DECISION

APPROVING THE PLANNING ON DEVELOPMENT OF NAM PHU YEN ECONOMIC ZONE, PHU YEN PROVINCE

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 29, 2005 Investment Law;
At the proposal of the president of Phu Yen provinces Peoples Committee and the Minister of Planning and Investment,

DECIDES:

Article 1. To approve the planning on development of Nam Phu Yen economic zone, Phu Yen province, with the following major contents:

I. FUNCTIONS OF NAM PHU YEN ECONOMIC ZONE

- To be an international trade exchange, industrial and service center, a seaport, a big regional urban center and an important gateway of the southern central region and Central Highlands.

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- To be an important center for investment attraction and international integration of Phu Yen province and the southern central region.

II. NAM PHU YEN ECONOMIC ZONE DEVELOPMENT VIEWPOINTS AND OBJECTIVES

1. Development viewpoints

- Developing branches and domains in Nam Phu Yen economic zone suitable to international economic integration trend; suitable to and closely associated with the socio-economic development of the southern central region, Central Highlands and the whole country;

- Developing Nam Phu Yen economic zone into a comprehensive breakthrough locality of Phu Yen province; an important development pole of the southern central region: an international trade exchange center, an industrial and commercial center, a big seaport of the southern central region and Central Highlands;

- Developing Nam Phu Yen economic zone into a general multi-branch and multi-function economic center, comprising a non-tariff sub-zone; industrial parks; Vung Ro and Bai Goc ports and port service sub-zone; a concentrated urban center with modern architecture; a marine tourism sub-zone;

- Applying long-term preferential and incentive mechanisms and policies to Nam Phu Yen economic zone in order to create the most favorable conditions for domestic and foreign investors: ensuring convenient, fast and one-stop administrative procedures in order to create the most favorable environment for production and business activities;

- Developing Nam Phu Yen economic zone with comprehensive and sustainable economic, social, political, security, defense, environmental and diplomatic efficiency.

2. Development objectives

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To build and develop Nam Phu Yen economic zone into a general multi-branch and multi-function economic zone, focusing on oil refining, petro-chemical and after-oil industries; consumer goods and processing industries, and export, in association with the development and efficient exploitation of Vung Ro and Bai Goc ports, Tuy Hoa airport. To build the economic zone into an industrial and service center as a breakthrough for socio-economic development of Phu Yen province; an important development pole and an international trade exchange center of the southern central region and Central Highlands, with a comprehensive infrastructure system and modern urban centers. To create prerequistes for socioeconomic development of the province and its vicinities.

b/ Specific objectives

- To efficiently tap advantages in natural conditions, geographical location for economic and political exchange, international and domestic services to boost regional economic development; to spread the development to nearby regions, proceeding to narrow the development gap with other provinces in the region and the whole country;

- To form spearhead sub-branches and products of high quality and competitiveness in various industries, services and agriculture in order to create posture and force for long-term development;

- To generate more jobs, to raise the quality of human resources, making decisive contributions to economic and labor restructuring towards modernization;

- To create an area with an open and favorable investment and business environment with the most preferential and incentive mechanisms and policies and effective management apparatus to attract investment.

III. DEVELOPMENT MODEL OF NAM PHU YEN ECONOMIC ZONE

Nam Phu Yen economic zone comprises principal functional sub-zones, including an urban center, a non-tariff sub-zone and a tariff sub-zone.

1. The non-tariff sub-zone, covering about 320 ha and associated with Vung Ro and Bai Goc port areas in Nam Phu Yen economic zone is an important breakthrough area of decisive nature to the zones development and investment attraction.

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3. Mechanisms and policies: Nam Phu Yen economic zone is entitled to the most preferential and incentive mechanisms and policies prescribed and approved by the Prime Minister, which are tempting enough to attract domestic and foreign development investment resources.

The Nam Phu Yen Economic Zone Management Board is a state management body attached to Phu Yen provinces Peoples Committee, which is set up under the Prime Ministers decision at the proposal of the president of Phu Yen provinces Peoples Committee and the Minister of Home Affairs, directly performing the concentrated and unified management of investment, construction and development activities in Nam Phu Yen economic zone according to planning, plans, schedules as well as mechanisms and policies already approved by competent state bodies.

IV. ORIENTATIONS FOR DEVELOPMENT OF BRANCHES, DOMAINS

1. Industrial development orientations

- To prioritize the development of such industries associated with the zones advantages as oil-refining industry, petro-chemical industry; industries associated with sea and seaport exploitation; intensive-labor industries; export-oriented industries; industries with advanced technologies, ensuring absolute safety on environmental impacts:

- To create leading industrial products of great impact and high competitiveness, meeting the regional and international integration requirements in order to create posture and force for long-term development:

- To prioritize the attraction of big enterprises and transnational companies, which act as motive forces for the development of Nam Phu Yen economic zone;

- To efficiently use land in three existing industrial parks; to additionally form some modern industrial parks in Nam Phu Yen economic zone; to develop industrial complexes, medium- and small-sized industrial establishments as satellites for industrial parks, big industrial enterprises in Nam Phu Yen economic zone.

