Resolution No. 23/NQ-TW dated March 22, 2018 of the Political Bureau on the orientation to formulate the national industrial development towards 2030, with the vision toward 2045

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Resolution No. 23/NQ-TW dated March 22, 2018 of the Political Bureau on the orientation to formulate the national industrial development towards 2030, with the vision toward 2045
Issuing body: Political BureauEffective date:
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Official number:23/NQ-TWSigner:Nguyen Phu Trong
Type:ResolutionExpiry date:Updating
Issuing date:22/03/2018Effect status:
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Fields:Industry , Policy

SUMMARY

Strive to 2030, the industrial sector will account for over 40% of GDP

On March 22, 2018, the Political Bureau promulgates the Resolution No. 23/NQ-TW on the orientation to formulate the national industrial development towards 2030, with the vision toward 2045.

Specifically, by 2030, the industrial sector will account for over 40% of GDP, in which manufacturing and processing industries will make up about 30% and the manufacturing industry alone will account for over 20%; the proportion of the value of high-tech industrial products in the processing and manufacturing industries will reach at least 45%. Besides, the Political Bureau also sets a goal by 2030, the average annual growth rate of industrial added value will increase by over 8.5%, in which that of the processing and manufacturing industries will be over 10%, etc.

In order to achieve the above-mentioned targets, the Political Bureau gives priority to develop a number of industries such as: Information technology, telecommunications and electronic industry shall be at the advanced level of the world, meeting the requirements of the Fourth Industrial Revolution to create the digital platform for other industries; clean energy industry, renewable energy, smart energy; processing and manufacturing industries for agriculture to meet international standards.

Next, in the period 2030-2045, to give priority to developing new generations of information technology and telecommunications industries; universalizing digital technology, automation, high-end equipment, new materials, and biotechnology.

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THE CENTRAL COMMITTEE
___________

No. 23-NQ/TW

THE COMMUNIST PARTY OF VIETNAM

 

Hanoi, March 23, 2018

RESOLUTION

OF THE POLITICAL BUREAU

ON THE ORIENTATION TO FORMULATE THE NATIONAL INDUSTRIAL DEVELOPMENT TOWARDS 2030 WITH THE VISION TOWARD 2045

 

I. THE SITUATION AND CAUSES

Over the past time, our Party and State have issued and directed the implementation of many guidelines and policies which has an importance role in the contribution to the achievements of industrial development of the country.  Industry is an important economic economic sector, which in recent years, has made the biggest contribution to the State budget, becoming the main export sector with high growth rate. The structure of industry has had positive changes, with some industries such as: electricity, electronics, information technology and telecommunications, manufacturing energy equipment, textiles, footwear, construction... have made major development stages, positively contributing to job creation, labor restructuring, increasing productivity and improving people's living standards.

However, the development of the national industrial in the past time has not met the requirement of national industrialization and modernization, generally develop toward short-term goals and lack of sustainability. the internal strength of the industry is remain low powered, heavily dependent on foreign invested enterprises; Technology standard is backward and be improved slowly; quality of products and labor productivity of industry remain low; industry development is not closely attach to other economic sectors; the cheap labor has been emphasized, lead to the lack of making good use of the advantages in the period of golden population structure…

The operating efficiency of the majority of state owned industrial enterprises is low with many large scale industrial projects suffer losses; almost domestic private industrial enterprises is small- and medium-sized enterprise; the restructure of industrial sectors is still slow; the competing capability and the ability to join the regional and international value chain is restrictive, industrial production contain mostly machining and assembly with low added value; there is a lack of the key industry which plays the role of leading industry; many of industries with priority development did not reach the set goals; the supportive industry is underdevelopment; the rate of localization of industries is still low; the issue of environment pollution caused by industry development becomes worse...

The limitations and weaknesses mentioned above are due to many reasons, but subjective reason is the major one.  Awareness of committees, authorities, businesses and communities on industrial policy is sometimes insufficient and affected by local interests, group benefits and term-based thinking, has not yet created common awareness and determination to act consistently in the entire political system.

The leadership, direction, inspection and urging of many committees are still passive, lacking drastic manner; the mindset and approaches in the formulation and implementation of national industrial policy are still affected by central planning regime and subsidies. State management on a number of industrial sectors is overlapping, sometimes loosen, and has not been well managed and supervised in terms of productivity, quality and investment efficiency in industry.

