Decision No. 1012/QD-TTg dated July 03, 2015, approval for nationwide logistics center system development planning by 2020 and orientation towards 2030 The Prime Minister

DECISION

APPROVAL FOR NATIONWIDE LOGISTICS CENTER SYSTEM DEVELOPMENT PLANNING BY 2020 AND ORIENTATION TOWARDS 2030

THE PRIME MINISTER

Pursuant to the Law on Government organization dated December 25, 2001 dated December 25, 2001;

Pursuant to the Government's Decree No. 92/2006/ND-CP dated September 07, 2006 of the government on establishing, approving, and managing socio-economic development master plans; the Government's Decree No. 04/2008/ND-CP dated January 11, 2008 on amendments to some Articles of the Government's Decree No. 92/2006/ND-CP;

At the request of the Minister of Industry and Trade in Report No. 12065/TTr-BCT dated December 02, 2014 and Official Dispatch No. 3801/BCT-TTTN dated April 20, 2015,

DECIDES:

Article 1.Approval for nationwide logistics center system development planning by 2020 and orientation towards 2030, the primary contents of which are specified below, is granted:

I. VIEWPOINTS ON DEVELOPMENT

1. Develop logistics centers into pivotal service centers in circulation and distribution of goods which greatly aid in production, consumption of domestic goods, export and import, promote overall socio-economic development of the entire country.

2. Development logistics centers towards comprehension, professionalism, and modernity; reasonably associated with development of trade, industry, road transport, waterways transport, rail transport, and air transport, land-use planning, and planning for development of other socio-economic infrastructure systems of various regions in the country; gradually integrate into regional and global markets of logistics services.

3. Development logistics center on the basis of mobilized resources of the society, including resources from foreign investors. Ensure effective mobilization and use of resources for construction and operation of logistics centers nationwide.

4. Development logistics with foci on the basis of defined quantity, scales, locations of logistics centers appropriate for each stage.

5. Development logistics centers in a sustainable way in association with National defense and security, employment creation, reduction of the gap between different regions, saving farm land, environmental protection, green growth, and response to climate change.

II. DEVELOPMENT TARGETS

1. Development a network of logistics centers that satisfy demands of manufacturing and circulation of domestic goods, export and import. Effectively exploiting Vietnam’s logistics service market, especially outsourced, all-inclusive, and integrated logistic services, Apply third-party logistics (3PL) provider model in order to promote development of production and trade through minimization of costs and increase of value added of goods and services of enterprises. Gradually apply fourth-party logistics (4PL) provider and fifth-party logistics (5PL) provider models on the basis of development of electronic commerce and management of a supply chain in a modern, effective, and professional way.

2. By 2020, the growth rate of logistics services is expected to reach 24% - 25% per year, contribution to GDP 10%, ratio of outsourced logistics services 40%, ratio of logistics cost of the whole economy to GDP is expected to reduce by 20%. By 2030, these indicators are expected at 34% - 35% per year, 15%, 65% per year, and 15% - 17% per year.

III. DEVELOPMENT ORIENTATION

1. Development class I national logistics centers who play the roles of original centers. From such original centers, develop class II logistics centers of regions, sub-regions, and economic corridors, follow and aid in circulation of goods from production, import, to consumption, and export of the regions, sub-regions, and along economic corridors; connect to the system of sea ports, ICDs, airports, train stations, road transport network, national checkpoints, international checkpoints, and checkpoints economic zones, industrial parks, and concentrated manufacturing zones, etc.

2. Establish and develop special class logistics centers, firstly special class aviation logistics centers associated with airports, connect to the systems of class I and class II logistics centers for assistance, promote export, import, and transit of goods by multimodal transport to serve input and output of industrial manufacturing in industrial parks, high technology centers, and large-scale concentrated manufacturing areas.

