DECISION

APPROVING THE MASTER PLAN ON SOCIO-ECONOMIC DEVELOPMENT OF THE NORTHERN KEY ECONOMIC REGION THROUGH 2020, WITH A VISION TOWARD 2030 (*)

THE PRIME MINISTER

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

Pursuant to the Government s Decree No. 92/2006/ND-CP of September 7, 2006, on the formulation, approval and management of socio-economic development master plans; and Decree No. 04/2008/ND-CP of January 11, 2008, amending and supplementing a number of articles of Decree No. 92/2006/ND-CP;

At the proposal of the Ministry of Planning and Investment,

DECIDES:

Article 1. To approve the master plan on socio-economic development of the northern key economic region (below referred to as the region) through 2020, with a vision toward 2030, with the following principal contents:

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The northern key economic region (embracing 7 provinces and cities, namely Hanoi, Hai Phong, Quang Ninh, Hai Duong, Hung Yen, Vinh Phuc and Bac Ninh) is a major political, economic, cultural and scientific-technological center of the country. Accommodating central agencies, executive centers of many major economic organizations and national scientific and technological training, research and application institutions, the region has been and will continue playing a particularly important role and position in the cause of national development.

It is a core development region and a driving-force territory of the Red River delta and one of the leading regions in fast and sustainable socio-economic development in the whole country. It has great tourism potential with a system of specialized medical centers and a pool of highly qualified scientific researchers who play a pivotal role in training human resources for the national industrialization and modernization.

II. DEVELOPMENT VIEWPOINTS

1. To boost the region’s socio-economic development in conformity with the national socio-economic development strategy and the master plan on socio-economic development in the Red River delta through 2020 and the country’s sectoral development master plans for deeper and wider international integration, closer and more harmonious connection to create a spillover effect to drive up the socio-economic development of the region and the country.

2. To strive for fast and sustainable socio-economic development with a view to becoming the country’s locomotive of economic development, leading the northern region and the country in industrialization and modernization. To develop a knowledge-based economy together with the renewal of the growth model and economic restructuring toward green industry in response to climate change and sea level rise.

3. To uphold its role in leading the country in the application of cutting-edge science and technology in production and management. To step up scientific and technological research and application in sectors with advantages, particularly basic researches to make science and technology a driving force for the regional development. To develop high- quality human resources to meet human resource demand of the region’s key development sectors during the integration process.

4. To closely combine economic development and socio-cultural development together with realizing social justice and progress in order to gradually improve the people’s living standards. To ensure the harmony between the economic development and the conservation, embellishment and promotion of traditional cultural values and cultural and natural heritages, and develop sports and physical training.

5. To closely combine economic development with defense and security maintenance and national sovereignty safeguarding in the process of integration and development.

III. DEVELOPMENT OBJECTIVES

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a/ Overall objectives:

To consolidate and enhance the position of the northern key economic region as a political, economic, cultural and scientific and technological center of the country; a center of convergence of resources and national vitality, a location for the country’s integration and trade exchange with the Southeast Asian region and the world to become a development nucleus of the Red River delta and the country, playing a pivotal role in raising Vietnam’s position in the ASEAN community and in the international arena. To develop the northern key economic region into one of the country’s leading regions in economic development and a leading force in making strategic breakthroughs, economic restructuring, renewing the growth model and realizing industrialization and modernization. To ensure the close combination of economic development, environmental protection, social welfare, social order and safety and firmly maintain all-people defense and people’s security.

b/ Specific objectives:

- Economic objectives:

+ The average GDP growth rate will be 7.5% in the 2011-2020 period and 9% in the 2016-2020 period (1.25 times the national average). The average per-capita GDP (according to actual prices) will reach USD 3,200-3,500 by 2015, and USD 5,500 by 2020;

+ Economic restructuring: By 2015, the proportion of agriculture-forestry-fisheries will make up 7.7% of the region’s GDP, industry-construction, 48.3%, services, 44%; and by 2020, the proportions will be 5.5%, 49.1%; and 45.5%, respectively;

+ The region’s export value will account for 27-29% of the country’s total by 2015 and 32% by 2020; the technology renewal rate will be 20-25% per year and the rate of advanced technologies will be around 45%.

b/ Socio-cultural objectives:

+ The region’s average population growth rate will be around 1.2-l_ể3%, including natural population growth of below 1%, in the 2011-2015 period; 1.1-1.2%, including natural population growth of 0.85-0.9%, in the 2016-2020 period. The urbanization rate will be 40-45% by 2015 and 50-57% by 2020;

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+ To improve people’s healthcare quality; the rate of communes meeting national health standards will be 60% by 2015 and 80% by 2020; the rate of under-five underweight malnourished children will be 15% by 2015 and 12_ệ5% by 2020;

+ To cut the rate of poor households by 2% per year and raise the poor household’s average per capita income by 2.5-3.5 folds every five years.