The guidelines and policies of the Party and the State on industrial development are not untied and synchronous; the thematic resolution on national industrial development policy for each period of time has not been promulgated yet. Policy on industrial development contains plenty of contents which is unpractical and not suitable; not closely linked to the strategy, planning, master plans for socio-economic development of the country and national advantages; the role of state-owned enterprises in implementing the industrial development strategy has not been properly defined; lack of powerful policies to strengthen the capacity of private industrial enterprises; has not yet created a really favorable, transparent, stable, wholesome and fair business environment; the selection of development of priority industries and key industries is still widespread; supporting industry development policies are not synchronous, low feasibility.

Policies on mobilizing, distributing and using resources for industrial development are ineffective and have not had a breakthrough. The industrial human resource development policy lacks of focus and center and has not met the requirements. Science and technology policy has not yet become the most important driving force for the speedy and sustainable development of the industry. Policies to attract foreign direct investment (FDI) are slowly being reformed...

II. DIRECTIONS AND OBJECTIVES

A. Directions

- Fully aware, respect, and properly apply the objective laws of the market economy in compliance with development conditions of the country, promote the synergy of the entire political system, resolutely oppose all manifestations of willpower, bureaucracy and subsidies in the process of formulating and implementing national industrial policies; closely follow, selectively inherit the achievements of industrial development and industrialization of the world.

- National industrial policy is an integral part of national development strategies and policies, associated with the development policy of other economic sectors, especially policy on national trade, finance-currency, science, technology, training, environmental protection and climate change response. Ensure close linkage between the planning for industrial development and the overall strategy for industrial development; between the strategies and planning for the development of industries and strategies and plans for the development of other economic sectors to establish industrial regions, industrial clusters, industrial zones, production networks, industrial value chains, in which industrial clusters are focused.

- Harmoniously combine industrial development in both width and depth, focusing on in-depth development, creating a breakthrough in improving productivity, quality and competitiveness of industrial products. Make the most of the advantages of the country in the period of golden population structure, fully exploit the achievements of the Fourth Industrial Revolution, commercial advantages for rapid and intensive development of a number of platform, strategic and have competitive advantage industries. The development of the information technology industry and the electronics industry shall be the key schedule; processing and manufacturing industry development shall be the central; the development of smart manufacturing shall be a breakthrough as well as focus on green industry development.

- Science and technology, education and training shall hold a key position and be a breakthrough in national industrial policy; to effectively take advantage of the latecomers' in industrialization, especially the Fourth Industrial Revolution to approach and to take short cut in a reasonable anticipation in the development of industries. The selection of priority industries must be objective, based on clear principles and criteria system, suitable to each stage of the country's industrialization, and promote the national advantage in the best way.

- The State shall play the role of orientation, formulation and perfecting institutions for industrial development, creating a favorable, stable, transparent, fair and healthy competition; the market shall play the major role in efficiency mobilization and decentralization of resources, be the key driver to unleash the productive force in industry.

- To develop defense and security industries in the direction of dual use, to truly become the key industry of national industry; strengthen potentials, make use of and develop links between defense, security and civil industry.

B. Objectives

1. Overall objectives:

- To 2030, Vietnam complete the goal of industrialization and modernization, basically becoming an industrial country in the direction of modernization; belongs to the group of three leading ASEAN countries in industry, with a number of industries are internationally competitive and deeply involved in the global value chain.

- The vision towards 2045 shall be that Vietnam become a modern industrialized country.

2. Specific objectives towards 2030:

- The industrial sector will account for over 40% of GDP, in which manufacturing and processing industries will make up about 30% and the manufacturing industry alone will account for over 20%.

- The proportion of the value of high-tech industrial products in the processing and manufacturing industries will reach at least 45%.

- The average annual growth rate of industrial added value will increase by over 8.5%, in which that of the processing and manufacturing industries will be over 10%.

- The average growth rate of labor productivity in the industrial sector will be 7.5%.

- The Competitiveness Industrial Performance (CIP) index will be among the top three ASEAN countries.

- The proportion of labor in the industrial and service sectors will surpass 70%.

