Decision No. 950/QD-TTg dated August 01, 2018 of the Prime Minister on approving the scheme for development of smart sustainable cities in Vietnam in the 2018 – 2025 period with orientations by 2030

THE PRIME MINISTER

Decision No. 950/QD-TTg dated August 01, 2018 of the Prime Minister on approving the scheme for development of smart sustainable cities in Vietnam in the 2018 – 2025 period with orientations by 2030

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Government’s Resolution No. 36a/NQ-CP dated October 14, 2015 on E-government;

Pursuant to the Government’s Resolution No. 01/NQ-CP dated January 01, 2018 on tasks and solutions for implementing the Social - economic development plan and the state budget estimate in 2018;

Pursuant to the Directive No. 16/CT-TTg dated October 04, 2017 by the Prime Minister developing ability to access the Fourth Industrial Revolution;

Pursuant to the Prime Minister’s Decision No. 1755/QD-TTg dated September 22, 2010 giving approval for the Scheme for development of Vietnam into a country strong in both information technology and communications;

Pursuant to the Prime Minister’s Decision No. 392/QD-TTg dated March 27, 2015 giving approval for the Target program for development of information technology industry by 2020 with a vision by 2025;

Pursuant to the Prime Minister’s Decision No. 1819/QD-TTg dated October 26, 2015 giving approval for the National program for application of information technology to operations of regulatory authorities in the 2016 – 2020 period;

Pursuant to the Prime Minister’s Decision No. 84/QD-TTg dated January 19, 2018 giving approval for the Plan for achievement of green growth in cities of Vietnam by 2030;

At the request of the Minister of Construction;

DECIDES:

Article 1. The Scheme for development of smart sustainable cities in Vietnam in the 2018 – 2025 period with orientations by 2030 (hereinafter referred to as the “Scheme”) which consists of the following contents is hereby given approval.

I. VIEWPOINTS AND PRINCIPLES

- Firstly, the Scheme must be conformable with the policies of the Communist Party, the Government’s laws, national and local orientations, strategies, plans and programs for socioeconomic development and urban development, as well as specific conditions of each local area.

- Secondly, the development of smart sustainable cities is one of the most important contents of the Fourth Industrial Revolution by applying information and communication technologies (ICT) and using other appropriate means so as to improve the competitiveness, innovation, creation, transparence, good organizational structure and effective management of city governments, enhance efficiency in use of land, energy and other resources, improve and enhance quality of life in urban environment as well as encourage socioeconomic growth and development.

- Thirdly, people must be considered the key of the Scheme; people of any social classes may enjoy benefit from the Scheme, engage in investment, construction, supervision and management of smart cities as well as make outstanding contribution to the implementation of National strategies for green growth and Sustainable development objectives of Vietnam.

- Fourthly, based on scientific and technological achievements, modern technologies shall be synchronously applied with the aims of ensuring technology neutrality, the compatibility of applied technologies with different foundations, cyber information security, network security as well as personal privacy, and the synchronization of technological solutions and non-technological solutions.

- Fifthly, the unity and optimality of infrastructure facilities and existing ICT infrastructure facilities must be ensured on the basis of smart city ICT reference framework, relevant technical regulations and standards so as to ensure the interaction and synchronous operation of a smart city itself as well as between smart cities; key performance indicators (KPIs) must be employed to measure the performance of smart cities.

- Sixthly, the Scheme for development of smart sustainable cities is implemented by combining top-down method and bottom-up one. The central-level government shall take charge of general governance and formulating legislative documents and support policies and local-level governments shall proactively implement the Scheme. The private sector involvement and investment in development of smart cities are encouraged on the principle of accurate calculation of all expenses and risks as well as mutual benefits of related parties. Using or consuming domestic products and services is also encouraged. The Scheme must be piloted in a number of areas for learning experience before it is implemented in a large scale. The Scheme must be step by step implemented so as to achieve considerable and steady progress according to particular features of each urban area, and ensure the harmony between long-term development requirements of each urban area and urgent needs of residents in that urban area as well as the efficiency of both short-term and long-term investments. Unprompted or unorganized development of smart cities is not encouraged.

