Decision No. 917/QD-TTg of June 11, 2013, approving the master plan on socio-economic development of Hoa Binh province through 2020

THE PRIME MINISTER

Decision No. 917/QD-TTg of June 11, 2013, approving the master plan on socio-economic development of Hoa Binh province through 2020

Pursuant to the December 25, 2001 Law on Organization of the Government;

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

At the proposal of the People’s Committee of Hoa Binh province,

DECIDES:

Article 1. To approve the master plan on socio-economic development of Hoa Binh province through 2020 (below referred to as the master plan) with the following principal contents:

I. DEVELOPMENT VIEWPOINTS

1. The socio-economic development of Hoa Binh province must conform with the overall development of the northern mountainous midland region and the Hanoi Capital region in the context of the country’s intensive and extensive international economic integration.

2. To mobilize to the utmost internal resources in combination with taking advantage of external resources for rapid development ; to raise the growth quality and step up economic restructuring toward quickly reducing the proportion of agriculture and increasing the proportion of industries and services in both GDP and labor structure.

3. To associate economic development with social development, eliminate hunger and reduce poverty, create jobs, improve the quality of human resources, narrow the socio-development gap between regions, and improve material and spiritual lives of people.

4. To closely combine economic development with rational exploitation of natural resources and protection of the eco-environment, ensuring sustainable development and creating landscape and environment for tourism development.

5. To associate economic development with development of the urban system and modernization of the infrastructure network.

6. To combine economic development with protection of national defense and security and maintenance of political stability and security as well as social order and safety.

II. DEVELOPMENT OBJECTIVES

1.General objectives

To strive for fast and sustainable economic development to turn Hoa Binh into a province which reaches the average development level of the whole country, a gradually modernized economic and social infrastructure network and a relatively developed urban system. Local people’s lives will be improved, the environment protected, the special cultural identities of ethnic groups preserved and promoted, and national defense and security assured.

2. Specific targets

a / Economically:

-                   The GDP growth rate will reach around 13%/year during 2013-2015 and 12%/year during 2016-2020;

If including the added value of Hoa Binh hydropower plant, the GDP growffi3f&te will be around 8.9%/ year during 2013-2^15 and 9.6%/year during 2016-2020;

-                   Economic structure by 2015 and 2020: Agriculture, forestry and fisheries: 23.6% and 16.4%; industries and construction: 39.7% and 45%; and services: 36.7% and 88.6%, respectively;

If including Hoa Binh hydropower plant, the economic structure by 2015 anok2f)20 will be: Agriculture, forestry and fisheries: 19.5% and 15.8%; industries and construction: 50% and 46.8%; and services: 30.5% and 37.4%, respectively;

-        Per-capita average income will reach VND 28-29 million/year by 2015 and around VND 60-61 million/year by 2020 at actual prices (if including contributions of Hoa Binh hydropower plant, per-capita average income will be VND 34-35 million/year by 2015 and around VND 63-64 million/year by 2020);

-        The average growth rate of total retail sales and turnover from consumer services will be 25%/year during 2013-2015 and around 20%/ year during 2016-2020;

-        The export value will reach USD 100 million by 2015 and around USD 230 million by 2020;

-        The total state budget revenue will be VND 2.2 trillion by 2015 and around VND 4 trillion by 2020;

-        The food output of seed plants will be around 360,000 tons by 2015 and around 37,000-37,500 tons by 2020.

b/ Socially:

-To reduce the natural population growth rate to around 0.88% by 2015 and around 0.84% by 2020. The population will be 832,360 by 2015 and around 870,500 by 2020;

-        To annually create jobs for 15,000-20,000 people during 2013-2015 and 22,000 people during 2016-2020 on average;

-        The fate of trained labor force will reach 45% by 2015 and 55-60% by 2020;

-        To reduce the rate of poor households to below 12% by 2015 and below 4% by 2020 (according to the new poverty line);

-        To reduce the rate of underweight malnutrition among under-5 children to below 18% by 205 and below 12% by 2020;

-        The rate of households having access to the national power grid will reach 97% by 2015 and 99% by 2020;