With the above orientations, from now till 2020, to focus on the development of the following key industries: oil-refining and petro-chemical industry, ship-building and -repairing industry, automobile industry, engine and accessories manufacture industry, textile and garment industry, customer goods industry; electronics, precision, automation, assembly, processing, packaging industries; hi-tech food-processing industry; agricultural, forest and aquatic product-processing industry, etc. The orientations for development of specific industries are as follows:

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b/ Ship-building and -repairing industry: To encourage the development of shipyards capable of building ships of up to 20,000 DWT and repairing ships of up to 100,000 tons. To accelerate the execution, phase 2, of the project on a shipyard of Vinashin Group.

c/ Mechanical engineering industry: To strongly develop mechanical industries in service of manufacture and assembly of automobiles, motorized vehicles; assembly of machine tools: manufacture, repair and assembly of heavy means of transport, lifting equipment; manufacture of building machines, equipment for cement plants, sugar mills; manufacture of machines and equipment in service of processing of agricultural, forest and aquatic products; explosive equipment, precision instruments; assembly of digital equipment.

d/ Consumer goods industry: To develop such consumer goods industries as textile and garment, leather and shoe, electronics, electro-refrigerating, high-quality electrical equipment, electric cables, high-pressure mercury bulb industries to meet the whole southern central regions and Central Highlands consumption demands and for export.

e/ Agricultural and aquatic product-processing industries: To invest in the construction of agricultural and aquatic product-processing establishments in order to raise the value and use value of agricultural and fishery commodities; to study and start the construction of an export aquatic product-processing factory (with a capacity of 2,500-3,000 tons/year), to build a beer factory (with a capacity of 100 million liters/year), canneries, soft-drink factory, animal feed plants, etc.

f/ Other industries: To invest in the construction of processing establishments in order to raise the value and use value of agricultural, forest and fishery products; to study and start the construction of an export aquatic product-processing factory (with a capacity of 2,500-3,000 tons): canneries, soft-drink, animal feed factories; to develop manufacturing and processing industries in the field of biotechnology, new building materials; to manufacture, process and assemble office equipment; to produce, process and create product and package models; to produce and process high-quality articles (gold, silver, germ, cosmetics, etc.); to produce liquor, high-grade plastic products, cleansing substances, cosmetics, canned food and fruits for export, to produce packages, print product labels, produce household utensils, sport equipment, stationery.

2. Service development orientations

To focus on the development of key services and service products such as port and shipping, tourism, commercial, financial-banking, post-telecommunication, ... services. Orientations for development of specific services are as follows:

a/ To develop port and shipping services: To develop port and shipping services into a key economic branch, making Nam Phu Yen a maritime economic center of the southern central region. Cargo going through Vung Ro port is expected to reach about 1.8-2 million tons by 2010 and about 4.2-4.5 million tons by 2020. Therefore, to meet the development requirements, efforts should be concentrated on construction and upgrading of Vung Ro port to reach a capacity of 1.5 million tons by 2010 and 4-6 million tons by 2020.

- Port services: To diversify types of port services (shipping agency and maritime brokerage: ship piloting: cargo shipping agency; ship and crew supply; cargo delivery and tally; cargo handling, warehouses and storing yards, export and import, transshipment and transit; ship repair at port: marine environment sanitation, sea rescue, etc).

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b/ Tourism development: To increase investment development of tourism infrastructure; to prioritize the development of some modern large-scale tourist resorts; to restore and upgrade historical relics; to step up tourism propagation and advertisement; to propagate and educate people in order to raise their awareness of tourist services; to apply science and technology, particularly information technology, to tourism development; to harmonize socio-economic development, tourism development with environmental protection. To develop such tourist products as sea cruise and bathing, coastal and sea sports, marine creature survey and research, visiting islands on leisure ships, eco-tourism, convalescence, mountain climbing, camping, visiting scenic places, historical relics, fishing villages, official-duty, conference, fair, exhibition tourism; to form Vung Ro- Da Bia tourist centers; to join the provinces other tourist centers (including Song Cau, Tuy An, Tuy Hoa city), foreign tourist centers, Ho Chi Minh City, Da Nang, Hanoi, central and Central Highlands provinces in formulating different tours.

c/ Commercial development: To build Nam Phu Yen economic zone into a trade exchange, wholesale and retail center, a big exports and imports delivery center; a big market promotion and investment mobilization center of Phu Yen and the southern central region. The commercial development is directed at diversifying commercial activities in service of production and peoples life; prioritizing the development of commercial forms of entrusted export, border-gate transfer, temporary import for re-export, trade promotion, goods trading support services, etc; encouraging all economic sectors to participate in commercial activities, expanding joint venture and association with big domestic and foreign enterprises. Specific tasks are:

- Building a modern non-tariff area associated to Vung Ro port area;

- Building a large trade center of about 40,000-50,000 m2 of flooring space. It has the function of commercial transactions (provision of services on goods display, exhibition, information, sources, partners and investment opportunities, negotiation and conclusion of contracts, etc.), and office services (supply of flooring space, offices for representatives, branches, enterprises);

- Building an information and consultancy center in support of enterprises for consultancy activities and transactions between enterprises, between management bodies and enterprises, between domestic as well as foreign partners on commodity markets, services, technologies, personnel, capital;

- Building big trading establishments such as big and modern department stores of about 4,000-6,000 m2 of flooring space in combination with representative offices, trade-investment promotion, wholesale markets, medium-sized department stores in urban centers, industrial parks, tourist resorts and concentrated residential areas; markets at traffic hubs and rural residential areas, boosting the production of commodities to meet peoples increasing demands (in the 2006-2010 period, developing markets on the basis of upgrading the existing ones, in the 2011-2020 period, solidifying all markets);

- Developing and upgrading systems of major common-use warehouses.

d/ Financial-banking development: To build Nam Phu Yen economic zone into a big financial-banking transaction center of Phu Yen province; creating favorable conditions for foreign banks to set up their branches, especially branches of big banking groups in the world. To encourage the development of types of joint-stock banks, non-state credit for development of monetary services; expanding and diversifying banking services; developing forms of non-cash payment; diversifying banking services: money transfer, lending, financial leasing, payment, mortgage and pledge; via-account transaction, lending brokerage, property management, etc; diversifying types of insurance services, especially insurance of goods exported and imported through ports. To form a securities trading center or branch in the economic zone.

e/ Development of information and communication networks: To develop Nam Phu Yen economic zone into a big telecommunications center, focusing on the following principal tasks:

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- Building a modern, synchronous and widespread telecommunications network, providing diverse services of international quality, attaching importance to the development of rural telecommunications networks;

- Entering into joint-ventures with foreign countries in building telecommunications systems, primarily in entertainment and recreation areas, hotels for foreigners, centers, export processing zones and industrial parks, offices of enterprises in the province.

f/ Development of other services: To selectively, steadily and healthily develop up to national standards such services as consultancy, scientific and technological, property dealing, investment and market services, services of high-brain content, technological research and application, healthcare, education, culture, sport and urban services.

