DECISION No. 148/2004/QD-TTg OF AUGUST 13, 2004 ON MAJOR ORIENTATIONS FOR SOCIO-ECONOMIC DEVELOPMENT OF THE CENTRAL VIETNAM KEY ECONOMIC REGION TILL 2010, WITH A VISION TO 2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

At the proposal of the Minister of Planning and Investment in Official Dispatch No. 7349/ BKH-CLPT of December 1, 2003,

DECIDES:

Article 1: To approve the major orientations for socio-economic development of the Central Vietnam key economic development of the Central Vietnam key economic region till 2010, with a vision to 2020, to be materialized in 5 provinces and centrally-run cities, including Da Nang city, Thua Thien Hue, Quang Nam, Quang Ngai and Binh Dinh provinces, in order to bring into play the region’s potentials, geographical position and comparative advantages, step by step develop the Central Vietnam key economic region into one of the country’s dynamically developing regions, and ensure its role as the growth nucleus and booster of development of Central Vietnam and the Central Highlands.

Article 2: Major development objectives

1. To attain an annual GDP growth rate of 1.2 times and 1.25 times the national average GDP growth rate in the 2006-2010 and 2011-2020 periods respectively. To increase the region’s contribution to the national GDP from the current 5% to around 5.5% by 2010 and 6.5% by 2020.

2. To increase the average per-capita annual export value from USD 149 in 2005 to USD 375 by 2010 and USD 2,530 by 2020.

3. To raise the percentage of the region’s contribution to the national budget revenues from 4.6% in 2005 to 6% by 2010 and 7% by 2020.

4. To speed up the technological renewal at an average rate of 20% year in the modernization process, and to gradually raise the percentage of trained laborers to around 50% by 2010.

5. To strive for the urbanization rate of 40% by 2010 in the Central Vietnam key economic region. To reduce the unemployment rate to 5% and continue controlling it below the permitted safety rate of 4% by 2020, striving to create more than 60-70 thousand jobs a year.

6. To reduce the percentage of poor households from 15.5 % in 2005 to under 8.8% by 2010 and around 2% by 2020.

7. To ensure the political security, social order and sustainable environment in urban and rural areas.

Article 3: Tasks and major solutions to promote the development of key branches and fields

1. New breakthrough tasks

- To speed up investment in the contruction of Chu Lai open economic zone (Quang Nam province), Dung Quat economic zone (Quang Ngai province) and Chan May economic commercial development promotion zone (Thua Thien Hue province), and to plan the construction of Nhon Hoi economic zones can gradually become the region’s development nuclei and centers after 2010.

- To promote the role of Da Nang, Hue and Quy Nhon cities as commercial, service and international transaction centers to assume the commercial, service and transaction functions as well as the role of a tourist center of the whole Central Vietnam and the Central Highlands.

- To form tourists centers of Hue, Da Nang, Quy Nhon and in the adjoining areas of the Central Vietnam and the Central Highlands.

- To complete the construction of large infrastructure works to link the region to its vicinities, thus contributing to the execution of the East-West corridor program of the greater Mekong sub-region for developing the border triangle of Vietnam, Laos and Cambodia; in which Da Nang city shall play the role as the region’s central point. To complete the construction of Hai Van mountain pass tunnel and the western bypass running through Hue city; to complete before 2007 two expressway of Da nang – Chu Lai-Quang Ngai and Da Nang – Hue – Quang Tri (in the North-South Highway).

- To form a high-quality multi – branch training center in Hue city.

For Da Nang city: to step by step invest in the construction and development of Da Nang city into a seaside city – the center of the Central Vietnam with the population of around 1 million by 2010 and around 2 million by 2020, and assigned with such basic tasks as: playing the role as an industrial, commercial, tourist and service center of the Central Vietnam; a port city and an important traffic hub (seaports, international airports, trans-Vietnam and trans-Asia transport) for transit and international transport in Central Vietnam, the Central Highlands and countries in the Mekong river basin; building the industrial nursery (research into technical and technological innovations for industrial enterprises), and a financial, banking, securities post and telecommunications center of Central Vietnam; becoming one of the cultural, educational, training, scientific and technological centers of Central Vietnam, and one of the geographical areas of security and defense importance of Central Vietnam, the Central Highlands and the whole country.

Besides Da Nang city, investment shall also be made in the development of other urban centers, such as Hue city into a festival city, Quy Nhon city into the central urban center to the south of the region, and Hoi An, Tam Ky and Quang Ngai urban areas into modern and civilized urban centers.

