Decision No. 75/2007/QD-TTg Approves the Overall Plan for the Development of Vietnam's Electronics Industry until 2010 and Vision until 2020

Pursuant to …;

Approving the Overall Plan for the Development of Vietnam's Electronics Industry until 2010 and Vision until 2020

 until 2010 and vision until 2020

__________________

PRIME MINISTER

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

Based on the Law on Information Technology dated June 29, 2006.

Considering the proposal of the Minister of Posts and Telecommunications,

DECISION:

Article 1. Approving the Overall Plan for the Development of Vietnam's Electronics Industry until 2010 and Vision until 2020 with the main contents as follows:

I. VIEWPOINTS AND DEVELOPMENT OBJECTIVES

A. VIEWPOINT

1. Developing the electronics industry to become one of the key industries of the national economy with an export-oriented direction and meeting domestic market demands, contributing to promoting industrialization and modernization of the country.

2. Encouraging various economic sectors to invest in the electronics industry at different scales and forms, from finished product assembly to component and spare part production, and auxiliary products, with particular emphasis on attracting foreign investment from multinational corporations.

3. The development orientation of domestic enterprises in the near future is to shift production structures towards specialized electronics, including the production of products, components, spare parts, and auxiliary products for information technology, telecommunications, medical electronics, industrial electronics, electromechanical, measurement, and automation fields.

4. An important factor in developing Vietnam's electronics industry is to develop human resources that meet both quantity and quality requirements.

B. DEVELOPMENT OBJECTIVES

1. General objectives

Building Vietnam's electronics industry to serve effectively the cause of industrialization and modernization, national defense, and security tasks, with the ability to compete in regional and global markets.

2. Objective by 2010

Production revenue reaching from 4 to 6 billion USD; export turnover reaching from 3 to 5 billion USD; creating jobs for 300 thousand workers; achieving a growth rate of 20% to 30% per year.

3. Vision by 2020

a) The electronics industry becomes a driving force for development, making significant contributions to exports.

b) Creating jobs for 500 thousand workers; building a team of engineers and technicians with international standards.

c) Domestic production capacity has the ability to meet most market needs without relying on imported products.

d) Developing supporting industries to meet domestic production needs and exports.

đ) Production facilities are reasonably distributed according to regional development orientations.

1. On culture and family

1. Product Orientation and Product Structure

a) The group of products oriented for development includes: computers and peripheral devices; information - telecommunications; medical electronics, industrial electronics, measurement, and automation; production of components, spare parts, and auxiliary products.

b) Increasing the proportion of specialized electronic products and components by focusing on producing and assembling specialized electronic products and high-tech products to enhance the technological capabilities of enterprises.

c) Utilizing the potential for producing electronic materials, an area where Vietnam has many advantages in resources. Prioritizing the development of some areas of supporting industries such as mold making, casting, plastic injection molding, metal stamping, surface treatment (painting, plating...) to serve the production of components and spare parts for the electronics industry.

2. Market Orientation

Diversifying products, enhancing the competitiveness of products to meet domestic market demands, accessing regional and global markets with an export-oriented approach. Focusing on researching and developing high-value-added products and those competitive in the region and world.

3. Human Resource Orientation

The State encourages all economic sectors in society to participate in developing human resources to meet the needs of the electronics industry. Concentrating on training human resources in the following directions:

a) Experts in designing, researching, and developing new products that meet market demands, have high added value, and are competitive in the region and world;

b) High-level technology engineers capable of absorbing advanced technology, effectively applying it in Vietnam, and being able to innovate new technologies;

c) Skilled worker teams performing production tasks and ensuring product quality;

d) Mid-level managers who can efficiently manage production processes.

4. Research, Design, Product and Technology Development Orientation

Researching and designing consumer electronics, specialized electronics, simple components, and parts with moderate complexity levels, diverse designs to meet market demands and enhance product competitiveness.

Continuing to build and train teams for researching, designing, and developing high-tech products with high intellectual content, utilizing design, system integration, and programming capabilities to create products with higher added value.

Closely coordinating between universities and research institutes and enterprises to utilize capabilities, equipment, and research results. Encouraging the application of research results in production and business and supporting the development of new products.

