THE PRIME MINISTER | THE SOCIALIST REPUBLIC OF VIETNAM |
No.880/QD-TTg | Hanoi, June 09, 2014 |
THE PRIME MINISTER
Pursuant to the Law on Government Organization dated December 25, 2001;
Pursuant to the Prime Minister’s Decision No.879/QD-TTg dated June 09, 2014 on approving the strategy for industrial development in Vietnam by 2025 with a vision towards 2035;
In consideration of the request sent by the Ministry of Industry and Trade,
HEREBY DECIDES
a) Industrial development shall focus on certain industries to meet domestic demands and speed up the exportation.
b) The emphasis is on the manufacturing industry, the enhancement of competitiveness in the global market, and the robust growth of ancillary industries in order to become an integral part of the global manufacturing chain.
c) Private sector and foreign investment should be promoted; the sustainable development of non-state economic sector should be intensified. The growth of medium and small sized enterprises must be taken into consideration.
d) The growth of industrial manpower is considered as the decisive factor in succeeding in the industrialization and modernization process.
dd) Industrial development must conform to environmental standards and pave the way for the green technology for the post-2020 period.
a) The rate of industrial value-added growth by 2020 is expected to achieve from 6.5% to 7.0% per annum and such rate for the period from 2021 to 2030 is expected to obtain from 7.5% to 8.0% per annum.
b) The growth rate of industrial production value by 2020 is expected to achieve from 12.5% to 13.0% per annum and such rate for the period from 2021 to 2030 is expected to obtain from 11.0% to 12.0% per annum.
c) The proportion of industrial and construction sector in the gross domestic product (GDP) by 2020 is aimed to account for 42% - 43% and, by 2030, will increasingly vary from 43% - 45%.
d) By 2020, the proportion of manufacturing industry is expected to account for 85% - 90% of industrial production value; the value of hi-tech industrial and utility products is expected to gain about 45% in proportion to GDP; by 2030, these proportions are aimed to surge by 90 - 92% and above 50% respectively.
dd) The energy-to-GDP elasticity coefficient by 2015 is expected to equal 1.5; 1.0 by 2020 and less than 1.0 after 2020.
e) The average increase in the ratio of greenhouse gas emission in the industrial sector will vary from 4% - 4.5% per annum.
a) Accelerate the change in industrial structure with a view to rapidly increasing the proportion of manufacturing industry and those that are of high technological intensity.
b) Develop fundamental industries in order to meet the demand for basic means of production in the economy for the ongoing development.
c) Prioritize the growth of industrial sectors that have competitive advantages, and make a bid to manufacture several products identified by reliable brands to participate in the key export supply chains across the country.
d) Concentrate on developing ancillary industries, forming the assignment of production tasks, entering into a connection or cooperation in each stage of product manufacture.
dd) Set up a proper spatial plan for industrial areas in order to uphold competitive advantages at different regions and areas as well as provide favorable conditions for an effective connection.
a) Mechanical engineering - metallurgy
- Invest in and develop some of key mechanical engineering disciplines and products in order to satisfy primary demands for economic development such as engines and machinery used for agriculture, forestry, aquaculture and processing industry, machine tools, construction engineering, shipbuilding engineering, electrical and electronic devices, automobile – transport engineering. Establish a few of key engineering incorporations that take up their leading role in accelerating the industrialization in the context of the market economy, international and regional integration.
- Develop the metallurgy in an attempt to use modern and environment-friendly technology, synchro devices with high conjugation, and material and energy consumption indices; gradually meet demands for various types of steel used for mechanical engineering, alloy steel and some non-ferrous metal; focus on dealing with basic manufacturing stages such as casting, forging, annealing, product quality testing.
- Build a firm cooperation with the defence industry, design programs and projects for the manufacture of dual-use products in order to make best use of resources and raise the availability of these products to serve the national defence purpose whenever required.
- The growth rate of industrial production value in the field of mechanical engineering and metallurgy by 2020 is expected to annually achieve from 15% to 16%, and such rate is expected to gain from 14% to 15%.
- The proportion of mechanical engineering and metallurgy industry by 2020 is aimed to account for 20% - 21% and, by 2030, will increasingly vary from 22% - 24%.
- By 2020, mechanical engineering and metallurgy industry will meet 45% - 50% and, by 2030, up to 60% of total domestic demand.
- By 2020
An effort must be made to develop the following product lines:
+ Machinery and equipment used in the electrical engineering: manufacturing and assembling electric generators with the output of up to 600 MW; wind turbines, solar batteries; researching and developing 500kV transformers; manufacturing small electric motors.
+ Tools and instruments: inventing and manufacturing moulds, calibration and measurement devices; developing hi-tech automatic control systems, and precision engineering.
+ Lifting equipment: manufacturing lift trucks, high-pressure devices for vessels.
+ Dedicated machinery: manufacturing the processing equipment for agro-forestry products, food, product packing and labeling devices; petroleum equipment and machinery; medical equipment.
+ Motor vehicle engineering: manufacturing petrol engines, gearbox used for cars; assembling various types of tourist and passenger coaches or vans, light trucks and farm utility vehicles; manufacturing diesel engines.
+ Nautical equipment: manufacturing ship engines; building new ships with enormous capacity.
+ Machinery and equipment used for agricultural purposes: manufacturing medium-sized diesel engines, small-sized petrol engines with low output capacity, farming machines, food and beverage storage and processing equipment.
+ Oversize and overmass facilities, and oil rigs.
+ Steel industries: continuing to develop and implement projects of which the planning has been approved by competent authorities.
+ Enhancing the application of advanced technology in the production of large-sized steel plates and shapes, unwedded steel pipes; special steel used in the mechanical engineering and national defence industry.
