Decree No. 45/2012/ND-CP dated May 21, 2012 of the Government on industrial encouragement

DECREE

ON INDUSTRIAL ENCOURAGEMENT

Pursuant to the Law on Government organization on December 25, 2001

At the proposal of the Minister of Industry and Trade;

The Government promulgates the Decree on industrial encouragement,

Chapter I

GENERAL PROVISIONS

Article 1. Scope and subjects

1. Scope of regulation

This Decree provides policies on encouraging and supporting organizations and individuals in participating in the rural industrial production development and employing cleaner industrial production methods (hereinafter referred to as industrial encouragement).

2. Subjects of application

a/ Organizations and individuals directly investing in industrial production and handicraft production in districts, towns, townships, communes and wards affiliated to Type 2 and Type 3 cities, wards affiliated to Type 1 cities which have been converted from communes within the previous 5 years, including small and medium enterprises, cooperatives, artels and business households established and operated under law (hereinafter referred to as rural industrial facilities).

b/ Industrial production establishments employing cleaner production methods.

c/ Domestic or foreign organizations and individuals engaged in the management of industrial encouragement activities and performance of industrial encouragement services.

Article 2. Interpretation of terms

1. National industrial encouragement program means a set of national and local industrial encouragement contents and tasks in each period (usually of 5 years), which is approved by the Prime Minister to encourage industrial and handicraft development and cleaner industrial production, for the purpose of improving production efficiency and contributing to socio-economic and labor restructuring in localities.

2. Industrial encouragement plan means a set of annual industrial encouragement schemes and tasks, which specify implementation schedules and expected results to meet requirements of the national industrial encouragement programs in each period. National industrial encouragement plans shall be approved by the Minister of Industry and Trade while local industrial encouragement plans shall be approved by Presidents of Provincial People s Committee .

3. Industrial encouragement scheme mean a scheme formulated to implement one or several industrial encouragement activities specified in Article 4 of this Decree. An industrial encouragement scheme has its own objectives, contents and beneficiaries with definite implementation duration and funds.

4. Typical rural industrial products mean products turned out by rural industrial facilities, which are of high quality and usability, showing potential for production development and market expansion, satisfying some basic economic, technical and social criteria on the use of raw materials, employment creation, and satisfying the requirements for environmental protection.

5. Cleaner industrial production means the application of managerial and technological solutions aiming to raise the use efficiency of natural resources, raw materials, fuels and supplies; minimize emissions and reduce environmental pollution increase rate.

6. Industrial encouragement services mean services that need to be performed in order to carry out industrial encouragement activities specified in Article 4 of this Decree.

Article 3. Objectives of industrial encouragement activities

1. Mobilizing domestic and overseas resources to directly invest in or support organizations and individuals engaged in industrial or handicraft production.

2. Contributing to economic restructuring towards industrial and handicraft development, aiming to create jobs, increase incomes, restructure the social workforce and contribute to the building of a new countryside.

3. Encouraging and supporting cleaner production at industrial production establishments, in order to improve the use efficiency of natural resources, raw materials, fuels and supplies; minimizing emissions and reducing pollution increase rate; and protecting and improving the quality of the environment and human health.

4. Supporting organizations and individuals of all economic sectors in investing in the sustainable development of industrial and handicraft production for the purpose of raising the competitiveness and efficiently implement the international economic integration plan.

Chapter II

INDUSTRIAL ENCOURAGEMENT POLICIES

Article 4. Industrial encouragement activities

1. Providing vocational training based on the demand of industrial establishments so as to create employments and improve skills for employees. The vocational training form is mainly short-term practical courses.

2. Providing supports for raising management capability, the awareness about and capability of conducting cleaner industrial production through consultancy, training and organization of seminars, forums and domestic and overseas surveys, visits and study tours. Supporting the establishment of rural industrial enterprises. Supporting the expansion of consumption and export markets for rural industrial products.

3. Supporting the building of technical demonstration models; transferring technologies and applying modern machinery and scientific and technological advancement to industrial and handicraft production; building experimental models of cleaner production.

4. Developing typical rural industrial products through organizing votes for typical rural industrial products. Supporting the organization of fairs and exhibitions of rural industrial goods and handicrafts; assisting rural industrial facilities in participating in fairs and exhibitions. Supporting the development and registration of brands, investing in showrooms for marketing and product display, and other trade promotion activities.

5. Providing consultancy helping rural industrial facilities in: making investment and marketing projects; conducting production, finance, accounting and human resource management; establishing businesses; forming production and business associations; designing products and packages; and applying new technologies and equipment. Providing consultancy, guidance and support for organizations and individuals in approaching investment incentives, preferential policies on land, science and technology, financial, credit policies, and other preferential policies of the State.

6. Providing information on industrial development and industrial encouragement policies and market information, disseminating experiences and typical models of production and business and cleaner industrial production via television and radio programs, newsletters or publications; building database and websites, leaflets and brochures or other means of mass media.

7. Supporting economic association and cooperation, developing industrial complexes, and moving establishments causing environmental pollution:

a/ Supporting industrial establishments in establishing professional associations. Supporting the formation of associations among industrial enterprises;

b/ Supporting the formulation of detailed planning on building infrastructure in and attracting investment to the development of industrial complexes;

c/ Providing consultancy and interest rate support for moving of polluting rural industrial facilities to industrial parks and complexes. Supporting the building of environmental pollution treatment systems in industrial complexes and rural industrial facilities.

8. International cooperation in industrial encouragement, including:

a/ Formulating and participating in industrial encouragement activities and cleaner production in international cooperation programs and projects;

b/ Exchanging experience in industrial encouragement, industrial development promotion, industrial complex management and cleaner production with foreign organizations and individuals in accordance with Vietnamese law;

c/ Building capability and raising qualifications of cadres engaged in industrial encouragement under international cooperation programs and overseas study programs and schemes.

9. Enhancing capability of industrial encouragement management and organization

a/ Formulating programs, preparing materials and organizing professional training courses for industrial encouragement officers;

b/ Organizing domestic study tours, seminars and conferences on summarizing industrial encouragement activities; developing, maintaining and disseminating the database and websites about industrial encouragement and cleaner production;

c/ Investing in the facilities and working instruments for regional and provincial industrial encouragement centers. Building and maintaining the network of industrial encouragement collaborators;

d/ Formulating industrial encouragement programs in each period and annual industrial encouragement plans;

dd/ Inspecting, supervising and guiding the implementation of industrial encouragement programs, plans and schemes.

Article 5. List of industries and professions eligible for industrial encouragement policies

1. Organizations and individuals specified at Points a and b Clause 2 Article 1 of this Decree, that invest in the following industries and professions, are eligible for industrial encouragement policies under Article 4 of this Decree:

a/ Agricultural, forestry and fishery product processing and food processing;

b/ Production of industrial goods serving consumption and export, production of import substitutes;

c/ Chemical industry serving agricultural and rural development. Building material production;

d/ Manufacture of products and spare parts; assembly and repair of engineering, electrical and electronic and IT machinery, equipment and instruments. Manufacture and processing of details and semi-finished products and ancillary industries;

dd/ Production of handicrafts;

e/ Mineral extraction and processing in localities facing difficult and extremely difficult socio-economic conditions specified by law;

g/ Application of cleaner production at industrial production establishments; treatment of environmental pollution in industrial complexes and rural industrial production establishments.

2. Based on the socio-economic development and industrial encouragement requirements in each period, the Ministry of Industry and Trade shall submit the list of eligible industries and trades specified in Clause 1 of this Article to the Prime Minister for amendment and supplement.

Article 6. Priority principles

1. Prioritized areas: prioritizing programs and schemes implemented in localities facing difficult and extremely difficult socio­-economic conditions specified by law; the communes in the national target program on building new countryside; highland, island and bordering districts; ethnic areas and poor districts under the Government s regulations.

2. Prioritized industries and trades:

a/ Prioritizing programs and schemes supporting the development of mechanics and chemical industries serving agriculture and rural area; agricultural, forestry and fishery product processing industries; ancillary industries; and the application of cleaner industrial production;

b/ Prioritizing programs and schemes supporting the development of typical rural industrial products; products in the programs on developing key industrial products and pivotal industries; national, regional, and local key industries; the manufacture of products for export; and labor-intensive production using local raw materials.

3. Prioritizing budget for the programs and schemes specified in Clauses 1 and 2 of this Article so as to attract investment in industrial and handicraft development and cleaner production to prioritized localities, industries and professions.

Chapter III

ORGANIZATION OF THE INDUSTRIAL ENCOURAGEMENT SYSTEM

Article 7. Central industrial encouragement organizations

1. The Local Industry Department is the agency assisting the Minister of Industry and Trade in performing the state management of industrial encouragement activities; and organizes the implementation of annual industrial encouragement programs and schemes under plans approved by the Minister of Industry and Trade.

2. The Minister of Industry and Trade shall decide to set up some region-based national industrial encouragement centers under the Local Industry Department to implement national industrial encouragement programs and projects in regions.

Article 8. Local industrial encouragement organizations

1. At the provincial level (provinces and centrally run cities), Provincial People s Committees shall set up Industrial encouragement Centers, which are public non-business units under Provincial Industry and Trade Departments, to organize industrial encouragement activities.

2. At the district level (urban districts, rural districts, towns and cities), depending on specific requirements and tasks, Provincial People s Committees shall consider and decide to set up branches of Provincial industrial encouragement centers.

3. At communal level (communes, wards and townships), depending on specific requirements and tasks, Provincial People s Committees shall consider and decide to set up industrial encouragement collaborator networks to implement industrial encouragement activities in their respective communes.

Article 9. Other industrial encouragement service providers

1. Other industrial encouragement service providers are organizations and individuals other than those specified in Articles 7 and 8 of this Decree that are capable of providing industrial encouragement services.

2. Industrial encouragement service providers shall be given professional training and may participate in industrial encouragement programs, plans and schemes organized by state management agencies in charge of industrial encouragement.

Article 10. Regimes for industrial encouragement collaborators

Industrial encouragement collaborators shall receive remuneration as prescribed by Presidents of Provincial People s Committee .

Chapter IV

INDUSTRIAL ENCOURAGEMENT BUDGET

Article 11. Budget for industrial encouragement activities

The budget for industrial encouragement activities and the budget for applying cleaner industrial production (hereinafter referred to as industrial encouragement budget) include national industrial encouragement budget and local industrial encouragement budget.

1. National industrial encouragement budget is budget used for industrial encouragement activities managed and organized by the Ministry of Industry and Trade.

2. Local industrial encouragement budget is budget managed by provincial People’s Committees, People s Committees of districts or communes, and used for industrial encouragement activities implemented locally.

Article 12. National industrial encouragement budget

1. National industrial encouragement budget is funded by the following sources:

a/ Annual state budget allocations under plans;

b/ Sponsorships and contributions from domestic or overseas organizations and individuals;

c/ Other lawful capital sources according to law.

2. National industrial encouragement budget shall be used for:

a/ Expenses on national industrial encouragement activities specified in Article 4 of this Decree;

b/ Expenses for national industrial encouragement activities.

Article 13. Local industrial encouragement budget

1. Local industrial encouragement budget is funded by the following sources:

a/ Annual budget allocations of provincial People’s Committees, People s Committees of districts or communes;

b/ Sponsorships and contributions of domestic or overseas organizations and individuals;

c/ Other lawful capital sources according to law.

2. Local industrial encouragement budget shall be used for:

a/ Expenses on industrial encouragement activities organized by localities in accordance with Article 4 of this Decree;

b/ Expenses on industrial encouragement activities in localities.

Article 14. Management of national and local industrial encouragement budget

1. The Ministry of Industry and Trade shall estimate national industrial encouragement budget, then incorporate them into its annual budget estimates, and submit to competent state agencies as prescribed by laws.

2. Provincial People’s Committees, People s Committees of districts or communes shall estimate local industrial encouragement budget, then incorporate them in their annual budget estimates, and submit to competent state agencies as prescribed by laws.

3. Annually, state management agencies in charge of industrial encouragement shall make and send industrial encouragement budget estimates to finance agencies at the same level for incorporating into budget allocation plans for making submission to competent state agencies for consideration and decision in accordance with the Law on State budget .

4. In case national and local industrial encouragement budget allocated from budgets are not yet used up, the remaining amount may be transferred to the subsequent year for further spending as prescribed by current provisions.

5. The Ministry of Finance be in charge and cooperate with the Ministry of Industry and Trade in guiding the procedures for estimating, managing and using of national and local industrial encouragement budget.

Chapter V

STATE MANAGEMENT OF INDUSTRIAL ENCOURAGEMENT ACTIVITIES

Article 15. Responsibilities of ministries and sectors

1. The Ministry of Industry and Trade shall assist the Government in performing the state management of industrial encouragement as follows:

a/ Formulating and submitting legal documents on industrial encouragement to competent agencies for promulgation;

b/ Formulating national industrial encouragement programs in each period for making submission to the Prime Minister for approval. Organizing and guiding localities in implementing industrial encouragement activities under approved programs;

c/ Formulating and organizing the implementation of annual national industrial encouragement plans and schemes, assuring their conformity with periodic national industrial encouragement programs approved by the Prime Minister;

d/ Leading and cooperating with other Ministries, sectors and localities in guiding and handling problems related to industrial encouragement activities;

dd/ Cooperating with domestic and foreign organizations and individuals in attracting capital and resources serving industrial encouragement activities;

e/ Inspecting, settling complaints and denunciations made during national industrial encouragement activities;

g/ Monitoring, assessing, summarizing, and send annual reports on the implementation of industrial encouragement programs and plans nationwide to the Prime Minister.

2. The Ministry of Planning and Investment shall be in charge and cooperate with other ministries and sectors and localities in summarizing and proposing the Government to allocate budget from the central budget s development investment capital to build offices and procure equipment for local national industrial encouragement centers and provide supports for the building of offices and equipment procurement for industrial encouragement centers of localities facing difficult socio-economic conditions according to law.

3. The Ministry of Home Affairs shall be in charge and cooperate with the Ministry of Industry and Trade in, guiding the functions, tasks, powers, organizational structures and payroll of Provincial industrial encouragement centers.

4. Ministries, ministerial agencies and governmental agencies shall cooperate with the Ministry of Industry and Trade in performing the state management of industrial encouragement activities within the ambit of their tasks and powers as prescribed.

Article 16. Responsibilities of Provincial People s Committees

1. Provincial People s Committees shall perform the state management of industrial encouragement activities in their localities and have the following tasks and powers:

a/ Formulating, amending and promulgating strategies, policies and legal documents on industrial encouragement in conformity with law and local realities;

b/ Formulating, approving and organizing the implementation of local periodic industrial encouragement programs and annual industrial encouragement programs and schemes;

c/ Making decisions on the forms of providing supports from local industrial encouragement budget for industrial encouragement activities specified in Article 4 of this Decree according to law;

d/ Assuring local budget for industrial encouragement activities in their localities under this Decree;

dd/ Developing and sending industrial encouragement programs, plans and schemes eligible for national industrial encouragement budget to the Ministry of Industry and Trade for summarization;

e/ Carrying out inspections and settling complaints and denunciations made during industrial encouragement activities in their localities;

g/ Establishing relations with domestic and overseas organizations and individuals to attract capital for local industrial encouragement activities;

h/ Balancing local budget for building offices and procuring equipment for Provincial industrial encouragement centers according to regulations;

i/ Monitoring, assessing and sending quarterly reports on local industrial encouragement activities to the Ministry of Industry and Trade.

2. The Services of Industry and Trade  shall assist Provincial People s Committees in performing the state management of local industrial encouragement activities.

Article 17. Commendation and handling of violations

1. Annually, the Ministry of Industry and Trade and Provincial People s Committees shall conduct final reviews and evaluations, draw experiences and commend and reward organizations and individuals having recorded outstanding achievements in industrial encouragement activities.

2. Organizations and individuals that violate this Decree shall be disciplined, liable to administrative sanctions or criminal prosecution depending on the nature and extent of their violations; and pay compensation for the damage caused law.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 18. Effect

This Decree takes effect on July 5,2012, and supersedes the Government s Decree No. 134/ 2004/ND-CP of June 9, 2004, on rural industry development encouragement.

Article 19. Implementation responsibilities

1. The Ministry of Industry and Trade shall guide and organize the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies and Presidents of Provincial People s Committees shall implement this Decree./.