Decision No. 150/2007/QD-TTg dated December 10, 2007 of the Prime Minister approving the master plan on the development of Vietnams industrial explosive material industry up to 2015 with orientations to 2025

DECISION

APPROVING THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAMS INDUSTRIAL EXPLOSIVE MATERIAL INDUSTRY UP TO 2015 WITH ORIENTATIONS TO 2025

THE PRIME MINISTER

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

At the proposal of the Ministry of Industry (now the Ministry of Industry and Trade) in Document No. 3514/TTr-BCN of July 27, 2007,

DECIDES:

Article 1. To approve the master plan on the development of Vietnams industrial explosive material industry up to 2015 with orientations to 2025 with the following principal contents:

1. Development view points

- Industrial explosive materials arc commodities and services subject to restricted trading and unified state management. The master plan on the development of the industrial explosive material industry must conform with the national industrial development planning and local socio-economic development plannings and meet the national economys demand for industrial explosive materials and the export demand in the region;

- To build and develop the industrial explosive material industry into an advanced one from the production of base materials and industrial explosive materials to the provision of complete explosion services, meeting requirements on safety, utility, efficiency eco-environment protection and social order and security.

- To make intensive investment and make full use of the existing capacity of industrial explosive material production establishments and research centers. To bring into play internal resources and involve the chemicals and defense industries and the countrys science and technology forces in carrying om research for the industrial explosive material industrys development.

- To expand international cooperation and study the application of world advanced technologies to the production and use of industrial explosive materials and industrial explosion services.

- To closely combine economic development with defense, defense with economic development in the industrial explosive material industrys development in order to well fulfill both tasks of economic construction and national defense.

2. Development objectives

- To complete and modernize the existing emulsion explosive production line, step by step eliminate kinds of traditional explosives (containing TNT), including industrial explosive materials recycled from defense explosive material wastes, so that after 2010, these explosives will be used at a rate not exceeding 5%-10% only in places where conditions permit.

- To invest in the production of loose emulsive explosives, waterproof safe emulsive explosives with high blasting power for use in mine pits where methane gas and explosion dust accumulate. To study and invest in the production of some kinds of explosives and explosion support devices in service of the oil and gas industry.

- To invest in the production of ammonium nitrate (NH₄NO₃) - the main material for explosives production - for timely and adequate supply to explosive production establishments. To invest in the production of a number of other materials for the production of explosion support devices.

- To organize the industrial explosive material production, trading network and explosion services in a professional manner, promptly meeting household demand while ensuring social order and security.

- To enhance human resource training and improve state management mechanisms and policies towards the industrial explosive material industry.

3. Development planning

a/ Industrial explosive material demand

The demand for industrial explosive materials is estimated at 98,500 tons in 2007 and 120,000 tons by 2010; from 2015 to 2025, the demand will gradually increase from 150,000 tons of explosives/year to around 180,000 tons/year.

b/ Industrial explosive material production output

In order to meet the domestic demand for industrial explosive materials sufficiently in quantity and quality and at reasonable prices and export part of the output, the industrial explosive material production output is estimated as follows:

- To gradually increase to around 120,000 tons of explosives/year by 2010.

- To gradually increase to around 150,000 tons of explosives/year from 2011 to 2015.

- To gradually increase to around 180,000 tons/ year from 2016 to 2025.

c/ Development planning

- The 2007-2015 period: To boost investment in the production of ammonium nitrate, emulsive explosives for pit safety, loose emulsive explosives, explosive materials for the oil and gas industry, to improve the quality of existing explosives and explosion support devices.

- The 2016-2025 period: To invest in technology renewal and improvement of industrial explosive material quality, the investment scale and progress of projects in the 2007-2015 period will be adjusted according to practical conditions.

(See the list of investment projects in the attached appendix).

d/ Investment capital

- Total investment capital for the industrial explosive material industrys development:

The investment capital demand is estimated at VND 1,794 billion by 2025, of which:

- Around VND 1,294 billion will be for the 2007-2015 period.

- Around VND 500 billion will be for the 2016-2025 period.

- Investment capital sources:

+ Loans and other capital sources for investment according to the approved list of projects.

+ State budget capital for planning adjustment, research and development, trial production and national reserve of industrial explosive materials, will be provided in accordance with current regulations.

Article 2. Organization of implementation

1. The Ministry of Industry and Trade, in performing its function of state management of industrial explosive materials, shall direct the master plans implementation. To organize the evaluation of the master plans implementation, propose adjustments to the master plan suitable to practical conditions; to coordinate with concerned ministries and branches in studying and improving legal documents, mechanisms and policies for the industrial explosive material industrys development.

The Ministry of Industry and Trade shall coordinate with the Ministry of Defense in directing industrial explosive material production enterprises to ensure sufficient supply for the national economy; to study and obtain technologies to produce industrial explosive materials in service of the oil and gas industry.

2. The Ministry of Planning and Investment and the Ministry of Finance shall coordinate with concerned ministries and branches in studying policies to support, balance and allocate state budget funds for planning adjustment, research and development, trial production and national reserves of industrial explosive materials.

3. The Ministry of Science and Technology shall coordinate with the Ministry of Industry and Trade and the Ministry of Defense in directing the industrial explosive material industrys scientific and technological research activities, and obtaining and organizing the application of regional and world advanced technologies and sciences to the development of Vietnams industrial explosive material industry.

4. The Ministry of Public Security shall coordinate with concerned ministries and branches in directing the assurance of security, order, and fire and explosion prevention and control in the production, trading, transport, use and preservation of industrial explosive materials and in fighting the illegal trading of industrial explosive materials.

5. The Ministry of Labor, War Invalids and Social Affairs shall coordinate with concerned ministries and branches in studying adjustments and supplements to policies for the industrial explosive material industrys laborers.

6. Provincial/municipal Peoples Committees shall, based on the approved master plan, facilitate activities of industrial explosive material production investment and manage, according to their competence, the trading, transport and use of industrial explosive materials in their localities.

Article 3. This Decision takes effect 15 days after its publication in CONG BAO and replaces the Prime Ministers Decision No. 64/2002/QD-TTg of May 23, 2002.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal Peoples Committees, and heads of concerned agencies shall implement this Decision.

APPENDIX

LIST OF MAJOR INVESTMENT PROJECTS ON INDUSTRIAL EXPLOSIVE MATERIALS UP TO 2025
(Attached to the Prime Ministers Decision No. 150/2007/QD-TTg of September 10, 2007)