IV. DEVELOPMENT PLANNING

1. The planning must:

a) be based on the capacity of the logistics services market to serve development of goods circulation, manufacturing, consumption, export and import in various regions of the country; ensure sufficient demand, high concentration, and stable and sustainable development;

b) provide convenient connection to transport systems; be appropriate for the transport infrastructure and transport corridors; ensure convenient use of at least a transport method among the network of multimodal transport;

c) ensure tight relationship with partners; connect to manufacturers, importers, ports, train stations, bus stations, checkpoints, industrial parks, concentrated manufacturing zones, etc.; connect to customers, especially distributors, wholesalers, retailers, exporters of goods, etc.;

d) take advantage of geographical advantages and proximity to goods supply sources such as industrial parks, ports, checkpoints, etc. or markets, customers; locate logistics centers that are near areas that have high and stable consumption, thriving trade, and a wide and dense distribution network;

dd) be appropriate for the planning for development of the transport network, land-use planning, and planning for development of other socio-economic infrastructure systems of the region and administrative division; ensure sufficient land area to divide a center into specialized areas and ensure its prolonged development.

Each class I logistics center must be located near or connected to a sea port or international airport, have all services of a logistics center, operate as a port, container depot, bonded warehouse, CFS, the area of which is at least 20 hectares, and able to provide services within a radius of at least 100 km.

Each class II logistics center must be located in an economic center where the market is large or a concentrated areas of production, have some primary functions of a logistics center, operate as a container depot, bonded warehouse, CFS, the area of which is at least 10 hectares, and able to provide services within a radius of at least 50 km.

Special class logistics centers must be connected to or have roads that directly lead to airports. The minimum area of a specialized logistics center is 3 hectares.

e) Special class logistics centers associated with airports must be appropriate for the planning and orientation for nationwide development of airport system; focus on providing logistics services serving high technology products, perishable goods, goods of high values, etc.; connect and serve enterprises in modern industrial parks and developed manufacturing technology centers in key economic regions in the North, the Center, and the South in order to firstly optimize the circulation and distribution of modern, sophisticated, of high value, and perishable goods that are inputs and outputs of such enterprises, gradually expand the functions and scope of service provision to temporary import and transit through international airport nationwide.

2. Planning schedule

a) In the North: Establish and develop seven class I and class II logistics centers, and one special class logistics center associated with airports in various regions, sub-regions, and economic corridors.

- Red River Delta:

+ Hanoi and adjacent provinces: 01 class I center (North Hanoi logistics center), 01 class II center (South Hanoi logistics center). By 2020 (stage I): North Hanoi logistics center with a minimum area of 20 hectares, South Hanoi logistics center 25 hectares. By 2030 (stage 2): North Hanoi logistics center with an area of over 50 hectares, South Hanoi logistics center over 30 hectares; connected to ICDs, sea ports (Hai Phong, Hon Gai, Cai Lan), and airports (especially Noi Bai International Airport; bus stations, train stations, industrial parks, etc.; operating in Hanoi and adjacent provinces to the North and South of Hanoi. 01 special class aviation logistics center established at Noi Bai International Airport or whose roads directly lead to it and able to connect to multimodal transport with a minimum area of 5 – 7 hectares (stage I) and over 7 hectares (stage II);

+ Economic corridor along the Southeast coast of the North: 01 class II center with a minimum area of 10 hectares by 2020 and over 30 hectares by 2030; operating primarily in Ha Nam, Nam Dinh, Thai Binh, Ninh Binh, and the Southeast of Hanoi; connected to ICDs, sea ports, (Hai Phong, Hon Gai, Cai Lan), airports; bus stations, train stations, industrial parks, etc.;

+ Economic corridor along the Northeast coast of the North: 01 class II center with a minimum area of 20 hectares by 2020 and over 40 hectares by 2030; operating primarily in Hung Yen, Hai Duong, Hai Phong, Quang Ninh, and the Northeast of Hanoi; connected to ICDs, sea ports, (Hai Phong, Hon Gai, Cai Lan), airports; bus stations, train stations, industrial parks, checkpoints (in Quang Ninh province) etc.;

