Decision No. 73/2006/QĐ-TTg Approving the Overall Plan for the Development of Vietnam's Industries According to Territorial Areas until 2010, with Vision until 2020

 

Pursuant to …;
Approving the Master Plan for the Overall Development of Industrial Sectors in Vietnam by Regions until 2010, with Vision to 2020

industry of Vietnam according to territorial regions by 2010,

vision until 2020

_________

 

PRIME MINISTER

 

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Considering the proposal of the Ministry of Industry at the report No. 2723/TTr-KH dated May 27, 2005 and the letter No. 4373/CV-KH dated August 16, 2005; opinions of relevant ministries and agencies,

 

Pursuant to …;

Article 1Approving the Master Plan for the Overall Development of Industrial Sectors in Vietnam by Regions until 2010, with Vision to 2020, with the main contents as follows:

I. Views, Objectives, and Priority Directions for Development

Clause 1. Views

a) View on the Development of the Entire Industrial Sector

- Developing industry based on leveraging the comprehensive resources of all economic sectors, with state-owned industrial sector playing a guiding role.

- Developing industry towards forming a dynamic balance, ensuring priority development of industries and regions that are suitable with resources and advantages in each period and consistent with the process of international economic integration.

- Developing industry must ensure active and effective participation in industrial linkages and production cooperation among enterprises, between industries, and with multinational corporations worldwide.

- Developing industry closely ties with developing services; developing rural industry, creating direct impetus for the process of industrialization and modernization of agriculture and rural areas, accelerating urbanization.

- Developing industry in conjunction with requirements for sustainable, progressive, socially equitable development and environmental protection.

- Developing industry in combination with the need to consolidate national defense and security.

b) View on the Development of Industry by Regions Based on Leveraging the Strengths of Each Region to Develop According to an Open Economic Structure, Linked to Domestic and Foreign Market Demands.

Key economic regions should play a leading role, develop rapidly towards shifting gradually to high-tech and high-value-added industries, promoting the development of other regions.

Linking labor-intensive industries, processing industries for agricultural, forestry, and marine products with raw material regions and rural, mountainous areas.

2. Direction for Industrial Development

a) Direction for Industrial Development Until 2010

Concentrating on developing industries capable of leveraging competitive advantages, dominating domestic markets, and boosting exports such as hydropower, processing of agricultural, forestry, aquatic products, garments, leather-shoes, electronics-computer, some mechanical products, pharmaceuticals, and consumer goods...

Selectively building some heavy industrial facilities: oil and gas, metallurgy, machinery manufacturing, basic chemicals, fertilizers, construction materials... with reasonable steps, suitable conditions of capital, technology, market, and achieving efficiency.

Prioritizing the development of high-tech industries, especially information technology, telecommunications, electronics, automation. Emphasizing the development of software production industry.

Effectively developing industrial zones, export processing zones, establishing some high-tech zones and open economic zones.

Encouraging the development of small and medium-sized industrial clusters in rural areas to create conditions for diverse industrial production bases, attracting many workers, contributing to accelerating the process of industrialization and modernization of agriculture and rural areas.

b) Vision for Vietnam's Industry Until 2020

Striving to reach by 2020, the GDP of industry and construction could increase at least five times compared to 2000. The share of GDP of industry and construction in the total national GDP reaches over 45% in 2020. The industrial structure shifts towards increasing the proportion of processing industry, reaching 87-88% in 2020. The ratio of trained labor force reaches 60%. The ratio of manufactured goods in exports reaches 70-75%. The ratio of high-tech industries reaches about 40-50%. The share of industrial export value reaches 85-90% of the country's total export value.

3. Objectives

Industrial production value achieves an average annual growth rate of 15-16% during the period 2006-2010.

The share of industry and construction in GDP reaches 43-44% (industry alone 37-38%) in 2010.

Maintaining the growth rate of added value of the industry at above 10.2% annually during the period 2006-2010 and above 10.3% annually after 2010.

The pace of technological innovation in the industry averages 12-15% annually.

Building a workforce of science and technology professionals in the industry ensuring quantity and quality to research, apply, receive, operate, and effectively exploit technologies and equipment of the industry.

Export turnover of industrial goods increases at an average rate of 16-18% annually.

Detailed growth targets are set out in Appendix I.

