Decision No. 40/2005/QD-BCN on Issuing Temporary Regulations on Industrial Development Planning

DECISION OF THE MINISTER OF INDUSTRY

ON THE ADOPTION OF PROVISIONS ON TEMPORARY GUIDELINES FOR THE DEVELOPMENT PLAN OF THE INDUSTRY

THE MINISTER OF INDUSTRY

Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government promulgating the Investment and Construction Management Regulations; Decrees No. 12/2000/NĐ-CP dated May 5, 2000 and No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain articles of the Investment and Construction Management Regulations;

Pursuant to Circular No. 05/2003/TT-BKH dated July 22, 2003 of the Ministry of Planning and Investment guiding the contents, procedures for preparation, examination, and management of development plans for industries and overall economic and social development territorial planning;

At the proposal of the Director of the Planning Department and the Director of the Institute for Industrial Strategy and Policy Research,

DECISION:

Article 1. The Minister hereby promulgates these temporary guidelines on the development plan for the industry attached hereto.

Article 2. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Heads of the Office of the Ministry, the Inspectorate of the Ministry, the Heads of Departments, Directors of General Departments, Institute Directors under the Ministry, Provincial Industry Directors of centrally governed cities and agencies participating in the development of the industrial development plan shall be responsible for implementing this Decision./.

TEMPORARY PROVISIONS

On the Development Plan for the Industry

(Attached to Decision No. 40/2005/QĐ-BCN

dated December 23, 2005 of the Minister of Industry)

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

These provisions regulate the establishment, examination, approval, management, implementation of the development plan for the industry by sector, field, and territorial region.

These provisions apply to agencies and organizations participating in the establishment of development plans for industries managed by the Ministry of Industry as stipulated in Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government.

Article 2. Interpretation of Terms

In these provisions, the following terms are understood as follows:

1. "Development plan for the industry" means the argumentation and selection of reasonable development and distribution schemes for an industry over a specific period.

2. "Development plan for the industry document" is the product of the planning process, reflecting the current situation, viewpoints, goals, development orientation, and distribution of the industry by sector and territorial region, proposing solutions, mechanisms, policies, and the organization of implementation.

3. "Management of the development plan for the industry" encompasses all activities including: preparation, approval, organization of implementation, inspection, supervision, adjustment, and coordination in implementing the development plan for the industry.

Article 3. Types of development plans for the industry

1. By sector, field of industry (hereinafter referred to as sectoral planning):

a) Comprehensive development plan for the Vietnamese industry;

b) Development plan for specialized sectors of the industry;

c) Development plan for small-scale handicraft industry;

d) Other development plans according to each field of industry.

2. By territorial region (hereinafter referred to as regional planning):

a) Development plan for the industry in territorial regions (multiple provinces);

b) Development plan for the industry in economic zones (as decided by the Prime Minister);

c) Development plan for the industry in provinces and centrally governed cities;

d) Development plan for the industry in districts;

e) Development plan for industrial zones, clusters, and points.

Article 4. Planning Horizon for Industrial Development Planning

The planning horizon for industrial development planning is ten years, with a vision extending to five or ten years thereafter depending on the type of planning. The establishment of plans and the review and adjustment of plans are conducted regularly one year prior to the five-year plan.

Article 5. Principles for Establishing, Reviewing, and Managing Industrial Development Planning

1. Ensuring consistency with the strategy and planning for economic and social development, closely combining the effectiveness of economic and social development, national defense, and security with the effectiveness of industry development.

2. Ensuring the formation of an economic structure oriented towards industrialization and modernization; ensuring short-term and long-term effectiveness, local effectiveness and overall effectiveness, meeting the requirements for sustainable development; being consistent with a socialist-oriented market economy and international integration.

3. Ensuring continuity and inheritance, ensuring guidance for investment development.

4. Ensuring coordination between industry planning, territorial planning, construction planning, and other related industry planning.

Chapter II

CONTENT OF INDUSTRY DEVELOPMENT PLANNING AND SECTOR

INDUSTRIAL FIELD

Article 6. Structure and Main Content of Industry Development Planning and Sectoral Industrial Planning

The industry development planning and sectoral industrial planning (hereinafter referred to collectively as "industry") according to the four types of planning mentioned in Clause 1, Article 3 can be structured into parts, chapters, and sections. In addition to the introduction and conclusion (the introduction should clearly state the basis and necessity for establishing the planning, methodology and scope...), the industry planning must include the following main contents:

1. Current status of industry development during the period before planning (if there was previous planning, it needs to be compared with the targets set in the previous planning phase).

