Decision No. 164/2002/QD-TTg dated November 18, 2002 of the Prime Minister approving the adjusted planning on development of Vietnam's cement industry till 2010 and its orientations till 2020

DECISION

APPROVING THE ADJUSTED PLANNING ON DEVELOPMENT OF VIETNAM’S CEMENT INDUSTRY TILL 2010 AND ITS ORIENTATIONS TILL 2020

THE PRIME MINISTER

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

Pursuant to the Government’s Decree No. 52/1999/ND-CP of July 8, 1999 promulgating the Investment and Construction Management Regulation and Decree No. 12/2000/ND-CP of May 5, 2000 amending and supplementing a number of articles of the Investment and Construction Management Regulation;

At the proposals of the Ministry of Construction in its Report No. 752/BXD-VLXD of May 23, 2002 to the Prime Minister; and of the Ministry of Planning and Investment in its Official Dispatch No. 6493-BKH/CN of October 11, 2002;

Proceeding from the conclusions of the meeting of the concerned ministries and branches held at the Government Office on September 16, 2002,

DECIDES:

Article 1.-To approve the adjusted planning on development of Vietnams cement industry till 2010 and its orientations till 2020, with the following principal contents:

1. Development objectives:

The development objectives of the cement industry till 2010 and its orientations till 2020 are: To fully meet the domestic cement consumption demand (in terms of quantity, quality and categories), spare a part of the total output for export, to quickly develop Vietnams cement industry into a strong industry, equipped with modern production technologies and capable of turning out products which can compete with foreign products of the same categories, thus contributing to the successful realization of the cause of national industrialization and modernization.

2. Development viewpoint:

- Regarding investment:

The development of the cement industry must ensure the economic efficiency and higher and higher competitiveness of products under the regional and international economic integration conditions; the rational use of natural resources, protection of ecological environment, cultural-historical monuments and landscapes, maintenance of security and national defense. Investment shall only be made in the construction of cement projects under the approved planning and with advanced technologies, low investment and capable investors. To prioritize the investment in cement projects with an annual output of one million tons or more, and at the same time to tap to the utmost the capacity of the existing cement production establishments in order to meet the cement demands of localities.

- Regarding technology:

To use the worlds advanced highly-automated technologies, so as to raise the quality of products and maximally save raw materials, fuels and power; and at the same time to step up the domestic manufacture and processing of machinery, equipment and components, which are up to the product quality and environmental protection criteria according to the Vietnamese and international standards; to diversify cement products and universalize the production of high-quality PCB 40 cement.

- Regarding size and capacity:

To prioritize the development of large-sized high-capacity investment projects, taking into account the specific conditions of each project so as to select appropriate sizes thereof.

- Regarding investment capital sources:

To mobilize to the utmost domestic capital sources (credit capital, project bonds, own capital, equity capital, capital mobilized through the securities market, etc.) for investment in the cement industry. To diversify the capital-mobilizing modes and investment forms so that all economic sectors can participate in investing in the cement production. New cement projects shall take the form of joint-stock companies, where the State corporations shall hold controlling stakes. The State shall provide capital support for the construction of infrastructure works outside the plant fences for investment projects in difficult geographical areas. Cement investment projects shall be entitled to borrow preferential loans for manufacturing parts of equipment, machinery and accessories, which can be processed or manufactured at home. If joint-venture projects with foreign countries, which are currently engaged in the cement production, wish to expand their investment scale, they must increase the Vietnamese sides legal capital proportion to 40% or higher.

- Regarding the planning layout:

To build cement production establishments on the basis of balancing domestic and regional market demands, raw material sources, infrastructure conditions, investors capabilities to mobilize investment capital, professional levels and capabilities, and other branches supporting capabilities, in order to rationally determine sizes, locations, product categories and project investment duration. To unify the management and direction over the implementation of plans on investment in cement projects, grinding stations and development of the cement industry strictly under the approved planning. To base on local characteristics and project types to select the most appropriate and efficient investment modes and forms.

- Regarding the inter-branch coordination:

To enhance the alignment and coordination among relevant branches and sectors, such as: mechanical engineering, communications and transport, supply of technical supplies, infrastructure construction, etc., with a view to best serving the cement industrys development, and concurrently creating conditions for development of other industries. To mobilize to the utmost capabilities of such sectors as mechanical engineering, metallurgy, information technology, automation, etc., for researching into, designing and manufacturing equipment, technologies and accessories for the cement industry, with a view to quickly raising the localization rate thereof. The Government shall provide State budget support for the procurement of advanced technologies for designing and manufacturing cement-producing machines and equipment to substitute for imported ones. For cement investment projects with a capacity of over one million tons/year and grinding stations with a capacity of 0.5 million tons/year, the mode whereby investors award contracts directly to domestic mechanical engineering corporations which are fully capable of acting as main contractors to design technologies, manufacture and supply equipment in complete sets for the projects, shall be applied. For large cement projects, the use rate of goods and/or equipment processed or manufactured at home must attain at least 60% of the total weight and 30% of the total value thereof.

