Laws of Vietnam

Article 1.- To approve the scheme on socio-economic development in Van Don economic zone, Quang Ninh province, with the following principal contents:

I. Position, role and functions of Van Don economic zone

1. The scope of Van Don economic zone

Van Don economic zone embraces the whole Van Don island district, Quang Ninh province; it borders on Tien Yen and Dam Ha districts to the north and northeast, on Co To district to the southeast, and on Cam Pha town and Ha Long city to the west. Van Don economic zone consists of one township and 11 communes, with more than 600 islands and islets lying within Bai Tu Long bay.

2. Position and role

- It is an eastern economic center of Quang Ninh province and the Red river delta.

- It is one of important gateways for international trade exchange in the northeastern region.

- It occupies an important defense and security position in North Vietnam.

3. Functions

- It is a high-quality island-sea eco-tourist center, a high-class service center and a large-scale sea and air transport center of great significance to Vietnam's northeastern region.

- It is a driving force for the development of the northern key economic region and the whole North Vietnam.

- It is a firm outpost in Vietnam's northeastern region.

II. Development objectives

- To become a high-quality island-sea eco-tourist center, an international air transport center, a high-class service center, and an international trade center, making great contributions to economic growth and sustainable development of Quang Ninh province.

- To ensure security, national defense and social order and safety and to firmly maintain national sovereignty and territorial integrity.

III. Development viewpoints

- The development of Van Don economic zone should be closely combined with, and be a driving force for, the development of Quang Ninh province and the whole northern region.

- The development of Van Don economic zone should be closely combined with the development of neighboring areas such as Ha Long city, Cam Pha town, Mong Cai town, and the districts of Co To, Dam Ha, Tien Yen, etc., with a long-term vision and appropriate steps toward 2020 taken into consideration.

- Sustainable development should be assured with a proper balance between high economic growth rate and settlement of social issues and protection of ecological environment so as to ensure immediate as well as long-term socio-economic benefits.

- Appropriate development steps should be selected and prioritized so as to form a modern and long-lasting general economic zone with a rational and sustainable economic structure.

- The operation of Van Don economic zone should be managed and directed in a uniform, centralized and resolute manner so as to ensure its sustainable development, feasibility and proactivity.

- Socio-economic development should be combined with environmental protection, preservation and promotion of cultural heritages, contributing to maintaining security and defense and preserving political stability and social order and safety in the locality.

IV. Orientations for socio-economic development in the economic zone

1. Basic development orientations of the economic zone

- To focus on developing high-quality sea-island eco-tourism with numerous unique, diversified and attractive tourist products.

- To build a modern international airport to meet the development requirements of Quang Ninh province and Vietnam's northeastern region.

- To form modern seaports to primarily serve tourism and service provision.

- To build high-class service centers such as financial and banking centers, restaurants and hotels.

- To develop fisheries, paying attention to culturing specialty marine and aquatic animals such as pearl oysters, abalone, snout otter clam, noble scallops, etc. in service of high-quality tourism; to build some fishing service establishments while conserving tourist space and protecting the marine ecological environment.

- To develop modern scientific and technological application establishments, first of all, for the development of clean industries, processing of high-quality seafood, and industries in support of tourism, services and transport.

- To build fine and modern garden-sea urban centers imbued with national straits.

2. Development orientations

a/ For the 2006-2010 period:

Efforts shall be concentrated on building complete infrastructure so as to create a premise for fast economic development.

The average growth rate of GDP will be around 20-26%/year; the average per-capita GDP is estimated to be equal to two-thirds of the average figure of the province in the same period; the average per-capita GDP will be around USD 880-1,000 by 2010.

By 2010, the shares of service-industry-agriculture, forestry and fisheries will be 48.2% - 20.8% - 31%, respectively, in the economic structure.

The ratio between non-agricultural sector and agricultural sector will be 2.1 to 1.

The comparative coefficient between the growth rate of services and that of production will be 1.5.

The construction of key works will be basically completed: To make detailed plannings on, commence and complete the construction of, some structures in airports and seaports, some tourist resorts and main roads running across Cai Bau island, to complete electricity-supply and telecommunications systems.

b/ For the 2011-2015 period:

This is the period when the construction of infrastructures will be completed.

