Decision No. 115/2001/QD-TTg Approving the Overall Master Plan for the Development of the Construction Materials Industry in Vietnam until 2010.

DECISION OF THE PRIME MINISTER

Regarding the approval of the Overall Master Plan for the Development of the Construction Materials Industry in Vietnam until 2010

ngành công nghiệp vật liệu xây dựng Việt Nam đến năm 2010

PRIME MINISTER

Based on the Government Organization Law dated September 30, 1992;

Considering the proposals of the Ministry of Construction submitted in the reports No. 05/TTr-BXD dated January 11, 2000 and No. 2346/BXD-VLXD dated December 20, 2000;

Considering the proposal of the Ministry of Planning and Investment in the letter No. 512 BKH/CN dated January 31, 2001 and the opinions of relevant ministries,

DECISION:

Article 1Approve the Overall Master Plan for the Development of the Construction Materials Industry in Vietnam until 2010, with the main contents as follows:

1. Objectives:

Develop production of construction materials to meet domestic demand and for export.

2. The overall planning viewpoint on the development of the construction materials industry in Vietnam until 2010:

On technology: It is necessary to combine and quickly adopt advanced world technologies and equipment with domestic production technologies and equipment to soon achieve modern technology at increasingly high levels of automation, ensuring both Vietnamese and international environmental standards; products meeting international standards must have competitive capabilities in regional and global markets.

On scale and capacity: Select appropriate production scales, combining large, medium, and small scales, fully utilizing the existing capacity of construction material production facilities, harmonizing to take advantage of local strengths in raw materials, market, human resources, especially for mountainous provinces, Central Highlands.

On mobilizing investment capital: Diversify investment forms and economic sectors participating in investment to mobilize domestic and foreign investment capital.

On managing investment : Manage and implement investment in developing the construction materials industry according to the plan, using investment methods and forms suitable to the characteristics of localities, economic sectors, and project types.

Harmoniously integrate production and consumption with other economic sectors such as: transportation, supply of technical materials, infrastructure construction, to support the development needs of the domestic construction materials industry. At the same time, maximize the capabilities of related industries like machinery, metallurgy, information technology, and automation to research, design, and manufacture technological equipment and spare parts for the construction materials industry to replace imports. Ensure economic efficiency, rational use of domestic resources, protection of ecological environment, historical and cultural relics, landscape, and national defense and security in the development of construction materials production.

3. Orientation for planning indicators (Annexes I, II, III):

The construction materials industry needs to continue investing in and developing some basic materials such as

: cement, building materials, roofing materials, cladding materials, construction stone, sanitary ceramics, construction glass, construction sand, refractory materials, lime, paint, while focusing on researching and developing new materials to serve the construction industry and social needs. Orient specific types of materials as follows: a) Cement:

Continue implementing Decision No. 970/1997/QĐ-TTg dated November 14, 1997 of the Prime Minister approving the Plan for Developing the Cement Industry until 2010. During implementation, the Prime Minister will make specific decisions to adjust certain comprehensive indicators of the industry to suit the situation.

From 2003, foreign joint venture cement projects must comply with the export quota of cement committed in the joint venture contracts and stipulated in the investment permits. From 2004, the export target for cement (excluding joint ventures with foreign countries) must reach at least 1 million tons/year.

b) Building materials:

Reorganize the production and business of traditional building materials in local areas to minimize the use of arable land and build unregulated traditional kilns causing environmental pollution in suburban areas, cities, towns. Gradually develop non-fired brick products in regions without firing materials, aiming to eliminate the production of fired clay bricks by traditional kilns near urban areas before 2005, and in other regions before 2010.

Continue improving technology and stabilizing production for existing fired brick facilities.

Invest in constructing additional small-scale fired brick production lines with capacities of 7 or 10 million pieces/year using domestically manufactured equipment.

Develop and stabilize production of metal and non-metallic roofing materials. Attention should be given to investing in the development of non-fired tiles in regions without good clay, such as northern mountains, Central Highlands, and South Central Coast.

c) Roofing materials:

The construction materials industry needs to plan research and use alternative materials to asbestos in the production of roofing sheets. Strictly inspect existing asbestos roofing sheet production facilities according to environmental and health standards, not increase production volume, and not invest in new asbestos roofing sheet production facilities. Starting from 2004, asbestos materials cannot be used in the production of roofing sheets.

d) Cladding materials:

Develop a diverse range of cladding materials, focusing on larger sizes, cladding materials suitable for the Vietnamese climate, and products with export potential. Export targets from 2005 should reach at least 20% of annual production volume.

Invest in upgrading technology to enhance mechanization and automation levels in existing production lines.

Research the production of glazes and colors for cladding materials and sanitary ceramics to replace imports. Develop the mining and processing industry for raw materials for cladding materials and sanitary ceramics production.

đ) Sanitary ceramics:

Synchronize production volume and quality of accessories with sanitary ceramic products to meet domestic demand and for export. Export targets from 2005 should reach at least 20% of annual production volume.

