Quyết định 29/2007/QD-BCN

DECISION

APPROVING THE PLANNING ON INDUSTRIAL DEVELOPMENT IN THE CENTRAL VIETNAM KEY ECONOMIC REGION UP TO 2015, WITH THE 2020 VISION TAKEN INTO CONSIDERATION

THE MINISTER OF INDUSTRY

Pursuant to the Government's Decree No. 55/ 2003/ND-CP of May 28, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Industry;
Pursuant to the Government Office’s Notice No. 3174/VPCP-CN of June II, 2007. announcing the Prime Minister's opinions on evaluation and approval of strategies and planning and authorizing the Minister of Industry to approve strategies and planning;
Considering Report No. 242/TTr-VCLofMy 10, 2007, of the Institute for Industrial Strategy and Policy Research;
Al the proposal of the director of the Planning Department,

DECIDES:

Article 1.- To approve the planning on industry development in the Central Vietnam key economic region up to 2015, with the 2020 vision taken into consideration, with the following principal contents.

1. Development viewpoint:

- To develop the region's industry at a high speed and in an efficient and sustainable manner, bringing into play advantages of each province in the region. To ensure regional interlink based on rational location and structure of industries. To form a number of priority industries and spearhead industries of high domestic and international competitiveness, thereby turning the Central Vietnam key economic region into one of the country’s dynamic development regions playing the role of a growth nucleus and development driving force of Central Vietnam and the Central Highlands.

- To closely combine industrial development with development of other economic sectors, environmental protection and maintenance of security and defense.

2. Development targets:

- The industry and construction GDP growth rate in the 2006-2010 and 2011-2015 periods will be 13.5% and 12.5%, respectively;

- The industry and construction chare in GDP will be 40.91 % by 2010 and 43.70 % by 2015 (of which the industry share will be 30.73% and34.28%, respectively);

- The growth rate of industry's added value in the 2006-2010 and2011-2015 periods will be 16.9% and 15%, respectively. The growth rate of industrial production value in the 2006-2010 and 2011-2015 periods will be 20.16% and 19.35%, respectively.

3. Development orientations

-To develop industry under the guideline of mobilizing to the utmost all local resources in the region, attracting and efficiently using external resources, appreciating, and raising the efficiency of, international, inter-regional and inter-branch cooperation.

-To develop industrial parks associated with raw material areas in order to reduce production costs. To attach importance to development of industry, cottage industry and handicraft clusters in rural areas, with a view to creating jobs and increasing incomes for laborers, gradually narrowing the socio­economic gap between rural and urban areas, and accelerating agricultural and rural industrialization.

-To attach importance to development of key products of high intellectual content, such as electronic engineering, electro-mechanical products, extra-sized and extra-heavy equipment and machinery, ship building and repair, steel and high-quality building materials.

-To quickly build and develop subsidiary industries and mechanical engineering industries manufacturing equipment and spare parts for the production of automobiles and motorbikes, electronic components and electric motors.

-To diversify scales and types of industrial production. To promote development of small -and medium -sized enterprises, cottage industries and handicraft villages.

4. Planning on development of industries

4.1. Planning of mechanical engineering and metallurgy

a/ Development viewpoint:

To develop mechanical engineering and metallurgy into a key industry of the region, step by step furnishing it with advanced machinery, equipment and technologies; intensify the associated production of components and spare parts; and gradually integrate into the process of global production distribution.

b/ Development targets:

To strive for the targets production value in the 2006-2010 and 2011-2015 periods will be 22.94% and 20.50%, respectively.

To strive for the target that by 2010 and 2015 the output of key products, including prime movers, agricultural machinery, automobile and motorbike parts, industrial valves, medical instruments and rolled steel, will satisfy the region's demands and be partly exported.

c/ Development orientations:

-To bring into play the advantages of the region through making development investment in areas where exists good infrastructure .To form a network of supporting production enterprises to meet branch development requirements.

-To step by step renew and modernize equipment and facilities, renew technologies, and apply digital technology to the stages of designing and manufacture.

-To make new investments in establishments producing steel sheets with modem technologies to meet regional and national demands.

d/ Development planning:

- Machine and equipment-manufacturing mechanical engineering will be developed in Da Nang, while subsidiary industries will be developed in Quang Nam;

- Assembly of automobiles, motorbikes and means of transport will be developed in Quang Nam, while manufacture of their parts and accessories will be developed in Da Nang;

- Shipbuilding will be developed in Quang Ngai;

- Metallurgy will be developed in Quang Ngai and Da Nang.

