MASTER PLAN ON SOCIO-ECONOMIC DEVELOPMENT OF BAC GIANG PROVINCE TO 2020, VISION TO 2030

I. Development viewpoints

1. Master plan on socio-economic development of Bac Giang province to 2020 and vision to 2030 must be consistent with socio-economic development strategy of the wholly country in a period of 2011-2020, master plan on socio-economic development midlands and northern mountainous region, plan of capital region and united with plans of fields and sectors.

2. To maximize potential and advantages, resources of the province, mobilize and use effectively external resources to develop rapidly and sustainably; promoting transformation of economic restructuring, growth model, considering quality, productivity, efficiency and competitiveness as a top priority; focusing on deep growth, creating development driving force to narrow promptly gap with provinces in region and the country. Economic growth must be combined harmoniously with implementation of social progress and justice; constantly improving quality of the people’s living.

3. To promote human element, attaching importance to develop high quality human resources; associating economic development with solving social issues and environmental protection. Combining development of driving force region with midland and mountainous regions, aiming at narrowing development gap among regions in the province.

4. To develop production with higher level of science, technology; promoting application of clean and advanced science and technology. Mobilizing and using effectively all resources for development. Creating favorable conditions for all kinds of enterprises to grow fast and harmoniously; encouraging foreign invested economic sectors develop under plan; creating fair and transparency competition environment.

5. To combine closely socio-economic development with ensuring national defense and security, building the people’s national defense posture and the people's national security posture, ensuring social order and safety on basis of consolidating facilities and army force, building solid defense zone, being proactive in all situations. Strengthening development linkage with other provinces in region and the country, being proactive in international integration.
II. Development objectives by 2020
1. Overall objectives:

- To maintain economic growth rate higher than common economic growth rate of midlands and northern mountainous region and the wholly country, economic structure transform towards positive trend; building key infrastructure systems to meet better requirements of socio-economic development; exploiting and using rationally potentials and strengths to develop industry, services, agriculture. Developing comprehensively socio-cultural fields, enhancing quality of human resources, implementing well social welfare policies, improving living conditions of the people. Resolving basically environmental pollution, maintaining firmly political security, social order and safety, strengthening local defense, military.

- To strive to 2020, developing Bac Giang province into group of province having the highest rate of GDP/person in midlands and northern mountainous region and equaling to 90-95% of the average national rate.

2. Specific objectives:
2.1. Economic:

- Average growth rate in a period of 2016 - 2020 reach 10-10.5%; average growth rate of labor productivity in a period of 2016 - 2020 hits 8.5-9%/year;

- Income per capita reaches USD 2,700 - 2.800/person; economic structure: industry-construction sector accounts for approximately 42-42.3%, service sector accounts for approximately 38 - 38.3% and agriculture, forestry and fisheries make up approximately 19.4-20 %; export turnover post USD 2.5 - 3.0 billion.
2.2. Culture, social, education, health:

- Average population growth rate hits about 0.76%/year, rate of urban population posts 22.3%, 25 patient beds/10,000 people, rate of malnourished children under 5 years of age is below 12%; rate of schools meeting national standards: pre-school 88.5%, primary school 97.7%, junior high school 88.8% and high school 75.5%; rate of trained workers reaches 70% by 2020 and reducing poverty household rate from 1.5-2.0%/year; creating jobs for about 29,000-30,000 people/year, reducing unemployment rate in urban areas to 3.5%.

2.3. Use of resources and protection of ecological environment

- To mine, use effectively and sustainably natural resources, especially land, water and mineral resources, forests under legal provisions.

- To strive that 100% of operating industrial parks, industrial clusters have concentrated waste water treatment system; rate of treated waste water which meet standards hits 60%; rate of households using clean water in rural areas reaches 100%; rate of solid waste collection posts 70%, out of which, rate of treated solid waste achieves 98%; forest coverage rate hits 38% and protecting well biodiversity, adapting to climate change.
2.4. About space and infrastructure:

- Rate of urbanization reaches 22.3%, focusing on building Bac Giang city and 2 towns of Chu, Thang to coordinate sub-regional development; developing production space, focusing agricultural mutual cluster, participating electronic, mechanical mutual clusters in Hanoi area, high-quality agricultural area.
- To strive to hit rate of communes meeting criteria of new countryside of 35-40%.
2.5. National defense, security and social order, safety

To strengthen the State management on national defense and security, actively monitoring situation, not being passive, unexpectedly; fighting against abuse of ethnic, religious, misinformation propaganda of enemy forces, especially in key region. Fully preparing plans and available, necessary condition facilities and actively coping when situations occur.

III. Vision to 2030
1. Overall objectives

- To strive to develop province of Bac Giang into industrial province, having development level higher than average level of the country. The economy goes up from advanced industry and services, developing green industry, clean agriculture, modern urban and cultural tourism. Organizing space of science, urban systems, rural areas develop harmoniously, organizing industrial production in concentrated industrial clusters, parks, developing high quality service and agriculture, synchronous infrastructure systems. Preserving and promoting the nation's cultural identity, creating a better life, higher living standards for the people. Political security, national defense and social order and safety are guaranteed.

- Average growth rate hits about 9.5-10%/year in a period of 2021-2030; income per capita reaches USD 9.300-9.500/person, economic structure transform towards positive trend, industrial and service sector accounts for approximately 88.5- 89%; total exports turnover hits over USD 6.5 billion.

2. Development orientation:
2.1. Development of industry, services, agriculture:

To transform towards positive trend, developing province of Bac Giang into high technology industrial, service and agriculture province. Its key products effectively participate and compete in global value chain, production network in context of globalization and international integration. Developing services with a focus on logistics, tourism and become one of key tourism provinces in region.

2.2. Development of social field:

- To strive that 100% of preschool and secondary school hits national standards; completing basically vocational school systems, universities with excellent quality; having system of modern health facilities, meeting demand for treatment of the people, the people can access equally and conveniently to health services.

- To transform structure of labor from agriculture to industry and services; rate of urban population accounts for 36.7%; cultural, historical values continues to be preserved and promoted; system of cultural, sport institutions are invested in construction.
2.3. Spatial and infrastructure development:

- To develop harmoniously urban and rural areas, rate of urbanization reaches 36.7%; developing space and constructing synchronously infrastructure systems in urban and rural areas, mountainous area, particularly urban areas, production areas, service areas and key infrastructure will be completed and modernized.

2.4. Land use and environmental protection:

- Unused land, inefficient agricultural production land transform to new suitable crops or livestock to obtain higher economic value.

- Industrial waste, agriculture waste, living waste will be basically treated, meeting national standards. Industrial parks, industrial clusters, trade traditional villages have waste water treatment systems; using effectively, saving resources and protecting environment; maintaining forest coverage rate of 38%, having plans and measures to adapt to climate change.
IV. Breakthroughs

- Firstly, perfecting mechanisms, policies and administrative reforms. Studying to proposes to promulgate mechanisms and policies to develop driving force region, key products, infrastructure, attracting investment, supporting industrial production, transforming labor structure... Renovating macroeconomic management, associating with administrative reform, focusing on improving competitiveness index, public administration and public governance effectiveness index.

- Secondly: transforming, developing and attracting human resource, particularly highly qualified workforce to transform agricultural labor to industrial and services labor; training high quality human resource to meet development requirements of major products, services and creating human resource to supply for other provinces in region, labor export.

- Thirdly: Focusing on spatial development and construction of key infrastructure in Bac Giang city, towns of Chu, Thang to coordinate, develop transport, power, water supply irrigation system of the province and subregion and developing key products to participate in value chain, production network in context of globalization and international integration.

V. Development orientation of fields and sectors
1. Industry and construction:

To strive that average growth rate reaches 14-14.5%/year in a period of 2016-2020.

1.1. Developing key products to join global value chains, production networks in context of globalization, including:
- Electronic products and components, mechanics for auto, motorcycle production, participating in electronic, mechanical mutual clusters in Hanoi region;

- To develop textile and garment industry to take advantage of labor and development capabilities; at the same time, attracting enterprises of supplying raw and auxiliary materials in context of participation in a new agreements.

- Products of agriculture and forestry such as lychee, hill chicken, fresh vegetables, furniture ... Gradually building tropical fruit mutual cluster in township of Chu; developing processing industry, associating with development stably material regions.
1.2. Development of other industries

- Chemical industry, power production: continuing to develop to take advantage of existing power plants and raw materials; maintaining capacity of Son Dong thermal power plant.

- Small scale industry: developing traditional villages of processing agricultural products, handicrafts associating with conservation, development of tourism and environmental protection.

- Construction materials (including tunnel bricks, sand, gravel, cement): continuing to exploit gravel, sand under plan to response apart of market demand in the province; renovating technology of brick and cement production in order to improve productivity, quality and reduce environmental pollution.

