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Industrial development plan on Southern key economic zone to 2025, with vision to 2035 

 Thursday, November 30,2017

AsemconnectVietnam - By 2025, the southern key economic region will become a modern industrial zone and develop regional industry in association with science and technology and industrial products of the region with high quality and competitiveness and high added value.

INDUSTRIAL DEVELOPMENT PLAN ON SOUTHERN KEY ECONOMIC ZONE TO 2025, WITH VISION TO 2035

1. Development viewpoint
a / Development of regional industry bases on comparative advantage of geographical location, convenient transportation and high-quality human resources; To concentrate resources on development of hi-tech industries with great added value, promoting their role as a leading role, creating market dynamics for other regions to develop together;
b) To strengthen regional links to bring into play potentials and advantages of each province and promote cooperation in industrial development; To take initiative in international integration and sustainable industrial development in association with environmental protection, protection of natural landscapes, protection of cultural heritages and preservation of national identity.
2. Development objectives
a) General objective
- By 2025, the southern key economic region will become a modern industrial zone and develop regional industry in association with science and technology and industrial products of the region with high quality and competitiveness and high added value.
- In a period of 2026 - 2035, industrial products of the region have a prestigious brand that meets standards of developed countries.
b) Specific objectives
- Growth rate of industrial production value in a period up to 2020 shall reach 10.5-11.0%; In a period of 2021- 2025 shall be 12.5 - 13.0%; In a period of 2026 - 2035 will be 12.0 - 12.5%.
- Rate of industrial and construction added value growth will reach 8.5 - 9.0% by 2020; in a period of 2021 – 2025, it is 9.0-9.5%; in a period of 2026 - 2035 is 8.5-9.0%. Out of which, rate of industrial added value growth achieves 9.0 - 9.5%; 10.5 - 11.0% and 9.5 - 10.0%.
- Proportion of industry and construction in economic sectors in 2020 will reach 48.5-49.0%, in 2025 will reach 49.0-49.5% and in 2035 will reach 46.0-46.5%. Of which, corresponding industry proportion in the years will be 36.0-36.5%; 34.5-35.0% and 32.0-32.5%.
3. Development orientation
3.1. Orientation to 2025
- To concentrate on developing a number of branded, specific products for the region, so as to participate in the country's key export chains and production chains.
- To continue stepping up development of a number of key industries such as oil and gas exploitation, steel production, electricity production, fertilizer and chemicals from petroleum; construction materials and labor-intensive industries, especially in provinces with low development levels: agro-forestry-fishery processing, food industry; consumption goods, textiles, footwear and plastic. At the same time, to focus on developing a number of fields and industrial products having the leading role such as software, electronic and civil industry; precision engineering, mold making, medical instruments. To encourage development of supporting industries for mechanical engineering, automobile motor and electronic industries, creating a satellite network to supply spare parts for big companies;
- To concentrate on developing hi-tech industries and clean industries; electronics in areas where have favorable conditions. To continue attracting investment into hi-tech parks. Studying scheme on building a technical service zone located in suburban of Ho Chi Minh city for task of improving technical and technological advances for enterprises in the South;
- To cooperate and associate between branches and industrial enterprises of the region with other localities and regions in order to efficiently use and save resources, raise quality and competitiveness of the industry. . Actively and effectively participate in industrial linkage with multinational corporations around the world;
- Development of industry is in association with development of services; To develop rural industry, create direct motivation for process of industrialization and modernization of rural agriculture, speed up urbanization process in the whole region;
- To restrict building of labor intensive establishments in big cities. To adjust direction of industrial distribution in the region, on basis of exploiting natural resources and remaining areas of provinces with low industrial production density, suitable to the characteristics of each industrial production sector.
3.2. Vision to 2035
Southern key economic region continues to be a dynamic economic region with high and sustainable quality, leading economic development; It is a high tech industry center with a high level of specialization. Industry is developing in direction of environmentally friendly, clean industry and high technology, industrial products and actively participate in global industrial production chain.