- Seventhly, the followings are prioritized in the 2018 – 2025 period: Formulation of smart cities planning; development and management of smart cities; provision of smart city facilities for organizations and individuals in smart cities on the basis of urban technical infrastructure system and ICT infrastructure system, including connected smart cities spatial database and integrated system of these two infrastructure systems.

II. OBJECTIVES

1. General objectives:

Develop smart sustainable cities in Vietnam towards green growth and sustainable development by taking advantage of and promoting existing potentialities and strengths as well as enhancing effective use of human resources; take the best advantage of natural resources and human resources so as to improve the quality of life and facilitate organizations and individuals in studying and making investment in construction and management of smart cities; minimize potential risks and dangers; increase efficiency of state management and urban services; increase the national competitiveness and promote the international integration.

2. Specific objectives:

- By 2020, establish legal grounds for development of smart cities and complete preparations for piloting smart city model in a number of urban areas and cities.

+ Review and formulate the general legal framework for development of smart sustainable cities, and promulgate policies for areas where smart city model is piloted;

+ Formulate the master plan for establishment of national standards serving the development of smart sustainable cities in Vietnam;

+ Formulate and pilot smart city ICT reference framework, build spatial urban data infrastructure integrated with land data on the basis of GIS database and others; develop appropriate models for managing population, transport, land, construction and investments in pilot urban areas; develop the national urban database – 1^ststage;

+ Instruct and apply the group decision support system to urban planning;

+ Assist at least 03 cities in obtaining approval for master schemes for development of smart cities, making investment in infrastructure and developing smart city facilities;

+ Assist at least 03 new urban areas in investment, construction and pilot application of solutions for smart cities;

+ Provide training programs in development of smart cities for 50% of Provincial Departments of Construction, Provincial Departments of Information and Communications, relevant provincial-level departments and People’s Committees of pilot smart cities;

+ Formulate pilot programs/ projects on smart cities in Mekong Delta and submit them to competent authorities for approval.

+ Achieve objectives set in the National program for application of information technology to operations of regulatory authorities in the 2016 – 2020 period1and those set in the Plan for achievement of green growth in cities of Vietnam by 20302.

- By 2025, implement the 1^ststage of the plan for piloting of smart city model.

+ Formulate and revise legal corridor and legislative documents based on preliminary and final reports on pilot smart cities; apply ICT reference framework to development of smart cities in Vietnam;

+ Announce national standards serving pilot smart cities with giving priority for standards for urban management, lighting, traffic, water supply and drainage, waste collection and treatment systems, electrical grids, disaster and risk warning system and ICT infrastructure system;

+ Develop spatial urban data infrastructure integrated with land and construction database and others on the basis of GIS data in pilot cities of 1^ststage;

+ Pilot application of the group decision support system to urban planning and urban planning information system in at least 03 cities of Class II or higher;

+ Assist at least 06 cities/ 06 economic zones in obtaining approval for master schemes for development of smart cities and developing smart city facilities serving residents in smart cities; establish pilot citizen connect centers associated with single-window sections;

+ Pilot the application of mechanism for issuance of certifications of smart cities;

+ Provide training programs in development of smart cities for 100% of Provincial Departments of Construction, Provincial Departments of Information and Communications, relevant provincial-level departments and People’s Committees of pilot smart cities;

+ Implement approved pilot programs/ projects on smart cities in Mekong Delta;

+ Take actions to achieve objectives set in the approved Plan for achievement of green growth in cities of Vietnam by 2030.

- By 2030, complete the 1^ststage of the plan for pilot application of smart city model, gradually apply mechanisms and policies in a large scale according to sectors and regions, and build a spreadable smart cities network.