Invest in additional high-quality sanitary ceramic production facilities to meet domestic demand and increase export capacity.

e) Construction glass:

Implement investments in high-quality glass production facilities to meet domestic demand and for export.

Export targets from 2005 should reach at least 30% of annual production volume including joint venture projects with foreign countries.

Implement research and production of other construction glass products: mineral wool, fiberglass wool, composite materials.

g) Refractory materials:

g) Vật liệu chống lửa:

Invest further in some existing production facilities to increase capacity, product quality, and replace imported goods.

Invest in additional production lines to achieve a total annual production capacity of 115,500 tons of various refractory bricks by 2010.

h) Construction stone:

Continue to expand and build new construction stone extraction sites to meet domestic construction needs, particularly ensuring the demand for stone in the Mekong Delta region. Stone production facilities must ensure the conservation of natural resources, environmental protection, scenic beauty, historical and cultural heritage, and gradually modernize the construction stone industry.

i) Construction sand:

Organize the restructuring of both state-owned and non-state-owned sand extraction sites based on reasonable zoning to protect natural resources, water conservancy projects, and river flows.

Establish centralized sand storage areas and plan the supply of sand or alternative materials in the Central Highlands, Northwest, and Northeast regions.

k) Other types of building materials:

The building materials industry should research and invest in new types of building materials such as : artificial boards; composite materials; glass materials; waterproof and mold-resistant paints; lightweight aggregate building materials that are impermeable, salt-resistant, long-lasting; production of PC50 and PC60 cement; concrete additives; materials for treating weak soil foundations like geotextiles, geogrids, soil stabilization additives, and other special materials.

(The development categories of building materials, total production value, raw material requirements, labor, and investment capital for the building materials industry are listed in Appendices I, II, and III attached hereto).

Article 2Implementation measures:

1. The Ministry of Construction shall coordinate with relevant ministries and localities to develop planning for the development of each type of building material until 2010 according to regional and territorial suitability in accordance with the overall planning.

Study policies to support units participating in the manufacture of equipment, spare parts, and raw materials for the Vietnamese building materials industry, initially focusing on the cement, ceramic tiles, and sanitary ware industries.

2. The Ministry of Trade shall coordinate with relevant ministries, study, and propose non-tariff measures to protect domestic production after Vietnam fulfills its commitments under AFTA. Strictly monitor the import of asbestos materials for roofing sheet production, aiming to stop importing asbestos for roofing sheets from 2004.

3. The Ministry of Industry shall conduct investigations, surveys, and assessments of reliable reserves of raw materials for building materials production to timely serve long-term planning and annual investment construction projects.

The Ministry of Industry shall oversee and coordinate with the Ministry of Construction and related ministries to establish plans for research, design, and manufacturing of equipment, spare parts, and supplies for the building materials industry.

4. The Ministry of Transport shall coordinate with the Ministry of Construction to develop infrastructure investment plans for the building materials industry, such as specialized and non-specialized transportation means, loading and unloading equipment, port systems on rivers and seas, rail and road transport for the movement of raw materials and products.

5. The Ministry of Education and Training shall coordinate with the Ministry of Construction to develop training programs for skilled workers and engineers to meet the development needs of the building materials industry through three forms: new training, advanced training, and retraining.

6. The Ministry of Planning and Investment shall coordinate with related ministries and sectors to study supportive policies and find investment capital for building materials industry projects.

7. The Ministry of Science and Technology and Environment shall coordinate with the Ministry of Construction to develop plans to promote scientific and technological activities in the field of building materials to: absorb advanced world and regional technology, enhance research and advisory capabilities in management, operation, supervision, technology transfer, and market expansion. Issue regulations on technology, technical standards, and the environment to manage the development of the industry.

The Ministry of Science and Technology and Environment shall cooperate with the Ministry of Health and related ministries to inspect production sites for roofing sheets using asbestos materials, ensuring that production continues only if products meet environmental and health standards.

Article 3The Ministry of Construction shall base on the objectives, viewpoints, and indicators of this planning, supervise and direct its implementation. Regularly assess the implementation of the planning and propose adjustments to align with specific economic and social conditions nationwide.

Article 4. This Decision takes effect fifteen days after the date of signature.

Article 5Ministers, heads of agencies equivalent to ministries, heads of government agencies, Chairmen of Provincial People's Committees directly under the central government, Boards of State-Owned Corporations, and heads of related agencies are responsible for implementing this Decision./.

ANNEX I

production capacity of the building materials industry

(Issued along with Decision No. 115/2001/QĐ-TTg

dated August 1, 2001 by the Prime Minister)

ANNEX II

Total production value of the building materials industry in Vietnam

(Annexed to Decision No. 115/2001/QĐ-TTg

dated August 1, 2001 by the Prime Minister)

 ANNEX III

Raw material and labor requirements - investment capital for the building materials industry

(Issued along with Decision No. 115/2001/QĐ-TTgdated August 1, 2001by the Prime Minister)