Decision No. 32/QD-TTg dated January 13, 2015 of the Prime Minister approving the synchronous development and upgrading solution for the industries, sectors and value chains of production of competitive commodities such as: electronics and information technology, textile and garment, food processing, agricultural machineries, tourism and related services

THE PRIMEMINISTER

Decision No.32/QD-TTg dated January 13, 2015 of the Prime Ministerapproving the synchronous development and upgrading solution for the industries, sectors and value chains of production of competitive commodities such as: electronics and information technology, textile and garment, food processing, agricultural machineries, tourism and related services

Pursuant to the Law on organization of the Government dated 25 December 2001;

Pursuant to Resolution No. 11/2011/QH13 dated 9 November 2011 issued by the National Assembly regarding 2012 socio-economic development Solution;

Pursuant to governmental Resolution No. 10/NQ-CP dated 24 April 2012 promulgating the Government’s Action Solution for 2011-2020 socio-economic development Strategy, national development direction and duties for 2011 - 2015;

Pursuant to Decision No. 339/QD-TTg dated 19 February 2013 issued by the Prime Minister approving the Master Solution on economic restructuring in parallel with growth model conversion for quality, efficiency and competitiveness enhance for 2013 – 2020 [“2013-2020 MPER”];

In consideration of the proposal made by the Minister of Industry and Commerce,

DECIDES:

Article 1.To approve the synchronous development and upgrading Solution for the industry groups and value chains of production of competitive commodities such as: Electronics and information technology [“IT”], textile and garment, food processing, agricultural machineries, tourism and related services, detailed as follows:

I. VIEWPOINT

- Developing and upgrading selected industry groups and value chains of production of competitive commodities so as to promote the competitive advantages of selected industries, fields, in selected economic zones and local areas; elevating and promoting agricultural and industrial advantages, strong economic development of services and tourism; orientating an economic structure in which flagship economic sectors act as the focal points and diversified development for the business models and industries which are adaptable to the fast changes of the domestic and international socio-economic development situation, in line with the objectives of green, stable and sustainable economic growth;

- Synchronously developing joint-sector production clusters to accelerate economic structure shifting, enhance efficiency and connection among economic sectors, industries and economic zones in association with establishing value chains of production and promoted domestic value; promoting the advantages of every zone, converting and establishing rational and diversified economic zone structure in terms of economic sector, industries and development level.

II. OBJECTIVES

1. General objectives

Synchronous development and upgrade of selected industry groups and value chains of production for competitive commodities in five areas: Electronics, and IT, textile and garment, food processing, agricultural machineries, tourism and related services.

2. Particular objectives

- In 2015: Fulfilling the study and identification of potential areas, competitive commodities and appropriate models for industry groups serving pilot development of 5 industry groups in 5 areas: Electronics and IT, textile and garment, food processing, agricultural machineries, tourism and related services; fulfilling the review of development strategies and/or solutions for all industries/sectors and economic zones in order to define the orientation for investment attraction in line with the development of all industry groups;

- By 2020: Basically, 5 pilot industry groups are established in the defined potential areas; completed investment attraction mechanism and/or policy, improved corporate capability, connected and developed human resources, science and technology for upgraded value chain and established industrial groups shall be in place.

III. DUTIES

1. Upgrade of the value chain of production of competitive commodities related to electronics and IT, textile and garment, food processing, agricultural machineries, tourism and related services.

a) Electronic and IT industry

- Establishing the orientation on long-term development and attracting corporate investment to source technologies, key spare part production;

- Encouraging and attracting foreign investment to establish electronic industry groups, attract investment from other investors, simultaneously encouraging and/or drawing domestic companies to the mentioned industry groups in terms of supply of electronic parts and spare parts, which is connected to international production and/or supply chains;

- Enhancing research and development capabilities in electronics, IT; investing in improved research capacities for key laboratories on electronics and IT to meet research and/or testing demands for production; applying researches to production of electronic products funded by national scientific and technological projects;

- Focusing on the development of highly-qualified IT forces for IT industry; promoting joint training, supplying highly-qualified human resources, capable for controlling technologies connected between the training facilities and companies;

- Stimulating the development of hardware – electronic products; software; digitized data and IT services with high value-added.

b) Textile and garment

- Developing and attracting investment to material production for the textile and garment industry with regard to technology and/or equipment renovation, particularly embroidery, dyeing and finalization stages, so that related companies may shift their production from Cut-Make-and-Trim (CMT) to other production models such as original equipment manufacturer (OEM), Free-On-Board (FOB) or original design manufacturer (ODM), and finally original brand manufacturer (OBM);

- Encouraging the establishment and development of textile and garment industry group in potential areas; promoting joint production among related companies in the chain, from material supply to finished product distribution;

- Constructing material supply centers in Hanoi, Ho Chi Minh City and big cities to timely supply to the companies in the industry;

- Reinforcing the training system for textile and garment industry, particularly embroidery, dyeing, designing and fashion.

c) Food processing

- Reviewing, finalizing the solutions on material areas and food processing networks for every branch of the food processing segment to be in line with concentrated development of competitive and high value-added branches;