By 2020, to restore, embellish and bring into play value of 100% of cultural heritages by 2020; 95%-100% of districts and towns will have cultural houses and libraries; 85-95% of communes and townships will have cultural houses.

- Environmental protection:

To comply with the criteria for supervision and evaluation of the environmental protection results. To basically remedy environmental pollution in both rural and urban areas, socio-economic activities will meet green and sustainable development requirements. By 2020, more than 98% of urban solid waste and more than 97% of hospital waste will be treated; more than 90% operating industrial parks and export processing zones will have centralized wastewater treatment systems up to environmental standards.

- Security and defense objectives:

+ To further intensify the propaganda and mobilization of people to strictly abide by the State’s laws to control and reduce traffic accidents and labor accidents; to build and consolidate new cultured lifestyles in residential communities;

+ To combine socio-economic development with national defense consolidation. To firmly ensure the all-people defense posture and people’s security in all fronts. To complete national defense and security infrastructure to meet the battle requirements in all circumstances.

2. Orientations toward 2030:

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To continue bringing into play the role of an active development region with a modem economic structure and a high and stable growth rate, leading the country in the development of the knowledge-based economy and the creation of breakthroughs in the national economic development; to act as a locomotive economic region and an international economic, trade, finance, service and tourism center, leading the country in education and training, science and technology, culture, sports and framing, health and people’s healthcare. To have an arrangement and organization of spaces for production and rational urban development in a large urban cluster, and functions as a national complex urban area in which Hanoi will be a multi­functional integrated economic center with a modern and uniform technical infrastructure system. To ensure the close combination of economic development with environmental protection and social security and order, firmly consolidating all-people defense.

b/ Specific fields:

- Economically:

+ The average GDP growth will be 8.7% in the 2021-2030 period (1.3 times the national average); the average per-capita GDP (according to actual prices) will reach USD 10,500-12,000 by 2030;

+ Economic restructuring: By 2030, the proportion of agriculture-forestry-fisheries will make up 2.2% of the region’s GDP, industry-construction, 47.8%, and services, 50%;

+ The region’s export value will account for 39% of the country’s total by 2030; the region will lead the country in the modernization process with the technological renewal rate will be 20% per year on average;

- Socially:

+ The region’s average population growth rate will be around 1-1_Ế1%, including natural population growth rate of around 0.8-0.85%, in the 2021-2030 period. The urbanization rate will be 60-70% by 2030;

+ The rate of trained workers will be more than 90% and workers receiving vocational training will be around 60-70% by 2030; to generate jobs for around 200,000-230,000 people per year; to control unemployment rate among people of working age at 3%;

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+ To cut the rate of poor households by 1.5-2% per year and raise the poor household’s average per-capita income by 1.5- 2.5 folds every five years.

- Infrastructure:

+ To have a synchronous and modem transport infrastructure system, a diverse, civilized and safe mass transit system linking Hanoi and satellite urban centers, districts and suburban urban areas;

+ All people will have houses with necessary house equipment suitable to the socio­economic development level of the Capital as well as provinces and centrally run cities in the region with the housing area per person in urban areas reaching 20-25 square meters. Housing and residential land in rural areas will be rationally zoned off with good living environment and convenient working conditions and in line with criteria for building a new countryside;

+ To modernize the power grid to ensure efficient and safe operation; to zone off the construction of synchronous and modem underground works with 100% of electric and information cables in cities and communes laid underground; lighting systems in urban centers will be built up to standards. More than 70% of the population will have access to the Internet. All households will have access to clean water. To basically remedy inundation in urban centers.

- Environmentally:

To build complete waste and wastewater treatment systems up to the environmental standards. To rationally and efficiently use natural resources, landscapes and development space towards sustainability.

IV. ORIENTATIONS FOR SECTORAL DEVELOPMENT

1. Development of services, trade and tourism:

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- To increase service quality and raise the competitiveness of service providers in the domestic, regional and international markets; to further tap potential and advantages of each service sector, to promote cooperation among service sectors for higher competitiveness and development.

- To promote export of services and on-the-spot services for foreign exchange collection, intensify investment and upgrade trade infrastructure associated with developing a healthy competitive business environment; to expand the network of trade centers and supermarkets in the region’s urban centers; to well develop warehouses meeting international standards connected with expressways, coastal roads and border-gate routes.

- To step up the socialization to develop cultural, educational, healthcare, sports and physical training and job placement services, under the market mechanism.

- To expand the network of trade centers and supermarkets in urban centers; to reinforce and upgrade infrastructure of farm produce and aquatic product wholesale markets in centralized production zones, trade centers and exhibition and fair centers in large urban centers. To complete the e-commerce system and the system of information on trade transactions to serve international integration.

