Directive 19/CT-TTg on growth and development of the Southern Key Economic Zone

DIRECTIVE 
Providing solutions to promote sustainable growth and development 
of the Southern Key Economic Zone
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The Southern Key Economic Zone (SKEZ) is a dynamic and developing economic zone with largest national contribution (in 2018, it contributed 45.4% of national GDP and its budget revenue accounted for 42.6% of total revenues of the whole country). Its economy shifted towards a positive direction, focusing on services that create high added value. The SKEZ is the hub attracting the largest foreign investment of the whole country, with more than 15,000 valid FDI projects, 140 operating industrial parks and export processing zones,… Along with the system of large seaports and international airports, the SKEZ has become the largest tourist center of the country, while developing various types of information technology, telecommunications and logistics services. Moreover, the SKEZ, with Ho Chi Minh City as its center, is also the largest commercial, financial, banking and securities hub of the country. The SKEZ has an attractive investment and business environment to domestic and foreign investors. Besides, social issues, environmental protection, science and technology development, job creation, healthcare, education and poverty reduction always received great attention from the SKEZ’s provinces and cities.

However, the economic growth of the SKEZ tends to slow down, in which the average growth rate in the period of 2016-2018 is only equal to the national average. Despite being the largest KEZ of the country, the potentials of the SKEZ have not been fully promoted to create new incentives for growth, infrastructure has been inadequately developed and its connectivity is not sufficient. The quality of urban development is low. The SKEZ has been heavily affected by climate change and sea-level rise. Many areas still have serious environmental pollution. The needs of social security and the demands for human resources are not met. Development mechanisms and policies of the SKEZ remain incomplete with the lack of breakthroughs. The awareness of concerned parties is inadequate with varying levels and lack of close Regional connectivity. Besides, coordination mechanisms among the provinces and cities in the SKEZ was spontaneous, while the forms and programs of economic development coordination are still localized, not promoting effective comparative potentials of the SKEZ.

In order to create favorable conditions to the SKEZ to promote its potentials and advantages, make rapid yet sustainable development, the Prime Minister asks the ministers, heads of ministerial-level agencies, heads of Government-attached agencies, chairpersons of the People's Committees of the provinces and cities in the SKEZ (hereinafter referred to as ministries, branches and localities) to pay sufficient attention to instruct the implementation of objectives and solutions as follows:

I. OBJECTIVES

1. Sustainable economic development shall match with justice assurance, socio-political stability and the harmony between the economic and social development objectives, the harmony between environmental protection and forestation, the harmony between industrial development and urban environmental protection, as well as water and air protection. Efforts shall be given to realize the objectives set out in Decision No. 252/QD-TTg dated February 13, 2014 of the Prime Minister approving the Master Plan on socio-economic development of the SKEZ by 2020, with orientations towards 2030.

2. Innovating, strongly applying advanced technologies, making good use of the opportunities of the fourth industrial revolution and the Free Trade Agreements and Protection of investment incentives such as CPTPP, EVFTA, EVIPA,...; Renovating ways of thinking, promoting self-reliance and identifying breakthrough factors to strive for, to develop quickly and sustainably and to contribute practically to the realization of development strategy of the SKEZ and the whole country.

3. The SKEZ is the driving dynamic economic zone, the high-quality economic, commercial, cultural, training, medical and scientific research hub of the whole country and the SKEZ, and the educational and training center for human resources, especially high-quality personnel. It also plays the leading role in scientific and technological transfer and application in the country; acting as a bridge with the Mekong Delta and the Central Highlands, with Ho Chi Minh City as its center.

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