Decision No. 9028/QD-BCT dated October 08, 2014 of the Ministry of Industry and Trade approving the master plan for supporting industrial development by 2020, with a vision to 2030

THE MINISTRY OF INDUSTRY AND TRADE

Decision No. 9028/QD-BCT dated October 08, 2014 of the Ministry of Industry and Trade approving the master plan for supporting industrial development by 2020, with a vision to 2030

Pursuant to 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 Decree No. 92/2006/ND-CP of September 7, 2006 and Decree No. 04/2008 / ND-CP dated January 11, 2008 of the Government amending and supplementing a number of articles of Decree No. 92/2006/ND-CP on establishment, approval and management of master plan of socio-economic development;

At the request of the Director Department of Heavy Industry,

DECISION:

Article 1.Approving the master plan for supporting industrial development by 2020, with a vision to 2030

1. Development viewpoint

a) Development of supporting industry in accordance with conditions for social – economic development of the country and developmental trend of the world in order to meet the domestic needs of the processing, manufacturing and defense industries;

b) Development of supporting industry on the basis of creation of competitive advantage with other countries in the region and the world, in order to attract investment, access and meet the needs of multi-national corporations, increasingly participate in the production network and global value chains in these areas;

c) Industrial development and harmonious and sustainable support among industries, focusing on development in depth with breakthrough priority to create key elements for industrial development to ensure sustainable and environmentally-friendly development;

d) Development of supporting industry on the basis of mobilization of resources from all economic components, especially from enterprises with foreign invested capital and the local small and medium enterprise system.

2. Development objectives

2.1. General development

- Building and development of supporting industry to ensure the implementation of target by 2020 to make Vietnam basically become an industrial country having products of supporting industry with high competitiveness, meeting 45% of essential demand for production and consumption in the country and for export and exporting 25% of value of industrial production. By 2030, the products of supporting industry will meet 70% of demands for production and consumption in the country.

- By 2020, Vietnam has about 1,000 enterprises of supporting industry qualified for supply to assembling enterprises and multi-national corporations in the territory of Vietnam. By 2030, striving to reach a number of about 2,000 enterprises.

- About the value of industrial production, by 2020, the value of industrial production of supporting industry will make up 11% of value of industrial production of the whole industry and 14% by 2030.

2.2. Specific target

During the period till 2020 with a vision to 2030, focusing on development of supporting industry of three main areas:

a) Area of spare parts and components: development of metal, plastic - rubber and electrical - electronic spare parts and components to meet the target by 2020 to supply 60% of demands for spare parts and components for the industries in the territory of Vietnam. Particularly, the value of export of spare parts and components accounts for 30% of total industrial production value in this area. By 2030, supplying 80% of domestic demand, promoting the making of products in service of high-tech industries.

b) Area of industry supporting the textile and footwear industry: development of raw materials and ancillary materials to serve the textile and footwear industry to meet the target by 2020 that the percentage of domestic supply of the textile and footwear industry reaches 65% and 78% respectively with products of increasing value in service of production and export.

c) Area of industry supporting the high-tech industry: Development of production of materials, specialized supporting equipment, software and services for high-tech industries; development of enterprise system to supply specialized supporting equipment and transfer of technologies in high-tech industry. Formation of enterprises of machine maintenance and repair up to international standard as a premise for development of enterprises manufacturing equipment and software for such industry. Formation of system of research, development and production of new materials, especially the electronic materials.

3. Development orientation

3.1. General orientation

- Promoting the investment attraction into supporting industry from all economic sectors, especially from enterprises with foreign invested capital and small and medium private enterprises.

- Forming the local production network with many supply forms including enterprises meeting international standard on management of product production and quality in the areas of supporting industry;

- Prioritizing the development of products of supporting industry to meet the local demand with advanced and environmentally friendly technologies.

