Decision No. 164/2002/QĐ-TTg Approving the Adjusted Planning for the Development of Vietnam's Cement Industry until 2010 and Orientations until 2020

DECISION OF THE PRIME MINISTER

Regarding the approval of the adjusted planning for the development of the Vietnamese cement industry

until 2010 and orientations until 2020

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government promulgating the Investment and Construction Management Regulation, and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government amending and supplementing certain articles of the Investment and Construction Management Regulation;
Considering the proposal of the Ministry of Construction at the report submitted to the Prime Minister No. 752/BXD-VLXD dated May 23, 2002; and the proposal of the Ministry of Planning and Investment at the letter No. 6493 BKH/CN dated October 11, 2002;
Based on the conclusions of the meeting of relevant ministries and sectors held at the Office of the Government on September 16, 2002,

DECISION:

Article 1. Approves the adjusted planning for the development of the Vietnamese cement industry until 2010 and the orientation until 2020, with the main contents as follows:

1. Development Goals:

The goal of developing the cement industry until 2010 and the orientation until 2020 is to meet the domestic demand for cement (in terms of quantity, quality, and type), reserve a portion for export, and quickly transform the Vietnamese cement industry into a strong industry with modern production technology capable of competing with similar products from abroad, contributing to the successful implementation of the industrialization and modernization of the country.

2. Development viewpoint:

- On investment:

Developing the cement industry must ensure economic efficiency, competitive products under conditions of regional and international economic integration; rational use of resources, protection of ecological environment, historical and cultural relics, landscape, and national defense and security. Only invest in construction projects within the approved planning with advanced technology, low investment cost, and capable investors; prioritize investments in projects with capacity of one million tons of cement per year or more, while maximizing the capacity of existing cement production facilities to meet local cement needs.

- Regarding technology:

Utilize advanced world technology, high automation levels, to improve product quality, minimize raw materials, fuel, and electricity consumption; encourage the rapid production, processing, and manufacturing of machinery, equipment, and components domestically, ensuring product quality standards and environmental protection according to Vietnamese and international standards; diversify cement products, popularize the production of high-quality PCB 40 grade cement.

- On capacity scale:

Prioritize the development of large-scale investment projects and consider specific conditions of each project to select appropriate scales.

- On investment capital:

Mobilize maximum domestic capital (credit funds, bond funds, own capital, share capital, capital through the stock market...) for cement investment. Diversify methods of raising capital and forms of investment to involve all economic sectors in cement production investment. For new projects, implement them in joint-stock company form, with state-owned corporations holding controlling shares. The State will support capital for constructing infrastructure outside the factory perimeter for projects located in difficult areas. Cement investment projects can borrow preferential loans to produce equipment, machinery, and spare parts manufactured domestically. Joint venture projects with foreign partners currently in operation, if expanded, must increase the statutory capital of the Vietnamese side to reach 40% or more.

- On planning layout:

Establish cement production facilities based on balancing domestic market demand, regional market, raw material sources, infrastructure conditions, investment capital mobilization capabilities, investor's level and capacity, and the support capability of related industries to reasonably determine the scale, location, product types, and time frame for project investment. Unify the management and direction of implementing the investment plan for cement projects, grinding stations, and the development of the cement industry according to the approved planning. Based on the characteristics of the locality and the type of project, decide on suitable investment methods and forms with the highest effectiveness.

- On inter-sectoral coordination:

Strengthen the connection and coordination between related sectors such as mechanical engineering, transportation, supply of technical materials, infrastructure construction, etc., to best meet the development needs of the cement industry, while creating conditions for other sectors to develop. Mobilize the maximum capacity of mechanical engineering, metallurgy, information technology, automation, etc., in research, design, manufacture of equipment, technology, and spare parts for the cement industry to rapidly increase localization rates. The Government supports the purchase of advanced technology from the state budget for designing and manufacturing various types of cement production machinery and equipment to replace imports. For cement investment projects with capacity of over one million tons per year and grinding stations with capacity of up to half a million tons per year, the principal contractor should be directly assigned to domestic mechanical engineering general corporations with sufficient capacity to undertake the design, production, and supply of complete equipment for the project. For large cement projects, the proportion of domestically produced goods and processed equipment should reach at least 60% in weight and 30% in value.

