DECISION

APPROVING THE MASTER PLAN ON SOCIO-ECONOMIC DEVELOPMENT OF CHU LAI OPEN ECONOMIC ZONE, QUANG NAM PROVINCE, UP TO 2020

THE MINISTER OF PLANNING AND INVESTMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Prime Minister's Decision No. 235/2006/QD-TTg of November 6, 2006, promulgating the Regulation on operation of Chu Lai open economic zone, Quang Nam province;
Pursuant to the Prime Minister's Document No. 922/VPCP-DP of February 16. 2009, assigning the Minister of Planning and Investment to approve and sign the decision on the master plan on socio-economic development of Chu Lai open economic zone, Quang Nam province, up to 2020;
Pursuant to the Government's Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones;
At the proposal of the chairperson of the People's Committee of Quang Nam province in Report No. 3100/TTr-UBND of August 25, 2009,

DECIDES:

Article 1. To approve the master plan on socio-economic development of Chu Lai open economic zone, Quang Nam province, up to 2020, with the following major contents:

1. Development viewpoints

a/ To develop Chu Lai open economic zone in line with the strategic vision for national socio­economic development and Vietnam's sea strategy under which Chu Lai open economic zone. Quang Nam province, is one of the development hubs of central Vietnam's sea area in connection with the development of western neighboring countries (Cambodia. Laos and Thailand) and in coordination with the Central Highlands and Dung Quat economic zone;

b/ To develop Chu Lai open economic zone, focusing on the non-tariff sub-zone, which accommodates a free trade sub-zone, associated with Ky Ha port and Chu Lai international airport, into a center of financial, banking, trade, tourism, telecommunications and other services of Quang Nam province and the central coastal region.

c/ To build and develop Chu Lai open economic zone on the basis of tapping and promoting to the utmost potential and advantages of the region, especially those related to sea tourism, airports and ports, and concurrently grasping new development opportunities of the entire region to create a breakthrough and strong motive for fast socio-economic development of the province and central Vietnam;

d/ To make the utmost use of opportunities and consideration of the State and investors, particularly foreign ones; to raise all domestic and overseas resources, especially overseas ones, for investment in large-scale works to create a development motive for Chu Lai open economic zone;

e/ To build and develop Chu Lai open economic zone with a long-term view of opening up for integration and conformity with international practice while adopting an appropriate roadmap to ensure high efficiency and feasibility;

f/ To develop Chu Lai open economic zone with a view to harmonizing local interests with sectoral and national interests and concurrently assuring economic, political, social, security, defense and environmental protection efficiency.

2. Development objectives

a/ General objectives:

- To build Chu Lai open economic zone into a multi-branch and -sectoral economic zone, focusing on the development of manufacture engineering and hi-tech intensive industries, Chu Lai free trade sub-zone (under the Prime Minister's Decision No. 185/2007/QD-TTg of December 3, 2007) associated with Ky Ha port and Chu Lai international airport, luxury beach resorts, an international training center, hi-tech sub-zone and financial and banking services, modern technical infrastructure and stable and long-term mechanisms and policies.

- To develop production of quality and highly competitive products; to boost exports and expand export markets.

- To create jobs and promote human resource training and quality.

- To build and develop Chu Lai open economic zone by 2020 into a dynamic development area, an industrial, tourist and service center of the central key economic region, speeding up industrialization and modernization of central Vietnam and the country.

b/ Specific targets:

-The production value will grow at43-43.1% during 2011-2015 and 61-61.5% during 2016-2020.

- Production value-based economic structure:

+ The shares of industry, service and agriculture will be respectively 42%, 38% and 20% by 2015 and 39.8%, 45.2% and 15% by 2020.

- The export value will reach around USD 30.5 million by 2015 and USD 335-340 million by 2020.

- State budget revenues will reach around VND 2.94-3 trillion by 2015 and VND 5.88-6 trillion by 2020.

- The number of employed laborers will reach around 50.000-51.000 by 2015 and 160,000-170,000 by 2020.

- The investment ratio will reach around USD 6-10 million/ha by 2015.

- Essential infrastructure will be built comprehensively, with priority given to the construction of Ky Ha port in combination with the upgrading of Chu Lai airport and infrastructure works to link the non-tariff sub-zone, industrial parks, tourist sites and urban centers.

- To strive that by 2015, Tam Hiep and North Chu Lai industrial parks will be fully occupied and one-third of the area of the non-tariff sub-zone, phase 1, will be occupied, mostly the free trade sub-zone; to completely build connecting infrastructure and main infrastructure of key urban centers and complete phase-1 construction of Chu Lai open economic zone.