4.2. Planning of agricultural forest and aquatic product and food processing industry

a/ Development viewpoint

-To concentrate on developing traditional products made of local raw materials to meet domestic demands and for export .To attach importance to branch and regional links in production in order to raise productivity, quality and added value.

- To combine development of agricultural, forest and aquatic product processing with sustainable development of material sources and assurance of food hygiene and clean industrial environment

b/ Development targets

- To strive for the targets that the growth rate of production value in the 2006-2010 and 2011-2015 periods will be 18-53% and l&17% respectively.

c/ Development orientations

-To attach importance lo intensive investment to raise the technological level of the processing industry and the quality of processed products, especially aquatic and livestock products, beverage and wood furniture;

-To intensify research into and diversify products and material sources in order to supply sufficient production materials in all circumstances and reduce production's dependence on seasons and weather

d/ Development planning

- Da Nang city and Binh Dinh province will become centers for production of frozen aquatic and marine products for export .To develop material areas and the preliminary processing of semi-­finished products and aquaculture feeds in Thua Thien - Hue, Quang Ngai and Quang Nam.

- Production of wood articles for export and high-class wood products for domestic consumption will be developed in Binh Dinh and Quang Ngai with a network of supporting production establishments based in Da Nang city and Quang Ngai province, and material areas in Thua Thien - Hue. Quang Nam , Quang Ngai and Binh Dinh provinces and the Central Highlands.

- Production of beverage for domestic consumption, tourism, and export to Laos and Cambodia will be developed in Da Nang and Thua Thien - Hue.

4.3. Planning of building material production

a/ Development viewpoint

- To develop production of diversified kinds of common building materials made of local raw materials to meet the region's demand.

- To invest in technologies and techniques for production of some new and high-quality building material in localities with advantages, concentrating on exploitation of block stone and processing of floor- and wall-covering for export.

- The production development and distribution must suit natural resources and markets.

b/ Development targets

- To strive for the target that the growth rate of production value in the 2006-2010 and 2011 - 2015 periods will be 22,05% and 19.53%, respectively.

- To strive for the target that by 2015. the output of key products including cement floor- and wall-­covering tiles, ceramic sanitary ware and ashlar, will fully satisfy the region's demand and be exported in increasing volumes

c/ Development orientations

-To concentrate on developing building materials in which the region has advantages, such as exploited block stone, processed floor- and wall-covering ashlar, walling and tiling materials, building stone, sand and gravel, floor- and wall-covering tiles of all kinds and ceramic bricks.

-To increase investment in technologies for production of high-class and new products for domestic consumption and export.

-To gradually replace existing cement production technologies with modem technology using rotary kilns and produce baked bricks with tunnel furnace technology.

d/ Development planning

To prioritize development of production of cement in Thua Thien - Hue, Quang Nam, Quang Ngai. Binh Dinh; floor and wall-covering ashlar in Da Nang, Binh Dinh, Quang Nam and Quang Ngai; floor and wall-covering tiles in Thua Thien - Hue, Quang Nam, Quang Ngai and Binh Dinh; color enamels for production of porcelain, ceramic and glazed tiles in Thua Thien - Hue and Quang Ngai; building glass in Quang Nam; and ceramic sanitary ware in Binh Dinh, Quang Nam and Quang Ngai.

4.4 Planning of electro-informatics industry

 a/ Development viewpoint

-To develop the electro-informatics industry into a spearhead one of the region.

- To combine development of the industry with labor distribution and intensified cooperation and linkage between domestic enterprises and foreign-invested enterprises, especially those possessing source technologies.

- To apply only modern technologies, and enhance international cooperation with a view to making the fullest use of capital sources and new technologies.

b/ Development targets

-To strive for the target that the growth rate of production value in the 2006-2010 and 2011-2015 periods will be 21.8l% and 31.58%, respectively.

- To develop Da Nang into a leading city in software technology development and form a network of cooperative links between Da Nang and other regional localities in the manufacture of computers, office equipment, electronic home appliances, communication equipment, etc., and provision of related services, with a view to meeting 70-85% of the region's demand.

c/ Development orientations

-To concentrate on developing groups of hi-tech electronic products and components and color television sets. To attach importance to investment in research into and designing of a number of industrial electronic products combined with mechanical products to make competitive electro­mechanical products for domestic consumption.