- To develop banking-finance services and service providers toward modernity and diversity. To develop Hanoi into a prestigious finance-banking center up to international standards.

- To invest in building a number of key national tourist zones meeting international standards. To strive to attract around 7-8 million foreign tourists and earn a tourism turnover of USD 3 billion by 2020; 10-12 million foreign tourists and a tourism turnover of USD 6-7 billion by 2030. To complete the formulation and approval of master plans on and build national tourist zones and spots to attract investment in a uniform and sustainable manner.

- The average service growth rate will be around 8.2% in the 2011-2015 period, 8.9% in the 2016-2020 period, and 9.1% in the 2021-2030 period. To balance imports and exports by 2015 and achieve an average trade surplus of 3-4% of GDP by 2020.

2. Industrial development:

- To focus on developing and raising the capacity and position of industries with competitive edges, comparative advantages, a high localization rate and possibility of deeply integrating into the global value chain such as electronics, information technology, telecommunications, mechanical engineering; ship repair and building; high-quality steel and new construction materials; chemicals and pharmaceuticals; food processing; garments, textiles and footwear.

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- To combine industrial development in rural areas with agricultural development and urbanization process towards sustainability and environmental protection. To develop hi-tech small- and medium-sized industries that generate more jobs for workers.

- To prioritize the intensive development of electronics industry and information technology, and high-quality and special-use steel manufacture. To expand the scale of pharmaceutical industry and food processing industry associated with material zones.

- To develop garment-textile and footwear industries for export and domestic consumption and promote the development of supporting industries such as fiber, sewing yam, dyeing and product design for shifting from processing to localization of products by 2020.

- To focus on mobilizing and attracting investors to develop existing economic zones, industrial parks and clusters. To prioritize large-scale and less labor-intensive investment projects that manufacture hi-tech, clean-tech, high-added value and environmentally friendly products.

- To attain an average industry-construction growth rate of around 8.2% in the 2011- 2015 period, 10% in the 2016-2020 period, and 9% in the 2021-2030 period.

3. Agriculture, forestry and fisheries development:

- To develop intensive farming so as to raise the value of income per cultivation area, step-by-step build hi-tech agriculture so as to supply quality products, ensure food hygiene and safety, and meet people’s consumption demand. To attach importance to the development of traditional craft villages producing export handicraft products.

- To promote offshore and high-sea fishing, shift from coastal fishing to other economic activities. To set up fishing logistics service centers in Cat Ba and Bach Long Vi islands in Hai Phong.

- To concentrate on developing poultry and cattle farming on an industrial scale; freshwater, brackish water and marine aquaculture associated with slaughtering and processing establishments, ensuring food hygiene and safety and environmental protection, to invest in the system of frigerated warehouses to serve export. To apply technical standards and advanced technologies and modernize the management work in order to raise the production value.

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- The agriculture-forestry-fisheries sector will grow at an average rate of around 3-3.2% in the 2011-2015 period, 2.8-3% in the 2016-2020 period and 2.5% in the 2021- 2030 period.

4. Socio-cultural development:

- Education and training: To synchronously develop education and training at all levels and disciplines associated with education of personality and national pride of Vietnamese and cultural traditions; to improve the quality of teaching and learning. To build a number of high-quality universities up to international standards in Hanoi and provinces in the region. To prioritize high-quality human resource training, meeting the demand for quantity and quality for the region’s spearhead sectors such as finance, banking, insurance, tourism, hotels, restaurants, transport, high-quality human resource training and healthcare; mechanical engineering, electronics, new materials, pharmaceutical and food processing; high-quality vocational training for electronics, mechanical engineering, power technology, material production, tourism and telecommunications, etc. To promote vocational training for rural laborers.

- Health and people’s healthcare: To strengthen and build the system of synchronous and standard health establishments from central to local levels in the region. To curb the overload at central hospitals. To consolidate, upgrade and improve the quality of medical examination and treatment of the system of regional, provincial and district general hospitals and preventive medicine establishments. To step up the socialization of medical and healthcare services to ensure all people will have access to medical and healthcare services, diversify medical examination and treatment services. To prioritize the upgrading of the Hanoi Medical University, the Hanoi University of Pharmacy and major medical research institutes in the region.

- Culture, sports and physical training: To preserve and develop genres of tangible and intangible cultures and traditional and folk arts. To build cultural and sports facilities of national and continental scale imbued with Vietnamese culture, thus meeting the conditions for the organization of regional, continental and international tournaments. To consolidate and further promote traditional cultural values to lay foundations for cultural exchange among ethnic communities in the region, the country and worldwide. To build a system of cultural and sports institutions at all levels and entertainment sites in urban areas and populous areas in the region.

