d) Enhancing the competitiveness of products and industrial enterprises. Promoting sustainable industrial development in conjunction with environmental protection, historical and cultural relics, and natural landscapes.

a) The annual growth rate of added value in industry from now to 2015 will reach 9-10%, and from 2016 to 2020 will reach 12-13%;

2. Development Goals

b) The annual growth rate of industrial production value from now to 2015 will reach 10-11%, and from 2016 to 2020 will be 14-15%;

c) Industry and construction will account for 44-45% in 2015, rising to 45-46% in 2020. Among which, the industry sector will account for 35-36% in 2015, rising to 36-37% in 2020.

3.1. By 2020

3. Orientation for Development

- The Central Key Economic Region will basically become a modern industrial region, making significant contributions to the process of industrialization and modernization nationwide. Developing some distinctive industrial product brands for the region, participating in export chains and key production chains of the country;

- Strengthening the exploitation of advantages in labor resources, geographical location, and marine and mineral raw materials to serve industrial processing;

- Enhancing cooperation and linkage between industrial sectors and enterprises within the region with other localities to effectively and efficiently utilize resources, improve product and enterprise quality, and enhance competitiveness. Forming a division of production and participation in each stage of product manufacturing;

- In terms of industry structure: Focusing on developing priority and spearhead industries with advantages in raw materials and markets such as: Mechanical industry; seafood and food processing; construction materials production; chemical and petrochemicals; electricity production. At the same time, focusing on rapidly developing leading industries and high-tech products such as: Precision machinery; electronics industry; supporting industries forming a network of satellite production, supply, and export for domestic and foreign companies;

- In terms of technology: Applying advanced technology to new industrial facilities; upgrading and innovating technology suitable for industrial enterprises to improve product quality, save raw materials and energy, and meet environmental protection requirements according to legal regulations;

- Developing industrial clusters and small-scale traditional industries to meet rural industrial production needs, thereby effectively implementing the Resolution of the 7th Plenum of the 10th Party Congress on agriculture, farmers, and rural areas.

3.2. Vision to 2030

- Industry in the Central Key Economic Region will serve as a driving force for economic and social development in the entire region.

- Focusing mainly on deep processing sectors with modern technology and equipment, producing industrial products with reputable brands, high competitiveness, and quality meeting regional and international standards;

- Participating in some stages of global industrial production chains for mechanical manufacturing, electronic equipment production, and production of various types of materials and components;

- Emphasizing the production of unique and characteristic small-scale traditional products of the region closely linked to the cultural identity of the locality to serve domestic and international tourism needs.

4. Development Planning

4.1. Mechanical and Metallurgical Industries

4.1.1. By 2020

- The metallurgical industry focuses primarily on the production of alloy steel for mechanical manufacturing in Da Nang and Quang Ngai;

- The mechanical industry focuses on large-scale production of molds in Da Nang and Quang Ngai; pressure processing in Quang Ngai, Quang Nam, and Da Nang; steel structure production, welding rods and welding materials, and new and renewable energy equipment production in Quang Ngai and Binh Dinh;

- Supporting industries for the mechanical and metallurgical sectors in Quang Ngai, Da Nang, and Binh Dinh;

- Production of machines and equipment, focusing on agricultural machinery, forestry, and aquatic product processing equipment production in Da Nang, Quang Nam, Quang Ngai, and Binh Dinh; safety and environmental treatment equipment in Da Nang and Quang Ngai;

- Production of industrial electrical equipment and household appliances in Da Nang, Binh Dinh, and Quang Nam; electromechanical equipment in Da Nang;

- Production of medical equipment and precision machinery in Binh Dinh, Thua Thien Hue, and Da Nang.

- Production of medical equipment and precision machinery in Binh Dinh, Thua Thien Hue, Da Nang.

- Production of automobiles, prioritizing high-quality trucks, buses, specialized vehicles, in Quang Nam.

- Production of other transportation means, focusing on shipbuilding, with priority given to large ships and specialized ships, logistical ships, ships for preliminary processing and production, assembly of forecasting, warning equipment, marine, aerial, and coastal shelf exploration equipment in Da Nang, Quang Ngai, and Binh Dinh.

4.1.2. Vision until 2030

- Expand and invest in enhancing production and assembly capacity of complete machines and equipment based on the strong development of supporting industries in automobile manufacturing, household electrical appliances; agricultural and aquatic product processing machinery and equipment, with criteria of low energy and material consumption, meeting environmental requirements and standards;

- Strengthen research, design, and cooperation with foreign countries to be able to produce important parts and components by 2030, thereby deeply participating in the supply chain of mechanical industry supporting industries in the region and globally;

- Promote cooperation with countries having developed mechanical manufacturing industries in research and implementation work; apply and develop new and modern technologies to invest deeply, expand production of spare parts and components for the mechanical industry.

4.1.3. Regional linkage orientation

- The heavy machinery and equipment manufacturing industry is mainly located in Dung Quat, Quang Ngai;

- Orientation for the production of road transport vehicles, mainly automobiles, in Quang Nam; waterway transport vehicle production is implemented throughout the Region but concentrated on a large scale in Quang Ngai, with specialized waterway transport in Da Nang;

- Supporting industry for the mechanical and metallurgical industries is oriented towards Quang Nam, Da Nang, and Quang Ngai;

- Electrical equipment and energy equipment are focused on production in Da Nang and Binh Dinh;

- The industry producing agricultural machinery is encouraged to invest in production in localities, but mainly concentrated in Quang Nam and Binh Dinh;

- Production of medical equipment and precision machinery is encouraged to concentrate in Thua Thien Hue, Da Nang, and Binh Dinh.

4.2. Electrical and electronic equipment manufacturing industry

4.2.1. By 2020

- Production of electronic components, electronic assembly, solar energy batteries in Da Nang, Quang Nam, Thua Thien Hue, and Binh Dinh.

