Decision 165/QD-TTg 2023 Scheme on restructuring of the industry and trade sector through 2030

DECISION

Approving the Scheme on restructuring of the industry and trade sector through 2030^[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the Government’s Resolution No. 50/NQ-CP of May 20, 2021, promulgating the Government’s Program of Action to implement the Resolution of the 13^th National Party Congress;

Pursuant to the Government’s Resolution No. 99/NQ-CP of August 30, 2021, promulgating the Program of Action of the Government of the 2021-2026 tenure to implement the National Assembly’s Resolution No. 16/2021/QH15 of July 27, 2021, on the 2021-2025 socio-economic development plan;

Pursuant to the Government’s Resolution No. 54/NQ-CP of April 12, 2022, promulgating the Government’s Program of Action to implement the National Assembly’s Resolution No. 31/2021/QH15 of November 12, 2021, on the Plan on restructuring of the economy for the 2021-2025 period;

At the proposal of the Minister of Industry and Trade,

DECIDES:

Article 1. To promulgate together with this Decision the Scheme on restructuring of the industry and trade sector through 2030.

Article 2. This Decision takes effect on the date of its signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and heads of related organizations shall implement this Decision.

For the Prime Minister
Deputy Prime Minister  
TRAN HONG HA

SCHEME ON RESTRUCTURING OF THE INDUSTRY AND TRADE SECTOR THROUGH 2030

(Promulgated together with the Prime Minister’s Decision No. 165/QD-TTg
of February 28, 2023)

In furtherance of the Government’s Resolution No. 50/NQ-CP of May 20, 2021, on the Government’s Program of Action to implement the Resolution of the 13^th National Party Congress; the Government’s Resolution No. 99/NQ-CP of August 30, 2021, promulgating the Program of Action of the Government of the 2021-2026 tenure to implement the National Assembly’s Resolution on the 2021-2025 socio-economic development plan; and the Government’s Resolution No. 54/NQ-CP of April 12, 2022, promulgating the Government’s Program of Action to implement the National Assembly’s Resolution No. 31/2021/QH15 of November 12, 2021, on the Plan on restructuring of the economy for the 2021-2025 period, the Prime Minister promulgates the Scheme on restructuring of the industry and trade sector through 2030 with the following contents:

I. VIEWPOINTS

Firstly, to restructure the industry and trade sector so as to rapidly and sustainably develop the sector on the basis of bringing into full play the motivative role of science and technology, innovation and digital transformation in order to improve the productivity, quality, efficiency and competitiveness of the sector. The restructuring of sectors, fields and localities aims at bringing into the fullest play comparative advantages of the country, regions and localities in value chains, taking the initiative in taking one step ahead in testing and developing new growth models, thereby efficiently utilizing achievements of the Fourth Industrial Revolution and the international integration process.

Secondly, to build the internal capacity of the industry and trade sector on the basis of increasing the sector’s autonomy in production and market in order to build a new national production capacity that is independent, adaptable and highly resilient to great and abnormal external impacts, thereby ensuring the sector’s effective participation in the global value chains; to bring into full play advantages of the domestic market in order to consolidate internal strengths as an important factor in association with the expansion and diversification of overseas markets with a view to enhancing the country’s concerted strengths, raising the growth quality, and showing more proactivity in international economic competition and integration.

Thirdly, to carry out the restructuring of the industry and trade sector in synchrony with the economic restructuring as well as other key sectors and fields of the economy and in association with the renewal of the growth model; to synchronize industrial, energy and trade policies with other policies in order to create necessary and sufficient conditions for the restructuring of the sector, including financial, monetary, investment, scientific and technological, education and training, transport, construction, international integration, social security, environmental protection policies and those for fulfillment of commitments at COP26 on climate change as well as other policies.

Fourthly, to carry out the restructuring of the industry and trade sector in association with the renewal of the way of thinking and pioneering actions in the sector; to consider reform and improvement of quality of institutions and a complete, modern and competitive business environment toward international integration as the driving force of the growth; to ensure that the market plays the key role in the mobilization, allocation and efficient use of resources; to regard innovation, digital transformation and digital economic development as breakthroughs; science, technology and high-quality human resources as the main tools; and the private economic sector as an important force for the restructuring of the sector; to make the sector greener in association with the environmental protection and climate change mitigation as long-term and strategic goals.

Fifthly, to carry out the restructuring of the industry and trade sector in a focused, thorough and resolute manner with the participation of the entire political system, Party Committees at all levels, central government and local administrations at all levels, and enterprises of all economic sectors; to promote the pioneering, proactive and creative role of cadres, civil servants and public employees on the basis of consolidating their awareness and enhancing their consensus about the restructuring of the sector, and effectively combining the regulation and coordination of activities with assignment of tasks and delegation of powers for task performance in adherence to the principle of closely sticking to reality and appreciating practical results; to establish a system for monitoring and supervision based on specific indicators for measuring the results of restructuring and examining the responsibility of authorities and sectors for the proper and efficient performance of tasks and achievement of set objectives.

II. OBJECTIVES

1. General objectives

To restructure the industry and trade sector with a view to stepping up the economic restructuring, improving the productivity, quality, added value and competitiveness of the sector; to create new growth motivations in association with substantial changes in the growth model of the sector together with a dynamic, effective, modern and high adaptable state governance model for the purposes of industrialization and modernization and rapid and sustainable development; to strive for the objective that by 2030 Vietnam will become a modern industrial country among those with high industrial competitiveness.

2. Specific objectives

- The industrial added-value growth rate will surpass 8.5%/year on average; the ratio of the processing and manufacturing industry to GDP will be around 30% by 2030.

- To ensure the energy supply-demand balance with the rate of energy consumption per GDP reduced by 1-1.5%/year.

- To maintain the trade balance surplus with the export growth rate always higher than the import growth rate and increasing by 6-8%/year on average.

- The average growth rate of the total retail sales of goods and services will increase by 13-13.5%/year.

III. TASKS

1. Regarding the industrial restructuring

a/ To harmoniously combine the intensive industrial development and extensive industrial development, attaching importance to the intensive development, thoroughly utilizing achievements of the Fourth Industrial Revolution and commercial advantages in order to create a breakthrough in improving productivity, quality, competitiveness and local added value of products; to strive for that target that the industrial productivity and the index of industrial production will increase by 7.5%/year and 8.5-9% on average, respectively.

To concentrate on completely developing the domestic industrial production system through the upgrading and development of supply chains and value chains of industries; to attach importance to localization of supply chains of industries in order to reduce their dependence on imported machinery, equipment, raw materials and materials, strengthen the autonomy, and increase the domestic added value and competitiveness of products and position of Vietnamese enterprises in global value chains; to make industries greener and ensure economical and efficient use  of natural resources and energy in industries.

b/ To shift the internal structure of industries from natural resource- and labor-intensive industries into capital- and technology-intensive, green and low-carbon ones; to upgrade stages with low added value to those with high added value in global and regional value chains; to strive for the target that by 2030, the ratio of the processing and manufacturing industries to GDP will be around 30% with the average growth rate of 9-10%/year; the ratio of hi-tech industrial product value to the processing and manufacturing industries will surpass 45%, specifically as follows:

- For foundation industries

To develop foundation industries in order to build a strong and modern national industry that can stay autonomous and basically meet the economy’s demand for means of production and raise the profile of one of the world’s industrial production centers:

+ Concentrating on improving the legal framework for supporting and facilitating the development of such industries as mechanical and manufacturing engineering, metallurgy, chemicals, materials and industries serving agriculture.

+ Building and efficiently operating industrial parks and cottage industry zones as large-scale complete production complexes that are highly specialized in value chains in such fields as metallurgy, chemicals, and mechanical and manufacturing engineering, etc., toward eco-industry based on enhanced environmental protection and response to climate change.

+ Restructuring and diversifying products of the foundation industries, ensuring sufficient supply of products to meet the domestic market’s demand; developing alloy steel and manufactured steel products; petrochemical and base chemical products, fertilizers, technical rubber, pharmaco-chemical and consumer chemical products, etc.

