Decision No. 1107/QD-TTg dated August 21, 2006 of the Prime Minister approving the planning on development of industrial parks in Vietnam up to 2015 and orientations to 2020

DECISION

APPROVING THE PLANNING ON DEVELOPMENT OF INDUSTRIAL PARKS IN VIETNAM UP TO 2015 AND ORIENTATIONS TO 2020

THE PRIME MINISTER

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

Pursuant to the Government's Decree No. 36/CP of April 24, 1997, promulgating the Regulation on Industrial Parks, Export-Processing Zones and Hi-Tech Parks;

At the proposal of the Minister of Planning and Investment,

DECIDES:

Article 1.- To approve the planning on development of industrial parks in Vietnam up to 2015 and orientations to 2020, with the following major contents:

1. Objectives:

a/ Overall objectives:

The objectives of the development of industrial parks in Vietnam up to 2015 and orientations to 2020 are to form a system of pivotal industrial parks which will play a leading role in national industrial development and, at the same time, to establish industrial parks of reasonable size for industrial development, boosting economic restructuring in localities where the industrial share in GDP is low.

To increase the contribution of industrial parks to the total industrial production value from over 24% at present to around 39-40% by 2010 and up to over 60% in subsequent periods. To increase the export of industrial products from industrial parks which now accounts for 19.2% of the national export value to around 40% by 2010 and higher in subsequent periods.

b/ Specific objectives:

- In the period from now to 2010:

+ To strive to basically fill the existing industrial parks with enterprises by 2010; to form in a selective manner new industrial parks on an increased area of about 15,000 ha-20,000 ha, bringing the total area of industrial parks to around 45,000 ha-50,000 ha by 2010.

+ To invest in a coordinated manner in perfecting the existing industrial parks' infrastructure, especially wastewater treatment facilities, and ensure the tree- grown area in each industrial park according to approved construction plannings for environmental protection and sustainable development purposes.

- In the period from now to 2015:

+ To invest in a coordinated manner in perfecting existing industrial parks, and establish in a selective manner new industrial parks with an increased total area of around 20,000 ha-25,000 ha; to increase the total area of industrial parks to around 65,000 ha-70,000 ha by 2015. To strive for an average occupancy rate of over 60% in industrial parks nationwide.

+ To adopt measures and policies to restructure industries in industrial parks which have been and are being built in the direction of modernization and suitability to the nature and characteristics of their geographical areas.

+ To build large-scale facilities for industrial-waste treatment in areas where many industrial parks are located in key economic regions.

+ To further perfect mechanisms and policies to encourage investment in industrial parks, striving to attract an additional number of 6,500-6,800 projects with a total registered investment capital of over USD 36-39 billion, of which executed investment capital shall account for around 50%.

- In the period from now to 2020:

+ To well manage, and plan the rational use of, land areas reserved for construction of industrial parks.

+ To fundamentally complete the network of industrial parks in the whole country with a total area of around 80,000 ha by 2020.

+ To manage and restructure investment in the development of the existing industrial parks in a coordinated manner.

2. The formation of industrial parks in different localities should meet the following conditions and criteria:

- Complying with socio-economic development plannings, plans and conditions as well as local land-use plannings and plans.

- Having favorable conditions or the capability to build technical and social infrastructure, implement in a coordinated manner and closely combine the planning on development of industrial parks and export-processing zones with the planning on urban development, population distribution, dwelling houses and social works in service of workers in industrial parks and export-processing zones.

- Having land funds reserved for development and conditions for forming industrial-park clusters; particularly for localities where exists only agricultural land, the development of industrial parks for economic restructuring should be phased out to ensure the efficient use of land.

- Being capable of attracting investment capital from domestic and foreign investors.

- Being capable of meeting workforce demands.

- Satisfying security and defense requirements.

- For localities where industrial parks already exist, new industrial parks shall be established only when at least 60% of the total industrial land area in the existing industrial parks has been leased.

- Existing industrial parks shall be expanded only when the total leased area of industrial land therein accounts for at least 60% and where concentrated wastewater treatment facilities have been completely built.

- For industrial parks with an area of over 500 ha each whose infrastructure will be invested and commercially operated by many investors, a general planning on construction of an industrial park should be made under the Construction Ministry's guidance before a detailed planning on an industrial park is elaborated in order to ensure integrity and synchrony of its technical infrastructure system.

- There shall be no residential areas in industrial parks or export-processing zones. There may be export-processing zones or enterprises in industrial parks.

3. To promulgate together with this Decision a list of 115 industrial parks to be formed up to 2015 (Appendix I) and a list of 27 industrial parks to be expanded (Appendix II). These lists exclude industrial parks within economic zones under the general planning approved by the Prime Minister.

Article 2.- Organization of implementation

1. Publicization of the planning:

The planning on development of industrial parks in Vietnam up to 2015 and orientations to 2020 shall be publicized after it is approved.

2. Supplementation or adjustment of the planning:

Based on the conditions and criteria for formation and expansion of industrial parks specified in this Decision and at the proposal of provincial/municipal People's Committees, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Construction and concerned ministries and branches in, considering and submitting to the Prime Minister for decision the addition of industrial parks to be established or expanded to the master planning on development of industrial parks.

3. Assignment of responsibilities:

- The Ministry of Planning and Investment shall monitor, urge and organize the implementation, and report to the Prime Minister the supplementation or adjustment, of the planning in case of necessity.

- Ministries and branches shall, within the ambit of their respective functions, tasks and powers, coordinate with the Ministry of Planning and Investment in directing localities to implement the planning.

- Provincial/municipal People's Committees shall publicize lists of industrial parks in their respective localities, which have been approved by the Prime Minister, and direct the performance of subsequent steps according to current regulations.

- Concerned ministries and branches and provincial/municipal People's Committees shall formulate plannings and build technical and social infrastructure outside industrial-park fences in synchrony with the construction of industrial parks.

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

Article 4.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall have to implement this Decision.

APPENDIX I

LIST OF INDUSTRIAL PARKS TO BE FORMED UP TO 2015
(Issued together with the Prime Ministers Decision No. 1107/QD-TTg of August 21, 2006, approving the planning on development of Vietnams industrial parks up to 2015
and orientations to 2020)

APPENDIX II

LIST OF INDUSTRIAL PARKS TO BE EXPANDED UP TO 2015
(Issued together with the Prime Ministers Decision No. 1107/QD-TTg of August 21, 2006, approving the planning on development of Vietnams industrial parks up to 2015
and orientations to 2020)