- Assembly of computers and information technology equipment, application software at high-tech zones in Da Nang and Thua Thien Hue.

- Expand human resource training systems for the electronics and information technology industries and establish centers for measuring, testing, and certifying electronic equipment and information technology equipment in Da Nang.

4.2.2. Vision until 2030

- Deep investment with the requirement of mastering design and production of most advanced and modern high-tech products; production equipment based on green, clean production, low material and energy consumption, with high added value;

- Production of high-quality household appliances using new materials;

- Design and manufacture of protective, security, safety, fire prevention devices; electronic measurement and control devices, medical equipment;

- Production of software and hardware equipment to meet most needs.

4.2.3. Regional linkage orientation

Da Nang City is identified as the central city due to its advantage in human resources and the trend of promoting services with high-tech product groups requiring well-trained human resources; focusing on supporting electronics industry, production and assembly of various types of computers, information technology and telecommunications equipment, electrical, refrigeration, consumer and specialized electronic equipment, leading to the manufacture of execution systems with embedded software serving automation processes in processing, oil refining, mining, traffic control industries. Priority is given to attracting direct foreign investment in high-tech industrial zones in the Region. Establishing some large-scale factories with modern technology in the field of computer assembly, production of communication equipment, especially air, sea, and underwater communication.

4.3. Processing Industry of Agriculture, Forestry, Aquaculture, Fisheries, and Food

4.3.1. By 2020

a) Fishery Processing

- Maintain and develop traditional fishery product processing throughout the region such as dried food, fish sauce, production for local consumption and souvenir needs for tourists. Utilize by-products and waste to create new products, increasing production efficiency such as animal feed, fish meal.

- Stabilize raw material sources for the entire region, invest in researching production technology, study foreign customer preferences, closely monitor the origin and quality of seafood, focus on developing high-quality processed seafood products in large quantities for export. Existing seafood processing enterprises in Thua Thien Hue, Binh Dinh, and Quang Ngai should focus on investing in technology to serve high-end domestic demand, tourist service, and preliminary processing for export product production bases in Da Nang.

b) Wood, Paper, and Forest Product Processing

- Wood and forest product processing: Continue to invest in developing the export-oriented wood processing cluster in Binh Dinh, focusing strongly on business linkages within the cluster to reduce costs and increase added value through product design and quality improvement. Based on this core, build satellite wood processing systems and raw material regions in other localities (Thua Thien Hue, Quang Nam, Quang Ngai) to support the main cluster in Binh Dinh, serving high-end domestic demand and minimizing environmental impacts.

- Paper and pulp processing: The paper pulp and paper product industry must be planned for development in concentrated areas with sufficient scale to ensure modernization conditions, economic efficiency, and centralized treatment of pollution-causing waste.

c) Beverages

The beer, wine, and soft drink manufacturing industry must continue to modernize technology, gradually replacing existing technology and equipment with advanced and leading-edge technology from around the world, ensuring quality standards, food safety and hygiene, and environmental protection according to Vietnamese and international regulations, ensuring that products have competitive capabilities in both domestic and foreign markets. Priority should be given to using domestically manufactured equipment of equivalent quality to imported equipment.

- For beer production

+ Invest to increase the capacity of existing breweries to meet domestic consumption needs and for export.

+ Create conditions for beer production units in the Region to cooperate, joint venture, and link up with large domestic and foreign breweries to absorb advanced management levels, modern technical skills, improve product quality, and ensure competitiveness when integrating.

- For wine production: Promote the production of specialty and traditional wines, enhance quality, brand reputation, and market credibility, aiming for exports from provinces such as Quang Nam and Binh Dinh.

- For mineral water and soft drink production: Encourage economic entities to participate in producing soft drinks from local raw materials, such as establishing a factory to process bird's nest soft drinks and bird's nest in Hoi An for domestic consumption and export. Invest in increasing the capacity of mineral water factories in Quang Nam, Quang Ngai, and other locations in the Region.

- For milk processing: Upgrade existing milk processing facilities to ensure modern equipment and food safety. Construct new milk processing plants in some provinces within the Region with potential climate, land, and labor conditions suitable for dairy farming, such as in Da Nang and Binh Dinh. Invest in soy milk processing plants and other milk products in Quang Ngai.

4.3.2. Vision until 2030

Seafood processing: Stabilize production at existing seafood processing facilities. Encourage and support individual seafood processors to form cooperatives or enterprises to enhance production capacity and product competitiveness. Depending on the market, invest in upgrading the production capacity of processing plants.

Wood and paper processing: Vigorously develop the wood-based panel and wood export processing industries. Gradually shift household woodworking from primarily using natural forest wood to plantation wood and industrial wood panels.

Beer, wine, and soft drink production industries: In the period 2021-2030, the beer industry will mainly invest in deepening existing breweries without building new ones. Encourage economic entities to invest in large-scale soft drink production with modern equipment and technology, ensuring food safety and environmental protection; use domestic raw materials and establish raw material regions, prioritizing the production of soft drinks from fresh fruits and nutritious beverages.

Other agricultural and forestry product processing: Continue to deepen investment, expand sales markets to fully utilize the capacity of existing factories. Attract and continue to encourage the development of livestock feed production projects, livestock breeding, and food processing projects in provinces within the Region, and expand investments when conditions permit.

