Quyết định 2146/QD-TTg

DECISION

APPROVING THE PLAN ON RESTRUCTURING THE INDUSTRY AND TRADE SECTOR TO SERVE THE CAUSE OF NATIONAL INDUSTRIALIZATION, MODERNIZATION AND SUSTAINABLE DEVELOPMENT THROUGH 2020, WITH A VISION TOWARD 2030

THE PRIME MINISTER

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

Pursuant to the Resolution of the third Plenum of the Party Central Committee, XI^th tenure;

Pursuant to the Government’s Resolution No. 10/NQ-CP of April 24, 2012, promulgating the Government’s plan of action to implement the 2011-2020 socio-economic development strategy and the national development orientations and tasks for the five years 2011-2015;

Pursuant to the Prime Minister’s Decision No. 339/QD-TTg of February 19, 2013, approving the master plan on economic restructuring in association with change of the growth model for higher quality, effectiveness and competitiveness in the 2013-2020 period;

At the proposal of the Minister of Industry and Trade in Report No. 9457/TTr-BCT of September 25, 2014, on the Plan on restructuring the industry and trade sector to serve the cause of national industrialization, modernization and sustainable development through 2020,

DECIDES:

Article 1. To approve the Plan on restructuring the industry and trade sector to serve the cause of national industrialization, modernization and sustainable development through 2020, with a vision toward 2030 (below referred to as the Plan), with the following principal contents:

I. VIEWPOINTS, OBJECTIVES AND ORIENTATIONS

1. Viewpoints

a/ Restructuring the industry and trade sector is a component of the overall restructuring of the national economy in conformity with the national socio-economic development strategy and plan;

b/ To enhance state management capacity and organize a rational structure for the apparatus by means of mechanisms and policies, clearly determine the roles and functions of the State and the market in the direction of minimizing barriers and measures of administrative interference, create a momentum for shifting and distributing resources in response to market signals with a view to promoting the sector’s development;

c/ Restructuring the industry and trade sector must both follow the market mechanism and ensure harmonious interests of the State, people and enterprises; to vigorously change from extensive growth to intensive development to raise the quality, labor productivity and added value of the sector while meeting the social requirements;

d/ Restructuring the industry and trade sector is geared to building a rational structure in industries and trade with the participation of all economic sectors, and connecting industrial development with planning consolidated raw-material zones; to associate the sector’s development with environmental protection and proactive response to climate change and sea level rise; to economically and efficiently use energy according to the goal of green, stable and sustainable economic growth;

dd/ To combine raising the production and business capacity and effectiveness of enterprises with restructuring the sector and fields; to focus on strongly developing a number of prioritized manufacturing industries and supporting industries in order to improve and upgrade the development levels of a number of industries that are likely to have spillover effects for promoting and facilitating the development of other sectors;

e/ To continue with the door-open policy and active and proactive international integration; to attract the active involvement of the people and all economic sectors, particularly the private sector at home and abroad, so as to mobilize to the utmost and utilize more effectively resources for socio- economic development;

g/ Restructuring constitutes a complicated, difficult and long process which should be regularly evaluated, reviewed and modified to reflect reality on the basis of drawing up programs of action for implementation and creating a system of monitoring and evaluation and consultation of feedback information from stakeholders.

2. Objectives

a/ Overall objectives:

Restructuring the industry and trade sector aims to promote the restructuring of the whole economy, and increase the growth quality, labor productivity and competitiveness of the sector. To study and renew the model of operational organization of the sector and create a rational model of state administration of energy to meet the country’s socio-economic development requirements and serve the cause of national industrialization and modernization.

b/ Specific objectives:

- To develop industry with a rational industry- and territory-based structure; to thoroughly exploit available advantages and proactively create domestic advantages and international opportunities; to deeply participate in the regional and global industrial production networks so that by 2020 Vietnam will basically become a modernity-oriented industrial country; to endeavor to achieve the target that by 2030, Vietnam’s competitive industrial performance (CIP) index will be among those of the top countries in the region;

- To develop industry on the basis of mobilizing with the highest effectiveness all resources from various economic sectors; to attach importance to developing prioritized industries and industrial products that serve as the foundation for agricultural and rural modernization; to vigorously promote the development of industries and industrial products with high added value and large export value; to connect manufacturing with developing industrial services;

- To rationally develop energy sources under the market mechanism to meet the country’s socio-economic development requirements; to step up the assessment of natural resource deposits; exploration and purchase of overseas mines; to proceed to organizing bidding in natural resource exploitation activities;

- To further develop overseas markets for quickly increasing export; to build and strengthen strategic partnerships in order to develop sustainable markets; to diversify import and export markets, avoiding reliance on any single import market; to take the initiative in adjusting the growth rate of goods import, rationally control imports, and reduce trade deficits with the markets with which Vietnam has large trade deficits;

