DECISION

APPROVING THE MASTER PLAN ON SOCIO-ECONOMIC DEVELOPMENT OF CENTRAL VIETNAM’S KEY ECONOMIC REGION THROUGH 2020 AND ORIENTATIONS TOWARD 2030

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Government’s Decree No. 92/2006/ND-CP of September 7, 2006, on formulation, approval and management of socio-economic development master plans, and the Government’s Decree No. 04/2008/ND-CP of January 11, 2008, amending and supplementing a number of articles of the Government’s Decree No. 92/2006/ND-CP of September 7, 2006;

At the proposal of the Ministry of Planning and Investment,

DECIDES:

Article 1. To approve the master plan on socio-economic development of Central Vietnam’s key economic region through 2020 and orientations toward 2030 (below referred to as the master plan), with the following principal contents:

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Central Vietnam’s key economic region (embracing Da Nang city and Thua Thien-Hue, Quang Nam, Quang Ngai and Binh Dinh provinces) has a position of special importance in the socio-economic development and national defense and security assurance strategy for the whole Central Coast and Central Highlands region.

To build Central Vietnam’s key economic region (below referred to as the region) into a strong marine-economic center, creating a seaward posture to firmly defend the country’s sovereignty over its seas and islands. To focus on developing diverse service sectors with high added value such as import, export, tourism, fishing, oil and gas, and transportation; to develop seaports, port services as well as sea and river-sea transportation; to develop fleets and ship building and repair industries, etc. To develop economic activities on islands in conformity with the location, potential and advantages of each island.

The region will also act as a crucial link in international economic and cultural exchanges, a hub for goods transshipment with Central Highland provinces, and the most convenient gateway to the sea for the southern region of Laos, the northeastern region of Thailand and the northeastern region of Cambodia via the East-West economic corridor.

II. DEVELOPMENT VIEWPOINTS

1. The region’s socio-economic development must be conformable with the national socio-economic development strategy and marine strategy and the master plan on socioeconomic development of the Northern Central and Central Coast region through 2020, and consistent with sectoral development master plans.

2. To bring into the fullest play the region’s potential and comparative advantages in geographical-economic-political position and natural resources, especially marine resources, and cultural values of localities in the region, to step up economic restructuring and change the growth model toward sustainability. To focus on strongly developing advantageous industries and high-quality services and tourism of regional and international caliber in association with development of urban centers in order to narrow the gap between the region and other key economic regions across the country.

3. To promote the human factor as an important resource for the region’s development. To focus on training and development of human resources, especially high-quality ones, with a rational structure to meet market demands; to associate human resources development with development and application of advanced sciences and technologies.

4. To combine economic development with assurance of social equity and improvement of the quality of people’s lives; to step by step narrow the gap in living standards among different areas and ethnic groups in the region.

5. To ensure sustainable and harmonious development in achieving the objectives of economic development, social development, eco-environmental improvement and protection of water and forest resources as well as marine and coastal environments. To closely associate economic development with building of defense-security potential, defense of sovereignty, and protection of territorial integrity and independence of the nation. To enhance the capacity to prevent and control natural disasters, typhoons and flood and respond to climate change.

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1. Objectives through 2020:

a/ Overall objectives:

To build the region into a region of dynamic, rapid and sustainable development, which will drive development in the whole Northern Central and Central Coast region; an important gateway to the sea of Central Highlands provinces, the Cambodia-Laos-Vietnam development triangle and the East-West economic corridor; and an industrial region linked with the sea and modem service centers. People’s material, cultural and spiritual lives and health will be substantially improved; the country’s sea and island sovereignty will be firmly defended; national defense, security and social order and safety will be maintained; the eco-environment and living environment will not be polluted; damage caused by natural disasters, climate change and sea level rise will be minimized.

b/ Specific targets:

- Economically:

+ The economic growth rate will reach around 8%/year by 2015 and around 9%/year during 2016-2020. Average per-capita GDP by 2020 will reach around VND 80 million, equivalent to USD 3,600, or 1.1-1.2 times the country’s average level. The region’s GDP by 2020 will be around 2.3 times the figure in 2010 (calculated according to comparative prices).

+ To restructure the economy toward increasing the industry-construction proportion in GDP to 44.5% by 2015 and 45% by 2020 and the service proportion to 40.5% by 2015 and 43% by 2020, while reducing the agricultural proportion to 15% by 2015 and 12% by 2020. To strive to increase the region’s contributions in state budget revenues to 6.5% by 2015 and 7.5% by 2020; and reduce the rate of agricultural labor in the total social workforce to around 31.4% by 2020.

+ The export value growth rate will reach around 18%/year on average by 2015 and over 20%/year during 2016-2020; the rate of technology renewal will be 20-25%/year on average.