- For the processing and manufacturing industries with export advantages

+ Continuing to develop and upgrade stages of such industries as textile and garment, leather and footwear, electronics, foodstuff, etc., into those with high added value in global value chains in order to improve their international competitiveness and facilitate their deep participation in global value chains in association with enhanced renovation of production processes and technologies into smart and automated ones.

+ Increasing the development scale in order to efficiently tap the export market potential based on the elevation of the level of production technologies, innovation and digital transformation, ensuring efficiency and conservation of raw materials, materials and energy, thereby mitigating environmental pollution and greenhouse gas emissions.

+ Prioritizing the development of the food processing industry in association with concentrated large-scale production units, proceeding to form clusters of specialized production sectors fully satisfying export regulations and standards; developing the industries for manufacture of supplies, materials, machinery and equipment to serve the production and processing of agricultural products.

+ Increasing access to input materials of higher quality and building capacity for providers of such support services as seeking supply sources, designing and developing products, and marketing which can bring about opportunities for textile-garment and leather-footwear producers to shift to segments with higher added value in value chains.

+ Consolidating linkages between multi-national corporations and domestic enterprises in the electronics industry in order to carry out technology transfer and raise production and business governance and organization capacity; concentrating on building capacity for domestic enterprises in terms of management and technical matters and quality standards for better connection with FDI enterprises, thereby step by step participating in the process of designing, R&D and production of spare parts of the sector.

- For hi-tech industries

+ Prioritizing the development of the smart manufacturing industry as a breakthrough to build the new production capacity in association with science and technology, innovation and digital transformation, in order to take a shortcut approach in the development of a number of sectors and products, attaching importance to the development of hi-tech products.

+ Concentrating on development of national industrial products based on new technologies, high technologies and creative economic sectors, attaching importance to the development of hi-tech products, focusing on “Make in Vietnam” products, innovate in Vietnam, design in Vietnam, and integrate them into commercial products in Vietnam.

+ Intensifying the mastery of core technologies, building of Vietnamese brands, use of Vietnamese technologies, and efficient connection to overseas Vietnamese experts and intellectuals.

- For supporting industries

+ Promoting the development of supporting industries in order to serve such major export industries as electronics, automobile, textile and garment, leather and footwear, mechanical engineering, high technologies, etc., and building the capacity to satisfy the rules of origin under free trade agreements (FTAs); striving for the target that by 2030, supporting industries will meet 70% of the domestic production demand.

+ Consolidating linkages between domestic suppliers and multi-national groups investing in Vietnam in order to raise the capacity of domestic enterprises to join the domestic and global production networks; striving for the target that by 2030, there will be some 2,000 enterprises able to ensure direct supply to assembly enterprises and multi-national groups.

+ Building and efficiently operating industrial technical assistance centers to support the development of small- and medium-sized industrial enterprises, especially support for meeting requirements of large-sized enterprises and FDI enterprises in order to become domestic suppliers.

- For the mining industry

+ Synchronously and modernly developing the mining industry to suit the large-scale mineral potential in association with green economy and circular economy models and to master the supply chains of the mining industry from the stages of exploration, exploitation, processing, storage, distribution, import and export of minerals to the provision of services in support of the development of the industry and trade sector, especially for minerals in which Vietnam has great potential such as bauxite, titanium, rare earths, etc.

+ Modernizing the prospecting and assessment of mineral potential; efficiently exploring, exploiting and processing minerals, ensuring safety, conformity with master plans, surveys and sustainable development; intensifying the auction of the mining right in association with the supply of materials for projects in the processing and manufacturing industry.

- For the environmental industry

+ Strongly developing a modern environmental industry with high competitiveness and less dependence on imports on the basis of increasing investment in research and development of environmental technologies, particularly technologies for treating and recycling wastes, technologies for energy efficiency and conservation; and building capacity for domestic enterprises.

+ Formulating and improving regulations, standards and econo-technical norms for investment projects on development of the environmental industry; appraising and evaluating technical standards for environmental machinery, equipment and technologies.

+ Promoting trade liberalization for environmental goods and services under appropriate roadmaps; intensifying investment cooperation, technology transfer and technical assistance for development of the environmental industry under trade agreements and international cooperation frameworks.

c/ To restructure industrial development spaces of regions and localities, thus ensuring high specialization and best promotion of advantages of each region or locality in terms of infrastructure facilities, national conditions, geo-economic and geo-political positions and human resources; to consolidate intra-regional and inter-regional linkages in order to create new development spaces for industries and efficiently join domestic, regional and global value chains

- Forming and upgrading the system of clusters of specialized industries and large-sized and highly efficient industrial complexes based on advantages of localities in a number of dynamic regions, growth poles and economic corridors in conformity with national and local master plans.

- Restructuring economic zones and industrial parks toward sustainability and ecology in association with the formation of clusters of industries, industrial production networks and value chains, taking into account comparative advantages of each locality or region, with a view to further supporting and connecting domestic supply chains in order to promote Vietnam’s integration into global value chains in a more efficient manner, specifically as follows:

+ The northern midlands and mountainous region: To bring into full play natural resource and mineral advantages and efficiently develop mining establishments in association with the deep processing of assorted minerals; to develop the agricultural and forest product processing and fertilizer and chemical production industries.

+ The Red River delta: To concentrate on developing a number of modern and hi-tech industrial production sectors, electronics industry, automobile manufacturing industry, and supporting industries.

+ The northern and south central coast: To improve the development efficiency of economic zones, and complexes of oil refinery, petro-chemical, chemical, metallurgy and automobile manufacturing and assembly industries; to rapidly and synchronously develop clean energy and renewable energy; to develop the agricultural and aquatic product processing industry and raise the efficiency of the East-West economic corridors.

+ The Central Highlands: To concentrate on developing the large-scale bauxite exploitation and processing industry and aluminum processing industry; to form linkage chains in production, processing, preservation and distribution activities, thereby building agricultural product brands on the international market; to attach importance to the development of renewable energy.

+ The southeastern region: To concentrate on developing electric, electronic, textile-garment and leather-footwear products; to develop the industrial chain of Moc Bai-Ho Chi Minh City-Cai Mep-Thi Vai port in association with the Trans-Asia economic corridor.

+ The Mekong River delta: To concentrate on developing the agricultural and aquatic product processing industry, linking production with outlet markets and building product brands; to develop renewable energy.

+ The coastal area: To concentrate on developing a large-scale industrial production in coastal economic zones, attaching importance to such heavy industries as steel and chemical production, deep processing of such minerals with great potential and reserves as iron ores, titanium, etc.; to prioritize the development of ship building and repair, oil refinery, petro-chemical industry, exploitation of oil and gas and other marine mineral resources, renewable energy and new marine economic sectors; to concentrate on building and multiplying models of coastal economic zones and eco-industrial parks together with the formation and development of urban centers and development of strong marine economic centers in association with environmental protection.

d/ To form, and improve the competitiveness of, domestic industrial enterprises, particularly large-sized ones in industries that are competitive on the regional and global markets and play the role of leading the development of the industry and trade sector; to improve the ability of small- and medium-sized industrial enterprises to join global value chains; to consolidate business connections and linkages among enterprises, particularly between small- and medium-sized enterprises and large-sized and multi-national enterprises.

dd/ To promote the development of local industries; to intensify industrial extension activities to promote the development of industrial and cottage industry production, thus contributing to building a new-style countryside and restructuring the economy toward industrialization and modernization; to concentrate on supporting the development of tech-demo models; to transfer technologies and apply advanced machinery and scientific and technical advances to the industrial and cottage industry production; to intensify the provision of support for the development of prominent rural industrial products; to intensify the provision of consultancy for development of rural industries; to promote the role and raise the performing capacity of industrial extension organizations from the central level to local levels; to heighten the role of and encourage localities in investing their resources in the implementation of policies, programs and activities to support industrial enterprises in conformity with relevant regulations and local socio-economic conditions.