3.2. Specific orientation

a) Area of spare parts and components:

- By 2020, priority is given to the development of area of spare parts and components for the demand of local manufacturing and fabrication areas, especially the mechanical industry, automobiles, agricultural machinery, electronics and some high-tech industries;

- Supporting enterprises manufacturing spare parts and components to participate in the regional and international market with the target by 2030, Vietnam will become an important link in the global production network in each prioritized industrial area mentioned above;

- By 2030, focusing on manufacturing products of spare parts and components with required high technology. Improving capacity of research, design and fabrication of local enterprises. Completing capacity of local manufacturing of spare parts and components to meet the maximum demands for spare parts and components for manufacturing and fabrication industries in Vietnam and regional countries.

b) Area of industry supporting the textile - footwear industry:

- Prioritizing the investment attraction into the area of raw materials and ancillary materials for industry of textile – footwear to ensure the initiative in local production and increase the competitiveness of exported products;

- Developing the industry supporting the textile – footwear industry on the basis of making the most of advantages from international trade agreements in which Vietnam is a member;

- Promoting the advantage and potential of each locality, forming industrial clusters in industrial manufacturing to support the textile – footwear industry in the key economic areas.

c) Area of industry supporting high-tech industry:

- Priority is given to attract investment in fabricating material manufacturing such as: fabricated steel, plastic, rubber, composite and ceramics for high-tech industry, basic chemicals and specialized chemicals used in industrial biotechnology, new material industry and electronic materials;

- By 2020, developing the system of enterprises maintaining and repairing machinery, services of testing, consultation and support of technology transfer to the industrial enterprises of high technology. By 2030 manufacturing a number of products in the area of specialized machinery and equipment for domestic demand;

- Strongly developing human resources for industries supporting high-tech industry, including the human resources studying the technical implementation and production management in the relevant areas.

4.Supporting industry development planning

4.1. Area of spare parts and components

a) Area of metal spare parts and components:

+ By 2020: Improving the manufacturing capacity of basic fabrication mechanics such as casting, pressure processing, precision processing, chemical-thermal treatment, surface processing…to meet the technical requirements and production management of assembling enterprises and large corporations in Vietnam. Prioritizing the development of products: standard products for mechanic industries such as bolts, nuts, all kinds of bearings, gears, couplings, standard machine parts; die mold, casting mold, casting, plastic injection mold, welding jigs, machining jigs, checking and service of processing and manufacturing industries; Automotive spare parts with demand for large-scale production in the country inland, spare parts and components which must be replaced regularly; Components and component assemblies of the control, drive system, hydraulic system for machine tools, power machine, agricultural machine and complete equipment;

+ By 2030: Focusing on making products which require the investment in research, design and fabrication in the country for export. Prioritizing the development of products: 5C parts of engine including Cylinder block, Cylinder Head, Crankshaft, Camshaft, and Connecting rod; High-pressure nozzle, multi-fuel engines for prime movers and agricultural machine; Components and component assemblies of control structure and actuator used in automated equipment and industrial robots and specialized industrial equipment; Components meeting the high technical standards, used in the analysis and measurement equipment and medical equipment.

b) Area of electrical – electronic spare parts and components:

+ By 2020: Focusing on producing electronic components for local demand for assembly of industrial electronic products, specialized electronic equipment and proceeding to export. Prioritizing the development of products: Electronic - basic optoelectronic components such as passive components, semiconductors, quartz components; automotive electric – electronic components and component; Electronic components, electronic integrated circuits for consumer electronic devices, mobile phones, telecommunications equipment and other electronic products; electrical-electronic components and component assemblies for industrial equipment; Intelligent sensors, intelligent signal processing and controller used in the manufacture of machine tools, industrial machinery and automation equipment.

+ By 2030: Supporting and encouraging technology transfer of electrical and electronic component manufacturing from FDI enterprises to domestic ones. Completing the production capacity of electrical and electronic components and spare parts of domestic enterprises to meet the maximum demand for electronic components for the manufacturing industries of Vietnam and countries in the region.

