To prioritize the implementation of industrial extension in areas with disadvantaged socio-economic conditions in Vietnam

To prioritize the implementation of industrial extension in areas with disadvantaged socio-economic conditions in Vietnam (Illustrative photo)

Article 6 of Circular 46/2012/TT-BCT details the areas, industries, and principles for prioritizing industrial extension as specified in Article 6 of Decree 45/2012/ND-CP. The prioritized areas include:

- Highland districts, islands, land border areas, and areas of ethnic minorities as per the current regulations of the competent authorities.

- Poor districts as specified in Resolution 30a/2008/NQ-CP dated December 27, 2008, of the Government of Vietnam on the Program to support rapid and sustainable poverty reduction for 61 poor districts.

- Areas within communes in the implementation plan of the National Target Program on New Rural Development, approved annually or per phase by provincial People's Committees.

- Areas with difficult and especially difficult socio-economic conditions as defined by Decree 108/2006/ND-CP dated September 22, 2006, of the Government of Vietnam providing detailed guidelines for implementing some articles of the Law on Investment.

It also specifies the industries prioritized for industrial extension including:

- Production of export market products: applies to production facilities with export contracts or production serving export.

- Production using local materials: applies to facilities using raw materials sourced from the province where the production investment is made, constituting over 50% of the value of raw materials.

- Rural industrial facilities employing many laborers, defined as facilities using 50 laborers or more.

- Supporting industry: applies to production facilities producing products in the list of supporting industrial products as per Decision 1483/QD-TTg dated August 26, 2011, of the Prime Minister on Issuing the List of Priority Supporting Industrial Products for Development.

- Notable rural industrial products are defined in Clause 4, Article 2 of Decree 45/2012/ND-CP, certified by competent authorities as per regulations of the Ministry of Industry and Trade.

Note: The principles for prioritizing industrial extension are as follows:

- Priority allocation of budget plans:

- By area: In the annual allocation of industrial extension budget plans, the program management agency prioritizes sources in the order specified in Points a to d of Clause 1 of this Article.

- By industry: In the allocation of industrial extension budget plans, priority is successively given to programs and projects specified at Point b, then Point a, Clause 2 of Article 6 of Decree 45/2012/ND-CP (excluding cleaner production in industrial manufacturing).

- When allocating annual industrial extension budget plans, depending on budget balancing capacity, the program management agency will prioritize budget allocation by areas first, then consider the sectors.

- For cleaner production activities, the prioritization by area and industry as stipulated in Point a, Clause 3 of this Article does not apply. Prioritization is based on the effectiveness and urgency of the project as determined by the program management agency.

- The priority funding levels for programs and projects in Clauses 1 and 2 of Article 6 of Circular 46/2012/TT-BCT are applied according to the guidelines of the Ministry of Finance and the Ministry of Industry and Trade of Vietnam.

More details can be found in Circular 46/2012/TT-BCT, which comes into effect in Vietnam from February 10, 2013.

Le Vy

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