Analyzing and evaluating the current status of industry development and industrial products. The content of analyzing and evaluating the current status includes:

a) Analyzing the industry structure, key products, investment, science and technology, labor, production organization, productivity, and efficiency:

- The current situation regarding scale and production capacity;

- The current situation regarding the industry structure by economic components and management organization;

- The current situation regarding the main product markets of the industry (domestic, foreign, export) and the competitiveness of the industry and products;

- The current situation regarding investment activities;

- The current situation regarding the technical level of equipment, technological level, measurement work, and product quality;

- The current situation regarding human resources, training work, scientific research and technology;

- The current situation regarding the environment and sustainable development.

- The current situation regarding production, raw material markets (or auxiliary industries) for the industry and potential for development;

- Objective factors about policies affecting operations;

- Evaluating growth rate, growth efficiency, investment efficiency, and capital utilization efficiency.

b) Summarizing lessons learned, successes, limitations in the process of development and the reasons for these successes and limitations.

2. Factors Affecting Industry Development During the Planning Period.

a) Determining the position and role of the industry in the national economy and the development goals of the industry. Analyzing supply and demand, competitive situations globally and regionally.

b) Analyzing and forecasting factors and resources affecting industry development:

- Policies and guidelines of the Party and State related to development;

- The impact of international economic integration (positive and negative impacts);

- Analyzing and forecasting domestic and international market factors;

- Forecasting the competitiveness of industry products and services; the ability to capture domestic and export markets.

3. Development Planning.

a) Views, objectives (general and specific) and development orientation of the industry.

b) Justifying development scenarios for the industry, key products, and the main conditions to ensure the implementation of planning objectives:

- Identifying industry development scenarios and industrial product options (which may vary across different scenarios/options);

- Selecting key industries (products); justifying criteria for selecting key products and priorities;

- Planning raw material production for the industry:

+ Potential for developing raw materials for the industry;

+ Views and development orientation;

+ Options for developing raw material production for the industry;

+ Calculating investment capital requirements for raw material production for the industry.

- Calculating the main conditions to ensure the achievement of planning objectives (investment capital, technology, human resources, and other resources);

- Justifying the spatial distribution of the industry, especially for key projects;

- Planning the development of supporting industries for industry development;

- Developing programs and lists of major industrial projects for each five-year planning period;

- Justifying environmental protection and sustainable development issues.

4. Solutions and Policy Mechanisms.

Establishing solutions and policy mechanisms to encourage development according to planning scenarios, addressing specific issues for industry development that are unique to the industry:

a) Regarding the market;

b) Regarding investment;

c) Regarding scientific research and technology transfer;

d) Regarding the development of raw material production for the industry;

đ) Regarding the development of human resources;

e) Regarding finance;

g) Regarding industry management;

h) Other solutions and policies (if any).

5. Implementation Organization.

Assigning specific responsibilities to relevant agencies in charge or cooperating according to their functions to ensure the requirements and conditions for effective implementation and management of the planning.

Article 7. Main contents of the industrial development master plan according to territorial regions

The industrial development master plan or sector-specific industrial development master plan according to territorial regions may have different specific contents depending on territorial levels and the characteristics of each industry, except for the introduction part (which needs to clearly state the bases and necessity for developing the master plan, methodology and scope...) and conclusion, which must include the following structure and main contents:

1. Potential, resources, and factors affecting the industrial development of the region.

a) Economic geographical location, natural conditions, population.

b) Potential and resources for industrial development:

- Land resources: land fund and land structure;

- Mineral resources;

- Water resources (surface water, groundwater);

- Potential for developing raw materials from agriculture, forestry, fisheries (forest resources, marine resources...), secondary raw materials, and other types of raw materials;

- Human resources (quantity, quality);

- Assessment of the impact of these factors on industrial development in the region.

c) Factors affecting industrial development in the region.

2. Analysis and forecasting of factors affecting industrial development in the region:

a) Party and State policies and local policies related to the industry's development;

b) Inter-regional factors influencing the industrial development of the region;

c) Impact of international economic integration;

d) Overview of market consumption trends (domestic market, foreign market, potential for cooperation with foreign investment...).

