Decision No. 55/2008/QD-TTg dated April 28, 2008 of the Prime Minister approving the Scheme on construction of Dong Dang-Lang Son border-gate economic zone, Lang Son province

DECISION

APPROVING THE SCHEME ON CONSTRUCTION OF DONG DANG-LANG SON BORDER-GATE ECONOMIC ZONE, LANGSONPROVINCE

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 29, 2005 Investment Law;
Pursuant to the Governments Decree No. 108/2006/ND-CP of September 22, 2006, detailing and guiding the implementation of a number of articles of the Investment Law;
At the proposal of the Peoples Committee of Lang Son province in Report No. 16/TTr-UBND of May 3, 2007, and based on opinions of the Ministry of Planning and Investment in Official Letter No. 8581/BKH- TD&GSDT of November 22, 2007, approving the scheme on construction of Dong Dang-Lang Son border-gate economic zone, Lang Son province,

DECIDES:

Article 1. To approve the scheme on construction of Dong Dang-Lang Son border-gate economic zone, Lang Son province, with the following principal contents:

I. SCOPE OF DONG DANG-LANG SON BORDER-GATE ECONOMIC ZONE

Dong Dang-Lang Son border-gate economic zone is expected to be located in the north of Lang Son province, embracing Lang Son city, Cao Loc township, Dong Dang township, the communes of Thuy Hung, Phu Xa, Hong Phong, Tan Lien and Song Giap, part of Binh Trung commune of Cao Loc district, Tan Thanh and Tan My communes of Van Lang district, part of Van An commune of Chi Lang district, and Dong Giap commune of Van Quan district, with a total area of 394 km2.

II. DEVELOPMENT VIEWPOINT, OBJECTIVES AND MODEL OF DONG DANG-LANG SON BORDER-GATE ECONOMIC ZONE

1. Development viewpoint

Dong Dang-Lang Son border-gate economic zone will have specific geographical boundaries and a separate economic space with a favorable investment and business environment, functional sub-zones, socio-technical infrastructure works, residential and new urban areas, and public service and utility works, where preferential, incentive, stable and permanent policies as well as open management mechanisms will be implemented for domestic and foreign investors to feel secure when investing in the development of goods production and trading and service provision.

2. Development objectives

To build Dong Dang-Lang Son border-gate economic zone into a combined economic zone, with the Dong Dang border economic cooperation area (non-tariff area, industrial park, international border gate, etc.) playing a core role; to combine the development of tourism, services and other economic sectors with the development of urban areas.

To efficiently take advantage of its natural conditions and geographical, economic and political positions in international and domestic trade and services in order to promote socio-economic development in the northeastern mountainous region.

To speed up investment in the construction of the zone, which will, together with the northern key economic triangle, become a key economic quadrangle (Lang Son-Hanoi-Hai Phong-Quang Ninh) after 2010.

To create jobs and improve the quality of human resources.

To build a civilized and modern urban center and a friendly social environment; to raise the profile of Lang Son as well as Vietnam in the integration process: at the same time, to consolidate all-people defense and maintain security and order as well as national border sovereignty.

3. Development model

Dong Dang-Lang Son border-gate economic zone will be of 394 km2 as a combined and multifunctional economic, social, defense and security zone, in which border-gate economy will be a spearhead sector. The zone will be basically divided into two major functional sub-zones, a non-tariff area and a tariff area.

III. DEVELOPMENT ORIENTATIONS OF DONG DANG-LANG SON BORDER-GATE ECONOMIC ZONE

1. Orientations for service development and formation of a non-tariff area

- To tap to the utmost advantages of border-gate economy for trade development: To develop Dong Dang-Lang Son border-gate economic zone into a center of import and export with China and eastern and western European regions. To build Dong Dang-Lang Son into a large trade transaction, wholesale, retail, import and export center in the northeastern region; a large market promotion and investment mobilization center playing an important role in the whole country. In parallel with trade development, efforts should be also concentrated on development of such advantageous branches and services as transportation, forwarding, warehousing, import, export, tourism, trade, finance-banking, and post-telecommunications. To build a non-tariff area with specific incentive and management policies in order to promote the development of border gate-related services and forms of export processing.

- To concentrate on tourism development: Since Dong Dang-Lang Son area is connected with the border-gate economic zone, Den Mau-Dong Dang religious relics complex, Tam Thanh zone and Na Tam lake eco-tourism zone of Lang Son city, Dong Dang-Lang Son border-gate economic zone will have advantages in tourism development. Therefore, importance should be attached to the development of the following tourist products: eco-tourism; mountain climbing, camping, visits to caves and spots of beauty; cultural tourism, visits to historical and revolutionary relics, festivals; resort tourism; conference, fair, exhibition tourism; waterway tourism on Ky Cung river with Khanh Khe hydropower plant.

