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Vietnam's industrialization strategy within Vietnam - Japan cooperation framework to 2020, vision to 2030 

 Friday, September 23,2016

AsemconnectVietnam - The strategy of industrialization contributes to implementation of overall policies on industrial development of Vietnam.

 
VIETNAM’S INDUSTRIALIZATION STRATEGY WITHIN VIETNAM – JAPAN COOPERATION FRAMEWORK TO 2020, VISION TO 2030

I. Vision, viewpoints and objectives
1. Vision:
To develop strongly six priority fields, including electronics, agricultural machinery, agricultural and fisheries product processing, shipbuilding, environment and energy saving, production of auto and auto spare parts to become key fields of the economy with high added value and international competitiveness. Fields given priority to development in strategy of industrialization play leading role in promoting investment of domestic and foreign firms, primarily Japanese companies, creating technology and skill spread for industry in particular and Vietnam's economy in general.
2. Viewpoints:
- The strategy of industrialization contributes to implementation of overall policies on industrial development of Vietnam, focusing on development of six selected priority industries on basis of exploiting potential and comparative advantages of Vietnam and using effectively to create industry having international competitiveness.
- The strategy of industrialization contributes to accelerate industrialization process of Vietnam to 2020. Selected fields are in accordance with general industrial development orientation of Vietnam and contributing much to create a driving force for development of other industries in process of industrialization to 2020. Industrialization strategy contributes directly in process of restructuring, serving transformation of growth model associating with economy restructuring towards improving quality, efficiency and competitiveness of the economy.
- Strategy of industrialization must create a breakthrough in attracting investment and increasing efficiency of foreign direct investment in general and Japan in particular in Vietnam; building and strengthening production linkages between domestic producers and Japanese enterprises; promoting technology transfer and innovation and improving quality of human resources of Vietnam.
3. Objectives:
- General objectives:
To prioritize development of six selected industries to promote technological innovation, labor productivity growth and build international competitiveness; developing products with high added value, spread of technology, high quality standards for export and domestic consumption.
- Specific objectives:
+ To construct and implement action plans to 2020, vision 2030 in feasibility and specific manner for each field in six selected fields; focusing on a number of strategic sub-sectors, products; implementing pilot projects in each sector, sub-sector if necessary.

