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THE
PRIME MINISTER OF GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
134/2001/QD-TTg
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Hanoi,
September 10, 2001
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DECISION
APPROVING THE OVERALL PLANNING ON THE DEVELOPMENT OF THE
STEEL INDUSTRY TILL 2010
THE PRIME MINISTER
Pursuant to the September 30, 1992 Law on
Organization of the Government;
Pursuant to the Government’s Decree No. 52/1999/ND-CP of July 8, 1999 issuing the
Regulation on investment and construction management and Decree No.
12/2000/ND-CP of May 5, 2000 amending and supplementing a number of articles of
the Regulation on investment and construction management,
At the proposal of the Ministry of Industry (Official Dispatches No.
4694/CV-KHDT of December 11, 2000 and No. 2196/CV-KHDT of June 1, 2001) and
considering the evaluation report of the State Council for Evaluation of
Investment Projects (Official Dispatch No. 7/TDNN of April 6, 2001),
DECIDES:
Article 1.- To approve
the Overall Planning on the Development of the Steel Industry till 2010, with
the following principal contents:
1. Objectives:
a/ Objectives for the development of the steel
industry till 2010:
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b/ Annual average growth rates over the next 10
years time (in capacity):
- Manufacture of unwrought steel (steel cast):
To increase by 15% annually on average;
- Manufacture of rolled steel: To increase by
10% annually on average.
2. Development orientations:
a/ Regarding the investment structure:
To balance the development between downstream
activities (rolling, laminating, post-rolling processing) and upstream
activities (iron ore extraction, cast manufacture), to step by step strive for
a substantial self-supply of steel cast for rolling and lamination. To combine
the diversification of product categories and specifications so as to meet the
market demand with the selective and rational development of a number of
high-quality steel products for mechanical engineering, shipbuilding and
automobile manufacture, and special-type steel for defense industry. The
development of the steel manufacture and the exploitation and use of domestic
natural resources (first of all iron ores) must ensure rationality and
effectiveness.
b/ Technologically:
To utilize modern technology and automation at
high level, save raw materials, fuel and power, ensure environmental standards
in order to be able to manufacture high-quality steel at low costs, with
increased productivity, and capable of competing with steel manufactured in the
region and world. Selected technologies must be durable and flexible (to be
upgraded and modernized when necessary); to replace obsolete, inefficient and
environment-unfriendly technologies.
c/ Mobilization of various investment capital
sources:
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d/ Regarding the development of raw material
sources:
In the five-year 2001-2005 plan, to concentrate
on research so as to get solid and scientific conclusions on the commercial
deposits, exploitation capacity and use of domestic iron ores, primarily Quy Xa
and Thach Khe iron ore mines. To exploit to the utmost other small iron ore
mines for the manufacture of pig-iron, fully exploit the source of domestic
steel scraps, and at the same time to seek for stable sources for importing
steel scraps for the efficient manufacture of steel cast by electric furnaces.
e/ Regarding markets:
The steel industry shall dominate the domestic
market in terms of categories, quality and specifications as well as prices of
common-type steel, and be able to find export outlets; step by step meet the
needs for steel sheets and plates as well as special-type steel in service of
the mechanical engineering. To strive that by 2010 the domestic steel
manufacture shall satisfy 75%-80% of the domestic steel consumption demand, of
which the Vietnam Steel Corporation (including its proportions in joint
ventures) shall represent over 50% of construction steel and around 70% of
steel plates and sheets.
f/ Regarding the human resource development:
To attach importance to the training and
re-training of the contingents of metallurgical engineers, managerial personnel
and skilled technical workers; to invest in scientific and technological
research in order to meet the development requirements of the steel industry.
g/ Investment projects in the 2001-2010 period:
The investment projects in the 2001-2005 period
shall be incorporated in the 2001-2005 five-year plan (Appendix I). The
investment projects after 2005 are for orientation (Appendix II).
3. The planning’s targets:
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By 2005
By 2010
- Steel cast manufacture
1.5 mil.
tons/year
1.8 - 2.0 mil.
tons/year
- Steel rolling
4.2 mil.
tons/year
6.5 mil.
tons/year
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1.0 mil.
tons/year
1.6 mil.
tons/year
b/ Output targets:
By 2005
By 2010
- Steel cast (unwrought steel)
1.2 - 1.4 mil.
tons/year
1.8 mil.
tons/year
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2.5 -3.0 mil.
tons/year
4.5 - 5.0 mil.
tons/year
- Post-rolling processed products
0.6 mil.
tons/year
1.2 - 1.5 mil.
tons/year
c/ Investment capital needs:
The total investment capital amount for the
development of the steel industry over the next ten years is estimated at about
VND 60,000 billion, of which:
+ The 2001-2005 period: About VND 16,000 billion.
+ The 2006-2010 period: About VND 44,000
billion.
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1. The State shall provide supports from the
budget capital and ODA capital for the formulation of the industry’s
development planning; key projects; develop areas of raw-material iron ore and
flux; invest in infrastructural works in the raw material-exploiting areas, new
large-scale metallurgical factories, environmental treatment projects; invest
in the training and scientific and technological research work of various
institutes and schools in the industry.
2. To permit upstream development projects
(exploiting iron ores, manufacturing steel cast):
a/ To borrow the State’s development investment
credit capital at a preferential interest rate (3%/year) as set out in the
Government’s Resolution No. 05/2001/NQ-CP of May 24, 2001. The capital
borrowing duration is 12 years and the grace period is three years.
b/ To fall into the investment preference field
and enjoy investment preferences under the provisions of the Law on Domestic
Investment Promotion.