-        There will be around 7.57 and 8.5 medical doctors per 10,000 people by 2015 and 2020, respectively. All commune-level administrative units will have medical doctors by 2015.

c/ Environmentally:

-        To maintain forest coverage at 46%;

-        By 2015 and 2020, 80-85% and 100%, respectively, of production establishments will treat wastes up to environmental standards;

-        Garbage will be collected in Hoa Binh city and all townships in the province; by 2015, around 94% of solid waste will be collected and 77% of hazardous waste will be treated; by 2020, 100% of garbage will be collected and treated;

-        To supply hygienic water for 93% of rural population by 2015 and 100% of the population by 2020.

d/ National defense and security:

-        To link socio-economic development with strengthening of national defense and security potential, maintenance of political stability and social order and safety in the new period;

-        To further build and consolidate the all-people defense posture and people’s security and build the province into a firm defensive zone to meet the requirements in the new situation.

III. SECTORAL DEVELOPMENT ORIENTATIONS

1.       Agriculture, forestry and fisheries sector

To develop agriculture toward building a highly intensive, specialized cultivation and sustainable agriculture; to raise the quality, value and competitiveness of agricultural commodities and develop a hi-tech agriculture after 2015. The growth rate of the agriculture, forestry and fisheries sector is expected to be around 4.2%/year during 2013-2015 and around 3.8%/year during 2016-2020.

To intensify the application of sciences and technologies to production, research and hybridization to create new varieties and breeds and at the same time convert areas under inefficient plants and unstable one-crop rice cultivation into areas under plants with higher value and outlets in order to increase incomes for farmers. To expand areas under sugarcanes. To grow tea, especially snow tea. To invest in new varieties of groundnut and soybean. To develop fruit tree zones suitable to local conditions. To develop bonsai, flowers and aromatic trees for urban areas and industrial parks.

To step by step reduce small-scale and scattered animal husbandry; to develop animal husbandry toward commodity production on an industrial or a semi-industrial scale, ensuring epidemic safety; to raise the quality of animal breeds; to apply advanced breeding process for increasing productivity, quality and efficiency. To multiply the model of medium- and small-sized breeding farms.

To properly implement the program on forest protection and sustainable development. To further attract, and create conditions for, investment in planting raw-material forests and eco-forests.

To develop fisheries through diversifying aquatic products and taking full advantage of water surface areas; to apply advanced aquaculture technologies for increasing productivity, quality and efficiency. To combine traditional aquatic breeds with specialty aquatic species.

2.     Industry and construction sector

To mobilize to the utmost resources and advantages for accelerating effective industrial growth and developing industries toward modernization in association with eco- environmental protection. To prioritize the development of industries having competitive edge, labor-intensive, and hi-tech and export production industries.

To develop industries with a view to creating breakthroughs in the province’s growth and economic restructuring through increasing the proportions of industries and services, ensuring fast and sustainable development and increasing state budget revenues. To strive for the growth rate of added value of the industry and construction sector at 18%/year during 2013-2015 and around 15%/year during 2016- 2020.

To concentrate all resources on developing spearhead industries with natural resource ‘advantages (construction material production and agricultural and forest product processing), industries with labor and market advantages (in areas adjacent to Hanoi Capital such as electronics, textiles and garments, assembly of automobile and motorcycle components, production of liquor, beer and beverages, etc., and hi-tech industries in the future. To develop also pharmaceutical industry and small-scale hydropower generation (while satisfying environmental requirements), and cottage and handicraft industries, etc.

To expeditiously build and complete infrastructure for industrial parks and complexes, formulate mechanisms and policies to promote and attract investment as well as production in industrial parks and complexes, and create a favorable environment for investors in the locality.

To prepare human resources with professional qualifications and 'skills for industrial development and attract highly qualified human resources and experts to work in the province.

3.     Service sector

To develop the service sector to better satisfy socio-economic development requirements as a lever for the development of other industries.

To gradually increase the proportion of the service sector in GDP, ensuring harmonious development between the production and service sectors, actively contributing to economic restructuring and labor distribution in the province.