- To complete expeditiously expansion of fertilizer and chemical factories, increasing production capacity of Urea fertilizer to 50,000 tons/year and synthetic fertilizers, industrial explosives, methanol, liquid CO2, associating with consolidating distribution system from level I, level II and especially level III.

1.3. Development of industrial parks and industrial clusters

To continue to improve synchronous infrastructure inside and outside industrial parks, industrial clusters. By 2020, the province will has 5 industrial parks with a total area of ​​approximately 1,322 ha, 36 industrial clusters with total area of 682.99 hectares.
2. Service and tourism:

To develop service field to create breakthroughs in a period after 2020, focusing on key products and services; striving to hit growth rate of 8.5 - 9%/year in a period of 2016-2020.
2.1. Development of key products and services:

- High quality, popular wholesale and retail service: constructing service areas, wholesale markets in urban centers and distribution systems in other regions.

- To build logistics services to take full advantage of its position as a transfer hub of Vietnam – China economic corridors and "dual-gate" of the region, attracting investment in construction of inland container deport in Dong Son commune, Bac Giang city and general service zone of ​​Tan Dinh.

- Travel services with cultural, historical, spiritual tours, eco-tourism combining with shopping specific products of the local.

- Boosting export activities: forming series of export items such as electronics, garments, processed agricultural products, handicraft products .... Maintaining traditional markets and developing new markets in the Americas, Africa...
2.2. Other products and services: developing other kinds of service such as finance, banking, post - telecommunications, consulting, science - technology, freight, passengers ... to diversify products and services.
3. Agriculture, forestry and fisheries

To striving that growth rate in a period of 2016 - 2020 reaches 3-3.5%/year.
3.1. Development of key products, including:

- Litchi (Luc Ngan district) and fruit (citrus), striving to achieve quality standards for export to potential markets; gradually establish mutual cluster of tropical fruits in Chu township.

- Livestock products (key products are chicken, pork): gradually building mutual cluster of Yen The hill chicken with a scale of 6-8 million units, looking towards achieving quality standards for export; developing over 01 million of pigs associating with processing industry, industry of producing animal feed.

- Processed vegetables and mushrooms: focusing on development and formation of specialized cultivation areas to provide products achieving sanitary, food safety standard in city of Bac Giang, districts of Yen Dung, Lang Giang and Tan Yen, Luc Nam...

- Wood products and sustainable forest development: concentrating in districts of Luc Ngan, Son Dong Yen, Luc Nam; transferring from economic afforestation to cultivate huge timber trees in combination with medicinal plants and development of processing industry.

3.2. Other agricultural products: developing crops like rice, short term industrial trees (peanut, soybean); livestock, poultry and aquaculture (fish) to meet demand in the province and provides apart for regional markets.
4. Fields of social culture
4.1. Education - Training:

- To renew basically and comprehensively education under Resolution of Central Committee at eight plenum (XI) to create a change in quality and efficiency, building advanced education and training system. Stepping up socialization of education basing on promulgating and implementing appropriate mechanisms and policies and renovating management.
- To develop scale, improve quality and efficiency of vocational training under 3 qualification levels: vocational training for rural labor, labor export and new countryside construction. Socializing training, giving priority to high quality vocational training.

4.2. Health and healthcare:

- To continue to improve and raise quality of medical care, the people’s healthcare and minimize social diseases; preventing well disease and handling timely outbreak of epidemics; continuing to strengthen system of infrastructure, procurement of medical equipment and improving qualifications, ethics for professional staff.

- To promote health socialization; expanding cooperation and joint ventures among hospitals, specialty hospitals; improving quality of medical activities, especially in specialized fields such as cardiology, endocrinology, obstetrics, mental ...; renovating and upgrading provincial hospitals; continuing to implement preventive health program.

4.3. Culture, physical and sport

- To preserve and promote traditions, customs, culture and creating favorable conditions for people to participate in cultural activities and physical and sports. Focusing on attracting investment from many sources through mechanisms and policies to develop cultural institutions.

To restore, embellish, promote cultural, historical relics such as: Yen The uprising destination, Hiep Hoa II safety zone, Vinh Nghiem pagoda, Bo Da pagoda, Xuong Giang victory relic .. . Developing art forms such like: Quan Ho sing, festival song, folk of ethnic minorities, traditional festivals.

- To promote socialization in order to mobilize lawful capital source to invest in many sport projects such as gymnasiums, stadiums, provincial sport complexes ... and training high performance athletes.
4.4. Information and communications

- To improve quality of journalism, publishing, radio and television to ensure adequate and timely information. Maintaining existing network of post offices under 3 levels, ensuring supply of newspaper to meet demand of the people. Improving quality of service of newspaper and publishion in association with promoting application of information technology.

- To complete radio and television broadcasting centre of the province, developing service of radio and television, transferring to digital television under schedule; consolidating system of radio stations at district and communal level.

4.5. Science and Technology

- To promote research, development and application of science and technology with cooperation of research institutes and universities for key products; applying information technology, computerizing administrative activities of the State agencies; building a database system to serve management activities.

4.6. Reducing poverty, developing human resource, creating jobs and addressing social issues

- To concentrate resources for implementation of sustainable poverty reduction; researching mechanisms and policies to encourage households and communes out of poverty; propagandizing, raising awareness and responsibility of the poor to overcome poverty sustainably.

- To develop human resources, attracting high-quality employees to increase productivity and improve product quality. Developing labor market information, well organizing network of labor supply service. Creating jobs for rural laborers to reduce pressure on job creation, implementing rural and agricultural credit policies.
- To focus on effectively solving pressing social problems such as environmental pollution, land acquisition, production land, complaints and denunciations ....
4.7. Using natural resources and protecting ecological environment
To exploit and use effectively, sustainably natural resources, at the same time, handling well issues of environment of water, air, soil, waste ... actively responding to climate change in order to develop socio-economic rapidly and sustainably.
5. Development of infrastructure
5.1. Transport system:

- Roads: Building key, synchronous transport system, connecting closely provincial transportation system with those of the country; giving priority to build provincial roads to create driving force of growth; focusing on some main routes:

+ National roads: highway of Hanoi - Lang Son; national road No.31, 37; ring road No.5 of Hanoi capital, connecting road No. 293 with national road No.37 and other road system to connect with other provinces in the region;

+ Provincial road: completing renovation and upgrading of provincial road No.293 to hit standards of road of level III; continuing to research, upgrade and invest in new roads in order to increase connectivity with other provinces in the region; researching and upgrading many district roads, building some new roads, new bridges to meet transport demand at the most convenient level.
- Waterway: continuing to improve, perfect waterway network for rivers of Thuong, Cau and Luc Nam and connecting infrastructure to promote efficiency of transport.

5.2. System of irrigation systems, dikes, water supply and drainage:

- Irrigation and dikes: continuing to upgrade synchronous system of dykes, irrigation, prioritizing key projects to serve agricultural production efficiency; developing irrigation systems in 5 key areas: area of Cau river, area of Soi river, irrigation system area of Cau Son - Cam Son, area of Luc Nam river and area of south Yen Dung.

- Water supply, drainage: planning, building system of water supply, drainage, ensuring that 100% of the population have access to clean, safety water. Building urban, rural water supply infrastructure, including construction of rural water plants in urban areas; concentrated living water projects in rural areas; construction of urban drainage systems, especially in Bac Giang city, townships of Thang, Chu.
5.3. Electricity infrastructure:

- To construct power supply system, low voltage stations as plans to meet demand of power supply for production, business and daily living of the people.
- To continue to invest in upgrading grid and at the same time, renovating management activities to ensure electricity for production, business and living of the people.

5.4. Infrastructure of post, telecommunications and information technology:

To develop post towards computerization, constructing and developing telecommunications infrastructure with modern technology, as follows:

- To deploy fiber-optic system to 100% of communal centers; building telecommunications infrastructure as a foundation for application of information technology in public administration reform; constructing fiber-optic transmission network to 100% of districts in 2015.

- To put underground network of infrastructure, improving service quality and ensure urban beauty. Developing infrastructure of information technology in the State agencies, completing construction of e-government by 2020.
VI. Orientation of space organization

To ensure harmony between urban and rural areas, among different regions in the province on basis of determining driving force regions and development subregions. Creating socio-economic space, especially having key points in urban systems, mutual clusters, industrial parks, service zones, tourism zones and high-tech agricultural zones with products hitting national, international standards.
1. Development of urban space:

- By 2020, the province has 21 urban areas, including 01 urban area of grade II; 02 urban areas of grade IV and 17 urban areas of grade V. Specifically, developing Bac Giang city into urban area of grade II, township of Chu and Thang reaches urban areas of grade IV.

