Decision No. 3447/QD-BCT dated August 22, 2016 of the Ministry of Industry and Trade on approval for commercial and industrial development in north central coast and central coast to the year 2025 and visions towards 2035

THE MINISTRY OF INDUSTRY AND TRADE

Decision No.3447/QD-BCT dated August 22, 2016 of the Ministry of Industry and Trade on approval for commercial and industrial development in north central coast and central coast to the year 2025 and visions towards 2035

Pursuant to the Government’s Decree No.95/2012/ND-CP defining functions, rights, responsibilities and organizational structure of The Ministry of Industry and Trade dated November 12, 2012;

Pursuant to the Government’s Decree No.92/2006/ND-CP dated September 07, 2006 and Decree No.04/2008/ND-CP dated January 11, 2008 on amendments to a number of Articles of the Government s Decree No.92/2006/ND-CP dated September 07, 2006 on development, approval and management of socio-economic development master plan;

At request of the Director of the Department of Planning,

DECIDES:

Article 1.To approve the planning for commercial and industrial development in the North Central Coast and Central Coast to the year 2025 and visions towards 2035 which are as follows:

1.Standpoints

a) Focus on commercial and industrial development in the North Central Coast and Central Coast of Vietnam to keep pace with the national commercial and industrial development and socio-economic development of provinces.

b) Promote commercial and industrial development according to economic sector shifting; Prioritize sectors having comparative and competitive advantage; promote key articles containing high regional value content and added value.

c)  Ensure regional liaison in investment and development, take full use of internal and external sources for comprehensive and sustainable commercial and industrial development.

d) Proactively speed up international integration; harmoniously develop in fields of commerce & industry and tourism and national culture, environmental protection and national defense and security.

2.Purposes and objectives

2.1. Purposes

To promote commercial and industrial development in the North Central Cost and Central Coast as a key region for production, trade and international cooperation; to appreciate the significance of commerce and industry to economic restructuring; to bring modernization and civilization to commercial and industrial development, to heighten environmental protection and social security; to turn the North Central Coast and Central Cost into commercial and industrial regions by 2025.

2.2. Objectives

a) Industry and construction contribution to regional GDP is expected to reach 40 - 41% in 2020, 41 - 42% in 2025 and 36 - 37% in 2035.

b) Industrial production average growth rate is expected to reach 16 - 17% per annum in the period 2016-2020, 17 - 18% in 2021-2025 and 15 - 16% in 2025-2035.

c) Average consumer service revenue and retail sale growth rate are expected to reach 16-18% per annum in period 2016 – 2020 and 16-17 % in 2020 afterwards. It is expected that the retail sale portion will account for 25-30% of the total retail sale by 2020 and 35 - 40% by 2035.

d) The export growth rate is expected to reach 28 -20% per annum in the period 2016-2020 and exceeding 18% in 2021-2035. The import growth rate is expected to reach 10 - 12% per annum in the period 2016-2020 and exceeding 9 -10 % in 2021-2035.

3.Orientations

3.1. By 2025

-Set up networks for industrial production and goods distributions; establish proper commercial and industrial infrastructures according to socio-economic development of the North Central Coast and Central Coast.

-Focus on advantageous economic sectors such as seafood processing, chemical, petrochemical and shipbuilding industries.

-Steadily promote high-skilled industries such as mechanical engineering, electrical equipment and electronic production, hi-quality material production; create particular product brands as a key production and exportation region of the country.

-Promote supporting industries in key sectors; diversify commercial supporting activities; set up information networks, and provide enterprises with market predictions; strengthen national collaboration via national and regional commercial information networks

-Boost production and importation to expand market,  diversify goods and improve the efficiency of production and importation according to sustainable development targets; promote service export as a vital sector of the region, especially tourism, transshipment and transits, seaport services, logistics services.

-Prioritize modern commerce, advance  quality and effectiveness of traditional commerce according to the scale, progress of industrialization, urbanization and rural development.

-Take full advantage of economic and commercial programs, diversify export methods such as temporary import for re-export, transshipment and transit.

3.2. Vision towards 2035

Focus on manufacturing sectors which require cutting edge equipment and technologies, green industry, hi-tech industry and industrial products of prestigious brand which are high quality and high value and meet developed countries’ advanced standards, and participate in parts of global industrial production.

-Keep pace with the commerce development of other countries, integrate into national commerce and international commerce.

4.Development planning

4.1. Planning for key industry development

a) Mechanical engineering, metallurgy

By 2025

+ Mechanical engineering

-Equip and modernize existing equipment, foster technological innovation and apply cutting edge technologies to mechanical design and fabrication.

