Decision No. 879/QD-TTg Approving the Strategy for the Development of Vietnam's Industry until 2025, with a Vision to 2035

Pursuant to …;

Approving the Strategy for the Development of Vietnam's Industry to 2025, with Vision to 2035

đến năm 2025, tầm nhìn đến năm 2035

______________ 

PRIME MINISTER

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

Pursuant to the Strategy for Socio-Economic Development 2011-2020;

Considering the proposal of the Ministry of Industry and Trade,

DECISION:

Article 1. Approves the Strategy for the Development of Vietnam's Industry to 2025, with Vision to 2035, with the main contents as follows:

Clause 1. Views

a) Developing the industry based on effectively mobilizing all resources from all economic sectors; encouraging the development of the private sector and foreign investment.

b) Developing priority industries and sectors, with the immediate focus being the industrialization and modernization of agriculture and rural areas, based on high-quality human resources and advanced technology, using competition as a driving force for development.

c) Exploiting existing advantages and international opportunities; integrating production with services and trade, actively participating in global value chains.

d) Paying attention to developing certain dual-use industries serving national defense and security.

đ) Developing the industry based on green growth, sustainable development, and environmental protection.

2. The Strategy for the Development of Industry

Effectively mobilizing all resources from domestic and external economic sectors to develop and restructure the industry towards modernization; focusing on training industrial human resources with skills, discipline, and creative capacity; prioritizing the development and transfer of technology for industries and sectors with competitive advantages and advanced technology in some processing industries such as agriculture, forestry, fisheries, electronics, telecommunications, new and renewable energy, machinery manufacturing, and pharmaceuticals; Adjusting the spatial distribution of industry reasonably to leverage the strength of inter-industry, regional, and local linkages to participate more deeply in global value chains.

Priority groups of industries selected for development are as follows:

a) Processing and Manufacturing Industry

- Machinery and Metallurgy Group

By 2025, prioritize machinery and equipment for agriculture, automobiles and mechanical parts, steel products. After 2025, prioritize shipbuilding, colored metals, and new materials.

- Chemical Industry Group

By 2025, prioritize basic chemicals, petrochemicals, and production of technical plastic and rubber components; After 2025, prioritize the development of the pharmaceutical industry.

- Agriculture, Forestry, and Fisheries Processing Group

By 2025, prioritize increasing the processing rate of key agricultural, aquatic, and timber products in line with the restructuring of the agricultural sector. Apply international standards in the production and processing of agricultural products, building brands and competitiveness for Vietnamese agricultural products.

- Textile and Leather Footwear Group

By 2025, prioritize the production of raw and auxiliary materials for domestic production and export; After 2025, prioritize the production of fashionable clothing and high-end footwear.

b) Electronics and Telecommunications Industry

By 2025, prioritize the development of computer equipment, telephones, and components. After 2025, prioritize software, digital content, information technology services, and medical electronics.

c) New and Renewable Energy Industry

By 2025, promote the development of various forms of new and renewable energy such as wind, solar, and biomass; After 2025, develop nuclear energy for peaceful purposes, prioritizing renewable energy forms such as geothermal and wave energy.

3. Objectives

a) General Objective

- By 2025, Vietnam's industry will develop with a reasonable structure by sector and region, capable of competing to develop within integration, equipped with modern technology, and participating in global value chains in some specialized fields and sectors, able to meet the basic requirements of the economy and exports; the workforce will have sufficient qualifications to meet the needs of modern production.

- By 2035, Vietnam's industry will be developed with most specialized fields having advanced technology, product quality meeting international standards, deeply integrated into global value chains, using energy efficiently and competitively in international integration; the workforce will be professional, disciplined, and highly productive, proactive in research, design, and manufacturing stages.

b) Specific Objectives

- The annual growth rate of added value in industry during the period up to 2020 will reach 6.5 - 7.0%, during the period 2021 - 2025 will reach 7.0 - 7.5%, and during the period 2026 - 2035 will reach 7.5 - 8.0%.

- The annual growth rate of industrial production value during the period up to 2020 will reach 12.5 - 13.0%, during the period 2021 - 2025 will reach 11.0 - 12.5%, and during the period 2026 - 2035 will reach 10.5 - 11.0%.

