I. Scale of Border Gate Economic Zone

Cha Lo International Border Gate Economic Zone (Cha Lo EZ) includes six communes of Dan Hoa, Trong Hoa, Hoa Thanh, Hoa Phuc, Hong Hoa and Hoa Tien of Minh Hoa district with the total natural area of 537.7 km2.

II. Viewpoint and objective for development

1. Viewpoint for development

- Develop Cha Lo EZ with the direction of the market opening and international economic integration; adapt to competitive and cooperative environment in a close combination with the socio-economic development of Quang Binh province, especially with the economic corridor of Highway No.12A, economic corridor along the Ho Chi Minh Road and Hon La economic zone; and in accordance with the development of the North Central region and West-East economic corridor; ensure the association and cooperation with the border-gate economic zones in the region, including Lao Bao, Cau Treo and Vung Ang Economic Zone.

- Build and develop Cha Lo EZ in comprehensive way to become a western urban and economic center of the province and an import and export center for goods and services; combine the economic development with the redistribution of laborers and residents in the economic sectors in order to improve the people’s spiritual and material life.

- Have an apparent policy mechanism and a wholesome investment environment to create the most favorable conditions for foreign and domestic investors to feel secure about investment and production and business development.

- Ensure political security, national defence and environmental protection, strengthen and develop foreign affairs relation with the international and regional countries, especially with the Lao People’s Democratic Republic.

2. Objective for development

a. General objective

Build Cha Lo EZ to become a motive area and an association center in the West-East economic corridor to promote socio-economic development of the province on the west, become a trade and service center with a fairly synchronous and modern infrastructure, a favorable investment and business environment and an incentive policy in order to reduce the gap between mountainous areas and urban areas, contributing to further socio-economic development of the province, protect the territory's sovereignty and border security.

b. Specific objective

- GDP average growth rate for 2006-2020 period: 15-15.5%, of which 14.5-15% for the 2006-2010 period and 15.5-16% for the 2011-2020 period.

- Economic structure shifted towards onto right orientation, increasing the proportion of industry and service, decreasing the proportion of agriculture. With the target till year 2010, proportion of agriculture will achieve 30-35%, industry and service will achieve 65-70%. Until year 2015, proportion of agriculture will decrease by 24-28%, industry and service will increase by 72-76%. Until year 2020, proportion of agriculture will decrease by 15-20%, industry and service will increase by 80-85%.

- GDP per capital by the year 2010 equal to 0.75-0.8 times, by the year 2015 equal to 1 times and by year 2020 equal to 1.2-1.3 times of average income in the whole province.

- The target for year 2010 is that 100% of number of communes will be reached by standard junior secondary compulsory education; 75-80% of medical stations will have standard; 100% of medical stations in commune will have doctors; 80-85% of number of communes will have cultural post office; rate of poor households will decrease by 3-4%/year, rate of birth will reduce by 0.4-0.5%o. The target for year 2020 is that 40% of laborers at working age will be trained; rate of poor household will annually decrease by 2-3%; rate of birth will annually reduce by 0.3-0.4%o; 90% of rural residents will be provided with safe water; over 90% of households will be covered by radio broadcast and television; 100% of medical station will be reached by standard.

III. Development orientation for main sectors and fields

1. Orientation for trade and service development

- Make full use of advantages and develop services to meet the higher and higher demand of socio-economic development. Expand trade network in the area, especially in socio-economic complexes and favorable traffic hub to develop trade and service, ensuring the full supply of goods and services for the people. Invest and build tax-free shops and commercial centers to promote service development in the area. Reinforce and put a cross-border central market into operation. Develop and build a petrol storehouse and a system of warehouses for goods transport.

- Invest in improving, upgrading and developing historical relics to become tourist sites like: Cha Lo central area, Heaven Gate and Khe Ve cross-road... Invest in building Mo Waterfall to become an ecotourism site; form a tourist route connecting Cha Lo with Phong Nha - Ke Bang tourist area.

- Develop and improve the effectiveness of post and telecommunications, goods transport and banking-finance service. Create condition and pay attention to develop the forms of rural credit; expand medium and long-term credit and other services to ensure the people's demands in the area.

2. Orientation for agriculture and rural development

- Focus on agriculture and rural development, shifting the planting and breeding structure to exploit potentials in mountainous area towards developing long-term industrial crops, fruit trees and short-term crops. Apply new scientific and technological advances into agricultural production. Build models of technical advances to improve the productivity and quality of products.

- Pay attention to improving the quantity and quality of herds of cattle and poultry with the direction of increasing the weight of cattle, developing herd of goats, cross-bred ducks and bees.

- Protect ecological environment and increase the capacity of forest protection. Develop sustainable forest economy with the supporting policies for settled agriculture and settlement. Strengthen measures to prevent from uncontrolled deforestation.

- Promote the development of aquaculture in the rivers, ponds and lakes to serve the demand of consumption.

3. Orientation for industry - handicrafts development

- Focus on developing industrial fields of comparative advantage in terms of agriculture and forestry products processing to effectively exploit natural resources. Pay attention to the food processing industry for cattle to serve animal husbandry development.

