Decision No. 07/2007/QĐ-BCN Approving the Revised Plan for the Development of the Paper Industry in Vietnam until 2010, with Vision to 2020

Pursuant to …;

Decision No. 07/2007/QĐ-BCN of the Ministry of Industry approving the revised planning for the development of the paper industry in Vietnam until 2010, with a vision to 2020

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THE MINISTER OF INDUSTRY

Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to Decree No. 92/2006/NĐ-CP dated September 7, 2006 of the Government on the establishment, approval, and management of overall planning for economic and social development;

After reaching consensus with the Ministries of Planning and Investment; Finance; Agriculture and Rural Development; Science and Technology; Construction; Trade; State Bank; and Vietnam Development Bank;

At the proposal of the Director of the Department of Consumer Industries and Food.

DECISION:

Article 1. Approves the planning for the development of the paper industry in Vietnam until 2010, with a vision to 2020, with the main contents as follows:

1. Development objectives

a) General Objective

- To build the Vietnamese paper industry with modern technology, forming concentrated paper and pulp production areas with sufficient capacity to meet domestic demand and for export. By 2020, it will meet 70% of domestic consumption needs, promoting exports of paper products, creating competitiveness in regional and international markets.

- To establish centralized raw material areas for paper to ensure adequate supply of raw materials for producing 600,000 tons of pulp by 2010 and 1,800,000 tons by 2020, creating conditions for building large-scale pulp processing plants.

b) Specific objectives

- By 2010: Plant 470,000 hectares of raw material forests, produce 600,000 tons of pulp and 1,380,000 tons of paper.

- By 2020: Add planting 907,000 hectares of raw material forests, produce 1,800,000 tons of pulp and 3,600,000 tons of paper.

2. Planning for product development and layout

a) Product planning

- Concentrate on pulp production: To address the imbalance between pulp production and paper production, while also contributing to the consumption of products by those growing raw material trees for paper.

- Paper production: Fully exploit the production capacity of existing paper mills to meet the demand for printing and writing paper for domestic consumption and export. Invest in building several paper packaging mills (general packaging and high-end packaging) and industrial paper to meet the demand for packaging paper and raw materials for industrial production.

- Raw material area planning: Plan and build centralized raw material areas with sufficient scale to solve raw material issues for paper production and create conditions for building large-scale pulp production facilities.

b) Planning according to territorial regions

The layout of raw material areas and pulp and paper projects nationwide is determined into six regions (Annex No. 2 attached to this decision). Creating balanced development across regions, meeting the strategic economic and social development goals at each stage.

3. Capital investment requirements for the paper industry

Investment capital: Mobilize all sources of capital from various economic sectors both domestically and internationally to invest in raw material areas and large-scale pulp and paper production facilities. Total investment capital for the period 2006-2020 is 95,569 billion VND, of which factory investment is 87,664 billion VND, and forest planting investment is 7,905 billion VND.

4. System of implementation measures and policies for planning

a) Technological solutions

- Implement technological innovation and apply new technologies through research and application of domestic science and technology, technology transfer, and joint venture and cooperation projects with foreign companies.

- For renovation and expansion projects, deep investment projects, applying more advanced technology suitable for the equipment of each current production line.

- Apply wastewater treatment technology in the Vietnamese paper industry, particularly biotechnology.

- Research and apply new technological solutions to use domestic raw materials efficiently and effectively.

- Establish raw material areas for pulp production, applying scientific and technological advances in seed selection, tissue culture technology. Apply intensive and specialized cultivation techniques to increase the yield of raw material trees.

b) Investment solutions

Raw material area investment:

- Invest in establishing raw material areas first, then proceed with factory construction once the raw material areas are ready.

- Concurrently carry out infrastructure upgrades, workforce training, afforestation promotion, and scientific and technical research with raw material area investments.

- Support households with production capital and distribute land rationally, including different types of fertile land.

- Strengthen strict supervision over the construction and organization of implementation of planning development projects for raw material areas.

- When feasible projects are approved, fully mobilize all available forest land within the planned area for planting raw material forests. Develop regulations on organization and supervision to ensure compliance by all levels of government and enterprises.

Investment in pulp and paper factories:

- For new investment projects: Invest in new large-scale pulp production projects to apply advanced technology, modern equipment, and closed-loop production processes, meeting economic criteria and environmental protection standards. These projects should be planned for investment in key raw material areas, carried out in phases.

- For expansion and deepening investment projects: While expanding production and diversifying product lines, improve product quality, apply modern technology and equipment, increase labor productivity, reduce costs, and effectively utilize existing management capabilities and skilled labor.

c) Financial and credit solutions

- Reorganize and convert ownership of existing production companies to mobilize capital from all economic sectors, especially foreign direct investment.

Encourage and create all conditions for economic sectors to invest in developing the paper industry. State capital sources for investment include: budget funds, state development credit loans, state-guaranteed credit, investment capital from state enterprises, as well as other sources such as ODA funds, domestic and foreign trade loans, and FDI...

Allocate funds from the state budget for scientific research, training, infrastructure construction, and environmental treatment for pulp production projects.

d) Solutions regarding technical labor training and human resources

- Simultaneously apply solutions for retraining and new training.

- For retraining, organize short-term courses at vocational schools specializing in papermaking, or in concentrated industrial areas, send workers and technical staff for short-term supplementary training abroad.

- For new training: Regularly train courses at vocational schools specializing in papermaking, with annual admissions.

- For university level and above, regularly train at universities both domestically and internationally.

Article 2. Implementation

1. The Ministry of Industry shall be responsible for leading and coordinating with relevant ministries, sectors, and provincial People's Committees under the central government to direct the development of the industry according to the approved adjustment plan.

2. The Ministries of Planning and Investment; Finance; Agriculture and Rural Development; Trade; Science and Technology; Natural Resources and Environment; State Bank of Vietnam; Vietnam Development Bank shall, within their respective functions, coordinate with the Ministry of Industry to support enterprises and localities in implementing the approved adjustment plan.

3. Provincial People's Committees under the central government shall concretize the development plan for the paper industry within their provinces. Participate with ministries and sectors in inspecting and supervising the implementation of the approved plan to ensure consistency and uniformity with the overall socio-economic development plan of the locality.

Create favorable conditions for the implementation of projects to develop raw material planting areas for paper within the scope consistent with the approved plan and the exploitation and transportation of raw materials for paper.

The Vietnam Paper Association shall cooperate with the Ministry of Industry to implement the Plan through forms such as publicity, dissemination, and guidance to the community of national paper industry enterprises to have appropriate production and business development orientations and plans in accordance with the Plan.

Study and propose adjustments to policies and mechanisms to the competent state management agencies to develop the paper industry according to the Plan.

5. Vietnam Paper Joint Stock Corporation, as the leading enterprise in the industry, shall be responsible for developing and investing in large-scale pulp and paper production projects.

Cooperate with the Vietnam Paper Association to study and propose policies and mechanisms to the competent state management agencies to develop the paper industry according to the approved Plan.

Article 3. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial People's Committees under the central government, and related agencies are responsible for enforcing this Decision./.