Sunday, December 16,2018 - 17:31 GMT+7  Việt Nam EngLish 

Industry development strategy of Vietnam to 2025, vision to 2035 

 Monday, October 8,2018

AsemconnectVietnam - To develop industry on basis of mobilizing effectively resources from all of economic sectors; encouraging development of private economic sector and foreign investment sector.


I. Development viewpoints
- To develop industry on basis of mobilizing effectively resources from all of economic sectors; encouraging development of private economic sector and foreign investment sector.
- To develop priority industrial fields, in short-term, paying attention on industrialization and modernization of agriculture and rural area on basis of high-quality human resources and advanced technology, taking competition as development driving force.
- To exploit available advantages and international opportunities; associating production with service, trade, actively participating in value chain of industrial production in the world.
- To pay attention to develop many industries for both civil activities and national defense, national security.
- Industrial development bases on green growth, sustainable development and environmental protection.
II. Industrial development strategy            
To mobilize effectively all resources from domestic and foreign economic sectors to develop, restructuring industry towards modernization; Focusing on training industrial human resources industry with skill, discipline, creative capacity; Giving priority to development and transfer of technology in industries, fields having competitive advantage and giving priority to development and transfer of modern, advanced technology in fields of agricultural, forestry, fisheries processing, electronics, telecommunications, new and renewable energy, mechanical engineering and pharmaceutical chemistry; Adjusting sensibly industrial spatial distribution to promote power of linkages between sectors, regions and localities to participate deeply in global value chains.
Groups of industry selected to prioritize to develop as follows:
1. Processing, manufacturing industries
- Engineering and metallurgy
In a period to 2025: giving priority to sectors and products: machinery and equipment for agriculture, auto and mechanical parts, steel. After 2025, giving priority to sectors and products: shipbuilding, nonferrous metals and new materials.
- Chemical field
In a period to 2025, giving priority to basic chemicals, petrochemical and production of plastic accessories - technical rubber; In a period after 2025, prioritizing to develop pharmaceutical field.
- Agriculture, forestry and fisheries processing
In a period to 2025, giving priority to raise proportion of processing of key agricultural, seafood products and wood in accordance with process of restructuring agricultural sector. Applying international standards during process of manufacturing, processing agricultural products, building trademarks and competitiveness of agricultural products of Vietnam.
- Garment and textile, footwear
In a period to 2025, giving priority to production of raw materials and auxiliary materials for domestic production and export; after 2025, giving priority to production of fashion clothing, luxury shoes.
2. Electronics and telecommunications
In a period to 2025, giving priority to develop production of computer equipment, phones and accessories. After 2025, prioritize to develop software, digital content, information technology services and medical electronics.

3. New energy and renewable energy
In a period to 2025, promoting development of new energy and renewable energy such as wind, solar, biomass; After 2025, developing atomic energy for peaceful purposes, prioritizing development of renewable energy sources such as geothermal, ocean waves...
III. Objectives
1. Overall objectives
- By 2025, developing Vietnam's industry with reasonable structure under sector and territory, having competitive ability to develop integration situation, having modern technologies and participating in global value chains in specialized fields, having ability to meet basic requirements of economy and exports; having qualified workforce to meet demand of modern production.
- By 2035, developing Vietnam’s industry with majority of fields having advanced technology, quality of products hit international standards, participating deeply in global value chains, using energy saving, efficiency, competing equally in international integration; having professional, disciplined and high productive workforce, being proactive in stages of research, design, manufacturing.
2. Specific objectives