+ Summarize the implementation of mechanisms and policies for pilot smart cities, revise and apply them in a large scale;

+ Establish the network of smart cities in the North, the Central Vietnam, the South and Mekong Delta, in which Hanoi City, Ho Chi Minh City, Da Nang City and Can Tho City shall be nuclear cities, and establish linkages between smart cities.

III. PRINCIPAL TASKS AND SOLUTIONS

A. TASKS AND SOLUTIONS

1. Group 1: Review and revise legislative documents, mechanisms, policies, technical – economic norms, and promulgate guidelines for development of smart sustainable cities.

- Formulate regulations or legal corridor on planning, investment, construction, management, supervision and operation of smart cities towards achieving objectives of green growth in cities, effective use of energy, reduction of pollution, response to climate change, civilized and cultured cities and sustainable development;

- Do research and establish KPIs for smart cities in conformity with international standards as well as particular features of Vietnam;

- Do research on formulation and provide guidance on application of smart cities ICT reference framework and establish mechanism for self-assessment of level of development of smart cities according to primary KPIs;

- Provide guidance on application of ICT to management of urban technical infrastructure database, construction order, land for developing urban areas, water supply and drainage, waste collection and treatment, green space and underground space, etc.

- Do research on formulation, provide guidance and establish policies on financing, supervision and delegation of authority over management and development of smart cities.

2. Group 2: Gradually establish and perfect national technical regulations and standards for smart cities, and promote general science researches and applied researches on smart sustainable cities.

- Review, study and promulgate national technical regulations, technical – economic standards, and technical guidelines for development of smart cities for management and application, ensuring synchronous and uninterrupted technical and database connection between state management systems and sectors such as urban planning, construction, land, transportation and population. These regulations and standards must be in harmony with international ones according to actual developments of the country;

- Promulgate regulations on rights and responsibilities for safety and security of smart cities data;

- Promote researches on theoretical and practical issues so as to provide scientific grounds for formulating and developing smart cities towards achievement of green growth and sustainable development;

- Promote creation, invention and intellectual rights protection concerning development of smart cities;

- Encourage doing research on development of applications, technologies and solutions for smart city planning, smart city management (including management of urban technical infrastructure, transport, education, early warning system and other sectors), smart city facilities serving organizations, individuals and residents in smart cities;

- Work out e-commerce solutions for organizations and individuals, and perfect policies for management of financial transactions on the Internet.

3. Group 3: Establish, connect, maintain and operate spatial urban data system and national urban database.

- Establish and develop urban database and spatial urban data systems according to levels, and gradually perfect them according to each city, regional and national level.

- Apply ICT to management of urban technical infrastructure database, construction order, land for developing urban areas, water supply and drainage, waste collection and treatment, green space, water surface area, natural landscapes, underground space and other sectors;

- Increase capacity for ensuring information safety and security as well as error handling.

4. Group 4: Apply intelligent technologies to urban planning and urban development management.

- Develop intelligent applications for supporting decision-making in course of formulating, appraising and announcing urban planning;

- Develop systems for providing planning information and receiving opinions and feedbacks, and apply smart management and supervision systems to management and supervision of urban planning implementation;

- Apply new theory and methods for planning formulation and urban development management.

5. Group 5: Develop smart city infrastructure.

a) Invest in and develop smart city technical infrastructure with immediate concentration placed on the followings:

- Develop smart lighting systems for smart cities;

- Develop intelligent transportation systems, driver guidance systems, command and control systems, and emergency handling systems;

- Develop smart water supply and drainage systems which aim to serve water pollution control and treatment as well as ensure water quality;

- Develop smart waste management systems for smart cities;

- Develop smart electrical grids;

- Develop disaster and risk warning systems.

b) Develop ICT infrastructure:

- Develop multi-function and concentrated information processing centers;

- Develop ICT infrastructure systems for smart cities;

- Increase knowledge about connecting and using smart terminal devices.