- By 2030
Carry on with the investment in several hi-tech and modern projects in order to invent and manufacture equipment or facilities to serve the purpose of making products which are of green, environment-friendly attributes, less energy and material consumption, high added value, and light material utilization; producing high-quality household appliances made of new materials; producing and assembling built-in devices and equipment for airplanes, positioning systems for air and sea traffic management; inventing and manufacturing testing, calibrating and measuring devices, and medical equipment.
b) Chemical industry
- Develop the chemical industry in a bid to use advanced and modern technology to manufacture high-quality products with competitive price, and minimize and restrict hazardous chemical waste or sewage to be leaked into the environment.
- Develop the manufacturing industry of basic chemicals, petrochemicals and agricultural chemicals.
- The growth rate of industrial production value in the field of chemical industry by 2020 estimates 14% to 16%, and, by 2030, will gain from 11% to 13%.
- The proportion of chemical industry by 2020 is aimed to account for 13% - 14% and, by 2030, will increasingly vary from 14% - 15%.
- By 2020, the mechanical industry will meet 45% - 50% and, by 2030, up to 60% of total domestic demand.
- By 2020
+ Continue to invest in projects on production of fertilizers such as DAP, urea fertilizers; manufacturing radial tires for automobiles; producing basic chemical products such as H2SO4 and H3PO4; manufacturing Cephalosporin antibiotics, Sorbitol; excipients and vitamins.
+ Develop the petrochemical industry to provide materials to make plastic products (meet 40% - 50% of total domestic demand from other industries).
+ Continue to execute expansion projects at the second stage and several new projects in accordance with the approved planning composed by the chemical industry.
- By 2030
Based on the market demand and investability at a specified period of the year 2020, the expansion of several projects must be assessed on the basis that new technology will be applied to ensure these projects generate higher economic, social and environmental efficiency. The projects to be implemented in the future according to the planning include the production of luxurious cosmetics, and the manufacturing of rechargeable batteries for hybrid and plug-in electric vehicles. The development of pharmaceutical chemical industry (vaccine production industry) will be further ongoing.
c) Electronics and information technology industry
- Elevate the electronics and information technology industry into a key industry playing a crucial role in supporting the development of other industries.
- Continue to improve the manufacturing and assembling of electronic and computing devices in order to meet the demand for electronic products in the domestic and exporting market; enhance the firm cooperation with world-class electronics and information technology incorporations with the aim of approaching modern technology and improving the competence of domestic enterprises in the production of spare parts and components.
- Increase incentives to develop the production of computer software products that serve the needs of other industries as well as participate in the exporting market.
- The growth rate of industrial production value in the field of electronics and information technology industry by 2020 estimates 17% to 18%, and, by 2030, will gain from 19% to 21%.
- By 2020, the proportion of electronics and information technology industry to the whole industrial structure will make up from 9 to 10% and meets 65 - 70% of total market demand; by 2030, it is expected to make up 12 – 13% and meet 75 - 80% of total market demand.
- By 2020
Research, design, manufacture and assemble dedicated electronic devices, industrial robots, and some of common electronic and electromechanical spare parts and components. The following projects and programs will be taken into account:
+ Computers, stationery and office supplies: researching and developing the network of integrated information technology and communications devices (wired or wireless network) and the integration of multi-functional attribute of dedicated and commonly—used devices;
+ Dedicated electronic appliances: gradually master the advanced technology for the production of transmission, connection and commutation devices; manufacture and assemble hi-tech control equipment and systems; manufacture electronic measurement, surveillance and alert appliances; manufacture purpose-built monitor; manufacture commonly-used electronic medical equipment; manufacture and assemble multi-frequency senders and receivers; manufacture and assemble detection, remote sensing and positioning systems.
+ Civilian appliances: Boost up production capability by forming joint ventures, or organize the production activities based on the purchase order placed by component suppliers through the development of projects such as manufacturing and assembling multifunction digital television broadcasting devices; various digital cameras; Internet television; manufacturing audiovisual devices used for training purposes.
+ Software industry: in addition to developing computer programs and operation systems used for particular purposes, focusing on the development of the application softwares and services on the platform of currently popular operation systems. Develop embedded softwares, and designing and modeling softwares.
Receive and master the new technology for the production of servers and external accessories in conformity with next-generation Internet; wireless information technology devices; high-standard electronic household appliances; synchronous components comprising flash RAM (also known as flash memory); electromechanical, automatic control apparatus; the technology for supporting the production of multi-layer printed circuit boards and high-precision moulds; medical electronics industry.
- By 2030
+ Strive to reach the target of 80% of self-sufficient softwares supplied to the population across the country.
+ Diversify product lines and types of hardware devices to meet more than 70% of total domestic demand and increase the proportion of wireless device production when required.
+ Completely apply the digital technology to existing devices and technologies.
d) Textile, garment, leather and footwear
- Develop textile, garment, leather and footwear in the direction of specialization and modernization in order to make a breakthrough in product quality and quantity.
- Accept exportation as the target for the development of each industry; simultaneously make the utmost effort to meet entire domestic demands. Put strong focus on developing ancillary products, producing raw materials, improving the added value of products in the industry.
- The growth rate of industrial production value in the field of textile, garment, leather and footwear by 2020 is expected to make up 10% to 12%, and, by 2030, will gain from 8% to 9%.
- By 2020, the proportion of textile, garment, leather and footwear industry to the whole industrial structure will make up from 10% - 12% and meet 90% - 95% of total market demand; by 2030, it is expected to make up 7% - 8% and meet 100% of total market demand.
- By 2020
+ Continue to develop the production of textile, garment, leather, footwear products in the direction of supporting exportation in connection with meeting the domestic demand in terms of design, quality and price which match the purchasing power of consumers living in different regions, especially those living in rural and mountainous areas;
+ Make investment in upgrading the existing production line or purchasing the new production line of high-fashion products; build the designing and styling centers at the modern scale; continue to work on the 5-billion-meter cloth program. Enter into a partnership with the petroleum industry in investing in some synthetic fiber projects.
+ Conduct the study on construction of trade promotion center for specific industries. Focus on meeting the demand for essential materials provided for textile, garment, leather and footwear industry; make effective use of the synthetic fiber projects.