-Develop mechanical engineering for use of agriculture and forestry, seafood processing and construction.

-Invest in high technology that  is environmentally-friendly and energy efficient used in shipbuilding facilities in Thanh Hoa, Nha Trang (Khanh Hoa province), Da Nang and Quang Ngai for offshore fishing.

-Focus on building container ships, oil carriers.

-Expand large-scale heavy industrial plants connecting to Dung Quat and Nghi Son deepwater ports for the manufacturing of oversize load equipment.

-Gradually set up supporting industrial facilities

+Metallurgy

Invest n steel and steel plate manufacturers that apply state-of–the art technologies; prioritize to manufacture alloy steel for mechanical engineering

Vision towards 2035

- Research, develop and cooperate with foreign countries to manufacture essential components by 2035 to move a step closer to regional and global mechanical engineering supporting industry.

-Develop supporting industry in mechanical materials.

-Apply state-of-the art technologies, invest in expansion of existing facilities and production technology; promote  large-scale green production.

b) Electrical equipment and electronics industry

By 2025

-Promote products on the list of prioritized products under the Decision No.49/2010/QD-TTg dated July 19, 2010 by the Prime Minister such as high-resolution screens, computers, dedicated electronic equipment, printers, washing machines, cameras, air-conditioners, refrigerators and  telecommunications equipment.

-Exploit  electrical  and electronics equipment production potential, prioritize supporting industries in component manufacture.

-Invest in software industry in Vinh, Hue, Da Nang and Nha Trang, science and technology centers,  invest in research centers and training facilities.

Vision towards 2035

Invest in high value-added sectors such as software, civil and dedicated electronics products which are environmentally-friendly and energy efficient.

c) Petrol refining, chemical petrochemical industry

By 2025

-Construct several oil refineries, chemical  and petrochemical plants and set up  refinery complexes. Operate Dung Quat oil refinery, launch Nghi Son refinery and petrochemical complex into operation; turn Nghi Son Economic Zone into a petrol industrial centre; consider executing petrol projects in Vung Ro and Hoa Tam industrial zone (Phu Yen)

-Increase the production capacity of car tires in Da Nang, construct car tire factories in Chu Lai economic zone; construct chemical plants in Nghe An, Quang Nam, Quang Ngai and Binh Dinh.

Vision towards 2035

Invest in equipment and technology innovation to produce high quality products to meet the market needs such as liquid wash; promote production of chemical intermediates used in pharmaceutical industry, veterinary medicines, growth stimulants, addictives used in food and cosmetics.

d) Food processing industry

By 2025

-Take full use of agricultural materials, establish industrial-agricultural complexes to boost the food processing industry development.

-Establish centralized food processing facilities in material-producing areas; diversify production scale and methods; promote the development of  handicrafts, trade villages and household business.

-Invest in high quality fruit processing plants in Nghe An, Quang Tri, Ninh Thuan, Binh Thuan and other provinces where fruits are available; renovate or construct breweries in  Quang Nam, Quang Ngai, Khanh Hoa, Binh Dinh, Ninh Thuan and Phu Yen; construct wood furniture plants in Quang Nam, Binh Dinh and Thua Thien –Hue.

Vision towards 2035

Renovate technologies and equipment for  improvement of product quality and competitiveness to meet the national and international needs of product ranges, models, quality, food safety and environmental protection.

e) Building material industry

By 2025

-Invest in technology renovation, productive capacity increase, quality assurance systems in building material manufactures.

-Invest in building material plant projects and expand existing plants in location where raw materials are available.

-Carry out cement projects and clinker grinding station projects in  Thanh Hoa, Nghe An, Quang Binh, Quang Tri, Thua Thien – Hue, Quang Nam, Da Nang, Quang Ngai and Binh Dinh; construct and expand existing sanitary ware plants in Da Nang, Binh Dinh and Quang Binh, invest in high quality pottery plants in Quang Binh and Thua Thien – Hue.

Vision towards 2035

- Promote science and technology development, apply modern equipment and technologies to production of building materials for quality enhancement, competitive price and competitiveness increase.

-Make selective investment, continue to produce technical ceramics and potteries for exportation, diversify product ranges to increase the product competitiveness.

g) Textile, footwear and leather industry

By 2025

-Focus on producing materials and accessories; fiber, yarn,  fabric, footwear and leather accessories; reduce processing, focus on producing finished high quality  products and diversify range of products for exportation.

-Modernize production lines, apply advanced technologies, improve product quality and increase product competitiveness.