4. Development plan
4.1. Development plans for major industries
a) Mining industry
* In a period to 2025
- To develop mining industry on basis of rationally and economically exploiting and using resources in the region.
- To actively promote search, evaluation and exploration of mineral resources, especially oil and gas (under guidance of the Government), exploitation of limestone and other minerals;
- To boost the mining output so as to fully meet domestic demand with appropriate quality and quantity; effectively combining filtration, petrochemical, gas processing.
- To exploit crude oil and natural gas in Ba Ria - Vung Tau province.
- Exploitation of limestone cement is mainly concentrated in Tay Ninh and Binh Phuoc provinces. Exploitation of stone, sand and gravel is mainly concentrated in provinces of Dong Nai, Binh Duong, Binh Phuoc and Ba Ria - Vung Tau to meet needs of the region and part of the Mekong River Delta. To exploit clay and clay bricks in Binh Duong and Dong Nai provinces to meet demand for brick and ceramic production in the region. Exploiting mineral water in Ba Ria - Vung Tau province.
Vision to 2035
- To continue investing the exploration, upgrading and expansion of reserves in order to ensure that the resources are reliable enough for operation of projects for exploitation of minerals in the region.
- To encourage investment in advanced and synchronous technologies, clean technologies with less environmental pollution. To step up deep processing, raising of added value, quality of processed products and efficiency of production and business activities of mineral processing establishments;
- To combine exploitation and processing with thorough treatment of wastes, restoring environment in the mining.
b/ Mechanical, metallurgy industries
* In a period to 2025
- To prioritize development of specialized hi-tech mechanics; To invest in development of mechatronic products, combining with intensive investment in capacity building and active participation in joint ventures with multinational corporations, towards becoming a supplier in the supply chain.
- To concentrate on developing supporting industries in high added value products in value chain of mechanical products such as designing, making molds and making complex components with high precision. ... to boost productivity and increase added value of mechanical engineering. In addition, continuing to develop supporting industries for mechanical engineering industry to serve transportation, construction and processing of agricultural, forestry and fishery products, mining, environment and energy.
- To produce high grade steel, special steel in Ho Chi Minh City, Ba Ria - Vung Tau.
- To produce shipbuilding mechanics; to manufacture machines and equipment to serve agricultural production; Oil and gas equipment, transport means and seaports in Ho Chi Minh city, Ba Ria - Vung Tau, Tien Giang.
Vision to 2035
- Newly investing in production of transport means, navigational control equipment; projects on production of a number of specialized spare parts and equipment for civil aviation industry; oil and gas exploration and mining; health care; education; tourism; environmental industry; energy industry and some other industries.
- To invest in production of machine tools for metal processing; manufacturing machinery and equipment for textile and garment, leather and footwear industries; agro-forestry production; processing of seafood, food; health sector, ship building and repairing; automobile assembly and transport.
c) Chemical industry
* In a period to 2025
- To develop selective chemical, rubber and plastic industries so as to minimize possibility of causing environmental pollution, increasing added value and raising efficiency of production activities, ensuring division of labor in Southern key economic zone.
- Investing in technological innovation, diversifying and raising quality and competitiveness of products; maximizing capacity of existing manufacturing enterprises; investing in development of new projects with advanced technologies in order to create high quality, low cost and competitive products in market.
- To develop concentrated chemical industry in industrial parks and clusters to protect environment. To thoroughly implement a plan on relocation of polluted enterprises into industrial parks and complexes, combining investment in renovating, upgrading and renewing equipment and technologies.
- Production of petrochemical products will be located in the Southern petrochemical complex (Ba Ria - Vung Tau province); production of radial truck tire has a capacity of 1,000,000 tires a year in Binh Duong province; production of wooden paint, powder coating paint, high quality ship paint will be in Ho Chi Minh City and Ba Ria Vung Tau province; production of pharmaceutical products (raw materials for antibiotics, functional foods, vaccines, high-grade cosmetics, biological packages and industrial plastics).