4.3.3. Regional linkage orientation

Invest in building processing centers in provinces with advantages in raw materials and good transportation conditions, specifically:

- A seafood processing center in Da Nang: Although limited in local raw materials, Da Nang can exploit nearby sources and collaborate with other regions to develop concentrated raw material areas serving the seafood processing industry;

- A wood processing center in Binh Dinh: Establish satellite systems for wood processing and raw material regions in other localities (Thua Thien Hue, Quang Nam, Quang Ngai) providing significant support to the main cluster in Binh Dinh; serving high-end domestic demand and reducing environmental impacts;

- Paper pulp processing: Concentrate in Quang Nam and Binh Dinh;

- Beverage processing: A beer production center in Thua Thien Hue and Da Nang with products already established in the domestic and export markets. Additionally, develop other beverage products such as specialty wines in Quang Nam; mineral water in Da Nang and Quang Nam; soft drinks in Quang Nam and Binh Dinh; and milk processing in Da Nang, Quang Ngai, and Binh Dinh.

4.4. Chemical Industry

4.4.1. By 2020

a) For oil refining and petrochemical products

- Expand the capacity of the Dung Quat Oil Refinery in Quang Ngai; call for investment in a petrochemical plant project at the Nhon Hoi Economic Zone in Binh Dinh after approval by the Prime Minister to include it in the planning;

- Complete the investment and put into operation the liquefied petroleum gas (LPG) filling plant at the Nhon Hoi Economic Zone in Binh Dinh; process and distribute gas at Dung Quat, Quang Ngai;

- Invest in a polystyrene (PS) plastic production plant, a polyethylene (PE) plant, a black carbon production plant, and an N-paraffin production plant at Dung Quat, Quang Ngai; invest and put into operation a bitumen production plant at the Nhon Hoi Economic Zone in Binh Dinh.

b) For various types of fertilizers

- Invest in a factory to produce organic bio-fertilizer from waste in localities within the Region;

- Build a factory to produce organic fertilizer from sugarcane residue at sugar mills in Binh Dinh and Quang Ngai.

c) For basic chemical products

- Promote the completion and commencement of soda ash production at the Tam Hiep Industrial Park and the Chu Lai Open Economic Zone in Quang Nam;

- Invest in constructing a CA/EDC/VCM complex - caustic soda and caustic-chlorine production lines in Quang Nam and Quang Ngai.

d) For rubber products

- Complete the truck radial tire production plant in Da Nang;

- Invest in building a factory to produce natural latex products in Binh Dinh and Quang Ngai;

- Invest in building a factory to produce certain raw materials such as steel core nails, steel fabric belts, conveyor belts, and timing belts in Quang Nam and Binh Dinh.

e) For cleaning agents

- Invest in a LAB production plant;

Invest in a cosmetic manufacturing plant at Chân Mây Industrial Zone within the Chân Mây - Lăng Cô Economic Zone, Thua Thien Hue Province.

e) Group of industrial gas products: Invest in building an oxygen and liquid nitrogen production plant in Da Nang and Quang Ngai.

g) For plastic products

- Joint venture to invest in building an OPP, CPP film production plant in Da Nang;

- Invest in a plastic auto parts manufacturing plant at the Trường Hải Auto Industry Industrial Park, Quang Nam; build fiberglass reinforced plastic (FRP) ship hulls and composite material vessels at the Nhon Hoi Economic Zone, Binh Dinh;

- Invest in a plastic door manufacturing plant at the Chu Lai Open Economic Zone, Quang Nam; produce PVC, PPR, HDPE pipes at the Nhon Hoi Economic Zone, Binh Dinh;

- Invest in a plastic mold manufacturing plant and a plastic and composite product production plant at the Chân Mây Industrial Zone within the Chân Mây - Lăng Cô Economic Zone, Thua Thien Hue.

h) For pharmaceutical chemical products

- Invest in a herbal extraction and semi-synthesis plant in Thua Thien Hue;

- Invest in a high-quality excipient production plant in Binh Dinh.

i) For paint products: Expand the Royal Paint Company at the Phú Bài Industrial Park, Thua Thien Hue.

4.4.2. Vision until 2030

a) Group of oil refining products: During the period from 2021 to 2030, when market demand increases, continue researching and implementing investments in additional oil refineries. Invest in building an Olefin and PE, PP, EDC/VCM production plant in Quang Ngai and Binh Dinh.

b) Group of fertilizer products: Basically, the current production has met the agricultural fertilizer needs and there is still some for export, so only maintain and develop the fertilizer production system with modern technology, high productivity, and good quality products, completely eliminating small-scale production facilities with low-quality and inconsistent products.

c) Basic chemical products group: Projects producing basic chemicals need to be directed towards industrial parks and concentrated industrial clusters to have conditions for environmental impact treatment. In the next phase, depending on the market, increase the capacity of the soda ash plant in Chu Lai, Quang Nam, and study building an additional CA/EDC/VCM caustic soda-chlorine production line in Quang Nam or Quang Ngai.

d) Rubber product group: Continue creating favorable conditions to encourage economic components to participate in developing rubber products, especially foreign investment with advantages in capital and technology participating in the production of high-tech products such as radial car tires, motorcycle and bicycle inner tubes made of synthetic rubber, and other technical rubber products.

đ) Cleaning agent product group: In the future, continue investing in equipment and technology upgrades to maintain production of certain high-quality products to supply the Central Highlands-Western Highlands regional market and invest in producing goods that the market currently needs, such as various types of liquid cleaning agents with relatively large market potential.

e) Paint and ink product group: Develop new investment in paint production facilities specializing in high-quality paints including technical paints.

g) Various gas product group: Enterprises need to invest in increasing production capacity, focusing on technological and equipment upgrades, improving product quality and reducing costs to enhance competitiveness and maintain market share. Study the possibility of investing in developing solid CO2 (dry ice) to contribute to diversifying industrial gas products.₂ 4.4.3. Regional linkage orientation

- Pharmaceutical and chemical drug production in Thua Thien Hue, Da Nang, Binh Dinh;

- Production of household plastics, technical plastics, and composites in Thua Thien Hue, Da Nang;

- Production of various fertilizers, basic chemicals, and petrochemical products in Quang Nam, Quang Ngai, Binh Dinh.