3. Agricultural-forestry-fishery development orientations

a/ Cultivation: To form farming areas applying high technologies, disease-free and sustainable aquaculture area. To strongly develop horticulture and farm economies; raising the value on cultivated land area to VND 70-100 million/ha on average. To vigorously restructure crops towards highly specialized and intensive farming; reserving 60-70% of the area under food crops for growing clean and high-grade vegetables in service of new urban centers, industrial parks and tourist resorts in the economic zone and Tuy Hoa city. To form an area for production of clean (safety) vegetables with the application of high technologies in Phu Lam.

b/ Husbandry: To strongly develop husbandry, particularly husbandry in form of industrial farms in association with processing, veterinary services, building disease-free cattle and poultry zones. To build some big farms in the economic zone combined with household-based farms of medium or small size, ensuring food supply for the economic zone and partly for export processing.

c/ Forestry development: To comprehensively use forest resources, combining forest protection and environmental protection with tourism. To strongly develop afforestation, including the planting of concentrated forests and scattered trees, forming a green tree belt to protect Nam Phu Yen economic zone. To formulate a project on planting of wind- and sand-shield forests in coastal areas. To work out plans on planting, tending and protecting protective forests, landscapes in Deo Ca pass area of Hoa Xuan Nam.

To encourage the development of forestry farms and agro-forestry farms; to develop the planting of scattered trees in urban centers, industrial parks, tourist resorts, green parks and the planting of trees along roads, etc. To strive for a greenery rate of 8-10m2/person, meeting the requirements of protecting and improving the living environment while creating ecological landscapes for the urban center in Nam Phu Yen economic zone.

To organize the management of forest flora and fauna, preventing and fighting forest fires, harmful creatures, trading in, transporting, exporting, importing, temporarily importing for re-export, transiting forest flora and fauna under current regulations.

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To transfer coastal fishermen to other occupations such as aquaculture, aquatic product processing, fishery services, tourist services. To develop tourism in combination with aquaculture in the basin of Ban Thach river. To continue investing in the development of offshore fishing vessels on the basis of consolidating and raising the efficiency of offshore fishing fleets. To intensify offshore fishing in order to protect and develop aquatic resources. To make detailed planning on brackish water aquaculture areas, aiming to form specialized aquaculture zones to meet the demands of the economic zone and create raw-material sources for export processing.

4. Social development orientations

a/ Population and labor: It is forecast that Nam Phu Yen economic zones population will reach around 120,000-125,000 and urbanization rate will be about 34% by 2010, which will respectively rise to around 156,000-160,000 and over 70% by 2020, respectively. The total social labor force will be 69,000 people (accounting for about 57% of the population) by 2010, which will rise to around 94,000 (about 60% of the population) by 2020. The labor demand for the development of Nam Phu Yen economic zone will be around 64,000 by 2010 and some 87,500 by 2020, of which about 32,000 for the agricultural-forestry-fishery sector, about 18,000 for the industry-construction sector and around 14,100 for the service sector, by 2010, which will respectively be 17,500,33,200 and 36,700 by 2020. Such labor demand is satisfied thanks to the attraction of laborers who come from neighboring areas to work in the economic zone and thanks to the labor restructuring in the direction of gradually transferring the agricultural labor force to industries and services. It is estimated that the agricultural-forestry-fishery labor will sharply reduce from current 81% to 50% by 2010 and 20% by 2020, and the non-agricultural labor force will grow fast, accounting for around 50% of the total labor force of the economic zone by 2010 and 80% by 2020 (of which the industrial-construction labor represents 38% and the service labor, 42%).

b/ Education and training: To develop qualified human resources, meeting the development requirements of branches and domains in Nam Phu Yen economic zone, with the following principal contents:

- Stepping up the socialization of education and training; building school physical-technical foundations. To strive for the target that 100% of schools in the economic zone will reach national standards before 2020. To additionally establish a number of general education schools of different levels in the new urban center, industrial parks, service zone, etc., in order to satisfy the schooling demands of youngsters in the school age groups. To strive to complete the universalization of secondary education by 2012;

- Consolidating and upgrading the existing colleges and universities towards multi-level and multi-branch training suitable to the increasing personnel demand of the economic zone. To cooperate in expanding the vocational training for rural agricultural labor force. To strive for the target that trained laborers will reach over 40% by 2010 and over 80% by 2020;

- Attaching importance to the training of professionals and entrepreneurs in industry, services, tourism, etc.; adopting preferential policies to attract domestic and foreign specialists and skilled laborers to work in the economic zone.

c/ Healthcare: To further materialize the Political Bureaus Resolution 46-NQ/TW, on the protection of, care for, and improvement of, peoples health in the new situation; to consolidate grassroots medical networks in service of primary healthcare for people in communities; to restructure medical examination and treatment networks, increase investment in and well manage human resources, to supply more equipment and facilities for the technical healthcare sector; to improve material foundations for existing medical examination and treatment establishments: to actively realize the preventive medicine, developing movements for disease prevention and hygiene and environmental protection; to materialize national health programs and prevent and fight dangerous epidemics in order to lower the rate of diseased people in communities; to well carry out the population-family planning work and national health programs.

To invest in upgrading Hoa Hiep Trung hospital and existing medical establishments in the economic zone. To develop new medical establishments with modern and high-quality equipment, meeting the medical examination and treatment needs of people, cadres and employees of the economic zone, including foreign sailors, specialists and tourists, in various forms of investment in the direction of socialization.