Vision to 2035
- To promote capacity of factories which have been invested in the previous period, stepping up development and raising of product quality, investing in modern and advanced technologies, creating high-quality products to satisfy domestic demand and part for exports to other countries in the region.
- To carry out a number of projects on petrochemical production, finished rubber, detergents and biofuels; developing a number of production projects related to extraction of pharmaceutical materials.
d/ Development of garment and textile, leather and footwear industries
* In a period to 2025
- To boost export and at the same time satisfy domestic market demand. To concentrate on strongly developing supporting industries products, producing raw materials and auxiliary materials and enhancing added value of products in the industry.
- To develop textile and garment and leather and footwear industry in association with environmental protection and trend of rural agricultural labor movement.
- To form fashion design center in Ho Chi Minh city.
- To develop supporting industries of textile and garment and footwear sectors in Dong Nai, Binh Duong and Long An provinces.
Vision to 2035
- To continue to call on projects and industrial parks to support garment and footwear sector in order to limit imports and decrease production costs.
- To focus resources on export production and focus on market development, paying special attention to potential markets such as the United States and EU.
- To continue to renovate technology, invest in fields of garment, footwear and fiber. At the same time, to concentrate on maintaining and raising production capacity of existing establishments and step by step investing in technological renewal in order to raise quality of products in combination with building and development of trademarks.
e) Industry of construction material production (construction materials)
* In a period to 2025
- To develop new types of materials, materials with scientific and technological, high automation content, energy-saving, clean and green materials, using highly skilled human resources and have huge economical effectiveness.
- To develop medium and large-sized construction materials (except for some high-grade materials which may be small sized), having advanced production techniques and technologies, diversifying products and reaching regional and international quality standards to improve labor productivity and have high economic efficiency.
- Producing lightweight, ultra light, soundproofing and insulating materials used in construction in Long An, Binh Phuoc and Tay Ninh provinces.
- Producing glass block brick, decorative brick in Dong Nai, Ba Ria - Vung Tau and Binh Phuoc provinces.
Vision to 2035
- To continue exploiting rationally and effectively mineral resources for building materials to ensure harmonious and sustainable development between economy, national security and defense and ecological environment protection, meeting demand for building materials in area.
- To maintain and renovate technology to promote full capacity of brick factories, producing lightweight concrete, prefabricated concrete, foam concrete for production of block brick products, panels which can be sound insulation, producing tile.
f/ Production of electric and electronic equipment
* In a period to 2025
- To invest in large-scale production and assembly of electronic, electronic and information technology products and form a network of satellite enterprises to serve production and assembly of final products. At the same time, strengthening links with multinational corporations to adopt modern technology.
- To develop supporting industries for electric and electronic industry such as electronic components, printed circuit boards, electronic chips, control boards, software and accessories, metal and plastic components to supply for local assemblers and exporters.
- To form intensive industrial parks in field of electronics and information technology.
- To develop supporting industries for electronics (electronic components, printed circuit boards, control boards and components) in Ho Chi Minh City, Binh Duong, Dong Nai and Long An provinces.
- To produce hi-tech products (robotics, smart devices, nano-systems, CNC) in Ho Chi Minh City and Binh Duong, Dong Nai and Long An provinces.
- To produce electrical equipment: transformers, electric cables in provinces of Ba Ria - Vung Tau, Long An, Binh Phuoc, Tay Ninh.
Vision to 2035
- To concentrate on hi-tech projects: To make robots and intelligent specialized equipment in fields of financial and bank; travel; health care; education; scientific research; maritime transport, aviation.