2. Industrial development orientations

- To concentrate efforts on the development of construction materials production based on limestone and clay-mine resources; the mineral exploitation industry based on bauxite ore mines; industries to exploit border gate advantages; and export-oriented industries.

- To create a favorable environment and apply incentive and flexible policies for domestic and foreign investors. To prioritize the attraction of large-sized enterprises with advanced technologies to take the lead in promoting the development of Dong Dang-Lang Son border-gate economic zone.

- To form an industrial park in Dong Dang-Lang Son border-gate economic zone.

- To develop highly competitive products.

- To prioritize the attraction of industries with advanced technologies without environmental impacts.

From now to 2020, to concentrate on the development of the following industries: construction materials production; mining; assembly, processing and packaging; automobile and engine and accessories manufacture; electronics and precise mechanical engineering; agricultural and forest product processing, etc.

3. Agriculture-forestry development orientations

Agricultural-forestry and rural economy will be developed in the direction of producing commodities to meet demands of Dong Dang-Lang Son border-gate economic zone and efficiently exploiting agricultural land areas. Agriculture will be restructured toward quickly increasing the husbandry proportion; developing valuable trees and animals (flowers, bonsai, clean vegetables, quality fruit trees) suitable to the conditions in the zone.

4. Development of social domains

- Population, labor:

By 2020, Dong Dang-Lang Son border-gate economic zone will have a population of around 200,000; an urbanization rate of around 70%; and total social laborers of around 150,000, accounting for around 60% of its population.

By 2020, laborers required for the zones development will be around 130,000, including around 20,000 for agriculture and forestry, around 50,000 for industry and construction, and approximately 60,000 for services. By 2020, laborers in industry and services sectors will represent 85% of total workforce of the zone.

- Education and training:

By 2020, 100% of education and training institutions in Dong Dang-Lang Son border-gate economic zone will reach national standards; a number of training institutions up to international standards will be built, job training will be increased, vocational training will be socialized, and job training joint venture or cooperation will be promoted.

- Health, public healthcare:

To increase forms of raising capital for the development of the healthcare sector; to allow some faculties and sections of hospitals and health stations in Dong Dang-Lang Son border-gate economic zone to enter into joint ventures to provide high-quality medical services; to encourage the establishment of international-standard private hospitals in the zone.

- Culture and information, physical training and sports:

To step up cultural activities and focus on building a cultured and civilized urban life imbued with traditional culture activities. To make physical training and sport activities regular in agencies, schools and residential areas; to diversify forms of community sports in urban areas and parks, etc; to raise the sense of protecting the eco-environment in the zone.

- Environmental protection, sustainable development assurance:

To attach special importance to protecting water sources; to plan and manage the environment. Economic, infrastructure and urban development programs should take into account environmental improvement issues; to enhance inspection and supervision of wastes from production activities, especially industrial production and tourism.

Wastewater treatment: To plan and build synchronous systems for collecting industrial and daily-life wastewater in Dong Dang-Lang Son border-gate economic zone; to attach special importance to industrial parks and urban and residential areas. To build 1-2 wastewater treatment facilities.

Solid waste treatment: Solid wastes will be collected and treated together with industrial and daily-life wastes. In Dong Dang-Lang Son border-gate economic zone, to build a facility for classifying garbage and treating wastes, even using garbage for producing micro-fertilizers, recycling garbage, destroying and burying garbage which cannot be processed, etc.

Dust, emission and noise treatment: All industrial parks, factories and enterprises in Dong Dang-Lang Son border-gate economic zone must have exhaust, dust and noise treatment equipment up to international standards; at the same time, to plant more trees for environmental protection and improvement. The construction rate in the zone must strictly comply with planning.

5. Infrastructure development orientations

To upgrade and build new important roads such as Lang Son city-Huu Nghi border gate motorway (6 lanes); to build and modernize Huu Nghi international border gate and Dong Dang railway station; to expand roads running to Tan Thanh border gate, roads to landmark 23-Bao Lam; and to build Hong Phong industrial park. To plan, and resettle for the construction of, the non-tariff area. To build and upgrade water drainage, electricity supply and public lighting systems in the zone.

6. Territorial space orientations

- Land use: To exploit to the utmost land areas in the border-gate economic zone, bare land areas and barren hills for industrial development; land in tourist sites for tourist development combined with the development of urban and residential areas; to protect landscape and the eco-environment simultaneously with conserving and embellishing existing eco-forests and limestone mountain forests; to reserve part of the cultivation land fund for agricultural development.

- Functional sub-zones: In the non-tariff area, to develop the following major activities under a free-trade mechanism: production of goods for export, commodity trade, trade services, investment and trade promotion, other services, such as goods transshipment, transportation, finance, banking, insurance, post and telecommunications, entry and exit, investment consultancy, technologies, recreation, etc. The non-tariff area has such major functional sub zones as an international border gate, an industrial park, a tourist site, and urban, administrative and residential areas. In these sub-zones, to reserve land for the construction of parks suitable to urban and tourist development; in addition, to arrange cemetery areas with a separate space to ensure urban sanitation and landscape in the zone.