- Growth rate of industrial added value hits 6.5 - 7.0%/year in a period to 2020, reaching 7.0 - 7.5%/year in a period of 2021-2025 and posting 7.5-8.0%/year in a period of 2026-2035.
- Growth rate of industrial production value reaches 12.5 - 13.0%/year in a period to 2020, in period of 2021 - 2025 posting 11.0 - 12.5%/year and in a period of 2026-2035 hitting 10.5 - 11.0%/year.
- To strive to 2020, proportion of industry and construction accounts for 42-43%, by 2025 making up 43-44% and by 2035 account for 40-41% of the country's economic structure.
- Rate of industrial product export value/ total export value reaches 85-88% by 2015 and 90% after 2025.
- Value of high technology industrial products and hi-tech applied products hits around 45% of GDP by 2025 and 50% of GDP after 2025.
- Industry ICOR index reaches 3.5 - 4% in a period of 2011 – 2025, 3 -3.5% in a period of 2026 – 2035.  
- Coefficient of elastic energy/GDP reaches 1,5 by 2015; hits 1,0 by 2020 and posts 0,6 -0,8 by 2035, equivalent to other countries in the region.
- Rate of industrial greenhouse gas emissions increase at an average of about 4 - 4.5%/year.
IV. Development orientation                                                      
1. To 2025
- To gradually adjust industrial growth model from primarily basing on quantity to base on productivity, quality and efficiency, promoting development of industry fields and industrial products with high added value, huge export value; associating production with development of industrial services.
- To concentrate on developing supporting industries, especially mechanical products, chemicals, electronics and telecommunications to serve industrial production and participating in global production networks.
- To increase development of industry for agriculture and rural; industry of using energy saving and efficiency, paying attention on development of industry for security and defense. Step by step developing new materials industry and environmental industry.
- To promote development of industries toward combining models of cross-linking and vertical-linking.
- To adjust industry spatial distribution, ensuring consistent among regions across the country, tackling high industrial density situation in some areas, ensuring balance and harmony among regions and localities.
- To develop priority industries in key economic zones and coastal economic zones; transferring labor-intensive industries, processing industries and support industry from core industrial areas to other industrial zones.
2. To 2035
Vietnam’s industry will be developed to become environmental friendly, green industry, focusing on industrial production fields having advanced technology and industrial products having reputation trademarks, high quality and value in regional and international markets, having high competitiveness, meeting standards of developed countries and heavily involving in global value chain.
V. Implementation solutions
1. Breakthrough solutions

- Renovating industry development mechanisms
+ To perfect the State management mechanisms to overcome, limit overlap and ensure stability, consistency policies and simple administrative procedures to encourage development of production.
+ To strengthen development coordination by industry, region and territory, improving efficiency of direction and coordination in order to effectively link among localities in industry development.
+ To decentralize reasonably to improve efficiency of the State management for industry development process.
+ To create equality among economic sectors, paying special attention on further enhancing role of private sector through effective implementation of property rights protection and equality in accessing resources.
+ To review, adjust and supplement technical regulations, norms in accordance with international standards.

