Decision No. 53/2008/QĐ-BCT Approving the Strategy for Developing High-Tech Industries until 2020

Pursuant to …;

Approving the Strategy for the Development of High-Tech Industries until 2020

____________________________________

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to Decree No. 189/2007/ND-CP dated December 27, 2007, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Prime Minister's opinion expressed in Circular No. 3174/VPCP-CN dated June 11, 2007 of the Government Office regarding the Prime Minister's authorization for the Minister of Industry (now the Ministry of Industry and Trade) to approve the Strategy for the Development of High-Tech Industries until 2020;

Considering the Report No. 655/TTr-VCL dated December 19, 2008 of the Director of the Institute for Industrial Strategy and Policy Research;

Pursuant to the proposal of the Director of the Science and Technology Department,

DECISION:

Article 1. Approves the Strategy for the Development of High-Tech Industries until 2020 with the main contents as follows:

1. Development viewpoint:

- Developing high-tech industries to enhance productivity and product quality or create new products with high added value based on the application of scientific and technological achievements;

- The development of high-tech industries must be consistent with the Strategy for the Development of Industry in Vietnam until 2020, serving the goal of industrialization and modernization of the country so that by 2020, the country will basically become an industrialized nation with modern orientation;

- Priority high-tech industries for development must be key industries with foundational roles in promoting the development of other industries;

- The development of high-tech industries must follow an appropriate roadmap, initially focusing on absorbing, mastering, and adapting imported technologies, then gradually applying advanced technologies created domestically and suitable for the economic conditions up to 2020;

- The development of high-tech industries needs to be closely linked with the development of high-tech human resources;

- Applying advanced technology in industries must ensure sustainable development and environmental protection.

2. Objectives:

Determining the Administrative Reform Index to monitor and evaluate in a substantive, objective, and fair manner the annual implementation results of administrative reform of ministries, agencies equivalent to ministries (referred to as ministries), and people's committees of provinces and central-supervised cities (referred to as provinces) during the implementation of the Comprehensive Program on Administrative Reform of State Agencies for the 2011-2020 period.

Focus investment on applying advanced technology in some priority and key industries with foundational roles in promoting the development of other industries; industries with high added value, utilizing high-quality scientific and technological human resources; industries entering the forefronts of global scientific and technological progress and showing strong future trends; industries with conditions for integration and participation in international production chains and industries requiring capabilities and resources suitable for the economic conditions during a certain period (from now until 2020). Specifically:

- Electronics and Information Technology industry;

- Machinery industry;

- Metallurgy industry;

- Chemical industry;

- Food processing industry;

- Energy industry.

b) Specific Objectives:

By 2020, increase the added value of high-tech industry production to ensure that it accounts for 42-45% of total industrial production value;

Shift the structure of industries towards increasing the proportion of high-tech industries. Increase the ratio of investment in research and development in high-tech industries from 0.2-0.3% of current revenue to 3.5-5.0% by 2015 and 8-10% by 2020;

Strengthen investment in technological innovation towards applying advanced technology, striving to achieve a rate of investment in updating machinery and equipment from 8-10% currently to 10-15% by 2015 and aiming to reach over 20% by 2020;

Pay attention to training high-tech human resources to meet the needs of high-tech industries at each stage of development.

3. Strategic development orientation for some high-tech industries:

a) Electronics and Information Technology industry:

- Applying advanced technology in the electronics and information technology industry should directly adopt modern technology from the countries that originate such technology, without intermediaries;

- Advanced technology applied must be carefully selected, focusing on certain advanced technologies such as nanotechnology, laser technology, mechatronics, new material manufacturing technology in opto-mechatronics; Manufacturing technology for measuring and control devices; Manufacturing technology for medical electronic devices, telecommunications equipment...;

- Strive to achieve by 2020 that the production value of the Electronics and Information Technology industry accounts for 20% of total industrial production value.

b) Machinery industry:

- The machinery industry is a foundational industry, playing a supportive role in promoting the development of other industries. In the period until 2020, applying advanced technology in the machinery industry requires attention to: Widespread application of CAD/CAM/CNC in the manufacture of complete machines and equipment, power machinery - agricultural machinery, construction machinery, electrical machinery, automobiles, ships, medical machinery; defense equipment, weapons, and military gear... Application of programmable machine and equipment control systems in most large-scale production processes or detailed parts machining requiring high precision;

