Industrial encouragement activities to be promoted by increasing state budget capital to create new impetus for rural industrial development in Vietnam?

There are still localities facing economic difficulties in Vietnam. Farmers work around the clock without income. Does the Government of Vietnam have any priority to encourage industrial development in economically disadvantaged areas?

What are the industrial encouragement activities for organizations and individuals of all economic sectors in Vietnam?

Pursuant to Article 3 of Decree 45/2012/ND-CP stipulating the purposes of industrial encouragement activities as follows:

Article 3. Objectives of industrial encouragement activities
1. Mobilizing domestic and overseas resources to directly invest in or support organizations and individuals engaged in industrial or handicraft production.
2. Contributing to economic restructuring towards industrial and handicraft development, aiming to create jobs, increase incomes, restructure the social workforce and contribute to the building of a new countryside.
3. Encouraging and supporting cleaner production at industrial production establishments, in order to improve the use efficiency of natural resources, raw materials, fuels and supplies; minimizing emissions and reducing pollution increase rate; and protecting and improving the quality of the environment and human health.
4. Supporting organizations and individuals of all economic sectors in investing in the sustainable development of industrial and handicraft production for the purpose of raising the competitiveness and efficiently implement the international economic integration plan.

Thus, the implementation of industrial promotion activities is the basis for achieving the above-mentioned purposes.

Industrial encouragement activities to be promoted by increasing state budget capital to create new impetus for rural industrial development in Vietnam?

What are the principles of industrial encouragement activities in areas with difficult socio-economic conditions in Vietnam?

Pursuant to Article 6 of Decree 45/2012/ND-CP stipulates as follows:

Article 6. Priority principles
1. Prioritized areas: prioritizing programs and schemes implemented in localities facing difficult and extremely difficult socio­-economic conditions specified by law; the communes in the national target program on building new countryside; highland, island and bordering districts; ethnic areas and poor districts under the Government's regulations.
2. Prioritized industries and trades:
a/ Prioritizing programs and schemes supporting the development of mechanics and chemical industries serving agriculture and rural area; agricultural, forestry and fishery product processing industries; ancillary industries; and the application of cleaner industrial production;
b/ Prioritizing programs and schemes supporting the development of typical rural industrial products; products in the programs on developing key industrial products and pivotal industries; national, regional, and local key industries; the manufacture of products for export; and labor-intensive production using local raw materials.
3. Prioritizing budget for the programs and schemes specified in Clauses 1 and 2 of this Article so as to attract investment in industrial and handicraft development and cleaner production to prioritized localities, industries and professions.

According to the above principle, the industrial promotion program will have two types of priority: priority by location and priority by industry. Accordingly, areas with difficult and especially difficult socio-economic conditions will be given priority to implement the Industrial encouragement activities.

Will the capital increase to support the industrial encouragement activities in localities in Vietnam?

On June 15, 2022, the Ministry of Industry and Trade issued Official Letter 3384/BCT-CTDP in 2022 guiding the strengthening of direction and implementation of industrial promotion activities in the area. According to this Official Letter, the Ministry of Industry and Trade has requested the municipalities to direct the implementation of the following contents:

"1. Review, amend, supplement and complete the system of legal documents on industrial promotion in the locality; formulate and approve the local industrial promotion program for the period up to 2025 for implementation (for provinces and cities that have not yet been approved); study and develop technical and economic norms for industrial promotion activities to be applied in the locality.
2. The Department of Industry and Trade organizes the implementation of the approved plan for national industrial parks and local industrial promotion in 2022 to ensure progress, efficiency and compliance with regulations; supporting IT facilities to continue to overcome difficulties, recover and develop production and business in the post-Covid-19 period.
3. Orient the industrial promotion and support activities with a focus on key fields, products, potentials and competitive advantages of the region and locality, ensuring to maximize current resources and capacities of IT facilities; develop typical IT products, especially products that have been awarded the Certificate of typical IT products at provincial, regional and national levels; strive to build point projects.
4. Create conditions for the Department of Industry and Trade to promote its role of advising and helping the Provincial People's Committee to well perform the state management function about industrial promotion activities in the locality; strengthen the inspection, supervision and evaluation of the implementation of industrial promotion activities in the locality.
5. The field of industrial promotion includes activities of technical nature, suitable to the state management functions of the Department of Industry and Trade of Vietnam and associated with the support of IT establishments to invest in industrial production - handicrafts. Therefore, it is recommended that localities in the process of reviewing and arranging administrative organizations and public service providers, assign the Department of Industry and Trade to direct the attached public service providers to implement the tasks of industrial promotion. Consolidate the organizational apparatus, operation model, investment in facilities and working facilities for the implementing unit. Direct the construction of a system of industrial promotion collaborators at district and commune levels in order to help IT establishments more convenient in accessing industrial promotion policies.
6. Continue to increase capital from the local budget to implement the contents prescribed in Decree No. 45/2012/ND-CP of the Government or contents serving industrial promotion activities in the area; there is a harmonization between the local budget and the central budget in supporting and encouraging the development of IT. Evaluate and consider raising the level of financial support for local industry promotion for activities in order to attract more IT establishments to invest in production development.
7. Continue to promote information and communication on industrial promotion policies; strengthen forms of information technology application and digital transformation in communication work.”

Thus, the strengthening of industrial promotion activities in the area will be carried out according to the above guidance of the Ministry of Industry and Trade. Funds from the state budget to carry out industrial promotion activities will be enhanced.


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