- Culturally and socially:

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+ By 2015, to reach preschool education universalization standards for 5-year children; 95% of children of school age will go to primary schools; over 50% of primary schools will satisfy national standards; 100% of primary school teachers will satisfy prescribed standards; there will be no longer makeshift schools and classrooms; to strive that by 2020, 100% of primary schools will satisfy national standards and that the region’s education-training and vocational training sector will reach the country’s average development targets for educational disciplines and levels.

+ To reduce the underweight malnutrition rate among under-5 children to below 10% by 2020 and the mortality rate among under-1 children to 14‰ by 2015 and below 11‰ by 2020. The health insurance coverage rate will be over 75% by 2015 and over 80% by 2020.

+ By 2020, to create around 150,000 jobs; the unemployment rate in urban areas will be below 4%; the working-time use rate in rural areas will rise to 85%; the trained labor rate will reach 45% by 2015 and over 65% by 2020.

+ The urbanization rate will reach 42% by 2015 and 49.5% by 2020; the region’s urban population will be around 2.7 million by 2015 and 3.4 million by 2020.

- Environmental protection:

+ By 2020, over 95% of rural population and 100% of urban population will have access to hygienic water; all new production and business establishments will apply clean technologies or pollution reduction and waste treatment equipment; over 80% of existing production and business establishments will satisfy environmental standards; urban centers of grade 4 or higher grades and all industrial parks and export-processing zones will have centralized wastewater treatment systems; 95% of ordinary solid waste, 85% of hazardous waste and 100% of hospital waste will be treated up to environmental standards.

+ To increase the forest coverage to 47% by 2020. To prevent and limit the increase of environmental pollution, degradation and incidents caused by human activities and natural impacts; to protect marine and coastal ecosystems and biodiversity as well as national parks and nature reserves; to proactively mitigate the impacts of typhoons, flood, natural disasters and climate change.

- National defense and security:

+ To completely build roads to the borderlines, border belt roads, border guard posts, defensive zones, border residential areas and infrastructure facilities to serve socio-economic development.

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+ To promote the role of Fatherland Front Committees, socio-political organizations and mass organizations in the prevention and combat of social vices; to step up communication and education work and mobilize people to strictly observe state laws in order to curb and reduce traffic accidents.

2. Orientations towards 2030:

- The region will continue to be a region of dynamic, rapid and sustainable development with increasingly improved growth quality. The region will have beautiful landscapes and be a high-quality service and tourist zone of the whole country and the Southeast Asia. The region will have a modem economic structure and a sea-linked urban and industrial development space. Chu Lai, Dung Quat, Chan May-Lang Co and Nhon Hoi economic zones will be the core and major development centers of the region. Da Nang, Hue and Quy Nhon cities will become tourist, trade and international exchange centers of the region and the whole country, functioning as trade service and tourist centers of the whole Central and Central Highlands region.

- The economic growth rate during 2021 -2030 will reach around 9% on average. Average per-capita GDP will surpass USD 10,000/year, around 2.5 times the figure in 2020; the service proportion in GDP will be over 50%.

- To further improve material, cultural and spiritual lives of people in the region; to preserve and promote traditional cultures as well as tangible and intangible cultural heritages. To develop health networks to meet the people’s basic demands for health protection and care; to attach importance to caring for the ederly’s health. To develop Da Nang and Hue into the core specialized health centers of Central Vietnam.

- Economic infrastructure systems such as seaport infrastructure facilities, tourist zones and sites, economic zones, industrial parks and border-gate economic zones will be invested with complete and modem equipment to meet tourism and trade development and international exchange needs of the region and the whole country; to improve infrastructure facilities of major urban centers in association with development of economic zones and adjacent areas, and promote economic exchanges in the East-West economic corridor of the greater Mekong Sub-region and the Cambodia-Laos-Vietnam development triangle.

IV. SECTORAL DEVELOPMENT ORIENTATIONS

1. Industrial development:

- To strive for an industrial growth rate of around 8.5% by 2015 and 9.5% during 2016- 2020; the industry-construction proportion in GDP will be around 45% by 2020.

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- To form large industrial centers in Quang Nam, Quang Ngai and Binh Dinh provinces. To develop industrial clusters along roads linking the provinces in the region with Central Highlands provinces with a view to supplying consumer products to the Central Highlands region and receiving raw materials from agriculture and forestry to serve processing industries; to associate industrial development with the formation of urban spots in rural areas.

- To attach importance to the development of medium- and small-sized industries with the application of advanced technologies suitable to specific conditions of each locality. To develop small and cottage industries through promoting traditional trades and occupations like production of handicrafts, fine art articles, building materials, and civil-use woodwork products, and food processing.