- To build a number of industrial clusters combination and domestic industrial enterprises with large-scale, multinational which have international competitiveness.

III. ORIENTATION OF FORMULATION OF POLICY TO DEVELOP NATIONAL INDUSTRY

1. Policy for spatial redistribution and industrial structure shift

- To adjust the distribution of industrial space to suit the requirements of restructuring industries and developing economic sectors in each region and locality in the direction of concentration, unevenly according to administrative boundaries, meeting the requirements of environmental protection, national defense and security. To adopt policies to promote the shift of industries that rely heavily on labor and resources, with negative environmental impacts, to high-tech, environmentally friendly industries. To against all manifestations of rationalism, local interests in the distribution of industrial space

- To develop specific criteria, conditions and mechanisms for identifying and developing industry clusters, to ensure concentration and focus, first of all, to choose development in regions and localities where industrial clusters have initially been formed or where advantages in transport infrastructure, geo-economics, natural resources, labor and logistics exist, that are capable of becoming the engine of growth. Implement mechanisms and policies to pilot industrial linkage clusters for a number of products in priority industries according to competitive advantage, specialization and value chain.

State supportive policies for industrial cluster development focus on creating favorable investment and business environment, building infrastructure, encouraging all economic sectors to participate in development industrial linkage clusters. On that basis, formulate criteria and plan to assess operations of industrial linkage clusters, industrial parks and hi-tech zones.

- To develop mechanisms and policies to promote the structural transformation of the industry in the direction of increasing added value and intelligence level. Accelerate the integration of information technology and automation in industrial production in order to create smart production processes, smart factory models, develop and manufacture smart products and devices. Develop and issue technology standards and smart technique for production.

2. Development policies for priority industries

- To select a number of industry for priority development towards the direction of which principles must be met: Based on the results of an objective analysis of the country's advantages; is an industry capable of deeply participating in the global production network and value chain; has fundamental significance, has a high spillover effect on other economic sectors; use clean and environmentally friendly technologies; capable of creating high added value; some industries use a lot of labor in which Vietnam still has advantages. The identification of priority industries must have the necessary dynamism and flexibility, and shall be periodically evaluated in term of performance according to the criteria for appropriate adjustment.

- In the period from now to 2030, to prioritize the development of a number of industries such as: Information technology, telecommunications and electronic industry shall be at the advanced level of the world, meeting the requirements of the Fourth Industrial Revolution to create the digital platform for other industries; clean energy industry, renewable energy, smart energy; processing and manufacturing industries for agriculture to meet international standards. Prioritize the development of defense and security industries, combining with civil industry in the direction of dual use. Continue to develop the textile and footwear industries, but prioritize and focus on stages of creating high added value associated with smart and automated production processes. Prioritize the development of a number of mechanical branches and fields such as: automobile, agricultural machine, construction equipment, industrial equipment, electrical equipment, medical equipment...

- In the period 2030-2045, to give priority to developing new generations of information technology and telecommunications industries; universalizing digital technology, automation, high-end equipment, new materials, and biotechnology.

- The State's support policies for priority industries must follow the market mechanism and comply with the terms of international commitments to which Vietnam is a signatory; have a specific term (with the average of 05 years but no longer than 10 years). The State investment in priority industries shall mainly plays a supporting role, to encourage the private sector to participate. To avoid spreading in the selection of priority industries, ensuring all the necessary resources.

3. Policy to create a favorable investment and business environment for the development of industries

- To implement policies to ensure stable macroeconomic stability to facilitate investment attraction and develop the industry. To finalize financial, monetary and tax policies to support and promote industrial development. To accelerate the process of restructuring financial markets, ensuring a reasonable structure between money markets and capital markets. To develop the stock market to become an important channel to mobilize medium and long-term capital for industrial development. To formulate policies to support industrial enterprises which eligible to issue shares and bonds to list on domestic and international stock markets.

To operate the exchange rate policy flexibly, aiming to promote and support the export of the country's priority industrial products. To adopt a specific mechanism and promote credit to support and encourage investment in high value-added industries, priority industries, high-tech industries, and supporting industries. To finalize credit policies for lending by production network, value chain in industrial production, lending on the basis of efficiency of investment projects. To develop an effective mechanism for venture capital funds.