2. Regarding the restructuring of the energy industry

a/ To development the energy industry in a rapid and sustainable manner and one step ahead the national socio-economic development; to firmly assure the national energy security; to intensify cooperation in development of external supply sources and diversified development of domestic supply sources; to build complete and modern energy infrastructure facilities; to encourage the private economic sector and the FDI sector to participate in energy development; to strive for the target that by 2030, the total primary energy supply will reach 175-195 million tons of oil equivalent (TOE) and the total final energy consumption will reach 105-115 million TOE.

b/ To restructure energy sources toward synchronous and rational development and diversification of types of energy; to prioritize the exploitation and efficient use of renewable energy, new energy and clean energy sources; to exploit and optimally and economically use domestic fossil fuel sources, attaching importance to objectives of stability and regulation and satisfaction of national energy reserve requirements; to intensify the prospecting and development of new types of clean energy; to ensure the ratio of renewable energy to the total primary energy supply of 15-20% by 2030.

c/ To form the system of complete, competitive and transparent energy markets with diverse ownership forms and business methods, with the participation of all economic sectors, particularly the private economic sector, according to an appropriate roadmap; to resolutely eliminate the state subsidy regime, monopoly and unfair and untransparent competition in the energy industry, proceeding to apply market prices to all types of energy.

d/ To form and develop energy centers, particularly renewable energy centers in regions and localities with advantages in association with assurance of the region-based supply-demand balance; to promote the development of investment projects on energy storage systems for optimal system operation and incorporation of renewable energy in the general energy system in order to stabilize the energy supply and demand and ensure distribution of electricity to rural, mountainous and border areas and islands.

dd/ To develop complete, modern and sustainable energy infrastructure facilities up to the ASEAN’s advanced level; to attach importance to building regionally connected infrastructure facilities for energy import and export and find strategic partners for realizing the objectives of long-term energy import and investment in development of overseas energy sources.

e/ To prioritize the development of the industry for manufacturing energy machinery, equipment and technologies, particularly renewable energy ones; to step by step master modern technologies, proceeding to domestically manufacture majority of energy equipment, particularly renewable energy production technology, electricity storage technology, and technology for carbon sequestration and efficiency.

g/ To ensure economical and efficient energy exploitation, distribution and use; to strive to save as much as 7% of total energy consumption by 2030 compared to the normal energy development scenario.

h/ Regarding the power industry

- To restructure the power industry toward modernity and conformity with international standards and Vietnam’s practical conditions; to ensure the electricity supply-demand balance in line with the national socio-economic development plan in each period; to ensure safe, reliable and efficient operation of the national power system; to organize the strict and effective implementation of the power industry’s development master plans and plans.

- To develop the power industry’s supply chain toward synchronism from the stages of development of power sources, power generation, power transmission to the stage of distribution in order to meet development requirements of the power system and electricity market; to accelerate the investment in and commissioning of power generation and power transmission grid projects.

- To rapidly and sustainably develop power sources with reasonable structure and distribution, ensuring safety, reliability, stability and diversity; to attach importance to increasing the availability factor and appropriate standby power, thus meeting environmental protection and sustainable development requirements; to mobilize all social resources for investment in development of the power industry; to promote investment in building power plants using municipal garbage, biomass and solid wastes while paying attention to environmental protection and development of circular economy; to strive for the target that by 2030, the total design output of power sources will reach 120,995 MW-145,930 MW (excluding rooftop solar power and combined heat and power sources).

- To improve the competitive power wholesale market based on its approved design; to complete legal and infrastructure preparations for the competitive power retail market, implementing on a pilot basis the mechanism for power purchase and sale directly between power plants and electricity users from now to 2025.

- To study and carry out the separation of power distribution activities (natural monopoly) from power retail activities (competitive) in order to improve transparency and efficiency in the field of electricity.

- To renovate power retail prices to suit different levels of the power market and match power generation and wholesale prices, aiming to efficiently and economically use power; to clearly break down expenses for work items in support of remote, deep-lying and border areas and islands; to formulate and promulgate the power generation price bracket.

- To complete the feasibility study of power projects I and II in Central Vietnam and Dung Quat power projects I and III, ensuring their implementation progress conformable with that of the upstream projects.                    

i/ Regarding the oil and gas industry

- To restructure the oil and gas industry according to complete supply chains with high connectivity for the 5 core fields, including oil and gas prospecting, exploration and exploitation; power industry; gas industry; oil and gas processing industry; and high-quality oil and gas services.

- To develop the oil and gas industry in a balanced manner from the upstream to downstream; to modernize and accelerate the oil and gas prospecting, exploration and exploitation; to evaluate potential, efficiently exploit and ensure safety and sustainable development of minerals on the continental shelf and islands; to promote the development of petro-chemistry and deep processing to create new products from oil and gas and develop oil and gas services; to ensure that oil refinery facilities will meet at least 70% of the domestic demand, striving to reach a strategic petrol and oil stock level equivalent to no less than 90 days of net imports; to step up the prospecting and development of new energy and clean energy sources, such as methane hydrate, hydrogen, low-carbon fuels, wave and tidal energy, etc.

- To prioritize the development, exploitation and use of natural gases, ensuring adequate capacity to import liquefied natural gas (LNG) to serve the domestic demand; to accelerate the organization of the chain of LNG-fired power projects in Thi Vai (Ba Ria Vung Tau province) and Son My (Quang Ngai province).

- To accelerate the implementation of key gas projects such as Lot B and Ca Voi Xanh (Blue Whale) gas-power projects in order to supply fuels for power generation in the Southwestern region, Central Vietnam and adjacent areas through 2025 and subsequent years, thereby assuring the national energy security and contributing to safeguarding the national sovereignty, seas and islands.

k/ Regarding the coal industry

- To restructure the coal industry on the basis of exploitation, processing and economical and efficient use of the country’s coal resources in association with rational import and export administration, thereby assuring the energy security and meeting the domestic market demand for coal, especially for power generation and production sectors; to step by step transform the coal market into a complete competitive market in conformity with practices of the international market.

- To intensify the search for markets and import coal sources, ensuring rational coal import and import and export of only coal categories not yet needed for domestic consumption, thereby preventing shortage of coal for power generation and households’ consumption and assuring the energy security in conformity with Vietnam’s international commitments on climate change; to promote investment in offshore coal exploration and exploitation.

- To intensify technological renewal in coal exploration activities in order to increase the proven coal reserve and upgrade the existing coal reserve at home by the methods of evaluation and calculation according to domestic standards in combination with international standards for higher reliability; to invest in the research and application of coal processing technologies in order to produce appropriate coal categories to meet the domestic coal consumption demand; to reduce the coal loss rate in underground mining and open-cast mining, thereby increasing the coal recovery ratio.

3. Regarding the restructuring of import and export

a/ To prioritize the development of export of goods items of large export volumes and high competitiveness (electronic appliances, textile and garment, leather and footwear, farm produce, wood furniture, etc.) in association with diversification and improvement of quality of exported products; to increase the proportions of exported goods with high deep-processing and hi-tech contents, added value and localization rate, meeting quality and sustainable development standards of assorted markets, specifically as follows:

- For fuels and minerals: To gradually reduce export of important minerals, including also ore concentrates.

- For agro-forestry- fisheries products: To improve productivity, quality and added value, expand outlets and build brands of Vietnamese goods; to restructure exported goods toward deep processing, high quality and hi-tech products; to raise the capability to meet food quality, hygiene and safety regulations and standards, and social responsibility, environmental, low-carbon emission and labor standards.

- For the processing and manufacturing industry’s goods: To continue boosting export in order to efficiently bring into full play the market potential in association with export restructuring with products having high technological contents and localization rate of products and meeting quality and sustainable development standards of assorted markets; to increase export market shares of domestic enterprises; to strive for the target that by 2030, the export proportion of the processing and manufacturing industry’s goods will reach around 90% and that of medium- and hi-tech goods will reach around 70%.