2. Service and tourism development:

- To promote to the utmost existing advantages and potential of localities in the region for the development of advantageous fields like tourism, seaport, ocean shipping and international maritime services. To strive for a growth rate of around 9.1% by 2015 and around 10.2% during 2016-2020; the service proportion in GDP will reach around 40.5% by 2015 and over 43% by 2020.

a/ Services: The total rate of circulation of retailed goods will increase year on year and reach around 13%/year by 2015 and 16%/year during 2016-2020. To upgrade existing trade centers and form new trade centers and department stores in provinces and cities in the region such as Hue city (Thua Thien-Hue), Da Nang city, and Quy Nhon city (Binh Dinh); to develop domestic trade networks from urban to rural areas and from coastal to mountainous areas.

- To develop airway, international telecommunications, finance, banking and information technology application services. To attach importance to finance and banking services in economic zones and border-gate economic zones and at seaports, and logistic services for seaports, airports and cities in the region.

- To focus on the development of science and technology transfer services as well as agricultural, forestry and fishery extension services for industrial, agricultural, forestry and fishery production households.

b/ Tourism: By 2020, the region will be home to many attractive tourist destinations linked with other tourist sites around the country and in regional countries like Thailand, Singapore, Malaysia and Indonesia, and become a regular destination of international tours.

- To focus on tapping cultural heritages, famous historical sites and marine eco-tourism, especially coastal landscapes linked with the world heritages such as cultural and architectural heritages in Hue ancient imperial city, Hoi An old town, My Son Sanctuary with Cham culture (Da Nang and Quang Nam) and the natural heritage sites along Hue-Lang Co-Bach Ma-Hai Van-Son Tra-Ba Na-Da Nang route, and coastal areas from Nam o bay to Hoi An old town.

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To renew the model and method of agricultural production in association with economic restructuring within the sector; to reduce the rate of cultivation and increase the rate of animal husbandry and aquaculture and create favorable conditions in both mechanisms and funds for marine economic development.

a/ Agricultural development:

- To restructure plants and animals suitable to natural conditions of each sub-region to ensure production safety, prevent flood and raise efficiency per hectare of cultivation land; to maintain and keep stable the paddy land area under regulations. To apply and transfer advanced technologies to production and processing and associate production with outlet markets to form agriculture-processing-market service links in the region to bring about higher economic efficiency;

- To build zones specialized in fruit trees, industrial plants and advantageous subsidiary crops toward concentrated commodity production suitable to soil and climate conditions of each locality in the region; to develop cattle and poultry rearing on a rational scale suitable to the conditions of each locality. To build and expand salt fields in Binh Nam commune, Thang Binh district (Quang Nam) to supply salt for consumption.

b/ Fisheries development:

- To develop centralized industrial and semi-industrial aquaculture in localities in association with environmental protection and bio-safety assurance in coastal areas and biodiversity conservation in inland waters. To develop culture of specialty aquatic species of high value (lobster, sea horse and mollusk species, etc.) suitable to the region’s advantages and, at the same time, to properly manage the quality of aquatic breeds and feeds in aquaculture. To form a fisheries center in Da Nang linked with the East Sea and Hoang Sa fishing ground. To promote aquaculture in Tam Giang lagoons (Thua Thien-Hue) and estuarial areas from Quang Nam to Binh Dinh;

- To build dry docks, piers and storm-shelter points in small gulfs, estuarial areas and onshore islets. To select foreign advanced technologies for processing aquatic products of high commercial value. To step by step upgrade large-capacity fishing fleets equipped with modem communication and navigation systems, fishing gear and cooling preservation systems to raise offshore fishing capacity. To properly organize logistics services (supply of water, ice and oil; purchase and preservation of aquatic products; maintenance and repair, etc.) for fishermen on long sea voyages.

c/ Forestry development:

To establish stable forest estates and strictly protect existing natural forests while stepping up the planting, tending and restoration of forests; to zone off land areas for regeneration and planting of protection forests in crucial headwater areas of big rivers for preventing flood and reservoir-bed deposits in areas having lakes and hydropower reservoirs, and plant coastal forests to ensure eco-balance. To enhance protection and development of national parks, conservation of biodiversity and protection of rare and precious fauna and flora genetic resources.

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To accelerate the building of a new countryside; to restructure plants and animals and develop commodity production zones for increasing incomes and stabilizing lives of people. To regard agricultural and rural economy as a development satellite of economic zones and urban centers in the region.

