Decision No. 29/2007/QD-BCN approving the planning on industrial development in the Central Viet Nam key economic region up to 2015, with the 2020 vision taken into consideration

4.1. Planning of mechanical engineering and means of transport will be developed inQuangNam, metallurgy while manufacture oftheirpartsandaccessories will © VIETNAM LAW & LEGAL FORUM • 12 OFFICIAL GAZETTE Issue no011Augusl2007 (Cong BaoII0S 522-523IAuguSll, 2007) be developed in Da Nang; - Production of woodarticles forexportandhigh- - Shipbuilding willbe developed in QuangNgai; classwoodproducts for domestic consumption will be developed in BinhDinh and QuangNgaiwith a - Metallurgy will be developed in Quang Ngai network of supporting production establishments and DaNang. based in Da Nang city and Quang Ngai province,

4.2. Planningof agricultural, forest and aquatic andmaterial areas inThuaThien- Hue,QuangNam, product and food pro"".osine industry Quang Ngai and Binh Dinh provinces and the a/ Development viewpoint CentralHighlands. - To concentrate on developing traditional - Production of beverage for domestic products made of local raw materials to meet consumption, tourism, and export to Laos and domestic demands and for export. To attach Cambodia willbe developedin Da Nangand Thua importance to branch and regional links in Thien-Hue. production in ordertoraiseproductivity, qualityand 4.3.Planning of buildingmaterialproduction added val ue. a/ Development viewpoint -Tocombinedevelopment ofagricultural, forest - To develop production of diversified kinds of and aquatic product processing with sustainable common building materials made of local raw development of material sources and assurance of materials to meetthe region's demand. foodhygiene and clean industrial environment. - To invest in technologies and techniques for bl Development targets production of somenew and high-quality building - To slr;ve for lite latgellltat the growth rate of materials in localities withadvantages, concentrating production value in the 2006-2010 and 2011-2015 on exploitation of block stone and processing of periods wiJl be 18.53% and 18.17%, respectively. floor- and wall-covering ashlarfor export. cI Development orientations - The production development and distribution - To attach importance to intensive investment mustsuit natural resources and markets. to raise the technological level of the processing bl Development targets industry and the quality of processed products, - To strivefor the target that the growth rate of especially aquatic andlivestock products, beverage production valuein the 2006-2010 and 2011-2015 and wood furniture; penods will be 22.05% and 19.53%, respectively. -Tointensify research intoanddiversify products - To strivefor the targetthat by 2015,the output and material sources in order to supply sufficient of keyproducts, including cement,floor-and wall- production materials inallcircumstances andreduce covering tiles,ceramic sanitary wareandashlar, will production's dependence on seasons and weather. fullysatisfy the region'sdemandandbe exportedin UI Development planning increasing volumes - Da Nang city and Binh Dinh province will cl Development orientations become centersforproduction offrozenaquatic and •Toconcentrate ondeveloping building materials marine products for export. To develop material inwhich theregion hasadvantages, suchasexploited areas and the preliminary processing of semi- block stone, processed floor- and wall-covering finished products and aquaculture feeds in Thua ashlar. walling and tilingmaterials, buildingstone, Thien - Hue, QuangNgaiand QuangNam. sandandgravel, floor-and wall-covering tilesof all kindsandceramic bricks. ... © VIETNAM LAW I; LEGAL FORUM Issue no01/August 2007 OFFICIAL GAZETTE 13 (Gong Bao nos 522-5231August 1, 2007) - To increase investment in technologies for computers, office equipment, electronic home production of high-class and new products for appliances, communication equipment, etc., and domestic consumption and export. provision of relatedservices, witha viewtomeeting -Togradually replaceexisting cement production 70-85% of the region'sdemand. technologie« with modern technology using rotary c/ Developmenr orientations kilnsand produce baked brickswithtunnel furnace - Toconcentrate on developing groups of hi-tech technology. electronic products and components and color d! Development planning television sets. To attach importance to investment To prioritize development of production of in research into and designing of a number of cementin Thua Thien - Hue, Quang Nam,Quang industrial electronic products combined with Ngai, BinhDinh; floor and wall-covering ashlarin mechanical products to make competitive electro- Da Nang, BinhDinh, QuangNamandQuangNgai; mechanical products for domestic consumption. floorand wall-covering tiles in Thua Thien- Hue, - To develop information technology products, Quang Nam, Quang Ngai and Binh Dinh; color andbuildsomesoftware industry parksandclusters. enamelsfor production of porcelain, ceramic and Toresearch, design andproduce television andradio glazedtilesin Thua Thien - Hue and QuangNgai; receiving and transmitting equipment to meet the building glassin QuangNam;andceramicsanitary needs of districts and provinces in the region and ware in BinhDinh,Quang Nam and Quang Ngai. throughout the country.