- To attach importance to and strongly develop the domestic market; to build a civilized and modern domestic commerce developing sustainably based on a rational structure of distribution systems and channels with the participation of various types of organizations and economic sectors; to encourage and promote the formation of large enterprises through accumulation and concentration; to uphold the role and position of domestic trade in guiding and promoting production development, directing and meeting more and more diverse domestic consumption demands of the people; to pay special attention to developing markets in border and mountainous areas and on islands;

- To proactively and actively integrate in the international community, further enhance the role of Vietnam in regional and international forums; to proactively build new partnerships that truly bring about national benefits; to promote and increase the effectiveness of international integration in close connection with ensuring the requirements of firm preservation of independence and autonomy and sustainable development;

- To strongly renew, reorganize, and raise the performance effectiveness of, state enterprises in the sector, increase the use efficiency of state capital invested in these state enterprises, put an end to scattered and thinned-out investment in business lines and fields outside their major production and business tasks or ineffective ones, speed up the divestment of state economic groups and corporations;

- To endeavor to increase the average growth rate in industrial added value to 6.5-7% during 2016-2020 and 7.5 - 8% during 2020-2030;

- To increase the proportion of industry and construction in the economic structure (% of GDP) to 42-43% by 2020 and 43-45% by 2030;

- To reduce power wastage in electricity transmission and distribution to 8% by 2015 and below 8% by 2020;

- The energy plasticity/GDP ratio will be 1.5 by 2015, 1 by 2020, and below 1 by 2030;

- To strive to cut the loss rate of coal exploited from pit mines to 25% by 2020 and below 25% after 2020 and the loss rate of coal exploited from open-cast mines to 5% by 2020 and below 5% after 2020; to increase the recovery rate in coal screening and processing to 90%;

- To strive to increase the annual average growth rate of goods export in the 2016-2020 period to about 15%; to control trade deficit at below 5% of export value by 2015, and proceed to achieving trade balance by 2020 and trade surplus during 2021-2030;

- To strive to increase the contribution of domestic trade to the economy’s GDP to about 14% by 2015, 14.5-15% by 2020 and about 15.5-16% by 2030.

3. Orientations

- To enhance the management role of the State, review, amend and supplement mechanisms and policies, create a transparent and open legal framework, reform administrative procedures to create every favorable condition and provide quality information, remove difficulties and barriers for enterprises to develop, create a momentum for and encourage all economic sectors to invest in the sector’s development;

- To increase the effectiveness and improve the production and business capacity and competitiveness of enterprises in the sector through re-defining their major tasks, strengthening and rearranging their operational organization, restructuring their equity capital, reorganizing their production and business and improving their governance and human resource management mechanisms, combining restructuring groups and corporations with restructuring the sector and the economy.

- To strongly apply modern technologies to production and business. To step up research and development (R&D) activities, trial production of products based on research outcomes, science and technology services to serve technology renovation and improvement as well as product improvement, increase the localization rate in the manufacture of complete equipment systems; to increase the contribution rate of science and technology to the added value of industrial products. To finish the renewal of the operational models of research institutes within the sector;

- To train and develop high-quality human resources, attaching importance to raising policymaking and management organization capabilities of the sector; to develop and reorganize training institutions of the sector; to mobilize schools and other training institutions in the national education system to train and retrain human resources to meet the sector’s development requirements;

- To develop the sector’s own standards and technical regulations, quality standards and environmental standards and apply them or international standards in the development of the sector. To resolutely reject investment projects using obsolete technologies, inefficiently using natural resources and energy or causing environmental pollution;

- To review investment projects under the sector’s management; to closely control the scope and size of every investment project according to the approved objectives, field and program; to make investment decisions only when projects have been selected according to prescribed procedures and order of priority, their funding sources have been identified and it is possible to balance and arrange sufficient funds for their completion. To increase the competence and capacity of the supervisory system for public investment, to enhance observance of law, mechanisms and policies, and heighten the responsibility for examination, inspection and supervision of public investment.

II. RESTRUCTURING CONTENTS BY FIELD

1. Industry field

To develop prioritized industries with a focus on developing industries that manufacture products with high added value and large export value; to find markets for supporting industries to develop; to use high technologies; to create many jobs requiring high qualifications; to incrementally reduce industries using a lot of natural resources, minerals and manual labor.

a/ Heavy industry

To attach importance to investment in technology renewal in order to restructure products in mechanics-metallurgy, chemical and rubber industries. To concentrate on developing supporting industries for electronics and mechanics industries. To further the effective implementation of the key mechanic engineering development program. To encourage investors to make large and intensive investments in steel, nonferrous metal, mining and chemical industries.

- Mechanical engineering

+ To prioritize investment in research, design and manufacture of new products and technology transfer, and investment in a number of modern casting centers, at the same time to concentrate on developing through 2020 such products as farm machinery, automobile parts and spare parts, seagoing ships, etc. To select typical projects engaged in the prioritized commodity lines for implementing the credit support policy. To select and concentrate investment on a number of research units with a view to enhancing the overall capacity of designing synchronous equipment programs and manufacturing key mechanical products. To invest in building agricultural mechanization demonstration centers.