- Establishing and refining related mechanism and/or policies to connect food processing factories and/or enterprises with the material areas by means of production and distribution joint contracts, support farmers to approach and apply technical advances, make a close connection within the chain of production, processing and distribution;

- Improve the capacity on scientific research and technological application for agricultural research organizations, particularly the research institutes involving in competitive commodities such as: Rice, coffee, aquatic products.

d) Agricultural machinery

- Focusing on development of the projects on agricultural machinery manufacture, critical part and spare part production, investment inclining to high technology;

- Promoting the connection between research institutes and companies involving in researches and application; establishing the centers of agricultural mechanization demonstration and applied technology fairs so as to bring together application capabilities, technical demonstration, production promotion, for mass popularization of advanced technological equipment;

- Encouraging and attracting foreign agricultural machinery manufacturers to invest and/or cooperate with domestic companies to manufacture agricultural machinery and supply parts, spare parts in line with the development of mechanical industry and agricultural machinery industry;

- Issuing policies on support for domestic companies to invest in the manufacture of agricultural machinery and/or equipment and spare parts to improve localization of the sector.

dd) Tourism and related services

- Upgrading tourist infrastructure, particularly commercial port system, international flights, to connect to potential markets and public services;

- Improving tourist visa policies; developing the systems of e-visa issuance, visa issuance at the border checkpoints; expanding visa exempted subjects aiming at potential tourist markets; simplifying customs, immigration procedures;

- Organizing short-term programs of awareness raising and training aiming at the entities involving in the value chain of tourism; tourist trainings, tourist profession fostering courses addressing the employees working for tourist service agencies;

- Intensifying joint-departmental management measures applied to food and beverage and/or tourist shopping companies, supporting local areas to promote the brand names of their produce, handicrafts, and souvenir items for tourists.

2. Developing the branches of competitive commodity production, tourism and related services

a) Reviewing development strategies, solutions of various sectors/fields and local areas/territories, simultaneously popularizing the orientation for foreign investment attraction by sector/business field, local area/territory in line with the establishment and/or development of such industry groups; enhancing strategic investment promotion activities and setting forth appropriate stimulating, supporting policies to attract the companies to the sector establishment and development at potential areas;

b) Advocating all social entities to involve in infrastructure investment and development for typical industry groups in potential areas; making use of preferential funding to support infrastructure investment to cater production, distribution, commerce in line with environmental protection of the sectors/branches;

c) Encouraging and supporting the development of research, scientific and technology application agencies; human resource training entities, particularly those focusing on high-tech workers for related industry groups; establishing counseling and/or research centers on specialized technology serving activities of industry groups in potential areas;

d) Reviewing, adjusting and establishing human resource development solutions for all sectors in the way to segment them to be in line with sectoral strategy on competitiveness enhancement; developing the training and capacity building programs for high-grade worker vocational and training centers, in preparation for training of international-standard skilled workers to meet the demands of local industry groups;

dd) Upgrading and establishing typical industry groups in selected areas such as:

- Household electronics in Binh Duong; audio and visual electronics in Thai Nguyen, Bac Ninh, Bac Giang, Hanoi City, Hai Duong; IT products and related services in Hanoi, Ho Chi Minh City, Da Nang;

- Fiber weaving, textile and garments in Thai Binh, Nam Dinh, Ninh Binh, Bac Giang; textile and garment in Ho Chi Minh City (specializing in material supply and services) and the middle region (specializing in ODM);

- Aquatic product processing in the Southwestern provinces [Mekong Delta]; aquatic and agro-product processing in coastal and highlands provinces; agro-product processing in northern midlands provinces;

- Agricultural machinery and equipment in provinces/cities such as: Hanoi, Hai Duong, Hai Phong and Ho Chi Minh City, Long An, Dong Nai;

- Hai Phong – Quang Ninh tourism area for tourism products such as sightseeing tourism products and eco-tourism; Da Nang – Thua Thien Hue – Quang Nam tourism area for coastal retreat tourist compounds including recreational activities, sightseeing and cultural heritage tours; Khanh Hoa – Binh Thuan tourism area for long-stay coastal retreat tourism products, urban recreation activities, landscape discovery tours, sea sports; Binh Dinh – Phu Yen – Ninh Thuan tourism area for coastal retreat tourism products with wildlife nature; Ho Chi Minh City – Ba Ria – Vung Tau tourism area for coastal retreat and urban recreational services; Phu Quoc Island tourism area for coastal retreat tourism products, island discoveries.