To develop the province’s service sector corresponding to its potential and exploit to the utmost advantages of different areas in the whole province. To identify types of service and commodities in which the province Has competitive edge for prioritized development investment.

To strive for the growth rate of added value of the service sector at 14.2%/year during 2011- 2015 and around 12.2% during 2016-2020.

To complete infrastructure and technical systems serving trade in the province along the line of combining the development of urban trade with the development of rural markets; to develop wholesale marketplaces for buying products from farmers, and create favorable conditions for the development of supermarkets and trade centers in Hoa Binh city and district centers and townships. To plan and upgrade rural marketplaces.

To form trade-service complexes in areas with favorable transport conditions for linking with centralized agricultural commodity production zones or industrial parks and complexes. To adopt mechanisms and policies to develop import and export and create conditions for enterprise to expand export markets.

To develop tourism into an important industry in the province. To prioritize the development of cultural and ecological tourism with a view to bringing into play the province’s potential and advantages and prolonging the stay duration of tourists. To associate tourist development with maintenance, conservation and promotion of cultural identities of ethnic minority groups.

To facilitate the development of transport, finance-banking, health care and education services and services for industrial parks and complexes and urban areas.

4.  Social sectors

a/ Education and training:

- To develop education and training in association with socio-economic development tasks. To increase the trained labor force and raise the quality of human resources to meet socio-economic development requirements in the coming period;

- To consolidate and maintain the results of primary education universalization among children of prescribed age and strive for secondary education universalization;

- To continue building schools up to national standards so that by 2020, over 70% of preschools, 100% of primary schools, over 70% of lower secondary schools and over 75% of upper secondary schools will reach national standards;

- To invest in and upgrade physical foundations and equipment of schools, continuing education centers, secondary schools, colleges and job training centers, and encourage all economic sectors to invest in vocational training;

- To improve the quality and qualifications of teachers and cooperate with universities and research institutes in training and scientific research. To adopt policies to attract talented scientists and technicians to permanently work in the province.

To step up socialization of education and training activities.

b / Health:

- To develop the health system of Hoa Binh province to be step by step modern, complete and synchronous from provincial to grassroots level to provide good health care for the people in Hoa Binh province and adjacent provinces;

- By 2015, over 60% of communes will be recognized as reaching national health standards and 100% of commune health stations will have medical doctors. By 2020, 90% of communes will be recognized as reaching national health standards;

- To further improve physical foundations and medical equipment of hospitals and build specialized hospitals. To encourage the development of non-public health establishments and socialization of health care activities. To improve qualifications of, and apply a preferential treatment regime to, medical doctors and workers, especially those working in disadvantaged areas, in order to attract them to work in these areas; to adopt policies to support training of medical workers who are ethnic minority people in deep-lying and remote areas. To properly and effectively implement national target programs on health care.

c/ Culture and sports:

- To conserve and develop the national traditional culture. To raise cultural characteristics in all political, economic and social activities and people’s daily-life activities. To increase the level of information and cultural enjoyment for ethnic minority people. To properly carry out the movement “All the people unite to build a cultured life.” By 2015, to maintain 80% of families and 70% of hamlets, villages and population quarters reaching cultural standards. By 2020, these figures will be 85% and 75%, respectively.

- To further implement the movement “All people do physical exercise,” organize various physical training and sports activities in the province and participate in large-scale sports activities. By 2015, 28% of the population will regularly do physical exercise, 18% of households will reach sports family standards; ' by 2020, these figures will be 35% and 25%, respectively;

- To prioritize investment in cultural institutions serving the community such as museums, libraries, cinemas, artistic monuments, and entertainment and recreation centers. To implement preferential policies for building a cultured life in disadvantaged, deep-lying and remote areas. To study and preserve the cultural quintessence of the 5 ethnic minority groups of Muong, Thai, Tay, Dao and H’Mong. To step up socialization of investment in the development of cultural and information activities;