- Strive to achieve by 2015: Mastering software design, self-assembling hardware for industrial computers to modernize about 10% of existing machines and equipment in mechanical manufacturing plants according to the direction of applying programmable machine control systems; Designing and manufacturing a portion of modern models (applying PLC, CNC technology) and special processing equipment to meet 20-30% of domestic demand and participate in international production chains; By 2020: Basically completing the modernization and renewal of metal processing machinery and equipment for mechanical manufacturing plants according to CNC standards; Producing and assembling to meet 35-50% of CNC machinery and equipment demand for domestic industrial enterprises; Studying and assembling to meet part of the demand for automated, intelligent, energy-saving, and non-polluting equipment for civilian use; Researching and using new materials to manufacture machinery and equipment.

c) Metallurgy industry:

Steelmaking is an important industry, serving as a foundation for other industries, primarily mechanical and electronics industries. During the period from now to 2020, applying advanced technology in the steelmaking industry must focus on both iron and non-ferrous metal sectors, specifically as follows:

- For the iron sector, advanced technology should be applied in the automatic control system of the steelmaking process (from raw material input to finished product output); Application of software and integrated programs to control the process; Equipment for adjustment and automatic control (temperature regulation, pressure regulation), etc.;

- For the non-ferrous metal sector, high technologies should be applied for: Coarse refining, fine tin refining, producing high-purity tin products meeting the requirements of the electronics and food processing industries; Copper smelting in liquid furnaces, converter furnaces, fire refining, and electrolytic refining to obtain Mo copper; Technology for processing low-grade antimony ore with a content of less than 3%; Hydrometallurgy technology, froth flotation separation technology, and electrolytic zinc purification; Advanced technology in production Al₂O₃.

d) Chemical Industry:

- Applying advanced technology in the chemical industry first requires investment in developing fields such as agricultural chemicals, industrial chemicals, pharmaceuticals serving community health care. The applied advanced technologies must aim to ensure good ecological environment and energy conservation;

- For agricultural chemical products: Fertilizers: Applying advanced technology in phosphate fertilizer plants, NPK fertilizer plants, biological organic fertilizer plants; Investing in urea plants using natural gas and coal, high-tech NPK plants, and DAP plants; Pesticide products: Strengthening research and production of bio-based products, using new active ingredients, environmentally friendly solvents, complying with regional and international regulations;

- For industrial chemical products: By 2020, mastering advanced technology in acid productionH₂SO₄ utilizing double contact, double absorption, advanced catalytic conversion technology, and new technology for acid H₃PO₄. Basic chemical products need to apply advanced technology to ensure sufficient types of acids for fertilizer production, caustic soda for textile, paper, mineral dressing, detergent, soda ash, certain metal oxides like titanium oxide, manganese oxide, and others; Electrochemical products: Gradually adopting advanced technology to produce specialized batteries, rare gases;

- For pharmaceuticals: Applying advanced technology in the pharmaceutical field to achieve advanced and modern levels, contributing to developing the pharmaceutical industry into a leading economic and technical sector capable of producing and supplying essential medicines, aiming to independently produce medicines within the country;

e) Food Processing Industry:

- Applying advanced technology in the food processing industry to enhance economic efficiency, ensuring reasonable costs with high-quality food products;

- Advanced technologies are applied to increase the proportion of deep-processed products, enhancing added value of products; significantly reducing losses in storage, specifically from now until 2015: for rice, reducing loss rate from 3% to 0.7-1%; for fruits and vegetables from 30-35% to 10-15%; for aquatic products from 25-30% to 10-15%;

- Gradually increasing the proportion of advanced technology application in the food processing industry. Striving to achieve by 2020, 70-80% of agricultural and aquatic raw materials being processed industrially, with 30% using advanced technology in processing;

- Enhancing the application of advanced technology to improve the ability to control food safety during production and create competitive advantages for Vietnamese food products in terms of hygiene and safety;

- From now until 2010, advanced technologies applied in the food processing industry need to focus on the following areas:

Milk and dairy product processing: Cold preservation technology during milk reception; Fat separation technology for skimmed milk powder production; Blending and diversification technology for functional milk products; Production technology for additives, processing aids, and micronutrient supplements; Butter production technology; Fermentation and cheese storage technology; Multi-layer packaging technology with anti-bacterial properties; Sweet butter and fermented butter production technology; Spray drying technology for milk powder including skimmed milk powder and full-fat milk powder;

Beverage industry: Dry yeast technology in fermentation processes, short-term beer fermentation technology; High-concentration beer production technology; Energy-saving technology, ice water cooling and heat recovery from cooking pots; Sterile filtration technology; Steam injection cooking technology for liquor production; Vacuum and multi-pressure distillation and refining technology; High-temperature pasteurization technology for beer, wine, and soft drinks comparable to imported products; High-pressure, low-temperature fruit juice processing technology; Nutritious and functional beverage processing technology; Soluble protein extraction technology from soybeans;