+ To develop supporting industries for mechanical engineering, including selecting and prioritizing development of the manufacture of mechanical products to serve the automobile industry; shipbuilding; transport mechanics; engines; machinery and equipment to serve mechanization in agriculture, forestry, fishery and processing industry; metal treatment and coating with modern technologies; processing and manufacture of high- precision mechanical details; products of high exchangeability and great output…, in order to promote the rapid restructuring and increase of added value of the sector, and participation in the global value chains of multinational groups.

- Chemical industry

+ To develop production based on rational and economical utilization of natural resources, actively explore new natural resources for development; to apply modern technologies to restructuring the industry and increasing its added value, produce essential goods to better meet domestic demands and step up the export of such products as fertilizers, rubber products, base chemicals, petrochemicals, pure chemicals, pharmaceutical chemicals and consumer chemicals;

+ To rationally distribute the production force by industry and territory to create balanced and rational development in the chemical industry; to form and bring into play industrial parks and clusters as well as large-scale chemical production complexes. To minimize the formation of small-scale chemical production and processing facilities. To plan the relocation of chemical factories into industrial clusters and parks for centralized management.

- Electronics and information technology

+ To elaborate development orientations and identify a number of breakthrough stages for concentrating investment on production, giving priority to the attraction of cutting-edge technologies, manufacture of some key components and accessories in order to further promote restructuring, making greater contributions to the added value of the industry. To build an electronic components and accessories manufacturing industry connected to international production and supply chains. To manufacture a number of high-quality electronic and information technology products (not necessarily final finished products) for the international market. To encourage the development of software applications, especially embedded software in hardware, electronic and telecommunications equipment, to meet domestic demand. To develop dual-use fields serving national defense such as cruise missile control electronics, reconnaissance and search telecommunications electronics; electronics in unmanned aerial vehicles;

+ To strongly develop the information technology industry, including hardware-electronics, software, digital content and information technology services; to focus on training and developing highly qualified human resources for information technology; to invest in building a network of information technology parks to attract investment from leading global groups; to prioritize market expansion and trade promotion for hardware- electronic products, software, digital content and information technology services bearing Vietnamese brand names and having high added value.

- Steel industry

+ To restructure the manufacture of products from quantitative development to quality raising up to international standards; to prioritize the development of steel products that cannot be manufactured yet in Vietnam; to shift from small-scale and scattered to medium-scale and -large manufacture, concentrating on developing some domestic steel enterprises to be able to manufacture 2-3 million tons/year, with advanced technological level, high competitiveness and environmental friendliness;

+ To closely manage iron ores under the Mineral Law and approved master plan in order to create raw-material sources for the manufacture of pig iron and steel; to set a roadmap for gradual elimination of small pig iron and steel refining and rolling factories that use obsolete technologies and inefficiently use natural resources and energy, causing environmental pollution;

+ To create a steel distribution system suitable to the model of socialized circulation, market mechanism and conformable to the current Enterprise Law.

- Mining industry

+ To promote and concentrate state capital and encourage enterprises to invest their own capital in conducting geological base surveys to prospect, explore and assess natural resource deposits on the mainland and continental shelf of Vietnam, striving to complete the 1:50.000 geological mapping and mineral survey on the mainland and in coastal areas at a depth of 30 m under water by 2020;

+ To promote and develop large-scale mineral exploitation and deep processing projects with modern technology, causing less environmental pollution and conserving natural resources and energy. To form concentrated mineral processing industrial clusters: bauxite-alumina-aluminum, titanium, apatite, white ashlar, copper, pig iron and steel;

+ To promote foreign cooperation and investment in a number of projects including comprehensive investment in an electricity plant - aluminum electrolysis plant in Vietnam; investment in aluminum electrolysis plants overseas (in countries where power sources are available and costs are reasonable) which use alumina produced in Vietnam; investment in the deep processing of titanium ore (titanium pigment and metal) in Vietnam; investment in the screening of grade-2 apatite ore with a P2O5 content of between 15% and 28% and of grade-4 apatite ore with P2O5 content of under 15% in order to obtain refined ore with P2O5 content of at least 32% for use as material for fertilizer and chemical production; and investment in rare earth exploitation and processing in Lai Chau province;

+ To step up examination and supervision of mineral exploitation, processing and export and environmental management. To hold bidding for the mining right, mining activities or some of mining activities.

b/ Light industries

To attach importance to investment in technology renewal in order to restructure products in textiles and garments, leather and footwear, plastic, beverages, cigarette, paper, vegetable oil, etc.; to plan industrial clusters and parks with proper wastewater treatment systems and concentrate on developing materials and auxiliary materials in textiles, garments and leather and footwear industries; to concentrate on and create every condition for developing raw-material zones for dairy, cigarette and paper industries.