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- Building some cultural centers in populated quarters, upgrading information-public address networks in communes: perfecting the system of communal post-cultural houses:

- Building radio and television relay stations with modern equipment to cover the whole economic zone.

e/ Environmental protection and sustainable development assurance:

- Wastewater treatment: Wastewater in each functional zone (including daily-life wastewater and industrial wastewater) must be locally treated up to Vietnam environment standards before being discharged into the common water drainage system or being used for other purposes such as tree watering, road sweeping, fire fighting, industrial machine cooling, etc. Daily-life wastewater of new urban centers, tourist resorts, service establishments, etc., will be locally treated, flowing through the systems of main sewage built along streets to different areas then being pumped to common treatment stations before being discharged into the environment.

It is expected to arrange 4-5 separate treatment stations with a capacity of 10,000- 15,000 m3/ day each (with two phases, and around 2,000-5,000 m3/day in die first phase). In the non-tariff area, a system of sewage will be built to conduit wastewater to treatment stations before being discharged into the environment.

For industrial wastewater, a collection system and separate treatment stations will be built to treat wastewater up to permitted standards for reuse or for flow into common drainage sewage before being discharged into the environment. To prioritize investment in the construction of an advanced treatment system with modern technology for cyclical use to save water. Particularly, hazardous wastewater must be locally treated at every factory by appropriate methods up to set standards then conducted to wastewater treatment stations in industrial parks before being discharged into common drainage sewage.

- Solid waste treatment: Based on urban waste criteria, the daily-life waste volume of Nam Phu Yen economic zone is expected to reach about 60-70 tons/day by 2010 and around 179-200 tons/ day by 2020; and the industrial waste, around 160-200 tons/day by 2010 and 400-500 tons/day by 2020. In order to meet urban environment sanitation requirements, waste should be sorted out right at every unit in each functional quater and each family. To complete the construction of a common garbage treatment area for Nam Phu Yen economic zone and Tuy Hoa city on a planned area of about 30 ha, where advanced technologies will be applied for garbage treatment up to environmental standards.

- Treatment of dust, exhaust and noise: All factories and plants in the economic zone must be equipped with facilities for treatment of smoke, dust and noise not to beyond permitted limits and up to Vietnam standards. Investment projects in the economic zone must be enclosed with reports on environmental impacts before being executed. In addition, trees must be planted to protect and improve the surrounding environment.

5. Infrastructure development orientations

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- Upgrading Vung Ro port: Under the Prime Ministers Decision No. 202/1999/QD-TTg of October 12, 1999, approving the master plan on development of the system of Vietnams seaports till 2010, Decision No. 113/2005/QD-TTg of May 20, 2005, on the Governments action program for materialization of the Political Bureaus Resolution No. 39-NQ/TW and the orientations for communications and transport development till 2010 with a vision toward 2020, from now till 2010, Vung Ro port will see continued exploitation and comprehensive investment in items of shipping port construction at Bai Lach, phase 2. At the same time, a general shipping port of Vung Ro will be built in Bai Chinh for accommodation of ships of over 30,000 tons and oil tankers of 150,000 DWT, raising the cargo handling capacity of Vung Ro port to around 1 million tons/year by 2010; and after 2010, Vung Ro port will be upgraded with a capacity of around 4-5 million tons/year.

-.Investing in the construction of Bai Goc port into a big one, which can accommodate ships of over 250,000 DWT (under a project on infrastructure of Hoa Tam petro-chemical industrial park and Naphtha Cracking Phu Yen petro-chemical complex).

b/ Upgrading Tuy Hoa airport

At present, Tuy Hoa airfield (formerly Dong Tac airfield) is being exploited for two-way Tuy Hoa-Ho Chi Minh city route with three flights per week on ATR72 airplane. The Vietnam National Administration of Tourism and the Ministry of Transport plan to put Tuy Hoa airfield into service of tourism not only of Phu Yen but also of northern Khanh Hoa. In order to facilitate tourist development and execution of large-scale projects such as Vung Ro oil refinery, petro-chemical industrial park and Naphtha Cracking petro-chemical complex, etc., the Ministry of Transport is assigned to coordinate with Phu Yen provinces Peoples Committee in studying the upgrading of Tuy Hoa airport to meet regional development demands.

c/ Developing road and railway transport systems

- Outbound transport: Upgrading and building important roads and railways linking the economic zone to other areas, such as:

+ Upgrading and expanding the national highway 1A section running through Nam Phu Yen economic zone into 6 lanes;

+ Upgrading provincial road 645 into a national highway, which will serve as an artery linking Nam Phu Yen economic zone with Dac Lac of the Central Highlands, leading to Dak Rie border gate with Cambodia;

+ Upgrading national highway 25 (linking Tuy Hoa city with Gia Lai, linking to Ho Chi Minh road-national highway 14), ensuring smooth traffic from Phu Yen to the Central Highlands in the direction from Gia Lai to Bo Y border gate (Kom Tum);

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+ Formulating a project on Deo Ca road tunnel;

+ Upgrading Tuy Hoa railway station on the North-South railway into grade 2- station. To form Phu Hiep cargo station (mainly in service of Nam Phu Yen economic zone);

+ Building Tuy Hoa - Buon Ma Thuot railway, starting from Phu Hiep station and ending at Buon Ma Thuot and running along provincial road 645, and Ba river valley;

+ Investing in upgrading Tuy Hoa airport to meet regional development demands (in service of Nam Phu Yen economic zone, Van Phong economic zone and tourist development) with such capital sources as FDI, BOT, etc.

- Intra-economic zone transport: Investing in comprehensive construction and gradual modernization of important trunk roads in Nam Phu Yen economic zone according to the approved planning.