- Poverty reduction, job generation and social welfare: To synchronously, comprehensively and effectively implement programs and projects on poverty reduction, social welfare and protection and care of children and people who rendered great service to the country. To attach importance to generating jobs, increasing incomes and stabilizing laborers’ life. To implement social housing programs for low- and middle-income earners, especially in urban areas, economic zones and industrial parks.

5. Development of synchronous infrastructure systems:

a/ Transport:

- Roads: To complete on schedule the construction of expressways so as to connect economic centers in the region with the whole country and foreign countries; axes linking regions and coastal roads linking sea dikes and seaports. To make basic investment in, under approved scale, national highways in the region, radial roads, the Hanoi-Hai Phong- Quang Ninh development triangle; intersections, bypasses and belt roads. To consolidate provincial, district roads and rural traffic to ensure smooth flow.

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- Waterways: To build a synchronous and modern regional and international seaport system with the Hai Phong and Quang Ninh port cluster being the center. To focus on developing the Hai Phong international gateway seaport (Lach Huyen) to satisfy international and regional shipping demands; to upgrade and build a number of major ports and passenger and cargo wharves along the Red River and Thai Binh river and other inland waterway routes serving the inland waterway transportation in line with the approved sectoral master plans.

- Railways: To restore, upgrade and modernize the existing railway system to raise its capacity. To speed up the pace of the Yen Vien-Pha Lai-Ha Long-Cai Lan railway construction project and prioritize the implementation of Hanoi’s urban railway projects in line with master plans and schedule, ensure safety, effectiveness and urban beauty. To study the investment in express railways from Hanoi to other areas and localities in the region. By 2020, Hanoi’s mass transit is expected to serve 35% of passengers, while Hai Phong and other urban areas, 15-20%.

b/ Power supply and post and telecommunications infrastructure:

- To concentrate on building and completing power plants and a synchronous power distribution network in conformity with the electricity generation diagram VII and the scheduled operation of power plants. To study the application of a smart power grid with modem technologies in regulating and connecting with national and regional countries’ power grids.

- To build a synchronous and modem post and telecommunications infrastructure, particularly in Hanoi capital and big cities and urban centers in the region. To develop modem post and telecommunications sector equaling to that of advanced countries in the Southeast Asian region and the world. To widely and effectively apply information technology in state management, economic sectors, socio-cultural fields, security and national defense. To diversify post and telecom services, expand the scale and constantly improve service quality.

c/ Irrigation, water supply and drainage:

- To reinforce, upgrade and ensure the uniform and efficient operation of the system of irrigation works, reservoirs, dams and equipment to supply sufficient water for production and flood management. To reinforce and upgrade key irrigation systems like Bac Hung Hai, Nhue river and northern Duong river, etc., to serve irrigation, drainage and water supply for economic restructuring of the agricultural sector, production and daily life.

- To invest in building and upgrading the water supply system to supply enough clean water to serve urban and rural people’s daily needs according to standards and regulations. To apply advanced technologies and develop hygienic water supply models for people in rural, deep-lying, border and island areas that face scarcity of fresh water sources.

- To build and reinforce the river and sea dike system, salinity prevention and flood water discharge projects in order to prevent landslides and erosions, protect land and adapt to climate change. To adopt schemes to ensure the safety of people’s lives and property in areas zoned off for hydropower reservoirs ’ flood water discharge when necessary for the safety of Hanoi capital and other provinces and cities in the region.

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- To make the best use of scientific and technological potential so as to bring into play the region’s leading role in scientific and technological development. To promote technology renewal toward modem and high technologies. To prioritize clean technology, information technology, bio-technology, automatic technology and new-material technology, and intensify investment in science and technology to serve the development of marine economy.

- To renew mechanisms and policies to manage and develop science and technology. To boost international cooperation in science and technology. To encourage and support the development of science and technology enterprises; to encourage and develop foreign- invested research and development institutes and branches of foreign research institutes in Vietnam. To develop a modem national information and statistics infrastructure for science and technology.

- To increase investment in leading research institutes, science and technology centers, major laboratories, and technology application and transfer establishments, etc. To promote investment in developing the Hoa Lac hi-tech park into a national science and technology city, study the construction of a number of hi-tech parks in areas where conditions permit.

7. Management of natural resource exploitation and use and environmental protection:

- To exploit and use land fund in a reasonable, economical, effective and sustainable manner under the prescribed criteria to meet economic and technical targets and in conformity with land use master plans and plans for each period in each locality and the whole region. To raise the economic value and efficiency per unit of land area, increase revenues from land, create sources for socio-economic development. To enhance the management, inspection and supervision for efficient and economical use of land to minimize the conversion of farm land into non-agricultural land. To consolidate and maintain rice-growing areas to ensure food security. To protect existing forest land areas, increase the greening of barren land and bare hills, and prevent deforestation and forest fire.