- Strive for the proportion of industry and construction in the national economic structure to reach 42 - 43% by 2020, 43 - 44% by 2025, and 40 - 41% by 2035.

- The ratio of industrial goods in total export turnover will reach 85 - 88% by 2025, exceeding 90% after 2025.

- The value of high-tech products and products applying high technology will reach about 45% of GDP by 2025, exceeding 50% after 2025.

- The ICOR index for industry during the period 2011 - 2025 will reach 3.5 - 4.0%, and during the period 2026 - 2035 will reach 3.0 - 3.5%.

- The energy/GDP elasticity coefficient in 2015 will be 1.5, reaching 1.0 by 2020, and maintaining at 0.6 - 0.8 by 2035, approaching levels in the region.

- The average annual increase in greenhouse gas emissions from the industry will be within 4 - 4.5%.

4. Orientation

a) By 2025

- Gradually adjusting the model of industrial growth from mainly quantity-based to productivity, quality, and efficiency-based, promoting the development of industries and products with high added value and large export value; linking production with the development of industrial services.

- Concentrating on developing supporting industries, especially mechanical, chemical, and electronics and telecommunications products serving industrial production, while participating in the global production network.

- Strengthen the development of industries serving agriculture and rural areas; energy-efficient and effective industries; focus on developing industries serving national security and defense. Gradually develop new material industries and environmental industries.

- Strengthen the development of industries following a model combining horizontal and vertical integration.

- Adjust the spatial distribution of industries to ensure compatibility among regions nationwide, address the high density of industries in certain areas, and ensure balance and harmony among regions and localities.

- Develop priority industries in core industrial zones formed from each economic zone and coastal economic zones; transfer labor-intensive industries, primary processing industries, and supporting industries from core industrial zones to buffer industrial zones.

b) By 2035

Vietnam's industry will develop in an environmentally friendly manner, focusing on green industries with advanced technology, products with reputable brands, high quality, and value, having regional and international significance, strong competitiveness, meeting standards of developed countries, and participating deeply in global value chains.

5. Implementation measures

a) Breakthrough solutions

- Reform the institutional framework for industrial development

+ Improve state management mechanisms to eliminate overlapping policies, ensuring stable, consistent, and simplified administrative procedures that encourage production development.

+ Enhance coordination in industrial development by sector, region, and territory, improving the effectiveness of guidance and management to effectively link localities in industrial development.

+ Rationalize decentralization to enhance the effectiveness of state management over the industrial development process.

+ Create equality between economic sectors, particularly focusing on enhancing the role of the private sector through the effective enforcement of property rights protection and equal access to resources.

+ Review, adjust, and supplement technical standards and norms in line with international standards.

- Reform and improve the efficiency of business operations

+ Reorganize the industrial sector and restructure enterprises and state-owned corporations according to approved projects.

+ Timely adjust the scope of activities of state-owned enterprises in line with specific circumstances; complete and issue criteria for classifying state-owned enterprises by industry and field.

+ Establish mechanisms and timelines for developing the number of manufacturing enterprises, particularly focusing on increasing the proportion of large and medium-sized enterprises in the national enterprise system.

- Develop human resources

+ Develop plans for human resource development for priority industries at each specific stage.

+ Establish and issue a system of training quality standards at all levels, initially focusing on international skill standards.

+ Reform training programs, especially vocational training; Promote cooperation between vocational training institutions and businesses through joint training programs, consulting on training program content, and increasing practical training time.

+ Improve the labor market and job introduction services.

- Technological solutions

+ Accelerate the application of new and modern technologies to create technological breakthroughs in production for key and priority industries.

+ Focus investment on building scientific research and technology centers capable of mastering new technologies, innovating technologies to serve the development of priority industries.

+ Promote the development of the science and technology market.

+ Increase investment and intensify research and development (R&D) activities to be able to independently research, design, and manufacture some high-tech products while expanding national-level scientific and technological cooperation with strategic partners.

b) Long-term solutions

- Investment attraction mechanism

+ Establish a system of preferential policies linked to investment promotion work to attract social capital and foreign direct investment (FDI) into industrial development.

+ Encourage enterprises to expand their scale of investment in terms of both capital and scope.

+ Call on major multinational corporations to participate in important projects in the national key project list for FDI.

+ Consolidate and enhance the role of industry associations, government, and non-governmental organizations; strengthen the organization of collaboration between domestic and foreign enterprises to jointly participate in global production value chains.

- Market development

For the output market: besides traditional markets such as China, East Asia, ASEAN, the United States, and the European Union, actively exploit large and potential emerging markets like the BRIC countries (including Brazil, Russia, India).

For the input market: regarding capital: continue to effectively utilize investment capital from East Asia, the United States, and ASEAN; regarding technology: focus on attracting high-tech and source technology projects from the United States, Japan, and the European Union.

- Adjust the quality of industrial growth

+ Implement comprehensive policies to attract investment, financial and monetary policies, labor policies, wage policies, etc., to improve the quality of industrial growth through issuing and announcing lists of encouraged investment industries, controlled and restricted investment industries, and product details eligible for financial support. At the same time, strictly control the importation of technology through regulations on conditions, standards, and types of technology allowed for import.

+ Incorporate added value (VA) indicators into the annual reporting and evaluation system of enterprises and industries, forming average industry indicators as a basis for enterprises to compare, analyze, and strive to achieve.

- Develop supporting industries

+ Select groups of supporting industries that need to be prioritized for development in accordance with specific conditions at each stage.

+ Establish mechanisms and specific preferential policies for specialized industrial zones and supporting industrial clusters. At each point in time, there should be specific mechanisms and policies suitable for the development situation of the industry.

- Adjust the industrial structure according to territorial areas

+ Strengthen the linkage between localities within economic regions, build infrastructure for the development of various industries.

+ Enact policies to encourage the formation of industry cluster linkages (clusters) in fields with advantages, particularly in core and buffer industrial zones.

+ Build and implement regional-scale industrial development projects, prioritizing projects with high scientific and technological content (mechanical manufacturing, information technology, electronics, telecommunications...).

- Develop the industrial service system

+ Complete infrastructure for industrial development in sync with the national general infrastructure development, focusing on developing the logistics system.

+ Vigorously develop industrial investment advisory services; build databases on the Vietnamese industrial system (including databases on supporting industries) to serve policy planning, adjustment, and information provision for economic organizations and domestic and foreign investors.

+ Continue to reform customs procedures to create a transparent environment and reduce costs for businesses in implementing import and export procedures.

- Environmental solutions

+ Strictly implement environmental protection laws; take prevention and control of pollution as the main principle combined with pollution treatment, environmental improvement, and natural conservation.

+ Develop and issue technical standards for environmental protection to ensure sustainable development, timely detect and strictly handle violations of environmental protection laws.

+ Promote education and raise awareness about environmental protection, combine socialization of environmental protection work to mobilize broad public participation in environmental management, resource protection, and long-term exploitation and use of infrastructure for waste treatment.

c) Solutions for developing priority industries

- Processing and Manufacturing Industry

+ Machinery and Metallurgy Group

. Select and focus investment on certain research units to enhance design capabilities to meet development requirements.

. Invest in developing steel production for machinery: steel sheets, steel profiles, alloy steels.

+ Chemicals Group

. Concentrate investment in key projects, prioritizing petrochemical products.

. For pharmaceuticals, focus on researching natural medicinal materials to produce excipients and vitamins to meet domestic medical needs, aiming for exports in later stages.

+ Agriculture, Forestry, and Aquaculture Processing Group

. Encourage investment in large-scale raw material cultivation areas to ensure sufficient and standardized raw materials for processing industries.

. Prioritize competitive export products, combining with building and developing distinctive brands for Vietnamese agriculture, forestry, and aquaculture.

+ Textiles and Footwear Group

. Diversify product production and proactively develop raw and auxiliary materials.

. Intensify exploitation of traditional export markets; maximize Vietnam's advantages when participating in bilateral and multilateral trade agreements; promote potential markets such as Russia, the Middle East, Eastern Europe, Africa; establish retail distribution systems with Vietnamese brands.

- Electronics and Telecommunications Industry

+ Encourage the development of software, especially embedded software in hardware, electronic, and telecommunication devices, to meet domestic needs.