- By 2030
+ Focus on developing raw cotton and cattle-breeding regions to take the initiative in supplying a part of raw cotton and leather for this industry.
+ Continue to research and develop various kinds of premium fashionable clothes and shoes in order to meet the market demand for such high-quality products.
dd) Agro-forestry and aquatic products, food and beverages
- Work towards a modern industry and gradually raise its competitiveness to actively keep pace with the development of that industry in the region and the world. Pay special attention to the construction and development of reliable brands on the domestic and exporting market;
- Focus on developing large-scale raw material areas to serve the processing purpose on the basis of the widespread use of new varieties which can generate high productivity and quality, application of technical advances in cultivation and post-harvest handling.
- The growth rate of industrial production value in the field of agro-forestry and aquatic products, food and beverages by 2020 is estimated to make up 9% to 10%, and, by 2030, will possibly gain from 8% to 9%.
- By 2020, the proportion of agro-forestry and aquatic products, food and beverages to the whole industrial structure will make up from 25% - 27% and meet 80% - 85% of total market demand; by 2030, it is expected to make up 21% - 23% and meet 90% - 95% of total market demand.
- By 2020
+ As for the beer – alcohol – beverage industry and vegetable oil: Follow the approved planning for industrial development.
+ Establish plants or factories for food and aquatic product processing with advanced technology in the advantageous areas of raw materials; make investment in upgrading plants or factories for aquatic and animal feeds.
+ Manufacture functional food and process seafood by the application of biotechnology.
+ Develop the industrial production of exported wooden furniture.
- By 2030
Continue to make better use of potential advantages, modernize the cultivation technology in raw material areas, process products so as to develop concentrated areas which locate such production stages as the manufacturing of raw materials, processing, deep processing of products in the food and beverage industry in order to meet the requirements for food hygiene, and international standards and regulations.
e) Building material industry
- Foster scientific and technological development, bring new technologies and modern equipment for production of building materials in order to improve the quality and reduce the product cost, and increase the competitiveness upon participating in the market.
- Select reasonable investment scale; continue to create products that are capable of competing in the domestic and exporting market.
- The growth rate of industrial production value in the field of building material industry by 2020 is estimated to make up 8% to 9%, and, by 2030, will gain from 6% to 7%.
- By 2020, the proportion of building material industry to the industrial structure is expected to accounts for 5% - 6% and 4% - 5% by 2030; meet about 90% of the domestic market demand for conventional construction products; by 2030, meet 95-100%.
- By 2020
+ Promote the development of plants for unbaked material production.
+ Complete the conversion of vertical shaft kiln cement plants into rotary kiln cement plants before 2016. Remain balanced between the identical capacity of cement grinding and clinker manufacturing, and between the regions at the highest rate.
+ Improve the capacity of tile and sanitary ceramic production to meet the needs of the domestic market and partially serve the exporting purposes.
+ Suspend the investment in the construction of plants for production of conventional glass used in the construction industry, focus on researching and manufacturing special glass products that have high utility and meet the needs for modern structures.
+ Continue to implement the expansion projects that are developed at the second phase and some new projects according to the approved planning of the construction material industry.
- By 2030
Based on the market demand and investability at a specified period of the year 2020, the investment in and expansion of several projects will be encouraged on the basis that new technology will be applied to ensure these projects generate higher economic, social and environmental efficiency, including the production of energy-efficient glass, interior tiles capable of preventing water vapor condensation, anti-fouling, odor absorbing; exterior tiles capable of waterproofing, anti-adhesion, self-cleaning, moss and algae prevention.
g) Mineral extraction and processing
- Develop mineral extraction and processing on the basis of effective use of the potential conditions available across the country, connected with importation; invest in the extraction at a economic scale, strengthen the deep processing, ensure cost efficiency and improve the effective utilization of minerals; excellently carry out the environmental remediation and recovery;
- Intensify the investigation, reserve assessment and preparation of natural resources for extraction and processing according to the approved planning for the development of this industry.
- The growth rate of industrial production value in the field of mineral extraction and processing industry by 2020 is estimated to make up 7% to 8%, and, by 2030, will gain from 6% to 7%.
- By 2020, the proportion of mineral extraction and processing industry to the whole industrial structure will make up from 1% - 2% and meet 65% - 70% of total market demand; by 2030, it is expected to make up 0.5% - 1.0% and meet 75% - 80% of total market demand.
- By 2020
Continue to invest in the exploration of mines and ores such as bauxite, iron, titanium, lead-zinc, tin, gold, copper, nickel, molypden, serpentine, barite, grafit, fluorite, bentonite talc, diatomite, etc. at prospective sites to serve as the basis for the work of extraction and processing, which can meet the domestic market demand and partially satisfy the exporting market.
+ Alumina-aluminum industry: design and implement the approved alumina production projects; conduct the study on aluminum electrolysis plants.
+ Other metals: Based on the capability to supply raw materials and the market demand, choose to invest in several plants for tin metallurgy, tungsten polymetallic processing; the exportation of tungsten alloy; antimony metallurgy; the production of metallic nickel and accompanying products.
- By 2030
Based on the market demand and investability at a specified period of the year 2020, the expansion of several projects must be assessed on the basis that new technology will be applied to ensure these projects generate higher economic, social and environmental efficiency.
h) Electric power industry
- Make efficient use of domestic energy resources for electric power development, associated with the importation of electricity, appropriate fuel, and diversify primary energy sources for electricity generation, fuel conservation as well as ensure the energy security for the future use.
- Step by step create and develop competitive electricity markets, diversify investment and electronic business modalities. The State only reserves their exclusive right to the transmission grid to ensure the security of the national energy system.
- Develop electric power industry based on a fair and effective use of primary energy resources of each region; ensure adequate, continuous and safe electric supply to meet the electric demand in all regions nationwide.
- The growth rate of industrial production value in the field of electric power industry by 2020 is estimated to make up 13% to 14%, and, by 2030, will gain from 10% to 12%.