6. Group 6: Develop smart facilities for residents of smart cities.

- Provide smart public service utilities which must be fast, user-friendly and convenient for residents of smart cities;

- Develop information technology applications serving social and public safety management, environmental monitoring, crime prevention and other social management sectors, and going together with protection of personal freedom and privacy, and control of access to personal data;

- Develop applications of E-commerce, notify and permit online payment for services rendered for residents of smart cities;

- Establish citizen connect centers associated with single-window sections, and revise policies for provision of subsidies and incentives for online service models, including online educational services, online training services, online job search services, online healthcare services, urban cultural services, online entertainment services and other utilities;

- Develop warning utilities about risks, disasters, epidemics and other events that may cause considerable influence on residents of smart cities.

7. Group 7: Develop potential for developing smart sustainable cities.

a) Human resource training and development:

- Improve and increase capacity and skills, and define roles of smart citizens;

- Develop and combine training contents about smart cities of undergraduate and postgraduate programs with training programs in relevant majors such as urban planning, architecture, civil engineering, transportation, urban technical infrastructure, urban equipment and facilities, electrical and water systems, urban management and others;

- Develop and combine contents about development of smart sustainable cities with training and drilling programs for increasing capability of managing urban construction and development; these contents shall be implemented in cities of Class III or higher in the 2018 – 2025 period.

b) Development of research and manufacturing projects, and scientific and technological applications for smart cities

- Encourage innovation and start-up, establish foundations for connecting and encouraging experience and knowledge exchanges between startup projects in fields in connection with smart cities, green growth, response to climate change and sustainable development;

- Encourage private sector involvement and investments by enterprises in establishment and development of research and test centers or institutions for transfer of technologies serving smart cities and green growth;

- Establish linkages between training institutions, research centers or institutes, enterprises and city governments. Establish closed linkages in training, research, production and application;

- Increase domestic capability for doing research, developing, manufacturing and marketing hardware and software products serving smart cities;

- Do research on building materials, construction equipment and installations, urban equipment and facilities, and advanced, energy-saving and eco-friendly construction technologies.

8. Group 8: Intensify mobilization of domestic and foreign sources for investment and technical support.

- Diversify domestic and foreign sources of funding and employ public-private collaboration (PPP) model and other appropriate investment models to make in-depth investment in construction of technical infrastructure facilities, training and research institutions, modernize laboratories, invest in technical infrastructure for smart cities as well as equipment and facilities used for managing smart cities and perform other tasks of the Scheme;

- Promote and attract funding for technical support and international cooperation in research, development and effective application of technologies and solutions for smart cities;

- Promulgate policies on taxation, credit and land incentives and others so as to encourage and attract organizations and individuals to engage in development of smart cities.

9. Group 9: Actively promote international cooperation and transfer of technologies essential for development of smart sustainable cities.

- Intensify cooperation and exchange of information concerning development of smart cities with foreign countries and international organizations;

- Court support from international organizations for integration promotion to develop smart cities, cooperate with them to implement research schemes or projects with the aims of developing human resources as well as adopting advanced technologies;

- Do research and establish legal grounds and conditions convenient for Vietnam to make commitments and actively participate in ASEAN activities and international activities about development of smart cities;

- Attend international forums for development of smart cities so as to keep up with world trends to evaluate and develop smart cities.

10. Group 10: Disseminate information and increase awareness of smart cities.

- Promote dissemination of knowledge and increase of awareness of regulatory authorities, social – economic entities and communities about roles and benefits from smart cities; disseminate information concerning roles and meanings of smart cities on means of mass media so as to encourage people to proactively participate in development of smart cities;

- Promote talks about policies so as to respond to queries of enterprises and assist them in engaging in development of smart cities;

- Organize diversified training and drilling programs for increasing awareness and capability of communities as well as providing guidance on use of utilities and facilities of smart cities;

- Organize regular events on development of smart cities with the aims of providing information about actual developments, attracting attention and receiving opinions from regulatory authorities and communities;

- Periodically evaluate, commend and reward organizations and individuals for having excellent performance, and cities for having impressive achievements in course of building smart cities.