- The Northern midlands and highlands

+ Hanoi – Lang Son economic corridor: 01 class II center with a minimum area of 10 hectares by 2020 and over 20 hectares by 2030; operating primarily in Bac Ninh, Bac Giang, Lang Son, Cao Bang, and Bac Kan, and the Northeast of Hanoi; connected to ICDs, sea ports, (Hai Phong, Hon Gai, Cai Lan), airports; bus stations, train stations, industrial parks, checkpoints (in Quang Ninh province);

+ Hanoi – Lao Cai economic corridor: 01 class II center with a minimum area of 20 hectares by 2020 and over 30 hectares by 2030; operating primarily in Vinh Phuc, Phu Tho, Thai Nguyen, Yen Bai, Lao Cai, Tuyen Quang, and Ha Giang; connected to ICDs, sea ports, (Hai Phong, Hon Gai, Cai Lan), airports; bus stations, train stations, industrial parks, checkpoints (in Lao Cai and Ha Giang provinces)];

+ Economic corridor in the North West of the North: 01 class II center with a minimum area of 10 hectares by 2020 and over 20 hectares by 2030; operating primarily in Phu Tho, Hoa Binh, Son La, Dien Bien, and Lai Chau; connected to ICDs, sea ports, (Hai Phong, Hon Gai, Cai Lan), airports; bus stations, train stations, industrial parks, checkpoints (in Son La, Dien Bien, and Lai Chau province);

b) In the Center and the central highlands (Tay Nguyen): Establish and develop six class I and class II logistics centers, and one special class aviation logistics center in various regions, sub-regions, and economic corridors.

- Along the north central coast and central coast:

+ Da Nang city: 01 class I center with a minimum area of 30 hectares by 2020 and over 70 hectares by 2030; operating primarily in Da Nang city and adjacent provinces; connected to ICDs, sea ports, (Da Nang, Ky Ha, Chan May), train stations, bus stations, industrial parks, etc. 01 special class aviation logistics center established at Da Nang International Airport or whose roads directly lead to it with a minimum area of 3 – 4 hectares (stage I) and 7 – 8 hectares (stage II);

+ Economic corridor along Road 8, Road 12A, and north central coast: 01 class II center with a minimum area of 20 hectares by 2020 and over 40 hectares by 2030; operating primarily in Thanh Hoa, Nghe An, Ha Tinh, and Quang Binh; connected to ICDs, sea ports, (Nghi Son, Cua Lo, Hon La, Vung Ang), airports; bus stations, train stations, industrial parks, checkpoints (in Thanh Hoa, Nghe An, Ha Tinh, Quang Ninh);

+ Economic corridor along Road 9: 01 class II center with a minimum area of 10 hectares by 2020 and over 20 hectares by 2030; operating primarily in Thua Thien – Hue, Quang Tri, Quang Binh, and North of Da Nang; connected to ICDs, sea ports, (Hon La, Chan May), airports; bus stations, train stations, industrial parks, checkpoints (in Thua Thien – Hue, Quang Tri, Quang Binh);

+ Economic corridor along Road 14B: 01 class II center with a minimum area of 10 hectares by 2020 and over 20 hectares by 2030; operating primarily in Quang Nam, Quang Ngai, and South of Da Nang; connected to ICDs, sea ports, (Da Nang, Ky Ha, Chan May), airports; bus stations, train stations, industrial parks, checkpoints (in Quang Nam);

+ Economic corridor along Road 19, and south central coast: 01 class II center with a minimum area of 20 hectares by 2020 and over 30 hectares by 2030; operating primarily in Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, and towards provinces of Tay Nguyen region; connected to ICDs, sea ports, (Quy Nhon, Dung Quat, Ba Ngoi), airports; bus stations, train stations, industrial parks, checkpoints (in provinces of Tay Nguyen region);

- Tay Nguyen region:

+ East Truong Son economic corridor: 01 class II center with a minimum area of 10 hectares by 2020 and over 20 hectares by 2030; operating primarily in Kon Tum, Gia Lai, Dak Lak, Dak Nong, and towards coastal provinces; connected to ICDs, sea ports, (in coastal provinces), airports; bus stations, train stations, industrial parks, checkpoints (in Kon Tum, Gia Lai, Dak Lak, Dak Nong);

c) The South: Establish and develop five class I and class II logistics centers, and one special class aviation logistics center in various regions, sub-regions, and economic corridors.

