Decision No. 2836/QD-BCT dated May 06, 2013 of the Ministry of Industry and Trade approving the planning for industrial development of the key economic region in the Middle by 2020 and the orientation to 2030

THE MINISTRY OF INDUSTRY AND TRADE

Decision No.  2836/QD-BCT dated May 06, 2013 of the Ministry of Industry and Trade approving the planning for industrial development of the key economic region in the Middle by 2020 and the orientation to 2030

Pursuant to the Decree No. 95/2012/ND-CP dated November 12, 2012 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Decree No. 92/2006/ND-CP dated September 07, 2006 of the Government on making, approving, and managing the master plan for socio-economic development, and the Decree No. 04/2008/ND-CP dated January 11, 2008  of the Government on the amendments to Decree No. 92/2006/ND-CP of the Government;

At the request of the Director of the Planning Department,

DECIDES:

Article 1.To approve the Planning for the industrial development of the key economic region in the Middle by 2020, and the orientation to 2030. In particular:

1.Development viewpoints

a) The industrial development of the key economic region in the Middle (hereinafter referred to as Central Economic Region) must be conformable with the national industrial development strategy and the regional socio-economic development planning. The comprehensive and sustainable regional industrial development is a motive for the socio-economic development in the Middle and the Central Highland; combine internal and external resources; ensure regional cooperation in investment and development;

b) Make focused investments competitive industries of Central Economic Region. Gradually develop high-tech industries with low consumption of energy and raw materials; develop dual-use technology serving National defense and security;

c) Carry out economic restructuring and labor restructuring to gradually reducing labor-intensive raw processing industries, gradually increasing industries with high level of technologies and high-quality labor sources

d) Gradually improve the competitiveness of industrial products. The industrial development must associate with the protection of the environment, historical and cultural remains.

2.Development targets

a) The growth of industrial benefits reaches 9% – 10% by 2015, and 12% - 13% during 2016 – 2020;

b) The growth of industrial production value reaches 10% – 11% by 2015, and 14% - 15% during 2016 – 2020;

c) The proportion of industry and construction reaches 44% - 45% in 2015, and 45% - 46% in 2020. The proportion of industry reaches 35% - 36% in 2015, and 36% - 37% in 2020.

3.Development orientations

3.1. By 2020

- Central Economic Region is a modern industrial region that plays a decisive role in the national industrialization and modernization. Develop distinctive industrial trademarks, participate in the key export and production train of the whole country;

- Utilize the benefit of labor sources, geographical position, sea materials, minerals, and building materials to serve the processing industry;

- Enhance the cooperation among industries and local industrial enterprises with enterprises in other localities to efficiently and frugally use resources, improve the quality and competitiveness of the products and industrial enterprises. Form a division of labor in each stage of manufacture;

- Industrial structure: by 2020: focus on the development of prioritized industries and flagship industries that have benefit of raw materials and market such as: mechanical engineering, seafood – food processing, building material production; chemical production, petrochemistry; electricity generation. Focus on the quick development of some leading industries, industrial products, hi-tech industries and hi-tech products such as precision engineering, electronics, and ancillary industries in order to establish a network of producers, suppliers, and exporters from Vietnamese and foreign companies;

- Apply advanced technologies to new industrial facilities; upgrade technologies to improve product quality, save raw materials and energy, satisfy the requirements for environment protection;

- Develop industrial complexes and handicrafts complexes to meet the demand from rural industrial production to efficiently implement the 10th Central Resolution No. 7 on agriculture, farmers, and rural areas.

3.2. Orientation to 2030

- Central Economic Region is a motive for the socio-economic development of the entire region.

- Focus on in-depth processing industries with modern technologies and equipment, reputable, competitive and high-quality industrial products that meet international standards;

- Participate in some stages of the global industrial production chain regarding mechanical engineering, electronic device manufacture, production of materials and components.

- Focus on the production of distinctive handicraft products associated with local culture to serve domestic and international tourism.

4.Development planning

4.1. Mechanical engineering and metallurgy

4.1.1. By 2020

- The metallurgy industry shall focus on the production of steel alloys serving mechanical manufacture in Da Nang and Quang Ngai;

- Mechanical engineering shall focus on the production of moulds in Da Nang and Quang Ngai; high-pressure forming in Quang Ngai, Quang Nam and Da Nang; steel structures, welding electrodes and welding materials, new energy and renewable energy shall be produced in Quang Ngai and Binh Dinh.

- Ancillary industries for mechanical engineering and metallurgy shall be deployed in Quang Ngai, Da Nang, and Binh Dinh.

- Machinery and equipment: especially machines for agriculture, agricultural, silvicultural, and aquacultural processing shall be produced in Da Nang, Quang Nam, and Binh Dinh; safety equipment and equipment for environmental remediation shall be produced in Da Nang and Quang Ngai.