The average growth rate of GDP will be around 18-22%/year; the average per-capita GDP is estimated to equal the average figure of the province in the same period; the average per-capita GDP will be around USD 3,600-5,000 by 2015.

By 2015, the shares of service-industry-agriculture, forestry and fisheries will be 58.8% - 31.7% - 9.5%, respectively, in the economic structure.

The ratio between non-agricultural sector and agricultural sector will be 9.6 to1.

The comparative coefficient between the growth rate of services and that of production will be 1.27.

Phase-1 construction of airports, seaports and Cai Rong urban center will be completed while the building of some tourist sites will be basically finished and the systems of traffic roads, electricity supply and water supply will be perfected.

c/ For the 2016-2020 period:

This is the period of completed construction

The average GDP growth rate will be around 14-16.5%/year; the average per-capita GDP is estimated to be higher than the average figure of the province in the same period; the average per-capita GDP will be around USD 15,000 -18,000 by 2010.

By 2020, the shares of service-industry-agriculture, forestry and fisheries will be 68.5% - 27.4% - 4.1%, respectively, in the economic structure.

The ratio between non-agricultural sector and agricultural sector will be 21.7 to 1.

The comparative coefficient between the growth rate of services and that of production will be 1.35.

The construction of Van Don economic zone will be basically completed.

3. Building infrastructure as a breakthrough

- To build airports and develop air transport:

It is planned to build an airport with a runway of 3.5 km long, capable of receiving modern aircraft. Its capacity will be 500,000-800,000 passenger arrivals/year in the initial period and 3-3.5 million passenger arrivals/year in the 2016-2020 period. In addition, the construction of some helicopter airports in islands with favorable conditions will be studied.

- To build seaports and develop ocean shipping:

To invest in the construction of Van Hoa seaport with a handling capacity of over 1 million tons/year in service of cargo and passenger transport. In the first phase, to build this seaport for ships of up to 5,000 tons and in the following phase (up to 2015) for ships of up to 10,000 tons.

In addition, to invest in the upgrading and extension of Cai Rong, Quan Lan, Con Trui, Thang Loi and Cong Yen ports; to build Hon Hai port; and to study the building of a fishing port adjacent to Cua Ong.

- The road network:

To invest in the construction of arterial roads, including roads running across islands, inter-commune roads and bridges.

+ To build Van Tien bridge linking Van Don district to Tien Yen district (in the area near Mui Chua port).

+ To build an expressway and bridges linking Ha Long-Mong Cai expressway to Van Don economic zone.

+ To study the building of an expressway and bridges linking Cua Ong-Van Tien-Tien Yen to Van Don economic zone.

+ To study the building of roads and bridges linking Cai Bau island to Ban Sen, Quan Lan and Minh Chau through Bai Tu Long strait.

+ To invest in the building of three roads running across Cai Bau island; inter-commune roads and trunk roads on islands; and roads linking commune clusters' centers to villages, hamlets, tourist resorts and population quarters.

- Power supply system:

+ To install the second loop of the 35-kV Cua Ong-Van Don power transmission line by 2010. To triple the capacity of Cai Rong intermediate station. To upgrade the middle-voltage power network in Cai Bau area to 22 kV from current 10 kV. To perfect low-voltage transmission lines and transformer stations, ensuring that 100% of inhabitants in Cai Bau island will be supplied with electricity. To increase the capacity of diesel-fueled power stations, to install two wind-operated power stations in Ngoc Vung and Thang Loi, build low-voltage transmission lines and transformer stations so as to ensure that at least 80% of inhabitants in island communes will be supplied with electricity.

+ By 2015, to install a 110 kV transmission line from Mong Duong or Cua Ong to Van Don. To build a 22 kV transmission line from Cai Bau island to Ban Sen island, connecting Ban Sen-Minh Chau-Quan Lan to the national power grid.

+ After 2015, to build a 220 kV transmission line from Mong Duong to Van Don, install an intermediate station of 100,000-125,000 kVA so as to provide electricity to islands. To study the supply of electricity from the national power grid to Ngoc Vung and Thang Loi communes.