- After 2020, developing Bac Giang city to hit urban standard of grade I, being urban center of the province; focusing on building townships of Chu to hit urban area of grade III (urban ecology), being a center of coordinating and developing a northeast region; building township of Thang to achieve urban area of grade III( industrial urban area), being a center of coordinating and developing a west region.

2. Orientation of space development of economic subregions

- Driving force subregion: including city of Bac Giang and some communes in districts bordering the city; developing industry, trade, services, tourism and education.

- West region: including Hiep Hoa district (center of sub-region), districts: Viet Yen, Yen Dung, Tan Yen, Lang Giang and Yen The; orienting to develop industry, production and processing of agricultural products, handicrafts, trade, services and tourism.
- East region: including Luc Ngan district (sub-regional center), Luc Nam, Son Dong; orienting to develop production and processing of agricultural and forestry products; spiritual, cultural, resort tourism; production of handicrafts.
3. Orientation of space development of fields, sectors:

3.1. Industry: focusing on driving force regions associating with key transport routes of the province; attracting enterprises of producing and trading electronic, mechanical engineering products to participating in mutual clusters of electronic, mechanical engineering in Hanoi region.

- To develop industries of electronics, mechanical engineering, processing agricultural and forestry products and garment and textile industry in system of industrial parks, industrial clusters along national roads No.1, 31, 37 and provincial roads No.292, 295, 296.
- To develop handicrafts and agro-forestry processing in systems of industrial parks, industrial clusters along national roads No.31, 37 and along provincial roads No.294, 295B.
3.2. Agriculture, forestry and fisheries:

- Fruit tree region: focusing on Luc Ngan district, a part of Son Dong district, Luc Nam district to gradually establish mutual cluster of tropical fruit in Chu township attaching with development of material area.
- Farming region: forming Yen The hill chicken (with participation of Tan Yen, Lang Giang, Luc Nam); developing pig breeding at scale of farm, household farm in delta and midland districts.

- Region of high technology intensive cultivation with products of processed vegetables, potatoes, mushrooms; focusing on development in areas surrounding city of Bac Giang, in districts of Lang Giang, Yen Dung and along Cau river in Viet Yen district; constructing high-quality breeding centers with peanut, rice, potatoes, mushrooms, seafood ... in districts of Tan Yen, Yen Dung, Lang Giang.

- Forestry production region: cultivating economic forests, medicinal plants in the mountainous districts associating with development of processing industry and managing and using sustainably protective forests and special-use forests, especially in west region of Yen Tu district.

- Intensive cultivated region of aquaculture breeding in districts of Viet Yen, Tan Yen, Hiep Hoa, Yen Dung, Lang Giang; aquaculture breeding areas combining with low-lying fields in districts of Hiep Hoa, Yen Dung, Lang Giang, Tan Yen, Luc Nam; aquaculture breeding area combining huge water surface area in districts of Luc Ngan, Luc Nam, Son Dong, Yen The, Lang Giang.
3.3. Services, trade, tourism

- To develop logistics services in city of Bac Giang, Lang Giang district; financial services, hotels and banking service in city of Bac Giang.

- To develop trade, wholesale, retail, focusing on Bac Giang city, townships of Thang, Chu town and other townships; developing system of living markets in rural areas, a system of markets, supermarkets which area adjacent to industrial clusters.
- To develop tourism routes in association with relics and landscapes such as west Yen Tu, Vinh Nghiem Pagoda, Phuong Hoang Truc Lam monastery, Yen The uprising relic, golf of Yen Dung, Cam Son lake. ..

1. Solutions on mobilizing and using effectively investment capital

- Total demand for investment capital of the entire society in a period to 2020 is estimated to hit VND 230,000 billion. Attracting enough capital to meet this demand, should make well task of planning, set up a list of projects calling for investment; at the same time, having specific solutions of mobilizing each capital resource as well as orientation of using resources, improving efficiency of capital use.

- For the State budget source: giving priority to investment in infrastructure projects which can not mobilize resources of socialization. Improving quality of growth in order to increase rate of accumulation of internal economy, creating resources for development investment spending. Basing on ability of balancing annual State budget, proactively setting up pla, allocating suitably investment to secure funding for key projects and at the same time, being a basis for taking advantage of capital source from the central government through development programs and incentives mechanism, policies.

- Foreign direct investment capital (FDI): renovating investment promotion task, improving investment environment to attract capital for development of projects of electronic industries, support industries ... and services, processing of agricultural and forestry products.

- To diversify forms of capital mobilization; creating favorable conditions to attract investors to the province; researching to promulgate policies to support small and medium enterprises in the province to develop production and business; promoting socialization of activities such as health, education and sport...

2. Solutions of mechanisms, policies and administrative reforms and improving provincial competitiveness

- To research and promulgate policies on driving force region, investment in infrastructure of industrial parks, industrial clusters, mutual clusters, developing key products, attracting huge investors, encouraging development of supporting industry, attracting enterprises of supplying raw and auxiliary materials for production inputs.

- To step up administrative reforms, out of which, focusing on administrative procedure reform, creating comfortable environment to attract investment and developing socio-economic of the province; in short term, focusing on improving competitiveness index, index of effectiveness of governance and public administration.

- To reform administrative procedures related to enterprises; simplifying procedures of tax and customs and enhancing enterprise’s capacity of accessing to land. Building coordination mechanism on enterprise management after business registration.
3. Solutions on science and technology

- To increase investment in science and technology; build programs of coordination, cooperation with universities and research institutes; promoting research and development, especially for key products.

- To support credit access, renovating technology and applying new technologies, developing human resources for small and medium-sized enterprises to implement research and development for key products.
4. Solutions on human resource development

- To build cadres and civil servants which have good qualities and capabilities to meet demand of socio-economic development and renovation; prioritizing support for training of all small and medium-sized enterprises.

- To enhance physical strength of human resources; quality of comprehensive education in system of secondary schools; training, improving qualifications, knowledge and skills of employees, focusing on fields of manufacturing key products.

I. Development viewpoint, target, plan to 2020, vision to 2030
1. Development viewpoint, target
1.1. Development viewpoint
- Industrial cluster development plan of Bac Giang province to 2020, vision to 2030 must be consistent with overall plan on socio-economic development, industry development plan, land using plan, residential area and urban development plan and infrastructure development plans of Bac Giang province.
- Development of industrial clusters must be based on development of enterprises, production and trade units in locality, efficiency use of land, creating favorable conditions to promote industrial development in particular and socio- economic development in general in province of Bac Giang.
- Development of industrial clusters in province of Bac Giang must be associated with industrial space of the wholly country, midland and northern mountainous regions, combined with economic corridors and northern key economic region in order to take advantage of linkages and to create favorable conditions for expansion and cooperation with international region and the world.
- Development of industrial clusters must be associated with ensuring national security, combined with requirements of ecological environment protection and reasonable industry development.
- Development of industrial clusters in province of Bac Giang must efficiently exploit comparative advantage in natural resources, labor and infrastructure in the locality, giving priority to development of industrial clusters which have suitable scale to serve demands of relocation and expansion of production ground to develop processing industries of agriculture, forestry and fisheries in rural areas.
- Development of industrial clusters must associates with industrial parks, centers of economic, trade and services; paying attention to suitable development between regions, areas, especially mountainous regions.
- To court maximum help and support of ministries and central agencies, international organizations; to intensify cooperation with province; to mobilize resource of all economic sectors to build infrastructure of industrial cluster.
1.2. Development objectives to 2020
* Overall objective: Industrial cluster development plan is to ensure implementation of socio-economic development  objectives of Bac Giang province, contributing to growth of industry and services, transferring economic structure towards industrialization and modernization.
* Specific objectives:
- In a period to 2015:
+ To take advantage of support capital source of the central ministries and agencies, mobilizing resources of all economic sectors to continue to invest in infrastructure of existing industrial clusters.
+ To expand industrial clusters which have favorable conditions for development and establishing selectively many industrial clusters with an increased area of about 300 hectares. To 2015, total land area of all industrial clusters in province of Bac Giang is about 900 ha.
+ To attract investment in development of service and production units in industrial clusters. To strive to 2015, raising average coverage rate of industrial clusters in Bac Giang province to 75 % of industrial land area which are for lease; attracting around VND 4,000-4,500 billion of investment capital in developing production in industrial clusters; creating more jobs for 15,000 -20,000 employees.
- In a period from 2016 - 2020:
+ To continue to expand and establish newly and selectively many industrial clusters with an increased area of about 300 hectares. To 2020, total area of ​​industrial clusters is around 1,200 ha.
+ To strive to 2020, raising average coverage rate of industrial clusters in Bac Giang province to 80 % of industrial land area which are for lease; attracting about VND 5,000-5,500 billion of investment capital in developing production in industrial cluster; creating more jobs for 20,000-25,000 employees.
1.3. Orientation in a period of 2021-2030
+ To invest synchronously in infrastructure, striving to fill area of industrial clusters which have been established.
+ To expand many industrial clusters which have favorable conditions to develop and coverage rate reached over 80 %.
+ To establish newly many industrial clusters in communes of Thanh Lam, Bao Son (Luc Nam district), Huong Son (Lang Giang district) and contiguous area next to highway No.37 which has been upgraded; to plan newly many industrial clusters in localities which have much land of hills and plain, far away from highway, provincial road in districts of : Son Dong, Luc Ngan, Yen The, Yen Dung and Tan Yen through opening of new roads which  connect industrial clusters with national highways, provincial roads.