4.4. Planning of electro-informatics industry d! Development planning a/ Development viewpoint In the period from now to 2015, to concentrate -Todevelop theelectro-informatics industry into investment in developing Da Nang city into an a spearhead one of the region. electronic-information technology center of the region;to step by step develop a softwareindustry - To combine development of the industry with in Da Nang, Hue and Binh Dinh and a hardware labor distribution and intensified cooperation and industryin the regional provinces. linkage between domestic enterprises and foreign- invested enterprises, especially those possessing 4.5. Planningof chemical industry sourcetechnologies. at Development viewpoint - To apply only modern technologies, and - To develop the chemical industry in order to enhance international cooperation with a view to manufacture sufficient essential products with making the fullest use of capital sources and new competitive edge in the region for the domestic technologies. market and export, such as fertilizers, automobile, bl Development targets motorbike and bicycletires. - To strive for the target that the growthrate of - Tu furm and develop a peuochcmical indusuy production valuein the 2006-2010 and 2011-2015 with modem technologies, with a view to creating periodswillbe 21.81% and 31.58%, respectively. competitive products and contributing to import value reduction and branchrestructuring. - To develop Da Nang into a leading city in software technology development and form a bl Development targets network of cooperative linksbetween Da Nangand - To strive for UIe target that the growth rate uf other regional localities in the manufacture of production value in the 2006-2010 and 2011-2015 © VIETNAM LAW Il< LEGAL FORUM 14 OFFICIAL GAZEITE Issue no 01/Augusl2007 (OOng Sao nos f;22-52SIAugusl 1, 2007) periodswillbe 15.26% and31.80%, respectively. - To intensify the deep processing of minerals; cI Development orientations limitexportof crudeminerals; utilize various types of mineral together and maximize the extraction - To step by step build modem chemical and coefficient of mainminerals, admixed minerals and petrochemical industries, form big production the valueof processed products. groups using advanced technologies capable of turning out competitive products, with a view to - Todevelop mineral exploitation andprocessing meeting domestic demand and expanding export based largely on domesuc resources. In case of markets. necessity, joint ventures involving foreign parties may be established to conductsurvey, exploration - To prioritize development of various chemicals andexploitation of minerals lyingdeepunderground usedfor3g,riculture, highly nutritious ferlitizers, leaf and not yet discovered, which require large fertilizers and microbiological fertilizers, andplant investment capitaland complicated technologies. protection drugs less harmful to the environment andpeople, bl Development targets To ,ati~fy increasing demand for rubber - To strive for the target that the growth rate of products, chemical consumer goods and other production valuein the 2006-2010 and 2011-2015 products for domestic use withnicepackages, high periods willbe 22.38%and 18.77%, respectively. quality and competitive prices. cl Development orientations dt Development planning - To attach importance to sustainable In Thua Thien - Hue, to develop fertilizer, development, effective management of natural domestic useplastic, package, paintandcomposite resources, environmental protection andstabilization production industries, and set up establishments oflaborers' life. processing products from garbage. - Exploitation and processing ...srablishments In Da Nang,todevelop theprocessing of rubber must be associated with markets, close to natural products, fertilizers, industrial gases, fine-art candles, resources and far from classified tourist sites, etc. especially tombs and monuments in Thua Thien - Hue,HoiAn ancienttown,My Son sanctuary, etc. In Quang Nam, to develop microbiological fertilizers, ClU' tires, soaps and synthetic cleansing - To organizefurtherassessment of reserves of substances plastics ofPP, PE, PVC, UPR,etc. potential mines and ore sites, serving as a reliable basisfor investment in exploitation andprocessing In Quang Ngai, to develop the petrochemical of minerals to be usedasrawmaterials fordomestic industry. production andexport. In Binh Dinh, to develop the production of dI Development planning organic, microbiological andNPKfertilizers, some Toexploit gold in QuangNam,titanium ores in ordinary andtechnical rubberproducts. ThuaThien - Hue, Quang Nam, QuangNgai and

4.6. Planning of mineral exploitation and BinhDinh;graphite in QuangNgai; floor- andwall- processing industry covering ashlarandbuilding stoneinThuaThien- aJ Development viewpoint Hue. Quang Narn, Quang Ngai and Binh Dinh; -Todevelop mineral exploitation andprocessing bolin andfeldspar in QuangNamandQuangNgai. based on mineral resource advantages of each 4.7.Planning oftextile, garment, leather andshoe province in the region. production industry • "'"'i~" © VIETNAM LAW & LEGAL FORUM Issue no011August 2007 OFFICIAL GAZETTE 15 (Cong Baa nos 522·5231Augusf 1, 2007) aJ Development viewpoint - Toconcentrate investmentin productionofraw - To invest in development of textile, garment, andauxiliary materials, forma numberof wholesale leather and shoe production in the direction of marketplaces to supplyraw and auxiliary materials specialization and modernization, attaching for the region, gradually reduce the ratioof products importanceto the stagesof designingandmodeling contractually processed for foreign parties and andhigh-class products.Toattachimportance to the increasethe ratio of locallymade products. vigorous development of production of raw - To intensify fashionresearch and designing; to materials, auxiliary materials andaccessories for the expand the systemof department stores, wholesale industry. markets and sale agents; to apply electronic - To develop textile, garment, leather and shoe technologies to transactions, especiallyin exportand production with all