- For new groups of goods: To review new goods items with low export turnover at present but showing a potential of high growth rate in the near future in order to adopt development promotion policies to help create export breakthroughs, such as export of Halal products to the Islamic markets, Kosher products to Jewish markets, fresh fruits to the European and US markets, in addition to green, circular and environment- and climate-friendly goods and environmental and low-carbon goods, etc.; to strive for the target that by 2030, there will be around 10 more groups of products reaching an export turnover of USD 1 billion.

b/ To diversify export markets for reducing dependence on certain markets and mitigate adverse impacts of trade conflicts; to attach importance to developing export based on transboundary e-commerce and foreign distribution systems, specifically as follows:     

- For the Asian and African markets: To maintain the export growth rate higher than the import growth rate and control trade deficit from the Asian markets and for the processing and manufacturing industry’s goods and farm produce, etc., thus creating a breakthrough in expanding potential export markets with Halal products exported to the Islamic markets, Kosher products to Jewish markets (India, other southern Asian countries and the Middle East); to promote the quick and strong shifting to official-quota trade with the bordering countries in association with the enhanced market inspection and control in order to prevent smuggled goods, counterfeit goods, inferior-quality goods, and trade frauds; to strive for the target that the proportion of goods exported to the Asian markets will account for 46-47% of the total export value by 2030.

- For the European market: To boost exports to this market in order to firmly maintain and increase export market shares in Germany, France, the Netherlands, England, Italy, Switzerland, Spain and the member states of the Eurasian Economic Union; to boost export of goods items with high technological contents, manufactured or processed goods with high added value, green and circular goods, environment- and climate-friendly goods, environmental goods, low-carbon goods, etc., in order to bring into full play the tax-related advantages of the EVFTA and UKVFTA; to boost the export of food, rice, textile and garment, leather, wood furniture, aquatic products, electronic appliances and cell phones of higher quality and standards to the EAEU countries’ markets; to promote cooperation in processing, manufacturing, high technology and energy industry, such as clean energy, renewable energy, textile and garment, electronics, food processing, automobile and means of transport, etc.; to strive for the target that by 2030, the proportion of goods exported to the European market will account for 18-19% of the total export value.

- For the American market: To continue consolidating and increasing export market shares in the US, Canada and Mexico for Vietnamese groups of goods with export advantages, particularly textile and garment, leather and footwear, electric and electronic appliances, wood furniture, mechanical engineering products, green and circular goods, environment- and climate-friendly goods, environmental goods, etc.; to boost the export of footwear, backpacks, handbags, farm produce, handicraft and fine-arts articles, textile and garment, electric and electronic appliances, mechanical engineering products, electric motors, equipment and machinery, and wood furniture to the Latin American market; to strive for the target that by 2030 the proportion of goods exported to the American market will account for 33-34% of the total export value.

c/ To diversify import markets, particularly those for materials and auxiliary materials to serve production, thereby reducing dependence on only one market; to step by step improve the trade balance with the markets with which Vietnam currently has a trade deficit; to enhance the flexible and efficient import management in order to better guarantee lawful and legitimate interests of the country in conformity with its international commitments; to effectively control trade frauds and improve the voluntary compliance of enterprises in conformity with Vietnam’s international commitments; to prioritize import of domestically unavailable machinery, equipment and input materials created from high and advanced technologies that cannot yet be produced at home; to attach importance to importing from the European Union and the US advanced technologies through the transfer of technologies and technological know-hows.

d/ To build the export capacity for localities and diversify export markets; to develop new export regions in association with the process of production restructuring and reassignment from economic centers to buffer zones for labor-intensive export sectors, thereby bringing into play advantages in terms of labor and low production costs.

dd/ To form the system of large and globally competitive export enterprises; to develop brands of Vietnamese goods in foreign countries; to strive for the target that by 2030, the export ratio of domestic enterprises will account for 35-40% of the export value and there will be 2-3 Vietnamese enterprises having brands and global competitiveness for every key line of export commodity lines.

e/ To focus on creating favorable conditions and reducing trade expenses by synchronously and efficiently developing the system of trade-serving infrastructure facilities, including transport, logistics and digital infrastructure facilities, in order to optimize production-trade connection, thereby turning Vietnam into a production and logistics center of the region; to strive for the target that by 2030, logistics costs will be reduced to be equivalent to 10-15% of the GDP and the country’s logistics performance index (LPI) will be among the world’s top 50.

4. Regarding the restructuring of the domestic market

a/ To rapidly and sustainably develop the domestic market in connection with the import-export market in order to ensure the market space for domestic production sectors and increase the economy’s internal strengths on the basis of boosting the domestic consumption, developing Vietnamese goods’ brands, and exploiting the advantage in terms of population size with the rapid growth of the middle class and young and dynamic consumers; to prioritize development of new economic models such as sharing economy, night economy, tourist economy, green economy, circular economy, digital economy, e-commerce, etc.; to strive for the target that the added value of domestic trade will grow at an average rate of 9-9.5%/year.

b/ To build and develop a complete and modern domestic trade infrastructure system; to radically change the distribution system into modern forms of distribution, giving priority to the modernization of the distribution system in rural and mountainous areas; to encourage enterprises, commercial cooperatives and households to renovate their operation methods toward modernity and professionalism; to strive for the target that by 2030, goods distributed via the modern retail system and via e-commercial channels will account for 38-42% and 10.5-11%, respectively, and that the proportion of retailed goods of the domestic economic sector and the FDI sector will account for around 85% and 15%, respectively.

c/ To concentrate on supporting the establishment and development of a number of domestic wholesale and retail sale groups with big brands and regional competitiveness based on their own modern distribution systems, general warehouses, logistics centers and goods supply sources in order to ensure the supply-demand stability and improve the price-based competitiveness in association with the enhanced competition management and monopoly prevention; to encourage Vietnam’s major distribution groups to make offshore investment.

d/ To consolidate production-market linkages based on supply chains in order to ensure stability of goods supply and demand, prices and origin; to uniformly perform the quality management of domestically circulated goods based on regulations, standards and technical regulations in conformity with international practices; to apply the tracing of origin of products and goods; to form and develop supply chains of domestic consumer goods and prioritize the development of supply chains of essential farm produce and foods.

dd/ To develop and diversify consumption centers in all regions and geographical areas throughout the country, associating the development of shopping centers with tourist centers and geographical areas where industrial production and service activities are carried out; to prioritize the development of markets in rural and mountainous areas.

e/ To develop e-commerce into an important distribution channel that can actively support the sale of goods, particularly farm produce and consumer industrial goods; to form large e-commerce groups with national brands and global competitiveness; to prioritize the development of the system of internationally connected e-commerce exchanges; to narrow down the e-commerce development gap between major cities and other localities; to strive for the target that the ratio of business-to-consumer (B2C) e-commerce turnover to the total goods retail sales and consumer service turnover will reach 10% by 2025 and 13% and 2030, and that the average annual growth rate of goods retail sales via e-commerce channels will be 20-25%.        

g/ To build and improve the system of institutions and regulations on trade remedies, competition management and consumer protection in conformity with Vietnam’s international commitments; to raise the effectiveness of the protection of consumer rights from the central to local levels; to raise the trade remedy capacity and efficiently implement trade remedies and combat the circumvention of trade remedies, origin abuse and frauds in order to protect lawful rights and interests of domestic production sectors and market in the context of fiercer external competition.

b/ To renew methods and increase efficiency of operation of the market surveillance force nationwide; to attach importance to building a clean and strong market surveillance force; to facilitate the close coordination between the market surveillance force and other functional forces and trade associations to ensure the highest effectiveness of smuggling, trade fraud and counterfeit goods combat; to step up digital transformation in the market surveillance work.