4. Cultural-social development:

a/ Education and training:

- To step up training and vocational training, especially training of high-quality human resources, to meet the region’s development requirements, attaching special importance to training human resources for the marine economy. To make the most use of tertiary and collegial training institutions; to build high-quality vocational training centers in Da Nang, Quy Nhon and Hue cities for the whole region; to build a number of hi-tech vocational training centers to train technicians for industrial parks (in Hue, Da Nang, Dung Quat and Quy Nhon). To prioritize development of human resources for high-quality services and tourism as well as electronics, software production, information technology and automation, etc.

- To build training capacity for medicine and pharmacy universities and research institutes in the region. To build Hue University of Medicine and Pharmacy into a key university of the region; to open a medicine faculty at Quy Nhon university.

b/ People’s health care:

- To consolidate and improve grassroots health networks and apply scientific and technical advances for raising the quality and efficiency of people’s health care so as to provide health care services for every household; to increase people’s access to quality health services, attaching importance to healthcare services for the elderly. To consolidate and develop preventive health networks to be capable of forecasting, supervising, detecting, controlling and eliminating epidemics, including new dangerous epidemics. To proactively prevent and control epidemics and basically eliminate infectious diseases; to eradicate leprosy and neonatal tetanus; to take the initiative in preventing and controlling cardiovascular, blood pressure, diabetes and mental diseases, HIV/AIDS, etc.; to ensure environmental sanitation and food hygiene and safety;

- To increase technical equipment for disease prevention, examination and treatment establishments from commune to provincial levels to provide universal health care services at commune and district levels and step by step provide specialized health care services at provincial level. To build the region’s specialized health centers in Hue and Da Nang cities to provide high-quality health care services for people. To expand and upgrade provincial-level general hospitals, and study the construction of specialized hospitals to detect and effectively treat non-infectious diseases;

- To socialize disease examination and treatment and health care activities for people; to diversify funding sources for investment in medical development and health care activities. To integrate population, family planning and health target programs to raise investment efficiency.

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d/ Poverty reduction, job creation and social security assurance: To synchronously, comprehensively and effectively implement poverty programs and projects; to create opportunities for the poor to access support policies on land, credit, vocational training, job creation, industrial and agricultural-forestry-fishery extension and product sale; to support poor households to develop production, increase incomes and stabilize lives.

5. Infrastructure development:

To synchronously develop economic and social infrastructure systems for promoting socio-economic development in the region and the Central Highlands region. To closely combine investment in transport infrastructure with investment in irrigation and sea dikes. To synchronously develop infrastructure systems of urban areas and rural residential spots.

a/ Transport development:

- Roads: To upgrade and expand national highway 1A with 4 lanes for motor vehicles and 2 lanes for motor and non-motor vehicles; to upgrade roads along the East-West economic corridor;

- Expressways: To step by step build Hue-Da Nang-Quang Ngai expressway with 4-6 lanes within the north-south expressway system;

- Railways: To upgrade and modernize the north-south railway; to further study feasible plans for investment in building a l,435mm-gauge railway; to study feasible plans on construction of the north-south high-speed railway; to study the construction of a railway tunnel through Hai Van pass and a railway linking with the Central Highlands region;

- Seaports: To further invest in comprehensive development of wharves, navigable channels, port support services and transport systems linking ports with the national transport system to meet socio-economic development requirements of localities in the region. To step up application of information technology to the management and operation of ports and port service activities;

- Airports: To further invest in upgrading and expansion of Da Nang, Phu Bai and Chu Lai international airports; to upgrade and expand Phu Cat airport.

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- To build capacity to study and assess water sources, plan, design and build irrigation works and manage water resources in river basins, ensuring rational exploitation and use of water resources with sustainable development;

- To consolidate and upgrade river dikes and sea dikes; to grow and protect breakwater forests along dikes to serve socio-economic development of coastal localities. To upgrade, improve and effectively operate existing irrigation systems. To further build and upgrade reservoirs in river basins for regulating flood and supplying water for production and daily- life activities;

- To further build and improve water supply systems to meet daily-life needs in urban centers, residential areas and industrial parks. To study the formulation of water supply projects suitable to rural and coastal areas and islands. To further build wastewater and rainwater drainage systems up to environmental standards in urban centers and industrial parks;

- To invest in aquatic breeds and build aquaculture infrastructure facilities, fishing ports, storm-shelter areas for fishing boats, and rural infrastructure facilities.

c/ Electricity supply and electricity supply systems:

To review master plans on and processes of flood discharge in hydropower plants in Thua Thien-Hue, Da Nang, Quang Nam and Quang Ngai, etc., in order to prevent damage to and adverse impacts on people’s lives; to build 110 kv, 220 kV and 500 kv power transmission systems and power distribution systems to meet increasing electricity use demands of industrial parks, urban areas and people. To survey and study the construction of wind farms and the use of solar and tidal energy;

d/ Information technology and communication:

To step up the application of information technology to economic development and social activities. To build modem broadband telecommunications infrastructure with large capacity and high speed to meet development requirements. To develop information technology and telecommunications to properly serve socio-economic development, national defense, security and social order and safety and effectively serve search and rescue at sea and in areas frequented by natural disasters, typhoons and flood. To develop telecommunications services for marine economic development, offshore fishing, safety and rescue at sea, and national security assurance.