-To develop information technology products, and build some software industry parks and clusters. To research, design and produce television and radio receiving and transmitting equipment to meet the needs of districts and provinces in the region and throughout the country.

d/ Development planning

In the period from now to 2015, to concentrate investment in developing Da Nang city into an electronic-information technology center of the region; to step by step develop a software industry in Da Nang, Hue and Binh Dinh and a hardware industry in the regional provinces.

4.5. Planning of chemical industry

a/ Development viewpoint

- To develop the chemical industry in order to manufacture sufficient essential products with competitive edge in the region for the domestic market and export, such as fertilizers, automobile, motorbike and bicycle tires.

-To form and develop a petrochemical industry with modem technologies, with a view to creating competitive products and contributing to import value reduction and branch restructuring.

b/ Development targets

- To strive for the target that the growth rate of production value in the 2006-2010 and 2011-2015 periods will be 15.26% and 31.80%, respectively,

c/ Development orientations

- To step by step build modern chemical and petrochemical industries, form big production groups using advanced technologies capable of turning out competitive products, with a view to meeting domestic demand and expanding export markets.

- To prioritize development of various chemicals used for agriculture. highly nutritious fertilizers, leaf fertilizer and microbiological fertilizers, and plant protection drugs less harmful to the environment and people,

- To satisfy increasing demand for rubber products, chemical consumer goods and other products for domestic use with nice packages, high quality and competitive prices.

d/ Development planning

In Thua Thien - Hue. to develop fertilizer, domestic use plastic, package^ paint and composite production industries, and set up establishments processing products from garbage.

In Da Nang, to develop the processing of rubber products, fertilizers, industrial gases, fine-art candles, etc

In Ouang Nam, to develop microbiological fertilizers, car tires, soaps and synthetic cleansing substances plastics of PP, PE, PVC, UPR. etc.

In Quang Ngai, to develop the petrochemical industry.

In Binh Dinh, to develop the production of organic, microbiological and NPK fertilizers, some ordinary and technical rubber products.

4.6. Planning of mineral exploitation and processing industry

a/ Development viewpoint

- To develop mineral exploitation and processing based on mineral resource advantages of each province in the region.

- To intensify the deep processing of minerals; limit export of crude minerals; utilize various types of mineral together and maximize the extraction coefficient of main minerals, admixed minerals and the value of processed products.

-To develop mineral exploitation and processing based largely on domestic resources. In case of necessity, joint ventures involving foreign parties may be established to conduct survey, exploration and exploitation of minerals lying deep underground and not yet discovered, which require large investment capital and complicated technologies.

b/ Development targets

- To strive for the target that the growth rate of production value in the 2006-2010 and 2011-2015 periods will be 22.38% and 18.77%, respectively.

c/ Development orientations

- To attach importance to sustainable development, effective management of natural resources, environmental protection and stabilization of laborers’ life.

- Exploitation and processing establishment must be associated with markets, close to natural resources and far from classified tourist sites, especially tombs and monuments in Thua Thien -Hue. Hoi An ancient town, My Son sanctuary, etc.

- To organize further assessment of reserves of potential mines and ore sates, serving as a reliable basis for investment in exploitation and processing of minerals to be used as raw materials for domestic production and export.

d/ Development planning

To exploit gold in Quang Nam, titanium ores in Thua Thien - Hue, Quang Nam, Quang Ngai and Binh Dinh; graphite in Quang Ngai; floor- and wall-covering ashlar and building stone in Thua Thien -Hue. Quang Nam, Quang Ngai and Binh Dinh; kaolin and feldspar in Quang Nam and Quang Ngai

4.7. Planning of textile, garment, leather and shoe production industry

a/ Development viewpoint

- To invest in development of textile, garment, leather and shoe production in the direction of specialization and modernization, attaching importance to the stages of designing and modeling and high-class products. To attach importance to the vigorous development of production of raw materials, auxiliary materials and accessories for die industry,

- To develop textile, garment, leather and shoe production with all resources, especially resources of the private sector at home and abroad, thus contributing to stepping up the development of a multi-sector economy, forming new enterprises and creating jobs for laborers.

b/ Development targets

To strive for the target that the growth rate of production value in the 2006-2010 and 2011-2015 periods will be 21.45% and 16.48%, respectively, of which textile and garment, leather and shoes account for 18,66%, 16,48%, 29.85% and 16-47%, respectively.

