Decision No. 207/2005/QD-TTg Approves the Strategy for the Development of the Chemical Industry in Vietnam until 2010 (with consideration up to 2020)

Pursuant to …;

Approves the Strategy for the Development of the Chemical Industry in Vietnam until 2010(with consideration up to 2020)

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Considering the proposal of the Ministry of Industry in the report No. 4192/TTr-CLH dated September 23, 2003, the letter No. 6207/CV-CLH dated November 29, 2004, and the letter No. 3034/CV-CLH dated June 10, 2005, and the review opinion of the Ministry of Planning and Investment in the letter No. 3403/BKH-TĐ&GSĐT dated June 4, 2004,

DECISION:

Article 1. Approves the Strategy for the Development of the Chemical Industry in Vietnam until 2010 (with consideration up to 2020), with the following main contents:

1. Development viewpoint.

a) The chemical industry is one of the key industries prioritized for development in accordance with the national economic and social development strategy during each period.

b) Develop the chemical industry based on emphasizing economic efficiency and adapting to international integration trends. The industry structure is developed selectively in both production sectors of means of production and consumption goods, linked to the task of consolidating national security, defense, and food security.

c) Develop the chemical industry by mobilizing all resources both domestic and foreign. Utilize natural resources such as minerals and tropical plants effectively. Implement appropriate policies to attract foreign investment for projects requiring large capital that cannot be met domestically, demanding high technology.

d) Invest in developing the chemical industry using advanced technology to produce high-quality products with competitive costs, ensuring ecological environment.

đ) Developing the chemical industry must be linked to restructuring the industrial sector, redistributing productive forces at the national scale, and promoting the process of economic structural transformation.

2. General objectives.

a) Contribute to creating consistency and unity in implementing the national economic and social development strategy: The chemical industry development strategy must be consistent and compatible with other industries' strategies, aiming to create unified development within the entire industrial sector.

b) Build a chemical industry with a relatively complete structure, including both production of means of production and consumption goods, serving many other industries and better meeting domestic needs and promoting exports.

c) Contribute to the rational distribution of productive forces by industry and region, creating balanced and reasonable development within the industrial sector.

3. Direction for developing certain product groups.

a) Chemical products for agricultural production:

- Fertilizer products: deepen investment, innovate technology and equipment for phosphate fertilizer factories, NPK fertilizer factories, organic bio-fertilizers, develop diverse mixed fertilizers, increase nutrient content, serve domestic usage and export. Focus capital investment on ammonia factories from natural gas, coal, some NPK factories using advanced technology, DAP factories. Utilize waste materials to produce organic bio-fertilizers, reduce environmental pollution, import beneficial microorganisms to produce organic bio-fertilizers and microbial fertilizers according to demand.

- Pesticide products: replace outdated processing technology with advanced technology, producing user-friendly and environmentally friendly products. Strengthen research and production of biological origin products, using new active ingredients, less polluting solvents, complying with regional and international regulations.

b) Petrochemical products: attract investment from all economic sectors, especially foreign investment, to efficiently exploit oil and gas resources. Effectively combine refining, petrochemicals, and gas processing facilities to produce upstream petrochemical products, serving raw materials for other industries' development.

c) Chemical products for industrial production:

- Basic chemical products: chemical products serving industrial production, focusing on basic chemicals needed to ensure sufficient acids for fertilizer production, caustic soda for textile, paper, ore dressing, detergents, and other products. Choose appropriate timing to invest in soda ash, certain metal oxides like titanium dioxide, manganese oxide, and others.

- Electrochemical products, industrial gases: strengthen production, improve product quality to meet domestic consumption needs. Gradually adopt new technologies to produce high-tech products such as special batteries, rare gases.

d) Chemical products for consumer use: continue to strengthen production, increase quantity, diversify, and improve product quality to satisfy the growing domestic market demand.

4. Some solutions and policies to implement the strategy.

Based on economic requirements, national food security, and national defense security, the chemical industry is divided into three groups as follows:

- Group I: production of nitrogenous fertilizers, phosphate fertilizers (including DAP), production of pesticide formulations, production of petrochemical products, production of large quantities of basic chemicals, extraction of raw materials for fertilizer production.

- Group II: production of medicinal herbs, rubber products, exploitation and processing of other raw materials, production of other basic chemicals for industrial use.

- Group III: production of NPK fertilizers, organic bio-fertilizers, electrochemical products, industrial gases, detergent products, paint products, other chemical products.

a) Solutions and policies according to the industry structure:

Investment according to the structure and competitiveness of each product group:

- Group I: includes products that require direct state investment.

- Group II: includes products that should be given preferential state investment.

- Group III: includes other products.

b) Solutions and policies to enhance competitiveness:

- Establish mechanisms to reduce input costs for certain important products related to food security, national security, defense, and public health.

- Develop plans for rational use of domestic resources, limiting imports of intermediate products.

- Strengthen and diversify production linkages.

- Invest in upgrading infrastructure systems.

- Focus on training human resources and improving the qualifications of management teams.

c) Solutions and policies for technological innovation:

Implement key programs on science and technology while establishing and developing the science and technology market. Solutions and technologies must ensure sustainable development requirements and improve the quality of human resources in science and technology development.

d) Solutions and policies for regional structure:

Promote balanced development across regions to meet economic and social development strategies at different stages. Regional structure solutions and policies are applied through increased state intervention by implementing policies to limit or encourage businesses to invest in specific regions to reduce imbalances between regions.

đ) Solutions and policies for trade: the following solutions may be applied:

- Improve mechanisms and policies to restrict the importation of low-quality and unsafe products for users and public health.

- Limit the importation of raw materials and semi-finished products that have been produced domestically with good quality and reasonable prices.

e) Solutions and policies for finance:

- Implement reasonable tax policies.

Encourage and create all conditions for economic sectors to invest in developing the chemical industry. State support capital for investment includes: budget funds, state development investment credit, state-guaranteed credit, investment capital from state-owned enterprises, as well as other sources such as ODA loans, domestic and foreign commercial loans, FDI, and capital raised through corporate bond issuance.

Article 2. Implementation

- The Ministry of Industry shall take the lead, coordinate with relevant ministries, sectors, and localities to organize and implement the Vietnam Chemical Industry Development Strategy until 2010 (with consideration up to 2020).

- Ministries: Planning and Investment, Finance, Health, Agriculture and Rural Development, Construction, Trade, Science and Technology, Natural Resources and Environment, Transport, State Bank of Vietnam, National Development Support Fund, within their assigned functions and powers, shall cooperate with the Ministry of Industry in organizing and implementing this Strategy.

- People's Committees of provinces and centrally-administered cities shall concretize the Vietnam Chemical Industry Development Strategy in accordance with the provincial and municipal context.

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 government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally-administered cities, and related agencies are responsible for enforcing this Decision./.