- To further build physical facilities for physical training and sports activities serving professional competitions at regional, national and international levels. To mobilize more social resources for physical training and sports activities; to develop sports facilities at district and commune levels so that all districts and Hoa Binh city will have district-level stadiums.

d/ Science and technology:

- To develop science and technology as a motive force for promoting industrialization and modernization. To enhance the application of scientific and technological advances to renew technologies and raise the productivity, quality and competitiveness of products;

- To socialize activities of scientific and technological research and application and adopt policies to attract and encourage non- state economic sectors to develop science and technology;

- To adopt mechanisms and policies to attract talents in scientific research and improve qualifications of scientific researchers in units in the province;

- To step up the application of appropriate scientific and technological advances in all sectors and fields. To invest in information technology infrastructure for different levels so as to gradually apply information technology to management and administration work.

dd/ Hunger elimination and poverty reduction:

To tap potentials and mobilize to the utmost resources for socio-economic development; to effectively manage, use and integrate capital sources for infrastructure construction, production support and people’s life stabilization in extremely disadvantaged communes, communes covered by Program 229, communes in the Hoa Binh reservoir area and poor communes in the province; to improve material and spiritual lives of people So as to avoid relapse into poverty; to properly implement policies on medical, educational and social protection supports and incentives for poor households.

5. Infrastructure

To build a complete and modern infrastructure system for long-term socio-economic development. To concentrate investment in Hoa Binh city, towns and motive- force areas; in the immediate future, investment in other areas will be made under centrally supported programs.

To upgrade national highway 6 to grade-III road standards, particularly Xuan Mai-Hoa Binh section to reach grade-II road standards with 4 lanes; to build Hoa Lac-Hoa Binh city road to reach expressway standards with 4-6 lanes, and national highways running through the province and some provincial roads to reach grade-III or grade-IV road standards. To build some new roads and bridges to facilitate transport.

To upgrade power grids to ensure uninterrupted supply of electricity for production and people’s life. To concentrate investment in power supply networks for industrial parks and complexes, urban areas and tourist zones, etc. To improve and upgrade rural power networks.

To provide basic telecommunications services, prioritizing fast development of new and added-value services. To apply information technology in all state management agencies; all communes, wards and townships will have broadband internet access points.

To upgrade existing irrigation works and build new ones. To ensure stable water sources for 92% of farming areas; to properly implement flood drainage and water logging control. By 2020,100% of local population will have access to hygienic domestic water.

To build and upgrade rainwater and wastewater drainage systems in Hoa Binh city, Luong Son and other urban centers in the province. To treat industrial and hospital wastewater before discharging it into the common water drainage system. To step by step separate rainwater and wastewater drainage systems and build household wastewater treatment stations in urban centers. To attach importance to investment in water drainage areas and industrial-scale animal rearing areas.

To exploit and economically and effectively use water and mineral resources. To formulate and implement specific programs and measures to limit adverse impacts of flashflood, landslides and cracks, especially plans to remove people out of landslide-prone areas. To enhance capacity for environmental management systems at all levels. Investment projects must strictly comply with environmental impact assessment regulations and environmental protection commitments. To intensify examination and certification of environmental protection works and measures before officially commissioning the projects in accordance with law.

6. Combination of socio-economic development with national defense and security maintenance

To increase security and national defense potential and maintain political stability and social order and safety. To further consolidate and improve physical foundations and effectively use capital for investment in infrastructure for the former safety zones (under Program 229). To properly perform local military tasks and launch the movement “People protect the Fatherland’s security in the new situation”. To properly implement the movement of crime prevention and combat and restrict and gradually reduce traffic accidents.

IV. TERRITORIAL ORGANIZATION ORIENTATIONS

1.   Development based on sub-areas

Sub-area 1 (embracing Hoa Binh city and Ky Son, Luong Son and Bac Lac Thuy districts):

This is an urban-industrial area serving as a motive force for the province’s socio-economic development, in which investment will focus on urban, industrial, trade and service development to turn this area into a leading one to support other areas.