5. Regarding international economic integration

a/ To step up international economic integration in association with the growth model renewal and economic restructuring toward consolidation of macro-economic foundations and internal strengths of the economy; to regard domestic enterprises as the center for economic cooperation and integration and flexible and effective response to external adverse shocks; to implement the economic integration in a focused and selective manner, prioritizing international cooperation in transfer of modern and green technologies, promoting the development of Vietnam’s hi-tech industrial sectors and fields and priority sectors and fields such as energy industry, deep processing of agro-forestry-fisheries products, electronics, green industry, environmental industry, etc.; to further facilitate Vietnam’s participation in the global production networks and value chains.

b/ To heighten the multilateral economic cooperation work; to take the initiative in actively joining multilateral economic institutions, thus contributing to the process of shaping regional and global structures; to actively participate in building and efficiently take advantage of international cooperation frameworks to which Vietnam is a contracting party, such as WTO, ASEAN, ASEM, APEC, and Mekong Sub-region cooperation, in order to heighten Vietnam’s role in the region and global communities.

c/ To harmoniously combine the outward integration with inward integration toward concentration of efforts on realizing Vietnam’s international economic integration commitments with a view to reforming the economy into a full-fledged market economy; to improve international integration capacity for sectors, fields, localities and enterprises in order to efficiently exploit benefits from the integration; to combine international integration with the implementation of socio-economic development strategies of the country, sectors, fields, localities and enterprises, thus ensuring sustainable development.

d/ To step up comprehensive and sustainable international integration based on intensified international cooperation on environmental protection, response to climate change and solution of social issues such as labor, trade union, etc.; to take the initiative in actively formulating and efficiently take advantage of international rules and regulations and operations of the regional and global economic communities; to propose cooperation initiatives and mechanisms on the principle of mutual benefit; to consolidate and heighten the economic role in the regional and global communities with a view to reducing the country’s dependence on certain markets and partners.  

IV. IMPLEMENTATION SOLUTIONS

1. Continuing to improve institutions, policies and the business environment to serve as a driving force for the reform of the growth model and acceleration of industrialization, modernization and digitalization in order to improve productivity and quality of the industry and trade sector

To focus on formulating and improving the system of policies and laws of the industry and trade sector to be consistent, synchronous, feasible, public, transparent and stable, guaranteeing the lawful and legitimate rights and interests of enterprises and the people; to ensure their conformity with new circumstances and international commitments, thus promoting innovation and creating a highly competitive business environment.

a/ In the industrial sector

- To build a legal system to institutionalize the Party’s guidelines for use as a basis for promoting industrial development activities from the central to local levels, effectively implementing the coordination of tasks and decentralization of powers by sector, region and territory and among localities in industrial development; to formulate and promulgate laws to serve as a legal basis for the development of industries, particularly foundation industries; to create a legal framework for smart production development and sandboxes.

- To formulate criteria for restructuring the list of foundation industries and priority industries for the period up to 2030 and 2045 so as to ensure their uniformity and fewer number with a view to focusing on formulation of priority mechanisms and policies and allocation of resources, particularly investment resources for focused and selective development.

- To review and formulate strategies, plans and schemes for development of industries and in each locality through 2030, with a vision toward 2045; to incorporate industrial development master plans in national, regional and local master plans based on development advantages of the country, regions and localities.

- To review and formulate mechanisms and policies on the development of specialized industrial clusters; to prioritize industrial development in regions and localities where industrial clusters have been initially formed or which have advantages in terms of transport, geo-economics, natural resources, labor and logistics, and are capable of becoming growth drivers and promoting Vietnam’s participation in global value chains.

- To formulate policies to promote the development of industrial support services, intermediaries providing industrial consultancy services on investment, finance, market, trade promotion, and industrial technical regulations and standards, etc., from the central to local levels; to build and upgrade networks and portals on industrial consultants in order to assist enterprises in applying modern technologies and carrying out innovation and digital transformation in production; to build technical centers to support the industrial development in regions and localities.

- To continue reviewing, amending or supplementing existing regulations or promulgate new regulations on management of cottage industry zones in localities and mechanisms and policies to support investment in the development of cottage industry zones in the direction of encouraging enterprises to master infrastructure facilities of cottage industry zones, thereby intensifying the mobilization of social resources for investment in development of cottage industry zones, and properly dealing with environmental and climate change issues of cottage industry zones.

b/ In the energy sector

- To renew mechanisms and policies on development of a synchronous, interconnected, modern and efficient energy market; to prioritize investment in the development of synchronous, modern and sustainable energy infrastructure facilities, particularly regionally-connected infrastructure facilities for energy import and export; to develop energy storing systems; to take the initiative in seeking strategic partners to realize long-term energy import goals and make offshore investment in energy resources.

- To complete policies on development of clean energies, renewable energies, smart energies and the infrastructure system for development of renewable energies and clean energies, ensuring energy security; to promote the consumption of clean energies and renewable energies, especially in the industry and transport sectors; to study and issue guidelines on and promote the development of new energy sources such as hydrogen, geothermal energy, and gas-fired power generation, etc.

- To review and renew the national policy on energy efficiency and conservation; to develop and apply mandatory standards and technical regulations together with sanctions to ensure efficient energy use applicable to sectors, fields and products with a high energy consumption level; to step by step shift from the “voluntary” mechanism to the “mandatory” mechanism for energy efficiency and conservation for a number of sectors like industrial production, trade and services, transport, and agriculture; to add regulations on promotion of development of the form of energy service company (ESCO); 

- To accelerate the formulation and approval and organize the effective implementation of national energy master plans in accordance with the Planning Law, including the national energy development master plan, the national electricity development master plan and the national master plan on petroleum and gas reserve and supply infrastructure.

- To study and complete policies to regulate domestic prices of energy commodities (electricity, coal, petrol and oil) under the State-regulated market mechanism, ensuring correct and adequate calculation of actual production and business costs with reasonable profit levels for sustainable development of energy manufacturing and trading enterprises.

- To intensify the digital transformation in the energy industry; to digitalize energy access and customer service provision activities as well as energy system management and operation activities.

- For the power industry:

+ To study and promulgate a mechanism for management of the implementation of power projects in order to tighten the discipline in the implementation of power development master plans and plans, and policies on development of renewable energy projects in Vietnam.

+ To promulgate regulations, technical regulations and standards on construction and development of rooftop solar power projects; particularly for rooftop solar power projects with an output of 100 kWp or more, it is required to install remote monitoring and control systems connected to the dispatch system of the Vietnam Electricity (EVN) for project owners to coordinate with one another in operating the power system.

+ To complete regulations on the mechanism for adjustment of average power retail prices, power retail price bracket, power generation price bracket, and asset delivery and receipt for power works.

+ To study and propose formulating a mechanism to allow rooftop solar power projects with an output of 100 kWp or more to be connected to the power system and monitored remotely.

+ To review and formulate mechanisms and policies on investment in construction of power transmission systems that are not affected by the state monopoly on power transmission.

+ To give priority to the power industry toward maximizing and automating networks for efficient and economical power supply.

- For the oil and gas industry:

+ To build and complete the legal system on oil and gas in order to eliminate inadequacies and problems, thereby creating a more favorable legal framework for investors and contributing to improving the investment environment in the petroleum sector; to enhance the spirit of autonomy, self-responsibility and transparency under the market mechanism for the operation of state enterprises in the oil and gas industry.

+ To study and promulgate policies to attract investment in petroleum development in deep-water and offshore areas, etc.

- For the coal industry:

+ To formulate policies to promote technological innovation in the coal exploration, exploitation and processing in order to diversify coal products for supply to domestic economic sectors and exploit and efficiently and economically use the country’s coal resources.

+ To review and complete existing mechanisms and policies to suit practical conditions of Vietnam and international practices in order to support and facilitate enterprises’ investment in overseas coal exploration and exploitation, prospecting and diversification of coal sources for import into Vietnam to meet the domestic use demand.

c/ In import and export

- To review and complete framework policies and laws on import and export in order to effectively exploit the FTAs that the country has signed; to organize the effective implementation of the Strategy for goods import and export through 2030 and the Plan of Action to implement the Strategy; to formulate strategies, plans and schemes for development of export commodity lines and markets.

- To complete policies to promote, facilitate and simplify customs procedures for issuance of certificates of origin, and increase the use of e-customs procedures, and simplify administrative procedures for issuance of certificates of origin.

- To formulate and complete policies and legal frameworks to facilitate import and export via digital platforms, particularly cross-border e-commerce channels, in association with ensuring information security and data protection in conformity with international practices and management requirements of Vietnam.