- Textiles and garments

+ To quickly form textiles and garments clusters, create a linked production network of enterprises and develop the value chain of the industry; to form unions and cooperation organizations of companies vertically in the supply chain from the supply of materials to the distribution of garment products;

+ To encourage investment in building textile and dyeing industrial parks; to encourage and attract investment in the production of fabric, technical and medical textile products and auxiliary materials for the garment industry; petrochemical products (fiber, yarn, chemicals, dyes, etc.); to give priority to investment in irrigated cotton production projects; to study the possibility of producing petrochemical products for the textile and garment industry;

+ To build material and auxiliary material supply centers in Hanoi, Ho Chi Minh City and major cities for timely supply to enterprises in the industry;

+ To plan the training of laborers for the textile and garment industry in industrial clusters; to strengthen and develop the specialized textile and garment training system. The State shall provide partial support from the budget for research and training activities and construction of physical and technical foundations for research institutes and training institutions in the industry;

+ To develop irrigated cotton material growing areas; the State shall support investment in infrastructure in planned raw-material areas. To invest in design and fashion; to center on developing the domestic market.

- Leather and footwear

To strongly develop the production of materials and auxiliary materials and the supporting industry for the leather industry in order to create added value and promote its restructuring. To expeditiously build an industrial park for leather tanning. To build the capacity of designing patterns for and developing new products. To prioritize the production and export of sports and canvass shoes; to produce fashionable leather footwear and high-quality hand bags and wallets for new markets, high-class markets and domestic markets. To open leather and footwear faculties or disciplines in vocational training schools and research institutes in order to supply more human resources for the industry.

- Tobacco

+ To create favorable conditions for all economic sectors to invest in developing high-quality tobacco material zones according to planning, ensuring stable supply of materials for production and export;

+ To attract investment in renewing tobacco shred processing technologies in order to improve the quality of tobacco products toward increasing the rates of medium- and high-quality products, reducing tar and nicotine contents and increasing the added value of exported cigarette products; to strictly manage the domestic production output and import in order to ensure lawful supply sources to meet demand and implement the national strategy for prevention and control of tobacco harms;

+ To strictly manage the cigarette distribution, wholesale and retail systems; to link petrochemical, plastic, paper and other industries to produce cigarette auxiliary materials for import substitution and higher added value in the value chain of domestic products and exports;

+ To organize and arrange cigarette production units toward concentration and equitization according to the approved roadmap.

- Beverage

+ Soft drinks: To promote investment by all economic sectors in large- scale soft drink production with modern technology and equipment, ensuring food hygiene and safety, environmental protection, use of domestic materials in combination with building raw-material areas, giving priority to the production of fruit and nutritious drinks.

+ Alcohol: To encourage the development of industrial-scale and high- quality alcohol production and gradually reduce family-based manual alcohol distillation. To attach importance to production of wines from fresh fruits in combination with development of raw-material areas;

+ Beer: To strictly control the development planning in conformity with the market demand. Particularly, not to grant investment certificates to too small projects (with a capacity of under 50 million liters of beer/year or under 5 million liters of liquor/year) and projects applying obsolete technologies and equipment, failing to ensure food hygiene and safety, or projects without industrial wastewater treatment systems;

+ For the supporting industry for the beverage industry: To make additional or expanded investment in glass factories for higher output. To reduce the import of malt and call for investment in domestic malt production to ensure proactive supply of production materials.

- Vegetable oil

To develop growing areas of raw materials being Vietnam’s advantages such as bran, soya bean and sesame. To raise the quality of products, produce high-quality vegetable oil for export and shift from medium-quality to high- grade products. To promote product branding. To study and create technical barriers to control the quality of imports by means of product specification regulations to control imports.

- Paper

To develop the paper industry in consolidated large areas; to give priority and incentives to paper and pulp mills with an output of at least 100,000 tons a year. To prioritize investment in the production of high-quality industrial packaging paper. To apply advanced technologies to save materials, fuel and energy in the production of pulp and paper and in the treatment of wastewater, exhaust gas and solid wastes, recycle water and create closed production lines to reduce environmental pollution. To arrange and develop paper material areas in conformity with the agriculture as well as plant variety planning. To increase the effectiveness of the collection and recycling of waste paper (OCC and DIP).

- Milk

+ To further invest in building new and expanding existing production facilities in order to meet domestic consumption demand and for export. To concentrate on developing the capacity of production of pasteurized and sterilized milk, powdered milk, yoghurt and high-grade ice cream and new dairy products;

+ To develop the dairy processing industry toward incrementally increasing the use of domestic fresh milk materials and reducing imported powered milk materials. To develop the dairy processing industry in close association with developing industrial-scale milch cow raising areas and quickly increasing local milch cow herds;

+ Not to grant investment certificates for milk production projects without investment in milch cow raising development; projects using obsolete technologies and equipment, failing to ensure food hygiene and safety or projects without investment in industrial wastewater and animal raising waste treatment systems.