Prioritizing the development of areas: specialized electronics, medical electronics, electrical-electronic components for high-tech industrial areas; promoting the investment attraction of specialized electronic component manufacturing projects and industrial electronic product making projects, especially high-tech products such as medical equipment and control and measurement equipment.

c) Area of plastic – rubber spare parts and components:

+ By 2020: Developing basic spare parts and components technical plastic and rubber with high quality and mechanical properties supplied for local manufacturing. Focusing on manufacturing of spare parts and components with high market capacity and specialized spare parts and components. Encouraging private enterprises to invest in this area. Prioritizing the development of products: Technical plastic components for manufacturing industries, especially auto manufacturing industry and electronic industry; technical rubber components for manufacturing industries, especially auto manufacturing industry and electronic industry.

+ Period 2030: Completing the design and manufacturing capacity of domestic enterprises for the production of technical plastic and rubber products of small size and low consumption of raw materials. Boosting the production and export of plastic – rubber components of which Vietnam has advantages. Investing in the production of high-tech plastic - rubber components to meet the special technical standards such as high durability, corrosion resistance, heat resistance and operating in special environments for supply to manufacturing industry.

4.2. Area of industry supporting the textile - footwear

a) Area of industry supporting the textile industry:

Focusing on production of fibers, fabrics and ancillary materials as substitutes for imported ones, making the most of advantages of commitments from international trade agreements and ensuring the initiative in production and increased consumption of garment products on the markets of developed countries.

+ By 2020: Attracting investments in the areas: natural fiber and yarn (cotton, jute, hemp, silk ...), synthetic fiber and yarn (PE, Viscose ...), fabrics, chemicals, auxiliaries, dyes and garment accessories (sewing yarn, buttons, labels, mex, zippers, elastic band ...). Attracting investment and improving the production capacity of the area of dyeing - finishing on the basis of the application of modern, non-toxic and environmentally friendly technologies.

+ By 2030: Focusing on making high quality and increasing value products. Continuing the investment attraction in the areas of industry supporting the textile industry, prioritizing the investment in developing types of fiber, yarn and fabric of high quality, application of high technology in accordance with international fashion trend.

b) Area of industry supporting the footwear industry:

Focusing on investment in producing raw and ancillary materials for exported footwear product and attaching special importance to investment in producing local fabrics used for producing exported footwear.

+ By 2020: Focusing on upgrade and relocation of present tanning establishments into central industrial parks, building wastewater treatment system in accordance with regulations of law on environmental protection. Applying the cleaner producing technologies in combination with the use of chemicals without or little toxicity during the tanning. Attracting investment in the area of producing leatherette, tanning, uppers, soles, insoles, molds and ancillary materials for footwear industry.

+ By 2030: Continuing the investment attraction in areas of industry supporting the footwear industry. Focusing on quality products and application of high technology in accordance with technology and market need in the new stage.

4.3. Area of industry supporting the high-tech industry

a) Area of materials in service of high-tech industries:

Encouraging the investment in high quality fabricated steel, stainless steel and electromagnetic steel sheet projects for supply to high-tech industries as well as manufacturing industries in the country.

Taking advantage of dominant development of Vietnam oil refinery industry (with the important oil refineries such as Dung Quat, Nghi Son, Vung Ro), focusing on attracting investment projects to produce virgin plastic pellets, synthetic rubber materials for high-tech industries as well as manufacturing industries in the country and proceeding to export.

On the basis of the reserves and capacity of mining a number of minerals such as quartz, ferrite, titanium, manganese, advanced ceramic materials, rare earth ..., calling for investment in the areas of electronic material manufacturing. Forming enterprises manufacturing electronic materials supplied for manufacturing of high-tech supporting industry.