+ From now to 2010, to complete the construction of main roads in the economic zone. After 2010, to upgrade and complete branch roads in the new urban center and systems of internal roads in the non- tariff area, industrial parks, tourist resorts, etc.

+ Attaching importance to rural transport. By 2010, to basically complete the upgrading of existing communal and inter-communal roads into grade-4 delta roads;

+ Other traffic works: From now till 2010, to build a passenger car terminal sized about 1.5-2 ha; after 2010, to build another one according to the development rate of the economic zone, meeting peoples travel needs.

d/ Development of water supply and drainage systems:

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- Rainwater drainage: For the new urban center, industrial parks and tourist resorts: The drainage of rainwater is associated to the planning on the economic zones foundation elevation and the systems of enclosed self-running water drainage sewage and ditches. For old residential quarters: Suitable water drainage systems will be transformed, embellished or newly built for self-running into common water drainage systems. All the above water drainage systems must ensure effective water drainage for, environmental protection and all activities of, the economic zone.

e/ Development of power supply systems

For the near future, the sources of power supply for the area come from the national grids, from Quy Nhon - Tuy Hoa and Nha Trang - Tuy Hoa 110 KV transmission lines via the 110/35/0KV intermediate station of an output of 2x25 MVA.

In the future, when the Ba Ha and Eakrong Hnang river hydro-power plants, the Quy Nhon -Tuy Hoa and Nha Trang - Tuy Hoa 220 KV transmission lines and the 220/110 KV-125 MVA transformer station are completely built, the power sources for Nam Phu Yen economic zone will fully satisfy the demands. It is planned to build 5-7 110 KV stations in urban population quarters (with an output of 2 x 40 MVA); at industrial parks, warehouses, Vung Ro seaport, shipyard, tourist resorts, etc. (with an output of 2 x 63 MVA); 110 grid from 220 KV station with 110 KV sections of dual circuit leading to 110 KV stations; 22 KV grid of underground cable (for the new urban center) or insulated surface cable in case of funding difficulty; 22 KV grid with enclosed loop circuit. For rural areas, to upgrade the medium-and low-voltage grids of communes; raising the quality of power supply in service of production and daily-life activities of people.

f/ Building the East-West oil pipeline, linking Phu Yen with the Central Highlands provinces and the border triangle of southern Laos, northern Cambodia and northeastern Thailand.

V. ORIENTATIONS FOR LAND USE AND TERRITORIAL ORGANIZATION

1. Land use orientations

The land use orientations for Nam Phu Yen economic zone till 2020 are as follows:

Unit of calculation: ha

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Area

Percentage

Total natural area

20,730

100

I. Non-tariff area land

320

1.5

I. Free port area land

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0.34

2. Commercial and service area land

80

0.39

3. Industrial park and export processing zone land

70

0.34

4. Bonded warehouse land

100

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II. Tariff area land

20,410

98.5

1. Construction and urban land

7,750

37.4

a/ Non-civil use land

4,800

23.2

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300

1.4

- Industrial land

2,700

13.0

- Industrial warehouse, yard land

800

3.9

- Industrial development reserve land

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4.8

b/ Civil construction land

2,950

14.2

- Public-facility land

70

0.3

- Urban center land

1,500

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- Urbanized village land

700

3.4

- Resettlement land

300

1.4

- Specialists residential land

30

0.1

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50

0.2

- Isolated greenery and ecological park land

300

1.4

2. Tourist resorts land

800

3.9

3. Other land

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57.2

- Outbound transport and major infrastructure land

250

1.2

- Agricultural and aquacultural land

2,200

10.6

- Forest, mountain and hill land, unused land, other land

9,410

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2. Orientations for formation of functional sub-zones

a/ The central urban area: The central urban area functions as an administrative, management and executive center, a commercial-service-tourist center of the economic zone. Its population is estimated at 41,000 by 2010 and around 110,000 by 2020. Its specific size and location will be identified in the general construction planning of Nam Phu Yen economic zone. The central urban area will be studied for construction as a modern urban center with comprehensive economic and social infrastructure systems, green and clean environment, comprising the following principal functional sub-zones: the administrative area, the commercial-service area, the representative office area, specialized areas, public facilities, residential quarters, the convalescence area, etc.

In the 2008-2010 period, about 500-700 ha of construction land will be used for construction of resettlement area, specialists residential quarter, public commercial and service facilities, social infrastructures, apartment buildings, villas, garden houses, etc.

b/ The non-tariff area covers about 320 ha, linking with Vung Ro port area in Nam Phu Yen economic zone. It is an important breakthrough area decisive to the economic zones development and investment attraction. It is separated from the tariff area in the economic zone and inland Vietnam by a system of fence walls, with entrance and exit gates, ensuring the control by relevant functional bodies. In the non-tariff area, there is a customs office for supervision and inspection of, and carrying out procedures for, goods in and out; there are no residential quarters, no permanent or temporary residents (including foreigners). Its major activities cover production (processing, recycling, assembly of export and import goods for local consumption) and commercial trading (for commodities: export, import border-gate transfer, temporary import for re-export, distribution, retail shops and supermarkets, duty-free shops and supermarkets; for services: sorting, packing, transportation and deliver) of transit goods, preservation, storage, bonded warehouses, post and telecommunications, finance, banking, transport, insurance, entertainment and recreation, restaurants: for trade promotion: trade fair and exhibition, show rooms, branches and representative offices of domestic and foreign enterprises, financial-banking services and other commercial activities).

