Quyết định 1043/QD-TTg

DECISION

APPROVING VIETNAM’S INDUSTRIALIZATION STRATEGY WITHIN THE FRAMEWORK OF VIETNAM - JAPAN COOPERATION TOWARDS 2020, WITH A VISION TILL 2030

THE PRIME MINISTER

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

Pursuant to the Decision No. 1075/QD-TTg dated August 13, 2012, of Prime Minister, on the establishment of the Steering Committee for Vietnam’s industrialization strategy within the framework of the Vietnam - Japan cooperation through 2020;

At the proposal of the Minister of Planning and Investment;

DECIDES:

Article 1. To approve “Vietnam’s industrialization strategy within the framework of Vietnam - Japan cooperation towards 2020, with a vision till 2030 (hereinafter referred to as the industrialization strategy) with the following principal contents:

1. Vision, viewpoints and objectives

a) Vision: To have an outstanding development in six priority industries, including electronics; agricultural machinery; processing of agricultural and fishery products; shipbuilding; environment and energy saving; and manufacturing of automobiles and auto parts, into key industries of the economy with high added value and international competitiveness. Industries prioritized for development in the industrialization strategy keep a leading role in promoting the attraction of investment from domestic and foreign enterprises, first of all Japanese enterprises, and creating a spreading of technology and skills for the industry in particular and Vietnam’s economy in general.

b) Viewpoints:

- The industrialization strategy contributes to the implementation of Vietnam’s policy on overall industrial development, focuses on the development of the six priority industries already chosen on the basis of exploiting potentials and comparative advantages of Vietnam and effective use in order to create internationally competitive industries.

- The industrialization strategy contributes to accelerate Vietnam’s industrialization through 2020. The chosen industries are suitable with Vietnam’s general industrial development orientation and have great contribution in creating thrust for the development of other industries during the industrialization process through 2020. The industrialization strategy directly contributes into the restructuring of sectors, serves the change of growth model in association with economic restructuring towards raising quality, efficiency and competitiveness of the economy.

- The industrialization strategy must create a breakthrough in attracting investment and increase the efficiency of direct investment of foreign countries in general and Japanese in particular in Vietnam; set up and consolidate the production connection between Japanese and domestic businesses; promote technology transfer and innovation and increase the quality of Vietnam’s human resources.

c) Targets:

- General targets:

To prioritize the development of the six chosen industries with the aim to promote technology innovation, growth of labor productivity and build international competitiveness; develop products with high added value, spreading technology and meeting advanced quality standards for export and domestic consumption.

- Specific targets:

+ To formulate and organize implementation of action plans through 2020, with a vision till 2030, that are specific and feasible, for each industry in the six chosen industries; to concentrate on a number of sub-sectors and strategic products; and implement pilot projects in each industry, or sub-sector if necessary.

+ Vietnam and Japan cooperate in attracting Japan’s quality investment projects into priority industries and relevant sectors.

+ To mobilize the utmost participation of Vietnamese and Japanese Governments, enterprises and scientists in the whole process of building, implementing and assessing the efficiency of the chosen industries’ development.

- A number of principal targets for the industries prioritized for development:

By 2020, the industries prioritized for development:

+ Industries prioritized for development will take the lead in the application of high and clean technologies in association with ensuring the rationality in Vietnam’s economic conditions.

+ Production values of the priority industries will increase at least 20% annually and contribute at least 35% to the total industrial production value.

+ Standing among ten industries with the highest labor productivity growth.

By 2030, the industries prioritized for development will largely apply high and clean technologies in association with ensuring the rationality in Vietnam’s economic conditions.

2. Orientations and solutions

a) Orientations:

- Orientations by 2020:

+ To increase the production capacity of the six chosen industries with the aim to adapt to the implementation of commitments on international economic integration by 2020. To convert industries that depend on simple assembly and processing and have low added value into industries that use maximally input materials produced domestically under the upstream and midstream so as to create high added value and gradually improve international competitiveness.

+ To build and expand market for products of the six priority sectors.

+ To concentrate on development of industries supporting for the six priority sectors in association with technology transfer and training high-quality human resources as foundation for these industries.