- Industrial electrical equipment and household appliances shall be produced in Da Nang, Binh Dinh, Quang Nam; mechatronic devices shall be produced in Da Nang.

- Medical equipment and precision engineering shall be produced in Binh Dinh, Thua Thien Hue, and Da Nang.

- Automobiles, especially high-quality buses, trucks, and specialized vehicles shall be produced in Quang Nam.

- Other vehicles, especially big ships, specialized ships, store-ships, raw-processing ships, forecasting and warning devices, equipment for surveying at sea, aerial survey, and surveying at coastal continental shelves shall be produced in Da Nang, Quang Ngai, and Binh Dinh.

4.1.2. Orientation to 2030

- Invest in improving the productivity of machine assembly based on the development of ancillary industries of the projects on: car manufacture, household appliances; machinery and equipment for processing agriculture and aquaculture products with small consumption of energy and materials and satisfy environmental requirements and standards.

- Enhance research, design, and cooperate with foreign partners to manufacture important components by 2020 in order to participate deeply in the regional and global supply chain of ancillary industries for mechanical engineering;

- Enhance cooperation with countries that have developed mechanical engineering industry in researching and applying new and modern technologies to make in-depth investments and expand the manufacture of mechanical components.

4.1.3. Orientation of regional cooperation

- Machinery production and heavy-duty mechanical equipment are primarily located in Dung Quat and Quang Ngai;

- Road vehicles, primarily cars, shall be produced in Quang Nam; waterborne vehicles shall be produced over the whole region, but primarily in Quang Ngai; specialized waterborne vehicles shall be produced in Da Nang;

- Ancillary industries for mechanical engineering and metallurgy shall be deployed in Quang Ngai, Da Nang, and Quang Nam.

- Electrical equipment and energy equipment shall be produced in Da Nang and Binh Dinh;

- Encouraged agricultural machinery and equipment shall be produced primarily in Quang Nam and Binh Dinh

- Medical equipment and precision engineering shall be produced in Binh Dinh, Thua Thien Hue, and Da Nang.

4.2. Manufacture of electrical and electronic equipments

4.2.1. By 2020

- Electronic equipment, electronic components and solar cells shall be produced and assembled in Da Nang, Quang Nam, Thua Thien – Hue, and Binh Dinh.

- Computers , IT equipment, and software applications shall be produced and assembled in hi-tech zones in Da Nang and Thua Thien – Hue.

- Expand the system of training in electronics and IT; build institutions to measure and assess electronic equipment and IT equipment in Da Nang.

4.2.2. Orientation to 2030

- Make in-depth investment to master the design and produce the most part of modern hi-tech products; the equipment is produced from green and clean technologies with small consumption of energy, raw materials, and have high value added;

- Manufacture high-quality household appliances made of new materials;

- Design and manufacture equipment for protection, security, fire prevention and fighting; electronic equipment for measurement; medical equipment;

- Produce software and hardware that satisfy most demands.

4.2.3. Orientation of regional cooperation

Da Nang city is considered a epicenter due to its advantage in labor sources and the tendency to enhance the services of hi-tech products that required skilled labor sources; focus on ancillary industries for electronic industry, manufacture and assembly of computers, IT, telecommunication, electrical, refrigeration, and electronic equipment; aim for the production of actuating systems with embedded software serving the automation in processing industry, oil refineries, mineral extraction, traffic control, etc. Prioritize direct foreign investments in hi-tech industrial parks of this region. Establish some large-scale factories with modern technologies to produce computers and telecommunications equipment, especially aerial, maritime, and undersea telecommunications.

4.3. Processing agricultural, forestry, and aquaculture products and foods

4.3.1. By 2020

a) Processing aquaculture products

- Keep processing traditional aquaculture products such as dried foods, fish sauces to serve local consumption and provide souvenirs for tourists. Utilize by-products and refuses to create new products to improve efficiency such as processing cattle feed and fish meal.

- Stabilize the raw material sources of the whole region, invest in studying production technology, demands of foreign customers, supervise the origins and quality of aquaculture products; focus on developing the mass production of high-quality aquaculture products serving exports. The existing facilities that process aquaculture products in Thua Thien – Hue, Binh Dinh, and Quang Ngai shall invest in technologies to serve high-class domestic customers, tourists, and provide raw processing services for producers of exported products in Da Nang.

b) Treating timber, paper, and forestry products

- Keep investing in treatment of timber for export in Binh Dinh, focus on cooperation among local enterprise to reduce prices, increase value added by new designs and product quality. Build a system of timber treating facilities and raw material sources in other localities (Thua Thien – Hue, Quang Nam, Quang Ngai) to support the primary facilities in Binh Dinh, serving high-class customers and minimize impacts on the environment.