- Form and develop industrial complexes to promote the development in poor areas and to redistribute inhabitants in the area. Strengthen the development of rural industry and expand traditional handicraft professions. Attach a special importance to training human resources to serve the process of industrialization and modernization.

4. Orientation for infrastructure development

- Make full use of internal forces, strengthen attraction of external forces to invest, build, consolidate and upgrade system of socio-economic infrastructure, ensuring for foreign economy activity, export and import, production and the people's life.

- Regarding traffic system: Give priority to investment in improving, upgrading and exploiting effectively National Road No.12A; concretize the system of inter-commune rural transportation so that 70% communes within the province will be reached by concretized roads by the year 2015 and over 80% by the year 2020.

- Regarding development of power supply: Speed up the progress of building and exploiting effectively the La Trong hydroelectric plant before the year 2010. Invest to improve and increase the capacity of transformer stations and the system of grid in communes and hamlets. Striving for 100% hamlets will be reached by power supply before the year 2015.

- Regarding system of water supply: Upgrade system of existing water supply; accelerate the progress of investment to complete system of water supply for La Trong resettlement area. Striving for 90% inhabitants will be supplied by hygienic water by the year 2020.

- Regarding development of urban system and residential area: Step by step develop urban area in close with industrial complexes and commercial centers. Give priority to investment in commune centers to develop the whole area, striving for forming townlets of Hong Hoa, Hoa Tien and Y Leng by the year 2015. Invest in technical infrastructure in some residential areas along National Road No.12A to distribute inhabitants and develop the economy.

- Develop social and cultural post offices; newly invest and modernize system of communications and television to meet the people's demand in the economic zone.

5. Orientation for social and cultural fields

- Promote educational socialization, improve the quality and effectiveness of education and training, strengthen the work of illiteracy elimination, consolidate material facilities and enhance the professional skills for teachers and educational managers. The target for the year 2010 is that 100% communes will be reached by secondary compulsory education and after year 2010, 100% communes reached by standard secondary compulsory education. The target for the year 2020 is that rate of laborers at working age make up 35-40%.

- Strengthen infrastructure and modernize medical stations to carry out healthcare and medical treatment for local people. Improve the quality of medical examination and treatment and implement free medical treatment for poor people, ethnic minority people and children under six years old. Implement the national health programs effectively. The target for the year 2010 is that 75-80% medical station will be reached standard and 100% for the year 2020. Speed up the family planning movement, especially in far-flung and remote areas. The target for the year 2010 is that rate of birth will be reduced by 0.4-0.5%o and 0.3-0.4%o for the 2011-2020 period.

- Accelerate the movement "the whole people consolidate to build cultural life", eliminate social evils to make positive changes in sport activity. The target for the year 2010 is that the whole border economic zone will be covered by radio broadcast and television.

- Speed up job creation program and give priority to investment in job creation and diversification. Further the poverty-alleviation movement and step by step improve the cultural standards of the people in poor areas. Promote economic growth in close with eliminate hunger and reduce poverty, pay attention to the people's spiritual and material life in far-flung and remote areas. The target of the year 2010 is that rate of poor households will be reduced by 0.3-0.4% and 0.2-0.3% for the 2011-2020 period.

IV. Main solutions for implementation

- Develop a detailed master plan for some key areas; continue adjusting and supplementing detailed master plan for border gate's central area, step by step set up a detailed master plan for townlets and the focused residential areas.

- Make an effective use of investment capital from the projects in order to achieve a high growth rate. Continue making an attractive investment environment and having an incentive policy to create favorable condition to call upon foreign and domestic investment. Diversify forms of capital mobilization; make full use of all resources in economic sectors for development investment and infrastructure construction. Create condition for the people to make a loan for development of production, household economy and farming economy.

- Apply a flexible financial and monetary policy to create favorable condition for trade, payment and transaction relations in border gate economic zone. Encourage economic sectors to engaging in banking service activity as stipulated regulations.

- Have a cooperative policy and a favorable investment and business environment to promote and increase commercial and economic exchanges in border area. Strengthen a close combination with neighboring provinces which have economic zones to exchange the economy; associate with the provinces and cities across the country to promote goods export through economic zone. Actively negotiate with the provinces which share border line with Laos to cooperate, associate and step by step expand export market.

- Implement the deficit spending policy in construction, consumption, investment support, technological renovation, interest assistance after investment. Simplify the procedures to create condition for investors to develop and expand production. Improve the quality and reduce the cost-price of products, encourage investors in developing high-tech industries and fields, increasing the competition of products.

- Strengthen the ability of the management body of economic zone and improve the administrative capacity of all sectors, levels and enterprises. Pay attention to training and retraining the staff of managers. Cultivate and improve professional skills, build a staff of skilled workers to meet to the project's requirements.

- Enhance the ability of direction and management of departments, branches and communes in economic zone. Development orientation should be annually carried out by mid-term plans, development programs and specific investment projects in order to operate and manage the economy and society effectively.

Source: Decision No.1000/QD-UBND