For Chu Lai open economic zone (Quang Nam province): To build and develop it in order to experiment the new institutions and policies, create an investment environment compatible with the international practices for various business forms of domestic and foreign economic organizations, thereby gathering more experience for international and regional economic integration.

To apply new motive force models to the economic development, remedy weakness and remove obstacles in the current economic management policies and mechanism before conditions allow the nationwide application thereof.

To develop Chu Lai open economic zone after the model of ‘zone in zone”, including the following man sub-zones: The free trade zone associated to a part of Ky Ha port, with activities of production of export goods and goods for on spot services, commodity commerce, service and trade promotion activities; industrial parks, special entertainment areas, tourist areas, administrative population quarters.

For Dung Quat economic zone (Quang Ngai provine): To ensure the efficient operation of the oil refinery and petrochemical complex and completion of basic infrastructure works on the planned land area of 10,300 hectares.

To step up the formation and development of this economic zone to serve as a motive force for the industrialization and modernization of Central Vietnam and the whole country. To build and develop Dung Quat economic zone into a multi-branch general economic zone enjoying the preferential and incentive policies in stable and long – term manner, create favorable conditions for domestic and foreign investors to invest their capital in production and business development within the current legal framework, which shall be further and further improved. To develop oil refinery – petrochemical – chemical industries. To step by step develop industries of mechanical engineering, sea going ship building and repair, steel milling, cement production, container production, etc., as well as the consumer goods production. To attract investment and enterprises into business and production activities in Binh Chanh and Binh Dong industrial parks. To speed up the completion of work items in Dung Quat port project with 10 petroleum ports, combine port, wave –breaking and sand-shielding dikes. To develop the inter-zonal and inter-regional traffic systems so as to bring into full play the role of Dung Quat port. To organize the ground clearance and re-arrangement of population and resettlement quarters. To concentrate investment in large irrigation works and water reservoirs so as to supply water for Dung Quat industrial park. To build the trade center and develop tourism. To develop social and public service domains; to build a 300 bed hospital, complete the building of a school fro training of technical workers which can enroll 1,000 students a year. To build kindergartens, crèches, junior-high schools and Van Tuong senior high shool. To build establishments in service of cultural and sport activities. To form and develop Van Tuong urban center into an industrial, service and tourist urban center with a population of 120,000 and Doc Soi urban center into an auxiliary quarter of the western industrial cluster and one of the traffic hubs (for roads and railways to the port and oil refinery.

For Chan May economic commercial development promotion zone (Thua Thien Hue province): For the immediate future, to concentrate on the development of Chan May commercial zone on an area of around 1,000 hectares in association with the development of Chan May port under the Prime Minister’s Decision on economic – commercial development promotion zones. In the 2006-2010 period, to build an international communication center together with the system of services, including commercial, tourist, financial and banking services as well as other fields and trades with a high commercial civilization level . to step by step develop Chan May industrial park and Chan May new city.

For Nhon Hoi general economic zone (Binh Dinh province): To develop in the future Nhon Hoi general economic zone on a land area of around 10,000 hectares isolated from inland, thus creating more motive force for promoting socio-economic development of the central Vietnam key economic region. Its construction ground area of around 5,000 hectares shall be planned as follows: An industrial park shall be built on an area of 1,000 hectares for industries of processing agricultural, forest and aquatic products, producing construction materials, ship building and repairing, petrochemistry, electronics and electrical materials, textile, leather and garment for export, as well as a general entrepot. To build Nhon Hoi new urban center with a land area of around 80,000 by 2010 into a sea-front modern city. Nhon Hoi tourist resort shall be built on an area of 500 hectares. The remaining area shall be reserved for construction of infrastructure works in service of development of the general economic zone.

2. On the planning adjustment

a/ Regarding industry:

- To restructure industrial products along the direction of forming key products of processing industries: petrochemical industry, aquatic product processing industry; mechanical and electronic industries; consumer goods industry; construction material industry, etc., with modern technologies, high productivity and quality, thus ensuring the competitiveness of such products. To develop supporting industries to raise the national value in the regional products with competitiveness of such products. To develop supporting industries to raise the national value in the regional products with competitive edges.

- From now till 2010, to concentrate on investing in the completion and efficient operation of industrial parks which have been under construction on a total land area of around 2,200 hectares.

b/ Regarding tourism and other services

- To increase investment in, popularize and develop tourism. To bring into play advantages of natural conditions, ecology and spots rich in historical and cultural values, so as to develop tourism into one of the region’s key economic sectors. To form as soon as possible general tourist resorts combined with entertainment and marine sports in Canh Duong – Hai Van – Non Nuoc areas as key points for tourist development in the region, thus contributing to the formation of a large service center of the region and the whole country. To coordinate with the regional provinces in forming a network of tourist spaces in Central Vietnam and the whole country, linking tourist activities in the region with the tourists routes of the East-West corridor and the whole country.

