Decision No. 51/2001/QD-TTg Approving the Plan for the Development of the Chemical Industry in Vietnam for the Period 2001-2005

Pursuant to …;

Approving the plan for the development of the chemical industry in Vietnam for the period 2001-2005

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PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Considering the proposal of the Ministry of Industry (proposal No. 4871-TTr-KHĐT dated December 22, 2000) and the opinions of the Ministries of Planning and Investment (Letter No. 898 BKH/CN dated February 19, 2001), Finance (Letter No. 1176 TC/TCDN dated February 16, 2001), Agriculture and Rural Development (Letter No. 298/BNN/KH dated February 7, 2001), Science, Technology and Environment (Letter No. 348/BKHCNMT-CN dated February 12, 2001).

DECISION:

Article 1. Approving the plan for the development of the chemical industry in Vietnam for the period 2001-2005 with the main contents as follows:

I. OBJECTIVES OF THE PLAN:

1. Gradually build a chemical industry with a reasonable and modern structure, forming industrial zones, large-scale chemical production complexes with advanced technology, effectively utilizing domestic resources, meeting market demands, replacing imports, and eventually exporting to foreign markets.

2. Continue to seek funding sources and investment forms to implement new projects such as urea fertilizer; diammonium phosphate (DAP); caustic soda; soda ash; automobile tires, tractors, and high-value products.

3. Quickly deepen investments, innovate existing technologies and equipment to produce products with high domestic demand, advantages in raw materials, and competitive potential such as processed phosphorus fertilizers; mixed NPK fertilizers; automobile, bicycle, and motorcycle tires; phosphoric acid (H3PO4); tripolyphosphate; caustic soda (NAOH); sulfuric acid (H2SO4); light soda ash, batteries.

4. The average annual growth rate over five years will exceed 15%.

II. DIRECTIONS AND TASKS OF THE PLAN FOR THE PERIOD 2001-2005:

1. Fertilizers:

a) Phosphorus fertilizers:

Deepen investments, expand capacity at the Supe Phosphate and Chemical Lam Thao, Supe Long Thanh, Molten Phosphate (Van Dien, Ninh Binh) factories. Accelerate the preparation work for the construction of the Diammonium Phosphate (DAP) factory; consider building a super phosphate fertilizer plant in Lao Cai. Complete phase I and continue phase II, increasing the mining and processing capacity of apatite ore to 760,000 tons/year.

b) Urea fertilizers:

Complete the technical renovation project of the Ha Bac Ammonia Plant on schedule. The Vietnam Chemical Corporation will participate with the Vietnam Oil and Gas Corporation in constructing two ammonia plants from gas in Phu My and Ca Mau; actively implement the coal-based ammonia plant project.

c) Mixed NPK fertilizers:

Develop in balance with demand and ensure rational distribution according to territorial regions and crop types, focusing on technological innovation, equipment upgrades, improving quality, and diversifying varieties to meet domestic needs.

d) Vigorously produce high-nutrient organic bio-fertilizers.

2. Rubber products:

Innovate technology and equipment, accelerate investment expansion, improve product quality, and prepare conditions for constructing an automobile tire factory with a capacity of 2 to 3 million sets/year by 2005. Research and implement the production of technical rubber products.

3. Basic chemicals:

In addition to intensifying the production of traditional basic chemicals (sulfuric acid, phosphoric acid, hydrochloric acid, tripolyphosphate, light soda ash...) to meet market demands, it is necessary to study and prepare investments for large-scale caustic soda and soda ash production to serve the development of light industry, construction materials, metallurgy, and oil refining.

4. Petrochemicals and other chemicals:

a) Maintain and fully utilize the production capacity of existing petrochemical products: dioctyl phthalate (DOP), polyvinyl chloride (PVC); proactively coordinate with the oil and gas sector and related sectors to prepare projects for new petrochemical products such as polystyrene (PS), polypropylene (PP); polyethylene terephthalate (PET), nylon (PA); polyester fiber (PES); vinyl chloride monomer (VCM) as raw material for PVC. Develop raw materials for adhesive production to support the program of ensuring the production of 1 million cubic meters of wood products. Consider petrochemicals as a new important direction in the strategy for developing the chemical industry in the coming period.

b) Regarding batteries, batteries, paints, detergents, plant protection chemicals... mainly deepen investments, innovate technology, and improve product quality to meet domestic needs and gradually export. By 2005, achieve the goal of producing major products: 1.1 million tons of super phosphate fertilizer, 600,000 tons of molten phosphate fertilizer, 330,000 tons of diammonium phosphate (DAP), equivalent to 900,000 tons of super phosphate fertilizer/year; 1.42 million tons of urea fertilizer (industry-wide); 1.8 million tons of mixed NPK fertilizers; 700,000 tons of sulfuric acid; 130,000 tons of caustic soda (NAOH) finished product; 1.2 million sets of automobile tires; 800,000 kWh of batteries.

III. ON INVESTMENT DEVELOPMENT TO IMPLEMENT THE PLAN:

1. The total investment capital requirement for the entire industry during the 2001-2005 period is approximately 29 trillion VND, of which the Vietnam Chemical Corporation accounts for about 18 trillion VND (including foreign loans or domestic commercial loans totaling 8.5 trillion VND, the remainder being preferential loans, self-supplementation, and other sources).

2. The Ministry of Industry shall coordinate with relevant ministries, sectors, and localities, submit specific project approvals to the Prime Minister within their authority, along with recommendations on funding sources, policies for mobilizing and using funds for each project, and production support policies to ensure sustainable development of the Vietnamese chemical industry.

Article 2. Management and implementation:

1. The Ministry of Industry is responsible for managing and directing the implementation of the plan for the development of the chemical industry in Vietnam for the period 2001-2005 and performing the following tasks:

- Coordinate with the Ministries of Planning and Investment, Construction, National Defense; People's Committees of provinces and cities concerned and the Vietnam Chemical Corporation to determine investment portfolios, scale, and locations of new projects in each phase;

- Submit to the Prime Minister for approval any adjustments or supplements to the plan after reaching consensus with relevant ministries, sectors, and localities.

- Study and develop mechanisms and policies to create investment capital, utilize domestic raw materials and materials, modernize technical equipment, enhance management capacity in the chemical industry, and submit for approval by the Prime Minister.

2. The Ministries of Planning and Investment, Finance, Industry, and the State Bank of Vietnam shall arrange to find sources of capital both domestically and internationally, including concessional ODA and FDI loans, to meet the investment needs of the chemical industry.

Article 3. The Vietnam Chemical Corporation shall be responsible for implementing the plan. Ministries, sectors, and People's Committees of provinces and centrally governed cities shall cooperate and assist in the implementation process according to their respective functions and responsibilities, with particular attention to ensuring consistency and synchronization between the Vietnam Chemical Corporation's plan and the development plans of ministries, sectors, and localities.

Article 4. The Vietnam Oil and Gas Corporation shall be responsible for coordinating with the Vietnam Chemical Corporation to finalize the development plan and implementation solutions for specialized urea production and petrochemicals in accordance with approved objectives and directions.

Article 5. This Decision takes effect fifteen days from the date of issuance.

Article 6. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities, Chairpersons of Management Councils and General Directors of the Development Support Fund, Chairpersons of Boards of Directors and General Directors of the Vietnam Chemical Corporation and the Vietnam Oil and Gas Corporation are responsible for enforcing this Decision./.