- By 2020, the proportion of electric power industry to the whole industrial structure will make up from 4 to 5% and meets 85 - 90% of total market demand; by 2030, it is expected to make up 5 – 6% and meet 95 - 100% of total market demand.
- By 2020
+ Complete electric power projects under the developmental planning for national power, approved by the Prime Minister
+ Develop new and renewable forms of energy according to the developmental planning, approved by the competent authority, in order to meet the requirement for diverse sources of energy (wind, solar, biomass, etc.). Use the fuel sources for electricity production in an economical and effective manner, and mitigate environmental pollution.
+ Intensify the exchange, purchase and sale of electricity with neighboring countries in order to enhance the power supply in the dry season that usually occurs in the northern region.
+ Develop the electrical grid at all levels of voltage, make sure it to be synchronized with electric power projects.
- By 2030
It is estimated that total installed capacity of power plants will achieve about 146,800 MW of which the hydropower is expected to account for 11.8%; 3.9% as to pumped-storage hydroelectricity; 51.6% as to coal-fired thermal power; 11.8% as to gas thermal power (including 4.1% of power derived from LNG); 9.4% as to electrical sources generated by the renewable energy; 6.6% as to the nuclear power and 4.9% as to imported electricity.
It is estimated that the electric generation capacity by 2030 will achieve about 695 billion MW of which the hydropower is expected to account for 9.3%; 56.4% as to coal-fired thermal power; 14.4% as to gas thermal power (including 3.9% of power derived from LNG); 6.0% as to electrical sources generated by the renewable energy; 10.1% as to the nuclear power and 3.8% as to the imported electricity.
i) Coal industry
Develop coal industry on the basis of the extraction, processing and efficient use of coal resource in the country in order to mainly meet the domestic demand; make an active and effective contribution to ensuring national energy security and meeting as many coal demands as possible to fulfill the objective of socio-economic development; ensure the reasonable importation and exportation of coal in the direction of gradually reducing the exportation and only allowing the exportation of coal types for which domestic demands do not arise by means of plan-based management methods and other proper regulating methods in conformity with the state-governed market mechanism as well as international treaties to which Vietnam is a signatory.
- The growth rate of industrial production value in the coal industry by 2020 is expected to account for 9% - 10% and 7% - 9% by 2030.
- By 2020, the proportion of coal industry to the whole industrial structure is estimated to make up from 1 to 2% and meet 80 - 85% of total market demand; by 2030, it is expected to make up 0,5 – 1,5% and meet 75 - 80% of total market demand.
- By 2020
+ Carry on with the exploration and extraction of mines at prospective sites under the approved Planning drawn by the coal industry.
+ Complete the prospecting and assessment of resources that lie at the depth ranging from below -300 m to the bottom of coal deposit of Quang Ninh coal basin, and simultaneously conduct the careful prospecting of a part of the Red River Delta coal basin.
+ Develop the coal industry in conjunction with coal thermal power projects to conform to the planning for national electricity development.
+ Invest in the processing of coal in the direction of diversifying product lines (direct combustion fuel, coal used for metallurgy, coal gas, liquid fuel made from coal, and fuel used for the chemical industry).
+ Gradually make outward investment through the cooperation in exploration, extraction and processing of coal.
- By 2030
Mobilize and use all possible sources of funds for exploration of verified coal reserve as well as upgradation of existing coal deposits, conduct researches in the application of technology for coal mining at the coal pits which have -300 m in depth at Quang Ninh coal basin; extract coal in the Red River Delta at the appropriate level; apply several new technologies to produce charcoal for certain special needs.
k) Petroleum industry
- Develop the petroleum industry in a synchronous, multi-sectorial and interdisciplinary form which can become an important economic-technical sector in the country; make efficient use of petroleum resources nationwide, simultaneously promote investments in the exploration and extraction of petroleum abroad in association with import and export activities which serve as the basis for the sustainable development of petroleum industry in order to play a crucial role in securing the energy security for the purpose of industrialization and modernization.
- Make best use of internal resources in association with the expansion of international cooperations; attract foreign investments in the prospecting and exploration activities; rapidly increase the verified coal reserve in order to make a stable contribution and growth in the coal-mining productivity; prioritize the prospecting, exploration and extraction at deep, offshore, overlapped and sensitive waters. Provide incentives for the participation of the domestic and overseas economic sectors in the field of processing, distribution of products and services, etc.
- Develop the petroleum industry in parallel with the protection of natural resources, environment, ecology, and ensure the security, national defense as well as strengthen the capability of protecting and defending the country's sovereignty over seas, islands and the mainland.
- By 2015, strive to achieve the growth of the revenue from petroleum engineering services at the rate of 15% - 20% per annum; by the period from 2016 - 2025, the growth rate is expected to account for 20% - 25% per annum.
- By 2020, the proportion of crude oil and natural gas extraction industry to the whole industrial structure is estimated to make up from 4% - 5% and meet 70% - 80% of total market demand; by 2030, it is expected to make up 5% - 6% and meet 80% - 90% of total market demand.
By 2020 and vision towards 2030
Develop the petroleum industry in a synchronous manner, which comprises the development of prospecting, exploration, extraction, transportation, processing, storage, distribution, service and import – export activities as listed specifically below:
In respect of petroleum prospecting and exploration: intensify the prospecting, exploration and elevation of verified oil reserve; prioritize the projects that are executed at deep, offshore, overlapped and sensitive waters; stimulate the outward investment projects for the petroleum prospecting and exploration works. Strive for an increase in verified petroleum reserves at an amount of 35 – 45 million tons of oil per annum.
In respect of petroleum extraction: Conduct researches in finding solutions to enhance the oil recovery factor, optimize petroleum extraction output, ensure the safety and manage the risk of flooding for existing mines; take up an active role in expanding the outward investment in the petroleum extraction in overseas country. Strive to extract 25 – 38 million of oil tons per annum, including the extraction of crude oil to be stabilized at the output of 18 – 20 million tons of oil per annum and 8 – 19 billion cubic meters of gas per annum.