- The production of paper pulp and products from papers shall be developed in concentrated areas with sufficiently large scale to ensure the modernization, economic efficiency, and treatment of waste that cause environmental pollution.

c) Drinks

Keep modernizing technologies for beer, wine, and soft drink production; step by step replace existing technologies and equipment with modern ones; meet quality standards, ensure food safety and hygiene and protect the environment in accordance with Vietnam’s law and international law; ensure the competitiveness of products at home and overseas. Prioritize the use of equipment produced at home that are equivalent to imported equipment.

- Beer production

+ Invest in raising the capacity of beer factories to satisfy domestic demands and export.

+ Enable local beer producers to cooperate with major beer producers at home and overseas in order to adopt advanced managerial methods and modern technologies, gradually improve the quality and ensure the competitiveness during the integration.

- Wine production: enhance the production of traditional wine; raise the quality and reputation to export in Quang Nam, Binh Dinh.

- Production of mineral water and soft drink: encourage economic sectors to participate in the production of soft drinks from local ingredients such as salangane s nests in Hoi An to serve domestic consumption and export. Invest in raising the capacity of mineral water factories in Quang Nam, Quang Ngai, and other places.

- Milk processing: upgrade milk processing facilities to ensure the modern equipment, food safety and hygiene build new milk processing factories in some regional provinces with favorable climate, land, and labor sources to develop the cow breeding such as milk processing factories in Da Nang and Binh Dinh. Invest in factories that process soy milk and produce dairy products in Quang Ngai.

4.3.2. Orientation to 2030

Processing aquaculture products: stabilize the existing facilities that produce aquaculture products. Encourage individual facilities to form cooperatives or enterprises in order to improve the capacity and competitiveness of products. Invest in raising the capacity of processing factories depending on the demands of the market.

Timber and paper treatment: enhance the processing of artificial plywood, timber, and chipboards for export. Gradually switching from using timber from natural forests to timber from planted forest and industrial wooden planks

Beer, wine, and soft drink production: make in-depth investment in existing beer factories. Do not build new beer factories. Encourage economic sectors to invest in the mass production of soft drinks with modern equipment and technologies to ensure food hygiene and environment protection; combine domestic ingredients with developing ingredient areas; prioritize the production of soft drinks from fresh fruits and nutritious soft drinks.

Processing of agricultural, forestry products and other foods: keep making in-depth investments and expanding the market to meet the capacity of existing factories. Encourage the development of the production of animal feeds, livestock, and food processing in the region, and invest in expansion when possible.

4.3.3. Orientation of regional cooperation

Invest in processing factories in provinces having favorable ingredient sources and good traffic, in particular:

- The center of fish processing is in Da Nang: though local ingredient sources are limited, but with its favorable position, Da Nang may make use of ingredient sources of adjacent areas and cooperate with other provinces in the region in providing ingredients for fish processing.

- The center of timber treating is in Binh Dinh: Build a system of timber treating facilities and raw material sources in other localities (Thua Thien – Hue, Quang Nam, Quang Ngai) to support the primary factories in Binh Dinh, serving high-class customers and minimize impacts on the environment.

- Gather paper pulp treatment in Quang Nam and Binh Dinh;

- Soft drink processing: The bear production centers are Thua Thien Hue and Da Nang city with reputable products at home and overseas. Other soft drinks may be developed, such as traditional wine in Quang Nam, mineral water in Da Nang and Quang Nam; soft drinks in Quang Nam and Binh Dinh; milk processing in Da Nang, Quang Ngai, and Binh Dinh.

4.4. Chemical industry

4.4.1. By 2020

a) Petrochemistry products:

- Increase the capacity of Dung Quat refinery and Quang Ngai refinery; encourage investment in the oil refinery in Nhon Hoi Economic zone in Binh Dinh after the Prime Minister grants an approval.

- Complete and open the liquefied gas bottling factory in Nhon Hoi Economic zone in Binh Dinh; gas processing and distributing factory in Dung Quat, Quang Ngai;

- Invest in factories that produce polystyrene (PS), PE, black coal, N-Paraffin in Dung Quat, Quang Ngai, invest in and open the asphalt factory in Nhon Hoi Economic zone in Binh Dinh.

b) Fertilizers

- Invest in factories that process microbial organic fertilizers from wastes.

- Build factories that produce organic fertilizers from bagasse in Binh Dinh and Quang Ngai.

c) Common chemicals

- Speed up the completion of soda factories in Tam Hiep Industrial Park and Chu Lai Economic Zone in Quang Nam;

- Invest in building a CA/EDC/VCM complex – soda and soda-chloride production lines in Quang Nam and Quang Ngai.

d) Rubber products

- Complete the radial truck tire factory in Da Nang;

- Invest in building factories that produce products from natural latex in Binh Dinh and Quang Ngai.