6. Science and technology development:

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- To renew mechanisms and policies for science and technology management and development. To step up international cooperation on science and technology. To encourage and support the development of science and technology enterprises; to develop foreign-invested research institutes and Vietnam-based branches of foreign research institutes.

- To support investment in scientific research for agricultural, fishery and forestry production. To encourage the import of modem equipment and technologies for large-scale key industries and industrial products, new production industries and stages which are decisive to product quality and export production.

7. Management of natural resources exploitation and use and environmental protection:

- To manage and effectively exploit natural resources, ensuring environmental protection and eco-balance. To attach importance to development of green and environmentally friendly economies. To realize sustainable production and consumption; to step by step develop “clean energies,” “clean production” and “clean consumption.”

- To economically, rationally and effectively use agricultural land areas and raise the use efficiency of existing land areas. To exploit to the utmost unused land areas for growing perennial industrial plants and fruit trees; to make use of waste land and coastal sand land areas incapable of agricultural, forestry and fishery production for development of industrial parks and complexes and tourist sites and formation of new urban centers. To rationally use water resources; to protect ecosystems of headwater forests and vegetation cover for protection forests. To effectively prevent forest destruction and fires, grow trees in bare land areas and barren hills, and develop protection forests and economic forests. To exploit marine resources in a sustainable and effective manner in association with marine environmental protection, etc.

- To step up research, forecast and impact assessment activities and effectively implement natural disaster prevention and control solutions in response to climate change, especially sea level rise. To build surface-water and groundwater quality observation networks in the whole region to inspect and monitor the pollution level of water sources.

- To upgrade and build synchronous wastewater and rainwater drainage systems in urban centers; to ensure that domestic wastewater and wastewater from industrial parks, hospitals and craft villages shall be treated up to prescribed standards before being discharged into centralized systems. To collect and treat garbage in a centralized manner with a view to limiting environmental pollution. To build in each province in the region at least one solid waste treatment zone with advanced technologies and reasonable costs within the local budget limits to replace the dumping method for saving land and ensuring environmental sanitation.

8. Combination of socio-economic development with national defense and security assurance:

- To closely combine the two tasks of socio-economic development and strengthening of national defense and security; to build the posture of all-people national defense and people’s security to be ready to frustrate all plots and tricks of hostile forces.

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- To accelerate the upgrading and expansion of border roads; to build border patrol roads for combining economic development with strengthening of national defense and security.

V. DEVELOPMENT SPECIAL ORGANIZATION ORIENTATIONS

1. Development of urban centers and rural residential areas

a/ Urban space development: To develop urban networks associated with economic zones, industrial parks and complexes, border-gate economic zones, trade and tourist zones to form multiple centers; to create close linkages between localities in the region and neighboring regions.

- Driving-force urban system: The main driving-force urban centers of Hue-Da Nang- Chu Lai Ky Ha-Dung Quat (Van Tuong)-Quy Nhon, with Da Nang city as the core. This will be a chain of driving-force urban enters for the region and the entire Central Coast region.

+ Driving-force urban complex No. 1: Hue-Tu Ha-Phu Bai-Thuan An-Binh Dien, with Hue city as a central urban center to become a centrally run city.

+ Driving-force urban complex No. 2: Chan May-Da Nang-Dien Nam-Dien Ngoc-Hoi An, with Da Nang city as a central urban center of the region in Central Vietnam.

+ Driving-force urban complex No. 3: Nui Thanh-Doc Soi-Chau O-Van Tuong, with Nui Thanh urban center to be developed in association with the development of Chu Lai open economic zone and Van Tuong, Doc Soi and Chau o urban centers to be developed in association with the development of Dung Quat economic zone.

+ Driving-force urban complex No. 4: Quy Nhon city and adjacent areas, with Quy Nhon city as a central urban center to the south of the region, linked with Nhon Hoi economic zone to the east and urban centers to the north and west of Binh Dinh province.

