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Providing guidance on the implementation of the list of industries which
are encouraged or limited or prohibited to invest in industrial zones and
high-technology industrial zones (IZs) (According to Circular N0 08/KHDT
of Ministry of Industry Date July 29th, 1997)
A- General Provision:
I. General principles: All industries which meet at least one of the
following requirements are generally encouraged to invest in the IZs.
1. Following the nation's major development plan, which did the government
approve.
2. Exploiting domestic potential and mainly using domestic materials
(including manufactured and semi-processed items or waste materials from
other industries).
3. Encouraging the development of other domestic entities and industries (to
provide or process production materials, machinery, equipment, machine parts,
semi-processed products, etc. to order sectors).
4. Producing items for export, or substituting for imported goods.
5. Using high technology, producing high quality and value-added items, and
using new materials.
6. Generating many jobs and high volumes of value-added products.
II. Industries, which are encouraged to invest:
1. The mechanical sector:
- Manufacturing equipment and machinery parts needed for the mechanization of
the agricultural sector, processing marine products.
- Manufacturing equipment and machinery parts for other industries:
+ Equipment, machinery for the metallurgical industry.
+ Equipment and machinery for the oil and petrochemical industry.
+ Equipment and machinery for the exploitation and processing of minerals.
+ Equipment and machinery for electrical power station, electrical and
technical instruments, tools, spare parts to serve electrification
programmed.
+ Equipment and machinery for the oil exploitation industry.
+ Equipment and machinery for the light industries (garment, footwear,
leather, plastic, canned and processed food).
+ Equipment and machinery for the mechanical sector.
- Manufacturing products for the transportation sector;
+ Production equipment, machinery parts for local development of the
automobile and motorbike manufacturing sector.
+ Building ships, train-wagons and other means of transportation, and spare
parts and tolls for repairing purposes.
+ Manufacturing transport equipment and lifting machinery (cranes,
lifting-struck, conveyor bells and popes), and warehouse equipment.
- Optical and precision equipment.
- Consumer electronic goods and mechanical products.
2. The metallurgical sector:
- Steel production:
+ Steel metallurgy (including manufacturing steel, mechanical item and metal
product).
+ Processed products.
+ Production of materials for steel metallurgy.
- Non-ferrous metallurgy:
+ Manufacturing and processing non-ferrous metals (aluminum, copper, zinc,
lead, etc)?
3. Electronics and information technology:
- Manufacturing electronic equipment and specializes electronics industrial
purposes (healthcare, measurement, automation)
- Manufacturing equipment using for telecommunication, broadcasting,
television stations, studios and offices.
- Manufacturing electronic components and parts.
- Manufacturing information technology equipment.
- Information services and software.
- Industrial electronic and specialized services.
4. Chemistry and petro chemistry:
- Producing basic industrial chemicals.
- Producing fertilizers and plant protective substances (biological
fertilizers and pesticides). - Petrochemical industry.
- Producing industrial gaze.
5. Consumer goods:
- Garment industry:
+ Producing textiles and wool.
+ Producing high quality fabrics.
+ Producing garments for export
- Producing footwear for export: high quality leather products.
- Paper industry: High quality papers (offset, art, craft, cigarette), and
packaging paper from recycled papers.
- Processing agricultural, forestry and marine products (sugar, milk, cooking
oil, sweets, canned juice, frozen foods).
- Plastic industry: producing plastic products, components and parts for
consumption and other industrial needs.
- Ceramic and glass industry: Producing high quality ceramic and glass
products, including technical ceramics, insulation ceramics, crystals, etc.
6. Other industries:
- Biological technology
- Producing clinical equipment and tools
- Producing healthcare medicines and veterinary medicines.
- Wood processing, producing plywood sheet or wood-subs tiring materials.
- Treatment of industrial waste.
- Producing sports equipment and instruments teaching aids and toys.
III. Industries, which are limited in investing in IZs:
- Production of ordinary construction materials (cement, brick, ceramic
pipes and components for drainage systems, etc).
- Cigarette production (excluding for export).
- Beer and alcohol production (excluding for export).
- Production of paint and detergent materials (excluding for export).
- Handicrafts and small-scale production industries (hand-made items made of
baboon, art work, etc.)
IV. Industries, which are, prohibited for investing in IZs:
- Nuclear power
- Production of radioactive material - Production of industrial explosives.
- Production of harmful chemicals (as stipulated by the State's list).
- Production of leathers and dyeing materials.
Notice: For those industries not included in this list, investment in IZs
will be guided by the Ministry of Industry and Vietnam's board of Management
of IZs, depending on projects and conforming to principles set out in section
A.I.
B. Specific instructions for forms of IZs:
I- In expert processing zones and export processing enterprises:
All points stipulated in section A to apply.
II- In high-technology industrial zones:
Industries with produce high-technology items, use modem and the latest
technology to substitute for imported items, or produce export products,
specifically:
1- To encourage investment:
- Mechanical sectors: Production of high-tech electrical equipment to serve
industrial sectors, applying computer added design (CAD) and computer added
management (CAM) technology, using numerically controlled (NC) technique and
robots. Design and manufacture of automatic control systems for industrial
factories. Etc. Manufacture of optical instruments, laser equipments and
instruments.
- Electronics and information technology: Production of electronic equipment,
industrial and specialized electronics, telecommunication equipment, using
digital technology, computers, electronic materials and components
(including) ASIC (advanced scale integrated circuit technology) and VLSI
(very large scale integration technology) optical and laser discs), and
software, etc.
- Production of new materials: super-clean, super-durable, super-conducting,
technical ceramics, new metal mixtures, new composite materials, carbon
fibers, polymer materials, etc.
- Production of new technological products.
- Biological technology (gene, cell, biology applied to agriculture,
forestry, pharmacy and food processing, etc.
- Other industries: air-transportation.
2. To invest in limited scales:
- Production of medicines.
3. Investment to be prohibited: Other industries stipulated in the A section.
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