- Water supply system:

Local water sources shall be tapped to the utmost together with the supply of water from the mainland to islands.

+ By 2010, Van Don (Cai Bau island) will be supplied with around 5,000 m3 of water/day from Dien Vong water plant (Cam Pha), while natural water sources will be exploited in other islands.

+ By 2015, Cai Bau island will be supplied with around 20,000 m3 of water/day from Dien Vong water plant and, at the same time, Khe Ngai water dam will be built so as to supply 10,000 m3 of water/day for daily-life activities. For island communes, reservoirs and dams will be built so as to create water sources.

+ After 2015, apart from Dien Vong water plant, to invest in the construction of other reservoirs and dams so as to increase water sources and, if possible, to build a pipeline conducting water from the mainland to islands.

- Communications and post system:

To invest in and modernize post and telecommunications systems

+ In the period from now to 2015: To install mobile communication stations so as to ensure the coverage of radio waves for mobile communication in the whole locality. To build 10 commune postal-cultural points, provide communications services and triple the current number of fixed telephone sets. To hook up to the Internet as well as provincial and national networks.

+ The post-2015 period: To upgrade the post center of Cai Rong township into a modern post and telecommunications center. To cover the locality with domestic and international mobile communication waves.

- To develop high-quality sea tourism and air transport:

To build Van Don into a tourist center, comprising a high-class sea-island holiday resort; cultural tourism, eco-tourism; sea sports and recreation tourism, prize-winning games; transit tourism and a place for transshipment of domestic and international tourists.

To plan and invest in the building of three tourist clusters, including Cai Bau central tourist cluster, Ngoc Vung-Thang Loi tourist cluster and Quan Lan-Minh Chau tourist cluster.

4. Orientations for development of branches and domains

a/ Industries (including mechanical engineering, cottage industries and handicrafts): To develop hi-tech and clean industries to primarily serve tourism and turn out high-quality products. To prioritize the attraction of foreign investment in the production of industrial products for export. First of all, priority shall be given to the development of the following industries:

- Processing of farm and sea products.

- Electronics, manufacture of electrical equipment and home appliances.

- Software industry and biological industry.

b/ Agriculture, forestry and fishery: To develop agriculture, forestry and fishery toward diversification and sustainability along the line of combining goods production with processing industry, strongly changing the crop and livestock structure in accordance with ecological conditions in each island commune, and diversifying rural trades and services.

To make investment in intensive farming, change crop structures and raise the number of crops to two or three in areas where conditions permit; to upgrade and repair reservoirs and dams for irrigation; to cultivate new plant varieties; to reclaim unused land so as to increase cultivation land areas; to gradually increase kinds of food crops and short-term industrial plants with high economic value, and develop specialty trees.

To develop concentrated animal breeding, strive to make animal breeding a principal activity in agricultural production.

To invest in and protect the existing natural forests and zone off forests for regeneration so as to develop forests in terms of both acreage and density. To increase forest coverage to around 61-64%, ensuring the ecological environment. To plant trees to create beautiful landscape and greenery in urban centers, beaches and recreation and entertainment parks.

To develop fisheries into an important economic sector. To study the formation of provincial and regional fishing centers.

c/ Support services: To develop high-class, civilized and modern services which produce high economic yield. To prioritize the development of telecommunications, finance, trade and high-quality health care and counseling.

d/ Education and training: To develop an advanced education up to national standards with complete and modern material foundations and facilities so as to ensure high education quality. To build a vocational training system up to regional and international standards. To improve the teaching staff at all education levels both qualitatively and quantitatively. To work out plans on training high-quality human resources at provincial or central schools or in foreign countries when conditions permit.

e/ Healthcare: To build a complete healthcare system with modern equipment and facilities and highly-skilled medical workers up to national and international standards from district to commune and village levels.

f/ Physical training and sports: To build material foundations for physical training and sports in order to meet development requirements of physical training and sport movements. To concentrate efforts on some sports with high achievements. To step up socialization of physical training and sport activities.

g/ Culture and information: To develop the cause of culture and information toward modernization, diversification and imbuement with national identity. To build up a cultured lifestyle and a healthy spiritual life. To complete the formation of cultural and information networks from districts to communes and villages. To step up socialization in the culture and information domain.

h/ Radio and television: To raise the percentage of households having access to radio and television service from current 75% to 100% by 2015. By 2015, television service shall cover all districts and surrounding areas.