đ) General situation of economic and social development in the region:

- Economic growth trend over the past 5-10 years based on GDP. Average GDP per capita compared to the whole country and neighboring regions;

- Structural transformation of the economy in recent years: by industry, by economic component, by economic zone;

- Export-import turnover and commodity structure over the past 5-10 years;

- Infrastructure: road transport, inland waterway transport, air transport..., telecommunications development, electricity supply, water supply, urbanization and urban planning situations;

- Investment development situation on the territory by economic components. Evaluation of the ability to attract investment capital from various economic components, especially non-state-owned enterprises and foreign direct investment;

3. Evaluation of the current status of industrial development:

a) Number of industrial production facilities in the region up to the time of the master plan, classified by industrial sectors, by economic components, and spatial distribution across the territory;

b) Evaluation of the industrial sector's growth process through various periods (growth in value added, labor productivity...). Evaluation of major sub-sectors through product growth rates.

c) Evaluation of the industrial structure (by production value, value added) within the national economy, internal industrial structure, structure by economic component, structure by territorial space; Evaluation of the structural transformation of the industrial sector in the region;

d) Evaluation of investment in industry: total investment amount for the entire sector, by sub-sector, by economic component; investment effectiveness; ICOR ratio; evaluation of key project investment situations;

đ) Evaluation of the material and technical infrastructure and technology of the industrial sector: overview of the sector's material infrastructure, current level of equipment and technology; current situation of research and development activities, technology transfer activities; evaluation of other supporting conditions;

e) Evaluation of human resource quality;

g) Evaluation of achievements and contributions of the industrial sector to regional economic development: contribution to the budget, export-import turnover, major export-import products, business efficiency of the industrial sector;

h) Overall assessment of the competitiveness of industries in territorial regions, centrally governed cities and provinces (market share of major industrial products, production costs...);

i) Evaluation of the operation of industrial zones, clusters, and points;

k) Evaluation of the impact of industrial development on the environment and sustainable development;

l) Factors affecting industrial development: impact of mechanisms and policies; domestic and foreign factors, demands of the general economy and the region, requirements of integration processes... on the development of the industry;

4. Industrial Development Planning.

a) Development perspective;

b) Development goals (general goals and specific goals for each stage);

c) General orientation for development;

d) Industrial development planning:

- Justification of development scenarios: integration of the industrial master plan with other sectoral plans; economic and industrial structure, industrial production value, industrial value added, industrial growth rate...

- Development planning for industries in the region, including support industries for development;

- Identification of key industries and products. Determination of investment priorities.

đ) Industrial distribution:

- Justification for the formation of concentrated industrial zones, clusters, and points, export processing zones (including support industrial zones and clusters);

- Justification for the formation of industrial axes or industrial corridors (if applicable).

e) Identification of key industrial investment programs and projects; funding requirements for these programs and projects.

5. Basic solutions and policies:

a) Solutions regarding capital for implementing the goals set out in the master plan;

b) Market-related solutions;

c) Solutions to enhance the competitiveness of the industrial sector;

d) Solutions for developing human resources;

đ) Solutions for developing science and technology, ensuring environmental protection;

e) Solutions to improve organizational and management capacity in the industrial sector;

g) Other measures;

h) Proposals for a system of mechanisms and policies;

6. Implementation organization of the master plan and recommendations.

a) Implementation organization: Assign specific responsibilities to relevant agencies to lead or coordinate implementation according to their functions to ensure the requirements and conditions for effective planning and management of the implementation of the plan.

b) Recommendations.

Article 8. Form of the industrial development plan

1. The industrial development plan shall be printed on A4 paper (210 x 297 mm).

2. The cover page of the plan shall clearly state:

a) The planning management agency (the Ministry of Industry or the People's Committee of the province or centrally governed city deciding to establish the planning project);

b) The project management agency, signed by the head of the agency and stamped;

c) The implementing agency of the project, signed by the head of the agency and stamped;

d) The project leader, signed;

đ) Project name: Sector development plan (industrial product)/Regional industrial development plan (region, province, centrally governed city) up to year..., with consideration up to year...;

e) Month and year of completion;

3. Attached maps (which may be printed in color or black and white) shall have a minimum size of 210 x 297 mm.

List of reference documents, specifying the sources of data and materials in the consolidated report of the project (collected, processed, or inherited from other agencies by the implementing agency).

4. Appendices containing basic data and detailed calculation results of the plan.

Chapter III

LEVELS OF PLANNING MANAGEMENT FOR INDUSTRIAL DEVELOPMENT

Article 9. Planning managed by the Central Government:

1. Comprehensive planning for the development of the industrial sector nationwide, for regions (multiple provinces), for key economic zones, and for provinces and centrally governed cities with particularly important positions as decided by the Prime Minister;

2. Planning for the development of important industrial sectors and important industrial products nationwide and in territorial areas as decided by the Prime Minister during each period.

The Ministry of Industry is the direct managing agency for the implementation of the aforementioned industrial development plans.