By 2015, domestic production will largely satisfy the industry's demand for raw and auxiliary materials,

c/ Development orientations

- To develop textile, garment leather and shoe production in the export-led direction. To redistribute production forces in the direction of forming textile, garment, leather and shoe production clusters. In cities, urban centers, major traffic hubs and seaports where people's intellectual level is high and infrastructure is good, to develop big plants that produce fashionable and high-quality products and export products. In residential areas in townships and provincial towns along major roads, to develop small-and medium-sized production establishments that employ local laborers, manufacture products for domestic consumption and operate as satellites of big plants.

-To concentrate investment in production of raw and auxiliary materials, form a number of wholesale marketplaces to supply raw and auxiliary materials for the region, gradually reduce the ratio of products contractually processed for foreign parties and increase the ratio of locally made products.

- To intensify fashion research and designing; to expand the system of department stores, wholesale markets and sale agents; to apply electronic technologies to transactions, especially in export and import.

d/ Development planning

* Textile and garment: To develop yarn production plants and textile mills in Hue Da Nang and Quang Nam; to develop garment plants in Da Nang, Quang Ngai and Binh Dinh; to develop Da Nang and Quang Nam into regional centers for production of textile and garment raw and auxiliary materials.

* Leather and shoes: lb develop footwear plants in Da Nang, Quang Nam and Binh Dinh;to develop the production of leather and shoe raw and auxiliary materials in Da Nang.

(The list of new major industrial works to be built is shown in Appendix I enclosed herewith)

4.8. Planning of electric power industry

a/ Development viewpoint

- To develop electric power In the Central Vietnam key economic region in line with the national electric power development planning, taking into consideration specific conditions of the region and ensuring safe and stable power supply.

- To mobilize and efficiently use all domestic and foreign capital sources, diversify investment forms for development of power sources. To prioritize the development of new and renewable energy sources in deep-lying and remote areas and islands.

- To prioritize the building of multi-purpose hydropower plants in the region which help combat flood, supply water and electricity to the region and create backup sources for the national power grid

- To develop and perfect the regional power grid in order to raise the stability and reliability of power supply according to N-1 standard, reduce power wastage and create favorable conditions for transforming the medium-voltage grid into 22kV one and electrifying rural areas.

- The power grid plan must be forward-looking and highly flexible, ensuring safe and stable power supply and power quality (voltage and frequency) in service of socio-economic development of the region, especially Hue, Da Nang, Dung Quat and Quy Nhon cities as welt as export processing zones and industrial parks.

b/ Development targets

- To ensure sufficient power supply to meet the needs of the region's production and people's daily life, raise the power supply reliability and voltage stability, 3nJ attach importance to central areas, industrial parks and export processing zones.

- In the 2006-2010 period, to strive for a power growth rate of around 22%/year and an output growth rate of 19.3%. In the 2011-2015 and 2016-2020 periods, the power growth rate and output growth rate will be 17.3%-16% and 14.5%- 13.1%, respectively

c/ Development planning

The regional power development planning must be in line with the national power development planning for the 2006-2015 period, with the 2025 vision taken into account, and based on the into account and based on the regional provinces’ planning on power development up to 2015. By 2015. twelve new hydropower plants with a total output of some 1,450 MW will be built in the region. These plants and other small ones will bring the total source output to some 1,560 MW. To expeditiously plan areas for development of more coal-fired thermal power plants, with a view to meeting the region's power needs in case the growth rare is higher than expected. To synchronously develop power grids for all voltages in order to meet the region's power consumption needs.

4.9. Planning of cottage industries and handicraft

a/ Development viewpoint

- To develop cottage industries and handicraft on the basis of traditional crafts and trades with labor and natural resource advantages in the region, attaching importance to currently urbanized rural areas where agricultural land areas are converted into industrial land areas, contributing to agricultural and rural industrialization and modernization.