- To adopt policies to promote the export of Vietnamese goods through overseas distribution systems, particularly retail distribution systems for Asian goods and Vietnamese goods overseas; to increase support for connection between exporters and international distribution groups; to give priority to providing support for Vietnam’s large distribution enterprises to make offshore investment together with overseas distribution of Vietnamese goods.

- To renew trade promotion methods through intensifying the application of information technology and digital transformation, and increasing outlets for products through the digital trade promotion ecosystem; to intensify activities to promote Vietnam National Brands and Vietnamese commodity brands; to support enterprises in building and developing brands; to formulate, and organize the implementation of, import promotion programs in order to facilitate the diversification of import markets and goods items, and help enterprises access suppliers, and import markets and goods items, particularly the import of machinery, equipment and input supplies created with high technologies and advanced technologies that are not yet available in the country; and raw materials, materials and machinery serving the domestic production.

- To build the capacity for trade support organizations for small- and medium-sized enterprises from the central to local levels; to expand, and improve the operational efficiency of, Vietnam’s overseas trade-affairs agencies and trade promotion offices; to build networks and portals on trade promotion consultants.

- To further support the capacity building for enterprises, particularly small- and medium-sized enterprises, so that they can meet standards and regulations of export markets and meet rules of origin to efficiently take advantage of signed FTAs in association with capacity building for internationally accredited organizations certifying products’ satisfaction of international standards; to support enterprises in proactively responding to and effectively handling foreign trade-remedy investigation cases for exported goods; to build a database on markets and goods items and support for export promotion connection for enterprises.

- To formulate and complete policies to boost official-quota and contractual import and export for border trade in combination with intensifying inspection, control and trade fraud combat.

- To develop and effectively implement import management tools, particularly those for import of non-essential goods, domestically available goods, and outdated machinery, equipment and technologies likely to harm the environment and consuming a lot of energy and materials; to review and improve regulations and standards on management of imported goods.

- To formulate and promulgate mechanisms and policies to prioritize the development of complete and highly connected logistics centers; to prioritize the construction of a number of big logistics centers in key economic regions in order to create a driving force for the development of Vietnam’s supply chains, thereby turning Vietnam into a regional logistics hub; to support domestic logistics enterprises in improving their competitiveness.

- To study and proactively formulate plans on mitigation of negative impacts from shocks, particularly commercial conflicts between countries and impacts of the COVID-19 pandemic on Vietnam’s export activities; to solve the problem of trade imbalance with major partners.

- To study and promulgate policies to support localities in developing export and gradually narrowing the gap with major economic centers, particularly rural and mountainous areas.

d/ In the domestic market development

- To review and complete policy and legal frameworks to promote the market development regarding such new economic models as sharing economy, nighttime economy, tourism economy, green economy, circular economy, digital economy, etc., in order to stimulate demand and scale up the domestic market.

- To formulate and complete policies to support the production-market connection; to develop goods supply chains to ensure supply-demand stability for domestically produced goods at competitive prices and satisfying quality standards, with a view to meeting diverse and increasing shopping needs of consumers in Vietnam; to establish a digital system for tracing of origin of domestic goods in order to heighten the responsibility of enterprises for quality of goods put for sale in the market; to intensify the application of the digital system for tracing of origin of agricultural and food products through a modern distribution system.

- To promulgate mechanisms and policies to promote the development of large and multi-purpose shopping centers to serve customers in the region and around the world; to focus on attracting and calling for investment in the development of a number of types of key commercial infrastructure facilities such as the system of regional-level wholesale markets associated with logistics centers; to promote investment in the development and modernization of commercial infrastructure systems in deep-lying, remote and mountainous areas and on islands; to support and encourage enterprises, commercial cooperatives and business households to renovate their operation methods toward modernity and professionalism.

- To formulate and improve the legal framework, mechanisms and policies to prioritize e-commerce development; to promulgate policies to encourage economic sectors and enterprises to invest in the field of building digital technology platforms for e-commerce and developing logistics infrastructure services for e-commerce; to review and improve policies and laws on e-commerce in line with digital economy development trends and commitments under FTAs, thereby allowing sandboxes for new business models, products and services in e-commerce, developing cross-border e-commerce, and promoting online trade, etc.; to support and promote the widespread application of e-commerce in enterprises and the community; to adopt policies to support localities in developing e-commerce so as to narrow the gap with major cities.

- To continue reviewing and improving the legal system on market surveillance, especially in the resolution of such emerging issues as trade on digital platforms, e-commerce, etc.; and regulations on competition and protection of consumer rights; to review, amend, supplement and complete legal documents on management of multi-level marketing activities; to intensify inspection, investigation, and handling of violations of the laws on competition, protection of consumer rights and multi-level marketing.

- To review and improve the legal framework on trade remedies so as to create a fair competitive environment, protect lawful rights and interests of enterprises, production and export activities and the domestic market in the new context.

dd/ Regarding international economic integration

- To study and propose considering negotiation and conclusion of, and advocating for, ratification and then implementation of trade agreements, economic partnership agreements and partnership agreements in a number of specific fields with markets with potential for economic-trade development, particularly countries and territories with competitive advantages that are complementary for Vietnam.

- To renew bilateral, multilateral, regional and sub-regional development cooperation approaches in order to attract more investment in the processing and manufacturing industries, high technology, environmentally friendly technology and energy industry in conformity with Vietnam’s development potential and orientations and foreign investors’ interest; to promote connectivity and diversification of supply chains for Vietnam; to enhance the mutual recognition of standards, technical regulations and quality and safety management systems to further facilitate Vietnam’s export activities, particularly export of agricultural and aquatic products; to deal with trade barriers and problems in trade relations.

- To formulate a mechanism for coordination among ministries, sectors and localities in the process of formulating plans and organizing the implementation of international economic integration commitments in order to efficiently utilize strengths of each sector or locality in the international integration.

- To formulate, and organize the implementation of, programs and plans of action for the implementation of FTAs and commitments and cooperation programs on international integration to focus on fully implementing international commitments which Vietnam has made toward more balanced import and export activities, market stability and sustainability, and improved efficiency of the whole economy.

2. Efficiently mobilizing resources for the restructuring of the industry and trade sector

a/ Renovating, and improving the efficiency of, investment work

- To continue restructuring public investment in the industry and trade sector in the direction of making focused and selective investment in order to improve the efficiency of investment capital use and promote the leading role of public investment.

- To attract more investment from the non-state economic sector in large and nationally important projects, ensuring regional and inter-regional connectivity, creating linkages and spillover effects and increasing growth momentum in such key industries and sectors as foundation industries, hi-tech industries, environmental industry, clean energy, commercial infrastructure, and e-commerce; value chain-based investment projects and industrial clusters, etc.

 - To specify criteria and conditions on investment attraction for uniform application from the central to local levels to select and prioritize attraction of FDI in industry, energy and commercial infrastructure in accordance with the development master plans and orientations for sectors, fields and localities; to prioritize FDI projects that set clear orientations on use of domestically produced components and making commitments on technology transfer and on-the-job human resource training, entering into production joint-ventures and associations with domestic enterprises, ensuring the full performance of corporate social responsibility (CSR); to invest, set up head offices and establish research and development (R&D) centers and innovation centers in Vietnam, especially in the development of processing, manufacturing and hi-tech industries.

- To renew investment policies in order to attract, and effectively catch up with the trend of movement of, investment in the industrial sector, particularly industrial commodity supply chains in the world and in the region, and investment flows moving out of existing global industrial production centers due to impacts of trade conflicts and the COVID-19 epidemic; to study and formulate regulations to remedy transfer pricing, “hidden” investment and “shadow” investment, which are at risk of causing environmental pollution and high emissions for FDI in the industrial sector.

- To increase incentives and create more favorable conditions for Vietnamese enterprises to implement offshore investment projects in the fields of industry and energy in appropriate territories, particularly in ASEAN countries.

- To intensify attraction and diversification of resources of the private sector for investment in power source and grid development; to diversify capital sources and channels of capital mobilization (bank loans, aid, stock market, bond market, etc.) in order to fruitfully attract funding sources at home and abroad for renewable energy development.

b/ Flexibly and effectively implementing financial and monetary instruments

- To review and simplify processes and procedures for small- and medium-sized enterprises to access financial and credit sources from funds, programs and schemes on support and incentives for enterprises having investment projects on environmental protection, and circular economy, green economy and low-carbon economy development, and in priority sectors and fields.