- Plastic

To restructure product groups toward reducing the groups of packaging plastic products and consumer plastic products and incrementally increasing the group of plastic products for use as building materials and technical plastic products. To promote investment to meet the demand for materials and cooperate with the petrochemical industry to early complete projects to supply materials for manufacturing plants and build scrap treatment and recycling plants. To seek stable import markets with favorable transport conditions (ASEAN countries). To study and create technical barriers to control the quality of imports by means of technical specification regulations to control imported plastic products.

2. Energy field

To search and diversify mobilized investment capital sources for the energy industry development. To reasonably allocate capital sources for both domestic and offshore investment to ensure economic efficiency and national energy security. To step up, concentrate state funds on, and encourage enterprises to invest their own funds in, geological base surveys to prospect, explore and assess natural resource deposits on the country’s mainland and continental shelf to provide grounds for attracting investment and mining bids. To promote oil and gas exploitation, processing, transport, storage, distribution and service activities in the country and abroad; to increase reserves and investment in purchasing mines abroad.

To work out a plan on the establishment of a state management agency in charge of energy. To clearly define the functions of state management and production and business management in the oil and gas industry. To restructure the operational model of power generation corporations, the National Power System Regulation Center, power corporations and electric power trading companies of Electricity of Vietnam.

To implement energy conservation and efficiency programs, striving to bring the energy elasticity coefficient close to those of advanced regional countries.

a/ Power

- To form and develop different levels of the power market in Vietnam determined in the Prime Minister’s Decision No. 63/2013/QD-TTg of November 8, 2013, in synchrony with forming primary power markets (for coal, oil, gas…) in Vietnam;

- To restructure the power industry in order to meet the conditions for forming different levels of the power market;

- To persistently implement the power price adjustment roadmap according to the market mechanism under the Prime Minister’s Decision No. 69/2013/QD-TTg of November 19, 2013, on the mechanism for adjustment of average power retail prices.

b/ Coal

- To speed up investment in mine works through diversifying forms of investment in order to make the most use of all resources while still ensuring the controlling state ownership, increasing investment efficiency and meeting the production demand as planned;

- To strongly renew exploration technologies in order to increase verified coal deposits and upgrade current coal reserves in the country by assessment and computing methods according to combined domestic and international standards for higher reliability; to invest in overseas coal exploration and exploitation;

- To step up the search for import markets and coal sources; to invest in the research and application of coal processing technologies to create coal categories meeting domestic consumption demand, especially for power generation;

- To expeditiously work with foreign partners and select suitable sites for implementing an experimental project on underground coal gasification in combination with carbon recovery and storage in the Red River delta coal basin;

- To plan, design and construct new or renovate existing mines to be concentrated and have high output with complete and modern technology lines; to optimize production to ensure stable and long-term exploitation;

- To reduce the loss of coal exploited from pit and opencast mines; to increase the coal recovery coefficient. To proceed to holding bidding for mining activities or some mining activities and the mining right;

- To review, amend and supplement special mechanisms and policies applicable to mining workers, especially miners, to conform to realities for supporting and attracting laborers in the industry.

c/ Oil and gas

- To complete the system of legal documents for the oil and gas industry and its activities as suitable to the autonomous and transparent operations of self-responsible oil and gas enterprises according to the market mechanism. To improve mechanisms and policies for offshore oil and gas investment, the purchase of offshore mines and midstream and downstream activities toward creating a fair environment to attract foreign investment and petrol and oil product trading enterprises;

- To develop a balanced oil and gas industry from downstream to upstream activities. To encourage and accelerate oil and gas prospection and exploration. To prioritize the development, exploitation and use of natural gas. To encourage and give incentives to investors in the prospection and exploitation of gas fields, especially small fields and fields with limited margin deposits. To complete the model for the oil and gas industry and gas prices according to the market mechanism;

- To draw up a strategy for development of Vietnam’s oil and gas industry in the 2016-2025 period, with orientations toward 2035, concentrating on five core business fields: oil and gas prospecting, exploration and exploitation; gas industry; power, petrochemical and refinery industry; high-quality oil and gas services; and application of modern administration methods.

3. Trade field

a/ Export development

To further the implementation of the sector’s plan on implementation of the program of action to materialize the goods import and export strategy in the 2011-2020 period, with orientations toward 2030.

- To develop exports

+ Fuel and mineral commodities: Not to export crucial minerals, even in the form of refined ore;

+ Agricultural, forest and aquatic products: To increase the output, quality and added value; to restructure export goods toward strongly promoting deep processing and developing exports that apply scientific and technological advances;

+ Processed and manufactured industrial goods: To develop products with high technological and grey-matter contents; to develop supporting industries for raising the local value rate;

+ New goods items: To review new goods items with still low export value but showing high growth potential in the coming time so as to adopt policies to promote their development, creating an export breakthrough.