+ To accelerate in putting into operation of major projects already approved in upstream sectors (petrochemical, steel production, electricity, gas or energy ...) with the aim to increase the efficiency of investment in the long-term development of the industries prioritized for development.

- Orientations during 2020-2030:

To strengthen the linkage between the sectors producing end products and the sectors producing material inputs, or intermediate inputs, and service sectors, formulate the consistent industrial structure from upstream, midstream to downstream.

b) A number of principal solutions:

- To study and formulate action plans for each industry’s development; to conduct surveys and attract the harmonious participation of enterprises, state agencies and universities during the process of formulating action plans.

- To synchronously complete the legal framework and incentive policies for the development of the chosen industries; and to publicize plans to carry out incentive and preferential policies for each sector.

- To step up the comprehensive reform of administrative procedures and implement consistently at all administrative levels from central to local levels.

- To develop a number of regions and localities into dynamic regions of the industrialization strategy in order to develop the chosen sectors, in which development of infrastructure and training human resource in those regions are prioritized.

- To organize the implementation of action plans in a consistent and uniform manner and on the principle of Vietnam-Japan two-party cooperation and exchange and Japan’s active assistance in the course of implementation, and to ensure the efficient use of resources.

- To build an inspection and supervision system to monitor implementation of action plans, and assess the results.

- Vietnam and Japan concentrate on cooperation in a number of key fields to serve the consistent implementation of the industrialization strategy. The key cooperation fields include:

+ Reviewing and assessing the current strategies, plans and policies relating to the six priority sectors and proposing adjustments with the aim to ensure the synchronism of policies and the feasibility of the industrialization strategy and each sector’s action plan.

+ Promoting investment in the six development priority industries.

+ Cooperating in the training for the six chosen industries.

+ Cooperating in acceleration of technology transfer in the six priority industries.

+ Cooperating in infrastructure development in serve of the six priority industries

Article 2. Organization of implementation

1. The steering and operating apparatus for implementation of the industrialization strategy

The Steering Committee for Vietnam’s industrialization strategy within the framework of the Vietnam - Japan cooperation towards 2020 with a vision till 2030 established under the Decision No.1075/QD-TTg dated August 13, 2012, of Prime Minister, shall preside over formulating, announcing and carrying out the implementation of this Strategy.

2. Assignment to implement the industrialization strategy

a) The Ministry of Planning and Investment shall:

- Through the deputy head of the Steering Committee and the working group to preside over and do as focal agency in organizing, coordinating and cooperating with Japan in implementing the industrialization Strategy.

- Coordinate with the Ministry of Finance and other specialized ministries in formulating preferential and incentive policies in conformity with the socio-­economic development strategy during 2011-2020 and the roadmap for tariff reduction under regional and international commitments with the aim to attract investment in development of the six chosen industries; and balance the budget and investment capital for development of these six industries and include them in annual and five-year plans.

- Participate in formulating and implementing action plans for development of the six industries in the industrialization strategy through the working group_.

b) The Ministry of Finance shall:

- Coordinate with the Ministry of Planning and Investment and specialized ministries in proposing amendments and supplements to tax, tariff incentive policies and related administrative procedures so as to encourage development of the six priority industries in conformity with the international economic integration process.

- Coordinate with the Ministry of Planning and Investment and other specialized ministries in formulating incentive and preferential policies in conformity with the socio-economic development strategy during 2011- 2020 and the roadmap for tariff reduction under regional and international commitments with the aim to attract investment in the development of the six chosen industries; and balance the budget and investment capital for development of these six industries and include them in annual and five-year plans.

- Participate in formulating and implementing action plans for development of six industries in the industrialization strategy through the working group.

c) The Ministry of Industry and Trade shall:

- Assume the prime responsibility for, and coordinate with relevant ministries and sectors in implementing the action plans of the agriculture machinery, automobile and auto part manufacturing, and environment and energy saving industries.

- Coordinate with the Ministry of Information and Communications in organizing the implementation of action plan for electronics industry; coordinate with the Ministry of Agriculture and Rural Development in implementing action plan for processing industry of agricultural and fishery products.