In respect of the development of gas industry: Actively develop this industry in the direction of diversifying consumption markets and gas products that will be provided for such sectors as electric power generation, and the manufacturing of fertilizers, chemicals, other equivalent industries, transportation and civil engineering at the output of 19 billion m3 per annum by 2025. Conduct researches in completing the connection of the gas pipeline from the East to the Southwest direction, transnational gas pipeline which will be then connected to the gas pipeline of the Asian Southeast region. Find proper technological solutions in order to effectively collect and use the gas sources extracted from minor and marginal mines to serve the purpose of national economic growth.
In respect of petroleum processing industry: by 2020, it is expected to complete the construction of 3-5 petrochemical refinery plants with a total capacity of about 26-32 million tons per annum, build and put into operation from 1 – 2 petrochemical complexes. By 2025, continue to expand and build 6 – 7 petrochemical refinery plants, which is expected to raise the capacity of oil refinery by 45 – 60 million tons per annum and meet about 50% of total demand for basic petrochemical products.
In respect of the development of petroleum services: Boost up in-depth investments in dominating the hi-tech service market such as seismic explosion absorption; the exploration drilling and extraction at deep, offshore waters with complicated geological conditions; consultancy and project management services; petroleum equipment design and invention; crude oil transportation; natural, liquidified and compressed gas, etc.
l) Ancillary industries
- Mechanical engineering - metallurgy
+ Focus on manufacturing parts and part families in order to assemble a complete device such as calibration and measurement equipment, types of conductor wires, bolts, screw nuts, control systems and general-purpose industrial computers; engine-driven machines, rotors, stators built in electric generators, diesel-powered engines, petrol-powered engines of all kinds, and drive and transmission parts; components and accessories used for road, waterway transports as well as for the agro-forestry and aquatic product processing.
+ Increase the in-depth investment in mechanical engineering workshops in order to improve the competence in casting, forging, making large fillets, annealing, surface treatment, supplying standard raw materials, semi-finished products for the purpose of making parts and components used in the manufacturing of 3 main mechanical product lines such as synchro equipment, machine tools and construction machinery; play an active part in calling for foreign investments in hi-tech manufacturing processes and basic production stages in which Vietnamese enterprises do not expertise.
+ In respect of automobile industry: focus on developing the automobile production by means of applying the group of identical technologies to the making of products such as cabin, frame, tire, suspension, engine, gear-box, propeller shaft and steering systems assembled in trucks, buses and dedicated vehicles. Choose several engines, gear-box, transmission parts and components in bulk in order to serve the assembling of cars for the domestic and exporting market.
+ Build industrial zones and areas to provide the mechanical supports in Hanoi, Vinh Phuc, Bac Ninh, Hung Yen, Hai Phong, Dong Nai, Ba Ria – Vung Tau, Binh Duong, Tay Ninh and Da Nang.
- Electronics – information industry
Focus on solution and design services with the emphasis on high-end services with the aim of supporting the production of purpose-built softwares and hardwares; research, design and develop new products with the special attention paid to build centers for technological research, application and decoding; intensify the research and development of industrial products and services to support the electronics industry such as the supply of spare parts and components, logistics, infrastructural facilities, and supply of reliable maintenance and warranty services for technological equipment.
- Textile, garment, leather and footwear industry
By 2020, it is estimated that this industry will be able to meet 40% of total demand for woven fabrics; accessories necessary for the textile and garment engineering sector which are manufactured by domestic enterprises are expected to meet 80% of total domestic demand for synthetic fibers and fabrics, and look forward to being exported after 2020. The ancillary industry for the leather and footwear production in association with the textile and garment industry will help improve the competence in supplying various types of fabrics in order to manufacture footwear products, especially exported fabric-made shoes.
5. Spatial zoning and planning for specific regions and territories
a) Northern midland and mountainous region
- Focus on developing mineral extraction and processing, agro-forestry product processing, hydropower industry and some metallurgical projects.
- Stimulate the industrial development of parts and components assembling and ancillary industries throughout the provinces situated alongside the Lao Cai – Hanoi corridor, which is directed towards the mutual cooperation with China to enter into this market (through Lao Cai border gate), which will be turned into a drive force for the development of entire corridor.
- Consider the development of a number of large-scale projects in the region in order to provide favorable conditions for promoting the industrial development in the whole region.
b) Red River Delta (including the key economic region in the North)
- Develop the mechanical engineering, metallurgy, chemical, thermopower, high-tech industries.
- Decide on the development of ancillary industries to manufacture spare parts and components for the production and assembling of machinery, cars, motorbikes as well as electronic components around Hanoi, Vinh Phuc, Hai Phong, Quang Ninh cities.
c) Central coast region (including the key economic region in the Central region)
- Develop industries specializing in manufacturing building materials, processing seafood, shipbuilding mechanics, metallurgy and other industries associated with sea transportation advantages.
- Attract the investment in industries, associated with the development of the sea port system, East-West corridor axis; conduct the research and development of industries that serve the need of Ho Chi Minh highway.
d) Highlands
- Develop industrial plant processing, mineral extraction and processing, and building material production.
- Develop industries at areas which have advantages in infrastructure and are connected with traffic systems.
dd) South East region (including the key economic region in the South)
- Develop the mechanical engineering, petroleum, petrochemical, chemicals, electronics, high-technology industries; research and develop ancillary industries.
- Given the developmental condition of infrastructural structures alongside East – West corridor, researches in establishing several industries specializing in manufacturing consumer goods to meet the needs of people living in this region will be conducted.
- Continue to invest in consistently developing industries associated with the gas – power – fertilizer complex located in Ba Ria – Vung Tau and Dong Nai province; develop high-technology industries in Ho Chi Minh city.
e) Mekong Delta (including the key economic region in the Mekong Delta)
Focus on developing the processing of agricultural and seafood for exportation, mechanical engineering for the agricultural purpose, and the ship building and repairing to serve the purpose of offshore fishing.
- Invest in completing the gas – power – fertilizer in Ca Mau province which is directed towards the establishment of a major industrial complex in the region.