- Invest in building factories that produce new materials such as conveyor belts and driving belts in Quang Nam and Binh Dinh.

dd) Detergents

- Invest in building LAB factories;

- Invest in building cosmetics factories in Chan May Industrial Park in Thua Thien – Hue.

e) Industrial gases: invest in building factories that produce liquefied nitrogen and oxygen in Da Nang and Quang Ngai.

g) Plastic products

- Invest in building factories that produce OPP and CCP in Da Nang;

- Invest in factories that produce plastic car parts in Truong Hai Industrial Park in Quang Nam; build ships from FRC and composite materials in Nhon Hoi Economic Zone in Binh Dinh

- Invest in factories that produce Chu Lai Economic Zone in Quang Nam, and factories that produce PVC, PPR, and HDPE pipes in Nhon Hoi Economic Zone in Binh Dinh;

- Invest in factories that produce moulds for plastic industry, factories that produce products made of plastic and composite materials in Chan May Industrial Park in Thua Thien – Hue.

h) Pharma-chemistry products

- Invest in factories that extract pharmaceutical ingredients and semi-synthetic ingredients in Thua Thien – Hue;

- Invest in building factories that produce high-class excipients in Binh Dinh

i) Paint: expand Hoang Gia Paint Company in Phu Bai Industrial Park in Thua Thien – Hue.

4.4.2. Orientation to 2030

a) Petrochemistry products: keep researching and building more oil refineries if the demand rises during 2021 - 2030 Invest in building factories that produce olefins, PE, PP, EDC/VCM in Binh Dinh and Quang Ngai.

b) Fertilizers: The need for fertilizers for agriculture is basically meet. Sustain the fertilizer production system with modern technologies and high-quality products in order to completely eliminate small producers with inferior and inconsistent products.

c) Common chemicals: make investment in industrial parks and industrial complexes to ease the environmental remediation. The soda factories in Chu Lai, Quang Nam may be upgraded in the next stages depending on the market; consider building 1 complex of CA/EDC/VCM and soda-chloride production line in Quang Nam or Quang Ngai.

d) Rubber products: keep encouraging economic sectors to participate in the development of rubber products; encourage foreign investors that have advantage in terms of capital and technologies to participate in the production of products that require high technology such as radial car tires, inner tubes made of synthetic rubbers and other rubber products.

dd) Detergents: keep investing in renewing equipment and technologies to sustain the production of high-quality products in order the supply the market in the Middle and Central Highland; invest in the production of demanded products such as liquid detergents

e) Paint and ink: invest in factories that produce high-quality paint, including industrial coating.

g) Gaseous products: all enterprises must invest in improving the productivity, upgrading technologies and equipment, improving the quality and reducing prices to raise the competitiveness and sustain the market. Consider investing in the production of dry ice to diversify industrial gases.

4.4.3. Orientation of regional cooperation

- Produce pharmaceuticals and pharma-chemical products in Thua Thien – Hue, Da Nang, and Binh Dinh;

- Produce plastics and composite materials in Thua Thien – Hue and Da Nang;

- Produce fertilizers, common chemicals and petrochemistry products in Quang Nam, Quang Ngai, and Binh Dinh.

Orientation of regional cooperation for common chemicals: soda factories shall be located near alumina and paper factories in Quang Nam, Quang Ngai, and Binh Dinh. Major projects must be located in petrochemistry complex according to EDC-VCM-PVC planning to utilize chloride sources and completely resolve the balance issue in soda production.

Orientation of regional cooperation for rubber products: rapidly develop the production of tires for cars, bus, and heavy-duty vehicles, including radial tires; tires for motorbikes and bicycles, and some products from natural rubber. Invest in the production of ingredients for rubber such as steel wire, black coal, bulking agents, and additives from Dung Quat refinery.

Orientation of regional cooperation for detergents: encourage the development of detergents, especially ingredient production associated with petrochemistry.

4.5. Production of building materials

4.5.1. By 2020

a) Cement and cement additives

- Complete the cement projects in Thua Thien – Hue and Quang Nam;

- Invest in building and expanding clinker grinding stations in Quang Nam, Dung Quat Economic Zone, Quang Ngai, and Da Nang; cement grinding and transiting station in Binh Dinh;

- Encourage investments in factories that grind and pack cement additives in Quang Ngai.

b) Stones and bricks

- Make in-dept investment in improving the quality and stabilizing the capacity of existing factories;

- Build factories that produce stones for building in Quang Nam; complete and commence the factories that process Granite in Binh Dinh;

- Invest in the production of terastone-brettostone bricks, terrazzo bricks, ultra-light bricks in Quang Ngai; high-quality unbaked brinks in Quang Nam and Quang Ngai; production of tunnel bricks in Quang Ngai and Binh Dinh; encourage the development of vertical shaft brick kiln in Binh Dinh; encourage investment in unbaked brick production from stone powder in Binh Dinh; invest in the production of unbaked bricks and terrazzo bricks from sand, cement, and stone powder in Quang Ngai.

c) Roofing materials.