resources, especially resources import. of the private sector at home and abroad, thus dJ Developmentplanning contributing to stepping lip the development of " '" Textile and garment: To develop yarn multi-sector economy,formingnew enterprises and production plantsand textilemills in Hue DaNang creatingjobs for laborers. and Quang Narn; to develop garment plants in Da b/Development targets Nang, Quang Ngai and Binh Dinh; to develop Da To strive for the target that the growth rate of Nang and Quang Nam into regional centers for production value in the 2ODfi-2010 and 2011-2015 production of textileand earment raw anA auxiliary periods will be 21.45% and 16.48%, respectively, materials. of which textile and garment, leather and shoes * Leatherand shoes:To developfootwearplants accountfor 18.66%, 16.48%,29.85% and 16.47%, in DaNang, QuangNam and Binh Dinh; to develop respectively. the production of leatherand shoe raw and auxiliary By 2015,domestic production willlargely satisfy materialsin Da Nang. the industry's demand for raw and auxiliary (Thelistofnewmajorindustrial worksto be built materials. is shown in Appendix 1 enclosed herewith) c/ Developmentorientations 4.8. Planningof electric power industry - To develop textile, garment, leather and shoe aJ Developmentviewpoint production in theexport-led direction. Toredistribute - To develop electric power in the Central production forcesin the directionofformingtextile, Vietnam key economic region in line with the garment, leather and shoe production clusters. In cities,urbancenters,majortraffichubsand seaports national electric power development planning, taking into consideration specificconditions of the where people's intellectual level is high and region and ensuringsafe and stable power supply. infrastructure is good, to develop big plants that PlUUUCt: Iashiouable and high-quality productsand -To mobilize and efficiently use all domesticand export products. In residential areas in townships foreigncapitalsources,diversify investmentforms and provincial townsalongmajor roads,to develop for development of power sources.To prioritizethe smaIl- andmedium-sized production establishments developmentof new and renewable energysources thatemploylocallaborers, manufacture products for in deep-lyingand remote areas and islands. domestic consumption and operate as satellites of - To prioritize the building of multi-purpose big plants. hydropowerplantsin the region which helpcombat © VIETNAM LAW & LEGAL FORUM • 16 OFFICIAL GAZETTE Issue no011Augysl 2007 (Gong Bao nos 522-5231August 1, 2007) flood, supply water andeleetrieity to the region and powp,rnp,p,c1s in case rhe growth rate is higher than create backup sources for the national power grid. expected. To synchronously develop power grids - To develop and perfect the regional power grid for all voltages in order to meet the region's power in order to raise the stability and reliability of power consumption needs. supply according to N-l standard, reduce power 4.9. Planning of cottage industries and wastage and create favorable conditions for handicraft transforming the medium-voltage grid into 22kV a/ Development viewpoint one and electrifying rural areas. - To develop cottage industries and handicraft - The power grid plan must be forward-looking on the basis of traditional crafts and trades with and highly flexible, ensuring safe and stable power labor and natural resource advantages in the supply and power quality (voltage and frequency) region, attaching importance to currently m service of socio-economic development of the urbanized rural areas where agricultural land areas region, especially Hue, Da Nang, Dung Quat and are converted into industrial land areas, Quy Nhon cities as well as export processing zones contributing to agricultural and rural and industrial parks. industrialization and modernization. bl Devolopment targets - To combine cottage industry and handicraft - To ensure sufficient power supply to meet the development with environmental and ecological needs of the region's production and people's daily protection. To harmoniously combine new life, raise the power supply reliability and voltage technologies with traditional ones, production stability, and attach importance to central areas, with tourism and other services. industrial parks and export processing zones. bl Development targets - In Iht" ?OOI'i-?.o1 0 period, to strive for a power To strive for the target that the growth rate of growth rate of around 22%/year and an output production value in the 2006-2010 and 2011-2015 growth rate of 19.3%. In the 2011-2015 and 2016- periods will be 14.84% and 11.23%, respectively. 2020 penods, the power growth rate and output c/ Development orientations growth rate will be 17.3%-16% and 14.5%-13.1%, respectively. - Cottage industries and handicraft must be developed in line with the socio-economic c/Development planning development planning, and associated with the The regional power development planning embellishment of regional rural areas, must be 111 line with the national power development of commerce and service and development planning for the 2006-2015 period, effective settlement of environmental issues. with the 2025 vision taken into account, and based - To prioritize the development of traditional on the regional provinces' plannings on power crafts and trades and the creation of new ones, development up to 2015. By 2015, twelve new production of export goods, and processing of hydropower plants with a total output of some agricultural products and foodstuffs as well as 1,450 MW will be built in the region. These plants other handicrafts. and other small ones will bring the total source output to some 1,560 MW. To expeditiously plan - To attach importance to investment in areas for development of more coal-fired thermal advanced and modern technologies combined power plants, with a view to meeting the region's with traditional technologies to raise the quality © VIETNAM LAW & LEGAL FORUM Issue no011Augusl 2007 OFFICIAL GAZETTE 17 (Cong Bao nos522-5231August I, 2007) and diversify model designs of products capable consumption, tourist and export demands. of showing the national cultural identity. 