- Consider several projects to be developed on such industries as mechanical engineering, ship building and repairing industries connected with the sea and river port system.
a) Domestic investment budget:
- Investment fund is mobilized from the State budget
The State budget is expected to allocate 3% - 4% of total proposed investment fund by 2030. This investment fund will be mainly used to develop the infrastructural system (including structures to be developed to serve the purpose of improving transportation, power and water supply), and a portion of this fund shall be intended for workforce development and scientific and technological researches.
+ Investment capital sources derived from domestic loans:
The proposed domestic loans for the period from now to 2030 are estimated to account for 15% - 16% of total investment fund.
+ Equity capital: the enterprise’s equity and capital mobilized from the population is proposed to account for about 38% - 40% of total investment.
b) Foreign investment budget:
- Concessional loan: proposed rate is about 7% - 8%
- FDI capital: Proposed rate is about 33% - 34%.
a) Short-term solutions
- Reinforce regulations, policies and mechanisms for the industrial development.
+ Improve the regulations on the State management in order to restrict the overlapping regulations in the field of agricultural production.
+ Reinforce the coordination in the development of each industry, sector and territory; improve the efficiency in directing and managing the industrial development in order to enhance the effective connection between regions.
+ Carry out the proper decentralized State management in relation to the industrial matter; maintain the centralized State management of several key industries that the State must control, and enhance the non-centralization in the administrative works in order to improve the effectiveness of legal regulations and State management in terms of the process of industrial development.
+ Create the equality between economic zones; especially focus on further enhancement of the role of private economic sector in efficiently enforcing the ownership protection and making the right to get access to resources become equal for all interested entities.
- Focus on investing in the technical infrastructure, and pay special attention to developing industries, associated with the sustainable development.
Mobilize all necessary resources to invest in constructing North—South express highway and railway, several seaports and airports that achieve international standards; completely develop the urban infrastructure in Hanoi and Hoc Chi Minh city; attract all forms of investment as well as facilitate and offer incentives to economic sectors, including the investment made by foreign partners, to participate in the infrastructural development; carry out the gradual and consistent development of the North – South and East – West traffic axes in order to serve all modes of transportation; construct trans-border roads and streets that achieve international standards; create a solid foundation for the industrial development.
This objective will be reached on the basis that the planning for electricity system should be practical and provide solutions to supplying sufficient amount of electricity for important industrial enterprises, zones and complexes.
- Make a careful decision on attracting the proper investment in high-technology, environment-friendly projects, and create products with high added value, exported products in line with the promotion of reliable industrial brands.
Focus on investing in the establishment of hi-tech industrial zones, industrial-agricultural combined areas, hi-tech zone particularly intended for the biotechnology, and industrial zones for ancillary industries as well as the growth of the processing industry and those that support the agricultural industry.
Enhance the international cooperation in developing industries, especially hi-tech industries that have not been yet developed due to objective conditions such as nuclear-fueled electric generation and electronic component production.
- Focus on promoting the growth of services
Focus on attracting investments and apply relevant preferential policies to facilitate the investment of enterprises in such services as credit, banking, logistics, communications, labor market information and vocational education in order to meet the needs of industries enterprises for finance, transportation, information and labor.
- Pay close attention to growing types of enterprises involved in the green industry, small and medium-sized enterprises of which the management structure and business cooperation have proved the efficiency in rural areas in accordance with the Resolution enforced by the 7th Central Party Committee on the development of agriculture, farmers and rural areas.
Facilitate and provide incentives for the growth of green industry with less energy consumption and environmental pollution mitigation. Complete incentive policies to develop industrial manufacturing enterprises, especially the key industries and those with high technology and added value such as mechanical engineering, electricity, electronics and information technology. Development of ancillary industries will help increase the locally-manufactured products.
- Restructure industries
+ Adjust the plan for the industrial development to satisfy the new conditions and requirements, associated with market requirements, promote technological innovation, raise the hands-on experience of employees, product innovation, and strengthen the quality management to enhance competitiveness in the market, based on the demands of international integration and the development of science and technology.
+ Innovate the investment policy in order to mobilize more domestic and foreign resources which is properly allocated for the industrial development in accordance with the identified planning, and solve any difficulty that arises during the industrial restructuring; make investments allocated from the state budget to focus on the areas of renovation, upgradation and construction of new technical infrastructure (transportation, electricity, water supply and drainage, communications); enhance the education and training in order to provide high-quality workforce for specific industries.
- Encourage and create favorable conditions for the investment in non-State economic sectors, including the foreign investment. Consider the non-state investment as the most decisive investment amongst other investments in the industrial development.
b) Long-term solutions
- Capital solutions
+ Make better use of the state budget, ODA fund and aids granted for the development of key industries.
+ Prepare preferential policies, carry out the fair and well-organized propagation, and promote investments in order to attract the sources of capital mobilized from people, businesses, economic sectors and foreign investments in the industrial development.
+ Encourage enterprises to increase the operating capital as well as enhance the efficiency of investments.
- Technological solutions
+ Apply technical breakthroughs and advanced technologies in order to improve the competence in business and production.
+ Intensify international cooperations in the science and technology; diversify cooperation forms in order to make the most of the modern technology transferred from foreign partners for the purpose of industrial development.
+ Encourage the development of technological services, build technological markets, regularly and periodically open technological fairs and exhibitions, and create a data bank of information on new technologies. Establish the centers for technological transfer.
+ Focus on attracting investment in projects on high-technology and source technology derived from developed countries. Put forward the formulation of special mechanisms to attract investors, make the most of channels for technological transfer and cooperation, especially those funded by FDI capital with the aim of technological and scientific research and application.
- Workforce solutions
Set up the planning for the development of major industries and industrial zones as well as industrial area and complexes consistently with the planning for the development of human forces such as vocational training systems and social infrastructure used for workers. Enhance the training and development of properly qualified workforce; prioritize the development of skilled and competent workforce to acquire and master technological advances in the future.