- To encourage and prioritize the development of production sectors and fields applying the clean production mechanism and advanced technologies with low-energy consumption and low emission. To promote the socialization of environmental protection services and environmental protection inspection and supervision, and apply strict measures to handle acts that cause adverse impacts on the environment.

- To efficiently manage and tap natural resources, sustainably protect and use water resources, protect the environment and ecological balance. To attach importance to green, environment-friendly economic development. In the course of implementing programs and projects to develop sectors and professions, it is necessary to take solutions to prevent impacts on UNESCO-recognized landscapes such as the world natural heritage Ha Long Bay, the Cat Ba Biosphere Reserve. To follow sustainable production and consumption, gradually develop “clean energy”, “clean production” and “clean consumption”.

- To apply advanced technologies in centralized waste collection, treatment and recycling to ensure environmental hygiene. To build Soc Son waste treatment complex, phase II (Hanoi) and a solid waste treatment zone in Hoanh Bo (Quang Ninh). To build solid waste treatment zones and wastewater treatment plants in provinces and cities to treat waste and wastewater up to the prescribed standards before being discharged into the environment. To pay attention to protection the environment of craft villages in rural areas.

- To implement environmental zoning and the integrated management of river basins and coastal areas that face high risks of environmental pollution to prevent pollution incidents such as oil spill, toxic chemical leaks and other pollution risks. To build and put into use marine reserves and biodiversity reserves in marine and inland waters. To strictly handle environmental polluters; to enhance inspection and supervision of producers in implementing their environmental protection commitments.

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- To build economic development projects, defense economic zones, closely combine the two strategic tasks of socio-economic development and defense-security consolidation, to strengthen all-people defense potential and people’s security posture; to maintain political stability and social order and safety; and to be ready to effectively face, prevent and frustrate hostile forces’ plots and schemes.

- To thoroughly grasp the situation and promptly handle in any circumstances; to actively prevent and fight social evils and drug crimes, smuggling and trade frauds, firmly safeguard national border sovereignty and build a border of peace and stability with the neighboring countries.

V. ORIENTATIONS FOR ORGANIZATION OF DEVELOPMENT SPACES

1. Development of urban systems and rural residential areas:

a/ Development of urban systems:

-To establish systematic linkage among central urban areas in the region, including two centrally run cities; to set up a rational structure of core and satellite urban centers to create a driving force for the development of adjacent areas and concurrently reduce pressure on central parts of Hanoi and Hai Phong cities.

- To develop urban centers of Bac Ninh, Vinh Phuc, Ha Long and Hai Duong to play the role of development poles in the region’s urban system.

- To develop satellite urban centers, namely Son Tay, Tu Son, Xuan Mai, Chi Linh, Cam Pha, Uong Bi and Mong Cai. To develop urban coưidors from Hanoi to different directions and connect corridors, especially expressways and national highways in the region. To develop district townships lying 50 kilometers from the heart of Hanoi and development poles to facilitate rural development.

b/ Rural development:

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- To effectively implement the new countryside building program associated with national target programs on socio-economic development in the region. To mobilize all resources, especially the participation of people in building a new countryside with the rate of communes meeting the new countryside criteria being 20-25% by 2015 and 50- 65% by 2020.

- To set up rural service centers; to build rural residential clusters with synchronous infrastructure facilities meeting standards according to the set of national criteria for new countryside; to reinforce and build aquaculture infrastructure, fishing ports and storm shelters for vessels and rural infrastructure works.

2. Development of sub-regions:

The region’s development space embraces two sub-regions, namely the Hanoi capital sub-region and the coastal sub-region.

a/ The Hanoi capital sub-region embraces Hanoi capital and Vinh Phuc, Bac Ninh, Hung Yen and Hai Duong provinces. To arrange regional-scale trade and service centers, including training, scientific research, and high-quality medical establishments, and exhibition and fair, sports and physical training centers, etc. To concentrate on the establishment of hi-tech industrial parks, hi-tech agricultural zones and technology research and transfer centers. To develop high-quality paddy and fruit tree zones (longan, litchi, orange, lemon, banana, etc.).

b/ The coastal sub-region embraces Hai Phong city and Quang Ninh province (including even marine, coastal and island areas) with fast and active development potential, trade and service centers in large urban centers; to build regional and national tourist zones associated with ecological tourism in the Cat Ba National Park (Hai Phong), and Bai Tu Long, Ha Long, Van Don, Tra Co (Quang Ninh); to step up agriculture and forestry development, afforestation and forest protection. To raise the value and quality of aquaculture and fishing, combine the development of seafood processing industry and export.