-Construct fiber factories in Thanh Hoa, Thua Thien – Hue and Quang Ngai, textile complexes in Quang Binh, Quang Tri, Da Nang, Quang Nam and Binh Dinh; textile accessory manufacturing plants in Thanh Hoa, Nghe An, Ha Tinh, Da Nang, Thua Thien – Hue, Khanh Hoa, Binh Dinh and Quang Nam,  sneaker manufacturing plants in Da Nang, Quang Ngai, Binh Dinh and Binh Thuan.

Vision towards 2035

Establish supply chains among relevant enterprises to enhance domestic raw material value; focus on leather and footwear models and market needs; promote fashion industry and establish fashion design centers.

h) Mineral mining and processing

By 2025

-Mobilize sources and invest in projects for deployment and innovation in mining technologies and mineral processing technologies

-Focus on exploration and extraction of offshore minerals, carry out titanium deep processing

-Respect conditions for sustainable development, environmental protection and natural resource management.

-Invest in titanium extraction projects in Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Binh Dinh, Quang Nam, Ninh Thuan and Binh Thuan, ilmenite processing plant in Quang Tri, Binh Dinh and Quang Nam, man-made Rutile deep processing plants in Quang Binh and Binh Thuan.

Vision towards 2035

-Invest in mineral reserve exploration to ensure the reliability for mineral extraction projects

- Focus on mineral extraction and processing according domestic market needs.

i) Electric power industry

By 2025

-Stimulate electric power industry in the North Center Coast and Center Coast according to the national electricity planning.

-Punctually meet the needs according to the electric power load forecast  and electricity development strategies and overall planning and electricity planning of the province.

-Set up transmission grids according to the socio-economic development orientation of the province and operation of power plants; ensure the power quality and reliability.

-Diversify sources of power generation; prioritize green electricity such as windpower, solar energy, wave power.

Vision towards 2035

-Invest in electric power projects that apply advanced technologies for energy efficiency.

-Synchronize the electric transmission system according to sources of electricity and power load.

4.2. Commercial infrastructure planning

a) Markets

By 2025

-Focus on renovating and upgrading existing markets in districts and provinces with high urbanization rate and economic growth rate.

-Construct class I and class II markets as replacement for existing markets that will be removed to ensure urban landscape and environmental protection or due to overload.

-Construct wholesale markets in large cities, economic and industrial zones.

-Execute the Decision No.6481/QD-BCT  dated June 26, 2015 on national market master plan by 2025 and visions towards 2035 ( For wholesale markets, keep 03 existing wholesale markets,  renovate 02 and construct 02 on the existing ground, relocate 01, repurpose 01 and construct 17 new wholesale markets. For class-I markets: keep 18 existing markets, renovate 23, construct 17 markets on the existing ground, relocate 02 and construct 17 new markets.).

Vision towards 2035

Focus on renovating existing markets  by upgrading market class and equipping technical infrastructures and facilities to meet requirements for food safety, environmental protection and commercial civilization. Consider turning markets at the center of large cities into shopping mall or supermarkets.

b) Shopping malls and supermarket chains

By 2025

Diversify retail business models. Establish commercial complexes in Da Nang and Hue. Develop modern retail business models in class-II and class-III cities ( by 2020, there will be 420 supermarkets, 120 shopping malls, 10 more class-I supermarkets, 55 more class-II supermarkets, 7 more class-I shopping mall, and 15 more class-II shopping malls. By 2025, there will be 657 supermarkets, 182 shopping malls, 15 more class-I supermarkets, 68 more class-II supermarkets, 05 more class-I shopping mall, and 17 more class-II shopping malls).

Vision towards 2035

Boost the development supermarkets and shopping malls in cities and promote industrial zone development. Gradually eliminate traditional retail facilities in class-III cities or higher.

c) Logistics centers

By 2025

-Construct various types of warehouses, bonded warehouses, distribution facilities, logistics centers in coastal economic zones and economic zones in checkpoints.

-Apply the Decision No.1012/QD-TTg  dated July 03, 2016 by the Prime Minister on approval for nationwide logistics center development up to 2020 and orientation towards 2030 ( it is expected that there will be 01 class-I logistics center on the economic corridor along street No.8 and 12 A and the North Center Coast, 01 class-II logistics center along the Street No.9, 02 class-II logistics center along the Street 14B, 01 logistics center along the Street No.19 and South Central Coast).

Vision towards 2035

Stimulate to invest in warehouses, goods yards, and bonded warehouses, logistics centers in tariff zones and non-tariff zones, tax-suspension zones in coastal economic zones and economic zone in checkpoints.

d) Exhibition centers

By 2025

-Take full use of  and renovate existing exhibition centers in Da Nang into class-A centers (national class) and construct 02 more class-B exhibition centers  (regional class)in Da Nang.