+ Review, organize, consolidate and expand the system of human resource training and educational systems (universities, vocational colleges and trade schools, etc.) Prioritize the development of vocational colleges that achieve international standards in key economic regions.
+ Establish a special mechanism to attract high-quality domestic and foreign human resources with the special focus on such policies as salary and wage, working environment and accommodation supports, entertainment facilities and other related conditions for the best performance of workers during their working time.
+ Expand the type of labor cooperation with foreign countries and the development of educational and training institutions to satisfy labor requirements, especially the firm cooperation with the prestigious domestic and foreign institutions in order to open training facilities that achieves international level in Vietnam, focus on majors that help grow the knowledge economy, especially in science, technology and services.
- Market and product solutions:
+ Promote market research and development: as for the output market, in addition to the traditional markets such as China, East Asian countries, Asian, the United States, the EU, focus on the large, potential and growing markets such as the BRIC countries (including Brazil, Russia, and India). As for the input market, focus on the elements such as capital (continue to make the most of investment capital coming from East Asian countries, the US and Asian states); technology (focus on investing in the high-technology and source technology projects derived from the US, Japan and Western Europe); management and administration capability (learn experience from Singapore, Japan and Korea).
- Ancillary industries development solutions
+ Set up the planning for the development of industries, which is directed towards the development of ancillary industries.
+ Facilitate the development of ancillary industries by means of providing the favorable condition for the input (especially land and raw materials).
+ Clearly determine the key and outstanding products in order to serve as the basis for the development of ancillary industries.
- Inter-regional and cooperative solutions
+ Enter into a venture and partnership for the purpose of executing projects on developing industrial merchandise to meet the needs of replacing imports or putting forward exports (including processing and assembling works for industrial products).
+ Enter into the cooperation in the model of parent companies located in one of major cities and provinces and subsidiaries located in other provinces in order to make such companies carry out the specialized production or supply proper technologies between them.
+ Develop and execute large projects on the industrial development which are of inter-regional attributes in order to make them become a focal point for the promotion of development of industries in other regions.
- Multiply the incentives and supports towards the development of small and medium sized enterprises and rural industries.
+ Continue to run national programs on the industrial incentive, focus on auxiliary programs such as enhancement of managerial capability; training, succession and development of industrial trade villages in rural areas; set up models of technical performance, technological, scientific and technical advance transfer; enter into economic ventures, partnerships and cooperations; draw detailed plans for the construction of infrastructural complexes and industrial points funded by the central and local budget.
+ Provide consultancy and give assistance to enterprises engaged in the development of brands, apply new technology and search for new markets; organize the training classes to enhance the development of electronic trading, commercial promotion; organize fairs and exhibitions.
a) Ministries
- The Ministry of Industry and Trade takes responsibility for announcing, directing, inspecting and supervising the implementation of this planning.
- The Ministry of Planning and Investment: Enthusiastically call for foreign investments in the development of basic industries, hi-tech projects and technology transfer projects; lead and cooperate with relevant Ministries and sectors to establish supportive policies and preferences for the attraction of the industrial development.
- The Ministry of Science and Technology: Build up and complete preferential policies and mechanisms on supporting the enterprises in their operations and innovative researches and technology acceptance; conduct researches in the financial proposal for submission to the Prime Minister to get his approval for the technology innovation for industrial enterprises.
- The Ministry of Agriculture and Rural Development: Conduct the plan for investment in irrigation system; develop the planning for areas for agro-forestry and aquatic materials used to support the processing industry.
- The Ministry of Transport: set up the plan for investing in and upgrading traffic systems connected with industrial zones in order to facilitate the industrial activities.
- The Ministry of Education and Training: set up the plan to train workforce for the industrial production, depending on each period.
- The Ministry of Labor, War Invalids and Social Affairs: Provide guidance on, inspect and check the compliance with labor laws at enterprises based in industrial zones; cooperate with the Management Unit of industrial zones to carry out the state management in terms of labor issues in industrial zones.
- The Ministry of Finance: Direct and cooperate with Ministries and interdisciplinary bodies to formulate the proposal for relevant policies and mechanisms on extending particular credits granted to small and medium sized enterprises and ancillary industries for submission to the Government in order to meet the needs of the enterprises for operational loans.
- The Ministry of Natural Resources and Environment: Cooperate with the Ministry of Industry and Trade in inspecting and guiding enterprises to comply with the legal regulations on the industrial environment protection.
b) People’s Committee of centrally-governed cities and provinces
- Review and adjust the planning for the industrial development in each centrally-governed city or province to ensure its conformity with the general planning for the industrial development.
- Integrate the contents relating to the development of the industrial planning into the annual and 5-year plan in respect of the industrial development on specific regions.
- Cooperate with the Ministry of Industry and Trade as other relevant Ministries and sectors to inspect and supervise the implementation of this planning.
Article 2. This Decision comes into force as from the signing date.
