Circular No. 46/2012/TT-BCT of the Ministry of Industry and Trade provides detailed regulations on certain contents of Decree No. 45/2012/NĐ-CP dated May 21, 2012 of the Government on promoting industry.

CIRCULAR

Regulations detailing certain contents of Decree No. 45/2012/NĐ-CP

dated May 21, 2012 of the Government 

Based on Decree No. 95/2012/NĐ-CP dated November 12, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Based on Decree No. 45/2012/NĐ-CP dated May 21, 2012 of the Government on promoting industry;

The Minister of Industry and Trade issues this Circular to detail certain contents of Decree No. 45/2012/NĐ-CP dated May 21, 2012 of the Government on promoting industry as follows: 

Article 1. Scope of Regulation

This Circular details certain contents of Decree No. 45/2012/NĐ-CP dated May 21, 2012 of the Government on promoting industry (hereinafter referred to as Decree No. 45/2012/NĐ-CP). Management and use of state budget funds for economic public services for promoting industry activities shall be carried out in accordance with the guidelines of the Ministry of Finance and the Ministry of Industry and Trade.

Article 2. Interpretation of Terms

1. Industrialization Project as specified in Clause 3, Article 2 of Decree No. 45/2012/NĐ-CP, including the national promotion industry program and the local promotion industry program.

2. National promotion industry program is the promotion industry program managed and organized by the Local Industry Department from the national promotion industry fund to implement national promotion industry activities according to the plan approved by the Minister of Industry and Trade.

3. Local promotion industry program is the promotion industry program managed and organized by the Department of Industry and Trade, People's Committee at district level, commune level from the local promotion industry fund to implement local promotion industry activities according to the plan approved by the competent authority.

4. Local promotion industry program is the collection of contents and tasks regarding local promotion industry activities in each stage approved by the Chairman of the Provincial People's Committee aimed at encouraging the development of industry - small-scale industry and applying cleaner production in industry to enhance production efficiency, contributing to the restructuring of the economy - society and labor in the locality.

Article 3. Detailed provisions on the subjects to which the regulations in Clause 2, Article 1 of Decree No. 45/2012/NĐ-CP apply

1. Organizations and individuals directly investing in and producing industry - small-scale industry in districts, towns, townships, communes, and wards in cities of type 2 and 3, and wards in cities of type 1 converted from communes not exceeding five years, including:

a) Small and medium-sized enterprises established and operating under the Enterprise Law with total capital equivalent to total assets determined in the enterprise's balance sheet or average annual number of employees as stipulated in Article 3 of Decree No. 56/2009/NĐ-CP dated June 30, 2009 of the Government on assistance for the development of small and medium-sized enterprises.

b) Cooperatives established and operating under the Law on Cooperatives. Cooperative groups established and operating under Decree No. 151/2007/NĐ-CP dated October 10, 2007 of the Government on the organization and operation of Cooperative Groups.

d) Rural industrial establishments with registered business premises in wards in cities of type 1 when directly investing in and producing industry - small-scale industry in districts, towns, townships, communes, and wards in cities of type 2 and 3, and wards in cities of type 1 converted from communes not exceeding five years are eligible to benefit from promotion industry policies.

đ) The period for determining wards in cities of type 1 converted from communes not exceeding five years is calculated from the effective date of the decision on conversion approved by the competent authority to December 31 of the preceding year relative to the planning year.

2. Industrial production establishments implementing cleaner production are not limited in terms of total capital or average annual number of employees and investment production location.

Article 4. Detailed provisions on certain contents of activities to promote rural industry as stipulated in Article 4 of Decree No. 45/2012/NĐ-CP

1. Support for rural industrial establishments to expand domestic and export markets, including the following activities:

a) Organizing seminars and forums to introduce markets and promote trade both domestically and internationally for rural industrial establishments, service organizations for promoting industry, and relevant state management agencies.

b) Supporting rural industrial establishments to participate in forums, seminars, and exhibitions abroad to promote their brands and expand product sales markets. Each rural industrial establishment may be supported up to twice a year.

c) Supporting rural industrial establishments to promote information online through online marketing solutions, building websites to introduce products and sell online.

d) Supporting rural industrial establishments to utilize customer lists with purchase and sale offers from foreign importers through contact and dialogue programs. Implementing training programs and practicing skills to exploit export information and market information on domestic and international electronic portals.

- For national promotion projects, it refers to technologies and products that have not been applied or produced at the district level. For local promotion projects, it depends on the actual conditions of the locality as specified by the provincial People's Committee;

- The selected new technology for the demonstration model must be superior in productivity, product quality, and efficiency compared to the current technologies being used by rural industrial establishments in the area and should be a technology encouraged for investment support by the program management agency.