- Build factories that produce roof shingles for civil constructions and industrial constructions in the region;

- Invest in the expansion of factories that produce non-asbestos roofing tiles and roof shingles in Quang Nam and factories that produce roofing tôle in Quang Ngai.

d) Concrete production

- Keep stabilizing existing concrete mixing stations and concrete structures components. Build new concrete mixing stations and factories that produce concrete components in industrial parks to serve the construction of residential areas, electricity transmission works and irrigation works;

- Expand precast concrete factories in Quang Nam, Tinh Phong Industrial Park, Quang Ngai, and Binh Dinh;

- Invest in building prestressed concrete factories and precast concrete component factories in Quang Ngai;

- Encourage investment in factories that produce dry premixed mortal and aerated concrete in Binh Dinh;

- Invest in building factories that produce concrete component in Tam Ky, Quang Nam.

dd) Production of sanitary ceramics

- Diversity the designs of sanitary ceramics to meet demands, produce accessories of sanitary ceramics to replace imported products;

- Maintain the existing factories that produce sanitary ceramics in the region, invest in factories that produce sanitary ceramics in Da Nang, factories that produce high-class industrial ceramics

e) Glass production

- Encourage investment in glass factories (toughened glass, multi-layered glass, etc.) in industrial parks in Thua Thien – Hue and Quang Nam;

- Encourage investment in new factories that produce products from white sand such as building glass, glass-fiber, glass nodules, household glass.

g) Other building materials: build a factory that produces building materials from plastic such as plastic floor slabs, wall slabs, ceiling slabs, door frame, and factories that produce asphalt paper used for covering, water proofing and damp proofing to utilize petrochemistry products.

4.5.2. Orientation to 2030

Depending on the existing resources and tendency to use building materials during 2021 – 2030, the production of building materials in Central Economic Region shall be developed as follows:

- Develop science and technology, apply new technologies and modern equipment to the production of building materials to improve the quality, reduce prices and raise their competitiveness;

- Keep developing the production of cement, light concrete, unbaked bricks, paving bricks, high-class ceramics, sand, gravel, and new building materials. Decide on rational investment scale and competitive products in the domestic market and international marker;

- Invest in the extraction of stones and production of stone slabs with advanced technologies and equipment to improve the product quality, meet international standard, and able to compete in the domestic and international market.

4.5.3. Orientation of regional cooperation

The production of building materials in Central Economic Region shall be planned based on the advantage of resources of each province in this region. Common building and roofing materials shall be produced and sold primarily within the region. Cement shall be produced in Thua Thien – Hue and Quang Nam; stone and stone slabs shall be extracted and produced primarily in Quang Nam, Quang Ngai, and Binh Dinh to provide for other provinces in the country and for export.

4.6. Textile, garment, leather and footwear industries

4.6.1. By 2020

a) Textile and garment industry

- Build a textile and garment complex, leaded by Hue Textile and Garment Company; expand the production scale and gradually modernize central exporting garment facilities according to the textile and garment development program of the Government;

- Encourage investments in the thread – weaving – dying complex in Hoa Khanh Industrial Park in Da Nang; invest in the production of pant cloth in Son Tra, Da Nang; complete investing and develop the production – commerce – service complex in Phu Cat district - Binh Dinh;

- Invest in the production of polyester in Dung Quat - Quang Ngai, build a thread factory in Que Son – Quang Nam;

- Invest in garment factories in Huong Tra Industrial Park in Thua Thien – Hue;

- Invest in factories that produce garment accessories such as buttons, zippers, and rubber bands in Binh Dinh.

b) Leather and footwear industry

- Invest in the production of cloth shoes in Hue and Binh Dinh, and sneakers in Quang Ngai and Binh Dinh;

- Invest in the production of sandals and slippers in Quang Nam and Binh Dinh;

- Invest in the production of bags, purse, and wallets made of crocodile and ostrich skin in Binh Dinh, Da Nang, and Quang Nam.

c) Raw materials from textile and garment – leather and footwear

- Cotton shall be planted in Quang Nam, Quang Ngai, and Binh Dinh;

- Encourage investments in factories that produce high-class dyed cloth in Da Nang;

- Encourage investments in factories that dye pant cloths, factories that produce needles, thread, and buttons; industrial sewing factories, and thread factories in Quang Nam;

- Invest in PU-coated leatherette factories; factories that produce accessories for footwear, bags, purses, and wallets; factories that produce moulds and soles in Quang Nam and Binh Dinh.

4.6.2. Orientation to 2030

- Encourage investments in the production of accessories for textile and garment industry and leather and footwear industry; prioritize the development of the industries that support the develop of the garment industry;

- Encourage investment in an institution that provides training in designing.