Focusing directly on modern technology, receiving technology directly from foreign companies that create original technology, not through intermediaries, with the goal of prioritizing economic efficiency.

5. Regional Electronics Industry Development Orientation

Concentrating investment in developing the electronics industry in industrial zones and export processing zones in key economic regions according to their socio-economic development orientations until 2010 and vision until 2020 set by the Government.

III. IMPLEMENTATION SOLUTIONS

1. Group of solutions on mechanisms and policies

a) Improving the legal environment to improve the investment environment and protect intellectual property rights in the electronics industry.

b) Perfecting tax policies in a way that creates favorable conditions and takes into account the interests of both assembly and production enterprises, creating a healthy and equal business environment.

c) Implementing commitments in international agreements (AFTA/CEPT, WTO...).

d) Promote administrative reform; enhance state management capacity in the electronics industry; increase transparency in mechanisms and policies; continue to improve the legal foundation to improve the investment environment.

đ) Investment in infrastructure: provide stable power supply and ensure convenient information networks and transportation networks; build centralized information technology zones.

2. Group of solutions on investment capital

a) Encourage all economic sectors to invest in the electronics industry; particularly attract foreign direct investment from large multinational corporations and foreign-invested enterprises currently operating in Vietnam.

b) Mobilize domestic capital to invest in the electronics industry to the maximum extent possible.

c) Prioritize state budget funding for infrastructure construction, human resource training, research and development, and industrial marketing promotion for the electronics industry. Prioritize the use of Official Development Assistance (ODA) loans provided by the government for electronics industry development projects.

3. Group of solutions on key products

During each period, the Program for Developing Key Products, approved by the Prime Minister, will be synchronized with incentive mechanisms that bring research results into production and business operations, and regulations on minimum research and development costs for businesses to create conditions for supporting the development of new products. Enterprises eligible to participate in developing key products will enjoy investment incentives through preferential investment support from the state budget for the research and development phase, product trial production, and marketing promotion programs, as well as investment production in centralized information technology zones. The funds for developing these key products will be allocated from the state budget designated for the Program for Developing Key Information Technology Products, approved by the Prime Minister.

4. Group of solutions on market

a) Domestic market:

- For specialized electronic products and spare parts: enterprises need to take measures to improve product quality and enhance functionality to achieve high added value.

- For consumer electronic products: apply measures to improve product quality, reduce costs, and improve design to increase market share and domestic market penetration.

b) Export market: produce electronic products suitable for market needs, with competitive quality and price. Strengthen international cooperation activities, trade promotion, and market access independently or within the framework of the National Trade Promotion Program, participating in overseas trade fairs and exhibitions to obtain market information, partners. The State encourages and creates conditions for enterprises to establish branches, representative offices, or trading centers abroad to understand market demands and preferences, promote products and brands, and organize product sales.

5. Group of solutions on technology

a) Attract foreign investors to invest and transfer advanced technologies in the production of high-tech products with high intellectual content.

b) Focus investment on strategic technologies and key products based on increasing the science and technology research budget; providing credit and credit guarantees for the application of new technologies.

c) Establish appropriate mechanisms to commercialize scientific research results. Build a system of product quality testing laboratories according to international standards. Provide consulting, guidance, and support for enterprises participating in the program to establish quality management systems. Guide the registration of industrial property rights and trademarks.

6. Group of solutions on human resources

a) Significantly improve teaching methods and curricula at electronics and telecommunications departments, and information technology departments of universities and technical colleges. Strengthen the training of management teams, technical staff, and skilled workers. Selectively absorb training programs and experiences for human resource development in the electronics industry from abroad, closely linking with reputable organizations and training institutions worldwide and in the region to train high-quality human resources.

b) Encourage the application of a three-party joint training model (enterprise - institute, school - state management agency) to train highly skilled personnel according to enterprise requirements, where the training institution is managed by the enterprise or industrial park, high-tech industrial zone, or centralized information technology zone.

c) Adequately address the relationship between training, utilization, and remuneration; between initial training and retraining. Implement policies to support enterprises in the electronics industry to organize their own human resource training.