3. For activities supporting the transfer of technology and the application of scientific and technological progress in production, the following conditions must be met:

a) The technology and scientific and technological progress chosen for support in transfer and application must be advanced scientific and technological progress; technology to create new products or improve production capacity and product quality; save and use resources, fuel, energy, and natural resources efficiently; belong to the list of encouraged technology transfers as decided by the competent authority.

b) Activities supporting the transfer and application of technology and scientific and technological progress for rural industrial establishments must comply with procedures, formalities, and other regulations under the law on technology transfer.

5. Support for industrial production establishments to build pilot models for cleaner production applications:

a) The activities include: Supporting consulting and evaluating cleaner production for selected pilot industrial production establishments; Supporting exemplary industrial production establishments to build pilot models for cleaner production applications.

b) Industrial production establishments selected for support in building pilot models for cleaner production applications must improve the efficiency of natural resource, raw material, fuel, and material use; reduce emissions and limit increases in pollution; protect and improve environmental quality and human health.

6. Rural industrial establishments causing environmental pollution that relocate to industrial zones or clusters are eligible for advisory support and loan interest rates as decided by the Chairman of the Provincial People's Committee based on the assessment of environmental pollution levels according to Circular No. 04/2012/TT-BTNMT dated May 8, 2012, of the Ministry of Natural Resources and Environment on criteria for determining pollution-causing establishments and serious pollution-causing establishments.

7. Support for organizing rural industrial product fairs and exhibitions is carried out regularly at district, provincial, regional, or national levels. Depending on actual conditions, program management agencies consider integrating fair and exhibition organization with product selection and commendation for outstanding rural industrial products at various levels.

8. Support for organizing craft and fine arts product fairs and exhibitions is provided for specialized fairs and exhibitions of craft and fine arts products and related trades and services.

9. Activities supporting investment in exhibition rooms to introduce and promote products and trade promotion, including:

a) Supporting rural industrial establishments to invest in exhibition rooms to introduce and promote products linked to tourism and commercial areas.

b) Supporting provincial Promotion Centers and National Promotion Centers in regions to invest in exhibition rooms to introduce and promote trade of rural industrial products of provinces, cities, and regions.

c) Support the construction of e-commerce trading floors for rural industrial bases to encourage the promotion of brands, rural industrial products, and services on the Internet environment.

10. Support attracting investment to develop industrial clusters including activities: organizing conferences, seminars, forums; building information systems and data to attract investment in developing industrial clusters in localities.

Article 5. Detailed provisions on certain categories of industries and occupations entitled to preferential policies under Article 5 of Decree No. 45/2012/ND-CP.

1. For the production of construction materials, there shall be no support for production facilities producing fired clay bricks using improved traditional kilns or ring kilns causing environmental pollution; priority support shall be given to production facilities for new technology construction materials (non-fired materials) that do not pollute the environment and utilize recycled materials.

Article 6. Detailed provisions on prioritized areas, industries, and occupations and principles of priority under Article 6 of Decree No. 45/2012/ND-CP.

1. Prioritized areas

a) Highland, island, border land, and ethnic minority areas according to current regulations of competent authorities.

c) Areas of communes included in the plan to implement the National Target Program on New Rural Development approved annually or at each stage by the People's Committee of the province.

2. Prioritized industries and occupations

a) Production of export-oriented products: applicable to production facilities that have export contracts or produce products for export purposes.

b) Production of products using local raw materials: applicable to production facilities that use primary raw materials and materials supplied from the locality where the investment is made, accounting for more than 50% of the total value of raw materials and materials.

c) Rural industrial bases employing many workers are production facilities that employ 50 workers or more.

đ) Notable rural industrial products are those specified in Clause 4, Article 2 of Decree No. 45/2012/ND-CP and certified by competent authorities in accordance with the regulations of the Ministry of Industry and Trade.

3. Principles for granting priority

a) Priority in allocating budget plans

- By area: When allocating annual budget plans for promoting industry, management agencies shall grant priority in the following order from Point a to Point d of Clause 1 of this Article;

- By industry and occupation: When allocating priority budget plans for promoting industry, they shall be granted in the following order for programs and projects specified in Point b, followed by Point a of Clause 2 of Article 6 of Decree No. 45/2012/ND-CP (excluding cleaner production in industry);

- When allocating annual budget plans for promoting industry, depending on budget balancing capacity, management agencies will prioritize allocation based on area before considering industry and occupation priorities.

b) For cleaner production activities, no priority order is set for areas and industries as stipulated in Point a of Clause 3 of this Article. The priority order will be determined based on the effectiveness and urgency of the project by the management agency.

c) The level of preferential funding support for programs and projects under Clause 1 and Clause 2 of this Article shall be applied in accordance with guidelines issued by the Ministry of Finance and the Ministry of Industry and Trade.