- To study and complete the legal framework and use a sandbox facilitating the development of financial technology (fintech) companies and intermediary financial companies/institutions in order to make breakthroughs in providing efficient financial services to support the development of enterprises in priority industries and fields of the industry and trade sector such as innovation, digital transformation and startup activities.

- To study and propose preferential financial and credit policies, and credit expansion programs to promote investment in such priority industries and fields as foundation industries, hi-tech industries, supporting industries, environmental industry, low-emission industries, etc.; and investment projects based on global value chains, investment projects based on industrial clusters, and supply chains based on distribution systems, and projects of startup and digital transformation enterprises with export potential or engaged in direct export activities.

- To promote the development of green credit and green banks, thereby increasing the proportion of bank loans invested in renewable energies, clean energies, low-carbon production and consumption industries, environmental industry, and export goods items.

- To complete the system of cashless payment, e-documents and paperless trade in order to support the development of e-commerce, cross-border trade and new business models on digital platforms.

- To study and promulgate mechanisms and policies to facilitate the development of consumer credit to expand domestic consumption in association with enhancement of the risk management.

c/ Strongly developing science and technology, innovation and digital transformation in order to make breakthroughs in the improvement of productivity, quality, efficiency and competitiveness of the industry and trade sector

- To formulate and improve policies and legal frameworks for establishing a favorable policy environment to promote science, technology, innovation and digital transformation, smart manufacturing industry, business models and products and services based on digital platforms, supply chains, value chains, etc.

- To formulate science and technology programs and tasks in combination with development objectives of the industry and trade sector, enterprises’ technological innovation and upgrading needs, develop value chains of products and create high added values; to prioritize the implementation of key science and technology programs on improvement of productivity and quality in industries; to improve the competitiveness of the foundation industries to meet the economy’s demand for basic capital goods (mechanical engineering, metallurgy, chemicals, fertilizers, materials, supporting industries, etc.), environmental industry, energy industry, e-commerce, and industrial clusters; to develop digital products and services, etc.

- To establish and implement systems for standardization, certification, and standard conformity and regulation conformity assessment from the central to local levels, between sectors and fields in harmony with international practices (inspection, testing and grant of certification for products and organizations); to promote the development of, and adopt policies to support capacity building for, internationally accredited domestic independent certification bodies.

- To restructure public science and technology organizations; to increase focused investment to form public science and technology organizations with strong potential, capable of solving important and core scientific and technological issues that are decisive to the competitiveness and playing the leading role in the domestic production; to enhance applied research and commercialization of research outcomes.

- To renew the mechanism for management of scientific and technological research and innovation activities toward focusing on outcomes, facilitating and promoting the participation of individuals and organizations, particularly enterprises, in science and technology activities of the industry and trade sector; to step up the implementation of the mechanism under which the State makes order placements; to adopt mechanisms to promote the development of partnership between domestic research institutions and leading universities and research institutes in the world so as to promote innovation and research and development; to simplify, and enhance access to, public financial sources (science and technology development and innovation support funds, etc.) concerning scientific and technological development.

d/ Developing high-quality human resources for the industrialization, modernization and transformation of the growth model of the industry and trade sector

- To formulate plans on development of high-quality human resources for the industry and trade sector in each specific period; to prioritize training to improve capacity and qualifications of cadres, civil servants and employees for the digital transformation, innovation, all-round development, circular economy and low-carbon economy.

- To renovate, and improve the quality of, vocational education of the industry and trade sector toward openness and flexibility, meeting the labor demand of technical and hi-tech sectors of the Fourth Industrial Revolution; to drastically change training programs, especially for sectors and fields prioritized for development, and increase the duration of practice; to develop and promulgate a system of training quality standards for all training levels, firstly occupational skills standards up to the ASEAN and international standards.

- To restructure the system of schools in the field of technological and technical training; to rearrange, and reduce the number of, schools, dissolve or merge schools in order to increase the capacity of physical and technical foundations and teachers, thereby creating conditions for teaching and learning activities to focus on research, innovation and digital transformation.

- To strengthen connection and promote cooperation between vocational training institutions and enterprises.

dd/ Improving the competitiveness of enterprises

- To study and promulgate motivational policies to consolidate and develop a number of large-scale private economic groups that play the leading role in certain industries, fields or regions, are competitive and capable of participating in regional and global production networks and value chains, particularly in the processing and manufacturing industry, distribution, e-commerce, etc., in tandem with supervision intensification and monopoly combat.

- To support small- and medium-sized enterprises’ participation in industrial clusters and global production chains and value chains; to formulate and implement programs on connection between domestic enterprises and FDI enterprises, thereby creating conditions for chain-leading manufacturing and assembly enterprises and multinational corporations to have their localization strategies, access domestic supporting technology product suppliers, and increase knowledge sharing; to encourage foreign enterprises to regularly and continuously provide on-the-job training for improving professional and technical qualifications of the domestic workforce and acquiring advanced governance models and business modes; to build and develop a network of domestic small- and medium-sized manufacturers in connection with large industrial groups and FDI enterprises.

- To help small- and medium-sized enterprises accelerate their digital transformation, especially in such priority sectors and fields as e-commerce, textile and garment, footwear, food, etc.; to implement programs to support small- and medium-sized enterprises in renewing technology; to apply modern, sustainable, circular and low-emission governance and production models with a view to raising productivity and quality of their sustainable development; to raise the ability of enterprises to satisfy environment, low carbon, social responsibility and labor regulations and standards of export markets.

3. Reforming the organizational apparatus toward promoting decentralization of powers; realizing an e-government in order to improve the management and administration effectiveness and efficiency

a/ Consolidating the state management apparatus of the industry and trade sector

- To review, and promulgate guidelines on, functions, tasks and powers of specialized agencies in charge of industry and trade under People’s Committees of provinces and centrally run cities and People’s Committees of districts, towns, provincial cities and municipal cities in accordance with new regulations on functions, tasks, powers and organizational structure of the Ministry of Industry and Trade.

- To consolidate the national competition authority in order to effectively implement the 2018 Competition Law; to reorganize state management agencies and social organizations from the central to local levels that are in charge of consumer right protection.

- To amend and supplement regulations on functions, tasks, powers and organizational structure of the Vietnam Directorate of Market Surveillance, ensuring the market surveillance force’s suitability to, and raising its operational effectiveness and efficiency in, the new situation.

- To consolidate and improve the model of Vietnam’s Trade Remedies Authority to meet practical requirements, be commensurate with export and import turnover, and effectively support domestic enterprises, particularly small- and medium-sized enterprises.

- To consolidate and renew the organization and operation method of overseas trade-affairs agencies and trade promotion offices; to intensify research and provision of information on overseas trade and investment, especially in potential areas, so as to increase support for overseas Vietnamese enterprises; to encourage enterprises to invest in and develop overseas market research and development offices.

- To complete the system of public non-business units in a streamlined and neatly structured manner to be capable of practicing autonomy and advanced governance, and effectively and efficiently operate; to step up the transfer of autonomy and self-responsibility to public non-business units and transform public non-business units that fully satisfy the law-specified conditions into joint stock companies; to develop the market of public non-business services and attract all economic sectors to provide public services, with a view to shifting from direct provision of public services to order placement.

b/ Carrying out the administrative reform, improving the business investment environment and digitizing the management work of the industry and trade sector

- To synchronously design and put into operation the system for integration and connection of big databases and closely link the information technology application with the administrative reform of the industry and trade sector from the central to local levels.

- To standardize and digitalize business processes, and digitize, integrate and share data among agencies and units; to raise the quality of the implementation of modern single-window and inter-agency single-window mechanisms, and apply forms of inter-agency collaboration in various fields of state management between agencies and units.

- To promulgate policies and solutions to support the digital transformation in the industry and trade sector, and promote the organization of an e-government of the industry and trade sector.