- To develop the export market

+ To continue diversifying the export markets; to consolidate and expand the Vietnamese goods market share in the traditional markets (Russia and Eastern Europe); to create breakthroughs in the expansion of new potential export markets such as India, other southern Asian countries, Africa, Middle East and Latin America; to prioritize the exploitation and make the most use of opportunities from key and strategic export markets (the U.S., Japan, China, the EU, ASEAN and Australia). To focus on trade promotion so as to seek new markets for Vietnam’s farm and vegetable products;

+ To make good use of market-opening opportunities created by foreign countries and the tariff reduction roadmaps to boost export and increase the effectiveness of Vietnam’s exports to the markets that have signed free trade agreements with Vietnam (FTA/EPA/CEP);

+ To promptly publicize and raise awareness of manufacturers and exporters about barriers of importing countries in order to boost export and improve the quality of exports and help them avoid risks when performing export contracts.

b/ Import management

To diversify the import markets, especially those for production materials and auxiliary materials, in order to avoid reliance on any single market; to step by step narrow trade deficits with foreign markets. To proactively adjust the import growth rate to meet requirements. To increase the quality control of imports and use technical barriers to limit import.

c/ Domestic market

- To study and draw up an overall strategy for development of the domestic market through 2025, with a vision toward 2035, for identifying major orientations for the development of local markets in conformity with Vietnam’s socio-economic development conditions;

- To further improve policies and laws on opening the distribution service market toward transparency and consistency; to study and propose policies to consolidate and expand the distribution system and build civilized and modern distribution channels, paying attention to developing distribution networks in rural, deep-lying, remote, border and island areas so as to create conditions for people in all regions to access Vietnamese quality goods at affordable prices; to study and propose mechanisms and policies to support and facilitate the formation of sustainable links among producers, farmers and distributors in product consumption;

- To substantially modernize trade infrastructure: By 2020, all communes will have marketplaces up to the new-countryside criteria; to complete the renovation, upgrading and construction of farm product wholesale markets, border markets, border-gate markets and markets in border-gate economic zones; 80% of townships will have small- and medium-sized distribution organizations. By 2020, 70% of provinces and centrally run cities will have market models ensuring food hygiene and safety. To appropriately revise and supplement relevant regulations on infrastructure development;

- To attach importance to building and developing modern trade infrastructure facilities. To strive to increase the retail proportion of modern trade facilities (trade centers, supermarkets, convenience stores, etc.,) in the total retail sales to 40% by 2020. To form a rice exchange in Can Tho, a coffee exchange in Dak Lak and a number of auction centers for farm products;

- To develop other modern forms and methods of trade like commodity exchanges, auction centers, franchising, e-commerce, futures trading, etc., to study and create mechanisms and policies to facilitate the development of these activities;

- To form and develop some strong trading groups dealing in specialized or general goods, with real capacity to effectively compete and cooperate with foreign distribution groups that are currently operating or going to invest and trade in Vietnam;

- To ensure sound and sustainable trade development; to raise the self- adaptability of the market under the impacts of the world markets, contributing to controlling the consumer price index;

- To increase the quality and effectiveness of market examination and control, especially of speculation and price hiking acts. To further raise the quality and effectiveness of market forecast and surveillance work. To build an organizational model for the market control apparatus which is strong enough to perform uniform and intensive management of commercial and market activities;

- To actively implement the master plan on development of production and distribution systems for essential goods… To effectively implement the campaign “Vietnamese people prioritize the use of Vietnamese goods.”

4. International economic integration

a/ To further develop and improve laws and policies in order to increase the effectiveness of international economic integration

- To improve the policy framework to exploit opportunities and limit challenges in the course of international economic integration;

- To draw up roadmaps for approach and accession to multilateral international institutions in which Vietnam has benefits. To proactively prevent and settle international trade disputes and issue early warnings about international commitment breaches in Vietnam and abroad.

b/ To improve institutions that direct, coordinate, implement and supervise international economic integration activities

- To substantially improve the coordination among players in the process of international economic integration, especially coordination among state agencies;

- To promote assessment, information and forecast activities to permit higher proactiveness and flexibility in administration and management work. To establish and strengthen information transparency mechanisms, disseminate knowledge about international economic integration for agencies and enterprises, enhance the participation of stakeholders in the integration process through consultation channels at different levels; to organize regular and periodical consultations or through communication and electronic media to collect public feedback on international economic integration activities.

c/ To step up negotiation and implementation of international trade agreements

- To promote negotiations on agreements that help stabilize the legal framework and facilitate export of goods. To urge major partners like the U.S. and the EU to recognize the market economy status for Vietnam;

- To apply to the utmost flexible regulations of treaties (especially flexible regulations and exceptions in the rules of the World Trade Organization (WTO) and other international economic agreements) in order to make laws and regulations to protect consumers and domestic production, such as technical barriers, anti-dumping and anti-subsidy measures, and exceptions related to intellectual property rights.

III. MAJOR SOLUTIONS, MECHANISMS AND POLICIES

1. Renewing mechanisms and policies and stepping up reform of administrative procedures to meet development requirements

a/ To continue reviewing, amending, supplementing and completing supporting mechanisms and policies as leverage for developing industrial production and trade in conformity with international economic integration commitments and the orientations of a socialist market economy;

b/ To promptly introduce policies to promote supporting industries, including tax incentives and business support measures;

c/ To draft a law on foreign trade and amend and supplement other relevant legal documents in order to facilitate operation of enterprises;

d/ To step up administrative reform, especially reforming administrative procedures, simplifying processes and procedures, strongly cutting down time and cost for carrying out administrative procedures; to raise the quality of public administrative services and create every favorable condition for activities of enterprises and people.