To implement tax exemption and reduction policies at a reasonable level and time for priority industries, smart industries. To accelerate the interconnection between tax administration and customs, between relevant agencies according to the national single-window mechanism and ASEAN single-window connection. To finalize regulations on anti-transfer pricing and anti-tax evasion in line with international practices.

To improve access to finance and credit (including foreign loan capitals) for industrial enterprises, especially small- and medium-sized industrial enterprises and innovative enterprises. To completely remove barriers and inequalities in access to finance and credit of industrial enterprises of all economic sectors.

- To reorganize the market of industrial products. To accelerate the implementation of the market price mechanism according to a specific road map for essential goods (such as petroleum, coal, electricity, water...). To develop and enforce a system of appropriate industrial standards and technical standards to protect domestic producers and consumers. To provide guidance and appropriate support measures for industrial enterprises to effectively participate in the signed free trade agreements. To actively remove barriers, fight against monopolistic practices and unfair competition. To develop modern commercial trading types and methods; to build and implement the Program on national trade promotion for industrial products.

To diversify the import market of raw materials and equipment for industrial development, avoiding dependence on a number of markets. To strengthen quality control of imported industrial goods and use technical barriers to reasonably protect the domestic market in consistent with international commitments and practices.

To increase the quality and effectiveness of market inspection and control. To promote the combating of smuggling, commercial fraud, counterfeit goods and violations of regulation on intellectual property in the industry field, ensure the healthy environment for production and business.

- To develop breakthrough policies to create a startup environment in the industrial sector, especially innovative start-ups. To implement synchronously and drastically projects and programs to support national innovation startups.

4. Policy for the development of industrial enterprises

- To accelerate the reorganization and renewal of state enterprises in the industrial sector through the effective implementation of the Resolution No. 12-NQ/TW, dated June 03, 2017 of the XIIth Central Committee of the Communist Party of Vietnam. The State shall only holds dominant shares of enterprises operating in industrial sectors and fields that are of particular importance in economic terms associated with national defense and security. To adopt policies to encourage, support and promote the formation of large, multi-owned economic groups in the industrial sector, capable of competing in the regional and international markets.

- To develop domestic private industrial enterprises to become an important driving force for the country's industrial development on the basis of the drastic implementation of the Resolution No. 10-NQ/TW dated June 03, 2017 of the XII Central Committee of the Communist Party of Vietnam. To pay attention to formulating and implementing policies to improve technology and governance capacity for domestic industrial enterprises. To adopt policies to encourage and support the formation of economic groups and large-scale private enterprises in the industrial sector.

- To encourage the development of small- and medium-sized industrial enterprises and supporting enterprises of all economic sectors. To form and develop a system of industrial development consulting service businesses. To establish priority criteria in the selection of supporting industry development, focusing on weak stages of the product value chain or the stage that determines the quality and value of products of the industry. Providers in priority industries shall be supported, and such policy shall be considered as the core policy for supporting industry development.

- To renovate policies and promoting foreign direct investment (FDI) attraction into the industry, especially the processing and manufacturing industries. Strongly shifting policies to attract FDI in the industrial sector from quantity to quality with focus and centered point. The orientation to select and encourage FDI projects in industries by 2030 shall be implemented in the direction that: Prioritizing projects applying “high, new, clean and economical” technologies, using a lot of domestically produced raw materials and accessories, with a high proportion of spending on scientific and technological research and development in the country, with a commitment on technology transfer, on-site human resource training; giving priority to form of joint venture and production association with domestic enterprises; to  give priority to multinational companies with international brands and high competitive capacity, and foreign enterprises participating in supporting industries.

- To closely stipulate on the reporting regime of FDI enterprises and state management agencies, ensuring the national defense and economic security; to formulate and publicizing the list of national industrial investment projects and implementing investment promotion activities to attract high-quality FDI. Researching and building new models to attract FDI in the industry field.

5. Policy for the development of human resources for the industrial sector

- To study and implement mechanisms and policies to develop industrial human resources to meet the requirements of industrialization and modernization, especially the requirements of the Fourth Industrial Revolution.