Due to particular topographical conditions of Nam Phu Yen economic zone, the non-tariff area cannot be arranged close to Vung Ro port like other economic zone; the location of the non-tariff area is preliminarily selected to be 14 km from Vung Ro port, with roads for convenient traffic to the inland, with favorable conditions for construction of fence walls separated from the outside. The entire non-tariff area of Nam Phu Yen economic zone comprises three principal quarters:

- The trade and service center, which covers about 80 ha, comprising the management and executive section, conference, trade fair and exhibition areas, representative offices, transaction offices for investment and trade promotion, showrooms, systems of retail supermarkets, duty-free supermarkets, post offices, banks, hotels and restaurants, high-grade entertainment and recreation facilities. This is also a place for keeping export and import goods, transiting goods via seaport, goods packing, package and goods production.

- The export processing zone, which covers about 70 ha, reserved for enterprises producing export goods and manufacturing goods for on-spot consumption.

-The bonded warehouse area, which covers about 100 ha, comprising the system of bonded warehouses, with services on preservation and delivery of export and import goods, transit of goods via port, goods packing, etc.

Particularly, the forward port, to be located at Vung Ro port, covers about 70 ha, comprising the port logistics area with container yards, roofed port warehouses, port administration and management service center.

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-.The tariff port area, which is expected to cover some 300 ha. It comprises the general port of Vung Ro with systems of wharves, storing yards, warehouses, port service facilities, port-related transport supply (port logistics).

-.Industrial parks: In Nam Phu Yen economic zone, a number of industrial parks will be developed with a total land area of about 2,700 ha. About 5-6 industrial parks (including existing ones) are expected to take shape with the following functions and key works:

+ Oil-refining, petro-chemical and chemical quarter: To build Hoa Tam petro-chemical industrial park on an area of 1,300 ha; Vung Ro oil refinery (100% foreign capital) with a designed capacity of 4 million tons/year;

+ Mechanical engineering park with the shipyard as core (which is capable of building ships of 10,000 DWT and repairing ships of 20,000 tons), building fishing ships, special-use ships, manufacture of containers, etc. Factories will be built in this park for assembly of machine tools, production and assembly of automobiles, motor vehicles; manufacture, repair and assembly of heavy transport means, lifting equipment, precision tools, assembly of digital equipment, production of construction machines and equipment for cement plants, equipment in service of agricultural, forest and fishery product processing, explosive equipment;

+ Building materials industrial park: To produce high-grade building materials:

+ Consumer goods industrial park: Textile and garment, leather and shoe, electronic, electro-refrigerating equipment, electrical equipment, high-quality electrical article, cable, high-pressure mercury bulb factories will be built in this park:

+ Multi-function industrial park: An export aquatic product processing plant (with a capacity of 3,000 - 3,500 tons/year), canneries, soft-drink, animal feeds, chemical factories with be built.

In addition to the above-listed factories, production or processing plants in the domains of biotechnology or new building materials; enterprises producing, processing or assembling office equipment, producing, processing, creating product and package models; producing or processing high-quality articles (gold, silver, germ, cosmetics, etc.); producing liquor; processing flooring and walling ashlars, asphalt concrete, high-grade building materials and pre-fabricated concrete products, tunnel bricks, high-grade plastic products; cleansing substances, assorted glass, glass processing; processing export fruits, canned food; printing goods labels; papers and paper products; household appliances, sport gears, stationery, will be minglingly-built in industrial parks.

-.Tourist resorts: It is planned to build in Nam Phu Yen economic zone 2-3 modern coastal tourist resorts on a total land area of about 800 ha. Each tourist resort will comprise such principal areas as shopping area, beach area, green park area, ashore sport and entertainment area, water sport and entertainment area and other service facilities. To develop such tourist products as sea bathing, ashore and sea sports, sea creature survey and research; visits to islands on leisure ships, eco-tourism; mountain climbing, camping; cultural tourism, visiting historical-and revolutionary relics, festivals, fishermen villages: official-duty, conference, trade fair, exhibition tourism.

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For urban population: Apart from the residential quarter in the central area (including high-rises and low-rises), some new residential quarters will take shape with a total land area of about 400-500 ha by 2010 and 1,500 ha by 2020, ensuring the living conditions for inhabitants in the new urban center and resettlers of industrial parks to be built in the future.

For rural population: Primarily to improve, embellish and re-arrange existing residential quarters to suit the planning and, at the same time, create favorable conditions for investment in the construction of social infrastructure, aiming to improve peoples living conditions. To restrict the relocation of people who have settled down for long now. For residential quarters lying within areas planned for industrial or port development, which must be relocated, there must be specific planning and reasonable schedule. For residential quarters lying within areas planned for construction of new urban centers (areas of urbanized villages), they will be incrementally improved and embellished to suit general landscapes. The remaining residential quarters will be kept intact in size and construction density.

- Greenery and park systems: To conserve intact the natural views: hills, water surface, rivers and canals, swamps (only leveled and filled up locally); to preserve the marine eco-system; to add trees of different kinds suitable to urban centers and tourism; to preserve and embellish historical relics; to exploit beaches, hills, river banks, canals in order to create greenery areas and attractive landscapes for tourist space and to sustainably protect the ecological environment. The greenery and park systems of Nam Phu Yen economic zone include:

+ The urban greenery and park system, which covers some 300 ha (including the central park in the new urban center and small-sized flower gardens in tourist resorts, new population quarters; green trees along streets and in public offices, industrial parks, etc.);

+ The protection forest system: To protect forests and develop forestation on the entire hilly and mountainous areas, ensuring the protection functions and combination with tourist development;

+ Scattered trees: On a total area of some 150-200 ha with greenery stretches along the coast, rivers, national highways, provincial roads, expressways, railways, surrounding the industrial parks.

VI. STAGES OF DEVELOPMENT OF NAM PHU YEN ECONOMIC ZONE AND INVESTMENT CAPITAL SOURCES

1. Development stages

a/ The 2008-2010 stage

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-.Formulating the Operation Regulation and setting up the management apparatus of the economic zone; formulating the process to call for investment; building the one-stop shop mechanism at Nam Phu Yen economic zone; making the list of projects calling for investment and attracting investment in branches and domains; conducting investment promotion at home and abroad, etc.