7. Investment capital requirements and source:

The scheme implementation requires a large amount of investment capital. The province should regard peoples and enterprises contributions as major investment capital sources. Therefore, a suitable roadmap and appropriate investment promotion policies and modes should be developed to attract investment. State budget capital will be used only for key infrastructure works and programs to improve human resources.

8. List of projects prioritized for investment study up to 2010 (See the attached Appendix).

In the immediate future, investment study should be prioritized for the following projects:

- A master plan and a detailed planning on the development of Dong Dang-Lang Son border-gate economic zone.

- A motorway linking Lang Son city with Huu Nghi international border gate.

- Upgrading of Huu Nghi international border gate.

- Upgrading of Dong Dang railway station border gate.

- Construction of Hong Phong industrial park.

- Relocation and resettlement of local inhabitants for the construction of the non-tariff area of Dong Dang-Lang Son border-gate economic zone.

9. Construction planning phasing

- From now to 2010:

To complete preparation works and create conditions for rapid development in the subsequent period with the following principal tasks: to form legal grounds and open mechanisms and policies for Dong Dang-Lang Son border-gate economic zone; to step by step build basic infrastructure; to build infrastructure for functional sub-zones; to strongly promote the attraction of domestic and foreign investment projects.

- From 2011 to 2020:

To continue the synchronous development and modernization of the infrastructure system of Dong Dang-Lang Son border-gate economic zone; to improve its functional sub-zones according to the approved master plan and detailed planning of the zone. To implement according to the detailed planning and put into production and business projects in industrial park, tourist site, recreation area and non-tariff area, and other economic works. To further develop Dong Dang-Lang Son border-gate economic zone according to planning. To complete the construction of modern border gates, industrial parks, tourist sites, international trade and transaction centers, and other high-grade public-service works, etc.

IV. DEVELOPMENT MECHANISMS AND POLICIES FOR DONG DANG-LANG SON BORDER-GATE ECONOMIC ZONE

Mechanisms and policies applicable to Dong Dang-Lang Son border-gate economic zone should adhere to the following requirements and principles:

Requirements: To mobilize to the utmost domestic and foreign resources, namely capital, technology, technical workers, etc., in the most efficient and unprecedented manner, for investment in the development of Dong Dang-Lang Son border-gate economic zone according to the objectives and projects set forth in the planning: to bring into the fullest play the dynamism, creativity and autonomy of individuals and economic units inside and outside the province. To encourage and give incentives to investors to actively participate in the construction of the zone. At the same time, to ensure uniform, effective and orderly coordination among branches and levels in the management and administration of activities in the zone.

Principles: Dong Dang-Lang Son border-gate economic zone has been considered the one with specific security, defense and border characteristics; therefore, the zone will enjoy mechanisms and policies in accordance with the Governments Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones, and economic zones, and the highest incentives which have been being and will be applied in Vietnams economic zones, with the zones specific security and defense characteristics taken into account. These mechanisms and policies should be open, synchronous and permanent, suitable to the zones master plan and detailed planning and associated with the organization of a dynamic and effective management apparatus. These mechanisms and policies should be issued as legal provisions that are complete, permanent and compulsory so as to assure investors confidence.

Mechanisms and policies applicable to Dong Dang-Lang Son border-gate economic zone will be studied and specified in its Operation Regulation, which will be drafted and submitted by the Peoples Committee of Lang Son province to the Prime Minister for decision and promulgation.

V. MANAGEMENT MODEL OF DONG DANG-LANG SON BORDER-GATE ECONOMIC ZONE

1. Functions of the Management Board of Dong Dang-Lang Son border-gate economic zone

- The Management Board of Dong Dang-Lang Son border-gate economic zone is a state management agency under the Peoples Committee of Lang Son province, which performs direct state management of the zone under the Governments Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones, and relevant laws: manage and organize the provision of public administrative services and other support services related to investment, production and business activities to investors in the zone.

- The Management Board of Dong Dang-Lang Son border-gate economic zone shall be set up under the Prime Ministers decision; submit to the Lang Son province Peoples Committees direction and management of its organization, payroll, work programs and plans and operating funds; submit to relevant line ministries and branches professional direction, guidance and inspection; and closely coordinate with specialized agencies under the Peoples Committee of Lang Son province in managing the zone.

- The Management Board of Dong Dang-Lang Son border-gate economic zone will have the legal entity status, bank account and national emblem-bearing seal; the head office and full-time payroll; and state administrative funds, non-business funds and development investment capital allocated from the state budget under annual plans.

