Directive No. 98/BXD-KH1 on Strengthening Management of Cement Circulation

 DIRECTIVE

ON ENFORCING MANAGEMENT OF CEMENT DISTRIBUTION

Based on the results of cement production and consumption in the first quarter of 1990, the Ministry observes that although the cement production volume in the first quarter of 1990 has not reached the average level for the year 1990, it has increased by approximately 140,000 tons compared to the first quarter of 1989.

However, the volume of state and people's basic construction projects in 1990 is very large. Therefore, the demand for cement also requires a significant increase over 1989.

In light of this situation, the Ministry has issued several mechanisms to guide the Cement Association, cement factories, and supply units through various measures to boost production, importation, and distribution to ensure that cement reaches consumers with the shortest route and at the most reasonable prices.

To achieve the aforementioned objectives, the Ministry instructs the Cement Association, cement factories, supply units, and related entities to implement the following tasks:

1/ The Cement Association strictly directs the delivery of raw materials to factories, ensuring that factories produce according to the assigned plan. In 1990, factories must strive to exceed the state plan, ensuring that the total cement production of the Ministry reaches from 2.5 million tons to 2.6 million tons.

At the same time, the Cement Association closely monitors the market, proactively importing clinker and cement (mainly for the southern region) to stabilize cement prices nationwide.

2/ Based on the product consumption plan assigned by the Ministry for 1990, the Cement Association guides factories to develop quarterly and monthly consumption plans to be implemented through economic contracts with supply units under the Ministry, or with designated customers purchasing directly from the factory.

The sale of cement should primarily focus on meeting the basic construction needs, key national projects, and other legal quotas according to the plan. The quota limits set by the Ministry and the economic linkage sales quotas are guiding quotas. Factories base their sales on these limits and sell to Construction Departments through economic contracts. For mountainous provinces, preferential policies according to state guidelines must be applied.

3/ To strictly enforce reporting and statistical systems regarding production and supply. In addition to the periodic reporting and statistical system prescribed by the General Statistics Office, the Ministry requests the Cement Association, cement factories, and supply companies under the Ministry to report directly to the Ministry's Office every five days about production and supply results for initial guidance. When deemed unnecessary, the Ministry will adjust accordingly.

The Planning Department is responsible for guiding the reporting forms according to this directive.

4/ To assist the Ministry in directing production and consumption in accordance with the set goals, the Ministry decides to establish a working group to inspect and guide implementation. This working group is led by the Planning Department together with the Building Materials Department, the Inspection Board of the Ministry, and the Cement Association.

The working group's responsibilities include:

- Guiding the development of monthly consumption plans at cement factories and supply companies according to the Ministry's directives.

- Guiding the implementation of cement purchase and sale mechanisms at factories and supply companies based on different quota sources.

- Inspecting the implementation of cement purchases and sales at factories and supply companies with approved targets.

- Identifying organizations and individuals reselling cement for profit, and negative behaviors such as bribery, speculation, and market manipulation when cement is scarce. Drafting records and recommending measures to address these issues or directly requesting law enforcement agencies to cooperate in implementing preventive measures.

- Communicating and guiding the implementation of this directive and emergency measures concerning cement purchases and sales, and prioritizing cement supply.

- The working group is permitted to work directly with relevant units involved in cement supply and consumption nationwide to regularly or irregularly inspect the implementation of cement consumption according to this Directive.

The Ministry requests the heads of all units to strictly comply with this Directive.