- To raise the quality of the business environment, ensure healthy, fair and transparent competition in line with Vietnam’s international commitments; to continue reviewing, annulling and simplifying administrative procedures, business investment conditions and specialized inspection procedures to ensure uniformity from the central to local levels, promoting decentralization of powers to localities in association with building and maintaining a database on business investment conditions and specialized inspection in the industry and trade sector.

- To enhance the management of the industry and trade sector under technical regulations and standards in conformity with international standards; to promote the use of state management tools mainly by indirect regulation and intensifying post-licensing inspection; to limit the State’s intervention in economic activities in combination with improving the use efficiency of appropriate technologies and big data in the sector management.

4. Strengthening the environmental protection and climate change response, practicing green growth, circular economy, inclusive growth and sustainable development

a/ To review and improve policies and legal frameworks to support the implementation of green economy, circular economy and low-carbon economy models and sustainable production and consumption in order to effectively contribute to realizing the United Nations’ sustainable development goals and Vietnam’s commitments at COP26.

b/ To review and improve national standards and technical regulations on safety, efficiency and conservation of natural resources and energy, climate change and environmental protection in the industry and trade sector; to carry out inspection of machinery and equipment subject to strict requirements on occupational safety, ensure efficiency and conservation of natural resources and energy, and limit emissions; to improve the use efficiency of natural resources and energy in industries.

c/ To build and plan a system of centralized, hi-tech and modern waste treatment zones and plants; to promote investment in the construction of waste treatment plants, and power plants using municipal garbage, biomass and solid wastes in parallel with environmental protection and circular economy development; to prioritize the development of ecological industrial parks and cottage industry zones; to provide more and more consultancy and support for enterprises on solutions to ensure safety and environmental protection in the production process, and improve the quality of coaching in safety techniques for workers; to intensify inspection and supervision of industrial production establishments generating large emission volumes.

d/ To give priority to supporting enterprises in satisfying regulations and standards on environment, labor and low-carbon emissions for exported goods; to develop the export of environmentally friendly products, green products, low-carbon products, etc.; to build information systems and databases on regulations and standards of export markets, particularly information on environment, climate change, labor standards, etc.

To intensify environmental protection in commercial activities; to review and complete the system of instruments and policies on control of import and circulation of goods, machinery and equipment to meet environmental and climate change requirements; to promote the import of environmentally friendly machinery and equipment ensuring efficient use of natural resources and energy.

dd/ To promote green consumption; to adopt policies to support and promote the distribution and consumption of environmentally friendly products, green products, low-carbon products, etc.; to promote the development of green and environmentally friendly stores and supermarkets.

5. Upgrading and improving information systems and databases on management of the industry and trade sector; intensifying information provision and sharing; raising capacity and awareness for stakeholders on the restructuring of the
industry and trade sector

a/ To review, upgrade and synchronize the database system of the industry and trade sector from the central to local levels and in economic regions, ensuring consistency of data of regions and localities with the national data system to serve the monitoring and supervision of, and policy-making for, the development of the industry and trade sector.

b/ To study and build a database on spatial distribution of production and trade chains of Vietnamese industries after the model of value chain linkages, and a database on cross-border trade; to prioritize the building and synchronization of the national energy database and information system; to propose adding statistical indicators on domestic trade and e-commerce to the national statistical system.

c/ To upgrade, build and synchronize portals and database systems on trade, particularly free trade agreements (information on markets, commodities, enterprises, suppliers, distributors, export support organizations, trade commitments, etc.); and warning information about import and export market fluctuations, etc., thus helping enterprises and management agencies search information and ensuring business connection for enterprises; to develop and disseminate market- and commodity-based import and export manuals.

d/ To increase and diversify forms of dialogue between the Government and enterprises and trade associations; to study and submit to competent authorities for promulgation regulations on, and organize, annual public-private dialogue forums in the field of industry and trade, focusing on key and priority issues in the sector restructuring.

dd/ To intensify information and public communication activities; to organize coaching and training courses on capacity building for cadres, enterprises, trade associations and industry and trade support organizations regarding the sector restructuring; to compile manuals on the restructuring of the industry and trade sector.

V. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Industry and Trade shall

a/ Assume the prime responsibility for, and coordinate with ministries, sectors and localities in, organizing the implementation of the Scheme; and coordinate, inspect and supervise the implementation of the Scheme.

b/ Provide provincial-level Departments of Industry and Trade with guidance on the formulation, and coordination in organizing the implementation, of schemes, plans and action programs for restructuring the industry and trade sector.

c/ Summarize and evaluate the annual implementation of the Scheme based on the set of criteria promulgated together with this Decision, report implementation results to the Government and Prime Minister, and propose amendments and supplementations to the Scheme when necessary.

2. The Ministry of Planning and Investment shall

a/ Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and related ministries, sectors and localities in, performing tasks and solutions related to investment; develop industrial parks and economic zones; circular economy and green growth; and perform the tasks provided in the Appendix: List of key tasks for the period through 2030.

b/ Assume the prime responsibility for summarizing, and submitting to competent authorities for assignment, medium-term and annual public investment plans funded by the state budget to ministries and central sectors for the performance of tasks related to implementation of the Scheme.

c/ Coordinate with the Ministry of Finance and Ministry of Industry and Trade in arranging and mobilizing investment capital for the implementation of the Scheme.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and related ministries, sectors and localities in, balancing and including recurrent expenditures in annual state budget estimates to organize the performance of the tasks set forth in the Scheme that are covered by the state budget under current regulations on state budget management decentralization and the Law on the State Budget and guiding documents; and perform the tasks provided in the Appendix: List of key tasks for the period through 2030.

4. The State Bank of Vietnam shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and ministries, sectors and localities in, performing monetary and credit tasks and solutions; and the tasks provided in Appendix: List of key tasks for the period through 2030.

5. The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, performing science and technology tasks and solutions; summarize the list of tasks and annual funds and send them to the Ministry of Finance for synthesis and allocation of annual state budget funds for science and technology non-business activities for carrying out science and technology activities for the implementation of the Scheme.

6. The Ministry of Natural Resources and Environment shall

a/ Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, performing environmental protection and climate change response tasks and solutions.

b/ Assume the prime responsibility for, and coordinate with the Ministry of Finance and Ministry of Industry and Trade in, allocating state budget funds reserved for annual non-business environmental protection activities for carrying out environmental protection and climate change response activities.

7. The Ministry of Agriculture and Rural Development shall

a/ Coordinate with the Ministry of Industry and Trade in performing tasks and solutions regarding the development of the food processing industry and fertilizer and plant protection chemical production; and development of agricultural product markets.

b/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, performing the tasks provided in the Appendix: List of key tasks for the period up through 2030.

8. The Ministry of Education and Training and Ministry of Labor, Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, performing human resource development tasks and solutions.

9. Other ministries and sectors, the Committee for Management of State Capital at Enterprises, the Vietnam Chamber of Commerce and Industry, and trade associations shall, within the ambit of their assigned functions and tasks, coordinate with and support the Ministry of Industry and Trade and other ministries and branches in performing relevant tasks set forth in the Scheme.

10. Provincial-level People’s Committees shall, within the ambit of their assigned functions and tasks, direct provincial-level Departments of Industry and Trade in:

a/ Formulating programs, schemes and plans on restructuring of the industry and trade sector for the period up to 2030 in their localities; allocating local budget funds and mobilizing resources for the implementation thereof.

b/ Coordinating with the Ministry of Industry and Trade and related ministries and sectors in organizing the implementation of relevant contents of the Scheme.

11. Groups, corporations and state enterprises shall

a/ Assume the prime responsibility for, and coordinate with superior owner agencies in, formulating schemes or plans or integrating contents on restructuring of groups, corporations and enterprises into their development strategies and plans, and submit them to competent authorities under regulations; and allocate budget funds and mobilize resources for implementation thereof.

b/ Actively and proactively coordinate with the Ministry of Industry and Trade and related ministries and sectors in organizing the implementation of relevant contents of the Scheme.-

* The Appendices to the Scheme approved under this Decision are not translated.