Decision No. 113/2006/QD-TTg dated May 24, 2006 of the Prime Minister approving the planning on development of Hanoi city's industry up to 2010

DECISION

APPROVING THE PLANNING ON DEVELOPMENT OF HANOI CITY'S INDUSTRY UP TO 2010

THE PRIME MINISTER

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

Pursuant to the December 28, 2000 Ordinance on the Capital;

At the proposal of the Minister of Industry,

DECIDES:

Article 1.- To approve the planning on development of Hanoi city's industry up to 2010 with the following principal contents:

1. Development viewpoint:

- Hanoi city's industry should develop quickly for the city to promote its leading role in the northern economic key region. From now to 2010, industry shall continue to be an important motive force for boosting socio-economic industrialization and modernization in the capital and supporting other localities in the development region.

- Industrial development shall be in line with economic restructuring toward industrialization and modernization, focusing on industries with comparative advantages such as high technology, biotechnology and new materials, and key industries of the national economy, with environmental and ecological protection requirements taken into special consideration.

- Hanoi city's industry shall develop on the basis of further attracting foreign and non-state investment. To attach importance to attracting and closely coordinating with transnational conglomerates so as to integrate into international production and distribution systems.

- Hanoi city's industry shall develop in line with the planning on industrial development in the northern key economic region, combining, regulating and promoting the strengths of each locality while marshalling the strengths of the whole region.

2. Development orientations

- To focus on the development of industries which turn out products of high knowledge-based and technological contents (automation technology, biotechnology, new materials technology); industries which turn out products with competitive edge and famous brands such as electronic products (computers, office machines, products of industrial electronic appliances, medical electronic appliances, etc.), information technology, mechanical engineering products (tool machines, prime movers, automobile and motorbike manufacture and assembly, transformers'), food processing, pharmaceuticals and new materials. To prioritize the development of some hi-tech industrial parks in Hanoi.

- Hanoi city shall cooperate and coordinate with other provinces and cities in developing industry in the region in line with the regional planning and the industrial sector planning. Industries which are labor-intensive and have great transport demands shall be gradually relocated to nearby provinces and suburban areas. Polluting industrial establishments shall be relocated into industrial parks for concentrated waste treatment. Hanoi shall become a center for researching, designing and manufacturing new products, a transaction and service center and a center for goods import and export in the region. To develop small- and medium-sized industrial parks and industrial clusters and traditional trade villages in accordance with the planning on the expansion of the city as well as the planning on the northern key economic region.

- To encourage the development of support industries for key industries such as mechanical engineering and electronics, etc; to strongly develop small- and medium-sized enterprises with private capital in order to establish a network of satellite producers and exporters for big companies.

3. Objectives

- In the 2006-2010 period, industrial production value will increase by 15-16%/year and added value by 12-13%/year.

- By 2010, export turnover of industrial products will account for around 80% of the city's total export turnover and increase by 15-16%/year on average.

- To bring the technological level of some industries to the advanced regional level by 2010; to promote the introduction of advanced world technologies in some advantageous domains; to basically replace backward and polluting technologies. To computerize information systems in production, trade, scientific and technological activities and industrial management.

- By 2010, to further attract 120,000-130,000 laborers, accounting for 30% of laborers employed by the city's economy. Scientific and technical laborers working in the industrial sector will be capable of receiving, operating and efficiently exploiting advanced technologies.

- To develop industries in a sustainable manner; prevent and effectively remedy the environmental pollution caused by industrial solid wastes; to build and develop environmentally friendly industrial parks, ecological industrial parks'

Development objectives of 10 industries (calculated in production value) shall be as follows:

Development objectives of 13 key groups of industrial commodities (calculated in industrial production value) shall be as follows:

- To restructure Hanoi's industry in the direction of reducing the ratio of group-1 industries (extraction) and increasing the ratio of group-2 industries (processing), especially by 2010.

Electronics-information technology; mechanical engineering; foodstuff and beverage processing; high-class textiles and garments; high-class construction materials and interior decoration shall be determined as key industries, in which mechanical engineering shall account for the largest ratio and the ratio of electronics and information technology shall increase at the highest rate by 2010.

- To adjust the economic sector-based structure of Hanoi city's industry in the direction of reducing the proportion of state enterprises to 34-35% by 2010 from 43% in 2005 and increasing the proportion of non-state enterprises and foreign-invested enterprises to 16-17% and 47-48% by 2010 from 14.6% and 42% in 2005, respectively.

4. Orientations on development of key industries

a/ Electronics-information technology:

- To give priority to developing electronics-information technology into a key industry so as to create a premise for the development of other industries.

- To strive to make Hanoi city a center of the whole country and the Red River delta for designing products, developing software, manufacturing accessories and equipment and providing electronic and information technology services on the basis of tapping potentials of all economic sectors in the city.

- To develop the electronics industry in the direction of raising the efficiency of production division and cooperation. To build modern software centers, software parks and electronic industrial parks. To encourage the manufacture of accessories, spare parts and support products for the assembly industry.

b/ Mechanical engineering

To concentrate efforts on the industrial development on the basis of promoting joint venture, association and cooperation between domestic companies and foreign-invested companies; to invest in modern equipment and technologies in order to manufacture equipment in complete sets, electrical, mechanical-electronic and automation equipment in service of industrial development, agricultural production, service provision and consumption, basically meeting the demand of the domestic market and step by step entering into regional and world markets.