- To combine cottage industry and handicraft development with environmental and ecological protection. To harmoniously combine new technologies with traditional ones, production with tourism and other services.

b/ Development targets

To strive for the target that the growth rate of production value in the 2006 – 2010 and 2011-2015 periods will be 14.84% and 11.23%, respectively.

c/ Development orientations

- Cottage industries and handicraft must be developed in handicraft with the socio-economic development planning, and associated with the embellishment of regional rural areas, development of commerce and service and effective settlement of environmental issues.

- To prioritize the development of traditional crafts and trades and the creation of new ones, production of export goods, and processing of agricultural products and foodstuffs as well as other handicrafts.

- To attach importance to investment in advanced and modern technologies combined with traditional technologies to raise the quality and diversify model designs of products capable of showing the national cultural identity.

- To form a number of cultural and tourist villages where industrial products, cottage industry and handicraft articles are marketed.

d/ Development planning

- To develop pottery production in Phuoc Tich to supply interior and exterior decoration pottery articles for refurbishment of historical relics; production of mirror paintings in Bao Vinh ancient town; bronze casting in Thua Thien - Hue; bamboo wickerwork production in Bao La and Thuy Lap of Quang Dien district and line-art wood articles in My Xuyen and Phong Dien; zeng weaving in A Luoi,

To plan the building of the aluminum and bronze casting village of Phuoc Kieu in Quang Nam province into a model craft village where a commercial zone for display, advertisement and sale of handicrafts will be formed.

- To develop mulberry growing and silk worm rearing in Dong Yen ( Quang Nam) for the production of high class silk.

- To revitalize and develop rattan and bamboo wickerwork in Tarn Vinh (Phu Ninh) and Duy Son (Duy Xuyen) in Quang Nam province with financial supports of the United Nations Industrial Development Organization (UNIDO) and the United Nations Educational, Scientific and Cultural Organization (UNESCO).

- To develop the production of fine-art stonework in Non Nuoc (Da Nang); to promote commercial activities to seek outlets for these products.

- To invest in the development of Bau Da liquor product (Binh Dinh) for supply to the legion's market and export.

- To concentrate on developing fine-art wood articles in An Nhon to satisfy domestic consumption, tourist and export demands.

4.10. Planning on distribution of industrial parks

a/ Planning viewpoint

- To concentrate efforts on attracting investment in existing industrial parks and clusters in order to fill tip their ground areas. Extensive or new investment is allowed to be made only when more than 75% of ground areas of these industrial parks and clusters are occupied.

- To form some specialized industrial parks for electronics, informatics or chemical production, and some hi-tech parks.

- To invest in industrial park and cluster infrastructure with all capital sources, especially capital from enterprises, in order to attract investors,

b/ Planning targets

In the period from now to 2015 and 2020, to expand existing industrial parks and clusters and build new ones on a total land area of some 22,000 hectares.

c/ Planning orientations

- To form links between industrial parks within such big economic zones as Chan Mav - Lang Co, Chu Lai, Dung Quat and Nhon Hoi in order to step up the development of industries capable of bringing into full play their competitive edges and boosting export, including port service, sea transportation, processing of export goods, electric and electronic industry, production of building materials, assembly mechanical engineering, consumer goods production, petrochemical and chemical industries, etc.

In which;

- In Chan May - Lang Co industrial park (Thua Thien - Hue): To develop port services, sea transportation and export processing.

- In Tam Hiep industrial park: (Quang Nam): To develop the electronic industry and precision assembly mechanical engineering; processing of agricultural, forest and aquatic products; and consumer goods production,

- In Northern Chu Lai industrial park (Quang Nam): To develop assembly mechanical engineering, daily-life power supply, electric and building material production, garment industry and consumer goods production.

- In Tarn Thang industrial park (Quang Nam): To develop building material production, leather and shoe industry, garment industry, and assembly of electric, electronic and refrigeration appliances.

- In the eastern industrial park (Quang Ngai): To develop petrochemical and chemical industries, shipbuilding, steel metallurgy and rolling, cement production, heavy equipment manufacture, automobile assembly and port services.

- The western industrial park (Quang Ngai) is a light industry park for building material production, repair mechanical engineering, processing of agricultural and aquatic products, textile and garment product, consumer goods and export goods production electric and electronic appliance manufacture establishments; and providing warehouses and storing yards,

- In Nhon Hoi industrial park (Binh Dinh); To develop petrochemical, shipbuilding, mechanical engineering electronic, automobile assembly, textile and garment industries.