Regional linkage orientation for the basic chemical products group:

Projects producing caustic soda should be close to aluminum and paper production projects in Quang Nam, Quang Ngai, Binh Dinh... Especially large projects should be located within planned petrochemical industrial zones for EDC-VCM-PVC to utilize chlorine resources and solve balance issues in caustic soda production. Regional linkage orientation for rubber products:

The Central region with Da Nang city as the center and some provinces using raw materials from the Western Highlands: Strongly develop the automobile tire and tube industry, including radial truck tires, motorcycle and bicycle tires, and technical rubber products from natural rubber. Additionally, develop the production of rubber raw materials such as steel cord, carbon black, fillers, and additives from the Dung Quat petrochemical industrial park. Regional linkage orientation for cleaning agent products:

Encourage the development of cleaning agents, particularly the production of raw materials linked to the petrochemical industry. 4.5. Building Materials Manufacturing Industry

4.5.1. By 2020

a) Cement and cement additives

- Complete cement projects in Thua Thien Hue and Quang Nam Provinces;

- Invest in building and expanding clinker grinding stations in Quang Nam, Dung Quat Economic Zone, Quang Ngai, Da Nang, and cement grinding and transfer stations in Binh Dinh;

- Call for investment in a cement additive grinding and bagging plant in Quang Ngai.

b) Stone and brick materials

- Deepen investment to improve the quality and stabilize the capacity of existing facilities in the Region;

- Invest in building a construction stone production plant in Quang Nam; complete and put into operation a granite processing plant in Binh Dinh;

- Invest in producing terastone-brettostone, terrazzo, super-light bricks in Quang Ngai; high-quality non-fired bricks in Quang Nam and Quang Ngai; produce tuynel bricks in Quang Ngai and Binh Dinh; encourage the development of continuous vertical kilns in Binh Dinh; attract investment in non-fired brick plants (building bricks, pavement bricks, etc.) from ground limestone in Binh Dinh; invest in producing non-fired bricks and terrazzo bricks pressed from sand, cement, and limestone powder in Quang Ngai.

c) Roofing materials

- Build a plant for producing roofing sheets for residential and industrial buildings throughout the Region;

- Construction of factories for the production of roofing sheets for civil and industrial projects throughout the Region;

- Expand the tile and sheet production factory without asbestos in Quang Nam province, and the corrugated steel sheet production factory in Quang Ngai province.

d) Concrete production

- Continue to stabilize existing concrete mixing stations and produce concrete components as in previous stages. Depending on market demand, invest in building new mixing stations and producing concrete components in industrial zones to timely serve residential area construction and power and water conservancy projects.

- Expand the prefabricated concrete factory in Quang Nam province, Tinh Phong industrial zone in Quang Ngai province, and Binh Dinh province.

- Invest in building a prestressed centrifugal concrete production factory and a prefabricated concrete component production factory in Quang Ngai province.

- Attract investment to develop dry mortar production factories and autoclaved aerated concrete production factories in Binh Dinh province.

- Invest in building a concrete component production factory in Tam Ky city, Quang Nam province.

đ) Sanitary ware production

- Develop a diverse range of sanitary wares with various sizes, styles, and colors to meet consumption needs, while producing matching sanitary ware accessories to gradually replace imported products.

- Maintain the stability of existing sanitary ware production facilities in the region, and invest in building a sanitary ware production factory in Da Nang city, and a high-tech ceramic factory in industrial zones in Thua Thien Hue province.

e) Glass production

- Call for investment in glass processing factories (tempered glass, laminated glass, etc.) in industrial zones in Thua Thien Hue and Quang Nam provinces.

- Call for investment in new projects to produce products from white sand such as construction glass, fiberglass wool, glass blocks, and household glass.

g) Other building materials products: Invest in building a facility to produce plastic-based building materials products such as floor tiles, wall panels, ceiling panels, plastic window frames, and oil paper production facilities for covering, waterproofing, and moisture-proofing purposes to fully utilize products and derivatives from the petrochemical industry.

4.5.2. Vision until 2030

Based on available mineral resources and trends in the use of building materials during the 2021-2030 period, the building materials production industry in the Central Coast Economic Zone will develop towards:

- Developing science and technology, applying new technologies and modern equipment in building materials production to improve product quality and reduce costs, thereby enhancing competitiveness in the market.

- Continuing to develop key products such as cement, lightweight concrete, non-fired bricks, high-quality paving stones, high-end ceramics, gravel, and new types of building materials. At the same time, choose appropriate scales of investment for products that can compete in both domestic and export markets.

- Investing in developing quarrying and processing of large and medium-sized stone slabs with advanced technology and equipment to improve product quality to international standards, enabling competition with stone slab products in both domestic and foreign markets.

4.5.3. Regional Linkage Orientation

The building materials production industry in the Central Coast Economic Zone is planned based on the strengths of mineral resources of each province in the region. For common building materials and roofing materials, production and consumption facilities are mainly located locally. Cement is planned to be produced in Thua Thien Hue and Quang Nam provinces; quarrying and processing of stone slabs are concentrated mainly in Quang Nam, Quang Ngai, and Binh Dinh provinces, supplying to all provinces nationwide and for export.

4.6. Textile and Footwear Industry

4.6.1. By 2020

a) For the Textile Industry

- Establish a textile and garment complex based on Hue Textile Company, expanding production scale and gradually modernizing central garment export facilities according to the Government's Textile Industry Development Program.

- Call for investment in building a yarn-spinning-weaving-dyeing industrial cluster in Hoa Khanh Industrial Zone, Da Nang city, investing in denim fabric production in Son Tra, Da Nang city; completing investment and developing a production-commerce-service complex in Phu Cat district, Binh Dinh province.

- Invest in polyester fiber production at Dung Quat, Quang Ngai province, and build a yarn factory in Que Son, Quang Nam province.