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- Functional urban centers: To build tourist urban centers (in Hoi An old town, Thuan An and Lang Co townships, etc.); industrial urban centers (Tu Ha, Phu Bai, Dien Nam-Dien Ngoe, Tinh Phong, etc.); service urban centers for agricultural and forestry production zones and a number of mountainous urban clusters along the East-West economic corridor.

b/ Development of rural residential areas

- To reorganize rural residential areas, ensuring beauty, clean environment and traffic safety. To plan, renovate and build craft villages toward sustainable development.

- To effectively implement the program on building a new countryside in close association with socio-economic development national target programs in the region. To mobilize all resources for, especially people’s involvement in, building a new countryside; to build rural residential clusters with complete infrastructure facilities; to consolidate and build infrastructure facilities for aquaculture, fishing ports, storm-shelter areas for fishing ships, and rural infrastructure facilities.

2. Development orientations for economic zones

- To further invest in Chu Lai, Dung Quat, Nhon Hoi and Chan May-Lang Co economic zones under their modified and supplemented development master plans or plans. To develop these economic zones in association with restructuring the economy of each locality, combining economic development efficiency with social security assurance and environmental protection. To form core functions of each economic zone on the basis of bringing into play the advantages of each locality and effectively using natural resources in line with the region’s development orientations in each period.

- Chan May-Lang Co economic zone (Thua Thien-Hue): To develop tourism, services and key industries as well as clean and hi-tech industries in this zone; to develop this zone into a large and modem international trade center of the region and a tourist and resort center of regional and international caliber.

- Nhon Hoi economic zone (Binh Dinh): To step by step build this zone into a growth core and an industrial-service-tourist urban center of the region; a crucial international exchange hub, contributing to expanding markets in South Central Vietnam and the Central Highlands region, and a link with Cambodian, Lao and Thai markets; and a national tourist zone being a tourist center of the Central Coast region.

3. Development of sub-regions

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b/ The midland sub-region: To develop technical infrastructure corridors associated with security and national defense protection. To focus on development of industries-warehouses associated with national and international transport corridors. To combine development of farm economy and development of agriculture and forestry and restructuring of plants to rapidly increase the agricultural production value;

c/ The western mountainous sub-region: To step up growth and economic restructuring with a view to substantially improving people’s lives; to associate economic development in this sub-region with social stability and border defense and security assurance. To develop socio-economic infrastructure facilities, first of all transport systems, and form highland urban centers along Ho Chi Minh road and Truong Son Dong road; to develop industrial-cottage economic clusters associated with assurance of national defense, security and social order and safety in border areas.

VI. PROGRAMS AND PROJECTS PRIORITIZED FOR INVESTMENT STUDY

(See the attached Appendix).

VII. MAJOR SOLUTIONS FOR THE MASTER PLAN IMPLEMENTATION

1. Fields prioritized for development

- To focus on construction of complete infrastructure systems in the region, especially improving the infrastructure systems linking the region with the Central Highlands provinces, Laos, Cambodia and the northeastern region of Thailand; to complete coastal roads, expressways and airports; to renovate and upgrade existing railways to ensure transport safety in rainy season.

- To improve urban and tourist infrastructure systems; to build and renovate important irrigation and fisheries works to serve production and proactively prevent and control and adapt to climate change; to diversify, and improve the quality of, services.

- To develop economic zones, industrial parks and urban centers as growth cores to drive socio-economic development in localities in the region in association with eco-environmental protection and sustainable development.

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2. Solutions for improvement of the production and business environment and mobilization of investment resources for development

- To step up administrative reform in each locality in the region; to further improve the investment and business environment and create favorable conditions for all economic sectors to engage in socio-economic development. To properly perform investment attraction, calling and orientation. To issue incentive policies for priority industries in each locality based on its advantages and potential. To renew mechanisms and policies for attracting to the utmost financial resources from different economic sectors, especially idle capital from people, for production and business development.

- To raise the effectiveness of administrative reform toward publicity and transparency while improving the quality of the contingent of cadres and civil servants in order to create a favorable environment for investment attraction and properly settle administrative procedures. To raise the effectiveness of management and administration of administrations of all levels; to clearly define the competence and responsibilities of different agencies for addressing overlaps in the performance of assigned tasks and, at the same time, promote the prevention and control of bureaucracy, corruption and waste in the performance in state agencies.

- To mobilize and effectively use state funds for development of socio-economic infrastructure, human resources and science and technology, environmental protection, and implementation of national target programs. To reserve state budget funds for important infrastructure development works and projects which are unattractive to outside investors. To diversify forms of investment and step up investment in the form of public-private partnership for economic and social infrastructure development. To make the fullest use of official development assistance (ODA) sources for development of key large-scale technical infrastructure facilities.

- To further attract foreign direct investment suitable to the integration process. To renew foreign investment promotion activities toward attracting investment in sectors and fields in which the region has advantages, targeting at potential partners, especially developed countries with modem technologies, while encouraging more investment from traditional partners.