3. Development of special territories:

a/ Development of the marine economy: To effectively implement Vietnam’s marine strategy up to 2020, strongly develop the marine economy, raise the contributions of marine economy to the region’s socio-economic development. To build coastal areas into “open economic zones” with export promotion. To strictly combine the development of the marine economy based on mutual beneficial cooperation and ensuring defense and security and safeguarding the nation’s marine sovereignty.

b/ Economic zones and border-gate economic zones: To continue investing in developing economic zones and border-gate economic zones decided by the Prime Minister to be prioritized for investment to become one of major economic areas associated with the consolidation of security and defense in the region. To study die construction and development of Mong Cai border-gate economic zone and Van Don economic zone into a center linking the region and an important hub in the coastal corridor in trading with China.

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VII. SOLUTIONS TO IMPLEMENT THE MASTER PLAN

1. Fields prioritized for development:

To bring into play the special strengths of the region that accommodates Hanoi capital, a hub of domestic and international-route trunk roads, railways and airways to expand inter­regional cooperation in sharing infrastructure, trade, cultural exchange, scientific research and technology transfer, human resource training and utilization, tourism development and international cooperation.

- To complete an appropriate policy and mechanism system to promote the regional economic development; to create a transparent and fair competitive environment for businesses; and to reform administrative procedures.

- To build a synchronous infrastructure system with focus on transport network to create linkages among localities in the region and adjacent areas, the irrigation network to serve paddy cultivation and aquaculture as well as works to prevent and mitigate the impacts of global climate change.

- To raise the quality of education-training and vocational training and quickly develop highly skilled human resources to meet the region’s development demands and drive up other regions. To combine human resource development and the application of science and high technology to production to increase productivity and products’ quality and value.

- To continue the administrative reform, create an equal competitive environment for economic sectors and build an open investment environment to attract foreign investment.

2. Mobilization and effectively use of investment capital:

- To effectively mobilize and use state capital to develop socio-economic infrastructure, human resources, science and technology, protect the environment and implement national target programs. To earmark budgets for important infrastructure development works, projects that are difficult to attract foreign investors; to increase the mobilization of investment capital in BOT, BTO and PPP forms, especially in the transport sector.

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- To continue promoting FDI attraction in line with integration process. To renew foreign investment promotion activities with focus on sectors with the region’s advantages and potential partners, especially developed nations, and concurrently expand cooperation with partners that have invested in the region.

3. Comprehensive solution groups on restructuring and raising the competitiveness of economic sectors and major products:

- Accelerating the economic restructuring: To focus on developing industries with comparative advantages and high added value, gradually reduce the proportion of mining, preliminary processing and processing. To prioritize the development of quality and highly specialized services that create more jobs and raise income such as finance-banking, telecommunications, information technology, tourism, trade and logistics.

- Developing human resources: To combine human resources development and orientations for socio-economic development and labor market requirements. To improve labor quality and raise the rate of trained workers and workers in sectors manufacturing exports and fields of hi-tech industries. To adopt mechanisms to encourage foreign experts and scientists and overseas Vietnamese to consult socio-economic development issues in each locality and the whole region.

- Stepping up and improving the quality of science and technology research and application: To combine science and technology tasks and socio-economic development targets with immediate focus on training human resources that can master new technologies for practical application, and concurrently attract high-quality foreign human resources for scientific application and advanced technology development.

- Developing economic sectors: To continue improving business environment toward openness and equal competitiveness among economic sectors. To support businesses in information access, market integration and expansion. To take advantage of the assistance of Vietnamese representative offices overseas in market information and seeking foreign partners during the cooperation process; to provide information and assist businesses so as to minimize emerging negative impacts during the integration process. To promote market research and trade promotion work; to encourage domestic enterprises to build and develop trademarks.

- Administrative reform and improving the quality of cadres and civil servants: To improve the quality of public administrative services; to publicize procedures and time of handling in various forms for people and enterprises to monitor and assess. To continue improving the quality of one-stop-shop mechanism in handling organizations and citizens’ affairs. To widely apply the one-stop shop mechanism among departments-sectors, among departments-sectors and the People’s Committees of districts, wards and communes in settling administrative procedures. To widely apply information technology and modernize administration.

4. To promote the coordination among localities in and outside the region in investment promotion, resources mobilization and distribution and socio-economic infrastructure construction; training and job generation; scientific research and technology transfer; building inter-provincial and -regional tourism programs and routes; information provision and building socio-economic database to serve forecast work and coordination in environmental protection and response to climate change.

5. Completion of implementation mechanisms:

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- To raise the quality of coordination among ministries, sectors and localities in the region; to formulate specific action programs and assign responsibilities together with the assessment of coordination among agencies in implementing the master plan.