4.10. Planning on distribution of industrial - To form a number of cultural and tourist parks villages where industrial products, cottage aI Planning viewpoint industry and handicraft articles are marketed. - To concentrate efforts on attracting d/ Development planning investment in existing industrial parks and - To develop pottery production in Phuoc Tich clusters in order to fill up their ground areas. to supply interior and exterior decoration pottery Extensive or new investment is allowed to be articles for refurbishment of historical relics; made only when more than 75% of ground areas production of mirror paintings in Bao Vinh ancient uf these industrial parks and clusters are occupted. town; bronze casting in Thua Thien - Hue; - To form some specialized industria l parks for bamboo wickerwork production in Bao La and electronics. informatics or chemical production, Thuy Lap of Quang Dien district and fine-art and some hi-tech parks. wood articles in My Xuyen and Phong Dien; zeng weaving in A Luoi. - To invest in industrial park and cluster infrastructure with all capital sources, especially - To plan the building of the aluminum and capital from enterprises, in order to attract bronze casting village of Phuoc Kieu in Quang investors. Nam province Into a model craft village where a commercial zune for display, advertisement and bl Planning targets sale of handicrafts will be formed. In the period from now to 2015 and .2020, to - To develop mulberry growing and silk worm expand existing industrial parks and clusters and rearing in Dong Yen (Quang Nam) for the build new ones on a total land area of some 22,000 production of high clans silk. hectares. - To revitalize and develop rattan and bamboo cl Planning orientations wickerwork in Tarn Vinh (phu Ninh) and Duy Son - To form links between industrial parks within (Duy Xu yen) in Quang Nam province with such big economic zones as Chan Mav - Lang financial supports of the United Nations Industrial Co, Chu Lai, Dung Quat and Nhon Hoi in order Development Organization (UNIDG) and the to step up the development of industries capable. United Nations Educational, Scientific and of bringing into full play their competatve edges Cultural Organization (UNESCO). and boosting export, including port service, sea - To develop the production of fine-art transportation, processing uf export goods, stonework in Non Nuoc (Da Nang); to promote electric and electronic industry, production of commercial activities to seek outlets for these building materials, assembly mechanical products. engineering, consumer goods production, petrochemical and chemical industries, etc. - To invest in the development of Bau Da liquor product (Binh Dinh) fur supply tu tll" region's In which: market and export. - In Chan May - Lang Co industrial park (Thua - To concentrate on developing fine-art wood Thien - Hue): To develop port services, sea articles in An Nhon to satisfy domestic transportation and export processing. © VIETNAM LAW & LEGAL FORUM • 18 OFFICIAL GAZETTE Issue nQ OjlAygust 2007 (Gong sac nos 522·523/August 1,2007) - In Tam Hiep industrial park (Quang Nam): To period will be VND 131,039 billion, of which develop the electronic industry and precision VND 98,539 billion will be for industries, VND assembly mechanical engineering; processing of 28,500 billion for industrial park infrastructure agricultural, forest and aquatic products; and and some VND 4,000 billion for power and water consumer goods production. supply (for medium and low-voltage power grids - In Northern Chu Lai industrial park (Quang only). Nam): To develop assembly mechanical - Expected mobilization of capital sources: engineering, daily-life power supply, electric and aI Domestic capital will account for 57-67% of building material production. garment industry and the total capital and include budget capital (12-14%). consumer goods production. credit loans (14-16%),joint-venture and association - In Tam Thang industrial park (Quang Nam): capital contributed by enterprises (9-10%), and To develop building material production, leather capital raised on the securities market and other and shoe industry, garment industry, and assembly capital sources (22-24%). of electric, electronic and refrigeration appliances. bl Foreign capital will account for 33-43% of - Inthe eastern industrial park (Quang Ngail: To the total capital and include preferential loans (10- develop petrochemical and chemical industries, 12%) and FDI capital (23-31%). shipbuilding, steel metallurgy and rolling, cement 6. Solutions and policies production, heavy equipment manufacture, automobile assembly and port services. 6.1. Major solutions - The western industrial park: (Quang Ngal) is a aJ Management organization solutions light industrv park for building material production, - To step by step form clusters of interlinked repair mechanical engineering, processing of enterprises, including production enterprises, agricultural and aquatic products, textile and garment industrial service establishments, training product, consumer goods and export goods establishments, research and development production electric and electronic appliance establishments, establishments supplying raw manufacture establishments; and providing materials or providing warehouses and storing yards, warehouses and storing yards. etc. - In Nhon Hoi industrial park (Birth Diuh): To - To form a number of specialized industrial develop petrochemical, shipbuilding, mechanical parks, hi-tech parks, subsidiary industry parks and engineering electronic, automobile assembly, textile centers supplying special-use raw and auxiliary and garment industries. materials. To form a number of urban - industrial- service bl Capital solutions centers in SOllthern Central Vietnam surrounding . The state budget capital will be invested in Chu Lai, Dung Quat, Nhon Hoi and Van Phong infrastructure building so that by 2010 major (Khanh Hoa) open economic zones. infrastructure works will be completed to facilitate (I'he hst of mdustrial parks and zones is shown the achieveruent uf strategic