Article 10. Planning managed by localities:

1. Industrial development planning and planning for the development of industrial sectors within the territory of provinces and centrally governed cities outside those specified in Clause 1 and Clause 2 of Article 9 of this Regulation;

2. Planning for the development of industry in provincial centrally governed cities;

3. Planning for the development of industrial zones and clusters within the territory of provinces and centrally governed cities;

4. Planning for the development of industry in districts, counties, and towns (if applicable).

The People's Committees of provinces and centrally governed cities are the direct managing agencies for the industrial development plans under Clause 1, Clause 2, and Clause 3 of this Article.

The People's Committees of districts, counties, and towns are the direct managing agencies for the industrial development plans under Clause 4 of this Article.

Chapter IV

PROCEDURE FOR ESTABLISHING AND APPROVING

INDUSTRIAL DEVELOPMENT PLANS

Article 11. Procedure and formalities for registering the establishment of industrial development plans

1. For industrial plans managed by the Central Government:

The Ministry of Industry prepares a plan to build industrial development plans and sends it to the Ministry of Planning and Investment for consolidation and submission to the Prime Minister for approval according to the annual national construction schedule, including a list of plans, capital needs; approval of the outline and total budget estimate for each planning project.

Annually, based on the approved plan, the Ministry of Industry assigns tasks or organizes bidding to select consulting units with capacity and legal personality to prepare the plans.

2. For industrial development planning projects managed by localities:

Provincial Departments of Industry establish plans to build industrial development plans for local industries and submit them to the People's Committee of the province or centrally governed city for approval and report to the Ministry of Industry according to the annual national construction schedule. The People's Committee of the province or centrally governed city balances the capital sources and assigns tasks to the Department of Industry to implement the projects.

Article 12. Procedures for Developing Industrial Development Plans

Based on the outline and schedule for developing the plan approved by the competent authority, the agency assigned (or awarded the bid) to develop the plan must implement the following steps in the development process:

1. Assign tasks to the research group and agencies participating in the development of the plan.

2. Organize surveys and process basic survey results; conduct field investigations; collect primary data and information (all cited data must have legitimate and reliable sources):

a) Organize surveys and field investigations to collect data, information, and original maps;

b) Gather guiding documents from the Party, National Assembly, State, and related strategies, plans for economic and social development, and industrial development plans at the national level;

c) Information and data on the current state of economic and social development, and industrial development;

d) Information on natural conditions: geographical location, topography, climate, geology, landscape, major natural resources, etc.

3. Study, analyze, and evaluate the impact of factors related to industrial development. The impact of national economic and social development strategies, regional factors, and other socio-economic factors on future industrial development. Determine the position and role of regions and industries in the national economy.

4. Develop and select planning options:

a) Determine viewpoints, goals (including general and specific goals), and development orientations;

b) Orient the main contents of the plan according to the approved outline, aligning with inter-sectoral plans;

c) Organize internal exchanges and seminars, seek expert opinions, and gather opinions from relevant central and local agencies;

d) Finalize the plan and submit it to the competent authority for approval.

Article 13. Agencies Participating in Establishing Industrial Development Plans

1. Project Proponents:

For centrally managed industrial development projects, the project proponent is the Ministry of Industry. The ministry directly designates and assigns tasks or conducts bidding to select agencies and organizations with the appropriate capacity and legal status to establish industrial development plans.

For locally managed industrial projects, the project proponent is the People's Committee of provinces or centrally governed cities, or may delegate the Provincial Department of Industry to act as the project proponent.

2. The agency responsible for establishing the plan must be an organization with the appropriate functions, responsibilities, and professional capacity for industrial planning work. The agency must strictly follow the approved outline and budget. Any adjustments to the outline and budget of the plan must be approved by the approving authority.

Article 14. Review of Industrial Development Plans

1. Organization of Plan Review:

a) The reviewing agency organizes the review of the project plan based on the plan submitted by the planning agency, the approved outline, opinions from relevant agencies and localities, and the critical feedback from organizations and individuals tasked with providing such feedback. Participating organizations can request the planning agency to provide explanations and supplements. The planning agency has the responsibility to provide written clarifications and supplements.

b) The review period shall not exceed 45 working days for centrally managed industrial development plans, and 30 working days for locally managed industrial plans, starting from the date when the reviewing agency receives all valid documents (excluding time for supplementing and amending documents).