3. For projects of important significance to the
national economy, the Government shall consider to provide guarantee for them
to purchase equipment on deferred payment or borrow commercial loans from
suppliers or financial institutions inside and outside the country.
4. To permit State enterprises currently engaged
in manufacturing steel cast to receive back the capital use levy for a five
years time (2001-2005), regarding it as a State budget grant to the enterprises
for upgrading their technical infrastructure and adding to their working
capital.
5. The Government encourages enterprises to
boost the export of their steel products into potential markets, particularly
neighboring and regional countries. The Ministry of Finance shall assume the
prime responsibility and coordinate with the concerned agencies in studying in
2001 and submitting to the Prime Minister a policy to support the export of
construction steel products.
Article 3.- Organization
of implementation
1. The Ministry of Industry shall have to direct
the Vietnam Steel Corporation:
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- To update and adjust in time the planning on
the development of the steel industry till 2010; any amendments or supplements
to make it suitable to the practical situation must be submitted to the Prime
Minister for consideration and decision.
- To organize the information system to assist
enterprises to grasp the demands of the domestic and overseas markets.
2. The Ministries of: Planning and Investment;
Finance; and Industry; the State Bank of Vietnam and the Development Assistance
Fund shall base themselves on their assigned functions and tasks to seek for
domestic and foreign capital sources, including concessional ODA loans and FDI,
arrange capital sources and lend capital according to annual plans to meet the
investment needs of the steel industry.
3. The Ministry of Industry shall assume the
prime responsibility and coordinate with the concerned ministries and branches
in elaborating financial mechanisms and policies, policies to mobilize various
economic sectors to invest in developing the steel industry; perform the
uniform management over product standards and quality; and fight trade frauds.
Article 4.- The
ministries, branches and People’s Committees of the provinces and centrally-run
cities shall implement the planning according to their respective functions and
tasks, paying attention to ensuring the uniformity and consistency between the
planning on the development of the steel industry and the development plannings
of the ministries, branches and localities.
Article 5.- This
Decision takes effect 15 days after the date of issuance.
Article 6.- The ministers,
the heads of the ministerial-level agencies, the heads of the agencies attached
to the Government, the presidents of the People’s Committees of the provinces
and centrally-run cities, the chairman of the Managing Board and director
general of the Development Assistance Fund, the chairman of the Managing Board
and director general of the Vietnam Steel Corporation shall have to implement
this Decision.
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APPENDIX I
LIST OF INVESTMENT PROJECTS IN THE 2001-2005 PERIOD
(Issued together with Decision No. 134/2001/QD-TTg of September 10, 2001 of
the Prime Minister)
Ordinal
number
Titles of
projects and constructions
Investment
forms
Design
capacity (1,000 tons/year)
Products
Tempo and
location
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1
In-depth investment projects in the rolling,
Southern Steel Company, Da Nang Steel Company, and technical renovation of
Thai Nguyen Metallurgy Company
Self- investment
Cast 500 Rolling 700
Long products
2000-2002 at existing establishments of the
Vietnam Steel Corporation
Continuity and new construction
2
Phu My Steel Cold Rolling Plant
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205
Cold-rolling bands
2000-2004 in Ba Ria-Vung Tau
Feasibility study report already completed
3
Phu My Steel Plant
Self- investment
Cast 500 Rolling 300
Steel cast and long products
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Pre-feasibility study report already completed
4
Northern Steel Plant
Self- investment or joint venture
Cast 500 Rolling 300
Steel cast and long products
2002-2005 in Quang Ninh or Hai Phong
Pre-feasibility study report being made
5
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Self- investment or joint venture
1,000
Hot-rolling plates and bands
2003-2007
To be continued in next five years
6
Thai Nguyen Metallurgy Plant, Phase 2
Self- investment
300
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From 2002 in Thai Nguyen
Rolling first, carefully studying the
metallurgy stage
7
Quy Xa and Thach Khe raw material mines and
combined steel factory
Investment preparation
Iron ore for upstream development
2002-2005
Studying and making the feasibility study
report, possibly exploiting Quy Xa mine first
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Non-State steel-rolling projects
Private
About 1,000
Long products
Schemes already completed or being elaborated
APPENDIX II
ORIENTATION ON INVESTMENT PROJECTS IN THE 2006-2010
PERIOD
(Issued together with Decision No. 134/2001/QD-TTg of September 10, 2001 of
the Prime Minister)
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Project titles
Investment form
Design capacity
(1,000 tons/year)
Products
Tempo and
location
Tempo and
location
I
Combined steel plant 4.5 mil. tons/year
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1.1
Step 1: Hot rolling and cold rolling
Self-investment or joint venture
Hot rolling: 1,500; Cold rolling: 600
Cold- and hot-rolling bands
2007-2010 in Central Vietnam
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1.2
Step 2: Blast-furnace, steel furnace,
continuous molding for the first time
Self- investment
2,500
Flat cast
2008-2012 in Central Vietnam
To be continued after 2010
2
Thach Khe mine
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10,000
Iron ore
2007-2011 in Ha Tinh
To be continued after 2010
3
Special-type steel plant
Self- investment
100
Special steel for mechanical engineering
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Feasibility study report already made
4
VinaKyoei steel cast plant
Joint venture
500
Steel cast
2006-2008 in Ba Ria- Vung Tau
Feasibility study report already made
5
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Joint venture or self- investment
1,400
Spongy iron for use as raw materials for steel
metallurgy
Ba Ria- Vung Tau
To continue studying investment capability
when conditions permit