- By 2015, Chu Lai open economic zone will account for around 38% of the production value, 45% of state budget revenues, 31-32% of the export value and employ 42-43% of laborers, of the province. The rates will be around 50%, 50-52%, 56-57% and 50-52%, respectively, by 2020.

3. Orientations for sectoral development up to 2020

a/ To develop tourism, trade and transport services and services for the development of a knowledge-based economy

- To develop various forms of marine and recreational tourism up to international standards and cultural, historical and resort tourism. To develop Bai Rang, Tam Hoa, Tam Tien, Tam Thanh and Thai Xuan Lake tourist sites and Nui Thanh cultural and historical tourist site. To develop Tam Hai tourist site into a tourist complex with luxury services up to international standards.

- To promote investment in building infrastructure facilities to develop the service sector such as information technology and software technology service centers; trade, export-import and international fair and exhibition center; center for production, subcontract production and processing of exports; and center for temporary import for re­export, border-gate transfer and transit of international goods.

- To build, and call for development investment under planning in, the non-tariff sub-zone, focusing on the free trade sub-zone, under the Prime Minister's Decision No. 185/2007/QD-TTg of December 3, 2007, on organization and operation of Chu Lai free trade sub-zone.

- To form centers for trade, export-import and international fair and exhibition; production, subcontract production and processing of exports; temporary import for re-export, border-gate transfer and transit of international goods; and financial, banking, insurance and logistic services in the free trade sub-zone.

- To develop port and sea and road transport services such as cargo and passenger transport, unloading, warehousing, repair, towage and salvage and air transport services, including transport of goods and domestic and foreign passengers and goods export and import: warehousing, delivery and aircraft repair.

- To develop services to train hi-tech workers and technicians; medical and healthcare services; housing and cultural services and other daily-life services for inhabitants and visitors.

- To prioritize services for the development of a knowledge-based economy such as post and telecommunications; information technology; science and technology; financial, banking and insurance services.

b/ To develop industries and form industrial parks

- To develop clean and hi-tech industries and concurrently attract investment in developing prioritized industries to generate employment for locals and meet demands of consumers and industrial parks and tourist sites.

- Industries prioritized for development include manufacture engineering; electronic and telecommunications equipment, information technology; products of new technologies; and production of high-grade building materials.

- To form and develop a hi-tech park and industrial parks:

+ By 2020, to have the industrial land area for lease fully occupied and have industrial establishments in industrial parks operated in high buildings to save land, to basically form the hi-tech park.

+ To form and develop key industrial parks in Chu Lai open economic zone, including 630-ha North Chu Lai industrial park which will accommodate 243-ha Truong Hai auto engineering complex; 1,915-ha Tam Anh industrial park; and 710-haTam Hiep industrial park and port logistics.

+ To build and develop 300-ha Tam Thang hi-tech park in Chu Lai open economic zone.

c/ To develop agriculture, forestry and fisheries

- To sustainably develop agriculture associated with processing industries and resettlement, land improvement and land use planning. To attach importance to developing and forming specialized sub-zones with industries supplying quality raw materials, vegetables, fruits and foods. To invest in and apply advanced sciences and technologies to plant restructuring and industrial-scale husbandry to raise land use efficiency.

- To conduct production research associated with the construction of a technical assistance center to support and transfer new techniques and technologies to inhabitants of resettlement areas. To develop services and tourism combined with traditional trades.

- To develop fisheries to enable inhabitants in Tam Hai, Tam Quang and Tam Giang communes to maintain their trades after they are relocated.

d/ To develop a number of social domains

- By 2020, the population will reach around 650.000, with urban inhabitants accounting for 45%.

- Laborers who possess technical or higher skills will account for 35-40% of the total workforce in Chu Lai open economic zone by 2015 and 60-65% by 2020.

- To generate employment for and improve the living conditions of households residing and resettling in Chu Lai open economic zone by providing technical and skill training for agricultural laborers and prioritizing recruitment of local trained laborers to work in Chu Lai open economic zone; and at the same time, expand step by step various services to help regional inhabitants change their trades and jobs.

- To develop education and training: To diversify training models; to step by step complete the system of educational material foundations. To plan the construction of a 295-ha training and vocational center in Tam Phu. To build Chu Lai international secondary school, a private university in Tam Phu (Tam Ky) and a high-grade vocational school.

- To build a central general hospital in Quang Nam. To build a high quality clinic in Chu Lai, Ky Ha.

- To build a monument to heroic Vietnamese mothers as a cultural work in Chu Lai open economic zone. To build cultural and sports centers in Nui Thanh, Tam Hoa. Tam Phu and Tam Anh urban centers.