- Fabrication of materials used in the electronics industry: magnets, rare earths of amorphous and micro crystalline materials, nanomaterials, optical and electronic materials and components for telecommunication, automation.
g / Processing of agricultural, forest and aquatic products, foodstuffs
* In a period to 2025
- To develop industry of processing agricultural, forest and aquatic products, foodstuffs which associate with restructuring of plants and animals, applying scientific and technical advances in agriculture, protecting ecological environment and solving well human resources in rural areas.
- To develop industry of processing agricultural, forestry and fishery products and foodstuffs in direction of applying advanced technologies, diversifying products, improving and raising quality of products up to standards of hygiene and safety and meet consumption demand in the region and at the same time increase export output.
- To produce animal feed, poultry, aquatic products in Binh Phuoc, Tien Giang, Dong Nai, Tay Ninh, Long An, Tien Giang provinces.
- To produce beer, beverage, mineral water in Binh Phuoc, Tien Giang, Dong Nai, Ba Ria - Vung Tau provinces.
- To produce canned food (processing meat, seafood, fruit, confectionery, milk) in Ho Chi Minh City and Dong Nai, Ba Ria - Vung Tau provinces.
Vision to 2035
- To upgrade existing facilities, renewing modern technologies with high productivity, energy saving and environmental protection. To prioritize new investment in hi-tech application projects which are suitable to conditions of localities in the region.
- To invest in industrial scale of agricultural and aquatic product processing projects in combination with continued implementation of food preservation and processing projects (soft drinks, cattle meat, poultry and seafood).
h) Power generation industry
- To develop electricity industry and diversify sources of electricity together with transmission network to meet demand for electricity for production and consumption in Southern key economic region.
- To develop and improve grid system in order to improve reliability of electricity supply under N-1 criterion, minimizing electricity loss.
- To continue researching and applying new technologies, selectively building a number of renewable energy projects, biomass energy.
- To carry out electricity development projects in Southern key economic zone under national electricity development plan in 2011-2020 period with a vision to 2030 which have been already approved under the Prime Minister’s Decision No. 428/QĐ-TTg dated March 18, 2016.
4.2. Spatial distribution of industrial development
* Ho Chi Minh City:
- To change proportion of product structure in direction of increasing ratio of machinery, equipment, high-grade consumption goods.
- To concentrate on developing hi-tech products, requiring less labor (semiconductor materials, electronic chips and microchips).
- To concentrate on developing Ho Chi Minh City into a big center for software production and information technology services in Southeast Asia. To intensify training of human resources in high-tech information technology to meet development demands of information technology industry in general and software industry and digital content in particular.
- For processing industry, only developing concentrated production and processing of fine products, products of deep processing with great added value.
- For the textile and garment, leather and footwear industry, focusing on building the largest fashion center of the country in Ho Chi Minh City.
* Ba Ria Vung Tau province:
- To develop Ba Ria - Vung Tau province to become a strong marine economic center with a national and international commercial port system, to be one of the major industrial, service, tourist and marine centers of the country, southern key economic zone and the whole country.
- To develop mechanical engineering industry, supporting industry of mechanical engineering fields, especially mechanical engineering to serve oil and gas industry.
- Construction materials industry should focus on improving competitiveness of products with advantages such as production of building stone and all kinds of tiles towards the production of high-grade materials. To develop cement grinding stations to serve local demands in the province.
- Oil and gas exploitation: To step up search and exploration activities under the Government's direction in order to increase oil and gas potential and reserves, giving priority to areas where oil and gas have been discovered but not yet affirmed commercial value. To reduce exploitation output for oil and gas to step up exploration activities in order to seek new mines and increase mining reserves for subsequent years.
* Binh Duong province:
- To become one of strong mechanical centers of the region, concentrating on specialized mechanical engineering to serve industries, processing, producing spare parts, components and assemblies; consumption engineering; producing high quality steel; precision mechanics, mechanical assembly, mechanical repair; machinery and equipment for agriculture and forestry (tractors, agricultural machines, agricultural and forestry equipment processing equipment); high-grade consumption goods.