IV. IMPLEMENTATION SOLUTIONS

1. Policy-related solution

a) Human resource training and development

- Supporting the connection among training centers, particularly between vocational training centers and companies through joint training programs; counseling details of the training programs; increasing the time of theory practice;

- Supporting vocational training centers in capacity building for trainers, regular upgrade of information and knowledge to meet labor demands of the companies;

- Promoting international cooperation, making good use of the support and/or cooperation programs with international organizations to build the capacity for vocational training centers.

b) Investment attraction

- Setting forth preferential policies to attract companies to invest in input stages, supporting industrial development for the production of competitive commodities in order to elevate the value chain of products and establish industrial clusters for such products;

- Setting forth preferential policies, attracting foreign direct investment, particularly from large investor groups and/or multi-national investment groups, to the projects/fields related to high-level production technology transfer and joint supply chains in connection with domestic companies;

- Setting forth typical preferential mechanisms to encourage companies to invest in various production sectors.

c) Scientific and technological development

- Setting forth typical mechanism to attract international source technologies through the activities related to foreign direct investment attraction, joint researches, technology transfer pertaining to input stages and spare part production to cater the production of competitive commodities;

- Promoting the application of transferred research results from national scientific and technological projects to the companies’ production and business activities; establishing and developing scientific and technological projects to upgrade the value chains of competitive commodities of the sectors;

- Supporting the capacity building carried out by specialized research agencies; investing to increase equipment and facilities for scientific and technological research agencies so that they are qualified for acquiring and controlling new technologies, being technologically creative to cater the development of prioritized industries and/or fields;

- Supporting companies in their researches, application, renovation of technologies and/or equipment to improve production outputs, quality and competitiveness, to be included in the global value chains, and their application of advanced management systems, harmonization of production and technical standards with international standards.

2. Supporting sub-solution executed through prioritized projects for the development of the above-mentioned synchronous development and upgrading Solution

a) General projects

- Reviewing development strategies and/or solutions of various sectors/fields and local areas/territories, simultaneously popularizing the orientation for foreign investment attraction by sector/fields, local area/territory to support the upgrade of the value chains of competitive commodities, establishment and development of industry groups;

- Refining the mechanism and/or policies to support investment attraction and upgrade of value chains of products, upgrade and development of industrial lines, tourism;

- Building capacity for research, scientific and technological development agencies to upgrade the value chains of competitive commodities;

- Supporting the connection between training centers and industrial/services companies on human resource training to upgrade the value chains of products, upgrade and establish  industry groups;

b) Projects sorted by industries

- Pilot development and upgrading the value chain of competitive commodities of electronics – IT industry;

- Pilot development and upgrading the value chain of competitive commodities of the textile and garment industry;

- Pilot development and upgrading the value chain of competitive commodities of the agricultural machinery industry;

- Pilot development and upgrading the value chains of competitive commodities of food processing industry;

- Establishing logistics system to promote sectoral connection for rice production, supply, processing and consumption in the Southern region;

- Pilot development and upgrading the value chains of competitive commodities of the tourist and related services industry;

- Raising awareness and improving tourism manners;

- Upgrading commercial ports serving tourism.

(Refer to the Appendix of this Decision for details of the projects)

Article 2. Implementation organization

1. Ministry of Industry and Commerce:

a) Taking the lead and cooperating with related Ministries, departments, agencies and People’s Committees of the provinces to develop the Action Solution of the synchronous development and upgrading Solution mentioned herein and specific assigned duties, projects;

b) Establishing a Management Board led by the Minister of Industry and Commerce and constituted by representatives of the related Ministries and departments, to develop the mentioned Solution. Operation regulations of the Management Board and its Standing Office shall be decided by the Minister of Industry and Commerce;

c) Expediting, inspecting and supervising the implementation of the synchronous development and upgrading Solution and submitting yearly summary report to the Prime Minister; evaluating, preliminarily and finally, the implementation and efficiency of the mentioned Solution; and proposing the issues and/or duties stated in the Solution to be amended and/or supplemented to the Prime Minister when required.

2. The Ministry of Finance, Ministry of Planning and Investment shall balance and allocate appropriate funds to implement the duties and supporting projects related to the development Solution for connected industry lines and upgrade of value chains of production of Electronics and IT; textile and garment; food processing, agricultural machinery; tourism and related services.

3. The related Ministries and departments:

a) Organizing the implementation of specific assigned duties and/or projects;

b) Reviewing periodically, evaluating implementation outcomes and reporting the progress of assigned duties and/or projects.

4. People’s Committees of the provinces shall:

a) Organize the development of the Project on commercial port upgrade to cater tourism at related provinces;

b) Cooperate with the Ministry of Industry and Commerce and related Ministries and departments in implementation of solutions and tasks of the Program.

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

Article 4.The Ministers and Heads of ministerial-level agencies, governmental agencies; Chairmen of the People’s Committees of the provinces, and related agencies shall implement this Decision./.

The Prime Minister

Nguyen Tan Dung

APPENDIX

THE PROJECTS SUPPORTING THE SOLUTION FOR SYNCHRONOUS DEVELOPMENT AND UPGRADATION OF INDUSTRIES/SECTORS AND VALUE CHAINS OF PRODUCTION OF COMPETITIVE COMMODITIES: ELECTRONICS AND INFORMATION TECHNOLOGY; TEXTITLE AND GARMENT; FOOD PROCESSING, AGRICULTURAL MACHINERY; TOURISM AND RELATED SERVICES
(Issued  with Decision No. 32/QD-TTg dated 13 January 2015 issued by the Prime Minister)