Decision No. 1043/QD-TTg approving Vietnam's industrialization strategy within the framework of Vietnam-Japan cooperation through 2020 with a vision toward 2030

76 Issue nos 04-06/Julv 2013 (Cong Bao nos 409-410/Ju/y 13, 2013) establishment of the Steering Committee for Vietnam :S- industrialization strategy within the framework of the Vietnam-Japan cooperation through 2020; At the proposal of the Minister of Planning and Investment; DECIDES: Article 1. T o a p p r o v e Vietnam's industrialization strategy within the framework of Vietnam-Japan cooperation through 2020 with a vision toward 2030 (below referred to as the industrialization strategy) with the following major contents: 1. Vision, viewpoints and objectives a/ Vision: To strongly develop six pliolity industries, including electronics, agriculniral machinery, agricultural fishery product processing, shipbuilding, environment and energy saving and automobiles and auto parts manufacturing, into spearhead industries of the economy with high added value and international competitiveness. Industries prioritized for development in the industrialization strategy have a leading role in promoting the attraction THE PRIME MINISTER of investment from domestic and foreign enterprises, first of all Japanese ones, and DecisionNo.1043/QD-TTgofJulyl,2013, creating a spillover of technology and skills approving Vietnam's industrialization for the indust1y in paiticular and Vietnam's strategy within the f ramework of economy in general. Vietnam-Japan cooperation b/ Viewpoints: through 2020 with a vision toward - The industrialization str·ategy contributes 2030 to the implementation of Vietnam's general policy on industiial development focusing on the THE PRIME MINISTER development of the six selected pliolity industiies Pursuant to the December 25, 2001 Law on on the basis of effectively tapping potentials and Organization of the Government; comparative advantages of Vietnam to develop Pursuant to the Prime Minister :S- Decision internationally competitive industiies. No. 1075/QD-TTg of August 13, 2012, on the © Vietnam Law & Legal Forom Issue nos 04-06/Julv 2013 77 (Cong Bao nos 409-410/Ju/y 13, 2013) - The industrialization strategy contributes + Vietnam and Japan cooperate in att:J.·acting to speeding up Vietnam's industrialization Japanese quality investment projects into process through 2020. The selected indust:J.ies prio1ity indust1ies and relevant sectors. conforms to Vietnam's industrial development + To mobilize the utmost participation orientations and make great contributions to of Vietnamese and Japanese governments, creating motives for the development of other businesses and scientists in the whole process industries during the industrialization process of building, implementing and assessing through 2020. The industrialization process the efficiency of the selected industries' makes direct contributions to the rest:J.ucniring development. of sectors, serves the change of growth models - A number of major targets for the together with economic restmctming towards development of priority sectors: higher quality, efficiency and competitiveness By 2020, the sectors will be prioritized for of the economy. the development, including: - The industrialization strategy must + Sectors prioritized for development will create a breakthrough in attracting investment take the lead in the application of high and clean and increase the efficiency of foreign direct technologies while ensuring the rationality in investment in general and Japanese investment Vietnam's economic conditions. in Vietnam in particular; fo1m and consolidate the production linkage between Japanese and + Production value of the priority sectors domestic businesses; promote technology will increase at least 20% annually and t:J.·ansfer and innovation and increase the quality contribute at least 35% to the total industrial of Vietnam's human resources. production value. c/ Objectives: + These sectors will rank among ten sectors with the highest labor productivity growth. - Overall objectives: By 2030, the sectors prioritized for To prioritize the development of the development will largely apply high and clean six selected industries in order to promote technologies while ensuring the rationality in technology innovation, increase productivity Vietnam's economic conditions. and build international competitiveness; develop products with high added value, technology 2. Orientations and solutions spillover and up to advanced quality standards a/ Orientations: for expo1t and domestic consumption. - Orientations through 2020: - Specific objectives: + To increase the production capacity of + To formulate and o r g a n i z e the the six selected indust:J."ies so as to adapt to the implementation of a specific and feasible action implementation of commitments to international plan for each of the six selected industries economic integration through 2020. To conve1t through 2020 with vision toward 2030; to indust:J.·ies depending on simple assembly and focus on a number of sub-sectors and st:J.·ategic processing with low added value into indust:J.·ies products; and to implement pilot projects in using domestic input materials of the upst:J.·eam each indust:J.y and sub-sector if necessa1y. and midstream sectors to create high added © Vietnam Law & Legal Fornm