+ In this period, beside continuing to grow industries which have advantages such as processing agro- forestry; production of construction materials; textiles; leather; handicrafts; industrial sectors which are for agricultural production... it is necessary to give priority to attract into industrial clusters investment projects which have ‘clean’,  high technology, causing less pollution, having big added value, high efficiency.
2. Development options
2.1. Option 1: Development under material regions
This plan mainly bases on distribution of agricultural regions or regions of concentrated, available economic to provide orientation on location and nature of industrial clusters. In other words, products of local agriculture, forestry sectors will be a basis to decide location and nature of each industry cluster in each region.
* Advantage:
- Local raw materials are exploited, reducing production costs in materials logistics.
- To promote production capacity of products from local raw materials, creating favorable conditions to develop economic for household which are operating in sectors of agriculture and forestry.
* Weakness:
- It is difficult to choose type of new industry in context of volatile socio-economic environment.
2.2. Option 2: development under distribution status of traditional handicrafts
Beside focusing on developing industrial clusters from traditional handicrafts, this option also pay attention to an issue of tourism, cultural services development at traditional villages.
* Advantage:
- Existing traditional handicrafts of villages are exploited, contributing to maintenance and conservation of cultural characteristic of traditional village which have long-standing existed.
- To have ability to promote trademarks of traditional handicrafts, strengthening export of these traditional handicrafts.
- To take advantage of local, skilled human resource in traditional villages.
- To create favorable conditions, opportunities for developing tourism, services of traditional villages alongside with small-scale industry.
* Weakness:
- To court little local materials, this leads to higher shipping rates.
- Due to long-standing characteristic of traditional handicraft, ability of applying new and modern techniques-technology is not high.

2.3. Option 3: integrated development plan
To combine clever both of the above-mentioned options, creating flexibility for specific development areas.
In areas having no or not many traditional handicraft villages, the option allows developing strongly towards industry which uses source of local raw materials.
In areas having developed traditional handicraft, villages, the option focused on courting and exploiting maximum these potentials.
* Advantage:
- To combine advantages of both options 1 and 2.
- It is flexibility in establishment of industrial clusters under potentials and advantages of each region.
2.4. Comparing and choosing development option
By analyzing advantages and disadvantages of each option, it shows that option 3 - integrated development plan has the most advantages.
-  To propose, choose option 3 to research and implement the plan. The following sections are only considered under the selected option.
3. Basis of selecting scale of industrial clusters
Establishment and development of industrial clusters should have a combination of short -term steps and long -term steps; associating newly building industrial clusters with expansion of existing industrial clusters, using economically land resource, calculating socio-economic efficiency with protection of environment.
According to the World Bank, it earns on average only USD 2,000/year from 1 ha of agricultural land. If using the 1 ha of land for industrial production, it could create an income of USD 150,000 - 200,000/year, higher about 80 to 100 fold-times. Calculating under fixed price in 1994, it can generates VND 2-4.4 billion of industrial production value from 1 ha of land for industrial production a, depending on level of technology and types of industrial production.
On basis of industrial development targets of Bac Giang province to 2020, it is projected demand of land for development of industrial clusters to 2020 under Table 1 below:

 