7. Group of solutions on supporting industries

a) Enhance the capabilities of essential processing industries such as metal stamping, casting, plating, and mold making within the framework of the National Supporting Industry Development Program.

b) Vigorously reform state-owned enterprises in the machinery, plastics, and casting industries into specialized production enterprises for supporting industries with high levels of specialization.

IV. KEY PROJECTS

1. Project Construction of an integrated information technology-industry complex led by the Ministry of Posts and Telecommunications, in collaboration with corporations and enterprises in the electronics industry sector.

2. Project Restructuring of Electronics Product Production led by the Vietnam Electronics Business Association.

3. Project Establishment of an Information Center for the Electronics Industry led by the Ministry of Posts and Telecommunications.

4. Project Training of Human Resources for the Electronics Industry led by the Ministry of Education and Training, in collaboration with the Ministry of Labor, Invalids, and Social Affairs.

Article 2. Responsibilities of Ministries, Sectors, and Localities

1. Ministry of Posts and Telecommunications:

a) To lead the announcement and implementation of the Plan for the Development of the Electronics Industry; to establish and issue a list of key information technology products; to manage state budget funds effectively invested in key product development projects.

b) To coordinate with ministries and sectors in developing policies to facilitate investment in the development of the electronics industry; to develop and issue quality and technical standards for electronic industrial products. To collaborate with localities, especially those economic regions planned according to regional and provincial plans, to create mechanisms and policies guiding investors to concentrate production in line with the overall development orientation of the Plan.

c) To serve as the main point of connection for domestic businesses to the market, providing information on technological trends, product designs, analyzing and forecasting statistics on national, regional, and sectoral levels to help businesses proactively produce products based on market demands and research and develop technology.

2. The Ministry of Industry leads and coordinates with relevant ministries and sectors in developing programs and policies for the development of supporting industries commensurate with the development of the electronics industry.

3. The Ministry of Planning and Investment leads and coordinates with the Ministry of Finance and the Ministry of Posts and Telecommunications in developing investment promotion policies to enhance the ability to attract investment in the development of the electronics industry; to balance state investment capital for concentrated development programs for the electronics industry during each period.

4. The Ministry of Finance leads and coordinates with relevant ministries and sectors in researching, proposing, amending, and supplementing tax policies and sources of funding to create favorable conditions for businesses during the investment and production process; to study and issue preferential policies to encourage the development of the electronics industry in line with international economic integration requirements.

5. The Ministry of Trade leads and coordinates with the Ministry of Posts and Telecommunications and relevant ministries and sectors in implementing solutions, programs, and projects to promote trade, develop markets, and build brands for the electronics industry. To prioritize the electronics industry in the National Trade Promotion Program.

6. The Ministry of Science and Technology leads in establishing and issuing policies to encourage research and development activities, import of technology, commercialization of scientific and technological results, and encouragement of businesses to develop and innovate technology; to coordinate with the Ministry of Posts and Telecommunications in issuing technical standards, quality regulations, and special provisions on technology transfer in the field of the electronics industry.

7. The Ministry of Education and Training leads in formulating training policies and training content; to coordinate with the Ministry of Posts and Telecommunications in developing human resource training plans including experts, engineers, skilled workers ready for the Plan for the Development of the Electronics Industry.

8. The Ministry of Labor, Invalids, and Social Affairs leads in formulating policies on vocational training, labor, wages, social insurance, health insurance, labor protection for workers; labor relations in the electronics industry.

9. Provincial People's Committees organize investment promotion activities, utilize reinvestment potential for infrastructure construction and renovation, administrative reform, regional linkage, and leverage geographical, economic, and human resource advantages to attract foreign investment in industrial zones, export processing zones, high-tech zones, and concentrated information technology zones at the local level.

10. Industry associations, enterprises

Industry associations are the link between businesses and state management agencies. Industry associations must promptly respond to business opinions, address administrative procedure issues, and request state management agencies to actively assist businesses in resolving obstacles; at the same time, they must help businesses grasp information from state management agencies regarding statistical indicators, market information, and products.

Enterprises actively participate in corporate restructuring programs, improving work methods in line with the professionalism of international economic groups and multinational companies. Emphasis should be placed on reinvesting in technological research and development activities, new products, and the development of key industrial products. When participating in these programs, enterprises will enjoy incentives as stipulated by law.

Article 3. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 4. THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.