4.6.3. Orientation of regional cooperation

- Textile and garment industry: Da Nang is the center of the export garment complex; dyeing facilities shall be gathered in Hoa Khanh Industrial Park, thread and cloth shall be produced in Hue, Da Nang, and Quang Nam; ready-to-wear clothing shall be produced in Da Nang, Quang Nam, Quang Ngai, Binh Dinh, and Thua Thien – Hue;

Accessories for the garment industry shall be produced in Binh Dinh and Quang Nam.

- Leather and footwear industry: Da Nang shall control the development of the Mid Central Coast; establish a complex that produce footwear, bags, wallets, and purses. Encourage facilities to move away from major cities (Quang Ngai, Quy Nhon, Hue, etc.) in order to reduce labor pressure;

Facilities that produce hats, footwear, = bags, satchels, wallets, and purses from crocodile and ostrich skin shall be developed in Binh Dinh, Da Nang, and Quang Nam; footwear shall be produced in Da Nang, Quang Nam, and Binh Dinh;

Accessories for the leather and footwear industry shall be produced in Binh Dinh and Quang Nam.

4.7. Mineral extraction and processing

4.7.1. By 2020

a) Extraction and processing or titanium ore

- Speed up the investment in factories that refine titanium ore in Quang Nam

- Invest in expanding the titanium extraction in Binh Dinh;

- Invest in improving the capacity of reverted ilmenite factories in Thua Thien – Hue and Binh Dinh;

- Maintain and improve the capacity of ultrafine zircon production lines in Thua Thien – Hue; build factories that refine and grind ultrafine zircon in Thua Thien – Hue;

- Expand titanium slag factories in Thua Thien – Hue, invest in 01 artificial rutile or titanium slag in Thua Thien Hue and Binh Dinh;

- Make investment in factories that produce pigments, metallic titanium, porous titanium, and fluorescent powder in Binh Dinh.

b) Gold ore extraction and refinement: invest in gold extraction in A Luoi – Thua Thien Hue; invest in factories that refine gold in Quang Nam.

c) Iron ore extration and refinement: complete investing in factories that extract and refine iron ore in Binh Dinh and Thua Thien – Hue.

d) Extraction and refinement graphite in Quang Ngai.

dd) Extraction of stone slabs and building stones.

- Invest in the extraction of building stones at the mines in Thua Thien – Hue;

- Invest in the extraction of Gabrodiorit and diorite at Hoa Khuong mine to supply raw materials to stone slab factories in Da Nang;

- Invest in the extraction of granite, gabro, and basalt to supply stone slabs in Tinh Phong Industrial Park in Quang Ngai;

- Keep enhancing the extraction of stone slabs in Duy Xuyen, Que Son in Quang Nam province serving the export of stone slabs.

e) Extraction and refinement of feldspar and kaolin ore in Quang Nam; invest in kaolin refinement in Thua Thien Hue and Quang Ngai.

g) Extraction of white sand: maintain the capacity of local white sand extraction invested previously.

4.7.2. Orientation to 2030

- Focus on investment in upgrading and expanding reserve to ensure sufficient and reliable resources for local mineral extraction projects.

- Stop exporting raw minerals; encourage investments in advanced technologies that avoid causing environmental pollution. Enhance in-depth processing, raise added value, product quality, and efficiency of mineral refineries.

- Associate the extraction and refinement with waste treatment, soil restoration and environmental remediation during the extraction.

4.7.3. Orientation of regional cooperation

- Build factories that refine in-depth titanium ore in Thua Thien Hue, Quang Nam, and Binh Dinh. Titanium ore extracted in 5 provinces in Central Economic Region is raw material sources for in-depth refining factories: ultrafine zircon factories, pigment factories, titanium ore factories;

- Gold ore shall be extracted and refined in Thua Thien Hue and Quang Nam;

- Limestone and cement clay shall be extracted and refined in Thua Thien Hue and Quang Nam to supply cement factories. These provinces shall be the cement center of this region;

- Stone slabs extracted in Thua Thien Hue, Quang Nam, Quang Ngai, and Binh Dinh.

4.8. Electricity industry

4.8.1. By 2020

a) Power supply

Pursuant to the List projects to be commenced during 2011 – 2020 enclosed with the Decision No. 1208/QD-TTg dated July 21, 2011 of the Prime Minister, and the projects approved the Ministry of Industry and Trade, including minor hydropower projects approved by provincial governments;

- By 2015: Investing power supply works of which total power reaches 1,268 MW and electrical production reaches 4.92 billion kWh. The power of medium and small hydropower projects is over 360 MW. Complete and commence new hydropower plants safely and stably in the short term, then maximize power generation capacity.