Article 7. Detailed regulations on the organization of industrial promotion services as stipulated in Article 9 of Decree No. 45/2012/NĐ-CP

1. Other organizations of industrial promotion services as provided for in Clause 1, Article 9 of Decree No. 45/2012/NĐ-CP are organizations and individuals belonging to all economic sectors established in accordance with the law; they must have sufficient capacity and functions and tasks appropriate to the content of industrial promotion activities they participate in implementing.

2. The capacity of organizations of industrial promotion services when participating in industrial promotion activities depends on the nature and characteristics of each project and task they join, which is selected by the management agency of the program when assessing capacity based on certain criteria such as human resource capacity, financial capability, material infrastructure, and experience in implementation.

Article 8. Building programs and plans for industrial promotion

1. Building the Industrial Promotion Program for each phase

a) The Ministry of Industry and Trade shall take the lead in coordinating with relevant ministries, sectors, and localities to build the National Industrial Promotion Program for each phase to be submitted for approval. the Prime Minister.

b) The Department of Industry and Trade shall take the lead in coordinating with relevant departments, sectors, and district People's Committees to build the Local Industrial Promotion Program for each phase to be submitted for approval by the provincial People's Committee.

2. Building the annual industrial promotion plan

a) The national industrial promotion plan:

- Annually, based on the approved National Industrial Promotion Program for each phase and guidance documents from relevant agencies, the Local Industry Department shall take the lead in guiding the Departments of Industry and Trade, related agencies, and industrial promotion service organizations to build the national industrial promotion plan;

- The Department of Industry and Trade shall take the lead in building the plan and reviewing at the grassroots level projects for industrial promotion implemented with national industrial promotion funds, and send them to the Local Industry Department for consolidation;

- Based on available funding, the Local Industry Department shall review the tasks and projects of units for the national industrial promotion plan annually, submit it for approval by the Minister of Industry and Trade, and organize its implementation after approval.

b) The local industrial promotion plan:

- Annually, based on the approved Local Industrial Promotion Program for each phase and guidance documents from relevant agencies, the Department of Industry and Trade, district People's Committees, and commune People's Committees shall take the lead in guiding the construction and consolidation of the plan, submitting it for approval by the competent authority;

- The Department of Industry and Trade, district People's Committees, and commune People's Committees shall organize the implementation of the local industrial promotion plan after approval.

3. Procedures for building plans, organizing implementation, and managing industrial promotion programs and projects

a) The procedures for building plans, organizing implementation, advance payment, settlement, and management of national industrial promotion programs, plans, and projects shall be carried out in accordance with the regulations of the Ministry of Industry and Trade.

b) The provincial People's Committee shall establish procedures for building plans, organizing implementation, advance payment, settlement, and management of local industrial promotion programs, plans, and projects.

Article 9. Reporting system and inspection and supervision of industrial promotion programs and projects

1. The Department of Industry and Trade shall be responsible for:

b) Consolidate and report on emergency activities regarding industrial promotion within the province according to the requirements of the Local Industry Department, the provincial People's Committee, and competent authorities.

c) Develop and submit to the provincial People's Committee for issuance of regulations on the reporting system, monitoring criteria, and indicators for industrial promotion programs and projects, and assign relevant agencies and units at the local level to implement.

2. The Local Industry Department shall be responsible for consolidating and reporting on the situation of industrial promotion activities nationwide to the Ministry of Industry and Trade. the Prime Minister in accordance with regulations.

3. Annually, the Local Industry Department shall coordinate with the Departments of Industry and Trade, relevant ministries, sectors, and units to guide, inspect, and supervise the implementation of national industrial promotion projects; the Departments of Industry and Trade shall coordinate with relevant departments, sectors, and units at the local level to guide, inspect, and supervise the implementation of local industrial promotion projects.

Article 10. State Management of Industrial Promotion Activities

1. The Local Industry Department is the lead agency assisting the Minister of Industry and Trade in performing state management functions regarding industrial promotion activities as stipulated in Article 15 of Decree No. 45/2012/NĐ-CP.

2. The Departments of Industry and Trade assist the People's Committees of provinces in performing state management functions regarding industrial promotion activities at the local level as provided for in Article 16 of Decree No. 45/2012/NĐ-CP.

Article 11. Effective Date

1. This Circular takes effect from February 10, 2013, and replaces Circular No. 03/2005/TT-BCN dated June 23, 2005, issued by the Ministry of Industry on guiding the implementation of certain contents of Government Decree No. 134/2004/NĐ-CP dated June 9, 2004, concerning encouragement for the development of rural industry, and Decision No. 07/2008/QĐ-BCT dated May 7, 2008, issued by the Minister of Industry and Trade on promulgating the System of Indicators for Monitoring the National Industrial Promotion Program until 2012 and the System of Criteria and Indices for Evaluating Industrial Promotion Proposals and Programs.

2. Any difficulties encountered during implementation should be reported to the Ministry of Industry and Trade for review and appropriate adjustment and supplementation./.