5. Orientations for organization of socio-economic space

a/ Development of core domains

- Unique high-quality relics: To build two large and high-quality tourist centers which are Cai Rong urban center and Quan Lan urban center.

- Airports and seaports: To build an airport in Doan Ket commune and form Van Hoa seaport.

- To build high-quality service establishments providing financial, banking and insurance services; hi-tech services, high-quality telecommunications services; high-quality medical establishments and hospitals; and modern apartment building.

- Fishing logistic service centers and marine services: To build fishing ports and fishing service establishments in area adjacent to Cua Ong and a fishing logistic service center in Dam Ha. To form a search and rescue center and a coast guard force.

b/ Urban space development: To organize marine ecological urban space with typical sea-garden urban centers, high-rises and modern services. In the period up to 2015, to invest in the construction of urban centers in association with trade and tourism, including Cai Rong central urban center (grade III), Doan Ket urban center (grade III), Quan Lan urban center (grade IV) and the centers and townships of Van Hoa, Ngoc Vung, Minh Chau, Ban Sen and Thang Loi.

c/ Industrial development: To develop clean industries (software, electronics, etc.) and aviation service industry in Doan Ket center. In Thang Loi island, to develop high-quality sea product-processing establishments.

d/ Tourism, parks and greenery development: In the main island, to build three tourist service centers with prize-winning entertainment games in forms of tourist resorts with 2-5 star hotels and hotels catering for the majority of people. To form Ngoc Vung, Quan Lan and Minh Chau tourist sites.

e/ Commercial development: To build trade centers in association with airports and urban centers. To form offshore wholesale markets adjacent to Cua Ong and Thang Loi island.

f/ Transport service development: To build service centers to serve tourism and daily-life activities in association with the airport in Doan Ket commune and the system of helicopter airports. To build high-quality ocean shipping service centers in Van Hoa and Cai Rong ports and other wharves. To study the construction of a fishing service center in the fishing port adjacent to Cua Ong or in Thang Loi island.

g/ Static traffic development: To make a planning on car parks; to develop bus and taxi transport and airway, land and seaway transport.

6. Land-use orientations

V. Implementation solutions

1. Investment solutions

To adopt appropriate preferential policies so as to call for and attract investment capital; make the full and efficient use of state budget support and credit sources; to encourage the development of partnerships and joint ventures with economic units inside and outside the province; to adopt policies to promote internal strengths, encourage all economic sectors, entrepreneurs and households to invest in production and business activities; to attract ODA and FDI capital sources; and depending on financial conditions and capability, to consider and apply other capital raising measures such as issuance of government bonds or capital mobilization in the forms of BOT, BT, BTO, etc.

2. Development of human resources

To raise the quality of local human resources through formal and in-service training, expanding vocational training centers, increasing the training of leaders and managers. To adopt preferential treatment policies to attract qualified and skilled laborers from other localities.

3. Orientations for formulation of mechanisms and policies

a/ Managerial mechanisms: It is necessary to study a specific and appropriate management mechanism for Van Don economic zone in response to its requirements and characteristics. The Prime Minister shall decide on the setting up of Van Don Economic Zone Management Board;

b/ Preferential mechanisms and policies:

- Preferences regarding investment attraction, land and surface rentals, remittance of profits abroad and reinvestment shall be granted in accordance with the Investment Law;

- High independence in foreign trade activities;

- Application to other provincial-level economic zones throughout the country;

- Other preferences.

c/ Policies on land and real estate:

- Land policies shall comply with the Land Law;

- Land shall be concentrated and shall not be allocated to isolated projects occupying small land areas;

- Individuals and economic organizations at home and abroad shall be allocated or leased land at the highest preferential rates for building infrastructure and developing production and business activities;

- The State shall support investment in technical infrastructure so that land with complete infrastructure shall be allocated to investors at preferential rates;

- The prices for transfer of land-use rights and land sub-lease shall comply with the market mechanism.