- To enhance the role of Da nang, Hue and Quy Nhon cities as commercial and international transaction centers which can provide commercial services for both Central Vietnam and the Central Highlands and being the gateway for the development of the East-West corridor.

- To develop high-quality services such as financial, banking, insurance, healthcare and educational services, so as to make the Central Vietnam key economic region one of major national and international service centers.

c/ Regarding agriculture, forestry and fisheries.

- To continue stepping up the restructuring of agriculture and fisheries along the direction of raising the capability to ward off natural calamities, sustainably develop agriculture, develop agriculture in combination with horticulture and hill forestry, in order to create landscapes and environment for tourist purposes.

- To restructure crops and husbandry to suit natural conditions and terrains, so as to raise the efficiency on cultivated acreage unit and the competitiveness of farm produce.

- To revise the planning on, and invest in, rational exploitation of land and ground water resources in building of aquaculture areas in coastal sandy land, thus ensuring the sustainable development of production associated with the environment protection. To raise the offshore fishing capacity and develop aquaculture in areas where conditions permit so as to satisfy production, daily life and export demands.

d/ Regarding the infrastructure development

To intensify the investment in infrastructure along the direction of forming the infrastructure framework for socio-economic development, and complete as soon as possible the building of roads and seaports.

- Regarding road traffic: To ensure the uninterrupted and convenient traffic in all circumstances, linking the Central Vietnam key economic region with other regions and localities throughout the country, and among the regional provinces; to build roads linking seaports, airports and seaside urban centers with the western districts and Ho Chi Minh road. To ensure the road connections between the Central Vietnam key economic region and the regional countries within the program on development of the greater Mekong sub-region (GMS).

To upgrade Road No. 19 and cross road sections linking Road No. 19 to industrial parks, agricultural areas and tourist resorts. For the immediate future, to renovate and upgrade the section from km5 + 500 to km 11 (Ong Tho T junction to Tuy Phuoc district township) into a grade III delta road. To build and complete before 2007 the cross road section linking Ho Chi Minh road to National Highway 1A, running through Tra My (Quang Nam province), heading to Tam Ky and running through Tra Bong (Quang Ngai province) to Dung Quat economic zone. To build and complete before 2010 the seaside road from Da Nang city, running through Hoi An town, Chu Lai open economic zone, Dung Quat economic zone to SA Huynh (Quang Ngai province) for the socio-economic development along the coastline in combination with defense and security as well as the improvement of people’s life. To complete the project on building Hai Van mountain pass tunnel by 2005 and perfect the road system before 2007. To continue building the network of inter-district, inter-commune and inter-village rural roads with various Ste budget sources in combination with capital mobilized from the population. To strive for 100% of districts having asphalted concrete roads linking to district capital centers by 2005; and 100% of mountain communes having motor roads to commune centers by 2008.

- Regarding railway: To upgrade and relocate Thong Nhat railway sections running through provincial capitals and cities to their outskirt in parallel with roads. To build flyovers and bridges for local people’s travel in areas where exist roads crossing railways. To invest and modernize the system of railway stations in the region. To invest in special-use railways linking seaports to the national railway system.

- Regarding seaports: to develop the seaport system together with other infrastructure systems in the Central Vietnam key economic region. To renovate and upgrade Tien Sa port, raising its cargo handling capacity to 4 million tons/year by 2010. From now till 2010, to build new Lien Chieu deep water port (phase 1) with the handling capacity of 2 million tons/year and raise its capacity to 8.5 million tons/year in phase II for the subsequent period. To accelerate the construction of Dung Quat, Ky Ha and Quy Nhon ports, in order to put them into large-scale operation by 2005, which constitutes an important condition for ensuring the development of Dung Quat economic zone, Chu Lai open economic zone and Nhon Hoi economic zone. Quy Nhon port (Binh Dinh province), which has the current handling capacity of over 2.5 million tons/year, is expected to have more wharves to handle around 4 million tons of cargoes a year by 2010. to strive to complete by 2010 the construction of these ports with a view to guaranteeing the vigorous development of the said economic zones in the subsequent period. To continue building and improving Chan May and Quy Nhon ports to ensure the successful development of Chan May commercial development promotion zone and Nhon Hoi economic zone into important centers, pushing forward the socio-economic development of Thua Thien Hue and Binh Dinh provinces in particular and the whole region in general.