- To build public utility works such as a fire prevention and fighting center, cultural parks and other socio-cultural works.

e/ To develop houses and public works

- To build houses together with developing public and service works such as kindergartens, schools, hospitals and other utility works. To pay attention to and prioritize those living and working in Chu Lai open economic zone.

- To form and develop Tam Phu (2,000 ha), Tam Hoa (1.640 ha) and Tam Hiep (215 ha) urban centers, to upgrade Nui Thanh into a grade-Ill urban center and develop other urban centers under approved planning.

- To completely build resettlement areas to meet ground clearance requirements for construction, including Tam Quang (86 ha), Tam Hiep (12 ha), Tram Market (23 ha), western An Ha-Quang Phu road (27 ha) and DT 617 (63 ha), and resettlement areas in Tam Hoa. Tam Tien, Tam Anh and Tam Thang.

- To prioritize new investment in resettlement areas west of the coastal youth avenue (110 ha); west of Truong Giang river (185 ha); resettlement areas for ground clearance of Tam Hai tourist site (200 ha), the free trade sub-zone (200 ha); and Tam Anh industrial park (110 ha), and cemeteries in Nui Thanh and Tam Ky (40 ha).

f/ To develop infrastructure

- To develop Chu Lai international airport under the Chu Lai international airport planning up to 2025 approved by the Prime Minister under Decision No. 543/QD-TTg of May 13, 2008, up to 4F-airport standards (standards of the International Civil Aviation Organization-ICAO) and grade-I military airport standards. The airport will annually receive 2.2 million and 4.1 million passenger arrivals and 1.5 million and 5 million tons of cargo by 2015 and 2025 respectively.

- To build a new transnational railway of 1.435 m gauge running through Chu Lai open economic zone to the southwestern. To adopt a plan to relocate Nui Thanh station out of central Nui Thanh township and build a new one to the southwestern to meet future demands for transport and urban development.

- To develop the road network:

+ To build Da Nang-Dung Quat expressway running through Chu Lai open economic zone to the west (east of Phu Ninh Lake) in parallel with the transnational railway.

+ To build national highway 1A overpass to ensure connection of trunk roads leading to Tam Hiep port with trunk roads in Chu Lai open economic zone.

+ To form a 17-km axial route crossing Chu Lai open economic zone (the central axial route east of national highway 1 A) connected with the national coastal tourist route and the road connecting Dung Quat economic zone.

+ To build feeder roads linking the expressway and national highway 1A with the axial route of Chu Lai open economic zone and the coastal tourist route with a total length of 80 km.

+ To build roads in urban centers and industrial parks under planning.

- To develop seaports

+ To plan and build Ky Ha port capable of accommodating 30.000-ton ships (including the harbor and logistics area of Tam Hiep port) and concurrently studying impacts of alluvia on the operation of the port to serve transport and tourism activities of Chu Lai open economic zone.

+ To build additional piers, wharves and warehouses to ensure the port's annual capacity of around 1.9 million tons by 2015 and 4.5 million tons by 2020.

- To develop inland waterways:

- To improve Truong Giang river into an inter-urban waterway to meet demands for tourism and cargo and passenger transport.

+ To build a system of wharves to receive passenger boats; and a system of wharves and fish ports to serve fishermen and seafood processors.

- To develop the power supply system:

The power supply source for Chu Lai open economic zone will be taken from the national power grid to 220/110 kV main low voltage stations in the region, from which 110 kV electricity will be transmitted to 110/22 kV stations for supply to the zone.

- To develop water supply and drainage, and wastewater and solid waste treatment systems:

+ Water supply:

To review and adjust the province's irrigation planning, to study the addition of Phu Ninh and Thai Xuan reservoirs to ensure their main functions of supplying water for agricultural and irrigation purposes and concurrently balancing water sources for Chu Lai open economic zone and Tam Ky city. To formulate projects to build dams and reservoirs in the region to ensure irrigation for agricultural crops and share the irrigation function of Phu Ninh and Thai Xuan reservoirs.

To survey and explore the use of groundwater to create additional supply sources (around 100.000 m3/day) for urban centers in the region. To plan high-pressure pump stations and a network of water pipelines and key works.

To strive to supply 150 liters of clean water/ person/day for 95% of the population by 2020.

+ Water drainage, wastewater and solid waste treatment: To build a wastewater treatment system in 4 main basins for drainage to Tam Ky, Truong Giang and Tan An rivers and Ky Ha and Thue Quan bays. Rainwater and daily-life and industrial wastewater shall be planned separately for treatment. Production and business establishments shall treat wastewater up to grade-A standards before discharging it into rivers and the sea. Wastewater and solid waste management and treatment must meet environmental standards.