B. TASKS BY PRIORITY AND SCHEDULE FOR PERFORMANCE

07 groups of tasks given priority over remainders in course of implementing the Scheme and schedule and responsible authorities for performance thereof is given approval (as stated in the Appendix enclosed herewith).

IV. FUNDING

- Total expenditure for implementing the Scheme shall be determined by aggregating costs of each sub-scheme, plan, project or task approved by competent authorities.

- Funding for implementing the Scheme shall be covered by the following sources: domestic and international assistance, funding of enterprises, ODA, funding from state budget and other legal sources of funding as prescribed by laws.

- Funding from state budget shall be allocated in accordance with applicable laws.

V. IMPLEMENTATION ORGANIZATION

1. The Ministry of Construction shall:

- Act as the standing agency of the Scheme; cooperate with relevant ministries, authorities and local governments to effectively organize the implementation of the Scheme according to progress of its contents or tasks.

- Cooperate with the Ministry of Information and Communications to regulate the pilot application of smart city model; instruct and cooperate with local governments to review, evaluate, select and submit list of urban areas where smart city model is piloted, and submit smart city pilot programs or plans to competent authorities for approval; assist local governments in implementing smart city pilot projects; organize experience-learning meetings in each period and develop smart city model in a large scale in conformity with Vietnam’s conditions.

- Take charge and cooperate with ministries, authorities and local governments in doing research and formulating policies on state management sectors, and submitting them to competent authorities for promulgation, or promulgating them within its competence for application to pilot programs or projects.

- Take charge and cooperate with the Ministry of Information and Communications to develop technical infrastructure for smart cities.

- Conduct periodic inspection, and expedite ministries, authorities and local governments to implement the Scheme. Prepare and submit consolidated report on the implementation of the Scheme to the Prime Minister.

- Propose preliminary and final summing-up of the Scheme to the Prime Minister.

2. The Ministry of Information and Communications shall:

- Take charge and cooperate with the Ministry of Construction, the Ministry of Natural Resources and Environment, the Ministry of Science and Technology, and relevant ministries to direct and instruct local governments to apply smart city ICT reference framework; stipulate delegation of authority over urban database; formulate and promulgate technical regulations and standards for application of ICT to smart cities.

- Cooperate with the Ministry of Construction and local governments to pilot smart cities.

- Take charge and cooperate with the Ministry of Construction to construct and develop ICT infrastructure serving development of smart cities.

- Take charge and cooperate with relevant ministries and authorities to provide guidance on information security in conformity with specialized laws and regulations.

- Instruct ICT enterprises to ensure the readiness of ICT infrastructure to serve development of smart cities.

3. The Ministry of Science and Technology shall:

- Instruct and give priority to smart city development tasks in the course of implementation of the “Scheme for supporting national innovative startup ecosystem by 2025” given approved in the Decision No. 844/QD-TTg dated May 18, 2016 by the Prime Minister.

- Take charge and cooperate with relevant ministries and authorities to do research, formulate and revise national technical regulations serving development of smart cities in Vietnam.

- Take charge and cooperate with ministries, authorities and local governments in doing research and developing smart applications and solutions, formulating a mechanism for cooperation between research institutions and universities, research centers and enterprises.

4. The Ministry of Industry and Trade shall:

- Take charge and cooperate with the Ministry of Information and Communications to develop domestic electronic information and communication industries, and manufacturing activities so as to ensure adequate supply of equipment to construction, operation, maintenance and replacement of equipment of smart cities.

- Take charge and instruct consistent management and development of smart city applications in the fields of management and regulation of energy, smart electrical grids and others within the ambit of its assigned duties and functions.

5. The Ministry of Natural Resources and Environment shall:

- Take charge and cooperate with the Ministry of Construction, the Ministry of Information and Communications, the Ministry of Science and Technology and relevant ministries to direct, instruct and organize the development of spatial urban data system (including geographic data, land and property-on-land data, geological data and other spatial data developed from GIS) to meet the development of smart cities.