- Regarding airports: To invest in restoration and upgrading of Chu Lai airport, stage I, to serve some 0.5 million passengers and around 500 tons of cargoes a year and satisfy the demand for commercial exchange for development of Chu Lai open economic zone and Dung Quat economic zone. According to a long-term orientation, it will be built into an international transit airport for the zone and the region. To continue investing in building, upgrading and expansion of Da Nang airport to make it a real international airport of Central Vietnam. To upgrade and efficiently operate airports currently in regular operation such as Da nang, Phu Bai and Phu Cat airports.

- Regarding post and telecommunications: to further step up the building and development of the region’s information infrastructure furnished with modern technologies, having a large capacity, high speed and quality, and efficiently and safely operating, thus creating conditions for stepping up the application and development as well as defense and security of the region. To raise the number of telephone sets for every 100 people from current 5.64 (2002) to 20-22 by 2010. The transmission system shall continue to be laid underground with more optic-fiber cable and less copper cable lines.

- Regarding electricity supply: in the period from now till 2010, to continue investing in the upgrading of the electricity transmission system, ensuring the sufficient supply of electric power for the region’s socio economic activities. To build and raise the quality of the 220 kV network in the region, including transmission lines and the system of transformer stations. To invest in the building of 220 kV axial transmission line of Da Nang – Dung Quat – Pleiku. To start the investment in the construction of Dakring 100 MW hydroelectric power plant. Dakre 30 MW hydroelectric power and Nuoc Trong 10 MW hydroelectric power plant. To commence the construction of a number of independent hydroelectric power plant upstream Tra Khuc river. To renovate and expand the regional electricity supply network.

- Regarding the water supply, drainage and irrigation: From now till 2010, to definitely complete the urban water supply projects. To prepare for stage II of the water drainage projects in Da Nang, Hue and Quy Nhon cities and Quang Ngai provincial capital. To complete as scheduled the projects on supply of water for industrial parks and economic zones. To closely control the investment in the construction of industrial parks and economic zones. To closely control the investment in the construction of industrial water drainage and industrial waste water treatment works in industrial parks and economic zones.

In the period from now till 2020, to attach importance to the irrigation development and construction of large-, medium- and small-sized reservoirs, in association with the farming season and crop restructuring, thus substantially relieving drought in dry season. To complete the projects on restoration of the anti flood irrigation system; develop irrigation – cum –flood prevention works, such as Ta Trach lake (Thua Thien Hue); A Vuong and Phu Ninh lakes (Quang Nam); Nuoc Trong and Thach Nham lakes, expand Chop Vung and Nui Ngang lakes and combat water flooding and inundation in Thoa river basin (Quang Ngai); Binh Dinh lake (Binh Dinh), etc., Besides, to continue researches to relieve drought in an area of 12,000 hectares in Huong river basin; 3,000 hectares in Que Son (Quang Nam); 2,000 hectares in Duc Pho (Quang Ngai); 2,000 hectares in northern Binh Dinh province; and 8,000 hectares in southern Binh Dinh province.

- Regarding the environmental protection: To formulate synchronous policies and measures to solve the environmental pollution problems in an active and effective manner. To set up a support fund for pollution prevention and reduction. To formulate the regulation on and stringently inspect the environmental protection and preservation of natural landscapes. To pay special attention to the protection of industrial parks and urban environment; to protect the coastal environment. To attach importance to the prevention and reduction of natural calamities.

e/ Regarding social-cultural and healthcare development

To promote the values of traditional cultural activities in the region, continue investing in the protection of historical, cultural and revolutionary relics, first of all the world cultural heritages of Hue, Hoi An and My Son. To build Hue city into a festival identity and Vietnam’s community cultural activities, and create conditions for integration with the nations in the world. To upgrade local cultural houses to serve the community’s increasing cultural demands.

To implement the primary healthcare programs; to achieve objectives of the national program on social and dangerous disease and epidemic prevention and combat.

To supply more technical equipment for the system of disease prevention and medical examination and treatment establishments from communes and wards to provinces along the direction of providing healthcare at commune and district levels and step by step specializing medical activities at provincial level. To expand the training of medical workers and adopt policies to encourage medical doctors and workers to work in grassroots establishments.