3. Planning indicators:

- Technical production indicators for cement:

Investment projects for developing the cement production industry must strive to achieve advanced indicators for fuel, raw material, electricity consumption, material usage, exhaust gas dust concentration, noise intensity, degree of automation, domestic equipment manufacturing ratio, labor productivity improvement, diversification of cement types, product quality assurance, cost reduction, and competitiveness with cement from countries in the region and worldwide by 2010.

Some specific indicators are as follows:

- Thermal energy consumption rate: 730 kcal/kg clinker.

- Electricity consumption rate: 95 kWh/ton of cement.

- Exhaust gas dust concentration: 50 mg/Nm3.

Demand and plan for mobilizing cement production capacity

Period 2002-2005.

The period 2006-2010 and 2015, 2020.

List of progress on investment projects and demand for the cement industry (attached annex), including:

+ Investment list for cement projects by 2010.

+ Investment list for independent grinding stations.

+ Capital investment and some major materials for cement production.

+ Demand for staff, engineers, technical workers for cement production.

Article 2. Implementation organization:

1. The Ministry of Construction shall be responsible for:

- Manage and direct implementation according to this adjusted planning scheme. Coordinate with relevant Ministries to study and improve mechanisms and policies, and find specific measures to accelerate the progress of cement project investments to address the shortage of cement in 2005 and subsequent years. During the process of directing implementation, if exceeding authority, report to the Prime Minister for consideration and decision.

- Based on the economic development situation of the country at each stage, submit to the Prime Minister the contents that need to be adjusted in the planning to ensure appropriateness.

- Take the lead, coordinate with the Ministry of Industry to develop programs and direct the manufacture of equipment, machinery, and spare parts domestically to replace imports, while taking the lead and coordinating with the Ministries of Planning and Investment, Finance to study support policies for domestic units to use and participate in manufacturing equipment, spare parts, and raw materials for the Vietnamese cement industry.

2. The Ministry of Natural Resources and Environment shall coordinate with the Ministry of Construction to develop plans, conduct surveys, and assess reserves of raw materials for cement production accurately to meet the needs of long-term and short-term development plans for the cement industry.

3. The Ministry of Finance, the Ministry of Planning and Investment, and the State Bank of Vietnam shall study support policies and find forms of capital mobilization for investment in cement industry projects.

4. The Ministry of Transport shall take the lead and coordinate with the Ministry of Construction to develop plans for integrated transportation development to serve the cement industry, such as specialized and non-specialized transport vehicles, loading and unloading equipment, river port systems, sea ports, railway and road systems, planning locations for building silos, cement clinker storage facilities, and dedicated belt conveyors at ports.

5. The Ministry of Education and Training shall take the lead and coordinate with the Ministry of Construction and the Ministry of Labor, Invalids and Social Affairs to develop programs and direct the organization of training for senior officials, engineers, and skilled workers to meet the development needs of the cement industry through three forms: new training, advanced training, and retraining.

6. The Ministry of Science and Technology and the Ministry of Construction shall develop plans to promote scientific and technological activities in the cement sector towards: absorbing and applying advanced world technologies, enhancing advisory capabilities in project management and research and technology transfer, expanding markets.

7. Build Vietnam Cement Corporation into a strong economic group with modern production technology, high-quality products, exporting part of its cement, playing a leading role in stabilizing the domestic cement market supply.

Article 3. The Ministry of Construction, based on the objectives, viewpoints, and indicators of this adjusted planning scheme, shall develop five-year and annual plans to implement investment and development in the industry in accordance with national economic and social needs and capabilities.

Article 4. THIS DECISION SHALL TAKE EFFECT 15 DAYS AFTER THE DATE OF SIGNATURE.

Ministers, Heads of ministerial-level agencies, Heads of central government agencies, Chairmen of provincial and municipal People's Committees directly under the Central Government, and Vietnam Cement Corporation, other Corporations and Companies related shall be responsible for implementing this Decision.