- To develop a transparent financial market; to step up socialization of investment in health, education and culture-sports with a view to mobilizing to the utmost different resources for development. To further implement support policies for development of infrastructure facilities of coastal and border-gate economic zones, creating a breakthrough in the development of the region and its localities. To develop and issue policies on development of natural disaster prevention and mitigation works, forest development and protection and development of irrigation works aiming to prevent consequences of floods and droughts and supplying water for production and daily-life activities.

3. Human resources solutions

- To elaborate a plan on training and retraining of corporate managers who will be capable of accessing advanced management sciences and new technologies, forecasting and accessing markets for global integration and development of marine economies. To enhance training of highly qualified human resources in the fields of education and training, health and culture for improving people’s awareness and health care services.

- To formulate and issue policies to promote the capacity of and attract talents and highly qualified technicians to work permanently in localities in the region. To intensify training of local human resources as suitable to the region’s socio-economic restructuring rate; to formulate policies on vocational training for workers in industrial parks and economic zones and workers shifting to work in non-agricultural sectors.

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- To prioritize scientific and technological projects to directly serve economic restructuring of the region toward stepping up development of marine economies. To combine research and application of advanced technologies on plant varieties and animal breeds, and product preservation and processing technologies with formation of technology centers in key sectors, especially marine economies and key products of the region.

- To formulate plans to train hi-tech human resources capable of participating in technology transfer cooperation projects and mastering technologies in the fields of biotechnology, electronics and information technology, etc., in order to gradually raise economic competitiveness to meet international and regional economic integration requirements.

- Enterprises are encouraged to invest in new and environmentally friendly technologies and expand forms of linkage and cooperation between production establishments and scientific research and application agencies and universities in order to apply sciences to life.

5. Development cooperation intensification solutions

- To intensify cooperation and linkage between localities inside and outside the region in investment promotion, mobilization and distribution of resources, construction of socioeconomic infrastructure facilities, and development of marine economies; training and attraction of human resources and job creation; scientific research and technology transfer; establishment of inter-provincial and inter-regional tourist programs and tours; provision of information for establishing the region’s socio-economic database to serve forecasting and coordination in environmental protection and response to climate change.

- To enhance cooperation on development of cross-border trade with the Lao People’s Democratic Republic, develop border-gate economic zones, and build transport and electricity supply networks between localities of Vietnam and the Lao People’s Democratic Republic.

Article 2. Organization and supervision of the master plan implementation

1. After being approved, the master plan serves as a basis for adjustment, approval and implementation of sectoral development master plans and master plans on socio-economic development of localities in the region.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with other ministries, sectors and localities in the region in:

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- Monitoring, urging, supervising and examining the implementation of the master plan and supervising the implementation of key investment programs and projects in the region.

- Studying and proposing mechanisms and policies for linkage and coordination among localities in the region and other regions; and attracting investment in the region’s key projects.

3. Related ministries and sectors shall:

- Adjust master plans on development of sectors and fields and key products in the region in conformity with the objectives, tasks and development orientations approved under Article 1 of this Decision.

- Study, formulate and submit to competent state agencies for promulgation a number of specific mechanisms and policies for successfully implementing the objectives and tasks set out in the master plan.

- Coordinate with the Ministry of Planning and Investment in organizing and supervising the implementation of the master plan; and supervise the implementation of key investment programs and projects of regional scale in order of priority in the fields under their management to promote socio-economic development of the region.

Specific tasks of ministries and sectors are listed below:

a/ The Ministry of Transport shall direct the construction and on-schedule completion of important transport works in the region; propose mechanisms for raising capital for transport development projects in the region; and supervise the implementation of transport projects in conformity with the approved master plan;

b/ The Ministry of Agriculture and Rural Development shall:

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- Complete the formulation and consolidation of irrigation and dike systems; direct the production of key agricultural and aquatic products in the region; and propose mechanisms and policies and support localities in the region in building hi-tech agricultural zones.

c/ The Ministry of Education and Training shall:

- Study and propose mechanisms and policies to promote links between training institutions and employers; create conditions for a number of universities to modernize physical foundations, develop the contingents of lecturers and training programs on par with those of advanced countries in the region;

- Coordinate with the Ministry of Planning and Investment, the Ministry of Labor, War Invalids and Social Affairs and related agencies in building Da Nang city into a high-quality human resource training center of the whole region.

d/ The Ministry of Industry and Trade shall:

- Direct on-schedule construction and planning of electricity centers and electricity supply networks in the region.