2. Tasks and powers of the Management Board of Dong Dang-Lang Son border-gate economic zone will be specified in a Prime Ministers decision establishing the Management Board under the Governments Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones, and relevant laws.

Article 2. To assign the Peoples Committee of Lang Son province to base itself on the socio-economic development objectives, tasks and orientations of Dong Dang-Lang Son border-gate economic zone mentioned in the approved scheme to coordinate with concerned ministries and branches in directing the formulation, submission for approval and implementation of the scheme according to the following regulations:

- To draft the Operation Regulation of the zone and submit it to the Prime Minister for consideration, decision on the zone establishment, and promulgation;

- After the Prime Minister issues a decision establishing, and promulgating the Operation Regulation of, Dong Dang-Lang Son border-gate economic zone, to formulate a scheme establishing its Management Board, enclosed with its functions, tasks, powers and organizational structure, and submit it to the Prime Minister for consideration and decision.

- To adjust and supplement the socio-economic development master plan, land use planning and land use plan of Lang Son province suitable to the development objectives of Dong Dang-Lang Son border-gate economic zone:

- To formulate and submit for approval according to regulations a general construction planning; to direct the formulation and approval of a detailed planning on the construction of functional sub-zones of Dong Dang-Lang Son border-gate economic zone;

- To perform the state management of investment projects in Dong Dang-Lang Son border-gate economic zone according to approved planning; to submit for approval or approve according to its competence a list of development investment projects and annual and five-year capital construction investment plans in the zone;

- To direct, and create conditions for, the Management Board of Dong Dang-Lang Son border-gate economic zone to operate and perform its assigned functions, tasks and powers;

- To direct Peoples Committees of concerned districts in carrying out ground clearance and resettlement; to direct provincial functional agencies in coordinating with the Management Board of Dong Dang-Lang Son border-gate economic zone in addressing matters related to development investment, management and operation of the zone;

- To formulate specific, rational and feasible solutions and plans to raise investment capital from different sources; to reduce the ratio of investment capital from the state budget (central and local budgets) suitable to its capital-balancing capacity, and adopt mechanisms and policies to mobilize appropriate resources in order to ensure the schemes feasibility. To attach importance to, and adopt solutions to simultaneously investing in and exploiting the land fund for re-investment in socio-economic development of Dong Dang-Lang Son border-gate economic zone. During 2007-2010, to adopt specific and attractive policies to raise and attract investment capital for each investment project and domain, first of all policies to mobilize resources from the land fund, attract investment capital from all economic sectors, enterprises, investors inside and outside the locality, and foreign investors;

- To study and promulgate, or submit to competent state agencies for promulgation (for issues falling beyond its competence) specific mechanisms and policies to mobilize and efficiently use resources, encourage and attract investment for the attainment of socio-economic development objectives, tasks and orientations set for Dong Dang-Lang Son border-gate economic zone.

Article 3. To assign concerned ministries and branches to perform the state management of Dong Dang-Lang Son border-gate economic zone; coordinate with and support the Peoples Committee of Lang Son province and the Management Board of Dong Dang-Lang Son border-gate economic zone in elaborating, adjusting or supplementing the above regulations, schemes and plannings as well as in studying, formulating and submitting to competent state agencies for promulgation specific mechanisms and policies applicable to the zone; speed up the investment in and implementation of regional works and projects important for the zones development in which investment has been decided; to study and consider the adjustment of, and addition of relevant works or projects to be invested in the zone to branch development plannings or investment plans.

Article 4. This Decision takes effect 15 days after its publication in CONG BAO.

Article 5. The president of the Peoples Committee of Lang Son province, ministers, and heads of ministerial-level agencies and government-attached agencies shall implement this Decision.

APPENDIX

LIST OF PROJECTS PRIORITIZED FOR INVESTMENT STUDY FROM NOW TO 2010
(Attached to the Prime Ministers Decision No. 55/2008/OD-TTg of April 28, 2008)

1. Motorway linking Lang Son city with Huu Nghi international border gate.

2. Upgrading of Huu Nghi international border gate.

3. Upgrading of Dong Dang railway station border gate.

4. Construction of Hong Phong industrial park.

5. Relocation and resettlement of local inhabitants for construction of the economic zones non-tariff area.

6. Expansion of Dong Dang-Tan Thanh route.

7. Infrastructure of Dong Dang border cooperation zone.

8. Surface water treatment and water supply for the economic zone.

9. Renovation and upgrading of water drainage and wastewater treatment systems in residential and urban areas and tourist sites in the economic zone.

10. Renovation and upgrading of public and urban lighting systems.

11. Garbage collection and processing.

12. A master project to support improvement of the quality of human resources in the economic zone.

Note: Positions, locations, occupied land areas, capacity, total investment capital and investment capital sources of the above projects will be considered and decided in the phase of formulating, evaluating and approving an investment project, depending on demand and resources in each period.