Directive No. 10-LS/CNR On Rectifying the Import of Processing Equipment for Timber Products

DIRECTIVE

REGARDING THE CORRECTION OF IMPORTATION OF WOOD PROCESSING EQUIPMENT

From the beginning of 1989 to now, after the Council of Ministers issued Decision No. 99-HĐBT on April 24, 1989 regarding the ban on exporting raw logs and the promotion of wood processing development, many localities and units throughout the industry have actively invested, modernized equipment, explored product consumption markets, and notably imported some wood processing machinery.

However, due to lack of experience and limitations in market research, especially during the initial phase of opening up and interacting with foreign entities, some of these imported equipment have encountered errors. Many units directly or through intermediary brokers have purchased old equipment that has been repaired or refurbished without ensuring necessary technical specifications, or acquired machinery unsuitable for our production level and conditions at excessively high prices, leading to waste while we still face capital shortages. Generally, equipment procurement has not been closely linked to the industry's overall processing development plan and sufficient attention has not been given to training a workforce capable of mastering new technologies.

To gradually correct the importation of wood processing equipment and develop high-quality products to meet export requirements, the Ministry hereby stipulates the following points:

1. To ensure effective investment and avoid widespread dispersion, from now on, priority will only be given to localities and units within the industry's overall processing development plan that have stable raw material sources, consumption markets, infrastructure, and relatively well-trained technical staff. They may import complete sets of equipment or individual components to develop production and produce high-quality products meeting export standards. Units lacking these conditions should primarily use domestic equipment or serve as satellite processing units for the aforementioned facilities.

2. Entities wishing to import equipment must have an Economic and Technical Feasibility Study or a production plan explanation, and if they are joint ventures with other units, they must have a production contract and obtain approval from the supervising authority (ministry, province, or city).

3. Selection of equipment and technology must meet the following requirements:

3.1. Technically: It must ensure necessary technical features to make products comply with predetermined specifications and quality, with appropriate capacity for production scale. It must ensure the required depreciation period, focusing on the scientific and technological progress of each type of equipment and technology suitable for our technical level and production conditions, and the quality standards of each export market.

3.2. Economically: Equipment prices must be reviewed by relevant authorities to avoid overpricing, ensuring energy efficiency and material conservation.

3.3. Importing equipment must be linked to training a workforce and management personnel, as well as ensuring the supply of essential spare parts and materials to guarantee continuous production.

4. To ensure timely and accurate equipment imports, all units and localities must submit the following documents:

4.1. An Economic and Technical Feasibility Study or production plan explanation of the unit or a joint venture contract with other units approved by supervising levels.

4.2. Catalogs and bidding documents from foreign suppliers regarding the equipment to be imported, clearly stating the manufacturer (or branches), technical characteristics, quantities, and qualities of each type of equipment (main and auxiliary), along with major accompanying materials.

4.3. A sales contract for the equipment agreed upon by both parties, clearly stating the price (FOB or CIF), payment terms and methods, conditions for supplying spare parts and replacement parts, etc.

The Forest Industry and Plantation Timber Department is tasked with assisting, guiding, and inspecting the implementation of the above regulations.

The Mechanical Industry Union is tasked with conducting inspections and evaluating the quality of imported equipment through contracts with relevant entities, training workers, installing equipment, testing operations, and researching to produce some low-demand quality replacement parts domestically.

The importation of such equipment can be handled directly by the unit or through a state import-export agency, but it must have all the required documents as specified above.

The Ministry requests all units in the industry to promptly correct the above work. Any new issues arising during implementation should be reported to the Ministry (sent to the Forest Industry and Plantation Timber Department) for prompt resolution.