- Take charge and instruct the consistent management and development of smart city applications and sharing of natural resources and environmental protection-related data within the ambit of its assigned duties and functions.

6. The Ministry of Education and Training shall:

- Take charge and instruct training institutions to combine training contents about development of smart cities with their training programs in appropriate way.

- Take charge and instruct consistent management and development of smart city applications in training sector and others within the ambit of its assigned duties and functions.

- Cooperate with the Ministry of Construction, the Ministry of Information and Communications and relevant ministries and authorities to develop human resources serving the development of smart cities.

7. The Ministry of Planning and Investment shall:

- Take charge and cooperate with the Ministry of Finance, the Ministry of Construction, The Ministry of Information and Communications, the Ministry of Science and Technology and relevant ministries and authorities to determine and allocate funds from domestic sources and regulate foreign sponsorships for promoting the development of smart cities.

- Take charge of formulating policies on investment so as to attract investments in development of smart cities.

8. The Ministry of Finance shall:

Balance and allocate funds from state budget to ministries and local governments for covering expenditures incurred while performing tasks in the Scheme in conformity with each period and the list of priority tasks enclosed herewith.

9. Relevant ministries and local governments:

- The Ministry of Construction, the Ministry of Information and Communications, the Ministry of Transport, the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, the Ministry of Health, the Ministry of Education and Training, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the Ministry of Culture, Sports and Tourism, the Ministry of Public Security and relevant ministries and local governments shall continue performing assigned tasks as defined in relevant legislative documents and implementing programs or schemes in sectors relating development of smart cities approved by competent authorities.

- Based on task groups and priority tasks of the Scheme, these ministries and local governments shall review relevant programs, plans and schemes approved by competent authorities, formulate annual plans and period-based plans for development of smart cities within the ambit of their assigned duties and functions, make and submit long-term and annual budget estimates for implementing the Scheme to the Ministry of Construction, the Ministry of Planning and Investment, the Ministry of Finance and/or the Ministry of Science and Technology for preparing consolidated report thereof.

- These ministries and local governments must submit periodic reports on fulfillment of tasks, made according to the form regulated by the Scheme’s standing agency, to the Ministry of Construction by November 31 every year for consolidating and reporting the Prime Minister.

10. People’s Committees of provinces and central-affiliated cities shall:

- Direct their affiliates to do research and formulate plans for development of the smart city model in province in conformity with viewpoints and principles set in this Scheme, add contents about development of smart cities to local socioeconomic development plans; make, appraise and consider approving budget estimates, allocate funds from local-government budgets and mobilize financial assistance, sponsorships and other legal funding sources as assigned and regulated by applicable laws for implementing approved plans.

- Review, formulate and submit pilot programs/ plans on smart cities to the Scheme s standing agency for consideration and cooperation.

- Direct People’s Committees of affiliated cities to do research and formulate plans for development of smart cities.

- Submit periodic reports on fulfillment of tasks, made according to the form regulated by the Scheme’s standing agency, to the Ministry of Construction, the Ministry of Information and Communications and relevant ministries by November 31 every year for consolidation.

Article 2.ThisDecision takes effect on the signing date.

Article 3.Ministers, Heads of ministerial-level agencies, Heads of Government’s affiliates, Chairpersons of People’s Committees of provinces and central-affiliated cities and relevant organizations and individuals shall implement this Decision.

For the Prime Minister

The Deputy Prime Minister

Trinh Dinh Dung

APPENDIX

LIST OF 07 GROUPS OF TASKS BY PRIORITY OF THE SCHEME FOR DEVELOPMENT OF SMART SUSTAINABLE CITIES IN VIETNAM IN THE 2018 – 2025 PERIOD WITH ORIENTATIONS BY 2030
(Attached with the Decision No. 950/QD-TTg dated August 01, 2018 by the Prime Minister)

1The Prime Minister’s Decision No. 1819/QD-TTg dated October 26, 2015.

2The Prime Minister’s Decision No. 84/QD-TTg dated January 19, 2018.