II. Orientation and development goals for industry in each territorial region by 2010 (specific zoning see Appendix IX).

1. Region 1

a) Orientation

Focus on developing hydropower, processing agricultural and forestry products (paper, tea, wood, food, beverages...), mining and processing mineral resources (iron ore, apatite, coal, copper, lead, zinc, tin, tungsten), chemicals, fertilizers, metallurgy, construction materials production. Emphasize the development of mechanical industry serving agriculture and processing industries.

b) Goals

Achieve a share of industry in the total GDP of the region reaching 23-24% in 2010; the share of basic industries reaching 37-38% of the total value of industrial production in the region. Maintain the share of processing industries in agriculture, forestry, and fisheries at 25-26%.

Detailed growth targets are set out in Appendix II.

2. Region 2

a) Orientation

Focus on developing the mechanical industry (manufacturing machinery, shipbuilding, electrical equipment, transportation means...), thermal power, developing the electronics and information technology industry, chemicals, metallurgy, mining and processing mineral resources, production of construction materials. Continue to rapidly develop the textile and footwear industry for export. Emphasize the development of processing industries in agriculture, forestry, and fisheries.

b) Goals

The share of industry in the total GDP of the region reaches 40-41% in 2010; the share of basic industries by 2010 accounts for 45.8-46.8% of the total value of industrial production in the region, of which the mechanical industry (manufacturing machinery, shipbuilding, electrical equipment, transportation means...) alone accounts for 27.5-28.5%.

Detailed growth targets are set out in Appendix III.

3. Region 3

a) Orientation

Focus on developing processing industries in agriculture, forestry, and marine products, oil refining, petrochemicals, shipbuilding, manufacturing machinery, textile and footwear production, and construction materials. Gradually establish and develop the electronics and information technology industry to support other industries' development.

b) Goals

By 2010, the share of industry in the total GDP of the region reaches 46-47%, the share of basic industries reaches 24-25%, of which the chemical industry alone accounts for 19-20%. Maintain the share of processing industries in agriculture, forestry, and fisheries at 39-40% of the total value of industrial production in the region. Complete investment and put into operation the Dung Quat oil refinery.

Detailed growth targets are set out in Appendix IV.

4. Region 4

a) Orientation

Focus on developing hydropower, processing agricultural and forestry products (such as coffee, rubber, paper pulp, sugar cane...), and mining and processing mineral resources, particularly bauxite.

b) Goals

The share of industry in the total GDP of the region reaches 13-14% in 2010; the share of processing industries in agriculture and forestry, such as coffee, rubber, paper pulp, sugar cane... accounts for 38-39% of the total value of industrial production in the region; basic industries account for 27.6-28.5%, with efforts to bring large-scale bauxite-alumina complexes into production for export.

Detailed growth targets are set out in Appendix V.

5. Region 5

a) Orientation

Focus on developing the oil and gas extraction and processing industry, electricity, processing industries in agriculture, forestry, and marine products, and especially the mechanical industry, electronics, software industry, chemicals, pharmaceuticals. Develop high-quality textile and footwear industries for export. Develop industries based on advanced technology, producing knowledge-intensive products. Gradually reduce the share of labor-intensive industries.

b) Goals

In 2010, the share of industry in the total GDP of the region reaches 51-52%; the share of basic industries accounts for 41.6-42.6% of the total value of industrial production in the region.

Detailed growth targets see Appendix VI.

6. Region 6

a) Orientation

Focus on developing the processing industry for agricultural, forestry, and aquatic products oriented towards export; develop industries using gas; develop mechanical engineering serving agriculture, especially post-harvest and preservation industries and processing industries for agricultural, forestry, and aquatic products, shipbuilding machinery.

b) Goals

In 2010, the proportion of industry in the region's total GDP will reach 26-27%; develop the processing industry for agricultural, forestry, and aquatic products as the main sector (accounting for 56.6-57.6% of the total value of industrial production in the region).

Detailed growth targets see Appendix VII.

III. Orientation for Developing Industrial Zones and Clusters

Strengthen efforts to attract investors to fill existing industrial zones. Carefully consider and weigh the construction of new industrial zones along convenient traffic corridors.

When building industrial zones, take into account the construction of urban areas to ensure housing and cultural social activities for workers.

The development of industrial clusters must be closely linked with the establishment of waste treatment systems to protect the environment and ecology.

Develop industrial clusters to promote the development of small-scale handicrafts and rural industry.