- To restructure, renew and improve the quality of training institutions in order to create industrial human resources capable of mastering and receiving new production technologies. To re-plan the network of vocational education and higher education institutions in the fields of technology and engineering. To concentrate on developing a number of higher and vocational training institutions in terms of technology and engineering to reach the international level. To promote the socialization of technical and technology training. To implement an education model in science, technology, engineering and math (STEM), foreign languages and informatics in the general education program. To encourage private sectors and enterprises to train high-quality industrial human resources to closely link the research and training with production and business activities and the demand of the industrial labor market.

- To finalize mechanisms and policies to synchronously develop and connect the industrial labor market in terms of scale, quality of labor and occupation structure. To adopt mechanisms and policies to orient the labor movement, especially agricultural labor to industrial labor, and reasonably allocate labor by region.

- To review, adjust and supplement policies to ensure social welfare for employees in the industrial sector, including policies on wages, insurance, and labor protection. To renew the salary and wage policies according to the market principles with a consistency between salary increase and labor productivity increase. To complete policies on housing and public welfare works for cadres with high technical qualifications and workers in industrial zones, export processing zones, industrial clusters, and high-tech zones. To adopt policies to attract and use talents with high professional technical qualifications and creative capacity, especially the experts who are foreigners and Vietnamese living aboard.

- To strengthen the establishment and promote the role of the contingent of Vietnamese industrial entrepreneurs in the period of accelerating industrialization, modernization and international integration. To focus on training, fostering and developing a contingent of entrepreneurs with high professional qualifications, modern management and administration skills, with business ethics and a sense of responsibility toward the nation and the peoples.

To focus on assembling a contingent of Vietnamese workers with industrial style, sense of discipline, high skills, ability to absorb and create new technologies with high productivity, quality and efficiency; closely attached to the people and the country.

6. Science and technology policy for industrial development

- To strongly develop to creates a breakthrough in infrastructure, application of information and communication technology, especially infrastructure for digital connection (4G and 5G), ensuring their safety and synchronization to meet the requirement of connection to people and things via the Internet. To develop a National Digital Transformation Strategy. To encourage investment, development of big data centers; promoting the development of the science of big data analysis, management and processing in order to create new products and knowledge. To create all conditions for people and businesses to easily, conveniently and equally access digital content development opportunities. To develop and implement the Strategy to approach and pro actively participate in Vietnam's 4th Industrial Revolution.

- To prioritize resources, continue to effectively implement the National Technology Innovation Program toward 2020, the Program to develop a number of high-tech industries, the National Program to improve product and goods productivity and quality of Vietnamese enterprises toward 2020. To accelerate the implementation of the Project of science and technology application in the process of restructuring the industry and trade in the period to 2025, with a vision to 2030.

- To innovate, strongly develop and synchronously the science and technology market. To strengthen the protection and enforcement of intellectual property rights, especially intellectual property in the digital age. To adopt the powerful policy to support and encourage organizations, individuals, research institutes, universities, and enterprises to invest in research, development, technology transfer, and application of advanced scientific and technology into production and business; to identify that enterprises are an important force and the center in the development and application of science and technology; to focus on improving technology absorption capacity of enterprises.

- To enhance domestic and international cooperation in research and development, application of science and technology, and purchase, sale and transfer of scientific and technological products. To step up the commercialization of scientific and technological research outcomes. To establish national database on technology and technology experts. To develop consultancy, appraisal, brokerage and pricing services for scientific and technological products. To promulgate mechanisms and policies to promote cooperation and technology transfer between defense and security industries and civil industries.

To adopt appropriate mechanisms and policies to orient and strictly control technology for industries on the principle of combining the use of advanced technology, the advantages of the latecomers, and the proactive shortcut to take a progressive approach in order to make the most advantages of the “golden population structure” period and effectively exploit existing production capacity; to strictly manage the import of machines, equipment, industrial technology, ensure high quality and efficiency.

- To fundamentally renew and synchronize the financial management mechanism for science and technology organizations and activities; modes of using the state budget for science and technology. To promote public-private cooperation mechanism in implementing technology innovation, research and development projects; to expand the form in which the state orders science- technology tasks and purchases research results. To check and amend regulations to facilitate enterprises to implement, develop and apply science and technology research in an adequate scale that meet the requirement of technology innovation. To apply tax policies, provide financial assistance, and access appropriate resources to encourage technology research, innovation and modernization.