2. Increasing the quality of planning work, associating strategies with master plans and plans, management and supervision to raise the effectiveness of state management of planning work

a/ To review and systemize approved strategies, master plans and plans on development of key industries, fields and products of the industry and trade sector in order to amend and supplement them or draw up new ones;

b/ To evaluate the implementation of investment projects under master plans in order to set foreign investment attraction orientations in line with the development orientations of sectors, fields and localities/territories;

c/ To intensify examination and supervision of the implementation of master plans, especially the combination between regional master plans and sectoral master plans or socio-economic development master plans; to make public and transparent all types of master plans.

3. Raising the investment, production and business effectiveness at enterprises

a/ To implement the policy on focused and prioritized investment: To concentrate investment on key projects under five-year production and business and investment plans already approved by the Prime Minister and annual plans drawn up by groups and corporations; to commence construction of works and projects only when all implementation conditions, such as ground area, investment capital sources and human resources, are fully met;

b/ To adjust and make development strategy models, restructure capital and assets, renew production processes, diversify and differentiate products, build and develop product brands; to renew the management organization, renew and improve the effectiveness of internal management suitable to each group or corporation; not to let groups and corporations invest in non-core production and business lines;

c/ To diversify investment capital sources, balance and allocate rationally capital sources to ensure core production and business activities of groups and corporations. To attach importance to renewing production technologies and equipment, applying advanced production management technologies and models to raise the use efficiency of energy and input resources, and increase the output, quality and competitiveness of products;

d/ To build supervision capacity for units of the Ministry and project owners to effectively supervise the management of investment and construction activities, making sure that approved investment projects fully meet the set criteria, are implemented on schedule and bring about socio- economic benefits; to increase information publicity and accountability of management agencies and project owners for invested works, particularly key works.

4. Accelerating the equitization of enterprises

a/ To speed up the equitization of state enterprises; to review, classify and supplement plans on reorganization of state enterprises in 2014 and 2015, draw up a reorganization plan for the subsequent period; for groups and corporations, to diversify ownership and resolutely divest capital from non- core business lines and business lines with low investment effectiveness and unable to grow. To drastically implement approved restructuring plans of groups and corporations;

b/ To study appropriate organizational models for state enterprises and research institutes which have been transformed or will be transformed in the coming time.

5. Developing human resources

a/ To identify human resources needs of the industries as a basis for training institutions to proactively make training, retraining, intensive training and business administration training plans;

b/ To arrange training institutions of the Ministry by cluster and region. To implement the action program to substantially and comprehensively renew tertiary education with regard to training institutions of the Ministry through renewing teaching methodologies and textbooks, purchasing teaching and learning equipment, promoting training according to needs, objectives and target groups…, associating vocational training with the industries. To encourage and create favorable conditions for training institutions to cooperate, align with and support one another in providing job skills training and improvement for employees of enterprises;

c/ To build a database for the management of human resources of the sector, apply information technology to the management of education and training institutions of the Ministry in order to raise the management effectiveness; to build a system of administrative documents related to the development of the sector’s human resources suitable to practical conditions by assigning the autonomy and self-responsibility to these institutions.

6. Developing science and technology

a/ To continue improving the organizational models of scientific and technological research, consultancy and service agencies toward autonomy and self-responsibility; to transform, establish and develop different types of science and technology enterprises under the Government’s Decree No. 80/2007/ND-CP of May 19, 2007, on science and technology enterprises;

b/ To step up the implementation of the contents of the approved strategy for development of science and technology of the industry and trade sector in the 2011-2020 period. To further implement effectively national programs and projects assigned by the Prime Minister to the Ministry of Industry and Trade;

c/ To invest in developing with focuses and priorities some laboratories, renovating and adding equipment, prevent the degrade of, and upgrade specialized laboratories with modern physical foundations and equipment to meet research demand, especially in the fields of designing and manufacturing new products, analysis, examination and certification of regulation and standard conformity.

IV. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Industry and Trade

- To assume the prime responsibility for, and coordinate with other ministries, sectors and localities in, implementing the Plan; to study and propose mechanisms and policies to mobilize social resources for the Plan implementation;

- To direct its attached units to make restructuring plans for each specific field and submit them to the Ministry for approval; to coordinate, examine and supervise the implementation of the Plan;

- To make action plans and assign specific tasks to each agency and unit of the Ministry and to localities for performance;

- To direct, examine, urge and supervise state groups and corporations under the Ministry’s management to implement restructuring plans already approved by the Prime Minister;

- To annually review and assess the implementation of the Plan; to proactively study and propose mechanisms and policies that need to be revised and supplemented in the course of implementation;

- To closely coordinate with the Ministry of Foreign Affairs and concerned agencies in charge of international economic integration under the Party Central Committee’s Resolution No. 22-NQ/TW of April 10, 2013, and conduct political and diplomatic lobby campaigns to negotiate and implement international agreements.