+ Vietnam cooperate with Japan to attract quality investment projects of Japan into priority industries and related fields.
+ To mobilize maximum participation of government - enterprises - scientists of Vietnam and Japan in the whole process of construction, implementation and evaluating development effectiveness of selected fields.
- Some key indicators for fields given priority to development:
By 2020, fields given priority to development:
+ Fields given priority to development pioneers to apply high technology, clean technology associating with ensuring suitability of economic conditions of Vietnam.
+ Production value of fields given priority to development increases at least 20% annually and contribute a minimum of 35% of total industry production value.
+ Being in list of ten fields having the highest growth rate of labor productivity.
By 2030, fields given priority to development mainly apply high technology, clean technology associating with ensuring suitability of economic conditions of Vietnam.
II. Orientation and solution
1. Orientation:
- Orientation to 2020:
+ To increase production capacity of six selected fields to adapt to implementation of commitments of international economic integration to 2020. Transforming industries depending on simple, low added value assembling, processing to other fields using maximum domestic production input to create high added value, gradually raising international competitiveness.
+ To build and expand market for products of six priority fields.
+ To focus on development of supporting industry for six priority fields associating with transferring technology, training high quality human resource to lay foundation for the fields.
+ To speed up and put into operation major approved projects in fields of petrochemicals, steel manufacturing, electricity, gas, energy...) to increase efficiency of investment for long-term development of fields given priority to development.
- Orientation in a period of 2020 - 2030:
To strengthen linkages between among fields of manufacturing final products with fields of producing input materials, intermediate input materials and services.
2. Several key solutions:
- To research and build action plans for each field; surveying, attracting harmony participation of enterprises, the State agencies and universities in process of establishing action plans.
- To complete synchronously legal framework and policies to encourage development of selected fields; making public schedule of implementation of encouragement and preference policies for each fields.
- To promote strongly synchronous reform of administrative procedures and fulfilling consistently at all levels of administration from central to local levels.
- To develop several areas, localities to become dynamic areas of industrialization strategy to develop selected fields, out of which, given priority to development of infrastructure and human resource training in these areas.
- To organize to implement consistently action plan in principle: two sides Vietnam and Japan jointly cooperate and Japan actively supports implementation, ensuring effective use of resources.
- To develop systems of test and supervision to monitor implementation of action plan and assess performance results.
- Vietnam and Japan focuses on cooperation in several key fields to serve implementation of strategy of industrialization in a consistent manner. Key cooperation fields include:
+ To review and evaluate current strategy, plan and policy related to six priority fields and recommend adjustments to ensure uniformity of policy and enforcement of industrialization strategy and action plan of each field.
+ Investment promotion on six fields given priority to development.
+ Cooperation in training for six selected fields.
+ Cooperation in promoting technology transfer in six priority fields.
+ Cooperation in infrastructure development to serve six priority fields.
III. Organizing implementation
1. Bodies directing and managing implementation of strategy of industrialization
Steering Committee on Vietnam's industrialization strategy within framework of Vietnam - Japan cooperation to 2020, vision to 2030 being established under the Prime Minister’s Decision No. 1075/QD-TTg dated August 13, 2012 shall functions as a main implementer to develop, make public and organize implementation of this strategy.
2. Assignment of implementation of the strategy of industrialization
2.1. Ministry of Planning and Investment:
- Through deputy head of Steering Committee and working group, functioning as the main implementer to chair, coordinate, organize and cooperate with Japan in implementation strategy of industrialization.
- To coordinate with Ministry of Finance and other related ministries to build incentive, preference policies in consistent with strategy of socio-economic development in a period of 2011 - 2020 and tariff reduction schedule under regional and international commitments in order to attract investment in development of six selected fields; balancing the State budget and investment capital for development of six fields and put into 5 years, annual plans.
- To participate in setting up and implementation of action plan on development of six fields in industrialization strategy through working group.
2.2. Ministry of Finance:        
- To coordinate with Ministry of Planning and Investment and other specialized ministries to suggest amendments and supplements to preferential policies on taxes, customs and related administrative procedures to encourage development of six priority fields in consistent with process of international economic integration.
- To coordinate with Ministry of Planning and Investment and other related ministries to build incentive, preference policies in consistent with strategy of socio-economic development in a period of 2011 - 2020 and tariff reduction schedule under regional and international commitments in order to attract investment in development of six selected fields; balancing the State budget and investment capital for development of six fields and put into 5 years, annual plans.
- To participate in setting up and implementation of action plan on development of six fields in industrialization strategy through working group
2.3. Ministry of Industry and Trade:
- To function as the main implementer, in collaboration with related ministries and agencies to implement action plans of agricultural machinery industry, automobile and auto parts industry, environment and energy saving.
- In collaboration with Ministry of Information and Communications to organize implementation of action plan on electronic industry; in collaboration with Ministry of Agriculture and Rural Development to organize implementation of action plan on agricultural, aquaculture processing industry.
- In collaboration with Ministry of Planning and Investment, Ministry of Finance and related ministries to build encouragement, preference policies to facilitate attraction of investment in development five fields of the strategy of industrialization.
- To participate in setting up and implementing action plan on development of fields in industrialization strategy through the working group.
2.4. Ministry of Agriculture and Rural Development:
- To function as the implementer, in collaboration with related ministries and agencies to implement action plan on agricultural and fisheries processing industries.
- To coordinate with the Ministry of Industry and Trade to organize implementation of action plan on agricultural machinery industry.
- To coordinate with Ministry of Planning and Investment, Ministry of Finance and related ministries to build encouragement, preference policies to facilitate attraction of investment in development two fields of the strategy of industrialization.
- To participate in building and implementation of action plan on development of six fields in industrialization strategy through working group.
2.5. Ministry of Transportation:
- To function as the main implementer and in collaboration with related ministries and agencies to implement action plan on shipbuilding industry.
- To coordinate with Ministry of Planning and Investment, Finance and the related ministries to build encouragement, preference policies to facilitate attraction of investment in development of shipbuilding industry.
-  To participate in building and implementation of action plan on development of six fields in industrialization strategy through working group.
2.6. Ministry of Information and Communications:
- To function as the implementer, in collaboration with Ministry of Industry and Trade and related ministries, agencies to implement action plan on development of electronic industry.
- To coordinate with Ministry of Planning and Investment, Finance and related ministries to build encouragement, preference policies to facilitate attraction of investment in development of electronic industry.
- To participate in building and implementation of action plan on development of six fields in industrialization strategy through working group.
2.7. Ministry of Science and Technology:
- To coordinate with related ministries, agencies to build encouragement, preference policies to facilitate attraction of investment in development of priority fields in industrialization strategy; building policies to boost technology transfer, speed up high technology application in six priority fields.
- To participate in building and implementation of action plan on development of six fields in industrialization strategy through working group.
2.8. Ministry of Foreign Affairs:
- To participate in and in collaboration with Ministry of Planning and Investment to coordinate cooperation with Japan.
- In collaboration with Ministry of Planning and Investment, Finance and related ministry to build encouragement, preference policies to facilitate attraction of investment in development of priority fields in industrialization strategy.
- To participate in building and implementation of action plan on development of six fields in industrialization strategy through working group.
2.9. State Bank of Vietnam:
- To coordinate with Ministry of Planning and Investment, Ministry of Finance, related ministries to build credit incentive policies for six selected sectors.
2.10. Ministry of Education and Training, Ministry of Labour - Invalids and Social Affairs:
- To coordinate with related ministries, agencies to organize implementation of action plan on human resource training for six selected fields.
-  To participate in setting up and implementation of action plan on development of six fields on industrialization strategy through working group.
2:11. Other ministries, agencies and People's Committees of centrally-run provinces and cities shall be responsible for developing action plan and coordinate to handle related issues as suggested by the Steering Committee and an agency presiding over implementation of action plan of each field.
IV. Responsibility and support of Governments of Vietnam and Japan
1. Responsibility and support of Government of Vietnam:
- In process of implementing action plan of strategic industries, the Steering Committee will establish a task force of concerned ministries, agencies and direct implementation of action plan on development of six fields in a consistent manner.
- Ministries, agencies and People's Committees of provinces and centrally-run cities shall be responsible for providing and sharing necessary information, documents, statistics for implementation of the strategy of industrialization.
2. Responsibility and support of the Government of Japan:
- Related bodies of Japan commit to actively participate in and support implementation of the strategy of industrialization.

- To provide financial support to carry out necessary inspection, surveys and consultation to serve implementation of the strategy of industrialization.
- To actively promote investment, find potential investors for Vietnam; selecting information and sharing them with ministries, agencies and stakeholders to serve implementation of the strategy of industrialization.

L.Giang
Source: moj.gov.vn

 

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