78 Issue nos 04-06/Julv 2013 (Cong Bao nos 409-410/Ju/y 13, 2013) value and gradually increase international - To develop a number of regions and competitiveness. localities into dynamic regions of the + To build and expand the market for the six industi·ialization strategy for the development p1101ity sectors' products. of the selected sectors, giving priority to developing infrastiucmre and human resource + To focus on developing supporting training in these regions. industries for the six priority sectors in combination with technology transfer and - To organize the implementation of action training of high-quality human resources as plans in a consistent and unifonn manner and foundations for these industries. on the principle of Vietnam-Japan cooperation and exchange and Japan's active assistance in + To accelerate the commissioning of the course of implementation, and to ensure the major projects that have been approved efficient use of resources. in upstream sectors (petrochemical, steel - To build a smveillance and inspection production, electricity, gas, and energy, etc.) system to monitor the implementation of action so as to increase the efficiency of investment plans and assess the results. in the long-te1m development of the industiies, pliolitized for development. -Vietllam and Japan focus on cooperation in a number of key areas to se1ve the implementation - Orientations for 2020-2030: of the industiialization sti· ategy in a consistent To sti·engthen the linkage between the sectors manner. Key cooperation fields include: manufacturing end products and the sectors + Reviewing and assessing existing manufactming material inputs, or inte1mediate sti·ategies, plans and policies relating to the six inputs, and the se1vice sectors, and to fonnulate priority sectors and proposing adjustinents in the industiial stiucnire consistent from upsti·eam order to ensure the synchronism of policies and and midsti·eam to downstream. the feasibility of the industiialization sti·ategy bl A number of major solutions: and each sector's action plan. - To sn1dy and fo1mulate an action plan for + Promoting investment in the six pliolity each sector's development; to conduct smveys sectors for development. and attract the ha1monious participation of + Cooperating in the field of human resource enterprises, state agencies and universities training for the six selected sectors. dming the process of fo1mulating action plans. + Cooperating in acceleration of technology - To synchronously complete the legal transfer in the six priority sectors. framework and policies to encourage the + Cooperating in infrast111cture development development of the selected sectors; and to for the six priority sectors. publicize plans to carry out incentive and preferential policies for each sector. Article 2. Organization of implementation - To accelerate and consistently implement 1. Instruction and managerial apparams the comprehensive refonn of administrative for the implementation of the industiialization procedures at all administrative levels from sti·ategy central to local levels. The Steering Committee for Vietnam's © Vietnam Law & Legal Forom Issue nos 04-06/Julv 2013 79 (Cong Bao nos 409-410/Ju/y 13, 2013) industiialization strategy within the framework - Coordinate with the Ministiy of Planning of the Vietnam-Japan cooperation through 2020 and Investment and line ministries in with a. vision toward 2030 established under the fo1mula.ting incentive and preferential policies in PiimeMinister'sDecisionNo. 1075/QD-TTg of confo1mity with the 2011-2020 socio-econotnic August 13, 2012, shall fommla.te, publicize and development sti·ategy and the roadmap for ta1i.ff organize the implementation of this sti·ategy. reduction under regional and international commitinents in order to atti·act investment in 2 . A s s i g n m en t t o i m p l e m e n t t h e the development of the six selected sectors and industifaliza.tion sti·a.tegy balancing the budget and investment capital for a/ The Minist1y of Planning and Investment the six sectors' development and include them shall: in annual and five-year plans. - Through the deputy head of the Steering - Take pa.it in fo1mulating and implementing Committee and the working group to assume action plans for the six sectors' development the prime responsibility for coordinating the in the industrialization strategy through the organization, collaboration and cooperation working group. with Japan in implementing the industiia.liza.tion c/ The Ministiy oflndust1y and Trade shall: strategy. - Coordinate with relevant ministries and - Coordinate with the Ministiy of Fina.nee sectors in implementing the action plans of the and line ministries in fonnula.ting preferential agiiculture ma.chine1y, automobile and auto pa.it and incentive policies in conformity with manufa.cn1ring, and enviromnent and energy the 2011-2020 socio-economic development saving sectors. strategy and the roadmap for tariff reduction - Coordinate with the Ministry of under regional and international commitments Infonnation and Communications in organizing in order to attract investment in the six selected the implementation of the electronics sector's sectors; and balance the budget and investment action plan, and the Ministiy of Agi·iculrnre capital for the six industries' development and and Rural Development in implementing to include them in annual and five-year plans. action plans of agi·iculniral and fishe1y product - Take pa.it in fo1mulating and implementing processing industiy. action plans for the six sectors' development - Take pa.it in fo1mulating and implementing in the industrialization strategy through the action plans for the development of the six working group. sectors in the industifalization strategy through b/ The Ministiy of Fina.nee shall: the working gi·oup. - Coordinate with the Minist1y of Planning di The Minist1y of Agi·iculnire and Rural and Investinent and line ministi·ies in proposing Development shall: amendments and supplements to tax, tariff and - Assume the prime responsibility for, and administrative procedure incentive policies to coordinate with relevant ministi·ies and sectors encourage the development of the six priority in, organizing the implementation of action industries to comply with the international plan of the agriculn1ral and fishe1y product economic integration process. processing industiy. © Vietnam Law & Legal Fornm