- 2016 - 2020: Investing power supply works of which total power reaches 692 MW and electrical production reaches 2.92 billion kWh. The Central Combined Cycle Gas Turbine Plant shall reach 450 MW. The expected production in the first year is 2 billion kWh; the production of medium and small hydropower plants is 160 MW.

b) Electrical grid

Keep comprehensively developing the electricity transmission and distribution from the sources to consumers; focus on high-voltage grids and hydropower gathering lines, especially high-voltage works by 2020, in particular:

- By 2015:

+ Build a new 500kV substation in Thanh My – Quang Nam, a 220kV substation in Phu My – Binh Dinh, and raise the capacity of the 220kV substation in Quy Nhon;

+ Delay the completion of the 220kV substations in Chan May, Phong Dien – Thua Thien Hue, in Tam Hiep – Quang Nam until the later stage depending on the demand for load.

- 2016-2020:

+ Delay the completion of the 220kV substation in Nhon Hoi until after 2010 because the Central Power Corporation is building a 240 mm2 dual cable 110kV line capable of 1100 MW that ensure power supply until 2020;

Move the 220kV substation in Hoi An to Duy Xuyen according to the electricity development planning of Quang Nam province and the electricity development planning in Central Highland and the vicinity.

+ Delay the completion of the 220kV substations in Cau Hai – Thua Thien Hue and Hoai Nhon – Binh Dinh until after 2020 according to the plan for electricity development in Central Economic Region.

4.8.2. Orientation to 2030

a) Power supply

Pursuant to the List projects to be commenced during 2021 – 2030 enclosed with the Decision No. 1208/QD-TTg dated July 21, 2011 of the Prime Minister, all hydropower sources in the region are used; the deployment of renewable electricity sources and new energy are studied but the stability is not ensured. Therefore, the development of thermal power shall be prioritized.

b) Electrical grid

Keep comprehensively developing the electricity transmission and distribution from the sources to consumers, especially high-voltage works by 2025, in particular:

- Build 3 500kv lines (620 km in length);

- Build 220kV works: 12 transformers 2,750 MVA, 22 transmission lines (1,744 km in length).

5.Planning on space allocation

Thua Thien Hue province: develop Chan May economic zone with advantageous traffic (bordered by 1A Highway and North – South railway to the north, Chan May deep-water harbor to the east). Focus on assembly industry, processing industry; build an international information center together with a system of services, tourism, finance, banking, and other industries.

Da Nang city shall be an important intersection in terms of transshipment and international traffic of this region, Central Highland, and the States of the Mekong river basin. Focus on the development of a clean and green industry that requires modern technologies; build an industry development zone (that research into technological innovation for factories), and modern technological infrastructure serving the transactions and traffic of goods, the finance, banking, securities, post and telecommunications centers of this region.

Invest in Chu Lai economic zone in Quang Nam province according to the “zone a zone” model. This is the only economic zone that undergoes the experiment of new policies to create an investment environment conformable with international practice for Vietnamese and foreign economic organizations. Invest in Dien Nam – Dien Ngoc, An Hoa – Nong Son, and Thuan Yen industrial parks in Quang Nam.

Quang Ngai province shall develop Dung Quat economic zone into a general economic zone with incentive policies. Focus on the development of oil refining, petrochemistry, and chemical industry; gradually develop mechanical engineering, shipbuilding, and steel refining and steel rolling.

Binh Dinh province shall invest in Nhon Hoi economic zone to boost socio-economic development by agricultural, forestry, and aquaculture processing, mechanical engineering, shipbuilding, petrochemistry, electronics, electricity materials; build an transshipment.

6.Solutions.

6.1. Capital solutions

- Make use of supportive capital from the central budget: ODA; aid for developing key industries of the region.

- Develop a system of incentive policy, organize propagation and investment promotion to encourage the people, enterprises, economic sectors, and foreigners to invest in industry.

- Take measure for encouraging enterprise to increase capital and improve investment efficiency.

- Apply favorable land use regulations to efficient enterprises with high added value.

6.2. Technology solutions

- Every year, each province in the region shall use 1.5 – 2% of its GDP for research, technology transfers and application;

- Focus on attracting projects of high technology and source technology from the US, Japan, and Western Europe. Provide special mechanism for attracting investors and utilizing the transfer and cooperation in science and technology, especially FDI, for science and technology research and application.

- Invest in developing trademarks and hi-tech products. Establish some hi-tech industries, products, and enterprises.

- Invest in laboratories up to national and regional standards to support the industrial development of the region.

- Develop some scientific research and technology development centers to form technological arboretum; enhance technology transfers within the region and within adjacent localities.

6.3. Labor sources solutions

- Provide special mechanism to attract high-quality workers both in Vietnam and overseas, especially the policies on wages, working conditions, support for accommodation and spiritual life.