- To annually organize the region’s business forum to boost direct exchange and dialogues between investors and provincial-level authorities in the region.

- To study, formulate financial mechanisms and specific budgets for the Hanoi Capital to create resources for Hanoi to invest in infrastructure development so as to promote socio-economic development in the Capital and the whole region.

Article 2. Organization and supervision of the master plan implementation

1. After approved, the master plan on socio-economic development of the northern key economic region will be the foundation for formulating, submitting for approval and implementing the region’s sectoral master plans; and reviewing master plans on socio­economic development of localities in the region.

2. To assign the Ministry of Planning and Investment to assume the prime responsibility for, and coordinate with ministries, sectors and localities in the region in:

- Making public the master plan and organizing investment promotion activities and conducting public information work to attract the participation of domestic and foreign investors and all economic sectors in the master plan;

- Monitoring, urging, supervising and examining the implementation of master plans of the region and of ministries, sectors and localities in the region; supervising the implementation of the region’s major investment programs and projects.

- Studying and proposing mechanisms and policies for coordination among localities in the region and with other regions. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related ministries and sectors, in calling for investment in the region’s key projects.

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- Study, formulate and submit to competent state agencies for promulgation a number of specific mechanisms and policies as mentioned in Clause VII, Article 1 of this Decision so as to successfully implement the targets and tasks set in the master plan.

- Coordinate with the Ministry of Planning and Investment in implementing and supervising the implementation of the master plan, and supervising the implementation of regional key investment programs and projects in priority order under their respective management so as to promote the region’s socio-economic development.

Below are specific tasks of ministries and sectors:

a/ The Ministry of Transport:

- To direct the construction and on-schedule completion of important transport works in the region; to propose a mechanism for raising capital for large-scale transport development projects in the region.

- To supervise the implementation of transport infrastructure development in conformity with the approved master plan.

b/ The Ministry of Agriculture and Rural Development:

- To formulate, submit for approval and organize the implementation of master plans on rural and agricultural development; master plans on building and developing rural infrastructure facilities and assigned sectoral development master plans; to invest and attract investment in projects to tap regional potential and advantages; to manage and prioritize hi-tech and environmentally friendly development projects in order to increase productivity, quality and efficiency.

- To complete the construction and reinforce irrigation and dike systems; to guide the production of agricultural and seafood products in the region. To propose mechanisms and policies to be applied to, and support localities in the region in building, hi-tech agricultural zones.

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- To guide and create appropriate mechanisms for a number of universities in modernizing their physical foundations and developing their lecturing staffs and training programs up to advanced countries in the region.

- To assume the prime responsibility for, and coordinate with related ministries and sectors and Hanoi city in, building Hanoi city into a key high-quality human resource education-training center for the whole country.

d/ The Ministry of Industry and Trade:

- To direct on-schedule construction and zone off electricity centers and power grids in the region. To direct and coordinate with related localities in building networks of regional-level wholesale marketplaces and trade centers.

- To coordinate with ministries and sectors in formulating a strategy to develop trademarks of Vietnamese goods to serve economic development, especially to expand export outlets for Vietnamese goods to compete and integrate into international economy.

dd/ The Ministry of Natural Resources and Environment: To assume the prime responsibility for, and coordinate with related localities in, responding to climate change and sea level rise; to direct and coordinate the protection and reasonable use of natural resources, minerals and water sources in localities in the region; to direct and coordinate with localities in protecting national parks and nature reserves and biodiversity conservation.

e/ The Ministry of Construction: To assume the prime responsibility for formulating, examining and supervising the construction of regional-level hazardous waste treatment zones, cemeteries and water supply systems; to coordinate with localities in building water drainage and wastewater treatment systems so as to gradually deal with inundation in urban centers.

g/ The Ministry of Science and Technology: To direct and coordinate in science- technology development and application in the region; to build and raise scientific- technological capacity of scientific research institutes and training establishments in the region; to coordinate in building hi-tech parks in the region.

h/ The Ministry of Labor, War Invalids and Social Affairs: To direct and coordinate with related localities in building the system of vocational training centers, especially regional-level high-qualification training centers.

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4. The People’s Committees of the provinces and centrally-run cities in the region:

- To coordinate with ministries and sectors in organizing investment promotion activities and conducting public information work to attract domestic and foreign investors as well as different economic sectors to participate in the master plan implementation.

- Provinces and cities in the region shall actively review detailed master plans, investment programs and projects; to include this master plan in their five-year and annual socio-economic development plans in conformity with targets and tasks as mentioned in this Decision.

- To supervise and examine the implementation of development investment projects in their localities according to their assigned functions and report implementation results to the Prime Minister.

