Decision No. 880/QD-TTg Approving the Overall Plan for the Development of Vietnam's Industry until 2020, with a Vision to 2030

Pursuant to …;

Approving the overall planning for the development of the industrial sector in Vietnam until 2020, with a vision to 2030

Pursuant to Decision No. 879/QD-TTg dated June 9, 2014 of the Prime Minister approving the Strategy for the Development of Industry in Vietnam until 2025, with a vision to 2035;

PRIME MINISTER

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

Considering the proposal of the Ministry of Industry and Trade,

Approves the overall planning for the development of the industrial sector in Vietnam until 2020, with a vision to 2030, including the following main contents:

DECISION:

Article 1. a) Developing industry focused on certain industries that meet domestic demand and rapidly increase exports.

Clause 1. Views

b) Concentrating on developing processing and manufacturing industries, enhancing competitiveness in the global market; vigorously developing supporting industries to participate in global production chains.

c) Encouraging the development of private enterprises and foreign investment; promoting sustainable development of the non-state economic sector. Paying special attention to the development of small and medium-sized enterprises.

d) Developing industrial human resources is a decisive condition for the success of the process of industrialization and modernization.

đ) Developing industry according to environmental standards, moving towards green technology from 2020 onwards.

a) The growth rate of added value of industry during the period up to 2020 reaches 6.5 - 7.0% per year and during the period 2021 - 2030 reaches 7.5 - 8.0% per year.

Clause 2. Objectives

b) The growth rate of industrial production value during the period up to 2020 reaches 12.5 - 13.0% per year and during the period 2021 - 2030 reaches 11.0 - 12% per year.

c) Striving to achieve by 2020 the proportion of industry and construction in GDP accounting for 42 - 43%, and by 2030 accounting for 43 - 45%.

d) By 2020, the proportion of processing and manufacturing industry accounts for 85 - 90% of industrial production value; high-tech products and products applying high technology account for about 45% of total GDP; by 2030, the corresponding ratios are 90 - 92% and over 50%.

đ) The energy elasticity/GDP ratio in 2015 reaches 1.5; in 2020 reaches 1.0 and after 2020 is less than 1.0.

e) The rate of greenhouse gas emissions in the industrial sector increases on average within the range of 4 - 4.5% per year.

3. Orientation

a) Accelerating the restructuring of the industrial sector towards increasing the proportion of processing and manufacturing industries, high-tech industries.

b) Developing key industries to be ready to meet the basic production needs of the economy in the next phase of development.

c) Prioritizing the development of competitive industries, aiming at producing some branded products participating in the country's key export chains.

d) Concentrating on developing supporting industries, forming production division, cooperation, and participation in manufacturing processes.

đ) Implementing appropriate spatial distribution of industry to leverage comparative advantages of regions and create effective linkages.

4. Contents

a) Mechanical - Metallurgical Industry

- Investing in the development of certain specialized fields and key products to basically meet the needs of the economy such as: power machinery, mechanical equipment for agriculture, forestry, fisheries, and processing industries, machine tools, construction machinery, shipbuilding machinery, electrical-electronic equipment, automobile and transportation machinery. Forming several leading manufacturing groups to accelerate the process of industrialization under market economy conditions and international integration.

- Developing the metallurgical industry in the direction of using advanced technology, environmentally friendly, integrated equipment with high interconnectivity and low raw material and energy consumption; gradually meeting the demand for various types of steel for manufacturing, alloy steel, some non-ferrous metals; focusing on solving basic stages such as casting, forging billets, heat treatment, product quality inspection.

- Combining with national defense industry, building programs and projects for dual-use products to effectively utilize resources and enhance the ability to meet national security needs when necessary.

- The growth rate of industrial production value in the mechanical-metallurgical industry during the period up to 2020 reaches 15 - 16%; during the period up to 2030 reaches 14 - 15%.

- In 2020, the proportion of the mechanical-metallurgical industry accounts for 20 - 21% and in 2030 accounts for 22 - 24% in the industrial structure.

- In 2020, the mechanical-metallurgical industry meets 45 - 50% of the domestic market demand and in 2030 meets up to 60%.

- By 2020

Focus on developing the following groups of products:

+ Group of electrical engineering machinery and equipment: Producing and assembling generators up to 600 MW; wind power generators, solar panels; researching and manufacturing 500 kV transformers; manufacturing mini electric motors.

+ Group of machine tools and accessories: Manufacturing molds; manufacturing standard equipment; developing high-tech automatic control systems, precision mechanics.

+ Group of lifting machinery: Producing forklifts, large pressure equipment for ships.