- Vietnamese, overseas Vietnamese, foreigners permanently residing in Vietnam and foreign investors shall be allowed to invest in the construction of dwelling houses for sale or lease; invest in the construction of infrastructure in order to lease land together with infrastructure in Van Don economic zone in accordance with the purposes of each project and with the Land Law.

d/ Financial policies: To adopt policies to regulate revenues between the central budget and local budget according to the provisions of the Law on State Budget so as to increase investment capital sources for Van Don economic zone.

4. Management and direction

a/ Administrative organization: To form Van Don Economic Zone and promulgate its Operation Regulation. In the economic zone, there shall be administrative units organized after the models of central city, township and commune;

b/ Management regulation: The plan on organization and apparatus of Van Don Economic Zone Management Board shall be submitted by the provincial People's Committee and the Ministry of Home Affairs to the Prime Minister for approval. The Ministry of Home Affairs shall approve its annual payroll.

Article 2.- To assign the People's Committee of Quang Ninh province to base itself on the objectives, tasks and orientations on socio-economic development in Van Don economic zone stated in this scheme after it is approved to coordinate with concerned ministries and branches in directing the formulation, submission for approval and performance of the following tasks:

- Formulating the Regulation on operation of Van Don economic zone for submission to the Prime Minister for consideration and approval.

- Coordinating with the Ministry of Home Affairs in formulating the scheme on setting up Van Don Economic Zone Management Board, together with its functions, tasks, powers and organizational structure, for submission to the Prime Minister for consideration and decision.

- Adjusting and supplementing the master plan on socio-economic development of Quang Ninh province in accordance with the development objectives of Van Don economic zone.

- Introducing, disseminating and publicizing the scheme and overall planning on development of Van Don economic zone.

- The People's Committee of Quang Ninh province and Van Don Economic Zone Management Board are permitted to hire capable foreign consultants (when necessary) to participate in formulating the general construction planning and detailed construction plannings for important areas.

- Directing the formulation and submission for approval of land-use plannings, general construction plannings, detailed construction plannings for functional zones and investment projects in Van Don economic zone according to current regulations.

- Approving annual lists of development investment projects and capital construction plans in Van Don economic zone.

- Directing and facilitating Van Don Economic Zone Management Board to operate and perform its assigned functions, tasks and powers.

- Directing the People's Committee of Van Don district to properly perform the work of ground clearance; direct functional agencies to coordinate with Van Don Economic Zone Management Board in settling issues related to development investment, management and operation of Van Don economic zone.

- Adopting solutions and making plans on mobilization of capital sources, working out measures to make investment in while exploiting land funds so as to create revenue sources for reinvestment in service of socio-economic development of the economic zone. During, in the 2006-2010 period, it is necessary to adopt specific policies to mobilize and attract investment capital for each project or domain, including, first of all, policies on mobilization of sources from exploitation of land funds and mobilization of investment capital from all economic sectors, enterprises and investors inside and outside the province as well as foreign investors.

- Studying and promulgating or submitting to competent state agencies for promulgation (for matters falling beyond its competence) specific mechanisms and policies to mobilize and efficiently use resources, encourage and mobilize investment so as to ensure the fulfillment of objectives, tasks and orientations for socio-economic development of Van Don economic zone.

Article 3.- To assign concerned ministries and branches to perform the state management of Van Don economic zone, to coordinate and support the People's Committee of Quang Ninh province and Van Don Economic Zone Management Board in formulating, adjusting and supplementing the aforesaid regulations, schemes and planning and in formulating and submitting to competent state agencies for promulgation specific mechanisms and policies to be applied to Van Don economic zone; to speed up investment in and execution of regional works and projects which are important to the development of Van Don economic zone and in which investment has been decided; to study the adjustment and supplementation of sectoral development plannings and investment plans with works and investment projects to be built or carried out in Van Don economic zone.

Article 4.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 5.- Ministers, heads of ministerial-level agencies and Government-attached agencies, the president of the People's Committee of Quang Ninh province and the head of Van Don Economic Zone Management Board shall have to implement this Decision.