socio-economic in Appendix 2 enclosed herewith). development targets of localities in the region. Part of this capital source will be used to support 5. Investment capital needs investment in SCI entitle and technological research - Investment capital needed for the 2006-2015 and renewal and human resource training and © VIETNAM LAW & LEGAL FORUM Issue no01fAugusl 2007 OFFICIAL GAZETIE 19 (Gong Bao nos 522-523IAvgusf 1, 2007) development. engineering, electronics, information technology, - To give economic sectors and enterprises production of new materials, for industrial parks, priority access to loans for investment in the key industrial projects and new occupations and development of production and business domains trades. To attach importance to job training to encouraged by the State, build a contingent of skilled technical workers and professional staffs capable of mastering and - To mobilize and efficiently use all capital using modern technical equipment and sources for development investment, attaching technologies. To organize retraining for technical importance to capital sources of enterprises, from workers and managerial officers, gradually raising the securities market or equitization of enterprises, training quality up to that of countries in the region FDIcapital and borrowed capital. To integrate capital and the world. sources to ensure use efficiency. - To socialize job training in order to attract all - To encourage the establishment of new resources 8Utl diversify training forms. To enterprises and production mvestment by individuals consolidate and invest in the development of through simplifying establishment procedures and technical workers' training schools and job facilitating access to production grounds, capital training schools in the region's provinces. sources and information. - To adopt policies to encourage enterprises cI Land solutions and localities to organize correspondence or on- - To make rational and effective land use plans, spot training courses for their human resources especially for use of land of industrial parks. and job training courses for rural inhabitants, - To adopt active and coordinated measures and fl Environmental protection soluttens policies for ground clearance and resettlement for - To enforce legal provisions on assessment of projects, ensuring their construction schedules. environmental impacts of projects and strategic d/ Technology solutions environmental assessment of plannings. - To encourage enterprises to set up scientific - To reserve sufficient resources for Investment and technological development funds, actively in projects on environmental protection and waste apply new scientific and technical advances to treatment in plants and industrial parks. To production under the guideline that technological encourage enterprises to increase accu mutative renewal in each part or stage should be carried funds and create capital sources in SUppNl of out before technological renewal of the whole environmental protection. production chain. - To adequately conduct monitoring, - To develop a scientific and technological observation, measurement and management of information system in service of technological environmental criteria; to inspect enterprises in research and renewal in industrial enterprises in the the observance of environmental protection region. To combine research and development regulations. activities of research institutes with activities of enterprises. 6.2. Major policies eI Human resource solutions a/ Market policies - To concentrate on training human resources - To formulate synchronous policies nn for key industries, such as mechanical demand stimulation and expansion of outlets for © VIETNAM LAW & LEGAL FORUM , 20 OFFICIAL GAZETTE Issue no01/August 2007 (C6ng Baonos522-523/August 1, 2007) industrial products in rural areas. infrastructure, first of all power, water and traffic - To expand and improve trade promotion and infrastructure. market information in order to help enterprises - The localities in the region will set aside 0.5- expand tlll"il markets and raise production and 1% of total revenues of their budgets for industrial business efficiency. extension. - To further improve the legal framework on dI Financial and tax policies commerce in order to prevent trade frauds - To create favorable conditions for all types of (manufacturing counterfeit or imitation goods, enterprises to get an equal and quick access to smuggling), breaches of international commercial financial sources. To adopt a mechanism to actively rules on subsidies and dumping, acts of unfair support scientific and technological activities, the competition; and raise consumers' sense of law foundingof newenterprisesand marketing activities observance and enhance the role of the society of small- and medium-Sizedenterpnses. for protection of consumers. - Each locality should publicize land rent - To enhance the role of goods line associations brackets applicable to different areas. helping in conducting trade promotion, market investors select appropriate areas to invest; to development and providing assistance for publicize tariffs according to WTO commitments enterprises in the region. for enterprises to take the initiative in devising - To further step up administrative reforms with implementation measures. a view to reducing inconveniences and expenses - To flexibly use tax and charge tools in for enterprises and contributing to raising the compliance with international economic competiti veness of industrial products. integration commitments so as to promote fair hi Investment promotion policies competition and rationally protect some industrial - 10promulgate alist of industrialprojectscalling products, for investment in each period for investors to make e/ Scientific and technological policies appropriate Investment plans. • To adopt policies on provision of support - To implement and concretize policies on funds for technological renewal, transfer or development of priority industries and spearhead purchase of designs. and human resource training, industries In the region. - To form a number of strong