To build a 30-ha solid waste treatment complex for Chu Lai open economic zone, comprising a plant to treat solid waste into quality organic fertilizer for agriculture; a landfill for organic solid waste (which cannot be used for fertilizer production), inorganic solid waste and non-hazardous industrial solid waste (which cannot be treated by burning); a furnace to burn hazardous industrial solid waste, a garbage treatment area and other auxiliary works.

Cemeteries will be built scatteredly to the west in Tam Hiep and Tam Nghia communes.

- Information and communications

+ To raise the capacity of the domestic and international postal service network, to make automatic mail sorting and postal services, to raise the value of added-value and new services.

+ To build an optical access network for industrial parks, Chu Lai airport. Ky Ha port, hi-tech park and tourist sites. The local network shall be laid underground to ensure urban beauty.

+ To build new service points and multi­service agents. To build a transaction and delivery center in Ky Ha port area.

+ To build a circuit switch network and optical cable lines of Nui Thanh-Tam Hoa and Nui Thanh-Tam Giang.

e/ Environmental protection and technological development

- To manage, exploit and reasonably and efficiently use natural resources (land, water, minerals and environment) in Chu Lai open economic zone to meet sustainable development requirements.

- To implement and complete soon Cua Lo embankment project, environmental protection projects in Tam Ky city and water supply projects.

- To mitigate pollution and tackle environmental degradation. To use natural resources reasonably, efficiently and sustainably. To quickly implement water supply projects in key areas. To formulate and call for investment in water supply projects in the zone.

- To completely solve problems in the wastewater collection and treatment. To build wastewater treatment stations in the open economic zone and gradually build a wastewater treatment system up to advanced standards in compliance with the environmental protection law and Vietnam standards. To systematically collect, transport and temporarily store industrial and hazardous solid waste and quickly find measures to treat them. To regularly analyze and supervise the environmental quality to ensure prompt remedy of environmental incidents.

4. Orientations for spatial development

a/ Spatial development for Chu Lai open economic zone: To firstly make concentrated investment in Nui Thanh area, focusing on the airport, seaport, industrial parks, free trade sub-zone, tourist sites and urban centers. To expand to the west and north of Chu Lai open economic zone. The existing area of the zone is 32,040 ha.

b/ For the non-tariff sub-zone:

Before 2015, to concentrate on developing the free trade sub-zone on around 400-600 ha in Tam Quang commune associated with Ky Ha port and Chu Lai airport; to make the fullest use of land in coastal dunes, hills and unused land in this area to increase land areas for construction.

c/ For the tariff sub-zone:

- To plan the use of land in functional sub-zones: industrial parks, warehouses, trade and service centers, tourist sites, recreational services, urban centers and administrative sub-zone.

- North Chu Lai (including the auto industrial complex) and Tam Anh industrial parks. Tam Hiep industrial park and Tam Hiep port logistics area and Tam Thang hi-tech park will be located along national highway 1A and adjacent to the expressway. The total area of hi-tech and industrial parks and warehouses will be around 3.000 ha.

- Trade and service centers will be located in urban centers.

- Tourist and recreational service sites will be located along the coast and Truong Giang river in Tam Hai, Tam Hoa, Tam Tien, Tam Thanh, Tam Quang and Tam Nghia communes.

- A 295-ha vocational and training, scientific research and health center will be located next to Tam Phu urban center.

- Tam Phu. Tam Hoa. Tam Hiep, Tam Anh, Song Dam and Nui Thanh new urban centers will be located in the center of Chu Lai open economic zone.

- Rural residential areas will be located in Tam Xuan I.

- Resettlement villages will be located west of Chu Lai open economic zone.

- Greeneries and parks of residential areas and urban centers and greeneries in residential units will be located in urban centers. Ecological and dividing trees will be located on the banks of Dam River. Tam Ky and Truong Giang reservoirs.

(See the list of key works and projects prioritized for investment study up to 2020 in Appendix 2)

5. Capital needs, funding sources and investment phases

a/ Investment capital needs: The total investment capital for infrastructure development of Chu Lai open economic zone during 2006-2020 is estimated at around VND 29-30 trillion, around 21 trillion of which will be for the 2011-2020 period.

b/ Funding sources include funds allocated and originated from the state budget, land funds, capital of enterprises and other lawful sources.