- Construct garment factories in Huong Tra Industrial Zone, Thua Thien Hue province.

- Invest in accessory factories supporting garment products such as buttons, zippers, and elastic bands in Binh Dinh province.

b) For the Leather and Footwear Industry

- Invest in woven shoe production projects in Hue and Binh Dinh provinces; invest in sports shoe production projects in Quang Ngai and Binh Dinh provinces.

- Invest in sandal and indoor slipper production projects in Quang Nam and Binh Dinh provinces.

- Invest in leather goods production projects such as bags, wallets, and purses made from crocodile and ostrich leather in Binh Dinh, Da Nang, and Quang Nam provinces.

c) For the Development of Raw Materials and Auxiliary Materials for Textiles and Leather Footwear

- Concentrated cotton planting in Quang Nam, Quang Ngai, and Binh Dinh provinces.

- Call for investment in high-quality finished fabric dyeing factories in Da Nang city.

- Call for investment in denim fabric dyeing factories, button and zipper factories, embroidery factories, and sewing thread factories in Quang Nam province.

- Invest in synthetic leather production projects, footwear auxiliary material production factories, mold and cutting tool production factories, and shoe sole and form production factories in Quang Nam and Binh Dinh provinces.

4.6.2. Vision until 2030

- Attract investment in raw material and auxiliary material centers serving the development of the textile and footwear industries, prioritizing the development of support industries for the garment sector, and developing the industry according to a satellite model.

- Attract investment in fashion design training centers.

4.6.3. Regional Linkage Orientation

- For the Textile-Garment Industry: Da Nang city will be the center for forming an export-oriented garment industrial cluster and a centralized dyeing industrial zone in Hoa Khanh Industrial Zone; yarn spinning and weaving in Hue, Da Nang, and Quang Nam cities; ready-to-wear clothing in Da Nang, Quang Nam, Quang Ngai, Binh Dinh, and Thua Thien Hue provinces.

Raw materials and auxiliary materials for the garment industry will be concentrated in Binh Dinh and Quang Nam provinces.

- For the Leather-Footwear Industry: Da Nang City is the center to control the development in the Central Coastal region, forming a footwear processing industrial cluster, bags, wallets for the Leather and Footwear industry. Encourage enterprises to transfer production to remote areas from large cities (Quang Ngai, Qui Nhon, Hue...) to reduce labor pressure;

Hat manufacturing facilities, bags, wallets, leather products processed from crocodile and ostrich skin will be developed in Binh Dinh, Da Nang, Quang Nam provinces; various types of footwear concentrated in Da Nang, Quang Nam, Binh Dinh provinces;

Raw materials for the leather-footwear industry: Quang Nam, Binh Dinh.

4.7. Mining and mineral processing industry

4.7.1. By 2020

a) Mining and processing titanium ore

- Accelerate the progress of investment in building a titanium concentrate processing plant in Quang Nam;

- Invest in expanding titanium mining facilities in Binh Dinh;

- Invest in expanding the capacity of the ilmenite recovery plant in Thua Thien-Hue, Binh Dinh;

- Maintain and enhance the capacity of existing superfine zircon production lines in Thua Thien-Hue; build a superfine zircon processing plant in Thua Thien-Hue;

- Expand the scale of the titanium slag plant in Thua Thien-Hue, invest in one artificial rutile or titanium slag plant in Thua Thien-Hue, Binh Dinh;

- Invest in pigment production plants; products such as metallic titanium, expanded titanium, fluxing aids, fluorescent powder in Binh Dinh.

b) Mining and processing gold ore: Invest in A Luoi gold mining, Thua Thien-Hue; expand deep processing gold plant in Quang Nam.

c) Mining and processing iron ore: Complete investment in iron ore mining and processing plants in Binh Dinh, Thua Thien-Hue.

d) Mining and processing graphite: Mine and process graphite in Quang Ngai.

đ) Mining construction and decorative stone:

- Invest in construction stone mining at mines in Thua Thien-Hue;

- Invest in mining facilities for Gabrodiorit and decorative diorite at Hoa Khuong mine to supply raw material for the decorative stone production plant in Da Nang;

- Invest in mining facilities for granite and gabro, basalt raw material for decorative stone production plants in Tinh Phong Industrial Park, Quang Ngai;

- Continue to intensify the exploitation of decorative stone in Duy Xuyen, Que Son, Quang Nam province for export.

e) Mining and processing kaolin and feldspar ores: Invest in feldspar ore mining and processing in Quang Nam; invest in kaolin ore processing line in Thua Thien-Hue, Quang Ngai.

g) Sand mining: Maintain the capacity of sand mining facilities that have been invested in previous stages.

4.7.2. Vision to 2030

- Focus on investment in exploration, upgrading, and expanding reserves to ensure reliable resources for the operation of mining projects in the Region;

- Cease exporting raw minerals, encourage investment in advanced, integrated, environmentally friendly technologies. Promote deep processing, increase added value, product quality, and business efficiency of mineral processing facilities;

- Link mining and processing with thorough waste treatment, land reclamation, and environmental restoration during mining.

4.7.3. Regional linkage orientation

- Build deep processing centers for titanium ore in Thua Thien-Hue, Quang Nam, Binh Dinh provinces. Titanium ore mined from five provinces in the Central Coast Economic Zone serves as raw material for deep processing plants: zircon super-fine processing plant; pigment plant; titanium slag production plant;

- Mine and process gold ore in Thua Thien-Hue, Quang Nam;

- Mine and process limestone, cement clay in Thua Thien-Hue, Quang Nam to supply cement factories. These provinces will become centers supplying cement in the Region;

- Mine decorative stone in Thua Thien-Hue, Quang Nam, Quang Ngai, Binh Dinh.

