Decision No. 68/QD-TTg dated January 18, 2017 of the Prime Minister approving the program on development of supporting industries during 2016-2025

THE PRIME MINISTER

Decision No. 68/QD-TTg dated January 18, 2017 of the Prime Minister approving the program on development of supporting industries during 2016-2025

Pursuant to June 19, 2015 Law No. 76/2015/QH13 on Organization of the Government;

Pursuant to the Government s Decree No.111/2015/ND-CP of November 3, 2015, on development of supporting industries;

At the proposal of the Minister of Industry and Trade,

DECIDES:

Article 1.To approve the Program on development of supporting industries during 2016-2025 (below referred to as the Program), with the following principal contents:

I. OBJECTS OF THE PROGRAM

1. Goal

To manufacture supporting industry products to serve domestic production and export, participating in global value chains. Supporting Indus

try products will meet 45% and 65% of domestic production demand by 2020 and 2025, respectively.

2. Specific objectives

During the period to 2020 with a vision to 2025, to focus on developing supporting industries in three key fields:

a/ Components and spare parts

To develop metal, plastic-rubber and electrical-electronic components and spare parts in order to meet 35% of the demand for components and spare parts for industries prioritized for development by 2020. By 2025, to meet 55% of domestic demand and promote the manufacture of products for hi-tech industries;

b/ Textile, garment and leather, footwear industries

To develop raw materials, materials and auxiliary materials for textile, garment and leather, footwear industries to meet the objective that by 2020 the percentage of domestic supply will reach 65% for the textile and garment industry and 75-80% for the leather and footwear industry.

c/ Hi-tech industries

To develop manufacture of special-use materials and supporting equipment, software and services for hi-tech industries; to develop enterprises supplying special-use supporting equipment and equipment for technology transfer to serve hi-tech industries. To establish machine maintenance and repair enterprises up to international standards as a premise for the development of enterprises manufacturing equipment and software for such industries. To establish a system of research and development and production of new materials, especially electronic materials.

II. SUBJECTS OF THE PROGRAM

1. Main implementers:

The Ministry of Industry and Trade and competent state management agencies in localities shall implement the Program’s contents (below collectively referred to as main implementers); receive and finalize funds for the implementation.

2. Beneficiaries:

Organizations and individuals participate in developing supporting industries.

III. CONTENTS OF THE PROGRAM

The Program will be implemented in the following 2 phases:

1. The 2016-2020 period:

a/ To connect and support supporting industry enterprises to become product suppliers of domestic and foreign customers; to promote and attract foreign investment in supporting industries.

- Objectives and targets:

+ To promote and support domestic and foreign market development for supporting industries. To establish effective connectivity between Vietnamese enterprises and multinationals and between domestic and foreign manufacturing and assembling companies;

+ To support about 1,000 Vietnamese enterprises to participate in the Program, of which 130 enterprises will become direct suppliers of enterprises manufacturing or assembling complete products;

+ Annually, to organize domestic and foreign supporting industry exhibitions. To support enterprises to participate in relevant exhibitions.

- Main activities:

+ To survey and assess demands and develop standards for supporting industry products;

+ To assess supporting industry enterprise capacity;

+ To provide technical consultancy and assistance for supporting industry enterprises;

+ To select and recognize enterprises with capacity and scale satisfying international requirements;

+To hold forums between Vietnamese supporting industry enterprises and domestic and foreign enterprises;

+ To develop and organize programs on attraction of foreign direct investment in supporting industries;

+ To organize seminars on promotion and attraction of domestic and foreign investment in supporting industries;

+ To disseminate information on supporting industries in the mass media;

+ To organize exhibitions and fairs on supporting industry products;

+ To support advertisement and brand registration for supporting industry products;

+ To support the seeking and development of domestic and foreign markets of supporting industry products;

+ To give consultancy for and support enterprises to invest in supporting industries.

- Funds: VND 115 billion, including:

+ VND 97.9 billion from the state budget;

+ VND 17.1 billion from other sources.

b/ To support enterprises to build management systems satisfying business administration and manufacturing administration requirements of global value chains.

- Target: About 2,000 enterprises will be provided with consultancy and training in business administration and manufacturing administration to meet international requirements, which will be successfully applied in 1,500 enterprises.

- Main activities:

+ To assess capacity and demand for application of management standards and systems in enterprises;

+ To make training plans and translate and compile documents on business administration and manufacturing administration for training enterprises;

+ To assess and recognize business administration and manufacturing administration systems.

- Funds: VND 231.7 billion, including:

+ VND 196.9 billion from the state budget;

+ VND 34.8 billion from other sources.

c/ To support training to raise the quality of human resources meeting manufacture requirements of supporting industry products.

- Target: About 500 enterprises will be supported in training of high-quality human resources; to intensify connectivity between universities, research institutes, training institutions and enterprises.

- Main activities:

+ To study and assess demands for human resources of supporting industry enterprises;

+ To develop training programs to raise knowledge and skills for state management staffs; managers and technicians of supporting industry enterprises;

+ To organize training courses on policy, management, technology and trade for state management staffs; managers and technicians of supporting industry enterprises.

- Funds: VND 100.9 billion, including:

+ VND 85.8 billion from the state budget;

+ VND 15.1 billion from other sources.

d/To support research and development, application, transfer and renovation of technologies in the experimental manufacture of components, spare parts and materials.