4. Basis on selecting location and distribution of networks of industrial clusters
Distribution, formation and development of industrial clusters must achieve high efficiency and sustainability on all aspects of economic, society and environment. General requirements for selecting location and distribution of industrial clusters in province of Bac Giang include:
- Industrial clusters must be arranged separately from residential areas and not adversely affected stability of agricultural land, cultural historical sites and landscapes.
- Location for arranging an industrial cluster should be suitable with natural conditions, ecological environment, advantageous to connect and build transportation infrastructure, power supply, water supply and drainage, ensuring that it can be expanded in the future.
- Location of distribution of industrial clusters must be arranged in region which is convenient for transportation, storage of materials and product consumption. Scale of industrial clusters and scale of factories must fit technology and external infrastructure conditions to ensure effectiveness of socio-economic and environment.
- Location of building up industrial clusters should be in hilly areas, less arable land, end of water sources to minimize negative impacts on agriculture, environment and living of the population.
- Distribution of industrial clusters must be suitable, focusing on areas having development potential such as towns, townships, next to corridor of highway, provincial road and inter- commune roads which were and will be upgraded. To pay attention to formation of service - industrial clusters in area of mountainous districts to assume leverage role of agriculture and rural industrialization in this locality.
5. Basis to establish development axis of industrial clusters in province of Bac Giang
In terms of topography, Bac Giang province has two sub-regions as follows:
- (1) Mountainous sub-region: including districts of Son Dong, Luc Ngan, Luc Nam, Yen The which has natural area of over ​​275,805 ha, a population of 593,290 person and a population density of 215 person/km². This is the sub-This region meets difficulties in transport, low intellectual, having many ethnic minorities so exploitations of agro-forestry, mineral potentials for socio-economic development are still little limited, leading to difficulties in layout of industrial clusters.
- (2) Midland sub-region: consisting of Bac Giang city and districts of Viet Yen, Yen Dung  Hiep Hoa, Tan Yen and Lang Giang which has a natural area of ​​106,980 ha, a population of 1,023,074 people, a population density of 967 person/km². Socio-economic of the sub-region develops strongly, potential of agro-forestry, mineral have been exploited well; transportation conditions are quite favorable, land of the sub-region are suitable for development of concentrated industrial clusters and municipalities.
Although accounting for only 28 % of total area of Bac Giang province, but at present, there are 72 % of industrial units and 90 % of industrial production value of Bac Giang province located in the sub-region 2. In condition of limited source of investment capital and promoting rapidly investment capital, it should create favorable conditions for economic sectors to invest in developing sub-region 2 and sub-region 2 will play a role as motive force to boost, embroil sub-region 1. On the other hand, to reduce development gap between two sub-regions, it should pay attention to build many industrial clusters in sub-region 1 in order to fully exploit potentials of this sub-region. First of all, to promote development of transportation, constructing processing industry and mining industry on sub-region 1, developing strongly handicraft industry and other related fields.
For transportation sector: system of industrial clusters of Bac Giang province should establishes, develops in four main roads including national highway 1A, highway 31, highway 37 and provincial highway 398. Out of which:
- Highway 1A has favorable conditions to form industrial axis of Bac Giang province. In addition to intended location for development of concentrated industrial parks, it is expected to plan a number of industrial clusters in Bac Giang city; communes of Hoang Mai, Tang Tien in Viet Yen district; communes of Tan Dinh, Dinh Tri in Lang Giang district.
- Highway 31 runs from Bac Giang city, through districts of Luc Nam, Luc Ngan to district of Son Dong. On this road, its is expected to plan a number of industrial clusters in Doi Ngo town, communes of Phuong Son, Dong Hung in Luc Nam district; Quy Son, Nam Duong in district of Luc Ngan; communes of An Lap, Yen Dinh, town of An Chau of Son Dong district.
- Highway 37 runs from Dinh Tram industrial zone through town of town of Bich Dong in Viet Yen district, town of Thang in Hiep Hoa district to Phu Binh district in Thai Nguyen province. On this highway, it is expected to plan a number of industrial parks in commune of Viet Tien in Viet Yen district, communes of Doan Bai, Hoang An, Thanh Van in Hiep Hoa district.
- Provincial road 398 starts from Dong Viet ferry through town of Neo, Tan My commune in Yen Dung district, commune of Da Mai in Bac Giang city, town of Cao Thuong in Tan Yen district to town of Cau Go in Yen The district. On this road, it is expected to plan many industrial clusters in town of Neo, communes of Canh Thuy and Tien Phong, Tan My in Yen Dung district, commune of Song Mai in Bac Giang city, town of Cao Thuong and communes of Viet Lap, Nha Nam in Tan Yen district; commune of Cau Go in Yen The district.
On the other hand, on provincial roads 291, 292, 293, 296 and 298, it is expected to plan a number of industrial clusters such as Thanh Son industrial cluster in Son Dong district on provincial road 291; industrial clusters of Bo Ha, La Thanh – Trang Ban on commune of Dong Vuong, Xuan Luong industrial cluster in Yen The district on provincial road 292; industrial cluster of Mai Suu in commune of Truong Son, district of Luc Nam on provincial road 293; industrial clusters of Hop Thinh, Hung Son, Duc Thang in Hiep Hoa district on provincial road 296; industrial cluster of Dong Trai in commune of Ngoc Ly, Tan Yen district on provincial road 298.
6. Content of the plan
With above-mentioned direction and research, it is expected to propose plan to 2020 in province of Bac Giang, establishing 56 industrial clusters with a total area of ​​1,182.32 ha (not including 5 industrial complex with an area of ​​190, 7 hectares which were converted into industrial zones), including:
6.1. 29 existing industrial clusters have a total area of ​​564.82 hectares, out of which 11 industrial clusters were filled, 3 clusters has been invested by enterprises and registered to filled, and 15 industrial clusters still have lease land area of 187.21 ha, including:
6.1.1. Bac Giang City: having 5 industrial clusters with a total area of 37.4 hectares, including Xuong Giang I industrial cluster with an area of ​​1.1 ha; Dinh Ke industrial cluster with an area of 9.4 ha; Tho Xuong industrial cluster with an area of 5.8 ha, Xuong Giang II industrial cluster with an area of ​​12.7 ha and Dinh Ke small-sized industrial cluster with an area of 8.4 ha.
6.1.2. Viet Yen district: having 4 industrial cluster with a total area of ​​67.62 hectares, including: Hoang Mai industrial cluster with an area of 9.1 hectares; Dong Vang automobile industrial cluster with an area of 38 hectares; Viet Tien industrial cluster with an area of 8.26 hectares and industrial cluster of Van Ha traditional village with an area of ​​2.26 ha.
6.1.3. Yen Dung district: having 6 industrial clusters with a total area of ​​81 hectares, including: industrial cluster of town of Neo with an area of 6.06 hectares; Tan My industrial cluster with an area of 10.7 hectares; Tan Dan industrial cluster with an area of 5,04 ha; Noi Hoang industrial cluster with an area of 50 hectares; industrial cluster of Tan My-Song Khe with an area of 7.75 ha and industrial cluster of Dong Thuong traditional village with an area of 1,45 ha.
6.1.4. Lang Giang district: having 3 industrial clusters with a total area of ​​45.2 hectares, including: Tan Dinh – Phi Mo industrial cluster of an area of 20 ha; Voi – Yen My industrial cluster of 13.2 ha and Dinh Tri industrial cluster of an area of ​​12ha.
6.1.5. Tan Yen district: having 2 industrial clusters with a total area of ​​48.8 hectares, including: Dong Dinh industrial cluster with an area of 33.6 ha and Dong Bai industrial cluster in town of Nha Nam with an area of 15.2 ha.
6.1.6. Hiep Hoa district: having 4 industrial clusters with an total area of ​​127 hectares, including: Duc Thang industrial cluster of an area of 7 hectares; Doan Bai - Luong Phong industrial cluster with an area of ​​50 hectares; Hop Thinh industrial cluster with an area of 50 hectares and Hung Son industrial cluster with an area of 20 ha.
6.1.7. Yen The district: having 2 industrial clusters with a total area of ​​90 hectares, including: Bo Ha industrial cluster with an are of ​​70 hectares and Cau Go industrial cluster with an area of ​​20 ha.
6.1.8. Luc Nam district: having 2 industrial clusters with a total area of ​​58.8 hectares, including: Doi Ngo industrial cluster with an area of ​​41.8 ha and Gia Khe industrial cluster with an area of 17 hectares.
6.1.9. Luc Ngan district: having 1 ​​industrial cluster with a total area of 9 ha – Trai Ba industrial cluster.
6.2. Expanding 3 existing industrial clusters with an increased area of ​​41.5 ha
To expand industrial cluster of Neo town, Yen Dung district from 6.06 hectares to 16.06 hectares; Tan Dan industrial cluster in Yen Dung district from 5.04 hectares to 15.04 hectares; Viet Tien industrial cluster in Viet Yen district from 8.26 hectares to 29.76 hectares.
6.3. To complete necessary procedures to establish 3 industrial clusters which have detailed plan with an area of ​​63 ha and newly planning 29 industrial clusters with an area of ​​703.7 ha, distributed as follows:
6.3.1. Bac Giang city: completing necessary procedures to establish three new industrial clusters which have detailed plan with an area of ​​63 ha, including: Xuong Giang III industrial clusters with an area of ​​44.3 ha; Song Mai industrial cluster with an area of 11,3 ha and Tho Xuong industrial and trade cluster with an area of ​​7.4 ha.
+ Orientation of arranging cleaning, high technology industries such as electronic; engineering manufacturing; carpentry, textiles, leather footwear, industrial services ...
+ Infrastructure conditions:
- Traffic: it is necessary to build internal roads and other road connecting with the provincial road.
- Electricity, water supply, telecommunications – in short term, sharing with systems of power, water, telecommunications of the city, after 2015, if demand on power, water, telecommunication increase, it will place a particular transformer station.
+ Capital demand for infrastructure investment: VND 189 billion.
6.3.2. Viet Yen district: to plan 3 new industrial clusters with a total area of ​​47.7 hectares, including: Tang Tien industrial cluster with an area of 26 ha; Bich Son industrial cluster with an area of ​​12.7 ha and Trung Son industrial cluster with an area of 9 ha.
+ Orientation of arranging industries: automobiles, motorcycles production and assemble, agricultural and forest products processing, building materials...
+ Infrastructure conditions:
- Traffic: it is necessary to build internal roads and other road to national highway.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 143.1 billion.
6.3.3. Yen Dung district: to plan 2 new industrial clusters with a total area of ​​20 hectares, includes: Tien Phong industrial cluster with an area of ​​15 hectares and Canh Thuy industrial cluster with an area of ​​5 ha.
+ Orientation of arranging industries: processing forestry and agricultural products, small engineering for agriculture, industrial services...
+ Infrastructure conditions:
- Traffic: it is necessary to build internal roads and other road connecting to provincial road No.398.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 60 billion.

6.3.4. Lang Giang district: to plan 4 new industrial clusters with a total area of ​​120 hectares, including: Non Sao industrial cluster with an area of ​​20 hectares; Nghia Hoa industrial cluster with an area of ​​30 hectares; Nui Se industrial cluster in Phi Mo commune with an area of 20 ha and Tan Hung – Xuong Lam industrial cluster with an area of ​​50 ha.
+ Orientation of arranging industries: Woodworking, cattle feed; small engineering for agriculture...
+ Infrastructure conditions:
- Traffic: it is necessary to build internal roads and other road connecting with provincial road.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 360 billion.

6.3.5. Tan Yen district: to plan 2 new industrial clusters with a total area of ​​123 ha, including: Dong Trai industrial cluster in Ngoc Ly commune with an area of ​​70 ha (30 ha in stage I, 40 ha in stage II) and Kim Trang industrial cluster in Viet Lap commune with an area of ​​53 ha (30 ha in stage I and 23 ha in stage II).
+ Orientation of arranging industries: ceramics, building materials, processing of agricultural and forestry products...
+ Infrastructure conditions:
- Traffic: it is necessary to build internal roads and other road connecting with provincial road.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 369 billion.

6.3.6. Hiep Hoa district: to plan 1 new industrial cluster with an area of ​​50 ha: Thanh Van – Hoang An industrial cluster.
+ Orientation of arranging industries: brick and tile production; mechanic...
+ Infrastructure Conditions:
- Traffic: it is necessary to build internal roads and other road connecting with highway road.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 150 billion.

6.3.7. Yen The district: to plan 4 new industrial clusters with a total area of ​​110 hectares, including: Mo Trang industrial cluster in Tam Tien commune with an area of ​​20 hectares, Bo Ha II industrial cluster with an area of 40 ha, La Lanh – Trang Ban industrial cluster in Dong Vuong commune with an area of 20 hectares; Luong Xuan industrial cluster with an area of ​​30 ha.
+ Orientation of arranging industries: cement production, lime, tea processing, poultry slaughter...
+ Infrastructure Conditions:
- Traffic: it is necessary to build internal roads and other road connecting with provincial road.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 330 billion.

6.3.8. Luc Nam district: to plan 6 new industrial clusters with a total area of ​​130 hectares, including: Vu Xa industrial cluster with an area of ​​40 hectares, Binh Son industrial cluster with an area of ​​20 hectares, Nghia Phuong industrial cluster with an area of ​​20 hectares; industrial cluster of Luc Nam town with an area of ​​10 hectares, Bao Son industrial cluster with an area of ​​30 hectares and Mai Suu industrial cluster in Truong Son commune with an area of ​​10 ha.
+ Orientation of arranging industries: thermal, processing of agricultural and forest products...
+ Infrastructure Conditions:
- Traffic: it is necessary to build internal roads and other road connecting with provincial road.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 390 billion.