- Renovating and improving efficiency of business operations
+ To restructure industry and restructure the State-owned companies, corporations, groups under approved scheme.
+ To adjust timely operation scale of the State-owned enterprises in accordance with specific situation; completing and promulgating criteria of classification of the State-owned enterprises by operation fields.
+ To build mechanism and roadmap of increasing number of industrial production enterprises, paying special attention on raising proportion of large and medium-sized enterprises in structure of enterprise system of the country.
- Development of human resources
+ To build plans on human resource development for priorities industries in each specific stage.
+ To develop and promulgate standard system of training quality at all levels, firstly skills and standards under international standards.
+ To renovate training programs, specially vocational training; promoting cooperation between vocational training schools with enterprises through programs of training cooperation, consulting training program content, increasing amount of time of practice.
+ To improve labor market, job introduction services.
- Technology solutions
+ To accelerate application of new technology, modern technology to create breakthrough on production technologies for key industries and priority industries.
+ To pay attention on investing in and building units of scientific and technology study having capacity of acquiring new technology, innovating technologies for development of  priority industries, fields.
+ To promote development of science and technology market.
+ To increase investment, promote activities of research and development (R & D) to be able to research, design and manufacture a number of high-tech products, at the same time, expanding science and technology cooperation relation at national level with strategic partners.
2. Long-term solutions
- Mechanisms of investment attraction
+ To build system of incentives, open policies associating with propagation and promotion of investment to attract capital sources in society and foreign investors to invest in development of industry.
+ To encourage enterprises expanding investment scale in both terms of capital amounts and scope.
+ To call huge corporations, multinational groups to invest in important projects in list of national key projects calling for FDI.
+ To strengthen and enhance operation role of professional associations and organizations, governmental organizations and non-government organizations; strengthening linkages between domestic firms with foreign firms to cooperate and participate in global production value chains.
- Market development            
For consumption markets: besides traditional markets such as China and other East Asian countries, ASEAN, U.S., EU, it pushes to exploit huge, potential, developing markets such as the BRIC countries (including with Brazil, Russia, India).
For input market: capital source: continuing to effectively exploit investment capital sources from East Asia countries, U.S., ASEAN; technology: focusing on attracting high-tech projects from U.S., Japan and EU.
- Adjusting quality of industrial growth
+ To implement synchronously investment policies, fiscal and monetary policies, labor policies, wages, .. to improve quality of industrial growth through issuing and making public list of industry fields encouraging investment, list of industry fields being controlled and limited investment, list of products, accessories being benefited financial support. At the same time, tightly controlling operations of technology import through regulations on conditions and criteria and categories of technologies being allowed to import.
+ To put norm of added value into system of annual reporting, reviewing norms of enterprises, industry fields, forming industry average of indicators as a basis for companies to compare, analyze and strive to implement.  
- Development of support industry
+ To select group of support industry to prioritize to develop in accordance with specific conditions of each stage.
+ To develop specific incentive mechanisms and policies for specialized zones, clusters and support industrial parks and clusters. At each time, there should be specific mechanisms and policies in consistent with development of industry.
- Adjusting industrial structure under territory
+ Strengthening linkage among localities in economy region, building infrastructure for industry development.
+ To promulgate policies of encouraging formation of linkage industry clusters under advantage industrial fields, especially in core industrial areas.
+ To develop and implement industrial development project at regional scale, giving priority projects of industrial development of high content of science and technology (mechanical engineering, information technology, electronics, information and communication...).
- Development of industrial service system
+ To complete infrastructure for industrial development together with infrastructure development of the whole country, particularly focusing on development of logistic systems.
+ To develop strongly industry investment advisory services; building a database of Vietnam's industry systems (including database systems for supporting industries) to use for policy promulgation, policy adjustments and provide information for economic organizations, domestic and foreign investors.
+ To further reform customs procedures to facilitate open conditions and reduce costs for enterprises implementing procedures for goods import-export.
- Environmental solutions
+ To strictly implement legal provisions on environmental protection; taking pollution control and pollution prevention as key principles associating with handling pollution, improving environment and nature conservation.
+ To develop and promulgate environmental technical standards to ensure sustainable development, environmental protection; timely detecting and strictly handling violations of law on environmental protection.
+ To propagandize, educate to raise awareness of environmental protection combining with socializing tasks of protection of environment in order to encourage participation of the people in environmental management and protection of natural resources, exploiting and use in long-term waste treatment infrastructure.
3. Solutions for priority industry development
- Processing, manufacturing industry
+ Engineering and metallurgy
To select and focus investment on key areas for a number of research units in order to improve design capabilities to meet development requirements.
To invest in developing manufacturing steel for mechanical engineering: plate steel, ingot steel, alloy steel.
+ Chemicals 
To pay attention on investment in key projects, giving priority to petrochemical products.
For pharmaceutical field: focusing on researching drug materials from nature to produce all kinds of vitamins and adjuvant to serve domestic treatment demand and for export at later stage.
+ Agriculture, forestry and fisheries processing
To encourage investment in developing material farming areas at large-scale to ensure enough qualified material inputs for processing industry.
To give priority to export processing products with high competitiveness, combining with building and developing specific trademarks for agriculture, forestry, fisheries of Vietnam.
+ Textile and garment, footwear
To perform diversification of manufacturing products and developing proactively raw material sources.
To promote exploitation of traditional export markets; maximizing advantages of Vietnam when joining bilateral and multilateral free trade agreements; promoting potential markets such as Russia, the Middle East, Eastern Europe and Africa; constructing retail distribution system with trademarks of Vietnam.
- Electronics and telecommunications
+ To encourage development of software, particularly embedded software in hardware devices, electronics, telecommunications to meet domestic demand.
+ To develop fields for both civil purpose and defense such as electronic of controlling cruise missiles and telecommunications reconnaissance electronic, search electronic...
- New energy and renewable energy
+ To boost coordination with other countries and international organizations to develop and use nuclear energy for peaceful purposes, gradually mastering technology.
+ To focus high tech applications on generator of power of solar, wind, biogas, biomass, geothermal ..., for energy for peaceful purposes, further researching on nuclear safety and popular nuclear power technology today.
VI. Organizing implementation
1. Ministry of Industry and Trade:
- To functions as main implementer, in collaboration with relevant ministries, agencies, People's Committees of centrally provinces and cities to implement the strategy; inspecting and evaluating implementation of the strategy, periodically reporting to the Prime Minister.
- To functions as main implementer, in collaboration with the Ministry of Planning and Investment and relevant localities to identify core industrial areas, buffer industrial zones, reporting to the Prime Minister for approval and implementation.
- To functions as main implementer, in collaboration with relevant ministries and agencies to review, amend, build, issue or submit to competent authorities for promulgating appropriate policies to promote development of industry.
2. Related ministries and agencies
- Ministry of Planning and Investment shall functions as main implementer, in collaboration with the Ministry of Industry and Trade, the Ministry of Finance to promulgate policies to enhance ability of attracting investment in development of industry; balancing short-term and long-term investment capital sources for development of industry.
- The Ministry of Finance shall functions as main implementer, in collaboration with relevant ministries, agencies to research, propose amendments and supplements of fiscal policies to encourage development of priority industries in consistent with process of international economic integration.
- Ministry of Education and Training, Ministry of Labor, Invalids and Social Affairs: under functions, tasks and assigned the State management scope, shall functions as main implementer to set up plan of training human resources for industrial production in each period; to guide, control and inspect implementation of labor laws in enterprises in industrial parks; to coordinate with industrial park management board to perform efficiently task of the State management of labor in industrial parks.
- Ministry of Agriculture and Rural Development shall functions as main implementer, in collaboration with the Ministry of Industry and Trade and relevant localities to build development programs, policies to ensure stable sources of raw materials in quantity and quality for processing industry.
- Ministry of Information and Communications shall functions as main implementer, in collaboration with the Ministry of Industry and Trade and relevant localities to implement solution of development of information technology and communications to serve domestic industry production and participation in regional and global supply chain.