Researching and developing the manufacturing of chemicals with high purity and quality, surface active substances and additives in service of high-tech industries, especially biotechnology industry and new material industry.

b) Area of specialized supporting equipment, software and services for high-tech industry:

Developing domestic capacity on installation, maintenance and repair of machinery and equipment for high-tech industrial manufacturing. Attaching special importance to investment in area of specialized equipment manufacturing in service of research and manufacturing of high-tech products. Developing and producing platform software, industrial software, controllers for industrial automation, electronic integrated circuit design. Modernizing and establishing the quality measurement and testing centers up to international standards. Forming counseling centers and supporting services for technology transfer in key economic areas.

5. Essential solutions and policies

5.1. Solutions

a) Completion of mechanisms and policies on development of supporting industry

Developing and adjusting the specific policies for manufacturing of supporting industry, particularly the policies to create the domestic market capacity in the relevant downstream sectors and preferential policies for enterprises manufacturing the supporting industry consistently with each stage.

Developing the supporting industry development planning in the key economic areas as a development orientation and effective association among localities in development of supporting industry.

Developing mechanisms and policies on intensive industrial parks and supporting industrial parks.

Reviewing and supplementing list of supporting industries in statistical system of national economic sectors, creating the most favorable conditions for enterprises to participate in manufacturing of supporting industry in accordance with international practices.

b) Promotion of investment attraction in development of supporting industry

Encouraging and supporting Projects of investment and making of products of supporting industry with large market, applying modern technologies to make products up to international standard and with high competitiveness.

Developing policies to encourage the companies with foreign investment capital and multi-national corporations that are investing in production in Vietnam to call for the supplying companies and satellite companies to invest in production in Vietnam.

c) Development of number and improvement of capacity of domestic enterprises of supporting industry

Developing programs to incubate enterprises of supporting industry to increase the number of manufacturing enterprises.

Developing programs to support domestic enterprises to become the suppliers for multi-national companies at different supply forms.

Developing policies to attract foreign senior experts for direct support to improve capacity for domestic enterprises of supporting industry.

Developing information supporting system for enterprises of supporting industry: development of portals and database on Vietnam supporting industry, providing information, policies, law, market, technology to help connect such enterprises with the market.

d) Development of science and technology for supporting industry

Developing technical barriers for products of supporting industry to protect domestic market and encourage investment in domestic production.

Innovating technological and scientific research system as the basis for the development of supporting industries. Encouraging research facilities to expand association and joint-venture with manufacturing enterprises and international cooperation.

Enterprises of supporting industry are supported from the Fund of national technology – science development support for the costs of technology transfer, application of management system as per international standard, purchase of copyright, patents, software, hiring of foreign experts and training of human resources for technological innovation.

Encouraging enterprises with foreign investment capital to transfer technologies through the development of research activities as well as development of supplying enterprise system in Vietnam.

e) Training of human resources of supporting industry

Developing high technical manpower training program for supporting industry, promoting the training of high-level and skilled workers for areas of supporting industry. Holding training courses of management, technology, trade…for managers of enterprises of supporting industry.

Encouraging enterprises and localities to hold on the spot training of manpower and support the vocational establishments at localities to provide training for high-skilled technical workers. For forms of short-term training or re-training of workers, the State will have policies to support the training costs by address for enterprises.

Formulating the human resource development scheme for supporting industry in the key economic areas. Supporting localities to carry out the human resource planning for supporting industry. Encouraging enterprises with foreign invested capital to participate in training of human resources. Encouraging the training establishments to cooperate with foreign partners in human resource training programs for development of supporting industry.

For supporting industrial parks and intensive industrial parks approved, organizing selection of on the spot labor training establishments under the selected specialties. Encouraging local workers to join the training and work directly in the supporting industrial parks.

f) Solutions to association and cooperation

Connecting enterprises with foreign capital investment to local enterprises through programs to introduce the demand and capacity of supply in the country. Strengthening the statistical works and database formulation on enterprises making the products of supporting industry as a basis for introduction and development of enterprise association.