IV. Total Capital Investment Needs for Industrial Development until 2010 are 640-670 billion VND (details see Appendix VIII)

V. Measures and Policies for Implementation

1. Basic Measures

a) Reform State Management over Industry

- State management of the industry should shift strongly towards functions that promote and serve development, minimize the use of administrative measures in business operations, reduce management links in the industry.

- Continue to study and innovate thinking and methodological approaches in planning construction and management to suit a market economy mechanism with socialist orientation, enhancing the quality of planning, making planning truly one of the tools for managing the industry.

- Continue to study and build projects for developing various industries such as improving competitiveness, promoting industrial exports; developing processing industries; developing supporting industries... effectively implement projects to develop industries serving industrialization and modernization of agriculture and rural areas; promote promotional activities...

- Promote administrative reform, promptly address enterprises' recommendations.

b) Measures Related to Production and Business Mechanisms

- Create a transparent, unified, fair competitive environment for production and business regardless of economic components.

- Establish an income distribution mechanism based on results and efficiency to create motivation for the development of production and business of industrial enterprises.

c) Reform State-Owned Enterprises

- Continue to reorganize, reform, develop, and improve the effectiveness of state-owned enterprises according to the spirit of Resolution No. 3 and Resolution No. 9 of the Ninth Party Congress, Directive No. 45-CT/TW dated October 22, 2004 of the Politburo, Directive No. 11/2004/CT-TTg dated March 30, 2004 of the Prime Minister.

- Develop some important State Holding Corporations into strong economic groups capable of competing in international economic integration.

d) Enhance the Competitiveness of Industrial Products

- Develop solutions to reduce production costs, particularly intermediate costs.

- Improve production technology capabilities to produce products of sufficient quality to compete in domestic, regional, and global markets.

- Build and perfect a synchronized legal system to create a basis for rapid e-commerce development.

2. Main Policies

a) Capital Mobilization Policy

- Capital mobilization from multiple sources, particularly idle capital in the community, foreign investment, and self-arranged capital of enterprises.

- Diversify capital mobilization forms, focusing on international capital mobilization.

b) Human Resource Training Policy

- Implement talent nurturing policies through training, remuneration, salary, and management and utilization of cadres to gradually form a team of leading scientific researchers for industrial development.

- Diversify training formats. Link training with actual production.

- To encourage human resource training, enterprises can include training costs in product cost calculations.

c) Science, Technology, and Environmental Policy

- Prioritize budget allocation for research and technological development in the industry. Encourage businesses, especially non-state sectors, to invest in science and technology.

- Strengthen intellectual property protection, inventions, and patents to motivate investment in scientific research.

- Establish centers providing information, consulting, and transferring advanced and modern technologies to businesses.

- Develop and expand the science and technology market.

- Implement special incentives to attract skilled intellectuals, experts, and skilled workers to work in economically and socially difficult regions. Encourage overseas Vietnamese to transfer and develop technology.

- Enact specific regulations on environmental pollution management in industrial production.

d) Financial and Tax Policy

- Regarding finance:

+ Create all conditions for investors to mobilize capital from all sources.

+ Expand and develop financial organizations to serve industrial development.

- Regarding taxes: supplement certain tax policies to promote the development of key industries in line with the process of international economic integration.

Article 2. Implementation

1. For Ministries and Sectors

- The Ministry of Industry has the responsibility to announce and direct the implementation of this plan, while also having the responsibility to monitor and adjust the plan when there are changes affecting the economy.

Coordinate with relevant ministries, sectors, and localities to continue researching and perfecting the role of state management in the industry and development policies for specialized fields.

- The Ministry of Finance shall study and propose amendments and supplements to tax incentive policies to encourage the development of key industries in line with the process of international economic integration.

- The Ministry of Planning and Investment shall develop investment policies and balance investment capital for industrial development in annual and five-year plans.

- The Ministry of Science and Technology shall cooperate with the Ministry of Industry to develop science and technology policies to serve industrial development.

- The Ministries of Planning and Investment, Agriculture and Rural Development, Construction, Trade, Science and Technology, Natural Resources and Environment, Transport, Finance, and the State Bank of Vietnam... shall coordinate, within their assigned functions, to address related issues as proposed by the lead agency.

2. For localities

Provincial People's Committees under the Central Government

- Specificize and adjust, supplement the industrial development planning on provincial and municipal territories in accordance with this planning orientation.

- Incorporate the implementation contents of this planning into annual and five-year plans for state consolidation and balancing.

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 government-affiliated agencies, Chairpersons of provincial and municipal people's committees under the Central Government are responsible for implementing this Decision.