6.3.9. Luc Ngan district: to plan 3 new industrial clusters with a total area of ​​80 hectares, including: Ham Rong industrial cluster in Nam Duong commune with an area of ​​10 hectares, Cau Dat industrial cluster in Phuong Son commune with an area of ​​50 hectares and Dong Len industrial cluster in Bien Dong commune with an area of 20 hectare.
+ Orientation of arranging industries: processing rice noodles, lynches and other agricultural products, textiles ...
+ Infrastructure conditions:
- Traffic: it is necessary to build internal roads and other road connecting with highway No.31.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 240 billion.

6.3.10. Son Dong district : to plan 4 new industrial clusters with a total area of ​​23 hectares , including : An Lap industrial cluster with a total area of ​​8 hectares, Yen Dinh industrial cluster with an area of ​​5 hectares; An Chau industrial cluster with an area of ​​5 hectares and Thanh Son industrial cluster with an area of ​​5 ha.
+ Orientation of arranging industries: apparel, forestry processing, small engineering  ...
+ Infrastructure Conditions:
- Traffic: it is necessary to build internal roads and other road connecting with highway No.31.
- Electricity, water supply, telecommunications - in short term, sharing with systems of electricity, water, telecommunications of the district and the region, if demand on electricity, water, telecommunication increase, it will puts a particular transformer station.
+ Capital demand for infrastructure investment: VND 69 billion.

6.4. Planning to transfer 3 industrial clusters, merge 2 industrial clusters with a total area of ​​190.7 hectares to be  concentrated industrial park of  province of Bac Giang
Industrial park development plan of Bac Giang province to 2020 is expected:
-  To plan industrial cluster of Hoang Mai in Viet Yen district (19.1 ha ) ; industrial cluster of Hop Thinh in Hiep Hoa district ( 50 ha ) ; Dong Dinh industrial cluster in Tan Yen district ( 33.6 ha ) to be concentrated industrial parks of Bac Giang province.
- To merge Dong Van automobile industrial cluster with an area of 38 ha into Dinh Tram industrial park; merging Noi Hoang industrial cluster with an area of ​​50 hectares into Song Khe - Noi Hoang industrial park.
7. Land utilization for construction of industrial clusters under plan
Table 2: Land using plan of newly established industrial clusters

 

Bac Giang provinces is a mountainous midland region, mountainous and hilly area are mainly distributed in districts of Son Dong , Luc Ngan , Yen The and Nham Bien mountain chain in Yen Dung district , several little areas lying scattered in districts of Lang Giang, Luc Nam and Tan Yen . Most of high mountains chains of Bac Giang province are put into defense plan of the country, so it should not be leveled to lower altitude to build industrial clusters.

Some localities have hilly area which could be leveled but small , dispersed , roads and socio-economic infrastructure are very difficult so it is hard to plan and build industrial clusters, to mobilize and attract investors such as hilly areas in districts of Tan Yen , Son Dong, Luc Ngan, Yen The...
According to approved plan, to 2020, Bac Giang province expects to plan 29 new industrial cluster with a total area of ​​703.3 hectares, including 46 hectares put into land using plan on industrial clusters to 2015, an additional area is 657.7 ha. Out of 657.7 ha using from now to 2020, including:
- Area of hilly land and perennials planting is 222.9 hectares; pond and lake area is 8 ha.
- Paddy production area is 426.8 ha, accounting for 0.61 % (416.8/70,031) of total paddy land area of Bac Giang province. Out of which, one season paddy cultivation land area is 347.9 hectares, accounting for 81.5 %, two seasons paddy cultivation land area is 78.9 ha, accounting for 18.5%.
Thus, out of above-mentioned planned land area, proportion of paddy cultivation land area is negligible, mainly one season paddy cultivation land area, it will not affects food security of Bac Giang province.
8. Stage of industrial cluster development investment in Bac Giang province
On basis of growth target in each stage of industrial production in Bac Giang province, development potential and resource of each region, geographic location, ability to attract investment in infrastructure construction as well as investment in manufacturing and trade in industrial clusters, it is expected to phase development investment in industrial clusters in Bac Giang province as follows:

8.1. In a period to 2015: Total planned area for ​​construction of industrial cluster is 880.42 ha, including:
- 29 existing industrial clusters have total area of ​​564.82 hectares, out of which, industrial land area for rent is 187.21 ha.
- To complete necessary procedures to establish three industrial clusters in Bac Giang city which have detailed plan with an area of ​​63 hectares:
+ Xuong Giang III industrial cluster with an area of ​​44.3 ha;
+ Song Mai I industrial cluster with an area of ​​11.3 ha;
+ Tho Xuong trade and industrial cluster with an area of ​​7.4 ha.
- To establish a new one industrial cluster with an area of 26 ha, there enterprises registering to invest in infrastructure:
+ Tang Tien industrial cluster, Viet Yen district.
- To merge Dong Vang automobile industrial cluster in Viet Yen district (38 hectares) into Dinh Tram industrial park.
- It is expected to expand 3 industrial clusters with an increased area of ​​36.5 ha, including:
+ Viet Yen district: Viet Tien industrial cluster phase II with an increased area of 16,5 ha.
+ Yen Dung district: industrial cluster in Neo town phase II with an increased area of 10ha, Tan Dan industrial cluster phase II with an increased area of ​​10 ha.
- To establish 15 new industrial clusters with a total area of ​​347.2 ha, including:
+ Viet Yen district: Bich Son industrial cluster phase I with an area of 9.2 ha.
+ Yen Dung district: Tien Phong industrial cluster with an area of ​​15 ha.
+ Lang Giang district: to establish 3 area of ​​70 ha industrial clusters : Non Sao industrial cluster with an area of 20 ha in Tan Dinh commune; Nghia Hoa industrial cluster with an area of 30 ha and Nui Se industrial cluster with an area of 20 ha in Phi Mo commune.
+ Tan Yen district: to establish 2 industrial cluster with an area of ​​60 ha: Dong Trai industrial cluster phase I with an area of 30 ha in Ngoc Ly commune and Kim Trang industrial cluster phase I with an area of ​​30 hectares in Viet Lap commune.
+ Yen The district: to establish 2 industrial clusters with a total area of 60 ha: Mo Trang industrial cluster with an area of 20 ha in Tam Tien commune; Bo Ha II industrial cluster with an area of 40 ha.
+ Luc Nam district: to establish 2 industrial cluster with total area of 60 ha: Vu Xa industrial cluster with an area of ​​40 hectares and Binh Son industrial zone with an area of ​​20 ha.
+ Luc Ngan district: to establish 2 industrial clusters with a total area of 60 ha, including: Ham Rong industrial cluster with an area of 10 ha in Nam Duong commune and Cau Dat industrial cluster with an area of 50 ha in Phuong Son commune.
+ Son Dong district: to establish industrial cluster with an area of ​​13 hectares, including : An Lap industrial cluster with an area of ​​8 hectares and Yen Dinh industrial cluster with an area of ​​5 ha .
- To merge one industrial cluster, planning to transfer two industrial clusters to concentrated industrial park in province of Bac Giang:
+ To merge Noi Hoang industrial cluster in Yen Dung district ( 50 ha ) into Song Khe – Noi Hoang industrial park.
+ To plan Hoang Mai industrial cluster in Viet Yen district (19.1 hectares) and industrial cluster of Hop Thinh in Hoa Hiep district (50 hectares) to be industrial parks.
8.2. In a period of 2016-2020: Total increased land area of construction of planned industrial clusters is 301.9 ha.
- It is expected to expand 4 industrial clusters with an increased area of ​​71.5 ha, including:
+ Viet Yen district: Viet Tien industrial cluster phase III with an area of 5 hectares; Bich Son industrial cluster phase II with an area of 3.5 ha area.
+ Tan Yen district: Dong Trai industrial cluster phase II with an area of 40 hectares in Ngoc Ly commune; Kim Trang industrial cluster phase II with an area of ​​23 hectares in Viet Lap commune.
- Establishment of 13 new industrial clusters with a total area of ​​264 ha, including:
+ Viet Yen district: Trung Son industrial cluster with an area of ​​9 ha.
+ Yen Dung district: Canh Thuy industrial cluster with an area of ​​5 ha.
+ Lang Giang district: Tan Hung – Xuong Lam industrial cluster with an area of ​​50 ha.
+ Hiep Hoa district: Thanh Van - Hoang An industrial cluster with an area of ​​50 ha.
+ Yen The district: to establish 2 new industrial zone with a total area of ​​50 ha: La Lanh – Trang Ban industrial cluster with an area of 20 hectares in Dong Vuong commune; Luong Xuan industrial cluster with an area of ​​30 ha .
+ Luc Nam district: to establish 4 industrial cluster with a total area of 70 ha: Mai Suu industrial cluster with an area of 10 ha in Truong Son commune; industrial cluster of Luc Nam town with an area of 10 ha; Nghia Phuong industrial cluster with an area of 10 ha and Bao Son industrial cluster with an area of 30 ha.
+ Luc Ngan district: Dong Len industrial cluster with an area of 20 ha in Bien Dong commune.
+ Son Dong district: to establish 2 industrial clusters with an area of ​​10 ha: Thanh Son industrial cluster with an area of 5 ha and An Chau industrial cluster with an area of ​​5 ha.
- To plan to transfer Dong Dinh industrial cluster in Cao Thuong commune, Tan Yen district (33.6 ha) to concentrated industrial parks of Bac Giang province .
9. Total amount of investment capital for construction of technical infrastructure of industrial clusters