80 Issue nos 04-06/Julv 2013 (Cong Bao nos 409-410/Ju/y 13, 2013) - Coordinate with the Ministiy of Indust1y -Take pait in fo1mulating and implementing andTrade in organizing the implementation of action plans for the six sectors' development the action plan of the ag1icultural machine1y in the industrialization strategy through the indust1y. working group. - Coordinate with the Ministty of Planning g/The Minist1y of Science and Technology and Investment, the Minist1y of Finance and shall: other relevant ministties in fonnulating incentive - Coordinate with relevant ministt·ies and and preferential policies to facilitate attt·action of sectors in fo1mulating incentive and preferential investment in the above two industties. policies to facilitate investment in the ptiotity -Take pa1t in fo1mulating and implementing sectors of the industrialization strategy; and action plans for the six sectors' development formulate policies to promote technology in the industrialization strategy through the transfer and speed up the application of high working group. technologies in the six ptiotity sectors. dd/ The Ministty ofTranspo1t shall: -Take pa1t in fonnulating and implementing - Assume the prime responsibility for, action plans on the six sectors' development and coordinate with relevant ministries and in the industrialization strategy through the sectors in, organizing the implementation of working group. the shipbuilding industty's action plan. h/ The Ministty of Foreign Affairs shall: - Coordinate with the Ministty of Planning - Take part in and coordinate with the and Investment, the Ministry of Finance Ministry of Planning and Investment in and other relevant ministties in fo1mulating coordinating cooperation with Japan. incentive and preferential policies to facilitate investment in the shipbuilding indust1y. - Join the Ministty of Planning and Investtnent and the Ministty ofFinance and relevantministties -Take pa1t in fo1mulating and implementing in fo1mulating incentive and preferential policies action plans for the six sectors' development to facilitate the investment in the six industties in the industrialization strategy through the of the industtialization stt·ategy. working group. -Take pa1t in fonnulating and implementing e/ The Ministry of Information and action plans on the six sectors' development Communications shall: in the industrialization strategy through the - Assume the prime responsibility for, working group. and coordinate with the Ministty of Industty and Trade and relevant ministt·ies and sectors ii The State Bank of Vietnam shall: in, organizing the implementation of the - Coordinate with the Ministty of Planning electt·onics industty's action plan. and Investment, the Ministty of Finance and - Coordinate with the Ministty of Planning line ministt·ies in fo1mulating preferential credit and Investment, the Ministry of Finance policies for the six selected sectors. and other relevant ministties in fo1mulating kl The Ministty of Education and Training incentive and preferential policies to facilitate and the Ministty of Labor, War Invalids and investment in the electt·onics indust1y. Social Affairs shall: © Vietnam Law & Legal Forom Issue nos 04-06/Julv 2013 81 (Cong Bao nos 409-410/Ju/y 13, 2013) - Coordinate with relevant ministries and - To actively promote investment and seek sectors in organizing the implementation of potential investors for Vietnam, select and action plans on human resource training for the share info1mation with ministries, sectors and six selected sectors. relevant pai·ties to se1ve the implementation of - Take pa1t in formulating and implementing the industi·ialization strategy. action plans for the six sectors' development Article 3. This Decision takes effect on the in the industrialization strategy through the date of its signing. working group. Article 4. Ministers, heads of ministerial­ 1/ Other ministiies and sectors and provincial­ level agencies, heads of government-attached level People's Com1nittees shall assume the agencies, chairpersons of provincial-level responsibility for fo1mulating action plans and People's Committees and heads of relevant coordinating with one another in handling issues agencies shall implement this Decision.- relating to proposals put fo1th by the Steering Committee and agencies in charge of the implementation of each sector's action plan. 3. Responsibilities and assistance of the Vietnamese and Japanese Governments a/ Responsibilities and assistance of the Vietnamese Government: - In the course of implementation of the strategic industries' action plans, the Stee1ing Committee will set up task forces in relevant ministries and sectors and instruct the implementation of action plans for the six sectors' development in a consistent manner. - Ministries, sectors and provincial-level People's Committees shall provide and share info1mation, data and statistics necessaiy for the implementation of the industiialization sti·ategy. b/ Responsibilities and support of the Japanese Government: - Japanese relevant ministries commit to actively participating in and assisting the im plementation of the industiialization sti·ategy. - To provide financial suppo1t for conducting surveys and investigations and necessary consultations to serve the implementation of industi"ialization sti·ategy. © Vietnam Law & Legal Fornm