2. Documents for Submission to the Review Process Include:

a) A report from the head of the planning agency requesting approval of the plan to be submitted to the competent authority as stipulated in Clause 4 of this Article;

b) The plan developed according to the specified content;

c) Special reports and accompanying appendices (including maps, tables, drawings);

d) Relevant legal documents;

đ) Draft Decision on Approval.

3. Content of the Review of Industrial Development Plans:

a) Legal basis, scientific foundation, reliability of information, data, and materials used in the planning process and the content of the plan;

b) Compatibility of the plan with strategies and plans for economic and social development;

c) Main viewpoints, goals, and orientations of the plan and implementation options;

d) Consistency of regional and territorial plans with other sectors' plans and the industrial development plan;

đ) Feasibility of the plan and organizational and implementation solutions.

4. Authority for Reviewing Industrial Development Plans:

a) For projects under the approval authority of the Prime Minister, the Ministry of Industry will organize a department-level acceptance, prepare documents to submit to the Prime Minister and the reviewing agency. In cases where the Prime Minister delegates authority, the Ministry of Industry will organize reviews according to current regulations;

b) For projects under the approval authority of the Ministry of Industry, the Ministry will organize reviews according to current regulations;

c) For projects managed by local authorities, the People's Committee of provinces or centrally governed cities will organize reviews according to current regulations.

Article 15. Approval of planning

1. Documents for submission for approval:

a) The documents submitted by the agency drafting the plan include:

- A proposal to the competent authority requesting approval of the plan;

- A report on the plan prepared according to the prescribed content;

- A summary report on the plan for review;

- A draft decision on approval of the plan;

- Relevant legal documents;

b) The documents submitted by the reviewing agency include:

- A review report;

- Documents (copies) containing opinions of relevant Ministries, sectors, agencies, localities, scientists, and experts;

- A draft decision on approval (in cases where approval of the plan is requested).

2. Authority to approve industrial development plans:

a) For central-managed industrial development plans, the Ministry of Industry submits to the Prime Minister for approval or approves based on the Prime Minister's authorization;

b) For locally-managed industrial plans, the People's Committee of provinces and centrally-administered cities approves after obtaining written agreement from the Ministry of Industry.

3. The draft decision on approval of the industrial development plan shall include the following main contents:

a) Views, objectives, and main directions of development of the plan;

b) Spatial organization orientation;

c) List of investment projects over five years and ten years (including priority investment programs and projects);

d) Measures and policies, action programs (if any) to implement the plan;

đ) Assignment of implementation of the plan.

Article 16. Budget for developing industrial development plans

1. The budget for developing industrial development plans is provided by the State budget according to the provisions of the law.

2. The use of financial support from domestic and foreign organizations for the work of drafting industrial development plans is carried out according to the provisions of the law.

3. Management, disbursement, and settlement of accounts for the budget of planning projects for industrial development are implemented according to the provisions of the law.

Chapter IV

IMPLEMENTATION

Article 17. After being approved by the competent authority, the industrial development plan must be publicly announced.

Article 18. The Ministry of Industry checks, supervises, and monitors the situation of drafting, announcing, and implementing central-managed industrial development plans; builds and submits to the Government and the Prime Minister mechanisms and policies to ensure the achievement of planning goals, creating favorable conditions for investment projects in accordance with the development orientation of the plan.

Article 19. Local People's Committees at all levels are responsible for announcing, checking, and supervising the implementation of locally-managed industrial development plans; building and issuing mechanisms and policies to ensure the achievement of planning goals, creating favorable conditions for investment projects in accordance with the development orientation of the plan.

Article 20. Adjustment of Planning

In case new factors arise that change part of the content of the approved plan, the management agency shall organize a review, amendment, supplementation, and adjustment of the plan to suit the actual situation. The adjusted planning document must be submitted to the competent authority for approval and made public.

Article 21. Implementation

1. The Department of Planning - Ministry of Industry is the focal point coordinating with Departments, Bureaus of the Ministry of Industry, the Institute of Industrial Strategy Policy Research, Provincial Industry Departments, and People's Committees of centrally-administered cities to develop plans for industrial development and propose reviews and adjustments of sectoral and product industrial development plans.

2. Agencies drafting the plan have the responsibility to submit one copy of the approved plan along with the approval decision to the Department of Planning for consolidation and monitoring.

3. Provincial Industry Departments of centrally-administered cities are the focal points for developing plans for industrial development within their jurisdiction, responsible for disseminating, organizing coordination, and monitoring the implementation of industrial development plans within their jurisdiction and those managed by the locality to report to the People's Committee of the province or centrally-administered city and the Ministry of Industry, proposing reviews and supplements to adjust the industrial development plan of the locality./.