9.1. Capital investment demand for infrastructure of industrial clusters
Investment capital for construction of industrial cluster infrastructure consists of: construction costs of infrastructure projects such as internal roads, clean water supply, drainage, sewage and waste treatment, electricity supply, public lighting, internal communications, executive house, security and other works for operation of industrial clusters.
On basis of cost of construction and investment in infrastructure of industrial clusters in the area: on average, it cost about VND 3 billion for a hectares of industrial clusters to invest in infrastructure. It is estimated total amount of investment capital for construction of infrastructure of industrial clusters of Bac Giang province as following:
- To 2020, total amount of investment capital of VND 1,966 billion.
Out of which:
+ In a period of 2011-2015: VND 1,060 billion.
+ In a period of 2016-2020: VND 906 billion.
9.2. Expected structure of capital mobilization
- The State budget 10 %: VND 196 billion, used to implement preparation of investment and investment promotion, supporting a part of building compensation items, clearance, internal road; internal clean water supply and drainage systems; centralized sewage, waste treatment works.
- Credit capital 38 %: 747 billion.
- Capital mobilizing from enterprises of trading and investing in infrastructure of industrial clusters and other enterprises having demand for leasing land of industrial clusters for development investment in production 52 %: VND 1.023 billion.
II. Environmental impact assessment and environmental protection measures of planned industrial clusters
Construction and operation of industrial clusters in Bac Giang province will have negative impacts on natural environment not only surrounding industrial clusters but surrounding region. Within framework of industrial clusters development plan of province of Bac Giang to 2020, it only refers to main effects and basic solutions to protect and treat environmental pollution, developing sustainably industrial clusters.

1.1. Impact assessment of construction stage on environment.
In this phase, operations of clearance, compensation and leveling as well as construction of technical infrastructure, so there will be much negative impact on environment:

- Impact on air environment :
Dust : it derives from operations of excavating, transporting materials to construction site, operation intensity of transport means increase, so dust concentrations will exceeds allowed norms from 10 - 15 fold-times, impact radius may be up to 30 m in weather conditions of high temperature and wind speed of 2m/s . Ingredients are mostly dirt, rock, spillage sand and cement.
Gas emissions: gas emissions have been released from means of transportation, means of construction including kinds of gas emission: CO, CO2, NOx, gasoline vapors, especially machinery vehicles those use fuel of diesel. Pollution of gas emission of transportation mean will be extended in construction period and happen all day.
Noise: continuous noise and taking place in a long time, focusing on construction sites due to operation of transportation means of materials and construction machines.... These pollution sources can cause adverse impacts on environment and health of laborers working on sites, where noise often exceeds permissible limit of 10-20 dB (A).
- Impact on water environment
Rainwater: with relatively large surface area, when having big rain, rainwater running on construction site would sweep pollutants such as oil, grease, organic matter, feces and urine ... with low content but at large amounts which will also affect quality of water around industrial clusters.
Wastewater of the living: In a process of building, number of laborers working at construction site is relatively big with average water demand of 60little/day/person, it will have a big volume of wastewater discharged into environment.
- Impact of solid waste:
Solid waste of construction activities include wastes of excess or spilled material, material package... Although amount of these wastes is not much but it is persistent type, can be collected for reuse. In addition, solid waste generating during living of laborers on construction sites such as plastic packaging, plastic bottles, cans ... could be dispersed over large area along with other waste to cause stench affecting health of laborers and environment of surrounding air.
1.2. Impact assessment of operation phase on environment.
- Impact on air environment:
Dust: Dust arises from processes of materials, product transportation and production. Construction activities will create much surface having great level of radiation which could increase intensity of radiation in construction site and surrounding area. On the other hand, activities of production, processing, manufacture of building materials, chemicals can create a lot of dust particles causing air pollution in industrial clusters.
Gas emissions: CO, CO2, Nox… could be arose from production factories. If exceeding allowable content, it will directly affect human health, so it is necessary to take effective measures to control and prevent pollution in order to ensure Vietnam’s standards and regulations on environment.
Noise: Noise is a pollutant agent in a number of industrial clusters having sectors of manufacturing engineering, building materials, wood processing ... it must ensure allowed noise under ISO 3985-1999.
- Impact on water environment:
Rainwater: rainwater will be collected in each plant, factories and put into general rainwater drainage system of industrial clusters. This rainwater contains only small amounts of suspended solids, having no significant impact on surface water resources of the region.
Wastewater of production and living: wastewater of industrial clusters includes production wastewater, living wastewater and contingent wastewater. Composition and properties of waste water also depends on production technology, raw material, production scale. Especially units of manufacturing, processing agricultural and forest products processing ... will have some toxic waste causing pollution of surrounding environment, so it should completely treat waste water under permissible standards before being discharged into environment.
- Impacts of solid waste:
Solid waste including scrap of materials, package of finished products and wastes of the living of officers and employees. All these waste will be collected and transported to centralized treatment zone, so it has no impact on environment.
2. Solution of protecting and treating environment, sustainable development of industrial clusters
- To strengthen advocacy , education , training and raising awareness of environmental protection to enterprises, production units and workers in pollution prevention and environmental protection . Increasing capacity and responsibilities of environment management for industrial cluster and local authorities.
- To encourage implementing scientific research on environmental protection in production activities of industrial clusters. For newly established industrial clusters, overall plan on environmental protection must be implemented strictly. In detailed plan, in addition to lay out factories, it is necessary to have environmental protection plan.
- To implement selection and approval of eligible projects for production to ensure environmental conditions for sustainable development of industrial clusters.
- To adhere absolutely principles of technical design to ensure reasonable architectural space, principles of fire prevention and fire fighting and arranging projects under specific factors of environmental pollution ability in order to avoid negative impacts among projects in industrial clusters and between industrial cluster with residential area; area of planting trees must be reasonable and ensure to hit at least 15% of surface area of industrial clusters.
- To design and construct suitably systems of drainage and water supply, waste water treatment to ensure economical use and enhance water recycling; to collect and treat all of production wastewater, living wastewater and runoff rainwater during construction of infrastructure and operational phases of industrial cluster to ensure Vietnam’s environment standard of TCVN 5945:2005, column B and TCVN 6984:2001 .
- During construction of infrastructure and operation of industrial clusters, it must ensure Vietnam’s environment standard relating to air quality: TCVN 5937:2005; TCVN 5939:2005; TCVN 6991:2001; TCVN 6994:2001.
- To collect, transport and treat industrial solid waste and household garbage arising in process of building infrastructure as well as in operation of industrial clusters, ensuring hygiene environment requirements, keeping and handling hazardous waste as defined in Ministry of Natural Resources and Environment’s Circular 12/2006/TT-BTNMT dated 26/12/2006 on guiding practice conditions and procedure of setting up registered document, granting license, code for hazardous waste management.
III. Solution and policies of implementation of plan

1. Development of industrial clusters must comply with approved plan
Approved development plan of industrial clusters of Bac Giang province would be a basis for consideration and decision on establishment of industrial clusters , calling for investment in infrastructure construction , relocating enterprises, production units which cause pollution or risk of pollution from villages , residential and mobilizing, attracting investment in manufacturing and trading in industrial clusters in Bac Giang province.