- Ministry of Construction, Ministry of Natural Resources and Environment: under functions, tasks and assigned the State management scope, shall functions as main implementer, in collaboration with the Ministry of Planning and Investment, Ministry of Industry and Trade and relevant localities to research and set up plan of construction of economic region in consistent with resources, potential and direction of industry development; in collaboration with the Ministry of Industry and Trade to inspect and guide enterprises to comply with the State’s provisions on industry environment protection.
- Ministry of Science and Technology: shall  functions as main implementer, in collaboration with the Ministry of Planning and Investment, Ministry of Industry and Trade to implement solutions for science and technology in order to raise high technology contents of industrial products of Vietnam; building policies of renovating and applying technology; assessing level of technology.
- State Bank of Vietnam: manage flexibly monetary policy under target of controlling inflation, stabilizing macro economy to create favorable conditions for exports of industrial products, contributing to reduce ratio of trade deficit.
- Other ministries, agencies under their functions, duties and assigned the State management scope, are responsible for coordinating with the Ministry of Industry and Trade to organize effective implementation of relevant contents of the strategy.

3. People's Committees of centrally-run provinces and cities
- People's Committees of centrally provinces and cities shall be responsible for implementing the strategy, in collaboration with relevant ministries and agencies to build and adjust plans of industry development in localities in consistent with this strategy.
- Localities in core areas (4 key economic regions and 5 marine economic zones given priority to develop): Reviewing industry structure of localities and regions, considering and researching opportunities of priority industry development in regions, forming group of industrial clusters in regions.
- Other localities should prepare necessary resources (human resources, land ...) to welcome transfer of industry from core industry areas.

Long Giang


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