| THE PRIME MINISTER |
1. Mechanical engineering – metallurgy industry
No. | Programs | Running period | In-charge bodies |
1 | Development of electric engineering equipment, machinery, machine tools, lifting devices and dedicated machines. | 2015-2020 | The Ministry of Industry and Trade |
2 | Production and assembly of motor-driven vehicles and mechanical auxiliary products | 2015-2020 | The Ministry of Industry and Trade |
3 | Development of means of transportation (roadway and waterway) | 2015-2020 | The Ministry of Industry and Trade shall lead and cooperate with the Ministry of Transportation in the implementation of the task |
4 | Development of equipment and machinery for the agricultural and farming sector: Small and medium-sized diesel engines, low-capacity petrol-fueled engines, farming machines and facilities used for the storage and processing of food and beverages. | 2015-2020 | The Ministry of Industry and Trade shall lead and cooperate with the Ministry of Agriculture and Rural Development in the implementation of the task |
5 . | Development of oversized and overmass devices and mobile oil rigs | 2015-2025 | The Ministry of Industry and Trade |
6 | Development of the production of aluminum and other metals | 2017-2025 | The Ministry of Industry and Trade |
2. Chemical industry
No. | Programs | Running period | In-charge bodies |
1 | Development of the production of basic chemicals | 2015-2020 | The Ministry of Industry and Trade |
2 | Development of the production of electrochemistry | 2015-2020 | The Ministry of Industry and Trade |
3 | Development of the production of petrochemicals and pharmaceutical chemicals | 2015-2025 | The Ministry of Industry and Trade |
3. Electronics and information technology industry
No. | Program | Running period | In-charge bodies |
1 | Production of computers, printers, electronic components, electronic household appliances, industrial electronic, medical electronic equipment and other supporting components | 2015-2025 | The Ministry of Industry and Trade |
2 | Development of commercial softwares, workforce training, upgradation of national IT infrastructure, construction and establishment of software centers, electronic national database, development of major and purpose-built IT products | 2015-2025 | The Ministry of Industry and Trade shall lead and cooperate with the Ministry of Information and Communications in the implementation of the task |
3 | Construction of electronic inspection, quality test and safety assurance systems, serving as supports provided for leading R&D centers of each industry | 2015-2025 | The Ministry of Industry and Trade shall lead and cooperate with the Ministry of Information and Communications in the implementation of the task |
4. Building material manufacturing industry
No. | Program | Running period | In-charge bodies |
1 | Development of the production of high-quality cement, tile, sanitary ceramic and building material products | 2015-2025 | The Ministry of Construction shall lead and cooperate with the Ministry of Industry and Trade in the implementation of the task |
2 | Development of unbaked materials | 2015-2025 | The Ministry of Construction shall lead and cooperate with the Ministry of Industry and Trade in the implementation of the task |
3 | Completion of converting the horizontal kiln into rotary kiln for the cement production | By 2018 | The Ministry of Construction shall lead and cooperate with the Ministry of Industry and Trade in the implementation of the task |
5. Textile, garment, leather and footwear industry
No. | Program | Running period | In-charge bodies |
1 | Construction of textile and garment factories equipped with the production line of high-quality products; construction of fashionable style and model design centers at a modern scale. | 2015-2030 | The Ministry of Industry and Trade |
2 | Construction of several selective industrial zones for exported textile and garment products equipped with the production line of luxurious and high-end products | 2015-2020 | The Ministry of Industry and Trade |
3 | Research and development of high-quality clothes and shoes for the difficult market | 2015-2030 | The Ministry of Industry and Trade |
6. Agro-forestry and aquatic product, food and beverage processing industry
No. | Program | Running period | In-charge bodies |
1 | Expansion of food and beverage processing plants located at material areas and other proper areas | 2015-2020 | The Ministry of Industry and Trade |
2 | Construction of the processing factories for exported seafood products; development of the processing plants for aquatic feed | 2015-2025 | The Ministry of Industry and Trade shall lead and cooperate with the Ministry of Agriculture and Rural Development in the implementation of the task |
3 | Production of exported wooden furniture | 2015-2020 | The Ministry of Industry and Trade |
7. Metal mining and processing industry
No. | Program | Running period | In-charge bodies |
1 | Exploration of mines and ores such as bauxite, iron, titanium, lead-zinc, tin, gold, copper, nickel, molypden, serpentine, barite, grafit, fluorite, bentonite talc, diatomite, etc. | 2015-2030 | The Ministry of Industry and Trade |
2 | Investment in production of mines that have been prospected at a detailed level and have industrial reserves | 2015-2030 | The Ministry of Industry and Trade |
8. Electric power industry
No. | Program | Running period | In-charge bodies |
1 | Development of hydropower, coal-fuelled thermopower and gas-fuelled thermopower projects | 2015-2025 | The Ministry of Industry and Trade |
2 | Development of new and renewable energy projects | 2015-2030 | The Ministry of Industry and Trade |
3 | Development of nuclear-powered electric generation | 2020-2030 | The Ministry of Industry and Trade |
9. Coal industry
No. | Program | Running period | In-charge bodies |
1 | Further prospecting and exploration of coal in Quang Ninh areas and a part of Red River Delta coal basin | 2015-2020 | The Ministry of Industry and Trade |
2 | Extraction and use of Red River Delta coal basin | 2020-2030 | The Ministry of Industry and Trade |
10. Petroleum industry
No. | Program | Running period | In-charge bodies |
1 | Petroleum search and exploration (including overseas projects) | 2015-2030 | The Ministry of Industry and Trade |
2 | Development of oil refinery plants | 2015-2030 | The Ministry of Industry and Trade |
3 | Development of petroleum services | 2015-2030 | The Ministry of Industry and Trade |
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- 1 Decision No. 1168/QD-TTg dated July 16, 2014, approval for strategy to develop automotive industry in VietNam by 2025, orientation towards 2035
- 2 Decision No. 879/QD-TTg dated June 9, 2014, approving the strategy on Vietnam’s industrial development through 2025, with a vision toward 2035
- 3 Decision No. 2290/QD-TTg dated November 27, 2013,
- 4 2012 Labor code
- 5 Decision No. 459/QD-TTg of March 30, 2011, approving master plan of development of Vietnam gas industry in the 2015 period, an orientation toward 2025
- 6 Decision No. 73/2006/QD-TTg, of the Prime Minister of Government, approving the general planning on development of Vietnam's industries by territorial region till 2010, with a vision to 2020
- 7 Law No. 32/2001/QH10 of December 25, 2001 on organization of the Government
- 1 Decision No. 1168/QD-TTg dated July 16, 2014, approval for strategy to develop automotive industry in VietNam by 2025, orientation towards 2035
- 2 Decision No. 2290/QD-TTg dated November 27, 2013,
- 3 Decision No. 459/QD-TTg of March 30, 2011, approving master plan of development of Vietnam gas industry in the 2015 period, an orientation toward 2025
- 4 Decision No. 73/2006/QD-TTg, of the Prime Minister of Government, approving the general planning on development of Vietnam's industries by territorial region till 2010, with a vision to 2020