Article 3. This Decision takes effect on the date of its signing.

Article 4. The chairpersons of the People’s Committees of the provinces and centrally run cities in the northern key economic region, ministers, heads of ministerial-level agencies and heads of government-attached agencies shall implement this Decision.

PRIME MINISTER




Nguyen Tan Dung

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APPENDIX

LIST OF PROGRAMS AND PROJECTS PRIORITIZED FOR INVESTMENT STUDY IN THE NORTHERN KEY ECONOMIC REGION THROUGH 2020
(To the Prime Minister's Decision No. 198/QD-TTg of January 25, 2014)

No.

NAME OF PROGRAM OR PROJECT

I

Transport infrastructure

1

Roads:

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- The system of belt road 3 (Hanoi); to invest in a number of sections on belt road 4 (Hanoi, Bac Ninh and Hung Yen) and belt road 5 (Hanoi, Bac Ninh, Hung Yen and Hai Duong);

- To invest in, upgrade and expand national highway 1A to have 4 lanes;

- To build the coastal roads along sea dikes (Hai Phong and Quang Ninh); to study the construction of coastal highways linking the northern key economic region and the southern Red River delta;

- To build Hanoi radial axes: national highways 2, 3, 5, 6, 18 and 32.

2

Airways:

- To build terminal T2 of Noi Bai international airport;

- Cat Bi international airport;

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- To upgrade and build Gia Lam airport.

3

Seaports:

To build Lach Huyen international gateway seaport, Hai Phong city.

4

Inland waterways:

To upgrade and build a number of major ports and cargo and passenger wharves.

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Railways:

- To speed up the progress of the Yen Vien - Pha Lai - Ha Long - Cai Lan railway project;

- To upgrade and modernize the north-south railway to reach grade-I national railway standards;

- To upgrade the Hanoi - Hai Phong railway;

- To build Hanoi urban railway system; and the Hai Phong - Lach Huyen railway.

II

Electricity supply infrastructure

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- To apply information technology to the management and operation of the national power grid; to develop smart power grids in large urban centers of Hanoi and Hai Phong.

III

Agricultural and rural development infrastructure

- To further consolidate, protect and upgrade sea dikes and river dikes in order to proactively prevent and control floods, storms, sea level rise and climate change; to combine dike systems with roads.

- To upgrade and modernize the capacity of key irrigation systems for Bac Hung Hai, Nhue river, and northern Duong river, and the system of canals, ditches and key irrigation works;

- A program to upgrade reservoirs and dams.

- Projects on fishery infrastructure, fishing ports and storm shelters in coastal localities in the region.

IV

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- To build a number of high-quality universities up to international standards in Hanoi. To relocate a number of universities and colleges from the inner city area of Hanoi to satellite urban areas and provinces in the region;

- To develop networks of vocational training establishments under planning; to prioritize investment in 11 high-quality vocational training schools with regional- and international-level occupations.

V

Health, sports and physical training

- A program to develop a system of preventive health establishments; to upgrade the provincial hospital system; to develop the Medical University of Hanoi and Hanoi University of Pharmacy.

- To build a number of large and modem cultural and sports facilities in Hanoi and some major cities of the region.

VI

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- To build a national key information technology zone;

- E-government programs in the provinces and centrally ran cities in the region;

- To build the Soc Son waste treatment complex, phase II (Hanoi) and the solid waste treatment zone in Hoanh Bo (Quang Ninh);

- To build and complete daily-life solid waste collection and treatment systems for urban centers;

- Programs to supply water for Hanoi, Hai Phong, Quang Ninh, the Hanoi-Hai Duong and Hanoi-Chi Linh-Pha Lai economic corridors, and coastal areas;

- To build Da river surface-water plant, phase II, to reach a capacity of 600,000 m3/ day and night;

- A program on wastewater drainage and treatment for urban centers;

- A program on water drainage to prevent and control inundation for urban centers.

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Other sectors

- A program to develop spearhead industries and supporting industries; to build plants producing combined steel, high-quality steel and special-use steel for supply to mechanical-manufacturing industries and supporting industries in Hai Phong and Quang Ninh;

- A logistics development program;

- To complete the construction of key tourist zones of the region;

- A program to build social houses in Hanoi and major cities in the region;

- A marine and island economic development program;

- A program to study the exploitation of brown coal;

- The Northeastern islands’ defense economic zone (Quang Ninh).

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(*) Công Báo Nos 163-164 (01/02/2014)

Quyết định 198/QĐ-TTg năm 2014 phê duyệt Quy hoạch tổng thể phát triển kinh tế - xã hội vùng kinh tế trọng điểm Bắc Bộ đến năm 2020, định hướng đến năm 2030 do Thủ tướng Chính phủ ban hành