+ Group of specialized machinery: Producing agricultural and forest product processing equipment, food processing equipment, packaging equipment, product labeling equipment; oil and gas equipment; medical equipment.

+ Group of motorized vehicle manufacturing: Manufacturing gasoline engines, car transmissions; assembling various types of passenger cars, buses, light trucks, and agricultural vehicles serving rural areas; producing diesel engines.

+ Group of marine equipment: Manufacturing marine engines; building new large-tonnage vessels.

+ Group of agricultural machinery and equipment: Producing medium and small diesel engines, small gasoline engines, cultivation machinery, food preservation and processing equipment, beverages.

+ Group of super heavy and offshore drilling equipment.

+ Group of steel industry: Continuing to implement approved planning projects.

+ Vigorously producing steel sheets, large-section steel profiles, and seamless steel pipes with advanced technology; special steels for machinery manufacturing and national defense.

- By 2030

- By 2030

Continue to invest in some projects with high technology to produce equipment meeting green, clean production requirements, consuming less materials and energy, having high added value, using lightweight materials; producing high-quality household appliances with new materials; manufacturing and assembling aircraft equipment, air traffic control devices, marine current monitoring devices; manufacturing measuring instruments and medical equipment.

b) Chemical industry

- Develop the chemical industry towards using advanced technology to create products of good quality, competitive costs, reducing and limiting the release of harmful chemicals into the environment.

- Develop the petrochemical, basic chemical, and agricultural chemical industries.

- The growth rate of industrial production value in the chemical industry phase up to 2020 reaches 14 - 16%; phase up to 2030 reaches 11 - 13%.

- In 2020, the proportion of the chemical industry accounts for 13 - 14% and in 2030 accounts for 14 - 15% in the industrial sector structure.

- By 2020, the chemical industry meets 75 - 80% of domestic market demand and by 2030 meets 85 - 90%.

Focus on developing the following groups of products:

+ Continue to implement investment projects for fertilizer production such as DAP, urea; automobile radial tire production; production of basic chemical products like H₂SO₄ and H₃PO₄; antibiotic production of the Cephalosporin type; Sorbitol production; excipients, various types of vitamins.

+ Develop the petrochemical industry as raw material for the plastic industry (meeting 40-50% of domestic demand for industrial sectors).

+ Continue to implement expansion phase 2 and some new projects according to the approved Chemical Industry Master Plan.

- By 2030

Based on market demand and investment capacity at the time of 2020, consider expanding some projects based on applying new technologies, ensuring higher economic, social, and environmental requirements. Targeted projects include: High-end cosmetics production; production of hybrid and electric vehicle batteries. Continue developing the pharmaceutical chemical industry (vaccine production).

c) Electronics and Information Technology Industry

- Build the electronics and information technology industry into a leading industry to provide a foundation supporting other industries' development.

- Continue developing assembly methods for electronic and computer equipment to meet domestic electronic product needs and participate in exports; strengthen collaboration with major global electronics and IT corporations to adopt modern technology and enhance domestic component production capacity.

- Encourage the production of software products serving various industries and participating in export markets.

- The growth rate of industrial production value in the electronics and information technology industry phase up to 2020 reaches 17 - 18%; phase up to 2030 reaches 19 - 21%.

- In 2020, the proportion of the electronics and information technology industry accounts for 9 - 10% in the industrial sector structure and meets 65 - 70% of market demand; in 2030, it accounts for 12 - 13% and meets 75 - 80% of demand.

Focus on developing the following groups of products:

Research, design, manufacture, and assemble specialized electronic equipment, produce industrial robots, manufacture common electronic components and electromechanical parts. Focus on the following project groups and programs:

+ Computer and office equipment group: Research technology to develop integrated networks between information technology devices and communication technologies (wired and wireless), integrating multifunctionality between specialized and consumer devices;

+ Specialized electronic equipment group: Gradually master the technology for producing transmission, connection, switching devices; manufacture and assemble high-tech control devices; produce electronic measurement, monitoring, warning devices; produce specialized screens; produce common medical electronic devices; manufacture and assemble multi-band transceivers; manufacture and assemble satellite-based search, remote sensing, positioning devices.

+ Consumer electronic equipment group: Promote production through joint ventures or based on orders from component suppliers with projects: Manufacturing and assembling multifunctional digital TV equipment; manufacturing and assembling various types of digital cameras; manufacturing and assembling internet TVs; manufacturing and assembling audiovisual educational electronic devices.

+ Software industry: Alongside developing some proprietary programs and operating systems, focus on developing application software and services on widely used operating systems. Develop embedded software and design software.

Adopt and master new technologies in the production of mainframes and peripheral devices suitable for new-generation internet; wireless information technology devices; high-standard home electronic appliances; synchronized assembly components including flash RAM (fast memory); some electromechanical and automation control devices; multilayer printed circuit board and high-precision mold manufacturing technologies; medical electronics industry.

- By 2030

+ Strive to self-supply 80% of the country's software needs.

+ Diversify hardware types to meet over 70% of domestic demand, increasing the proportion of wireless devices as needed.

+ Equipment and technology fully transition to digital technology.

d) Textile-Garment and Footwear Industry

- Develop the textile-garment and footwear industry towards specialization and modernization, aiming to achieve a significant leap in product quality and quantity.

- Export-oriented development while maximizing domestic market demand. Focus on developing industrial support products, producing raw materials, and increasing the added value of products within the industry.

- The growth rate of industrial production value in the textile-garment and footwear industry phase up to 2020 reaches 10 - 12%; phase up to 2030 reaches 8 - 9%.

- In 2020, the proportion of the textile-garment and footwear industry accounts for 10 - 12% in the industrial sector structure and meets 90 - 95% of market demand; in 2030, it accounts for 7 - 8% and meets 100% of demand.

Focus on developing the following groups of products:

+ Continue to develop textile-garment and footwear production oriented towards exports, combining domestic market needs with appropriate designs, quality, and prices that match consumers' purchasing power across regions, focusing on rural and mountainous areas;

+ Investment to upgrade and combine with new investment in production lines for high-end fashion products; construction of modern-scale fashion design centers; continued implementation of the 5 billion meter fabric program. Cooperation with the oil and gas industry in investing in some synthetic fiber projects.

+ Research and construction of specialized trade promotion centers. Focus on meeting the needs of textile and footwear auxiliary materials; effectively exploit synthetic fiber projects.

- By 2030

+ Concentrate on developing cotton raw material regions and livestock breeding areas to ensure part of the cotton and leather raw materials for the industry.

+ Continue researching and developing various types of high-end fashion clothing and shoes to serve markets with high quality requirements.

d) The processing industry of agriculture, forestry, fishery products, food, and beverages

- Develop the industry towards modernization, gradually enhance competitiveness to proactively integrate into the region and the world. Focus on building and developing brands in domestic and export markets;

- Concentrate on developing large-scale raw material regions to serve processing based on widely applying new varieties with high yield and quality, applying advanced technology in planting and storage, post-harvest processing.

- Industrial value-added growth rate of the processing industry of agriculture, forestry, fishery products, food, and beverages from now to 2020 reaches 9-10%; from now to 2030 reaches 8-9%.

- In 2020, the proportion of the processing industry of agriculture, forestry, fishery products, food, and beverages accounts for 25-27% in the industrial structure and meets 80-85% of market demand; in 2030, it accounts for 21-23% and meets 90-95% of demand.

Focus on developing the following groups of products:

+ For the beer, wine, soft drink, and vegetable oil industries: Implement according to the approved development plan.

+ Construct food processing plants and seafood processing plants with advanced technology in regions with favorable raw materials; invest in upgrading aquatic feed processing plants and animal feed processing plants.

+ Produce functional foods and process seafood using biotechnology.

+ Develop the furniture manufacturing industry for export.

- By 2030

Continue to leverage advantages, modernize cultivation and raw material processing technologies to develop concentrated production regions from raw materials to deep processing of food and beverage products, ensuring compliance with food hygiene requirements and international standards.

e) The building materials production industry

- Develop science and technology, introduce new technology and modern equipment into building materials production to improve product quality, reduce costs, and increase market competitiveness.

- Choose appropriate investment scale, continue to produce products competitive in domestic and export markets.

- Industrial value-added growth rate of the building materials production industry from now to 2020 reaches 8-9%, and from now to 2030 reaches 6-7%.

- In 2020, the proportion of the building materials production industry accounts for 5-6% in the industrial structure and meets about 90% of domestic market demand for common building materials; in 2030, it meets 95-100%.

Focus on developing the following groups of products:

+ Vigorously develop non-fired building materials production plants.

+ Complete the technological conversion of vertical kiln cement plants to rotary kilns before 2016. Balance the capacity between cement grinding and clinker production, and between regions at the highest level.

+ Increase the production capacity of ceramic tiles and sanitary ware to meet domestic market demand and partially for export.

+ Temporarily halt new construction of ordinary glass production plants, focusing on researching and producing special glass products with high utility value to meet the needs of modern architectural projects.

+ Continue implementing phase 2 expansion projects and some new projects according to the approved building materials production industry planning.

- By 2030

Based on market demand and investment capacity in 2020, encourage investment and expansion of projects based on the application of new technology, ensuring higher economic, social, and environmental requirements: Producing energy-saving glass, interior wall materials capable of preventing condensation, preventing dirt accumulation, and odor absorption; producing exterior wall materials with high water resistance, anti-stick properties, self-cleaning capabilities, and mold prevention.

g) The mining and mineral processing industry

- Develop the mining and mineral processing industry based on efficient utilization of domestic potential, combined with imports; invest in mining at an economic scale, strengthen deep processing, ensure conservation and improved efficiency in mineral use; properly carry out environmental restoration and regeneration work;

- Strengthen exploration, assessment of reserves, and resource preparation for mining and processing according to approved specialized planning.

- Industrial value-added growth rate of the mining and mineral processing industry from now to 2020 reaches 7-8%; from now to 2030 reaches 6-7%.

- In 2020, the proportion of the mining and mineral processing industry accounts for 1-2% in the industrial structure and meets 65-70% of market demand; in 2030, it accounts for 0.5-1.0% and meets 75-80% of demand.

Focus on developing the following groups of products:

Continue to invest in exploring bauxite, iron ore, titanium, lead-zinc, tin ore, gold, copper, nickel, molybdenum, serpentine, barite, graphite, fluorite, bentonite talc, diatomite... deposits in promising locations as a basis for mining and processing to serve domestic industries and partially for export.

+ Aluminum-aluminum industry group: Implement approved aluminum production projects; research and construct aluminum electrolysis plants.

+ Other metals: Based on raw material sources and market conditions, select investments in some tin smelting plants, multi-metal ore processing plants; tungsten alloy exports; antimony smelting; nickel metal production and accompanying products.

- By 2030

Depending on market demand and investment capacity at the time of 2020, it may be considered to expand some mining projects based on the application of new technology, ensuring higher requirements for economic, social, and environmental efficiency.

h) Electricity Industry

- Efficiently utilize domestic energy resources for electricity development, combining with electricity imports and reasonable fuel imports, diversifying primary energy sources for power production, conserving fuel, and ensuring future energy security.

- Gradually form and develop a competitive electricity market, diversifying investment and business methods. The State retains a monopoly over transmission grids to ensure national energy system security.

- Develop the electricity industry based on the rational and efficient use of each region's primary energy resources, ensuring adequate, continuous, and safe supply to meet all regions' electricity needs nationwide.

- Industrial production value growth rate of the electricity industry phase up to 2020 reaches 13 - 14% and phase up to 2030 reaches 10 - 12%.

- In 2020, the proportion of the electricity industry accounts for 4 - 5% in the industrial structure and meets 85 - 90% of market demand; in 2030, it accounts for 5 - 6% and meets 95 - 100% of demand.

Focus on developing the following groups of products:

+ Complete power generation projects according to the National Power Development Plan approved by the Prime Minister.

+ Develop new and renewable energy forms according to the approved development plan by the competent authority to meet the requirement of diversifying energy sources (wind, solar, biomass...). Use fuel resources efficiently for power production, minimize environmental pollution.

+ Strengthen electricity trading and sales with neighboring countries to enhance dry season power supply capability in the northern region.

+ Develop power grids at various voltage levels, ensuring synchronization with power generation projects.

- By 2030

Total installed capacity of power plants approximately 146,800 MW, of which hydropower accounts for 11.8%; pumped storage hydropower 3.9%; coal-fired thermal power 51.6%; gas-fired thermal power 11.8% (including 4.1% using LNG); renewable energy power sources 9.4%; nuclear power 6.6% and imported power 4.9%.

Electricity production in 2030 is 695 billion kWh, of which hydropower accounts for 9.3%; coal-fired thermal power 56.4%; gas-fired thermal power 14.4% (including 3.9% using LNG); renewable energy power sources 6.0%; nuclear power 10.1% and imported power 3.8%.

i) Coal Industry

Develop the coal industry based on the rational exploitation, processing, and utilization of domestic coal resources, primarily serving domestic needs; actively and effectively contributing to ensuring national energy security and meeting maximum coal demands for the country's socio-economic development; ensure reasonable import and export management through plans and other regulatory measures consistent with market mechanisms under state control and Vietnam's international commitments.

- Industrial production value growth rate of the coal industry phase up to 2020 reaches 9 - 10% and phase up to 2030 reaches 7 - 9%.

- In 2020, the proportion of the coal industry in the industrial structure is 1 - 2%, meeting 80 - 85% of market demand; in 2030, it accounts for 0.5 - 1.5% in the industrial structure, meeting 75 - 80% of the market.

Focus on developing the following groups of products:

+ Implement exploration and exploitation activities in mining areas according to the approved coal industry planning.

+ Complete resource assessment below -300m to the bottom of the coal seam in the Quang Ninh coal basin, while meticulously exploring part of the Red River Delta coal basin.

+ Develop the coal industry in conjunction with suitable coal-fired thermal power projects according to the National Power Development Plan.

+ Invest in coal processing towards diversifying products (direct combustion fuel, metallurgical coal, coal gasification, liquid fuels from coal, chemical industry fuels).

+ Gradually invest abroad through cooperative exploration, exploitation, and processing activities.

- By 2030

Utilize various capital sources for exploration, upgrading, and increasing verified coal reserves; research new technologies for underground coal mining below -300m in the Quang Ninh coal basin; implement appropriate coal mining in the Red River Delta area; apply new technologies to produce special-purpose coal.

k) Oil and Gas Industry

- Develop the oil and gas industry comprehensively, multi-sectorally, and intersectorally to become an important economic and technical sector of the country; efficiently utilize domestic oil and gas resources, while intensifying overseas exploration, discovery, and extraction efforts, combining exports and imports as a basis for sustainable oil and gas industry development, playing a leading role in ensuring energy security for the country's industrialization and modernization.

- Leverage internal strength, combined with expanding international cooperation, attracting foreign investment in exploration, discovery, and rapidly increasing verified reserves, contributing to stabilizing and increasing extraction volumes; prioritize exploration, discovery, and extraction in deep waters, far offshore, overlapping, and sensitive areas. Encourage participation of domestic and foreign economic sectors in refining, distribution, services, etc.

- Develop the oil and gas industry alongside protecting resources, environment, ecology, ensuring security, defense, strengthening national sovereignty protection at sea, islands, and inland.

- By 2015, strive for a technical service revenue growth rate of the oil and gas industry reaching 15 - 20% annually; from 2016 to 2025, achieve a growth rate of 20 - 25% annually.

- In 2020, the proportion of crude oil and natural gas extraction in the industrial structure accounts for 4 - 5% and meets 70 - 80% of market demand; in 2030, it accounts for 5 - 6% and meets 80 - 90% of demand.

By 2020 and vision to 2030

Develop the oil and gas industry comprehensively, including exploration, discovery, extraction, transportation, processing, storage, distribution, services, and exports and imports, specifically:

Regarding oil and gas exploration: intensify efforts in exploration and verification to increase oil and gas reserves; prioritize implementation in deep waters, offshore areas, overlapping zones, and sensitive regions; actively invest abroad in oil and gas exploration activities. Strive to verify oil and gas reserves reaching 35 to 45 million tons of oil equivalent per year.

Regarding oil and gas exploitation: study solutions to improve oil recovery rates and maintain optimal production levels while ensuring safety and minimizing the risk of flooding in operating fields; actively expand overseas investment in oil and gas exploitation activities. Aim to exploit 25 to 38 million tons of oil equivalent per year, including crude oil extraction at a stable level of 18 to 20 million tons per year and natural gas extraction of 8 to 19 billion cubic meters.³2. In the event that the Approval Letter is revoked, the project developers shall only be considered for issuance of a new Approval Letter after one (01) year from the date of revocation, if they have fully fulfilled all obligations related to the reasons for the previous revocation of the Approval Letter.

Regarding the development of the gas industry: actively develop towards diversifying consumption markets, with gas supplied to industries such as power generation, fertilizer production, chemicals, various industrial sectors, transportation, and domestic use, with a production volume of approximately 19 billion cubic meters³/year by 2025. Study connecting the East-West pipeline system in South Vietnam, the cross-border gas pipeline to establish connections with Southeast Asian gas pipelines. Research appropriate technological solutions for collecting and effectively utilizing gas from small and border fields to meet national economic development needs.

Regarding the petrochemical processing industry: by 2020, complete the construction of 3 to 5 integrated oil refineries with a total capacity of about 26 to 32 million tons per year, and build and put into operation 1 to 2 petrochemical complexes. By 2025, continue to expand and construct 6 to 7 oil refineries to increase the total refining capacity to 45 to 60 million tons per year, meeting about 50% of the demand for basic petrochemical products.

Regarding the development of oil and gas services: strengthen deep investments to dominate high-tech service markets such as seismic blasting; drilling and exploitation in deep waters, offshore areas with complex geological conditions; project consulting and management; design and manufacture of oil and gas equipment; transportation of crude oil; natural gas, liquefied natural gas, compressed natural gas, etc.

l) Planning for the development of supporting industries

- The mechanical and metallurgical industry

+ Focus on producing parts and sub-assemblies for complete equipment such as: manufacturing standard equipment, types of cables, bolts, nuts, control systems, industrial computers; manufacturing power units, rotating and static electrical machines, diesel engines, gasoline engines of all types and their drive accessories; manufacturing equipment and spare parts for road and waterway transport vehicles; equipment and spare parts for the processing of forestry, fishery, and aquaculture products.

+ Strengthen deep investments at existing mechanical manufacturing facilities to enhance casting, forging, large blank production, heat treatment, surface treatment, supply of standard raw materials and semi-finished products for the production of parts and components for the three main categories of mechanical products: complete equipment, machine tools, construction machinery, actively attract foreign investment in high-tech production processes and key areas where Vietnam is weak.

+ For the automotive industry: focus on developing production clusters including cabins, frames, bodies, suspension systems, engines, gearboxes, axles, steering systems for trucks, buses, and specialized vehicles. Develop selected types of engines, gearboxes, drivetrains, and spare parts in large quantities to serve domestic automobile assembly and export.

+ Establish support industrial zones and clusters for the mechanical industry in Hanoi, Vinh Phuc, Bac Ninh, Hung Yen, Hai Phong, Dong Nai, Ba Ria-Vung Tau, Binh Duong, Tay Ninh, and Da Nang.

- The electronics and information technology industry

Focus on providing solution services and design, investing in advanced services to support software and hardware production; research and design, development of new products, focusing on building research, application, and decoding technology centers; intensify research and production of industrial products and services for the electronics industry: supplying spare parts, logistics, infrastructure provision, maintenance and repair of high-quality technology equipment.

- The textile, garment, and footwear industry

By 2020, achieve about 40% of the demand for woven fabrics; domestically produce 40 to 100% of textile machinery spare parts; meet 80% of domestic demand for synthetic fiber and filament products, and aim to start exporting after 2020. The supporting industry for the footwear sector will cooperate with the textile and garment industry to accelerate the supply of fabrics for shoe production, particularly for exported fabric shoes.

5. Spatial distribution planning according to territorial regions

a) Northern Midland and Mountainous Region

- Focus on developing mining and mineral processing industries, agricultural and forest product processing, hydropower, and some metallurgy projects.

- Along the Lao Cai-Hanoi corridor, develop assembly and supporting industries through cooperation and tapping into the Chinese market (via the Lao Cai border gate), promoting the development along the entire corridor.

- Consider developing some large-scale projects in the region to promote industrial development throughout the region.

b) Red River Delta Region (including the North Central Key Economic Zone)

- Develop mechanical, metallurgical, chemical, thermal power, and high-tech industries.

- Selectively develop supporting industries for the production of mechanical parts, automobiles, motorcycles, electronic components around Hanoi, Vinh Phuc, Hai Phong, and Quang Ninh cities.

c) Central Coastal Region (including the Central Key Economic Zone)

- Develop construction material production, seafood processing, shipbuilding, metallurgy, and other industries linked to maritime transport advantages.

- Attract investment in industries linked to port system development; along the East-West economic corridor; study the development of industries serving the Ho Chi Minh Highway route.

d) Western Highlands

- Develop processing industries for cash crops, mining and mineral processing, and construction material production.

- Develop industry in areas with favorable infrastructure conditions and connected to the transportation system.

d) Southeastern region (including the Southern Key Economic Zone)

- Develop mechanical, oil and gas industries, petrochemical products, chemical, electronics, high-tech industries; research and develop supporting industries.

- Based on the development situation of the East-West economic corridor infrastructure network, study the formation of some consumer goods manufacturing industries to meet the needs of provinces in the Region.

- Invest in synchronous development of industries linked to the gas-electric-ammonia complex in Bà Rịa - Vũng Tàu and Đồng Nai provinces; develop high-tech industries in Hồ Chí Minh City.

e) Mekong Delta region (including the Mekong Delta Key Economic Zone)

Focus on developing agricultural product processing, export seafood, mechanical industries serving agriculture, shipbuilding and repair for distant sea fishing vessels.

- Complete the Cà Mau gas-electric-ammonia cluster towards forming a large industrial complex in the Region.

- Consider arranging some mechanical industry projects, shipbuilding and repair projects linked to the maritime and river port network.

6. Projected capital investment structure

a) Domestic capital:

- Capital mobilized from the State budget

It is expected that about 3-4% of the total investment capital up to 2030 can be mobilized from the state budget. This capital mainly focuses on infrastructure construction (transportation works, power supply, water supply), part of the capital is allocated for human resource development and scientific and technological innovation research.

+ Domestic borrowing:

It is expected that domestic borrowing will need to borrow about 15-16% of the total investment capital over the period up to 2030.

+ Own capital: The self-owned capital of enterprises and mobilization from the public is expected to attract about 38-40%.

b) Foreign capital:

- Preferential loans: Expected to be about 7-8%.

- FDI: Expected to attract about 33-34%.

7. Measures

a) Short-term measures

- Improve institutional mechanisms and policies for industrial development

+ Improve state management mechanisms to minimize overlapping in the industrial production sector.

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

+ Reasonably decentralize state management over industry; maintain centralization in important sectors that the state needs to control and promote decentralization in management to improve the effectiveness of institutions and state management in the process of industrial development.

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

- Concentrate investment in technical infrastructure, emphasizing industrial development linked to sustainable growth

The state concentrates resources to invest in building expressways and high-speed railways from North to South, some international standard seaports and airports; complete urban infrastructure in Hà Nội and Hồ Chí Minh City; attract all forms of investment, encourage and create conditions for various economic components, including foreign investment, to participate in infrastructure development; gradually form a synchronized North-South axis, East-West corridors ensuring the connection of transport modes; build international-standard cross-border roads; lay the foundation for industrial development.

On the basis of the power system planning, plans and solutions must be made to ensure adequate electricity supply for production, especially for important industrial production facilities, industrial zones, and clusters.

- Attract selective investment towards prioritizing high-tech projects, environmentally friendly projects, creating high-value-added products, export products, while establishing industrial product brands.

Focus on investing in the formation of high-tech industrial parks, agro-industrial parks, specialized biotechnology high-tech parks, supporting industrial parks, and developing processing industries and industries serving agriculture.

Strengthen international cooperation in developing industries, especially those applying advanced technology domestically such as nuclear power, electronic component production.

- Focus on developing service industries

Focus on attracting investment and providing appropriate preferential policies to facilitate enterprises investing in service industries such as credit, banking, transportation, telecommunications, labor market information, vocational training to meet financial, transportation, communication, and labor needs for industrial enterprises.

- Pay attention to developing clean industrial enterprises, small and medium-sized enterprises with efficient and sustainable economic management models in rural areas, implementing the Central Resolution 7 on agricultural, farmer, and rural development.

Encourage and create conditions for the development of clean industry, low energy consumption, and reduced environmental pollution. Improve policies to encourage the development of industrial production enterprises, especially key industries with high technological content and added value such as machinery, electricity, electronics, information technology. Develop supporting industries to increase localization rates.

- Reorganize the industrial sector

+ Adjust the development plan of industries to suit new conditions and requirements, linked to market demands, accelerate technological innovation, improve workers' skills, innovate products, and strengthen quality management to enhance competitiveness in the market based on the requirements of international integration, scientific and technological development.

+ Reform investment policies to mobilize and allocate resources both domestically and internationally efficiently for industrial development according to the planned orientation, resolve bottlenecks in the process of restructuring the industry; state budget investment should focus on improving, upgrading, and building new technical infrastructure (transportation, electricity, water supply and drainage, telecommunications); education and training to provide high-quality human resources for industries.

- Encourage and create favorable conditions for investment from non-state economic sectors, including foreign investment. Consider non-state investment as a decisive source among investment resources for industrial development.

b) Long-term solutions

- Capital-related solutions

+ Utilize capital sources from the state budget, ODA funds, and aid to invest in key industrial sectors.

+ Develop a system of preferential policies that are transparent and effectively promote investment promotion activities to attract domestic capital, business investments, and foreign investments into the industrial sector.

+ Encourage businesses to increase their operating capital and improve investment efficiency.

- Technology-related solutions

+ Apply advanced scientific and technological innovations and new technologies to enhance production and business efficiency.

+ Expand international cooperation in science and technology, diversify cooperation models to maximize modern technology transfer from foreign partners for industrial development.

+ Promote the development of technology services, establish a technology market, regularly hold technology fairs, and set up databases of new technology information. Establish technology transfer centers.

+ Focus on attracting high-tech and core technology projects from developed countries. Develop special mechanisms to attract investors, utilize channels for technology transfer and cooperation, especially foreign direct investment (FDI), for research and application of science and technology.

- Human resource-related solutions

Plan the development of industries, key industrial regions, and industrial zones in sync with the planning for human resource development: vocational training institutions, social infrastructure serving workers. Strengthen training and develop skilled labor directly involved in production; prioritize developing a workforce with high qualifications to absorb and eventually master technology.

+ Review, reorganize, consolidate, and expand the system of human resource training institutions in the industrial sector (universities, vocational colleges, intermediate-level vocational schools...). Prioritize developing some vocational colleges in key economic regions to reach international standards.

+ Develop special mechanisms to attract high-quality human resources both domestically and internationally, focusing on salary policies, working environments, and housing support, including cultural and spiritual living spaces and related conditions to ensure work.

+ Expand forms of labor cooperation with foreign countries and develop appropriate educational and training facilities based on labor requirements, particularly linking with reputable educational institutions both domestically and internationally to establish international-level training facilities in Vietnam, concentrating on fields serving knowledge-based economic development, especially science, technology, and services.

- Solutions related to markets and products

+ Vigorously study and develop markets: For export markets, besides traditional markets such as China and East Asia, ASEAN, the United States, and the EU, explore large and potential emerging markets like the BRIC countries (including Brazil, Russia, India). For import markets, focus on the following factors: Capital sources (continue to effectively exploit investment capital from East Asia, the United States, and ASEAN); Technology (focus on attracting high-tech and core technology projects from the United States, Japan, Western Europe); Management experience (learn from the experiences of Singapore, Japan, South Korea).

- Solutions for developing supporting industries

+ Develop plans for the development of industries, guiding the development of supporting industries.

+ Create favorable conditions for supporting industries to develop by facilitating inputs (especially land and raw materials).

+ Clearly identify leading products to serve as a basis for promoting the development of supporting industries.

- Solutions for inter-regional cooperation and coordinated development

+ Joint ventures and collaborations to implement projects for developing industrial products to meet the needs of replacing imports or targeting exports (including processing and assembling industrial products).

+ Cooperation under a model where a parent company is located in one of the major provinces or cities and subsidiary companies are located in other provinces to specialize in production or provide suitable technology to each other.

+ Develop and implement large-scale industrial development projects with regional significance to act as catalysts for the development of other regions.

- Strengthening promotional activities for small and medium-sized enterprises and rural industries

+ Continue implementing the National Promotion Program for Small and Medium Enterprises, focusing on support programs: Enhancing management capacity; training, transferring, and developing skills in rural industrial establishments; establishing demonstration models for technology transfer and scientific and technological progress; joint ventures, collaboration, and economic cooperation; detailed planning, and constructing infrastructure for industrial clusters and points using central and local funds.

+ Advise and assist enterprises in developing brands, applying new technologies, seeking markets; organize training sessions on e-commerce and trade promotion; organize trade fairs.

8. Implementation organization

a) Ministries

- The Ministry of Industry and Trade is responsible for announcing, directing the implementation, inspecting, and supervising the execution of the planning.

- Ministry of Planning and Investment: Strengthening the promotion and attraction of foreign investment in basic industries, high-tech projects, and technology transfer projects; taking the lead and coordinating with relevant ministries and sectors to develop support mechanisms and policies to encourage investment for industrial development.

- Ministry of Science and Technology: Building and perfecting mechanisms and policies to encourage and support enterprises in their activities, research and innovation, and technology transfer; taking the lead in researching and submitting to the Prime Minister for consideration proposals to increase financial support for technological research and innovation activities for industrial enterprises.

- Ministry of Agriculture and Rural Development: Taking the lead in formulating investment plans for irrigation systems; implementing planning for raw material areas for agricultural, forestry, and aquatic products to serve industrial processing.

- Ministry of Transport: Taking the lead in formulating investment plans and upgrading transportation routes to industrial zones to facilitate industrial activities.

- Ministry of Education and Training: Taking the lead in formulating training plans for industrial workforce needs at different periods.

- Ministry of Labor, Invalids and Social Affairs: Guiding, inspecting, and auditing compliance with labor laws in enterprises within industrial zones; coordinating with management boards of industrial zones to effectively perform state management tasks related to labor in these zones.

- Ministry of Finance: Taking the lead and coordinating with relevant ministries and agencies to submit to the Government mechanisms and policies to provide special credit support for small and medium-sized industrial enterprises and supporting industries to meet their capital investment and business development needs.

- Ministry of Natural Resources and Environment: Cooperating with the Ministry of Industry and Trade to inspect and guide enterprises in complying with national regulations on industrial environmental protection.

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

- Reviewing and adjusting industrial development plans in each province and centrally governed city to align with the overall industry development plan.

- Incorporating the implementation of industrial planning into annual and five-year plans for industrial development in their respective areas.

- Coordinating with the Ministry of Industry and Trade and relevant ministries and sectors to inspect and monitor the implementation of planning.

Article 2. This Decision shall take effect from the date of signing.

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./.