To attach importance to conducting research into and designing new products through close coordination and cooperation between research institutes, institutions and enterprises; to associate national research programs with the development of key products. To step by step form systems of diversified support industries in the regional provinces so as to raise the industry's competitiveness.

c/ Foodstuff and beverage processing

- To develop the industry by applying advanced technologies, diversifying products, improving and raising product quality up to Vietnam and international standards, ensuring food safety and hygiene criteria, meeting local and regional consumption demand and, at the same time, quickly increasing export volumes.

- To continue expanding the production of products of famous brands and with a reputation to meet the increasing demand of people in the capital and other provinces and cities throughout the country. To attach importance to developing the capital's well-known traditional products in service of tourism. To coordinate with other provinces in the northern region in developing raw material areas and building processing plants in line with regional plannings so as to avoid waste and raise the efficiency of investment capital.

d/ Textiles and garment

To develop service centers, high-class fashion research and design centers and general agents. To develop textiles and garment industry mainly in depth and to closely cooperate with other provinces in the region so as to expand and develop production. As for textiles, it is necessary to focus on the production of high-class products by new, advanced and non-polluting technologies.

e/ High-class materials for construction and interior decoration

To invest in and apply new and advanced techniques to the production of new materials, high-class materials and synthetic materials for construction and interior decoration such as light materials, 3D components, tiling and flooring products, construction ceramics and porcelains, and new materials with the application of nanotechnology such as shock-proof glass, anti-opaque glass.

5. Territory-based industrial development

The development of the capital's industry should be placed in relation to regional development and in close cooperation and coordination with other localities in the regions, especially neighboring provinces such as Ha Tay, Ha Nam, Vinh Phuc, Bac Ninh and Hung Yen. To encourage the development of heavy industries and production of construction materials in the area northeast of Hanoi and along national highway 18.

a/ For concentrated industrial areas built before the 1990s

- To speed up the relocation of highly polluting production establishments and enterprises with inappropriate production conditions such as dyeing, chemicals, tobacco, etc. far from the inner city and population areas, combined with renewal of their technologies and investment in waste treatment systems for environmental protection.

- The remaining enterprises should work out plans on renewing technologies and equipment, paying special attention to the application of clean technologies. To renovate and upgrade technical infrastructure, especially industrial wastewater treatment facilities.

- To re-determine the boundaries, detaching dwelling houses, population areas and public-utility works from industrial production establishments.

b/ For newly planned and built industrial parks

To continue completing the construction of infrastructures in five existing industrial parks and build South Thang Long industrial park. To promote investment in industrial parks in a selective manner in the direction of attracting large-scale projects in industries of high knowledge-based or technological contents and clean or non-polluting industries. To offer special incentives to projects applying advanced technologies from developed countries. Projects with old, backward and polluting technologies shall not be licensed.

Apart from the aforesaid six industrial parks, depending on the land occupancy and investors' demand for ground areas, it is possible to plan Soc Son industrial park with an acreage of around 300-350 ha.

c/ Small- and medium-sized industrial clusters and support industries

To speed up the construction of infrastructure in small- and medium-sized industrial clusters as planned. Depending on the land occupancy in such industrial clusters, the People's Committee of Hanoi city may consider the expansion thereof so as to meet investors' demand for ground areas.

To develop clusters of support industries for key industries in accordance with the overall requirements of the whole region.

Article 2.- Organization of implementation

1. The People's Committee of Hanoi city shall

a/ Specify and organize the implementation of this planning. To disseminate this planning among the municipal branches and services as well as district authorities for them to fully grasp the viewpoints, orientations, objectives and contents of this planning and at the same time, coordinate with concerned ministries and branches in organizing the implementation of this planning. To call for investment on the basis of this planning.

b/ Take initiative in coordinating with concerned ministries and branches in studying and proposing specific mechanisms and policies so as to ensure the implementation of this planning.

c/ Continue with the organizational renewal and administrative reform so as to create a favorable environment conducive to domestic and foreign investment. To use and bring into play the capital's human resource and material sources.

d/ Accelerate the reorganization and renewal of state enterprises and speed up the equitization.

e/ Coordinate with the Ministry of Science and Technology in formulating a technology renewal roadmap for Hanoi's industries up to 2010.

2. The Ministry of Industry shall assume the prime responsibility for, and coordinate with the People's Committee of Hanoi city in, directing the implementation of this planning; to propose the Prime Minister to adjust this planning when necessary, ensuring its conformity with economic development requirements of the city and the whole country. To guide corporations and enterprises to invest in the city and strictly abide by the city's planning.

3. Based on the provisions of law, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Industry and the People's Committee of Hanoi city in, studying and submitting to the Prime Minister for consideration and decision specific policies on financial incentives and support so as to develop key industries according to this planning.

4. The Ministries of Planning and Investment; Agriculture and Rural Development; Construction; Trade; Science and Technology; Natural Resources and Environment; Transport; and Finance; the State Bank of Vietnam, and concerned agencies shall, within the scope of their assigned responsibility, coordinate with one another in dealing with relevant issues.

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

Article 4.- Ministers, heads of ministerial-level and Government-attached agencies, the presidents of the People's Committees of Hanoi and Haiphong cities, and Quang Ninh, Ha Tay, Hung Yen, Hai Duong, Vinh Phuc, and Ha Nam provinces, and concerned agencies shall have to implement this Decision.