Grain processing industry: Automated continuous rice processing technology; Grain storage technology in sealed warehouses using inert gases; Low-temperature grain storage technology; Using plant-derived substances in grain storage;

Sugar cane processing industry: Technology for sugar extraction from sugarcane using thermal diffusion solvent, SAT technology, and Cti technology; Color removal technology using ion exchange;

Aquatic and meat processing industry: Initial processing and product manufacturing, preservation technology such as freezing, canning, quick-freezing, radiation preservation, ultrasonic preservation;

Vegetable and fruit processing industry: Preservation technology using plant-derived substances, quality improvement and food safety technology;

e) Energy Industry:

- Energy is increasingly becoming a major challenge in the process of achieving economic growth targets, therefore it is necessary to apply advanced technology to ensure the efficiency of production and business processes in the energy sector, providing high-quality services with the goal of ensuring national energy security;

- Applying advanced technology in the energy sector first requires accelerating its application in areas with high applicability, yielding significant benefits and being environmentally friendly;

- From now until 2020, focus on applying advanced technology in the following areas:

Electricity production: For thermal power plants: Apply advanced technology to optimize input materials, increase the availability factor for existing operating plants. Advanced technology applied in measurement, control, and protection systems increases the reliability of the plant, contributing to improving the efficiency of the plant; For hydropower plants: Apply advanced technology to comprehensively utilize water resources in reservoirs, establish monitoring and management systems for reservoirs, manage dams to operate effectively and safely. Construct hydropower dams based on reasonably applying new world material and construction technologies. Apply high-efficiency and reliable hydropower equipment with advanced technology in new construction and replacement of old units; install modern automatic control systems; For renewable energy: Apply advanced technology to solar, wind, biogas, biomass, geothermal, etc., power sources serving households, community clusters, and large-scale installations to supplement the national grid. Aim to manufacture new energy equipment domestically; For nuclear power: Continue researching nuclear safety and current popular nuclear power technologies;

Transmission and distribution of electricity: Develop high-reliability transmission and distribution systems; capable of flexible power supply and self-restoration based on the application of advanced technology;

Application of advanced technology in dispatching and control: Complete national and regional dispatch centers; Establish at 110kV, 220kV, and 500kV substations remote data collection and device parameter systems SCADA/EMS;

Build a complete and modern information technology system applying advanced technology for the power industry.

4. Policies and solutions

a) Financial policies

- Exempt or reduce import taxes on machinery and equipment for investment in applying advanced technology in existing production lines of enterprises;

- The State supports interest rates or guarantees loans for investment in projects applying advanced technology;

- Enterprises investing in advanced technology are allowed to depreciate machinery and equipment faster as a deduction when determining corporate income tax;

b) Support policies for industrial enterprises to research and innovate technology, apply advanced technology

- The State fully or partially funds the acceptance and transfer of technology, training human resources for projects applying advanced technology; encourage the implementation of joint training programs between foreign-invested companies and domestic suppliers (local supporting industrial enterprises); Utilize the knowledge of overseas Vietnamese to develop high-tech industries;

- The State provides funding from the state budget for scientific and technological research programs and topics applying advanced technology or creating high-tech products;

- Strengthen the provision of information to enterprises towards the goal of applying advanced technology in production, protecting intellectual property rights of enterprises. The State supports enterprises in promoting trade or seeking sources of advanced technology;

c) Incentive policies for foreign investors to transfer advanced technology in Vietnam

The State creates favorable conditions for foreign investors to transfer advanced technology for application in Vietnam, while continuing to improve policies for selling shares to foreign individuals, organizations, and enterprises for privatized enterprises in priority sectors applying advanced technology;

Article 2. Implementation

1. The Ministry of Industry and Trade is responsible for leading and coordinating with relevant ministries, sectors, and provincial people's committees under the central government to implement this Strategy;

2. The Ministry of Industry and Trade coordinates with the Ministries of Planning and Investment, Finance, Science and Technology, Education and Training to concretize the solutions and policies outlined in this Decision;

3. Provincial People's Committees shall base themselves on this Strategy to study and build high-technology application programs in local industries, including proposing support mechanisms and policies for approval and implementation by the provincial people's committee; Participate with ministries and sectors in inspecting and supervising the implementation of this Strategy in their locality to ensure consistency and unity with the overall socio-economic development of the locality;

Article 3. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 4. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairmen of provincial and centrally-administered city people's committees, and related agencies are responsible for implementing this Decision./.