-.Elaborating the general planning on construction of Nam Phu Yen economic zone and detailed planning on functional sub-zones, of a 1/2,000 scale;

-.Building important infrastructure such as main traffic axes, seaports, water supply works, infrastructure of industrial parks, tourist resorts, service areas. To encourage enterprises to invest in infrastructure development in order to raise investment capital for dealing in infrastructure of industrial parks;

- -.Completing the compensations and ground clearance, land recovery and resettlement in the economic zone as planned. For unused land areas, measures should be taken to strictly manage them and handle cases of violation;

- Giving the final touch to the non-tariff area: To focus on formulation of mechanisms and policies for investment in infrastructure of the non-tariff area in order to call for foreign direct investment. Investors selected for investment in the construction of this area shall formulate detailed planning up to international standards and operation orientations of investors and lying within the framework permitted by the Government.

b/ The 2011-2020 stage:

-.Continuing with the construction and investment in comprehensive development and modernization of infrastructure systems of Nam Phu Yen economic zone;

-.Continuing with the complete construction of functional sub-zones under the approved general construction planning and detailed planning of Nam Phu Yen economic zone;

-.Realizing the detailed planning on industrial parks, tourist resorts, entertainment and recreation areas, non-tariff area and other economic works;

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2. Investment capital sources:

The capital for development of Nam Phu Yen economic zone is supplied from the following sources: The state budget capital supports for construction of important infrastructure works, supply of equipment for the operation of Nam Phu Yen economic zone; foreign investment capital (ODA, FDI); capital raised through land use right auction; credit capital, capital of domestic enterprises and people.

The total investment capital demand for the formation and development of Nam Phu Yen economic zone is extremely great as compared with the provinces resources and the central governments supports. Therefore, to satisfy the above-said investment capital demand, the province should work out measures to actively mobilize capital, primarily the internal resources, to mobilize to the utmost capital from land funds, attaching importance to attraction of capital from non-state economic sectors, socialization of investment in the domains of healthcare, education, culture and sports, etc.

VII. LIST OF PROGRAMS AND PROJECTS PRIORITIZED FOR INVESTMENTSTUDY

(See the enclosed Appendix)

Article 2. To assign Phu Yen provinces Peoples Committee, based on the objectives, tasks and orientations for socio-economic development of Nam Phu Yen economic zone stated in the Planning after it is approved, to coordinate with concerned ministries and branches in directing the elaboration, submission for approval and materialization according to regulations of the following contents:

-.The scheme on establishment of the Nam Phu Yen Economic Zone Management Board, with its functions, tasks, powers and organizational structure, for submission to the Prime Minister for consideration and decision;

-.The adjustments and supplements to the master plan on socio-economic development, the land use planning and plan of Phu Yen province to suit the development objectives of Nam Phu Yen economic zone;

-.The general construction planning, the detailed construction planning on functional sub-zones of Nam Phu Yen economic zone;

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-.Direction and creation of conditions for the Nam Phu Yen Economic Zone Management Board to operate and perform its assigned functions, tasks and powers;

- Direction of Peoples Committees of concerned districts to well carry out ground clearance; direction of the provinces functional bodies to coordinate with the Nam Phu Yen Economic Zone Management Board in settling matters related to development investment, management and operation of Nam Phu Yen economic zone;

- Measures and schemes for concrete, rational and feasible capital mobilization in order to attract investment capital, reduce the rate of investment capital raising from the state budget (central budget and local budgets) suitable to capital supply capability; proper mechanisms and policies for mobilization of resources in order to ensure the feasibility of the Planning. To attach importance to, and adopt solutions to investment in, and exploitation from, land funds for revenues and re-investment in service of socio-economic development of the economic zone. Immediately in the 2008-2010 stage, to formulate specific and attractive policies for investment capital mobilization and attraction, for every investment project and domain, primarily the policies for mobilization of resources from the exploitation of land funds, attraction of investment capital from all economic sectors, enterprises, investors inside and outside the locality, foreign investors;

- The study on the promulgation or submission to competent state bodies for promulgation (for matters falling beyond its competence) of specific mechanisms and policies in order to mobilize and efficiently use resources, encourage and attract investment for the fulfillment of objectives, tasks and orientations of socio-economic development of Nam Phu Yen economic zone.

Article 3. To assign concerned ministries and branches to perform the state management of Nam Phu Yen economic zone; to coordinate with and support Phu Yen provinces Peoples Committee and the Nam Phu Yen Economic Zone Management Board in elaborating, adjusting and supplementing the above-mentioned regulations, schemes and plannings, and in studying the formulation, submission to competent state bodies for promulgation, specific mechanisms and policies applicable in Nam Phu Yen economic zone; to step up the investment in, and realization of works and projects of regional scale and nature, important to the development of Nam Phu Yen economic zone, for which the investment has been decided: to study adjustments and supplements to plannings on branch development, plans on investment in relevant works and projects to be invested in Nam Phu Yen economic zone.

Article 4. This Decision takes effect 15 days after its publication in CONG BAO.

Article 5. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and the president of Phu Yen provinces Peoples Committee shall implement this Decision.