To form a number of urban - industrial - service centers in Southern Central Vietnam surrounding Chu Lai, Dung Quat, Nhon Hoi and Van Phong (Khanh Hoa) open economic zones.

(The list of industrial parks and zones is shown in Appendix 2 enclosed herewith).

5- Investment capital needs:

- Investment capital needed for the 2006-2015 period will be VND 131.039 billion, of which VND 98,539 billion will be for industries, VND 28,500 billion for industrial park infrastructure and some VND 4,000 billion for power and water supply (for medium and low-voltage power grids only).

- Expected mobilization of capital sources:

a/ Domestic capital will account for 57-67% of the total capital and include budget capital (12<14%). credit loan (14-16%), joint-venture and association capital contributed by enterprises (9-10%), and capital raised on the securities market and other capital sources (22-24%).

b/ Foreign capital will account for 33-43% of the total capital and include preferential loans (10-12%) and FDI capital (23-31%).

6. Solutions and policies

6.1. Major solutions

a/ Management organization solutions

- To step by step form clusters of interlinked enterprises, including production enterprises, industrial service establishments, training establishments, research and development establishments, establishments supplying raw materials or providing warehouses and storing yards, etc.

- To form a number of specialized industrial parks, hi-tech parks, subsidiary industry parks and centers supplying special-use raw and auxiliary materials.

b/ Capital solutions

- The state budget capital will be invested in infrastructure building so that by 2010 major infrastructure works will be completed to facilitate I he achievement of strategic socio-economic development targets of localities in the region. Part of this capital source will be used to support investment in scientific and technological research and renewal and human resource training and development.

- To give economic sectors and enterprises priority access to loans for investment in the development of production and business domains encouraged by the State.

- To mobilize and efficiently use all capital sources for development investment, attaching importance to capital sources of enterprises, from the securities market or equitization of enterprises, FDI capital and borrowed capital. To integrate capital sources to ensure use efficiency.

- To encourage the establishment of new enterprises and production investment by individuals through simplifying establishment procedures and facilitating access to production grounds, capital sources and information.

c/ Land solutions

- To make rational and effective land use plans, especially for use of land of industrial parks.

- To adopt active and coordinated measures and policies for ground clearance and resettlement for projects, ensuring their construction schedules.

d/ Technology solutions

- To encourage enterprises to set up scientific and technological development funds, actively apply new scientific and technical advances to production under the guideline that technological renewal in each pan or stage should be carried out before technological renewal of the whole production chain.

- To develop a scientific and technological information system in service of technological research and renewal in industrial enterprises in the region. To combine research and development activities of research institutes with activities of enterprises.

e/ Human resource solutions

- To concentrate on training human resources for key industries, such as mechanical engineering, electronics, information technology, production of new materials, for industrial parks, key industrial projects and new occupations and trades. To attach importance to job training to build a contingent of skilled technical workers and professional staffs capable of mastering and using modern technical equipment and technologies. To organize retraining for technical workers and managerial officers, gradually raising training quality up to that of countries in the region and the world.

- To socialize job training in order to attract all resources and diversify framing forms. To consolidate and invest in the development of technical workers' training schools and job training schools in the region's provinces,

- To adopt policies to encourage enterprises and localities to organize correspondence or on-spot training courses for their human resources and job training courses for rural inhabitants.

f/ Environmental protection solutions

- To enforce legal provisions on assessment of environmental impacts of projects and strategic environmental assessment of plannings.

- To reserve sufficient resources for investment in projects on environmental protection and waste treatment in plants and industrial parks. To encourage enterprises to increase accumulative funds and create capital sources in support of environmental protection.

- To adequately conduct monitoring, observation, measurement and management of environmental criteria; to inspect enterprises in the observance of environmental protection regulations.

6.2. Major policies

a/ Market policies

- To formulate synchronous policies on demand stimulation and expansion of outlets for industrial products in rural areas.

- To expand and improve trade promotion and market information in order to help enterprises expand their markets and raise production and business efficiency,

- To further improve the legal framework on commerce in order to prevent trade frauds (manufacturing counterfeit or imitation goods, smuggling), breaches of international commercial rules on subsidies and dumping, acts of unfair competition; and raise consumers’ sense of law observance and enhance the role of the .society for protection of consumers,

- To enhance the role of goods line associations in conducting trade promotion, market development and providing assistance for enterprises in the region.