research and - To ehcourage conglomerates and big development centers capable of supplying corporations at home and abroad to invest in hi- information and providing consultancy on transfer tech industries and sectors, and big projects using of advanced technologies to industrial enterprises advanced technologies in diversified investment in the region. forms. - To adopt policies on provision of financial cl Capital mobilization policies supports for setting up and development of a -Toapply the policyon raisinginvestmentcapital technology market, manufacture of hi-tech throughfinancialleasing,especiallyfinancialleasing products and initial trial products resulted from of foreign organizations. researches. - To apply the policy on mobilization of advance - Localities will consider and set aside part of capital from customers for investment in their budgets to support scientific and © VIETNAM LAW & LEGAL FORUM Issue no011August 2007 OFFICIAL GAZETTE 21 (C6ng Baa nos 522-523/August 1, 2007) technological activities, research, development concerned ministries and branches and the People's and application of new technologies, scientific Committees of the provincesin the Central Vietnam research programs and subjects, application of key economicregion in, implementingthis planning utility solutions. and effectively participating in activities of the - To adopt preferential policies related to Steering Committee for coordinated development dwelling houses, travel, working conditions, of key economic regions headed by a Deputy Prime salaries and allowances to attract experienced Minister. managerial officers, leading scientists and 2. The Ministries of Planning and Investment, technical experts and highly skilled workers to Finance, Agriculture and Rural Development, work in the region. Construction. Trade. Science and Technology, f/ Policies on development of raw material Natural Resources and Environment, and areas Transport, and the State Bank shall, within the ambit of their functions, coordinate with the - To encourage the formation of appropriate Ministry of Industry in applying solutions and links between producers and material suppliers policies mentioned in this Decision. on the basis of interest harmonization, with a view to developing raw material areas and stabilizing 3. The People's Committees of the provinces in supply sources. the CentralVietnam keyeconomic regionshalldirect - Localities and enterprises shall adopt provincial Industry Services in: mechanisms of providing supports to raw material - Perfectingplannings on industrial development growers in terms of seeds and applied technical in each province or city in line with the general advances for intensive farming, plant and animal planning of the region. tending, harvesting, preliminary processing, - Coordinating with state managementagencies preservation and posr-ltarvesttransportation, in order and enterprises in implementing projects to raise the quality of raw materials and production efficiency. - Incorporating the contents furthering the regional industrialplanning in their annual and five- g/ Policies on training and use of laborers year plans (up to 2015) and submitting them to the - To adopt policies to attract intellectuals, Ministry of Industry for summing up and balance. experts and skilled workers to work in the region's localities. Enterprises should set aside funds for Anicle3.-ThisDecision takes effect IS days after sending talented young cadres to attend training its publication in "eONG BAa." in developed countries. To implement policies on recruiting employees through exams, and Article4.- Ministers, heads of ministerial-level arranging qualified personnel in suitable agencies and government-attached agencies, positions. To gradually shift from appointment of presidents of People's Committees of the enterprise directors to signing labor contracts with provinces in the Central Vietnam key economic them. region. and concerned agencies shall implement this Decision. Arlicle 2.- Organization of implementation 1. The Ministry of Industry shall assume the Minister ojIndustry prime responsibility for, and coordinate with HOANGTRUNG HAl © VIETNAM LAW & LEGAL FORUM - Appendix J ~ ,I, .,,:.\.... LIST OF MAJOR INVESTMENT PROJECTS OF DIFFERENT INDUSTRIES IN THE CENTRAL VIETNAM KEY ECONOMIC REGlON UP TO 2015, WIlH TIlE 2020 VISION TAKEN INTO CONSIDERATION (Prom"fgcMi rogefherwith Decision No. 2912007/QD BeN ofJuly 11, 2007) A. MECHANICAL ENGINEERING AND METALLURGY Location Investment capital (VND Name of project Design capacity (province, city, billion) No. Capital source Duration (in the whole region) district or industrial park) 2006 - 2010 2011 - 2015 2006-2010 2011 - 2015 I Industrial valve production plant QuangNgai 10,000 500 Own capital + 2006 - 2010 ton&'~ear loan capital 00 2 Petroleum equipment Dung Quat - 50,000 1,000 Own capital + 2011- 2015 manufacture and repair industrial park tons/year loan capital o"T1 "TI 3 Expansion of Dung Quat Dung Quat Two Two 600 600 Own capital + 2006 - 2015 c=; shipyard industrial park lOO,COO- 100,000- loan capital 5> r- DWT DWT ~ ships/year ships/year 4 DOOSAN heavy industry Dung Quat USD 160 USD 100 Loan capital + 2006 - 2015 :-; project economic zone million million joint-venture =I m (Quang Ngai) capital 5 Dung Quat steel cast blast- Dung Quat 2 million 2 million USD1.5 Own capital + 2006 - 2010 I furnace factory (Tycoons group: industrial park tons/year tons/year billion loan capital (') (Quang Ngai) l 6 Steel casting and rolling for Dung Quat - 150,000 650 Own capital + 2011 - 2015 ~ o man ufacture of big pacts of ships industrial park tons/year loan capital g 7 Building of a center for research Thu. Thien- 100 Own capital + 2006 - 2010 fG 1\5 and production of automation Hue loan capital ~ liii software ~ 8 Building of a center for development of electro- mechanical technologies and Da Nang 200 Own capital + loan capital 2011 - 2015 f products 8 -:::! B. AGRICULTURAL PRODUCT ANDFOOD PROCESSING ANDBEVERAGE INDUSTRY "g <5 OJ Location lnvestment capital (VND §. Name of project (province, Design capacity billion) g No. city, district Capital source Duration ~IC (in the whole region) or industrial 2006 - 2010 2011 - 2015 2006- 2010 2011- 2015 Rl park) ~ 1 Export aquatic product processing plant BinhDinh 5,000 tons/year 10,000 tons/year 50 SO Own capital + loan capital 2006 - 2015 i- 2 Building of an expert Quang Ngai - 5,000 SO Own capital + 2011 - 2015 § .::::! aquatic product tons/year loan capital !i)] processing plant 3 Building of a cluster of Quang Ngai - 100,000 3/year 50 Own capital + 2011 - 2015 o"T1 plants processing high- m loan capital "T1 class wood products for n domestic consumption i> .