- Expand labor cooperation with other countries and develop educational institutions that meet the demand for labor sources, especially the cooperation with reputable educational institutions at home and overseas to open educational institutions up to international standards in the region; focus on the disciplines serving the development of the knowledge economy, especially science and technology, tourism, services, etc.

- Focus state capital on education development; provide a mechanism to attract external labor sources to the development of education and vocational training.

6.4. Solution groups on market and products

- Enhance market survey and market development: break into potential markets such as BRIC nations (including Brazil, Russia, and India) apart from traditional markets such as China, Eastern Asia, ASEAN, the US, EU; input markets shall focus on the following elements: capital (keep efficiently utilizing investments from Eastern Asia, ASEAN, and the US), technology (focus on projects of high technology and source technology from the US, Japan, and Western Europe)

6.5. Solutions for developing ancillary industries

- Make development plan for industries; orient the development of ancillary industries.

- Facilitate ancillary industries by providing favorable conditions for land and raw materials.

- Create decisive products as the basis for the development of ancillary industries.

6.6. Solutions to regional cooperation in development

- Cooperate in the development of industrial products that replace imported products or for export (including processing and assembling industrial products).

- The parent factory is placed in one of the provinces in Central Economic Region, and subsidiary factories shall be placed in other provinces to professionalize or provide suitable technologies among the factories (processing forestry and aquaculture products, producing farming instruments, machinery and products serving people’s life, and other products).

- Build and commence regional large-scale projects to boost the development of other industries, especially inter-provincial projects such as mineral extraction and refining, building material production, metallurgy, chemical industry, etc.

6.7. Enhance industrial expansion, provide support for the development of medium and small industrial enterprises and rural industries

- Keep implementing the National industrial expansion program, focus on supporting programs: raise the managerial capability, provide vocational training in rural industrial facilities; build technical demonstration models, transfer technologies and scientific advances; seek economic cooperation; make detailed plans and build industrial infrastructure from central and local capital.

- Advise and assist enterprises in developing their trademarks, applying new technologies, and finding new market; provide training in development electronic commerce, commerce promotion; hold fairs, etc.

7.Primary policies

7.1. Market policies

- Support enterprises in participating in fairs, commerce promotions, investment attraction and market development. Enable enterprise to raise their marketing ability to sell industrial products.

- Hold conventions and seminars on business and market development strategies, hold international industrial fairs to enable enterprises to cooperate, find partners, and expand markets.

7.2. Investment encouraging policies

- Prioritize complete foreign investment, especially from multinational companies, approach modern technologies and advanced managerial skills.

- Provide incentives for investments made by Vietnamese investors overseas via the media and their relatives in Vietnam.

7.3. Science and technology policies

- Encourage the establishment of consultancy units, provision of brokering services and technological services.

- Apply tax exemption or reduction to enterprises that invest in technological innovation, reduce or write off tax on the investment in study on technological innovation and products capable of replacing imported products and being exports for a certain period of time (5 years).

- Provide incentives for accommodation, traveling, working instruments, benefits, etc. for elite managers and experts that work in provinces in this region.

Article 2. Implementation organization

1. The Ministry of Industry and Trade shall cooperate with relevant Ministries, agencies, and People’s Committees of provinces and cities in Central Economic Region in directing the industrial development according to the approved plan, and:

- Guide local governments to implement and plan the orientation of technologies and products in this Planning, and monitor the implementation of this Planning.

- Cooperate with the Ministries, agencies and local governments in reviewing the implementation of this planning annually, thence provide solutions for difficulties and boost the industrial development of this region.

- Request the Government to adjust policies to boost the industrial development of Central Economic Region.

2. The Ministry of Planning and Investment, the Ministry of Science and Technology, the Ministry of Agriculture and Rural development, the Ministry of Natural Resources and Environment, the Ministry of Transport, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Education and Training, the Ministry of Finance, branches of the State bank, within their area of competence, shall cooperate with the Ministry of Industry and Trade in encouraging foreign investments in industrial development, provide special credit supports for industrial enterprises in Central Economic Region; provide supports for enterprises in their operation, innovation, technology transfers; enhance vocational training to improve the labor sources of industry.

3. People’s Committees of the provinces and cities in Central Economic Region shall:

- Review and adjust the plan for local industrial development to suit the master plan on industrial development of Central Economic Region; include the industrial plan in annual plans, 5-year plans for local industrial development; cooperate with the Ministry of Industry and Trade and relevant Ministries in supervising the implementation of the Plan.

- Summarize the implementation of the plan every year, offer suggestions, and send reports to the Ministry of Industry and Trade.

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

Article 4.Ministries, ministerial agencies, Governmental agencies, People’s Committees of Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, and heads of relevant units shall implement this  Decisions./.

The Minister of Industry and Trade

Vu Huy Hoang