1.1. For established industrial clusters
To perform conversion in accordance with provisions of Regulation on management of industrial clusters and current regulations of the State.
To focus on attracting investment to fill established industrial clusters. To regularly monitor and evaluate actual implementation and propose measures to deal with industrial clusters:
- In case of industrial cluster being implemented well: attracting well investment capital, fulfilling construction of technical infrastructure on schedule and having areas of land for development, in addition to improvement of infrastructure, creating favorable conditions for enterprises, it could consider to expand industrial clusters .
- For industrial cluster being faced with difficulties in implementation process: it should focus on solving problems to continue implementation. If industrial clusters have no prospect, it is necessary to consider resolutely withdrawal of investment license, decision of approving project or changing used purposes to avoid projects which have been approved but not implemented, arising bad public opinion in society.
1.2. For industrial clusters expected to newly establish
Industrial clusters which are expected to newly establish, beside meeting provisions as prescribed, must be made an investment report of forming industrial clusters with following main contents :
- Essential for establishment of industrial clusters ;
- Practical demand and consistent with relevant plans which has been approved by competent authorities ( development plan of industrial clusters, plan of land use, construction plan.. . ) ;
- Current status of land use and orientation of arranging industries, land use structure and expected plan of attracting investment in industrial clusters;
- To estimate boundary of industrial cluster, area of industrial cluster, ability to connect technical infrastructure in and outside fence of industrial cluster; reporting environmental assessment impact assessment of industrial clusters ; to orient preliminary, analyze and select investment solution of infrastructure of industrial clusters;
- To estimate plans of clearance, relocation assistance ;
- To estimate socio-economic efficiency of industrial clusters ;
- To determine preliminary source of investment capital, investor and mode of  management of construction, investment and exploitation of infrastructure cluster;
- To estimate ability to lease land after establishment of industrial clusters;
- Implementation solution and schedule .
1.3. For industrial clusters expected to expand
Industrial clusters which are expected to expand, beside meeting provisions as prescribed , must be made an investment report of extended investment with main contents:
- Necessity for expansion of industrial clusters ;
- To evaluate development actuality of existing industrial clusters ;

- Expansion orientation of industrial clusters: boundary of industrial cluster, area of industrial cluster, current status of land use of industrial cluster, ability of connection technical infrastructure in and outside fence of industrial cluster; plans of clearance, relocation assistance ;
- To determine preliminary source of investment capital and modes of implementation ;
- Implementation solution and schedule ;
- To estimate ability to lease land and socio-economic efficiency of industrial cluster after expansion.
2. Construction of industrial clusters associated with investment and development synchronous infrastructure in region
Construction of technical infrastructure in industrial clusters is an important factor to create an attractive environment to attract investors to do business and production in industrial clusters. However, if lacking convenience factor of infrastructure works outside fence of industrial cluster as transportation systems, power supply, water supply, communication, whether infrastructure works in fence of industrial cluster are advantage, it does not attract investors.
Therefore, plan of industrial cluster construction must be associated with and to calculate availability of technical infrastructure outside fence of industrial cluster now and in future. In addition to using the State budget to support investment in infrastructure of industrial clusters, it is necessary to have mechanisms and appropriate policies to attract different sources of capital to invest in construction of infrastructure projects outside fence of industrial clusters.
To integrate effectively with national and local target programs with projects of building socio-economic infrastructure outside fences of industrial clusters, development projects of concentrated materials areas in difficulty socio-economic localities in order to create favorable conditions for establishment and effective operation of industrial clusters in Bac Giang province.
3. Setting up and implementing policies of developing social infrastructure for regions of building industrial clusters
Development of industrial clusters play an important role in regional, local development, human resource development. In process of industrialization, industrial areas have high density of industrial units, easy to look for jobs and get higher income than agricultural sector. Therefore, it creates migration from agricultural areas to industrial areas, especially areas having industrial parks, industrial clusters. In process of construction and development of industrial clusters, it is necessary to develop and implement policies of developing social infrastructure such as housing, public works ... for area of building industrial clusters.
Construction of social infrastructure is responsibility of the State and enterprises. In addition to using capital from the State budget, it is necessary to mobilize other resources of society through appropriate, incentive mechanisms.
4. Strengthening investment promotion campaign in industrial clusters
Selection of investors of building and trading infrastructure of industrial clusters having enough financial capacity, infrastructure management experience, extensive customer relationships is a prerequisite to decide result, operational efficiency of industrial clusters in future.
Investment in building and trading infrastructure of industrial clusters business requires huge and centralized capital investments but recovering very slowly, because it have only fixed income from sublease of land, fee of infrastructure and other services, economic efficiency for investors is not high, less attractive to investors.

Therefore, to develop industrial clusters, beside investment capital support from the State budget, it is necessary to mobilize other capital source from companies of electricity, clean water supply, and communications to invest in construction and trading these services. The move will reduces investment expenses, ensure business effectiveness of investors of constructing and trading infrastructure of industrial clusters.
Mobilization of attracting investment in industrial clusters is a critical matter in operational effectiveness of industrial cluster. Investment mobilization is a difficult, complex task, requiring persistence, ongoing implementation and close collaboration, active support of all levels and agencies. At the same time, it must be made on basis of encouraging and promotion policies which are open, attractive, unity, high stability. However, the most effective and cheapest measures of promoting and mobilizing investment are still through investors who have to invest in localities and in industrial clusters.
5. Solutions of generating funds

5.1. Using the State budget to support development of infrastructure in fence of industrial cluster
To enlist industrial promotion capital source of the Central Government and putting up industrial promotion funds of localities for investment and development in infrastructure of industrial clusters in the province, especially industrial clusters in difficulites areas and special difficulties areas, focusing on such items: leveling, internal roads , water supply systems, electrical systems , wastewater treatment systems .

5.2. Creating a favorable environment for investors: having incentive policies on tax, land, credit for enterprises investing in industrial clusters
5.2.1. For enterprise of trading infrastructure of industrial clusters
To construct completely and implement consistently public and clear a system of incentive mechanisms, policies on tax, land, credit to encourage investment and trading infrastructure of industrial clusters, playing a role as a legal basis for calling investors in and outside the province to invest in a sector of constructing and trading infrastructure of industrial clusters in the province.
To create favorable conditions for enterprises of investing and trading infrastructure of industrial clusters to access to sources of low-interest, long term credit; implementation of credit guarantee mechanism ( within scope permitted by law ) to help enterprises of investing and trading infrastructure of industrial clusters raising directly capital from organizations and individuals (especially capital of households having clearance compensation and capital of enterprises registering to invest in production and trading in industrial clusters ) in order to enhance ability to mobilize capital for investment in infrastructure of industrial clusters .
5.2.2. For enterprise of investing in production and doing business in industrial clusters
Production units in following fields, sectores encouraged investment in industrial clusters in the province:
+ Industries of processing of agricultural , forestry and fisheries .
+ Production of new products, items replacing imported products.
+ Production of items using local raw materials, local labor.
+ Production of spare parts, assembling and repairing machinery and equipment for agriculture and rural development.
+ Supporting industries.
+ Production units must apply advanced technology, implementing to apply friendly environment scientific research results.
+ Industrial production units, small-scale industrial units causing pollution or threatening to pollute must relocate out of villages and residential areas.
+ Service units serving manufacturing units, handicraft units.
Enterprise investing in production and trading in industrial clusters are allowed to use land, extending land-use in industrial clusters under provisions of law on land; to le-let or transfer land , buildings and their assets on leased land and enjoy other preferential policies in accordance with law .

6. Solution on compensation, site clearance for construction of industrial clusters
To implement united and consistently mechanism: the State revoke land in accordance with provisions of law for establishment of industrial clusters and then transfer clean land for enterprises of  investing in trading, management and exploitation of technical assistance.
To enhance effectiveness of legal provisions of land policies, combining measures of legal acknowledgement persuasion, propaganda with enforcement measures of land acquisition, especially in sensitive areas and localities expected to be difficulties in recovery of land to build industrial clusters as plan.
To publicize project of industrial cluster, overall plan on building industrial cluster and compensation and support plans, settling harmoniously rights of the people. To ensure synchronization of mechanism and policies with practice.

To develop completely and apply stable in a long time (at least 10 years) price list of land use rights and policy mechanisms for exemption or reduction of land rent, land use tax in industrial clusters to help investors to confidently invest in construction and trading infrastructure of industrial clusters; having favorable conditions to lower charge of land and infrastructure re-letting in industrial clusters.
7. Solution on training human resource associated with development of industrial clusters
To encourage vocational training organizations and individuals to open training classes near industrial clusters to direct train for agricultural laborers who have land to be converted to industrial production, contributing to meet demands of enterprises in industrial clusters and create favourable conditions to stabilize living, jobs for local people.
To build strong link relationships between enterprises in industrial clusters with vocational schools in Bac Giang province to train human resource to meet truly demand of enterprises about profession, quantities and quality of human resource.
To strengthen service of supplying human resource in order to unfreeze labor market, creating favorable conditions for workers and employers to easy access to each other when needed.

8. Conclusion and suggestion
8.1. Conclusion
Industrial clusters development plan of province of Bac Giang to 2020 play an important role in implementing development objectives of industry, traditional handicrafts in Bac Giang province. It is, therefore, necessary to create a high consensus all agencies, local authorities and the people in Bac Giang province as well as courting maximum support of ministries, central agencies and effectively mobilizing social capital resource to push rapidly implementation progress of the plan.
8.2. Suggestion
To suggest the Government and ministries, central agencies to create favorable conditions for supporting Bac Giang province expenditure of technical infrastructure construction of planned industrial clusters in order to mobilize and attract more investment into the province.

Long Giang
Source: www.mpi.gov.vn