- To further step up administrative reforms with a view to reducing inconveniences and expenses for enterprises and contributing to raising the competitiveness of industrial products.

b/ Investment promotion policies

- To promulgate a list of industrial projects calling for investment in each period for investors to make appropriate Investment plans.

- To implement and concretize policies on development of priority industries and spearhead industries m the region.

- To encourage conglomerates and big corporations at home and abroad to invest in hi-tech industries and .sectors, and big projects using advanced technologies in diversified investment forms.

c/ Capital mobilization policies

-To apply the policy on raising investment capital through financial leasing, especially financial leasing of foreign organizations.

-To apply the policy on mobilization of advance capital from customers for investment in infrastructure, first of all power, water and traffic infrastructure.

- The localities in the region will set aside 0.5-1% of total revenues of their budget* for industrial extension.

d/ Financial and tax policies

- To create favorable conditions for all types of enterprises to get an equal and quick access to financial sources. To adopt a mechanism to actively support scientific and technological activities, the founding of new enterprises and marketing activities of small- and medium-sized enterprises.

- Each locality should publicize land rent brackets applicable to different areas, helping investors select appropriate areas to invest; to publicize tariffs according to WTO commitments for enterprises to take the initiative in devising implementation measures.

- To flexibly use tax and charge tools in compliance with international economic integration commitments so as to promote fair competition and rationally protect some industrial products.

e/ Scientific and technological policies

- To adopt policies on provision of support funds for technological renewal, transfer or purchase of designs, and human resource training.

- To form a number of strong research and development centers capable of supplying information and providing consultancy on transfer of advanced technologies to industrial enterprises in the region.

- To adopt policies on provision of financial supports for setting up and development of a technology market, manufacture of hi-tech products and initial trial products resulted from researches.

- Localities will consider and set aside part of their budgets to support scientific and technological activities, research, development and application of new technologies, scientific research programs and subjects, application of utility solutions.

- To adopt preferential policies related to dwelling houses, travel, working conditions, salaries and allowances to attract experienced managerial officers, leading scientists and technical experts and highly skilled workers to work in the region,

f/ Policies on development of raw material areas

- To encourage the formation of appropriate links between producers and material suppliers on the basis of interest harmonization, with a view to developing raw material areas and stabilizing supply sources.

- Localities and enterprises shall adopt mechanisms of providing supports to raw material growers in terms of seeds and applied technical advances for intensive farming, plant and animal tending, harvesting, preliminary processing, preservation and post-harvest transportation, in order to raise the quality of raw materials and production efficiency.

g/ Policies on training and use of laborers

- To adopt policies to attract intellectuals, experts and skilled workers to work in die region*& localities. Enterprises should set aside funds for sending talented young cadres to attend training in developed countries. To implement policies on recruiting employees through exams, and arranging qualified personnel in suitable positions. To gradually shift from appointment of enterprise directors to signing labor contracts with them.

Article 2- Organization of implementation

1. The Ministry of Industry shall assume the prime responsibility for, and coordinate with concerned ministries and branches and the People's Committees of the provinces in the Central Vietnam key economic region in, implementing this planning and effectively participating in activities of die Steering Committee for coordinated development of key economic regions headed by a Deputy Prime Minister.

2. The Ministries of Planning and Investment, Finance. Agriculture and Rural Development, Construction, Trade. Science and Technology, Natural Resources and Environment, and Transport, and the State Bank shall, within the ambit of their functions, coordinate with the Ministry of Industry in applying solutions and policies mentioned in this Decision.

3. The People's Committees of the provinces in the Central Vietnam key economic region shall direct provincial Industry Services in:

- Perfecting plannings on industrial development in each province or city in line with the general planning of the region.

- Coordinating with state management agencies and enterprises in implementing projects

- Incorporating the contents furthering the regional industrial planning in their annual and live year plans (up to 2015) and submitting them to the Ministry of Industry for summing up and balance.

Article .3.-This Decision takes effect 15 days after its publication in “CONG BAO."

Article 4.- Ministers, heads of ministerial-level agencies and government-attached agencies, presidents of People's Committees of the provinces in the Central Vietnam key economic region, and concerned agencies shall implement this Decision.