- Coordinate with other ministries and sectors in formulating a strategy to develop trademarks of Vietnamese products and goods to serve economic development; assume the prime responsibility for, and coordinate with related localities in, building networks of wholesale marketplaces and regional-level trade centers.

dd/ The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with related localities in, responding to climate change and sea level rise; protecting and exploiting natural resources and conserving biodiversity; and guide and direct localities in the region in formulating land use master plans and plans to serve socio-economic development;

e/ The Ministry of Construction shall examine and supervise the construction of hazardous waste treatment zones, cemeteries and regional-scale water supply systems; and coordinate with localities in building water drainage and wastewater treatment systems in urban centers;

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h/ The Ministry of Labor, War Invalids and Social Affairs shall direct and coordinate with related localities in building vocational training centers, especially regional-scale centers to train highly qualified workers in Da Nang city;

i/ The Ministry of Culture, Sports and Tourism shall assume the prime responsibility for, and coordinate with related ministries, sectors and localities in, improving the master plan on development of national tourist zones and sites in the region.

4. The People’s Committees of provinces and cities in the region shall:

- Take the initiative in reviewing investment programs and projects; formulate 5-year and annual socio-economic development plans to suit the objectives and tasks approved under this Decision.

- Coordinate with ministries and sectors in organizing investment promotion, propagation and advertising activities to engage domestic and foreign investors and different economic sectors in the implementation of the master plan.

- Supervise and examine the implementation of development investment projects in their localities according to their assigned functions and report supervision and examination results to the Prime Minister.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and the chairpersons of the People’s Committees of provinces and centrally run cities in the region shall implement this Decision.

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PRIME MINISTER




Nguyen Tan Dung

APPENDIX

LIST OF PROGRAMS AND PROJECTS PRIORITIZED FOR INVESTMENT STUDY IN CENTRAL VIETNAM’S KEY ECONOMIC REGION THROUGH 2020
(To the Prime Minister’s Decision No. 1874/QD-TTg of October 13, 2014)

No.

NAMES OF PROGRAMS AND PROJECTS

I

Transport infrastructure

1

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- Upgrading and expanding national highway 1A: La Son-Lang Co section; and building Phu Gia and Phuoc Tuong road tunnels; Hoa Phuoc-Vinh Dien section; Ky Ly-Bac Tam Ky section; Tam Ky-Nui Thanh section, etc.

- Upgrading national highway 49A (Thuan An port-Ho Chi Minh road); upgrading national highway 49B (My Chanh bridge-Loc Binh);

- Building expressways of La Son-Da Nang, Da Nang-Quang Ngai and Quang Ngai-Quy Nhon;

- Coastal roads from Thua Thien-Hue to Binh Dinh;

- Building Nam Quang Nam road, phase II, 90 km long (Tam Thanh-Tam Ky-Tra My-Tac Po-Dak To);

- Upgrading the whole national highway 24 - border patrol roads adjacent to the Lao People’s Democratic Republic.

2

Airways: Upgrading Da Nang, Phu Bai and Chu Lai airports.

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4

Railways:

- Upgrading the north-south railway;

- Studying construction of a railway linking with the Central Highlands region.

II

Electricity supply infrastructure

- Forming a 220KV dual-line circuit of Di Linh-Bao Loc-Song May;

- Building a coastal double-circuit 220KV electric line of Quang Ngai-Quy Nhon- Tuy Hoa-Nha Trang;

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Ill

Irrigation infrastructure

- Consolidating, protecting and upgrading existing sea dikes and river dikes in provinces from Thua Thien-Hue to Binh Dinh;

- Further completing Ta Trach reservoir (Thua Thien-Hue), Dinh Binh reservoir (Binh Dinh), Phu Ninh reservoir (Quang Nam), and Thach Nham reservoir and supporting reservoirs (Quang Ngai).

IV

Natural disaster warning and prevention and salvage and rescue works

- Developing observation networks;

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- Supporting offshore fishing and developing storm-shelter anchor zones associated with assurance of security at sea.

V

Education-training and vocational training

- Building Da Nang College of Medicine and Pharmacy;

- Building Hue University of Medicine and Pharmacy into a key university of the region;

- Building a high-quality human resources training center in Da Nang city;

- The Central Vocational College of Electro-Mechanical Engineering, Construction, Agriculture and Forestry;

- Hue Vocational College of Tourism;

- Vocational College No. 4 of the Ministry of National Defense;

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VI

Health

- Building intensive health centers in Hue city (Thua Thien-Hue) and Da Nang city;

- Expanding and upgrading provincial-level general hospitals.

Note: The locations, sizes, land areas and total investment amounts of the above works and projects will be calculated, selected and specified in the stages of formulation and submission of investment projects, depending on the capacity of balancing and raising investment capital in each period.-