4.8. Power Industry

4.8.1. By 2020

a) Regarding power sources

Based on the list of projects to be operational during the period 2011-2020 issued together with Decision No. 1208/QD-TTg dated July 21, 2011 by the Prime Minister and specific projects approved by the Ministry of Industry and Trade, including small hydropower projects approved by the Provinces:

- Up to 2015, invest in power generation facilities with total capacity reaching 1,268 MW, expected electricity output 4.92 billion kWh. Among which, the capacity of medium and small hydropower projects exceeds 360 MW. In the short term, it is necessary to complete and operate stably and safely new hydropower plants to fully exploit their generating capacity.

- From 2016 to 2020, invest in power generation facilities with total capacity reaching 692 MW, expected electricity output 2.92 billion kWh. Among which, the Central Hybrid Turbine Plant 1 alone has a capacity of 450 MW with expected annual output of 2 billion kWh; small and medium hydropower output exceeds 160 MW.

b) Regarding power grid

Continue to develop the transmission and distribution system synchronously to the end-users' premises; Focus on investing in high-voltage grids and lines collecting hydropower sources with key projects being high-voltage facilities by 2020 as follows:

- Up to 2015:

+ Supplement 500kV Thanh My substation in Quang Nam, 220kV Phu My substation in Binh Dinh, upgrade 220kV Quy Nhon substation;

+ Postpone the construction of 220kV Chan May, Phong Dien substation in Thua Thien-Hue; Tam Hiep substation in Quang Nam to subsequent phases according to load requirements.

- From 2016 to 2020:

+ Postpone the construction of 220kV Nhon Hoi substation to after 2020, as currently the Central Power Corporation is constructing a 110kV double-circuit line with 240mm cross-section², capable of carrying 100MW, ensuring power supply until 2020;

+ Adjust the location of 220kV Hoi An substation to Duy Xuyen according to the power development plan of Quang Nam province and the power development plan of the Central Highlands and surrounding areas;

+ Postpone the construction of 220kV Cau Hai substation in Thua Thien-Hue, Hoai Nhon substation in Binh Dinh to after 2020 according to the power development plan of the Central Coast Economic Zone.

4.8.2. Vision until 2030

a) Regarding power sources

BASED ON THE PROPOSED PROJECT LIST FOR OPERATION DURING THE PERIOD OF 2021-2030 AS ISSUED IN DECISION NUMBER 1208/QĐ-TTg ON JULY 21, 2011 BY THE PRIME MINISTER, ALL HYDROPOWER POTENTIALS IN THE AREA HAVE BEEN FULLY EXPLOITED; RENEWABLE ENERGY AND NEW ENERGY SOURCES ARE UNDER STUDY AND DEVELOPMENT BUT STILL DO NOT ENSURE STABLE SUPPLY, SO THERMAL POWER DEVELOPMENT WILL BE THE FOCUS.

b) Regarding power grid

CONTINUE TO DEVELOP SYNCHRONOUS TRANSMISSION AND DISTRIBUTION SYSTEMS FROM POWER SOURCES TO CONSUMERS IN THE AREA WITH A FOCUS ON HIGH-VOLTAGE PROJECTS UNTIL 2025, SPECIFICALLY:

- BUILDING THREE 500 KV TRANSMISSION LINES WITH A TOTAL LENGTH OF 620 KM;

- BUILDING 220 KV PROJECTS: TWELVE TRANSFORMERS WITH A CAPACITY OF 2,750 MVA, TWENTY-TWO 220 KV TRANSMISSION LINES WITH A TOTAL LENGTH OF 1,744 KM.

5. SPATIAL DISTRIBUTION PLANNING

FOR THUA THIEN-HUE PROVINCE: DEVELOP THE CHAN MAY ECONOMIC AND COMMERCIAL ZONE WITH ITS ADVANTAGES IN TRANSPORTATION (NORTH BORDERS NATIONAL ROUTE 1A AND THE NORTH-SOUTH RAILWAY; EAST BORDERS DEEPWATER PORT CHAN MAY), TEMPORARILY DEVELOP CHAN MAY PORT WITH THE ORIENTATION OF ESTABLISHING ASSEMBLY AND PROCESSING INDUSTRIES; BUILD AN INTERNATIONAL INFORMATION CENTER, A COMPREHENSIVE SYSTEM OF TRADE, TOURISM, FINANCE, BANKING SERVICES AND OTHER INDUSTRIES.

For Da Nang city: WITH ITS ADVANTAGES IN SEAPORTS AND THE INTERNATIONAL CROSS-VIETNAM AND CROSS-ASIA AIRPORT, IT WILL BECOME A KEY TRANSPORTATION HUB FOR INTERNATIONAL TRANSIT AND TRANSPORTATION IN THE REGION, THE CENTRAL HIGHLANDS, AND COUNTRIES IN THE MEKONG SUBREGION. HERE, A CLEAN AND GREEN INDUSTRIAL BASE WILL BE DEVELOPED WITH HIGH-TECH INDUSTRIES REQUIRING MODERN TECHNOLOGY, BUILDING A TECHNICAL RESEARCH AND IMPROVEMENT INDUSTRIAL ZONE, MODERN INFRASTRUCTURE FOR INDUSTRIAL GOODS TRANSACTIONS AND CIRCULATION, FINANCIAL, BANKING, SECURITIES, AND TELECOMMUNICATION CENTERS FOR THE REGION.

FOR QUANG NAM PROVINCE: INVEST IN THE CHU LAI OPEN ECONOMIC ZONE DEVELOPING UNDER THE "ZONE INSIDE A ZONE" MODEL. THIS IS ALSO THE ONLY OPEN ECONOMIC ZONE BUILT AND DEVELOPED TO TEST NEW INSTITUTIONAL AND POLICY MODELS, CREATING AN APPROPRIATE INVESTMENT ENVIRONMENT FOR DOMESTIC AND FOREIGN BUSINESS ENTITIES IN LINE WITH INTERNATIONAL PRACTICES. ADDITIONALLY, QUANG NAM WILL INVEST IN ELECTRIC NAM-ELECTRIC NGOC, AN HOA-NONG SON, AND THUAN YEN INDUSTRIAL ZONES.