(See details in Appendix 1)

6. Major solutions for the master plan implementation

a/ Solutions for investment capital raising and use

The total estimated investment capital for the master plan implementation is large compared with the province's resources and central supports. To meet investment capital needs for the master plan implementation, the province should adopt a system of active measures to raise capital, tapping to the utmost the capital source from land, attaching importance to attracting capital from non-state economic sectors and socializing health, educational, sports and cultural domains. Specifically, to concentrate on the following major solutions:

- State budget funds will be mainly invested in main technical infrastructure, ground clearance support and important public service and utility works for Chu Lai open economic zone. The People's Committee of Quang Nam province shall coordinate with the Ministry of Planning and Investment, the Ministry of Finance and concerned agencies in allocating funds from target supports and central state budget for Quang Nam province to implement investment projects on important socio-technical infrastructure of Chu Lai open economic zone.

- To raise FDI capital and capital from enterprises and construction work bonds for large infrastructure investment projects key to the development of Chu Lai open economic zone.

- To prioritize ODA and preferential credit capital for building socio-technical infrastructure works and necessary public utility service works of Chu Lai open economic zone and other technical assistance.

- To attract investment capital in BOT. BT and BTO and other forms under law;

- To raise capital from land funds under the land law for developing common socio-technical infrastructure for Chu Lai open economic zone.

- To raise direct investment capital of domestic organizations and individuals, capital advances of future infrastructure users and capital of licensed technical infrastructure businesses.

- To encourage economic sectors and domestic and overseas enterprises to invest in infrastructure and urban center operation in Chu Lai open economic zone; industrial development, trade, finance, banking, service, tourism, transport, insurance, recreational, training, health, housing, sea port, export and import and other production and business activities under Vietnamese law and treaties to which Vietnam is a contracting party.

b/ Development mechanisms and policies

- To continue improving investment incentive mechanisms and policies applicable to Chu Lai open economic zone.

-To promulgate new regulations, mechanisms and policies to create a fair, favorable and internationally conformant investment and business environment for all forms of investment and business of domestic and overseas investors under the Prime Minister's Decision No. 253/2006/QD-TTg of November 6, 2006.

c/ Other solutions

- To promote and attract foreign direct investment.

- To develop and train skilled human resources.

- To develop sectors, territories and infrastructure outside Chu Lai open economic zone and plan on ground clearance, compensation and resettlement in Chu Lai open economic zone.

- To reform administrative procedures.

Article 2. The management unit of Chu Lai open economic zone shall, based on the targets, tasks and development orientations for Chu Lai open economic zone specified in the approved master plan report, assume the prime responsibility for. and coordinate with the People's Committee of Quang Nam province and concerned ministries and branches in. directing the elaboration, submission, approval and implementation of master plans and projects under regulations, which include:

1. The detailed planning on functional sub-zones to ensure overall and comprehensive development of Chu Lai open economic zone.

2. Works and development investment projects of Chu Lai open economic zone.

Article 3. assign concerned ministries and branches and the People's Committee of Quang Nam province to, within the ambit of their functions and tasks, coordinate with and assist Chu Lai open economic zone management unit in studying the elaboration and supplementation of master plans; studying, formulating and submitting to competent authorities for promulgation a number of mechanisms and policies on investment management and sources and making adjustments and supplements in response to Chu Lai open economic zone development requirements in each period to ensure the fulfillment of the development objectives, tasks and orientations for Chu Lai open economic zone specified in the master plan report and under this Decision.

To speed up investment in and operation of regional-scale works and projects important to the development of Chu Lai open economic zone in which investment has been decided. To study and consider adjusting and supplementing to branch development master plans and investment plans works and projects to be invested in Chu Lai open economic zone and projects decisive to the quick development of Chu Lai open economic zone, Quang Nam province, and the central key economic region.

Article 4. This Decision takes effect 15 days from the date of its signing.

Article 5. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, the chairperson of the People's Committee of Quang Nam province and the director of Chu Lai open economic zone management unit shall implement this Decision.

APPENDIX 1

TENTATIVE FUND RAISING PLAN
(To Decision No. 1522/2009/QD-BKH of October 16, 2009)

Table 1.Tentative plan on major investment funding sources

Table 2. Tentative plan on allocation of investment capital allocated and originated from the state budget

Notes: The tentative fund raising plan in the Appendix shall be calculated, adjusted and specified depending on the needs for and capacity of balancing and raising investment capital in each period.

APPENDIX 2

LIST OF KEY WORKS AND PROJECTS PRIORITIZED FOR INVESTMENT STUDY UP TO 2020
(To the Planning and Investment Ministry's Decision No. 1522/2009/QD-BKH of October 16, 2009)

Notes: The locations, sizes, areas and total investment of and funding sources for the above projects in the Appendix shall be calculated, selected and specified in the process of elaboration, submission and approval of investment projects, depending on the needs for and capacity of balancing and raising investment capital in each period./.