2. The Ministry of Planning and Investment

- To assume the prime responsibility for, and coordinate with other related ministries and sectors in, studying policies on development of key economic regions toward raising the operation effectiveness of the Organization for Coordination of the Development of Key Economic Regions;

- To study and amend the Government’s Decree No. 108/2009/ND-CP of November 27, 2009, on investment in the forms of Build-Operate-Transfer contract, Build-Transfer-Operate contract and Build-Transfer contract toward expanding the groups of investors eligible for investment incentives under this Decree, especially those making investment in border, mountainous and island areas, and submit it to the Government for consideration and promulgation;

- To develop criteria for investment effectiveness assessment as a basis for supervising the process of investment and as a tool for investment effectiveness assessment;

- To draft legal documents guiding the Investment Law, Public Investment Law, Enterprise Law, Bidding Law and Cooperative Law.

3. The Ministry of Finance

- To study and propose for promulgation financial mechanisms and policies to serve the implementation of the Plan;

- To study, amend and supplement the Government’s Decree No. 75/2011/ND-CP of August 30, 2011, on investment credit and import and export credit of the State toward adding investment projects on construction of trade infrastructure; investment projects on construction of information technology parks and potential exports to the list of exports eligible for soft loans, and submit it to the Government for consideration and promulgation;

- To continue improving the financial management mechanism for the effective implementation of the national trade promotion program; to prioritize the allocation of annual budget funds for the implementation of this program and for government delegations to hold negotiations on international economic and trade issues;

- To study and adjust the import and export tariffs suitable to components and accessories in order to lawfully protect and encourage domestic production.

4. The Ministry of Science and Technology

- To assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, formulating, managing and organizing the performance of national science and technological tasks already approved by the Prime Minister and assigned to the Ministry of Industry and Trade for management in the spirit of the Science and Technology Law;

- To coordinate with the Ministry of Industry and Trade in completing the transformation and implementation of the autonomy and self- responsibility mechanism applicable to public science and technology organizations under the Government’s Decree No. 115/2005/ND-CP of September 5, 2005, and the formation and development of science and technology enterprises under the Government’s Decree No. 80/2007/ND-CP of May 19, 2007, on science and technology enterprises.

5. The Ministry of Agriculture and Rural Development

- To assume the prime responsibility for, and coordinate with the Ministry of Science and Technology in, formulating, and organizing the implementation of, national good agricultural practices (VietGAP), implementing GlobalGAP, and applying standards to agricultural and aquatic products for export to ensure stable supply of goods for export;

- To assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, reviewing the master plans on development of raw-material areas to serve processing industries like paper, vegetable oil, milk and animal raising.

6. The Ministry of Health shall closely coordinate with the Ministry of Industry and Trade in implementing the Law on Food Safety.

7. The State Bank of Vietnam shall direct credit institutions to prioritize credit capital for industrial development, especially in the development of supporting industry and key mechanical engineering.

8. The Ministry of Education and Training, the Ministry of Labor, War Invalids and Social Affairs shall coordinate with the Ministry of Industry and Trade in arranging training institutions attached to the Ministry of Industry and Trade;

The Ministry of Labor, War Invalids and Social Affairs shall coordinate with the Ministry of Industry and Trade in revising and supplementing special mechanisms and policies for mining workers, especially miners, as suitable to reality.

9. The Ministry of Information and Communications

- To assume the prime responsibility for, and coordinate with other related ministries and sectors in, implementing the contents of development of information technology industry and services;

- To assume the prime responsibility for implementing the Prime Minister’s Decision No. 1290/QD-TTg of August 1, 2014, approving the plan of action to implement the electronics industry in implementation of Vietnam’s industrialization strategy within the Vietnam-Japan cooperation framework through 2020, with a vision toward 2030;

- To assume the prime responsibility for implementing the contents of development of information technology industry and formulating a program on development of the information technology industry toward 2020 according to the tasks assigned in the Prime Minister’s Decision No. 1755/QD-TTg of September 22, 2010, approving the Scheme to early turn Vietnam into a country strong in information and communication technology.

10. Provincial-level People’s Committees

- To base themselves on the Plan to review and draw up local industrial and trade development strategies and master plans and organize the implementation thereof;

- To arrange land for investors to build factories in the fields of chemical, textile, dyeing, leather tanning, etc., and give priority to arranging land for building infrastructure facilities for trade development in their localities;

- To study and formulate specific mechanisms and policies to promote investment in marketplace development and create market models that en sure food hygiene and safety in their localities.

11. Ministries, sectors and provincial-level People’s Committees shall coordinate with the Ministry of Industry and Trade in organizing the implementation of the Plan.

Article 2. Implementation provisions

1. This Decision takes effect on the date of its signing.

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