-- Quang Ngai - 100,000 1,000 Loan capital + ~ 4 Building of a paper pulp 2011 - 2015 processing plant tons/year loan capial m 5 lncrease of capacity of Hue beer factorv Thua Thien- Hue 100 million liters/year - 500 Own capital + loan caoital 2006 - 2010 ::t m 6 Building of Phu Bai Phu Bai 50 million 100 million 600 600 Own capital + 2006 - 2015 beer factory industrial liters/year liters/year loan capital park (Thua Thien -Hue) 7 Da Nang dairy HoaKhanh 70 - 100 - 250 Own capital + 2006 - 2010 processing factory industrial million loan capital (Vinamilk) park (Da liters/year Nang) 8 Sai Gon beer factory QuangPhu IQO million I 1,200 Own capital + I 2006 - 2010 I industrial lite Isfyear loan capital • park, Quang Ngai ! ts , C. CHEMJCAL,RUBBER ANDPLASTIC INl>USTRY Location (province, Design caeacitv Investment capital (VND ~ Name of project bi!lion) No. city~ districtor Capital source Duration (in the whole region) industrial park) 2006 - 2010 2011 - 2015 2006· 2010 20ll - 2015 Projects on production of fertilizers of all kinds 1 Investment in a DaNang 1,200 VND87 Loan capital 2006 - 2QtO microbiological organic tons/year billion fertilizer processing facrorv ~ 2 NPK fertilizer factory Tinh Pbong -Quang 50,000 USD 6 Dillion Loan capital 2011 - 2Q15 Nzai tons/veer o"Tl "Tl Projects on production of paints and anti-permeation materials n ):> 1 Building of a new paint, DaNang 10,090 USD20 Calling for 2006·2Q1O r- varnish andanti- permeation material tons/year million investmentcapital ~ ".: factorv S m 2 Industrial and seagoing Dung Quat - Quang 10,000 29,000 USD 12 USD 8 million Calling for 2006 - 2Q15 shin naint factorv Naai tons/vear tons/vear million investment caoical Projects on factories manufacturing plastic products of all kinds ~ 1 Factory manufacturing Chan May industrial 80,000 USD 10 Calling for 2006 - 2QI0 ~ plastic molding and park (phu Bai tons/year million investmentcapital g modelling equipment industrial park) f(; l\j Tbua Thien - Hue ~ Factory manufacturing Chan May industrial 5,000 tons USD 3-5 Foreign 2006 - 2lilO ~ 2 <§ plastic and composite park (Thua Thien- of million investment capital !a products Hue) product/yea r ~ 3 Factory manufacturing DaNang VND 80 billion Joint venture 2006 - 2010 Q 0, high-class packages (of (joint-stock) <5 multi-layer composite ~ o membranes) g 4 Factory manufacturing Dung Quat, Quang 1,000 USD 15 Joint 'Venture 2011-2015 ~ '}' automobile plastic Ngai tons/year million capital Rl components and parts ~ <5 Projects on factories manufacturing rubber products & I Modem factory manufacturing Da Nang 2-3 million sets/year VND 1,500 billion CalliJg for investment 2006 - 2010 g -::; aulomobile tires and capital ~ inr:er tubes 2 mil.ion Joint 'Venture 2 Joint venture Nhon Hoi - Bi:Ih VND 800 2011-2015 o"'T1 manufacturing Dinh sets/year billion "'T1 automobiletires and (") inner tubes » r 3 Factory manufacturing Nbon Hoi - Binh 3,000 VND30 Loan capital 2011 - 2015 Gl rubber consumer goods Dinh tons/year billion ~ m and medical =1 -. instruments m Projectson productionof cleansing substances I Chemicaland cosmetic Chan May 10,000 USD5-IO Foreign 2006 - 2010 production plant industrial park - products Iyear million investment Thuz Thien -Hue capital 2 Industrial cleansing Dung Quat - Quang 80,DJ0 VND 100 Calling for 2011-2015 substance production Ngai tons/year billion investment plant capital Projects on oil refinery and petrochemical products I Oil refinery No_ 1 Dung Quat - Quang 05 million USD2,50~ Vietnam Oil 2006 - 2010 • Ngai tons/year million (VND and Gas 40,000 billion) Corporation t: , 2 Polypropylene factory Dung Quat - Quang Nllai U5,OOO tons/year USD [54.1 million Joint-venture 2006 -2010 ~ (VND2,400 billion) 3 PP plastic factory Dung Quat - Quang 150,000 USD200 Joint-venture 2006 -2010 Ngai tens/year million 4 FE production factor! Dung Quat - Quang 350,000 USD320 Foreign 2006 -2010 Ngai tens/year million investment Projects on base chemicals ~ I Industrial gas Da Nang VND 150 Call.ng for 2006 -2010 processing plant billion investment a"T1 2 Adhesive production DaNang VND75 Call:ng for 2006 -2010 "T1 ("') plant billion investment » r 3 Industrial alcohol Chu Lai - Quang USD 15 Arnasia Vietnam 2006 -2010 G'> production plant Nam million Company (US) ~ m 4 Soda production plant Nui Thanh - Quang 20,000 VND500 2011 -2015 -I -I Nam tons/year billion m Projects on phannaco-chemical products I Materia medica 350-400 USD 10 Call:ng for 2011-2015 00> extraction and semi- tons/year million investment eEl ~ synthetic chemical 0 :> 0 plant '" ~ 1;;;- 2 Intensive investment in a plant producing BinhDinh 1.2 million products/ye 1.7 million products/year VND30 billion VND20 billion Calling for investment 2006 -2015 '", '"c::: ~ ~ medicines of all kinds ar '2!Q 3 Infusion fluid BinhDinh 20,000 25,000 VND 120 VND30 Callmg for 2006 -2015 :-" ~ I'" production plant bottles/year bottles/year billion billion investment Cl <:> ..:::::!~ D. MINERAL EXPLOITATION AND PROCESSING INDUSTRY () len 0, Investment capital (VNI; .g "lame of project Design capacity <xl No. Location billion) Capital source Duration ~' ::> 2006 - 2010 2011 - 2015 2006-2010 :011 - 2015 &l I 2 Titaniu:n ore mining in two big mires of Quang Ngan and Ke SUm! Investment in expansion and Thua Thien- Hue Quang Nam 1.2 million tons/year I ton of 1.3 million tons/year 120 100 20 50 Own capital + loan capital Own capital + 2006 - 2015 2011- 2015 Rl '" -g 'I\j ~-.. <5 " r N increase of gold Dining output goldfyear loan capital ~ c-- of Bong Mieu and Phuoc Dat rc C> mines C> .::::! 