- To develop industrial zones for production of electronic products
- For agro - forestry - fishery product processing industry, only concentrating on producing and processing deep - processing and fine - art products with great added value.
- For building material industry, mainly producing sanitary ceramics and wall tiles
* Dong Nai province
- To concentrate on developing automobile and motorbike industry; mechanical engineering; construction and consumption. Creating foundation for development of assembling and manufacturing industries, production of complete mechanical products.
- Developing industrial zones for production of electronic products
- Only concentrating on manufacturing and processing fine products, deep processing with great added value.
- For building materials industry, developing sanitary ceramics and wall tiles.
* Binh Phuoc province:
- To invest in mechanical plants of appropriate size as a core for mechanical industry, including: farm tools, hand tools; repairing equipment for agricultural and forestry product processing; repair, restoring automobiles, tractors and means of transport; mechanical industry which support mining and mineral processing.
- To invest in construction of plants of assembling, production of hardware and completed electronic equipment with large-scale, modern technology.
- To develop agro-forestry and foodstuff processing industry, giving priority to step by step investing in technologies and equipment for enterprises, gradually narrowing gaps in level of enterprises among localities in the region.
- Developing footwear and bags; To form a group of production and trading of raw materials for leather and footwear.
- To concentrate on cement production.
* Tay Ninh, Long An, Tien Giang provinces
- To build a number of leading mechanical enterprises, promote and encourage development of small-sized mechanical clusters in their respective localities, speed up process of agricultural and rural industrialization; developing mechanical support products.
- To invest in construction of plants of assembling and production of hardware and completed electronic equipment with large-scale, modern technology.
- To promote development of agro-forestry and foodstuff processing industry, given priority step by step to invest in technologies and equipment for production enterprises in the fields in localities in the region.
- To receive and develop footwear and bag production enterprises; To form a production and trading center for raw materials and auxiliary materials.
- Particularly for Tay Ninh province, developing cement production; all kinds of tiles; for Tien Giang province, developing mechanical industry, automobile supporting industry; mechanical engineering; construction and consumption. Creating foundation for development of assembling and manufacturing industries, manufacturing completed mechanical products.
5. Solutions
5.1. General solution
a/ Mobilizing resources and orienting investment in key majors and key projects
- Capital from the State budget shall be used to invest in construction of infrastructure, partly in support of investment in scientific research, technological renewal and human resource development.
- To give priority credit for all economic sectors, enterprises to borrow capital to invest to develop production and business sectors which the State encourages. Preferential policies should be completed in direction of equality for all economic sectors in term of capital, term, interest rate, mortgage and loan guarantee.
- To mobilize capital for investment in development of key industries from all sources, attaching importance to capital sources of enterprises, securities market, equitization of enterprises, FDI sources and loans.
- To develop and enter into economic linkages with other countries to coordinate and make use of each other's resources and capacities and to initiate creation of enterprises in global production chain.
b/ Group of solutions on market and trade promotion
- To attach importance to build and expand domestic wholesale and retail network along direction of civilization and efficiency.
- To expand and enhance effectiveness of trade promotion activities, market information to help businesses expand the market. To organize effective implementation of the campaign entitled "Vietnamese people prioritize use of Vietnamese goods" in order to boost sale of goods in the country.
- To continue to improve legal framework related to trade to limit trade frauds (counterfeit goods, smuggling), violations of international trade rules and regulations such as subsidies, dumping; unfair competition practices; enhance consumption awareness and strengthen role of Consumer Protection Association.
- To enhance role of trade associations in trade promotion, market development and support among enterprises in the region.
c/ Scientific and technological solutions
- To perfect mechanism of encouraging enterprises to renew their technologies and apply high technologies in production such as preferential loans, depreciation of machinery and equipment, reduction of income tax.
- To issue policies to support part of fund for renewal, transfer of technology or purchase of design or human resource training.
- To form a number of research and development centers which are capable of supplying information and consultancy on advanced technology transfer to industrial enterprises in the region.