- The southeast:

+ Ho Chi Minh City: 02 class II center (to the North and South of the city) with a minimum area of 40 hectares by 2020 and over 70 hectares by 2030; operating primarily in Ho Chi Minh City and adjacent provinces to the north and south; connected to ICDs, sea ports, (Saigon Ports and Ba Ria – Vung Tau ports), train stations, bus stations, industrial parks, etc. 01 special class aviation logistics center established at Tan Son Nhat – Long Thanh International Airports or whose roads directly lead to them with a minimum area of 3 – 4 hectares (stage I) and 7 – 8 hectares (stage II);

+ Economic sub-regions in the provinces to the Northeast of Ho Chi Minh City: 01 class I center with a minimum area of 60 hectares by 2020 and over 100 hectares by 2030; operating primarily in Dong Nai, Ba Ria – Vung Tau, Binh Thuan, Binh Duong, Binh Phuoc, Tay Ninh, Dak Nong, and Lam Dong; connected to ICDs, sea ports, (Saigon Ports and Ba Ria – Vung Tau ports), airports; bus stations, train stations, industrial parks, checkpoints (in Tay Ninh, Binh Phuoc, Dak Nong);

+ Economic sub-regions in the provinces to the Southeast of Ho Chi Minh City: 01 class II center with a minimum area of 20 hectares by 2020 and over 50 hectares by 2030; operating primarily in Long An, Tien Giang, Vinh Long, Dong Thap, and Ben Tre; connected to ICDs, sea ports, (Saigon Ports and Ba Ria – Vung Tau ports), airports; bus stations, train stations, industrial parks, checkpoints (in Long An and Dong Thap);

- + Economic sub-regions in the Mekong Delta: 01 class II center with a minimum area of 30 hectares by 2020 and over 70 hectares by 2030; operating primarily in Can Tho city, Tra Vinh, Hau Giang, Vinh Long, Kien Giang, Ca Mau, Bac Lieu, Soc Trang, and An Giang provinces; connected to ICDs, sea ports, (Can Tho, My Thoi), airports; bus stations, train stations, industrial parks, checkpoints (in Kien Giang and An Giang);

3. Selection of prioritized projects

The list of prioritized logistics center projects during the period 2015 – 2020 is provided in Appendix I to this document.

V. SOLUTIONS AND PRIMARY DEVELOPMENT POLICIES

1. Specify, revise, provide additional mechanisms and policies in order to mobilize the most domestic and overseas resources to development of the logistics center system; encourage and enable enterprises in various economic sectors to invest in construction and operation of logistics centers in various forms in accordance with law; encourage investment in and development of logistics services, including operation of special class logistics centers associated with airports, CFS with special requirements in terms of security, safety, and customs control.

2. Expand and diversify the forms of investment towards intensification of private sector involvement; flexibly apply applicable incentive policies appropriate for the socio-economic conditions of each area in terms of credit, taxes, prices, fees and charges, technology transfers, franchise, etc.

3. Assess, select some key and essential works that play an important role and are able to make an outbreak to apply regulations on PPP investment; give priority to investment in upgrading existing logistics centers that are appropriate for the planning and operating effectively over the past period.

4. Select capable, experienced investors to invest in logistics centers in accordance with this Planning, especially special class aviation logistics centers having special safety and security requirements.

5. Provide sufficient land area for development of the logistics center system. Local government must proactively and flexibly implement land policies to support construction of logistics centers. Hold land use right auction for projects whose locations are advantageous.

6. Pay attention to training of human resources for management, construction, operation of logistics centers. Intensify application of information technology and modern management technologies to organization and operation of logistics centers together with intensification of investment in advanced technical devices in order to ensure that logistics centers perform their functions in a sustainable, highly effective, competitive way that is comparable to regional and global logistics centers.