FOR QUANG NGAI PROVINCE: CONCENTRATE INVESTMENTS IN THE DUNG QUAT ECONOMIC ZONE TO DEVELOP INTO A MULTISECTOR COMPREHENSIVE ECONOMIC ZONE WITH LONG-TERM INCENTIVE POLICIES. HERE, THE DEVELOPMENT OF PETROLEUM REFINING, CHEMICALS, AND RELATED INDUSTRIES WILL BE PROMOTED, FOLLOWED BY THE DEVELOPMENT OF MECHANICAL INDUSTRIES, SHIPBUILDING AND REPAIR, STEEL SMELTING AND ROLLING.

FOR BINH DINH PROVINCE: INVEST IN THE DEVELOPMENT OF THE NHON HOI COMPREHENSIVE ECONOMIC ZONE TO CREATE ADDITIONAL MOTIVATION WITH A CORE POSITION TO PROMOTE THE ECONOMIC AND SOCIAL DEVELOPMENT OF THE REGION THROUGH PROCESSING INDUSTRIES OF AGRICULTURAL, FORESTRY, AND MARINE PRODUCTS, NEWSHIPBUILDING AND REPAIR, PETROCHEMICALS, ELECTRONICS, AND MATERIALS; BUILD A LARGE TRANSFER WAREHOUSE.

6. SOLUTIONS

6.1. CAPITAL SOLUTIONS

- MAXIMIZE SUPPORT FUNDS FROM THE CENTRAL BUDGET: ODA FUNDS, GRANTS TO INVEST IN KEY INDUSTRIES OF THE REGION.

- DEVELOP A SYSTEM OF INCENTIVE POLICIES THAT ARE CLEAR AND EFFECTIVE, AND ORGANIZE EFFECTIVE INVESTMENT PROMOTION ACTIVITIES TO ATTRACT DOMESTIC CAPITAL FROM BUSINESSES, ECONOMIC SECTORS, AND FOREIGN INVESTMENTS INTO THE INDUSTRY.

- IMPLEMENT INCENTIVES FOR BUSINESSES TO INCREASE THEIR OPERATING SCALE AND INVESTMENT EFFICIENCY.

- UTILIZE LAND USE PREFERENCES FOR BUSINESSES WITH HIGH INVESTMENT EFFICIENCY AND HIGH VALUE ADDED.

6.2. TECHNOLOGY SOLUTIONS

- EACH YEAR, PROVINCES IN THE REGION ALLOCATE 1.5-2% OF THEIR GDP FOR INVESTMENT IN SCIENTIFIC AND TECHNOLOGICAL RESEARCH AND APPLICATION;

- FOCUS ON ATTRACTING HIGH-TECH AND SOURCE TECHNOLOGY PROJECTS FROM THE UNITED STATES, JAPAN, AND WESTERN EUROPE. DEVELOP SPECIAL MECHANISMS TO ATTRACT INVESTORS, LEVERAGE TECHNOLOGY TRANSFER AND COOPERATION CHANNELS, ESPECIALLY FOREIGN DIRECT INVESTMENT (FDI) TO RESEARCH AND APPLY SCIENTIFIC AND TECHNOLOGICAL KNOWLEDGE.

- CONCENTRATE ON BUILDING BRANDS AND DEVELOPING HIGH-TECH PRODUCTS. FORM SOME HIGH-TECH INDUSTRIES, PRODUCTS, AND COMPANIES.

- INVEST IN LABORATORIES WITH NATIONAL AND REGIONAL CAPABILITIES TO SUPPORT THE REGION'S INDUSTRIAL DEVELOPMENT.

- DEVELOP SOME RESEARCH AND TECHNOLOGY DEVELOPMENT CENTERS WITH SUFFICIENT CAPACITY IN PRIORITIZED INDUSTRIES TO FORM TECHNOLOGY INCUBATORS AND STRENGTHEN TECHNOLOGY TRANSFER IN THE REGION AND NEIGHBORING LOCATIONS.

6.3. HUMAN RESOURCE SOLUTIONS

- DEVELOP SPECIAL MECHANISMS TO ATTRACT HIGH-QUALITY HUMAN RESOURCES BOTH DOMESTICALLY AND INTERNATIONALLY, FOCUSING ON SALARY POLICIES, WORK ENVIRONMENTS, AND SUPPORT FOR HOUSING, LIVING SPACE, CULTURAL LIFE FACILITIES, AND RELATED WORK CONDITIONS.

- EXPAND LABOR COOPERATION WITH ABROAD AND DEVELOP EDUCATIONAL TRAINING INSTITUTIONS SUITABLE FOR LABOR REQUIREMENTS, ESPECIALLY LINKING WITH TRUSTED EDUCATIONAL INSTITUTIONS DOMESTICALLY AND INTERNATIONALLY TO ESTABLISH INTERNATIONAL QUALITY TRAINING INSTITUTIONS IN THE REGION, FOCUSING ON COURSES SERVING THE DEVELOPMENT OF KNOWLEDGE-BASED ECONOMIES, ESPECIALLY SCIENCES, TECHNOLOGIES, TOURISM, SERVICES...

- PRIORITY STATE FUNDS FOR EDUCATION AND TRAINING DEVELOPMENT, WHILE IMPLEMENTING STRONG MECHANISMS TO ATTRACT OUTSIDE HUMAN RESOURCES FOR EDUCATION, TRAINING, AND VOCATIONAL TRAINING.