-Construct 01 class-B exhibition center with the area of 50 ha in Vinh city serving the needs within the North Central Coast ( covering Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien – Hue).

-Construct 01 class-B exhibition center with the area of 20 ha in Quy Nhon city serving the needs of the Central Coast (Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan and Binh Thuan).

Vision towards 2035

Research and construct exhibition centers  in large commercial and economic centers that have significant influence and convenient transport networks according to the reality.

5.Spatial planning for commercial and industrial development

5.1.Spatial planning for industrial development along coastal economic corridors

-Focus on coastal economic corridors relying on seaports. Speed up seafood processing industries, petrochemical industry, mechanical engineering in manufacturing oversize and overweight products, shipbuilding, mineral mining and island economic development; Establish and promote the Dung Quat industrial zones, port industry, seafood processing and fishing along Chan May – Da Nang – Dung Quat; invest in light industries, fishing and transport services in Thua Thien – Hue – Dong Ha – and Quy Nhon – Van Phong- Nha Trang-Cam Ranh.

-Along Thanh Hoa – Sam Son: Promote processing industries, building material and petrochemical industry in Nghi Son port

-Along Vinh – Cua lo- Ben Thuy: promote port industry, shipbuilding, seafood processing and fishing.

-Along Ha Tinh – Bac Quang Binh: promote mining industry, metallurgy on the basis of Vung An port, mechanical engineering, electricity, energy and building material industry.

-Along Quang Tri – Thua Thien Hue: promote  mineral processing and mining  

-Along the coast connecting Da Nang and Dung Quat, Nhon Hoi to Nha Trang- Ninh Thuan-Binh Thuan: promote seafood processing, mechanical and petrochemical industries, mineral processing.

5.2.Spatial planning for industrial development along West-East economic corridors

-In economic corridor along the national highway 47 from Na Meo to Nghi Son: promote agro-forestry processing and consumer goods production.

-In economic corridor along the national highway No.7: produce consumer goods for exportation and processing industry serving the purpose of tourism.

-In economic corridor along national 8: promote seaport industry, shipbuilding and maintenance, consumer goods processing and production for exportation.

-In economic corridor along the national highway No.9:set up centralized industrial plantations (coffee, rubber, pepper) and promote processing industry.

-In economic corridor along the national highway No. 12: establish economic focal points such as economic zone in Cha Lo checkpoint, industrial zones and clusters for the development of various industries, handicrafts, tourism, import and export.

-In economic corridor along the national highway 71 linking A Dot economic zone- Ho Chi Minh street- National Highway 1A with Chan May port: promote consumer goods and exports processing industry , mechanical engineering and maintenance.

-In economic corridor along the National Highway 14B: promote processing industry, maintenance and transit services.

-In economic corridor along the National Highway 24: promote sugarcane industry, confectionery industry, rubber, wood paper and agro-forestry processing industries.

-In economic corridor along the national highway No.19: produce consumer goods for exportation, promote maintenance services and industrial plant processing industry.

-In economic zone along the National Highway 25: promote processing industry in intensive areas such as  high-yield rice field, sugar/tobacco plant/industrial plant intensive farms.

-In economic zone along the National Highway 26: promote agro and sugarcane processing industry, mineral water and building material production.

5.5.Spatial planning for commercial infrastructures

-In the North Central Coast (Thanh Hoa, Nghe An, Ha Tinh, Quang Binh and Quang Tri): Prioritize to invest in modern commercial infrastructures in coastal economic zone such as  Nghi Son, Dong Nam Nghe An, Vung An, Hon La, etc. To meet the need of transport, transshipment, transit of imports and exports and goods sales within the planned region and West-East economic corridor.

-Key economic zones in the Central Coast (Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh): Invest in commercial infrastructure commercial in Chan May-Lang Co, Chu Lai, Dung Quat and Nhon Hoi economic zone.

-In the South Central Coast ( Phu Yen, Khanh Hoa, Binh Thuan, Ninh Thuan): Promote up-to-date commercial infrastructure in coastal economic zones ( Phu Yen, Van Phong) and central urban complexes, renovate and upgrade traditional commercial models in island districts to meet the needs of residents on island districts.

-In the West of the planned region: Speed up the investment in commercial urban and international tourism projects  in Cau Treo economic Zone (Ha Tinh province), The Lao Bao special commercial-economic zone, construct socio-economic infrastructures, services area in Nam Can economic zone, Thanh Thuy Economic zone (Nghe an province), Na Meo EZ (Thanh Hoa) Cha Lo EZ (Quang Binh), Nam Giang EZ (Quang Nam and A Dot EZ ( Thua Thien Hue).