7. Encourage manufacturing and trading enterprises, especially those that domestically distribute goods, export, and import goods, to use services provided by logistics centers in order to reduce their costs, improve their competitiveness, expand their market share, and advertise their trademarks while motivate development of logistics centers.

8. Improve the quality and effectiveness of state management during the implementation of the logistics center system development planning; ensure compatibility and synchronicity with socio-economic development master plan, transport planning, construction planning, urban planning, and other plannings such as trade planning, plannings for industrial parks, concentrated manufacturing zones, economic zones checkpoint economic zones of various sectors, provinces, and the whole country.

9. Improve the quality of existing transport system; give priority to mobilization of resources to construction of high-speed roads and railroads with high capacity along the North – South and East – West corridors; modernize the system of train stations, ports, depots; develop traffic routes to adjacent countries and Trans-Asian Railway, etc. in order to ensure convenient connection of logistics centers, between logistics centers and production areas, consumption areas, and transport nodes.

10. Keep simplifying customs procedures in order to facility export, import, and transit of goods through Vietnam, which is the basis for development multimodal transport and establishment of regional and international entrepots in Vietnam.

Article 2. Implementation

1. The Ministry of Industry and Trade shall:

a) Make the nationwide logistics center system development planning by 2020 and orientation towards 2030 publicly available.

b) Take charge and cooperate with other Ministries, agencies, the People’s Committees of provinces relevant to the implementation of nationwide logistics center system development planning by 2020 and orientation towards 2030 publicly available; review, classify logistics centers and announce their classes according to this Planning; conduct periodic inspections of the implementation of this Planning.

c) Propose revisions to this Planning to the Prime Minister in order to suit the conditions of each province in case of socio-economic fluctuations and change of demand for logistics services.

2. The Ministry of Planning and Investment shall:

a) Take charge and cooperate with other Ministries, agencies, and local governments in providing guidance, review, applying regulations to PPP logistics center construction and operation projects.

b) Take charge and cooperate with the Ministry of Finance, relevant Ministries and agencies in reviewing, revising mechanism and policies in order to encourage investment in development of logistics services, including operation of special class aviation logistics centers and CFS logistics centers with special requirements in terms of safety, security, and customs control.

3. The Ministry of Transport:

a) Focus on execution of projects for upgrade, improvement, expansion of the transport system; give priority to mobilization of resources to construction of high-speed roads and railroads with high capacity along the North – South and East – West corridors; modernization of the system of train stations, ports, depots; develop traffic routes to adjacent countries and Trans-Asian Railway, etc. in order to ensure convenient connection of logistics centers, between logistics centers and production areas, consumption areas, and transport nodes.

b) Provide guidance, conduct inspection of fulfillment of security and safety conditions and other conditions of projects on investment in special class aviation logistics centers and CFS logistics centers

4. Other Ministries, agencies, and the People’s Committees of provinces, within the scope of their functions, tasks and powers, have the responsibility to cooperate with the Ministry of Industry and Trade in organizing the implementation of this Planning, ensure adherence to viewpoints, targets, orientations, solutions, and policies for development of logistics centers in a way that is uniform, comprehensive, and appropriate for development plans of each sector, province, and the whole country.

5. The People’s Committees of provinces have the responsibility to provide sufficient land area to build logistics centers in accordance with this Planning after it is approved.

Article 3.This Decision comes into force from the day on which it is signed.

Article 4.Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces are responsible for the implementation of this Decision./.

APPENDIX I

LIST OF PRIORITIZED LOGISTICS CENTER PROJECTS BY 2020
(promulgated together with the Prime Minister’s Decision No. 1012/QD-TTg dated July 03, 2015)

APPENDIX II

PLANNING FOR LOGISTICS CENTERS NATIONWIDE BY 2020 AND ORIENTATION TOWARDS 2030
(promulgated together with the Prime Minister’s Decision No. 1012/QD-TTg dated July 03, 2015)