Sub-area 2 (to the east and south of the , province, embracing Kim Boi, Nam Lac Thuy, Yen Thuy and Lac Son districts): To build industrial parks and complexes along Ho Chi Minh road. To pay attention to the development of commodity agriculture in combination with the development of processing, small and cottage industries, traditional craft villages and rural trades. To develop trade, services and tourism and form trade centers in townships and townlets as a motive force for the development of each area.

Sub-area 3 (to the west and northwest of the province, embracing Mai Chau, Da Bac, Tan Lac and Cao Phong districts): To concentrate on the development of agriculture and forestry, especially growing specialty plants such as sugarcane, orange and tea, and forestation, in combination with exploitation of aquatic products and development of tourism, waterway transport and traditional trades and occupations.

2.   Urban development orientations

To accelerate urbanization, upgrade and expand a number of existing urban centers and build new urban centers and areas in association with trade centers and transport hubs, and develop industrial parks and complexes, ensuring a long-term vision for the master plan.

To plan and expand Hoa Binh city into an industrial, tourist and trade city up to grade-II urban center standards. To plan and prepare conditions for turning Luong Son township into a grade-IV urban center by 2020. To upgrade a number of townlets into grade-V urban centers.

3.  Development of rural, deep-lying, remote and extremely disadvantaged areas

To increase investment in infrastructure, giving priority to transport and agriculture sectors, support the development of traditional trades and occupations, associate agricultural production with small and cottage industries, support the preservation, processing and sale of agricultural food products. To properly implement centrally supported programs, restructure agriculture toward commodity production, step by step improve people’s lives, and maintain security and national defense.

V.      PROJECTS PRIORITIZED FOR ^VESTMENT STUDY

(See the attached Appendix).

VI.     SOLUTIONS FOR THE MASTER PLAN IMPLEMENTATION

1.       Raising investment capital

The total demand for investment capital is estimated at VND 154,110 billion (at actual prices) during 2013-2020, including VND 45,290 billion for the 2013-2015 period and VND 108,820 billion for the 2016-2020 period.

To satisfy the demand, it is necessary to apply policies and measures to raise to the utmost different capital sources. To ask for central supports for large infrastructure facilities; to further attract ODA and NGO sources; to increase investment in forms of BOT, BTO, BT and PPP for accelerating infrastructure development; to effectively use capital from land; to improve the investment environment, create advantages in attracting foreign investment and attach importance to attracting capital from non-state economic sectors, and step up socialization of health care, education, culture and sports activities.

2.   Stepping up administrative reform and building strong administrations at all levels

To accelerate administrative reform for creating a favorable environment for development investment and production and business activities in the province.

To review existing processes and procedures, annul unnecessary, overlapping and cumbersome procedures, and revise procedures to be simple, easy-to-implement, compliant with regulations and suitable to local conditions.

To improve capacity of state management agencies and their sense to serve people, intensify discipline, fight bureaucracy and corruption, ensure transparency and justice in dealing with matters related to organizations, enterprises and citizens in the province.

3.   Human resources development

To increase investment in education and training, health care and cultural sectors for improving people’s intellectual standards and health and increasing the rate of trained labor force.

To encourage all economic sectors to take part in vocational training. To properly organize forms of job promotion, support and placement. To upgrade and expand professional and vocational schools.

To promulgate regimes and policies to attract talents and skilled laborers to permanently work in the province; to accelerate training to suit the province’s socio-economic structure, avoiding surplus of laborers who work in the fields they are not trained in.

4.   Science and technology development and environmental protection

To take measures to associate science and technology development with production; to rapidly apply scientific, technical and informatics achievements to production and other fields such as management, administration, agricultural and aquatic product processing and other manufacturing industries. To adopt incentive policies for enterprises that apply new and advanced technologies to production.

To step up the application of plant varieties and animal breeds which are highly productive, disease-resistant and suitable to the province’s natural conditions. To take measures to manage and encourage enterprises and craft villages to build facilities for treating solid, liquid and gaseous wastes before discharging them into the environment. To refrain from importing obsolete equipment and technologies and equipment that cause adverse impacts on the environment.