3 Investment in exploitation of QuangNam EO 20 Own capital + 2011 - 2015 !i! limestone, cement clay and loan capital coal mine of Non. Son 4 Investment in exploitation of Binh Dinh 200.000 250,000 100 10 Own capital + 2006 - 2015 .,., o .,., floor-and wall-covering m'/year m'/year loan capial (') I granite in N ui Dung, An Tuong, An Nhon and Canh sr- ~ Vinh 5 Investment in expansion of Quang Nam. I million 1.2 million 300 120 Own capital + 2006 -2015 I m titanium ore mining Quang Ngai, tons tons loan capital establishments Binh Dinh ~ m ".' E. TEXTILE, GARMENT, LEATHER ANDSHOE INDUSTRY Location Investment capita: (VND Design capacity (province, billion) Name of project No. city, district or Capital source Duration (in the whole region) industrial 2006- 2010 2011 - 2015 2006-2GIO 2011 - 2015 I park) I I. TEXTILE AND GARMENT ! I Investment in building HoaKhanh 1.300 500 Joint-ventures 2006 - andexpansion ofmodem ndllli1"lai Part: between the Vietnan 2007 and I textile rod garment -DaNang National Textile and 2011 - industry clusters GarmentCorporation 2012 I I and the US ~ , 2 Investment in building and expansion of yarn and QuangNam 500 500 The Vietnam National Textile and Garment 2006 - 2008 and 20:1 - 2012 til fabric plants in Quang Nam Corporation 3 Building of six new big Da Nang, 20 million 200 Own capital + 2006 - 2007 garment plants Quang Nam, products loan capital QuangNgai 4 Building of 3-4 new DaNang, 30 million 300 Own capital + 2011 - 2012 garment plants QuangNam, products loan capital M QuangNgai II. LEATHER AND SHOE a"TI "TI Investment in building and DaNang 40 40 2006 - 2007 es 1 expansion of a plant and 2011 - » r- ~ producing raw and 2012 auxiliary materials for m I leather and shoe industry ! ~ '.; I m (shoe soles, shoe forms, , spongy and VA foam rubber) '§ The regional 10 million 10 million 300 300 Own capital + 2006 - 2012 <5 2 Investment in around 10 new shoe production provinces pairs pairs loan capital ~ chains in the regional g , Rl provinces 'l' RJ ~ 3 Investment in building and The regional 2 million 2 million 50 40 Own capital + : 2006 - 2007 :» <5 products provinces - raising of capacity of 5 products loan capital I §. I briefcase, bag, suitcase production establishments I I g .::::l Issue no 01/Augusl 2007 OFFICIAL GAZETIE 29 (Gong Baa nos 522-5231August 1, 2007)

Appendix 2 LIST OF INDUSTRIAL PARKS AND CLUSTERS TO BE BUILT AND EXPANDED UP TO 2015 (Promulgated together with Decision No. 29/2007/QD-BCN ofJuly 11, 2007) No. Industrial park Area (ha) Location 1 Phu Rai 1 industrial park (old, 300 Huong Thuy, Thua Thien - Hue including phases I, 2 and 3) 2 Phu Bai 2 industrial park (expanded, 600 " phase 4) 3 Chan May I industrial park 398 Chan May - Lang Co economic zone 4 Chan May 2 industrial park 346 " 5 Chan May 3 industrial park 164 " 6 Tu Ha industrial park 300 Huang Tra, Thua Thien - Hue 7 Phong Dien industrial park 400 Phong Dien, Thua Thien - Hue 8 28 industrial clusters and centers and 4 1,427 Hue city and Huang Tra, Huang Thuy, industrial clusters in craft villages in Phu Vang, Huang Dien, Phong Dien, districts of Thua Thien - Hue Phu Loc, Quang Dien, Nam Dong and A Luoi districts of Thua Thien - Hue 9 Total planned land area of industrial 1,357 parks of Da Nang, including Hoa Khanh, expanded Hoa Khanh, Da Nang, Lien Chieu, Boa Cam, Da Nang fishery service, and Thanh Vinh 10 Hoa Khanh industrial park expanded to 110 Lien Chieu district, Da Nang north-west 11 Hoa Khuong industrial park 400 Hoa Khuong, Hoa Vang, Da Nang 12 Hoa Minh industrial park 200 Hoa Minh, Hoa Vang, Da Nang 13 6 industrial clusters in some districts of 316 Hoa Vang, Ngu Hanh Son, Thanh DaNang Khe, Lien Chieu and Son Tra districts, DaNang 14 Dien Nam - Dien Ngoc industrial park 418 Dien Ban district, Quang Nam 15 Thuan Yen industrial park 130 Tam Ky, Quang Nam 16 Tam Hiep industrial park 120 Nui Thanh district, Quang Nam 17 Northern Chu Lai industrial park 120 Nui Thanh district, Quang Nam 18 Tam Thang industrial park 292 Thang Binh district, Quang Nam 19 Eastern Que Son industrial park 381 Que Son district, Quang Nam 'LV An Hoa - Nang Son industrial park 300 Duy Xuyen, Quang Narn 21 Phu My Xuan industrial park 550 Phu Ninh district, Quang Nam 22 Phu Xuan industrial park (phase I) 350 Phu Ninh district, Quang Nam © VIETNAM LAW & LEGAL FORUM • 30 OFFICIAL GAZETTE Issue noOt/August 2007 (Gong Bilo nos 522-5231August 1, 2007) 23 157 industrial clusters in districts of 3,096 Tay Giang, Dong Giang, Nam Giang, Dai QuangNam Loc, Que Son, Phuoc Son, Nam Tra My, Hiep Phuoc, Tien Phuoe, Dien Ban, Duy Xuyen, Hoi An, Thang Binh, Tam Ky, Phu Ninh and Nui Thanh, Ouanz Nam 24 Eastern industrial park (Dung Quat 5,054 Dung Quat economic zone - Quang Ngai economic zonel _ _ ~__ ___ - 25 Western industrial park (Dung Quat 2,100 Dung Quat economiczone economic zone) 26 Tinh Phon" industrial Dark 350 Ouane N2ai 27 Ouanz Phu industrial nark 147 To the west of Ouans Nzai town 28 PhD Phone industrial nark 138 Due Pho Ouanz Nzai 29 Industrial nark to the west of Son Tinh 80 Ouanz Neai 30 Industrial clusters (total investment 25 Quang Ngai town and Nghia Hanh district capital of VND 300 billion) in some districts of Ouana Nzai 31 Phu Tai industrial nark 348 Ouv Nhon citv, Binh Dinh 32 Long Mv industrial Dark 210 Quv Nhon citv, Binh Dinh 33 Nhon Hoa industrial nark 272 An Nhon, Binh Dinh 34 Binh Nshi industrial Dark 150 BinhDinh 35 Nhon Hoi industrial nark 1,077 Binh Dinh 36 Hoa Hoi industrial Dark 300 Cal Hanh, Phu Cal, Binh Dinh 37 Cat Khanh industrial nark 150 Phu Cat, Bmh Dinh ~ Bong Son industrial nark 100 Hoai Nhon, Binh Dinh 39 33 industrial clusters in districts of 670 In districts and cities Binh Dinh Planned total laud area (ha) of 16,476 industrial narks un to 2015 Planned total land area (ha) of 5,534 industrial clusters un to lUl:1 Expected investment capital (VND 23,000 ~~ .~ billion) in industrial narks uo to 2015 Expected investment capital (VND 5,500 billion) in industrial clusters up to 2015 -- ----- Total land area (ha) for building 22,010 industrial parks and clusters up to 2015 Total investmentcapital (VND billion) 28,500 in industrial parks and clusters up to 2015 © VIETNAM LAW & LEGAL FORUM