Strengthening and improving the role of professional associations, government agencies and non-government to strengthen the association among enterprises of supporting industries.

Organizing and improving the professionalism of the supporting industry fairs, technology fairs, exhibitions and symposium on development of supporting industry.

Supporting enterprises of supporting industry in looking for business partners: organizing fairs and exhibitions on supporting industry, support of provision of information on domestic and foreign market.

g) Other solutions

Strengthening international cooperation in development of supporting industry through the signing of agreements and program of bilateral and multilateral cooperation on industry and supporting industry and relevant areas.

Developing the planning and encouraging investment in production of raw materials in service of supporting industry. Strengthening the exploration and survey of natural resources for effective and sustaining development of products of supporting industry.

5.2. Policies

- Projects to make products of supporting industry entitled to preferential and incentive policies under the Decision No. 12/2011/QD-TTg dated February 24, 2011 of the Prime Minister on issuing the list of products of supporting industry to be developed with priority and relevant incentive and encouraging policies.

- Medium and small-sized enterprises operating in the area of supporting industry will be entitled to the supporting programs under the Decision No. 1556/QD-TTg dated November 17, 2012 of the Prime Minister approving the scheme “Supporting the development of small and medium-sized enterprises in the area of supporting industry”.

Article 2. Implementation organization

1. The Ministry of Industry and Trade will coordinate with the Ministries and sectors concerned and People’s Committee of provinces and centrally-run cities to announce the master plan and direct the implementation of such master plan.

2. The Ministry of Planning and Investment, Finance, Science and Technology, Education and Training, Labor, War Invalids and Social Affairs ... based on their functions to coordinate with the Ministry of Industry and Trade to concretize policies and solutions specified in this Decision.

3. People s Committees of provinces and centrally-run cities, on the basis of the approved master plan, are responsible for coordinating, creating favorable conditions for projects and programs of development of supporting industry to be implemented in harmony and consistently with industrial development planning and master plan for social-economic development of localities;

4. The relevant professional associations will coordinate with the Ministries and sectors to propagate and provide guidance for member enterprises, especially enterprises in the area of supporting industry to formulate the business and production development plan in accordance the master plan.

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

Article 4.The Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairman of People s Committees of provinces and centrally-run cities and the relevant agencies shall implement this Decision.

The Ministry of Industry and Trade

Vu Huy Hoang

ANNEX

LIST OF PRIORITIZED INVESTMENT PROJECTS
(Issued with Decision No. 9028/QD-BCT dated October 08, 2014 of the Ministry of Industry and Trade)

1. Project to manufacture mold and jig of various kinds

2. Projects to manufacture components and spare parts for auto manufacturing and assembling industry.

3. Projects to manufacture mechanical parts (nuts, bolts, screws, bearings, gears, shafts, ...) with high precision and special technical requirements.

4. Projects to manufacture components and spare parts of engine, focusing on 5C parts of engine (Cylinder block, Cylinder Head, Crankshaft, Camshaft and Connecting rod).

5. Project to manufacture mechanical components and spare parts for power machine, agricultural machine and complete equipment;

6. Projects to manufacture technical plastic and rubber components with the precision and high technical standard, corrosion resistance, heat resistance.

7. Projects to manufacture electrical and electronic components, electronic integrated circuit.

8. Project to manufacture electronic components and component assemblies in service of consumer electronics products, electronic and telecommunication products and industrial electronic products

9. Projects to grow cotton plants, material plants, produce fiber, yarn, dying and textile mill and completion of application of advanced and environmentally friendly technology.

10. Projects to produce leatherette and tanning mill with application of advanced and environmentally friendly technology.

11. Projects to produce components and component assemblies used in equipment producing electricity from new energy and renewable energy.

12. Business incubators in areas of high-tech industry.

13. Projects related to specialized supporting equipment, services and software for high-tech industry.