3. Planning norms:

- Technical norms in the cement production:

Projects on investment in development of the cement industry must strive to attain by 2010 the advanced norms of fuel, raw material, power and material consumption, dust content of exhaust gas, noise intensity, automation rate, percentage of domestically manufactured equipment, labor productivity, diversity of cement categories, product quality, reduction of production cost, and products competitiveness on the regional and world markets.

Some specific norms shall be as follows:

- Thermal energy consumption rate: ’ 730 Kcal/kg of clinker

- Electric power consumption rate: ’95 Kwh/ton of cement

- Dust content in exhaust gas: ’ 50 mg/Nm3.

Demand and plans on mobilization of cement plants output

In the 2002-2005 period:

In the 2006-2010 period and till 2015 and 2020

The lists of investment projects and their construction schedules and the cement industry’s demands (see the enclosed appendices) include:

+ The list of cement investment projects till 2010.

+ The list of investment project on independent grinding stations.

+ Investment capital and some main supplies for the cement production.

+ Number of officials, engineers and technical workers needed for the cement production.

Article 2.-Organization of implementation

1. The Ministry of Construction shall have to:

- Manage and direct the implementation of this adjusted planning; coordinate with the concerned ministries in studying and perfecting mechanisms and policies, and seeking measures to accelerate the tempo of investment in cement projects in order to overcome the cement shortage by 2005 and afterwards. In the course of implementation direction, any matters rising beyond its competence must be reported to the Prime Minister for consideration and decision.

- Base itself on the countrys economic development situation in each period to propose to the Prime Minister contents which need to be adjusted to make the planning suit the practical situation.

- Assume the prime responsibility and coordinate with the Ministry of Industry in working out a program on and directing the domestic manufacture of equipment, machinery and components to substitute for imported ones, and at the same time assume the prime responsibility and coordinate with the Ministry of Planning and Investment and the Ministry of Finance in studying policies to support domestic units to use, and take part in the manufacture of, equipment, accessories, materials and raw materials for Vietnam’s cement industry.

2.The Ministry of Natural Resources and Environment shall coordinate with the Ministry of Construction in planning, surveying, exploring and measuring reserves of raw materials for cement production in a complete and accurate manner, in timely service of the elaboration of long-term and short-term development plans of the cement industry.

3.The Ministry of Finance, the Ministry of Planning and Investment and the State Bank of Vietnam shall jointly study support policies and seek forms of mobilizing investment capital sources for the cement industry’s projects.

4.The Ministry of Communications and Transport shall assume the prime responsibility and coordinate with the Ministry of Construction in working out plans for communications and transport development in a synchronous manner to serve the cement industry, such as: specialized transport means and non-specialized transport means, loading-unloading equipment, the system of river ports and seaports, the system of railroads and land roads, the planning on construction locations of the system of cement - clinker silos and storage, special-use conveyor belts at ports.

5.The Ministry of Education and Training shall assume the prime responsibility and coordinate with the Ministry of Construction and the Ministry of Labor, War Invalids and Social Affairs in working out plans on and directing the organization of postgraduate training of officials, training of engineers and skilled workers to meet the cement industrys development requirements in three forms of new-recruit training, advanced level training and re-training.

6.The Ministry of Science, Technology and Environment and the Ministry of Construction shall devise plans to step up scientific, technical and technological activities in the cement industry along the direction of absorbing and applying the worlds technological and technical advances, raising the consultation capability in the domains of project management and execution, technology research, development and transfer, and market expansion.

7.Vietnam Cement Corporation shall be built into a strong economic conglomerate, which is equipped with modern production technologies, turns out high-quality products, exports a portion of its cement products and plays the key role in supplying cement and stabilizing the domestic cement market.

Article 3.-The Ministry of Construction shall base itself on the objectives, viewpoint and targets of this adjusted planning to elaborate five-year and annual plans on the industrys development investment suitable to the whole countrys demands and economic capability.

Article 4.-This Decision takes effect 15 days after its signing.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the Peoples Committees of the provinces and centrally-run cities, Vietnam Cement Corporation, the concerned corporations and companies shall have to implement this Decision.

APPENDIX 1

LIST OF CEMENT INVESTMENT PROJECTS TILL 2010 AND ORIENTATIONS TILL 2020
(Promulgated together with the Prime Ministers Decision No. 164/2002/QD-TTg of November 18, 2002)

Appendix 2

LIST OF INVESTMENT PROJECTS ON INDEPENDENT CEMENT GRINDING STATIONS

(Promulgated together with the Prime Minister’s Decision No. 164/2002/QD-TTg of November 18, 2002)

APPENDIX 3

DEMANDS FOR INVESTMENT CAPITAL AND SOME MAJOR SUPPLIES
FOR CEMENT PRODUCTION
(Promulgated together with the Prime Ministers Decision No. 164/2002/QD-TTg of November 18, 2002)

APPENDIX 4

DEMAND FOR TRAINED OFFICIALS, ENGINEERS AND TECHNICAL WORKERS FOR THE CEMENT PRODUCTION
(Promulgated together with the Prime Ministers Decision No. 164/2002/QD-TTg of November 18, 2002)

Unit: Person