6.4. MARKET AND PRODUCT SOLUTION GROUPS

- STRENGTHEN MARKET RESEARCH AND DEVELOPMENT: FOR OUTPUT MARKETS, IN ADDITION TO TRADITIONAL MARKETS SUCH AS CHINA, EAST ASIA, ASEAN, THE UNITED STATES, AND THE EU, EXPLOIT LARGE AND POTENTIAL MARKETS LIKE THE BRIC COUNTRIES (INCLUDING BRAZIL, RUSSIA, AND INDIA); FOR INPUT MARKETS, FOCUS ON THE FOLLOWING FACTORS: CAPITAL (CONTINUE TO EFFECTIVELY EXPLOIT INVESTMENT CAPITAL FROM EAST ASIA, THE UNITED STATES, AND ASEAN), TECHNOLOGY (FOCUS ON ATTRACTING HIGH-TECH AND SOURCE TECHNOLOGY PROJECTS FROM THE UNITED STATES, JAPAN, AND WESTERN EUROPE), MANAGEMENT EXPERIENCE (LEARN FROM THE EXPERIENCE OF SINGAPORE, JAPAN, AND SOUTH KOREA).

6.5. SOLUTIONS FOR THE DEVELOPMENT OF SUPPORT INDUSTRIES

- Develop planning for the development of industries, including guidance on the development of supporting industries.

- Create favorable conditions for the development of supporting industries by facilitating inputs (especially land and raw materials).

- Establish leading products to serve as a foundation for the development of supporting industries.

6.6. Regional Cooperation and Coordinated Development Solutions

- Joint ventures and collaborations to implement projects developing industrial products that meet the needs of replacing imports or focusing on exports (including processing and assembling industrial products).

- Cooperation under a model where a parent enterprise is located in one of the provinces or cities in the Central Coastal Economic Zone and subsidiary enterprises are located in other provinces to specialize in production or provide appropriate technology to each other (such as processing agricultural and aquatic products, manufacturing agricultural machinery and equipment, and items serving people's daily life and other products).

- Build and implement large-scale industrial development projects with regional significance to act as catalysts for the development of other industries, particularly major projects related to neighboring provinces such as mining and mineral processing, construction material production, metallurgy, chemicals...

6.7. Strengthening Industrial Promotion Activities and Supporting the Development of Medium-Sized and Small Enterprises, Rural Industries

- Continue implementing the National Industrial Promotion Program, focusing on support programs: Enhancing management capacity; training, promoting, and developing skills in rural industrial establishments; building demonstration models for technology transfer and scientific and technological progress; joint ventures, collaborations, and economic cooperation; detailed planning and infrastructure construction for industrial clusters and points using central and local funds.

- Advise and assist enterprises in developing brands, applying new technologies, seeking markets; organize training sessions on e-commerce and trade promotion; organize trade fairs...

7. Main Policies

7.1. Market Policy

- Support enterprises in participating in trade fairs, trade promotion activities, attracting investment, and developing markets. Create all necessary conditions to enhance the marketing capabilities of enterprises in selling industrial products.

- Organize conferences and seminars on business strategies, market development, and international trade fairs for industrial products to serve as a bridge for enterprises to cooperate in business development and expand markets.

7.2. Investment Incentive Policy

- Prioritize 100% foreign direct investment, especially multinational companies with global scale, to take advantage of modern technology and advanced management skills.

- Provide incentives for overseas Vietnamese capital through information channels and relatives in Vietnam to invest in developing industrial production.

7.3. Science and Technology Policy

- Encourage the establishment of consulting, brokerage, and service units in science and technology.

- Apply tax exemption and reduction policies for enterprises investing in technological innovation and equipment, reducing taxes on research and development investment, exempting and reducing taxes on products meeting quality standards that replace imported goods and exported goods within a certain period (five years).

- Provide housing, transportation, working tools, and salary supplements for excellent managers and leading scientific and technical experts working in provinces in the region.

Article 2. Implementation

1. The Ministry of Industry and Trade shall lead and coordinate with relevant ministries, sectors, and provincial People's Committees in the Central Coastal Economic Zone to guide the implementation of industrial development according to the approved planning, and be responsible for:

- Guiding, publicizing, and coordinating with localities to jointly implement and build specific steps regarding the technological orientation and products outlined in the planning; monitoring the implementation of the planning.

- Leading and coordinating with ministries, sectors, and localities annually to organize meetings to evaluate the implementation of the planning, thereby proposing solutions to overcome difficulties and promote industrial development in the region.

- Proposing to the Government to adjust mechanisms and policies to suit actual conditions to promote the development of the industrial sector in the Central Coastal Economic Zone.

2. Ministries and Sectors: Planning and Investment; Science and Technology; Agriculture and Rural Development; Natural Resources and Environment; Transport; Labor, Invalids and Social Affairs; Education and Training; Finance; State Bank of Vietnam shall, within their respective functions, lead and coordinate with the Ministry of Industry and Trade in calling for and attracting foreign investment in industrial development; providing special credit support for industrial enterprises in the Central Coastal Economic Zone; supporting enterprises in their operations, research and innovation, and technology transfer; enhancing training and vocational education to improve the quality of human resources for the industrial sector.

3. Provincial People's Committees in the Central Coastal Economic Zone:

- Review and adjust industrial development planning in each province and city to align with the overall industrial development planning of the Central Coastal Economic Zone; incorporate planning implementation contents into annual and five-year plans for industrial development in their respective areas; coordinate with the Ministry of Industry and Trade and relevant ministries and sectors to inspect and supervise the implementation of the planning.

- Summarize the implementation of regional planning annually (regional projects within the province), propose recommendations, and report to the Ministry of Industry and Trade.

Article 3. This Decision takes effect from the date of signature.

Article 4. Ministries, agencies equivalent to ministries, agencies under the Government, People's Committees of provinces and centrally governed cities: Thua Thien-Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, and heads of relevant units are responsible for implementing this Decision./.