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APPENDIX

LIST OF PROGRAMS AND PROJECTS PRIORITIZED FOR INVESTMENT STUDY
(Attached to the Prime Ministers Decision No. 53/2008/QD-TTg of April 28, 2008)

Ordinal number

Programs and projects

Location

A

ON PLANNING WORK

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The general planning on construction of Nam Phu Yen economic zone

Dong Hoa district

2

Detailed planning on construction of functional quarters in Nam Phu Yen economic zone

Dong Hoa district

3

Detailed planning on aquaculture-cum- tourist development areas downstream Ban Thach river

Hoa Tam

4

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B

PROGRAMS AND PROJECTS PRIORITIZED FOR INVESTMENT STUDY

I

AGRICULTURAL, FORESTRY, FISHERY PROJECTS

1

Project on infrastructures of clean vegetables- producing areas with the application of high technologies

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2

Project on planting wind- and sand-shielding forests

Along coast

3

Projects on planting and tending forests at Deo Ca

Hoa Xuan Nam

4

Project on aquaculture-cum eco-tourist development area downstream Ban Thach river

Hoa Tam

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Project on ground leveling and embankment of northern downstream bank of Ban Thach river

Dong Hoa district

6

Project on ground leveling and embankment of southern downstream bank of Ban Thach harbor

Dong Hoa district

7

Project on Phu Lac fish harbor

Hiep Nam district

8

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Dong Hoa district

II

INDUSTRIAL PROJECTS

1

Vung Ro oil refinery

Hoa Tam

2

Project on Naphtha petro-chemical complex

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3

Project on export aquatic product-processing plant

Hoa Hiep 1 industrial park

4

Project on pre-engineered steel frame production factory

Hoa Hiep 1 industrial park

5

Export rattan processing plant

Hoa Hiep 2 industrial park

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General petroleum depot and oil pipeline to the Central Highlands

Dong Hoa district

7

Electronic and mechano-electrical article production plant

Hoa Hiep 1 industrial park

III

TOURISM AND SERVICE PROJECTS

1

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Hoa Xuan Nam

2

Project on a trade center south of Tuy Hoa city

Phu Lam

3

Project on Phu Yen fishery logistic service center

Phu Lam

IV

TECHNICAL INFRASTRUCTURE PROJECTS

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Urban and population quarter infrastructures

1

Investment project on infrastructure of the central area of Hoa Vinh township, Dong Hoa district

Dong Hoa district

2

Investment project on infrastructure of Hoa Hiep Trung township (the planned separation of Hoa Hiep Trung commune)

Hoa Hiep Trung

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Project on urban infrastructure south of Tuy Hoa city - Phu Lam

Dong Hoa district

4

Investment project on infrastructure of Phu Lac residential quarter (north of Da Nong river)

Hoa Hiep Nam

5

Project on improvement and upgrading of infrastructure of residential quarters in Nam Phu Yen economic zone

Dong Hoa district

6

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Hoa Tam

7

Project on technical infrastructure of residential quarters in service of Hoa Hiep industrial park, Hoa Hiep Trung commune

Hoa Hiep Trung

8

Project on ground leveling of area west of Hoa Hiep Bac commune - National Highway 1A

Hoa Hiep Bac

Transport infrastructure

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1

Project on improvement and upgrading of Ba Ban-Hoa Hiep Trung route

Dong Hoa district

2

Investment project on upgrading and construction of Go Mam-Dong My route-Hoa Hiep 1 industrial park (including railroad underbridge)

Dong Hoa district

3

Urban infrastructure route south of Tuy Hoa city - Hoa Hiep 1 industrial park - Vung Ro

Dong Hoa district

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Project on upgrading and construction of Phu Khe - Phuoc Tan road

Dong Hoa district

5

Project on upgrading of Tuy Hoa airfield

Phu Lam

6

Project on Vung Ro port

Hoa Xuan Nam

7

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Hoa Tam

8

Project on railroad underbridge and guide to Hoa Tam petro-chemical industrial park

Hoa Tam

9

Project on Bai Cua-Highway 1A road

Hoa Xuan Nam

10

Project on ground leveling and embankment of southern bank of Da Rang river

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11

Project on Phuoc Giang bridge

Dong Hoa district

12

Project on railroad connecting Bai Goc port to North-South railway

Dong Hoa district

13

Project on Phu Hiep railway station

Hoa Hiep Trung

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Project on Deo Ca road tunnel

Dong Hoa district

15

Project on Uot Lam-National Highway 1A road

Dong Hoa district

16

Investment project on construction of rural road systems

Dong Hoa district

V

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1

Project on technical infrastructure of Hoa Tam petro-chemical industrial park

Hoa Tam

2

Project on technical infrastructure of Hoa Hiep 1 and 2 industrial parks, Dong Hoa district

Hoa Hiep Trung

VI

WATER SUPPLY AND DRAINAGE PROJECTS

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1

Project on daily-life water supply in the economic zone

Dong Hoa district

2

Project on water supply systems and water plants in service of oil refinery and petro-chemical industrial parks

Hoa Tam

3

Project on water supply systems and wastewater treatment plants in Nam Phu Yen economic zone

Dong Hoa district

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POWER SUPPLY PROJECTS

1

Projects on power grids and transformer stations in Nam Phu Yen economic zone

The entire zone

2

Project on electricity generation complex, petro-chemical industrial park

Hoa Tam

VIII

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1

Project on earth digital television

The entire region

2

Project on construction of optic cable system

The entire region

IX

WASTE TREATMENT PROJECTS

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1

Project on wastewater treatment plant, Hoa Tam petrochemical industrial park

Hoa Tam

2

Project on industrial and urban waste treatment plants

Population quarters and industrial parks

X

CULTURAL, SOCIAL, PHYSICAL TRAINING AND SPORT PROJECTS

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Project on physical training and sport complex in service of Nam Phu Yen economic zone

Dong Hoa district

2

Project on Vung Ro numberless ship monument

Hoa Xuan Nam

3

Project on formulation of commune/ward-level cultural institutions

The entire region

4

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The entire region

XI

MEDICAL PROJECTS

1

Project on upgrading of health centers

The entire region

2

Investment project on equipment upgrading and expansion of Viet-Han hospital

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XII

PROJECTS ON EDUCATION AND TRAINING

1

Project on Branch 2 of Phu Yen university in the urban center south of Tuy Hoa city

Phu Lam

2

Project on upgrading of primary, lower secondary and upper secondary schools

The entire region

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