To promulgate regulations and apply measures to prevent and handle acts of destroying or polluting the environment, especially in Hoa Binh city, townships, industrial parks and complexes, craft villages, concentrated population areas, entertainment and recreation centers, tourist sites, hospitals, car parks, etc.

5.   Coordinated development of Hoa Binh province and other localities in the region

To formulate and implement mechanisms for coordination and cooperation between

Hoa Binh province and ministries, sectors and localities in the region in specified fields and tasks for expanding markets and linking production and business activities of enterprises.

To coordinate with localities in the region in infrastructure construction, investment promotion, trade, tourism, socio-cultural affairs (higher education cooperation; construction of regional hospitals to meet health care demands of people in the provinces in tfe1 region; promotion of cultural and sports exchanges between ethnic groups to build relationship and solidarity in the northwestern region).

VII. ORGANIZATION AT SUPERVISION OF THE MASTERPLAN IMPLEMENTATION

1.   After the master plan is approved by the Prime Minister, Hoa Binh province should publicize and disseminate it to Party committees and administrations at all levels, sectors, mass organizations, enterprises and people in the province and at the same time formulate specific action programs for implementation of the master plan.

2.   To concretize the master plan’s objectives and tasks into 5-year and annual plans for effectively implementing the master plan. To annually assess the implementation of the master plan as a basis for reviewing and proposing according to the province’s competence adjustments and supplementations to the master plan to suit the province’s socio-economic development conditions in each subsequent period.

3.   All levels, sectors, socio-political organizations and people shall examine and supervise the review and adjustment of the master plan.

Article 2. The master plan serves as a basis for the formulation, adjustment, appraisal, approval and implementation of sectoral development master plans (the master plan on construction and master plans on the development of sectors, fields and products), socio-economic master plans of districts and Hoa Binh city and investment projects in the province.

Article 3. Based on the province’s socio-economic development objectives and orientations mentioned in the master plan, the People’s Committee of Hoa Binh province shall assume the prime responsibility for, and coordinate with related ministries and sectors in:

1.   Directing according to regulations the formulation, adjustment, appraisal, approval and implementation of master plans on socio- economic development of districts and Hoa Binh city; the construction master plan; and master plans on the development of sectors, fields and products to ensure comprehensive and synchronous development.

2.   Formulating medium- and short-term plans, key socio-economic development programs and specific projects in order to rationally focus and prioritize investment.

3.   Elaborating and promulgating according to their competence or submitting to competent authorities for promulgation mechanisms and policies to meet the province’s development requirements and comply with state laws in each period with a view to attracting and mobilizing resources for implementation of the master plan.

4.   Promptly submitting to the Prime Minister for consideration and decision adjustments or supplementations to the master plan to suit socio-economic development conditions in the province, the region and the whole country in each period.

Article 4. Within the ambit of their functions, tasks and powers, related ministries and central sectors shall:

1.   Guide and assist the People’s Committee of Hoa Binh province in formulating specific master plans; elaborate and submit to competent authorities for promulgation mechanisms and policies to meet the province’s socio-economic development requirements in each period for effectively using resources; promote and attract investment based on the socio-economic development objectives and tasks set out in the master plan.

2.   Study, review, adjust and add plans on investment in the relevant approved works and projects mentioned in the master plan to sectoral development master plans. Assist Hoa Binh province in allocating and mobilizing domestic and foreign investment capital sources for implementation of the master plan.

Article 5. This Decision takes effect on the date of its signing.

Article 6. The chairperson of the People’s Committee of Hoa Binh province, ministers, heads of ministerial-level agencies and heads of government-attached agencies shall implement this Decision.

Prime Minister

NGUYEN TAN DUNG

Appendix

LIST OF PROJECTS PRIORITIZED FOR INVESTMENT STUDY IN HOA BINH PROVINCE DURING 2013-2020

I. Centrally invested projects in the province    

Note: The locations, land areas, total investment amounts and investment capital sources for the above programs and projects will be calculated, selected and specified in the stages of formulation and submission of investment projects, depending on the demand for and capacity of balancing and raising investment capital in each period.-