- To provide financial support for development of technology market, ensuring close co-operation between research and production, strict enforcement of intellectual property and industrial property policies; special support and incentives for capital, tax for hi-tech products, first trial products from research results.
- To establish information and consultancy center on science and technology; establishing technology databases according to economic - technical groups so that enterprises can select appropriate technologies.
- To promulgate policies to support establishment of a system of domestic science and technology nurseries with help of foreign scientific and technological organizations;
d/ Group of financial, tax and land solutions
+ Financial
- To facilitate access to financial sources for all types of enterprises in an equal and speedy manner;
- For enterprises producing hi-tech products, the State shall support from 50% to 100% of the expenditures on research and experimentation. Preferential loans is up to 85% of capital from the Vietnam Development Bank according to Law on high technology and the Government's high-tech product development program.
+ On taxes and charges
- Each locality should publicize land rent bracket for each area to create favorable conditions for investors to choose; disseminate tariff schedules under WTO commitments and bilateral and multilateral free trade agreements (FTAs) so that enterprises can be proactive and implement solutions;
- To use flexible tax and fee instruments in line with international economic integration commitments in order to promote fair competition while at the same time rationally protecting a number of industrial products.
+ On land
- To distribute land use plans in a rational and effective manner, especially land reserved for industrial parks and industrial clusters and for development of dwelling houses, cultural and social infrastructure for laborers in industrial zones and export processing zones;
- To have positive and synchronous solutions and policies to carry out site clearance and resettlement for projects that ensure construction progress.
e) Group of measures to create coordination and link in the region
- To strengthen linkage between localities in economic zone, base on activities of regional coordination boards, each locality in the region to identify the specific advantages of each locality. Priority sectors of industry should be developed by each locality in the general industrial structure of the region in order to take advantage of scale and avoid overlapping and duplication of localities in the region.
- To formulate and implement regional industrial development projects, especially big projects related to neighboring provinces, given priority to projects of development of industries with high content of capital and science and technology (mechanical, informatics, electronic).
5.2. Immediate solution
a) Creating an attractive environment for investment, production and business
- To perfect system of legal documents regulating industrial activities in direction of stability, fairness and transparency, reducing burden on enterprises;
- To implement modernization and reform of administrative procedures (procedures for investment licensing, construction permits, bidding, production and business registration, import and export, customs and tax) in direction of process simplification, reducing unnecessary procedures; to intensify application of electronic administration. At the same time, consider specific provisions on provision and certification of digital signatures to facilitate enterprise.
- To develop international logistic system, focusing on calling for foreign investment in a period up to 2020, then developing domestic enterprises to reduce intermediary costs for enterprises.
- To invest in building a database on regional industrial system so as to provide necessary information on activities related to investment and operation of industrial and product sectors of enterprises for planning and adjusting policies for economic organizations, investors inside and outside the country.
b/ Group of solutions on training and use of industrial human resources
- To develop a human resource development plan which bases on close interaction and cooperation with business community and closely align with regional development orientation to ensure balance of labor supply and demand in the whole region;
- To develop criteria for evaluating labor capacity according to specific job requirements as basis for recruitment, not only base on current qualifications;
- There should be preferential treatment in training, such as scholarship, recruitment after graduation .... to select high quality human resources for high technology industries, key industry;
- To encourage enterprises to organize their own training by investing funds and recruiting human resources for training according to enterprises' demands; after training, priority will be given to recruit and serve limited time for the enterprise. Forms of incentives such as training allowances, tax exemptions or refunds.
6. Organizing implementation
a) The Ministry of Industry and Trade is responsible for announcing the "industrial development plan in southern key economic region until 2025 with a vision to 2035" and organizing monitoring and inspection of implementation of the plan.
b/ Concerned ministries and branches shall, according to their functions, tasks and powers, coordinate with Ministry of Industry and Trade and provincial People's Committees.

Long Giang
Source: thuvienphapluat.vn

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