- To support the establishment and development of science and technology enterprises in the industrial sectors, particularly in the priority industries. To adopt mechanisms and policies to promote the development of incubators of technologies and science and technology enterprises in key and priority industries, sectors.

7. Policy on exploitation of natural resources and minerals, policy on environmental protection, and adaptation to climate change in the course of industrial development

- To promote basic geological investigation, search, exploration and assessment of natural resources on the mainland and continental shelf of the country. - To develop strategy, planning, management plan, efficient exploitation and use of natural resources and minerals. Only allowed to apply mineral mining and processing technologies which are modern, economical, environmental protection and sustainable socio-economic efficiency. To adjust policies and laws on land, create favorable conditions for industrial enterprises to access smoothly under the market mechanism, in accordance with the planning.

To integrate the requirements on adaptive to climate change, natural disaster prevention and fighting, and environmental protection in all industrial development strategies, plans, programs and projects. To promulgate policies to encourage investment projects to save energy, natural resources and protect the environment. To review and revise industrial technical regulations on the term of environment; clearly stipulating responsibility for environmental protection of industrial production establishments and having strictly sanctioning for handling violations. To develop policies to encourage strong development of environmental industry; promote the socialization of environmental protection.

8. Enhance the Party's leadership capacity, the effectiveness and efficiency of the State's management, promote people's mastery in the formulation and implementation of the national industrial development policy.

- To raise the awareness and responsibility of the party committees and authorities at all levels about the role and content of the national industrial policy in the industrialization and modernization of the country. The formulation and implementation of the national industrial policy are determined as one of the important leadership of the party committees and authorities from the central to local levels. Industrial development objectives and tasks are associated with socio-economic development objectives and tasks of the whole country and each branch and level.

- To strengthen the effectiveness and efficiency of state management in the industrial sector. To implement the restructuring of the industrial management system synchronously from the central to local levels, ensure centralization, transparency, efficiency, with clear assignment and decentralization. To clearly define functions of the state management and the production and business management in the industry in accordance with the characteristics of the socialist-oriented market economy. To establish a mechanism for close coordination among ministries, branches and localities in policy formulation and implementation; to promptly overcome the situation of inconsistency and ineffective enforcement of legal provisions.

- To expand the practical and effective participation of the Vietnam Fatherland Front, socio-political organizations and socio-professional organizations, and those affected by policies in the planning and monitoring the implementation of the national industrial policy. To resolutely fight group interests, friendly relations, corruption, and wastefulness in the formulation and implementation of the national industrial development policy.

IV. IMPLEMENTATION ORGANIZATION

1. The Central Party Committees divisions, the Communist Party Staff Committee, the Party union, the provincial Party Committees, the municipal Party Committees, the central affiliated Party Committees shall organize to study, grasp and develop plans to implement this Resolution in accordance with the situation of the branches, localities, agencies and units; to develop action plans and programs to implement the Resolution with specific road map and assignments; to add the targets stated in the Resolution to the annual plans of branches, localities, agencies and units; periodically inspect and evaluate the implementation.

2. The Party Committees of the National Assembly shall direct and supplement the Law and Ordinance formulation Program, giving priority to law projects directly serving the implementation of this Resolution; strengthen supervision of the National Assembly, the National Assembly Standing Committee, the Ethnic Council, and other Committees of the National Assembly on the formulation and implementation of national industrial policies.

3. The Communist Party Staff Committee of the Government shall assume the prime responsibility for reviewing, supplementing research or formulating new industrial development strategies; master plan for the development of industries in line with the requirements of this Resolution.

4. The Vietnam Fatherland Front and socio-political organizations shall develop programs and plans to supervise the implementation of the Resolution.

5.  The Central Propaganda Department of the Communist Party of Vietnam shall assume the prime responsibility for, and coordinate with the Party Central Committee's Economic Commission in, guiding and widely propagating the Resolution's contents and implementation results.

6. The Party Central Committee's Economic Commission shall assume the prime responsibility and coordinate with the Officer of the Party Central Committee, the Communist Party Staff Committees, the center affiliated Party Committee to regularly monitoring, supervising, inspecting and urging the implementation of this Resolution; periodically reviewing the implementation and reporting the results to the Political Bureau and the Secretariat.

 

On Behalf of the Political Bureau

The General Secretary

Nguyen Phu Trong

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