- Target: To support about 1,000 enterprises with research function, of which 500 enterprises will successfully apply and renovate technologies, conduct experimental manufacture and receive technology transfer under the Program.

- Main activities:

+ To introduce and disseminate a number of manufacturing technology processes and technical requirements on supporting industrial products;

+ To support the development and announcement of standards on raw materials, materials, details, components and spare parts; the development and announcement of standards and national regulations on materials, details, components and spare parts in conformity with international standards;

+ To connect domestic and foreign experts to directly support domestic supporting industry enterprises;

+ To support research, application, experimental manufacture and technology transfer for supporting industry enterprises and research institutions;

+ To support supporting industry enterprises in improving and renovating technology and conducting experimental manufacture;

+ To support enterprises in receiving technology transfer, buying copyrights, inventions and software, hiring foreign experts and training human resources;

+ To support projects on research and experimental manufacture of supporting industry products. To support partial funding for research and development for organizations or individuals that have invested on their own in technology research, development and application that bring about highly effective application results;

+ To support purchase of main equipment for laboratories so as to enhance the capacity of supporting industry development centers under the Scheme approved by the Ministry of Industry and Trade;

+ To support the development of criteria for assessing enterprises in terms of technology and supporting industry products;

+ To implement international cooperation in technology training, research and transfer.

- Funds: VND 625.4 billion, including:

+ VND 531.2 billion from the state budget;

+ VND 94.2 billion from other sources.

dd/ To build and operate a supporting industry website.

- Objective: To provide information, build databases and publish publications on supporting industries.

- Main activities:

+ To survey, build and update databases on the capacity of supporting industry enterprises and relevant policies, focusing on textile and garment, leather and footwear, electronics, automobile manufacture and assembly, mechanical engineering, supporting industry products for hi-tech industries, key mechanical products, farm machines and shipbuilding;

+ To buy necessary information and data;

+ To provide information about supply and demand on the market of supporting industry products;

+ To organize annual workshops to publicize information on national supporting industry production capacity;

+ To publish publications on supporting industries;

+ To maintain and operate the supporting industry website.

- Funds: VND 74.6 billion, including:

+ VND 74.6 billion from the state budget;

+ From other sources: VND 0.

e/ Funds for the 2016-2020 period

- Funds from the non-business source of the central budget and other sources for supporting industry development managed and implemented by the Ministry of Industry and Trade are estimated at VND 1,147.6 billion, including VND 986.4 billion from the state budget and VND 161.2 billion from other sources.

(Estimate details are provided in Appendix I to this Decision).

- Annually, based on the Program and the Ministry of Industry and Trade’s proposal, the Ministry of Finance shall balance funds from the budget for supporting industry development (for the central budget); provincial-level People’s Committees shall prepare and include fund estimates in their local budget estimates in accordance with the Law on State Budget and current regulations.

- Other funding sources:

+ Funds contributed by organizations and individuals engaged in development of supporting industries;

+ Funds contributed by organizations and individuals at home and abroad and ODA;

+ Other lawful funds in accordance with law.

To encourage the mobilization of funding sources outside the central and local budgets for the implementation of the Program.

2. The 2021-2025 period

The tasks set for 2016-2020 period will be further performed in the 2021 -2025 period on the basis of review and evaluation of implementation results, including:

a/ Connecting and supporting supporting industry enterprises to become product suppliers of domestic and foreign customers; promoting and attracting foreign investment in supporting industries.

b/ Supporting enterprises to build management systems satisfying business administration and manufacturing administration requirements of global value chains.

c/ Supporting training to raise the quality of human resources meeting manufacture requirements of supporting industry products.

d/Supporting research and development, application, transfer and renovation of technologies in the experimental manufacture of components, spare parts and materials.

dd/ Updating information on supporting industries.

e/ Funds for the 2021 -2025 period

Funds from the non-business source of the central budget and other sources for supporting industry development managed and implementing by the Ministry of Industry and Trade are estimated at VND 870.7 billion, including VND 750.2 billion from the state budget and VND 120.5 billion from other sources.

(Estimate details are provided in Appendix II to this Decision).

IV. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Industry and Trade shall:

a/ Elaborate and improve, and organize the implementation of, legal documents on supporting industry development under the approved Program;

b/ Prepare and include fund estimates for the implementation of the Program in its budget estimate for sending to the Ministry of Finance and the Ministry of Planning and Investment for consideration and arrangement and submission to competent authorities for decision under the Law on State Budget;

c/ Cooperate with domestic and foreign organizations and individuals in attracting funds and other resources to serve the development of supporting industries;

d/ Assume the prime responsibility for guiding, inspecting and supervising the implementation of the Program.

2. The Ministry of Finance shall:

a/ Assume the prime responsibility for arranging non-business funds for the supporting industry development in accordance with the Law on State Budget;

b/ Coordinate with the Ministry of Industry and Trade in guiding, inspecting and supervising the implementation of the Program.

3. The Ministry of Planning and Investment shall allocate investment development funds for implementing the Program’s tasks.

4. Provincial-level People’s Committees shall prepare and include fund estimates for the implementation of the Program in their local budget estimates in accordance with the Law on State Budget and current regulations; and study the establishment of supporting industry development centers.

Article 2.This Decision takes effect onthe signing date.

Article 3.Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related agencies shall implement this Decision.-

For the Prime Minister

The Deputy Minister

Trinh Dinh Dung

*All the appendices are not translated herein.