6.Resolutions

a) Completion of administrative reforms

-Create simple organization structures and simplify and issue specific provisions of economic and administrative management according to new management  methods.

-Transparently implement administrative reforms serving the local and enterprise ’s needs

b) Investment attraction

-Mobilize capital to invest in and renovate existing enterprises.

-Stimulate enterprises to issue shares and list shares on the stock market in order for indirect investment.

-Attract direct foreign investments in prioritized fields and projects,  apply transferred technology and valuable management and integration experiences.

-Disseminate, propagate and encourage overseas Vietnamese people to invest in commerce and industries, and introduce proper incentives policies.

c) Scientific and technological development

-Apply proper technology to new projects (including outward investment), do not import second hand or out-of –date equipment and technologies, apply advanced and state-of-the-art technologies to improve business effectiveness.

-Affiliate investment in high –tech projects from developed countries,  promote international cooperation in transfer and application of science and technology.

d) Human resource development

-Draw up plans for training enterprises’ managerial-level personnel.

-Collaborate with other provinces under this planning to construct vocational facilities and provide vocational training.

-Facilitate the involvement of private sectors in education and vocational training.

-Closely cooperate with foreign countries and establish educational facilities corresponding to labor demand, associate with domestic and overseas educational institutes to provide international education.

e) Supporting industry development

Focus on supporting industries in vital majors, facilitate land use and provide raw materials for supporting industry development.

f) Interregional cooperation and development

-Cooperate with enterprises and provinces within the planned region to execute projects for improvement of performance, effectiveness and efficiency.

-Propose and execute large-scale industrial and commercial projects as driving force for regional development.

7.Major policies

Market policy

-Partially fund for exhibition, commercial promotion, investment attraction, market expansion and penetration and marketing of industrial products.

-Fund for international market researches , allocate national commercial promotion budget for organization of business strategy and market development seminars or conferences  and international trade fairs.

-Intensify market inspection to ensure fair competition.

b) Investment incentive policy

-Offer investment incentives to industrial zones that having state-of-the-art  technologies.

-Give priority to wholly foreign-invested enterprises, especially multinational corporations in land lease and convenient location on industrial zones and clusters.

-Invest in product research and development , trail production and mass production.

c) Science and technology policy

-Promote to establish consulting firms, brokerage and science and technology services.

-Grant tax reduction and exemption to enterprises investing in equipment-technology innovation, and capital for technology research and development, products that satisfy quality standards for replacing imports and export within a certain period ( approximately 05 years).

-Apply incentive policies and international standards such as: ISO, HACCP, TQM, BVQI, SA 8000, etc., trademark registration, labeling and intellectual property right.

d)Import-Export Policies

-Allocate state budget for construction of infrastructures for import and export in coastal and checkpoint economic zones within the region under the approved planning.

-Apply capital assistance and investment incentives to logistics enterprises.

Article 2. Implementation organizations

1.The Ministry of Industry and Trade shall publish the "Planning for commercial and industrial development in the North Central Coast and Central Coast to the year 2025 and vision towards 2035” and conduct inspection of the implementation of this planning.

2.Relevant regulatory authorities shall cooperate with the Ministry of Industry and Trade and People’s Committee of provinces in the North Central Coast and Central Coast to propose and draw up policies facilitating the fulfillment of missions and objectives of this Planning.

3.Every People’s Committee of province of the North Central Coast and Central Coast shall:

-Cooperate with The Ministry of Industry and Trade and regulatory authorities to inspect the implementation of this Planning, provide directives and polices on investment attraction. To be prompt to construct infrastructures, especially in industrial zones, clusters, and transport infrastructures and information networks to facilitate investment.

-Review and adjust industrial development planning according to the regional planning.

-Consider incorporating regional industrial planning into annual and five-year industrial development plans.

-Cooperate in developing investment promotion program and consistently execute the plan for harmonious development.

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

Article 4. Ministries, Ministerial-level agencies, Governmental agencies, People’s Committees of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien-Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan and Heads of relevant authorities shall be responsible for the implementation of this Decision.

The Minister

Tran Tuan Anh

APPENDIX

LIST OF KEY PROJECTS
(Issued with the Decision No.3447/QD-BCT dated August 22, 2016 by the Minister of Industry and Trade)

Mechanical engineering and metallurgy

B. Electrical equipment and electronics equipment

C. Petrol refining and petrochemical industry, chemical industry

D. Building material industry

E. Food processing industry

G. Textile, leather and footwear

H. Mineral mining and processing

I. Markets

K. Supermarkets, shopping malls, logistics centers, exhibition centers