+ Develop dual-use fields serving defense such as cruise missile control electronics, reconnaissance and search telecommunication electronics; electronics in unmanned aerial vehicles...

- New and Renewable Energy Industry

+ Enhance cooperation with countries and international organizations to develop and utilize nuclear energy for peaceful purposes, gradually mastering the technology.

+ Focus on applying advanced technologies for solar, wind, biogas, biomass, geothermal power generation; continue researching nuclear safety and current nuclear power technologies for peaceful purposes.

6. Implementation organization.

a) Ministry of Industry and Trade:

- Take the lead, coordinate with relevant ministries, provincial people's committees, and related agencies to implement the Strategy; inspect and evaluate the implementation of the Strategy, regularly report to the Prime Minister.

- Take the lead, coordinate with the Ministry of Planning and Investment and related localities to determine core and buffer industrial zones, report to the Prime Minister for approval and implementation.

- Take the lead, coordinate with relevant ministries and agencies to review, supplement, build, issue, or submit to competent authorities for issuance of appropriate policies to promote industrial development.

b) Relevant Ministries and Agencies

- Ministry of Planning and Investment: Lead, coordinate with the Ministry of Industry and Trade and the Ministry of Finance to develop policies to strengthen the ability to attract investment in industrial development; balance short-term and long-term investment capital for industrial development.

- Ministry of Finance: Lead, coordinate with relevant ministries and agencies to study and propose amendments and supplements to financial policies to encourage the development of priority industries in line with the process of international economic integration.

- Ministry of Education and Training, Ministry of Labor - Invalids and Social Affairs: In accordance with their functions, tasks, and scope of state management assigned, take the lead in developing plans to train human resources for industrial production for each period; guide, inspect, and supervise the implementation of labor laws in enterprises within industrial zones; coordinate with the Management Boards of industrial zones to effectively perform state management tasks related to labor in industrial zones.

- Ministry of Agriculture and Rural Development: Take the lead and coordinate with the Ministry of Industry and Trade and localities in building programs and policies to develop and ensure a stable supply of raw materials in terms of quantity and quality for processing industries.

- Ministry of Information and Communications: Take the lead and coordinate with the Ministry of Industry and Trade and localities in implementing solutions to develop information technology and telecommunications to serve domestic industrial production and participate in regional and global supply chains.

- Ministry of Construction, Ministry of Natural Resources and Environment: In accordance with their functions, tasks, and scope of state management assigned, take the lead and coordinate with: Ministry of Planning and Investment, Ministry of Industry and Trade and localities in researching and planning the construction of economic regions suitable to available resources, potential, and the direction of industrial development; Coordinate with the Ministry of Industry and Trade to inspect and guide enterprises in complying with national regulations on industrial environmental protection.

- Ministry of Science and Technology: Take the lead and coordinate with the Ministry of Planning and Investment, Ministry of Industry and Trade in implementing solutions on science and technology to increase the high-tech content in Vietnam's industrial products; build policies for technological innovation and application; assess technological levels.

- State Bank of Vietnam: Flexibly manage monetary policy according to the goal of controlling inflation and stabilizing the macro-economy to create favorable conditions for the export of industrial products, contributing to gradually reducing the trade deficit.

- Other Ministries and sectors shall, in accordance with their functions, tasks, and scope of state management, have the responsibility to coordinate with the Ministry of Industry and Trade to organize the effective implementation of relevant contents in the strategy.

c) People's Committees of provinces and centrally governed cities

- People's Committees of provinces and centrally governed cities are responsible for organizing the implementation of the Strategy, coordinating with relevant Ministries and sectors to build and adjust industrial development plans in their respective areas in line with this Strategy.

- Localities in the core region (four key economic zones and five prioritized coastal economic zones): Review the industrial structure at the local level and throughout the region, study and consider opportunities to develop priority industries in the region, form industry clusters within the region.

- Other localities in the buffer zone: Prepare necessary resources (human resources, land funds, etc.) to welcome the transfer of industry from localities in the core region.

12/2025/TT-BNNMT dated June 19, 2025 issued by the Minister of Agriculture and EnvironmentThis Decision takes effect from the date of issuance.

Article 3. 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./.