- Coordinate with the Ministry of Planning and Investment, the Ministry of Finance and relevant ministries in formulating incentive and preferential policies facilitating attraction of investment in development of five industries in the industrialization strategy mentioned above

- Participate in formulating and implementing action plans for the development of industries in the industrialization strategy through the working group.

d) The Ministry of Agriculture and Rural Development shall:

- Assume the prime responsibility for, and coordinate with relevant ministries and sectors in, organizing the implementation of action plan for the processing industry of agricultural and fishery products.

- Coordinate with the Ministry of Industry and Trade in organizing implementation of the action plan for the agricultural machinery industry.

- Coordinate with the Ministry of Planning and Investment, the Ministry of Finance and other relevant ministries in formulating incentive and preferential policies facilitating attraction of investment in development of the above two industries in industrialization Strategy.

- Participate in formulating and implementing action plans for development of six industries in the industrialization strategy through the working group.

dd) The Ministry of Transport shall:

- Assume the prime responsibility for, and coordinate with relevant ministries and sectors in, organizing the implementation of the action plan for shipbuilding industry.

- Coordinate with the Ministry of Planning and Investment, the Ministry of Finance and other relevant ministries in formulating incentive and preferential policies facilitating for attraction of investment in development of the shipbuilding industry.

- Participate in formulating and implementing action plans for development of six industries in the industrialization strategy through the working group.

e) The Ministry of Information and Communications shall:

- Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and relevant ministries and sectors in, organizing implementation of the action plan for electronics industry.

- Coordinate with the Ministry of Planning and Investment, the Ministry of Finance and other relevant ministries in formulating incentive and preferential policies facilitating for attraction of investment in development of the electronics industry.

- Participate in formulating and implementing action plans for development of six industries in the industrialization strategy through the working group.

g) The Ministry of Science and Technology shall:

- Coordinate with relevant ministries and sectors in formulating incentive and preferential policies facilitating for attraction of investment in development of priority industries in the industrialization strategy; and formulate policies to promote technology transfer and speed up the application of high technologies in six priority industries.

- Participate in formulating and implementing action plans for development of six industries in the industrialization strategy through the working group.

h) The Ministry of Foreign Affairs shall:

- Participate in and coordinate with the Ministry of Planning and Investment in regulating cooperation with Japan.

- Together with the Ministry of Planning and Investment and the Ministry of Finance and relevant ministries participate in formulating incentive and preferential policies facilitating for attraction of investment in development of six industries in the industrialization strategy.

- Participate in formulating and implementing action plans for development of six industries in the industrialization strategy through the working group.

i/ The State Bank of Vietnam shall:

- Coordinate with the Ministry of Planning and Investment, the Ministry of Finance and specialized ministries in formulating credit preferential policies for the six chosen industries.

k) The Ministry of Education and Training and the Ministry of Labor, Invalids and Social Affairs shall:

- Coordinate with relevant ministries and sectors in organizing the implementation of action plans relating to training human resource for the six chosen industries.

- Participate in formulating and implementing action plans for development of six industries in the industrialization strategy through the working group_.

l) Other ministries and sectors and People’s Committees of provinces and centrally-run cities shall take responsibility for formulating action plans and coordinate in handling relevant problems at proposals of the Steering Committee and agencies presiding over implementation of each industry’s action plan.

3. Responsibilities and assistance of the Vietnamese and Japanese Governments

a) Responsibilities and support of the Vietnamese Government:

- In the course of implementation of action plans for strategic industries, the Steering Committee will set up specialized group in relevant ministries and sectors and direct implementation of action plans for development of six industries consistently.

- Ministries, sectors and People’s Committees of provinces and centrally-run cities shall provide and share information, data and statistics that are necessary for the implementation of the industrialization strategy.

b) Responsibilities and support of the Japanese Government:

- Japanese relevant agencies commit to proactively participating in and supporting for implementation of the industrialization strategy_.

- To provide financial support for conducting investigations, surveys and consultations those are necessary for implementation of industrialization strategy.

- To proactively promote investment and seek potential investors for Vietnam, select and share information among ministries, sectors and relevant parties to serve implementation of the industrialization strategy.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies, heads of government- attached agencies, chairpersons of provincial-level People’s Committees and heads of relevant agencies shall implement this Decision.