3. Development mechanisms and policies

a/ Regarding investment: to well materialize the preferential mechanisms and policies already promulgated and applied to Chu Lai open economic zone (promulgated together with Decision No. 108/2003/QD-TTg of June 5, 2003); and apply more preferential policies to Dung Quat and Nhon Hoi economic zones. To apply preferential mechanisms and policies to Chan May economic –commercial development promotion zone. To study specific policies on land management (for ensuring the rational land use) to serve the exchange of land for infrastructure. To study for application and improvement of the system of financial policies in order to promote and attract investment for development of industrial parks in compliance with the Regulation on management of industrial parks and export processing zones, promulgated together with the Government’s Decree No. 36/ND-CP of April 24, 1997.

b/ Regarding mechanisms and policies for development of enterprises

To step up the administrative reform in order to create favorable conditions in support of the development of enterprises in the region; to create transparent and uniform production and business environment, and equal footing for competition among all economic sectors. To continue implementing the Resolution of the 3rd plenum of the Party Central Committee on the reorganization, renewal and raising of efficiency of State enterprises in the region. To step up the promotion of medium and small sized enterprises under the Government’s Decree No. 90/2001/ND-CP of November 23, 2001 on assistance for development of medium-and small-sized enterprises. To study the planning on, and provide investment support for, formation of industrial clusters, thus creating conditions for medium-and small-sized enterprises to use land and concentrated technical infrastructure for raising their production and business efficiency.

c/ Regarding the scientific and technological development policies

To reorganize and consolidate (with intensive investments) the system of universities and scientific research institutes in the region along the direction of restructuring the system of training and researching domains. To form organizations linking training schools and researching centers with economic activities in the region, especially in technology research and transfer. To combine researching activities with operations of enterprises in the region. To coordinate with the scientific and technological research or training establishments in Hanoi city and Ho Chi Minh city in the scientific and technological research and application.

Article 4: Human resource development

1. Training of high-grade human resource

To invest through appropriate steps in the regional universities in Da nang and Hue to make them multi-branch training establishments and scientific research centers in service of socio-economic development of Central Vietnam. To step by step upgrade the regional universities according to the planning on the network of universities already approved by the Prime Minsiter. To build Pham Van Dong University (Quang Ngai) by 2010.

Training of skilled laborers

To strive for the target that the rate of working-age laborers provided with job-training and vocational guidance shall be increased to 13-15% by 2005 and 18-20% by 2010. To scale up and raise the quality of professional education along two directions: Expanding the universal training fields and professions to meet the job-training demand of the society; providing quality training of highly-qualified technicians and skilled workers of high grades in key schools; to closely combine the training of ordinary workers and professionals with job-training of skilled workers. To plan and reorganize the network of vocational and job training intermediate schools in the region to meet the requirements of manpower structure and regional economic development. To build a number of high –tech job training centers to train technical workers for industrial parks. For the immediate future, to build Dung Quat job training school and the hi-tech job-training school with financial assistance of the Government of the Republic of Korea in Quang Ngai province.

Article 5: The ministries, the ministerial-level agencies, the Government-attached agencies and the People’s Committees of the provinces and cities in the Central Vietnam key economic region shall have to closely inspect and monitor the realization of the major orientations for socio-economic development of the Central Vietnam key economic region, and work out 5 year and annual plans, appropriate development investment programs and projects.

The coordinating committee for development of key economic regions shall direct the Ministry of Planning and Investment in coordinating with the concerned ministries and branches and the local People’s Committees in revising the development planning of the whole region to make it practical and highly effective. For the immediate future, to concentrate efforts on reviewing the overall planning on socio-economic development of the whole key economic region, particularly the plannings on development of urban centers, economic corridors, industrial parks, the system of seaports, etc.

To review the socio-economic development plannings of the regional provinces in order to readjust them to suit the new development situation. After reviewing the overall planning, the branches and localities shall have to organize as soon as possible the implementation of the detailed plannings, and promptly notify them to all levels and people.

The Ministry of Planning and Investment shall assume the prime responsibility for and coordinate with the concerned ministries, branches and localities, in organizing the implementation of key investment programs and projects.

The ministries and centrel –level branches shall have to coordinate with, and render supports to, the provinces and cities in the Central Vietnam key economic region in reviewing and organizing the implementation of the already set programs and projects, thus ensuring the conformity of the planning of each province or city with the plannings of the region and the whole country.

Article 6: This Decision takes effect 15 days after its publication in the Official Gazette and replaces the Prime Minister’s Decision No. 1018/1997/QD-TTg of November 29, 1997 approving the overall planning on socio-economic development of the Central Vietnam key economic region in the period from now till 2010.

Article 7: The presidents of the People’s Committee of the provinces and centrally-run cities in the Central Vietnam key economic region and the ministries and the heads of the ministerial-level agencies and the Government –attached agencies shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI