Directive 07/CT-TTg on operation effectiveness of economic zones, industrial parks, industrial complexes

DIRECTIVE

ON REDRESSING THE MANAGEMENT AND INCREASING THE OPERATION EFFECTIVENESS OF ECONOMIC ZONES, INDUSTRIAL PARKS AND INDUSTRIAL COMPLEXES

In the past years, the development of coastal economic zones, border-gate economic zones (EZs), industrial parks (IPs) and industrial complexes

(ICs) has contributed to modernizing infrastructure systems, simplifying administrative procedures and forming streamlined and flexible organizational structure and management mechanisms, thus creating an open and attractive investment environment, especially for foreign direct investment, and increasing the industrial production value, generating employment, restructuring the economy and workforces and strengthening defense and security.

Besides the above positive results, there remain a number of problems in the development of EZs, IPs and ICs: the quality of plans is poor; the development is too fast in number; the investment is thinned out; the investment structure is unreasonable; the occupancy rate of industrial land is not high; environment pollution remains serious; houses, incomes and material and spiritual lives of laborers are still limited.

In order to overcome the above problems, continue to promote the important role and contribution of EZs, IPs and ICs to the national socio-economic development, ensure the sustainable economic, environment and social development, achieving the target that by 2020 Vietnam will basically become a modernity-oriented industrial country under the 2011-2020 socio-economic development strategy, the Prime Minister instructs ministers, heads of ministerial-level agencies and government-attached agencies and chairpersons of provincial-level People’s Committees to thoroughly grasp and perform the following tasks:

1. The Ministry of Planning and Investment shall:

a/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, reviewing and evaluating the implementation of mechanisms and policies on development of EZs, IPs and ICs, thereby draft a decree amending and supplementing a number of articles of the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, providing for industrial parks, export processing zones and economic zones, and submit it to the Government in the third quarter of 2012.

b/ Assume the prime responsibility for, and coordinate with related ministries, sectors and localities in, evaluating the implementation of master plans, establishment and operation of EZs and IPs and propose

measures to handle EZs or IPs which are operating ineffectively, using land wastefully or causing environment pollution, thereby review and adjust the master plan on the development of economic zones and industrial parks in Vietnam through 2020, and submit it to the Prime Minister for approval in the fourth quarter of 2012. For the immediate future, in the process of review, to temporarily stop the supplementation of the master plan and establishment of new EZs and IPs in the whole country until the Prime Minister gives new directions.

c/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, elaborating a scheme on reviewing and formulating criteria for the selection of EZs to receive concentrated investment from 2013, and submit it to the Prime Minister in the second quarter of 2012 in the direction that the central budget will concentrate on investment in the selected EZs having the most favorable conditions for development in order to early bring into play their effects and pervasive impacts on surrounding areas. In these EZs, investment will only made in some essential infrastructure facilities under law.

d/ Annually review IPs eligible for central budget support in order to sufficiently arrange capital limits in the planning year for some IPs. By 2015, to complete the target central budget support program for the development of infrastructure facilities in IPs in localities with difficult socio-economic conditions.

e/ Coordinate with related ministries, sectors and localities in directing and guiding:

- To build infrastructure facilities in EZs, IPs and ICs according to schedules, approved master plans and with the quality under law; to arrange land areas for the building of resettlement areas and laborers’ houses.

- To diversify modes of raising capital for development investment in infrastructure facilities in EZs, IPs and ICs.

- To thoroughly handle projects in EZs, IPs and ICs which are operating ineffectively and fail to comply with the laws; and consider withdrawal of investment certificates of projects which fail to comply with the laws, do not build infrastructure facilities, factories and equipments or which delay such building and have received many extensions.

- To selectively attract investment by in sectors suitable to local development conditions, prioritizing support industries and projects with advanced, modern and environment-friendly technologies; to attach importance to associating industries in the development of EZs, IPs and ICs.

- To ensure the strict evaluation, grant and adjustment of investment certificates for projects in EZs, IPs and ICs, especially complicated or capital-intensive projects, or conditional investment projects.

- To elaborate and submit to the Prime Minister a scheme on strengthening the organizational apparatus of central and local state management agencies in charge of EZs and IPs.

2. The Ministry of Industry and Trade shall:

- Assume the prime responsibility for, and coordinate with related ministries, sectors and localities in, evaluating the two-year implementation of the Prime Minister’s Decision No. 105/2009/QD-TTg of August 19, 2009, on the Regulation on management of industrial complexes, the implementation of master plans, establishment and operation of ICs in localities; handle according to its competence or propose measures to handle ICs which fail to comply with the laws, are operating ineffectively or being delayed, and report to the Prime Minister in the third quarter of 2012. In the process of review, to temporarily stop the supplementation of the master plan, the establishment or the expansion of ICs in the whole country until the Prime Minister gives new directions.

- Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, guiding and handling IPs established before the promulgation of the Regulation on management of industrial complexes together with the Prime Minister’s Decision No. 105/2009/QD-TTg of August 19, 2009; guide the central budget’s supports for investment in infrastructure facilities in IPs in localities with socio-economic difficulties, and report to the Prime Minister in the second quarter of 2012.

3. The Ministry of Nature Resources and Environment shall:

- Assume the prime responsibility for, and coordinate with related ministries and sectors in, evaluating the implementation of regulations on the use of land, ground compensation and clearance in EZs, IPs and ICs; summarize problems facing localities and enterprises and report to the Prime Minister in the fourth quarter of 2012.

- Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Industry and Trade and related ministries and sectors in, reviewing and examining environmental protection activities in EZs, IPs and ICs; request IPs which have production and business projects in operation but have not yet built a centralized wastewater treatment work to build a treatment system of environmental standards; and report to the Prime Minister in the fourth quarter of 2012.

4. The Ministry of Construction shall:

- Assume the prime responsibility for, and coordinate with related ministries and sectors in, evaluating the implementation of the Prime Minister’s Decision No. 66/2009/QD-TTg of April 24, 2009, promulgating a number of mechanisms and policies to build houses for lease to workers of industrial parks, propose amendments and supplements to this Decision, and submit them to the Prime Minister in the fourth quarter of 2102.

- Assume the prime responsibility for, and coordinate with related ministries and sectors in, reviewing and evaluating the elaboration of master plans on building EZs, IPs and ICs, and report to the Prime Minister in the third quarter of 2012.

5. The Ministry of Finance shall assume the prime responsibilities for, and coordinate with related ministries and sectors in, studying and assessing impacts of changes in finance and tax incentive policies on enterprises in EZs, IPs and ICs and summarize problems facing localities and enterprises; propose amendments to these policies toward ensuring reasonable incentives and attracting infrastructure development projects and production projects in EZs, IPs and ICs, restrict to the utmost the arrangement of industrial production projects outside EZs, IPs and ICs; and report the Prime Minister in the third quarter of 2012.

6. The Ministry of Home Affairs shall:

a/ Further monitor, assess and guide the operation of state management agencies in charge of EZs, IPs and ICs in the fields under its management.

b/ Assume the prime responsibilities for, and coordinate with the Ministry of Planning and Investment, related ministries, sectors and localities in, elaborating and submitting to the Prime Minister a scheme on strengthening the organizational apparatus of the central and local state management agencies in charge of EZs, IPs and ICs.

7. Other related ministries and sectors shall, within the ambit of their assigned functions and tasks, step up the state management of EZs, IPs and ICs, and guide province-level People’s Committees and management boards of EZs, IPs and ICs to properly perform their powers and responsibilities for the management of EZs, IPs and ICs in their localities under regulations on EZs, IPs and ICs.

8. The People’s Committees of provinces and centrally run cities shall:

a/ Review master plans, the establishment and operation of EZs, IPs and ICs and propose measures to handle EZs, IPs or ICs which are slowly constructed or operating ineffectively, and report to the Ministry of Planning and Investment (for EZs and IPs) or the Ministry of Industry and Trade (for ICs) in the second quarter of 2012.

b/ Strictly comply with conditions, orders and procedures for elaboration of master plans, establishment and expansion of EZs, IPs and ICs, the development of EZs, IPs and ICs suitable to conditions of their localities and the effectiveness of land use, not develop EZs, IPs and ICs on land under rice cultivation with stable yield. Resolutely withdraw investment certificates and recover allocated land areas of delayed or unimplemented projects. Direct the acceleration of ground compensation and clearance for land areas under recovery decisions in order to allocate such land areas for the construction of IPs, ICs, urban centers and residential areas.

c/ Direct management boards of EZs, IPs and ICs and related departments and sectors to thoroughly comply with the process of grant and adjustment of investment certificates for projects in EZs, IPs and ICs. Remove production projects into their localities in IPs and ICs. Not further recover land areas for production projects outside IPs and CPs.

d/ Direct management boards of EZs and IPs and related departments and branches to review and adopt measures to handle projects in EZs, IPs and ICs which fail to comply with the laws or are slowly constructed; report review results to the Ministry of Planning and Investment (for projects in EZs and IPs) or the Ministry of Industry and Trade (for projects in ICs) in the third quarter of 2012 for summarization and report to the Prime Minister.

e/ Direct the allocation of land areas, elaboration of master plans and construction of resettlement works and laborers’ houses, service and public works serving EZs, IPs and ICs in compliance with the operation process of EZs, IPs and ICs.

f/ Thoroughly handle IPs and ICs which fail to comply with regulations on environmental protection in IPs and ICs; urge IPs which have projects in operation but not yet built a centralized wastewater treatment work to build a treatment work of environmental standards;

g/ For localities having not yet promulgated a regulation on coordination between management boards of EZs and IPs and bodies under provincial- level People’s Committees in managing EZs and IPs, and a regulation on coordination between departments, branches, People’s Committees at all levels and relevant units in managing ICs, they shall early promulgate these regulations in order to ensure the focal role of management boards of Ezs and IPs as decentralized or authorized under Decree No. 29/2008/ND-CP of March 14, 2008, providing for industrial parks, export processing zones and economic zones, and properly implement the Regulation on management of industrial complexes promulgated together with the Prime Minister’s Decision No. 105/2009/QD-TTg of August 19, 2009.

9. Ministries, sectors and provincial-level People’s Committees shall direct the implementation of this Directive and report the result to the Prime Minister as scheduled and concurrently to the Ministry of Planning and Investment for summarization.

The Ministry of Planning and Investment shall guide, monitor and urge the implementation and promptly report to the Prime Minister problems arising in the implementation of this Directive.-