Decision No. 1469/QD-TTg development of Vietnam’s construction material industry through 2020 2030

• Official number: 1469/QD-TTg
• Legislation Type: Decision
• Organization: The Prime Minister of Government
• Signer: Hoang Trung Hai
• Issued Date: 22/08/2014

THE PRIME MINISTER -------	THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness ----------------
No. 1469/QD-TTg	Hanoi, August 22, 2014

DECISION

APPROVING THE MASTER PLAN ON DEVELOPMENT OF VIETNAM’S CONSTRUCTION MATERIAL INDUSTRY THROUGH 2020, WITH A VISION TOWARD 20301

THE PRIME MINISTER

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

Pursuant to November 17, 2010 Law No. 60/2010/QH12 on Minerals; Pursuant to the Government’s Decree No. 15/2012/ND-CP of March 9, 2012, detailing the implementation of a number of articles of the Law on Minerals;

Pursuant to the Government’s Decree No. 124/2007/ND-CP of July 31, 2007 on management of construction materials;

At the proposal of the Ministry of Construction,

DECIDES:

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1. Development viewpoints:

a/ To develop the production of construction materials in a stable and sustainable manner based on economical and efficient use of natural resources and environmental protection, meeting domestic consumption and export demands;

b/ To invest in developing centralized and large-scale specialized material production and processing establishments; to make intensive investment in order to replace obsolete technologies with modern, energy-and material-efficient and environment-friendly ones with a view to raising productivity and product quality;

c/ To study and develop new materials to satisfy the market’s and the economy’s diverse consumption demands; to gradually absorb the world’s science and technology for construction material production, raise the domestic research level, and narrow the technology gap with developed countries in the world;

d/ To study the use of wastes as materials and fuels for construction material production;

dd/ To encourage the involvement of all economic sectors in investing in and producing construction materials; to develop manufacturing engineering serving the construction material industry.

2. Development objectives:

a/ To develop construction material products to fully meet domestic consumption and export demands;

b/ To identify each period’s demands for each type of construction material to serve as a basis for the elaboration of the master plan on development of key construction material products and local master plans on development of construction materials;

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d/ By 2020, the construction material industry will be furnished with state-of-the-art production technologies that can turn out high-quality products, consume less energy and materials and conform to environmental standards.

3. The master plan on development of the construction material industry through 2020:

a/ Forecast demands for a number of construction materials

- Forecast domestic demand:

No.

Products

Unit of calculation

Domestic demand

2015

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1

Cement

million tons

56

93

2

Walling and flooring tiles

million m^2

320

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3

Sanitary porcelain

Million products

12.69

20.68

4

Construction glass

million m^2

80

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5

Building materials

billion pieces

26

30

6

Roofing materials (fiber- reinforced concrete)

million m^2

96.3

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7

Construction stone

million m^3

125

181

8

Construction sand

million m^3

92

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9

Lime

million tons

3.9

5.7

- Forecast export of construction material products

Based on the production capacity and quality of home-made material products and the survey of the consumption of construction material products in the countries in the region and the world, the export ratio of a number of advantageous products will be as follows: cement, around 20-30% of the total output; walling and flooring tiles, around 25-30%; flat glass, around 20-30%; sanitary porcelain, around 30-40%; and lime, around 30-50%.

b/ Cement

- The total design capacity:

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+ The total design capacity of cement plants by 2020 will be around 120-130 million tons/year;

- The plan targets:

+ Capacity: The design capacity of one production line will be at least 2,500 tons of clinker/day.

+ Advanced, highly automated and material-, energy- and fuel-efficient technologies. To invest in kiln heat-to-power systems and use alternative fuels, etc.

+ Products: To raise cement products’ quality, diversify types of cement to meet special construction demands such as high-strength cement, cement for ocean works, cement for petroleum wells, penetration resistant cement and other types of cement.

+ Consumption level and environmental norms: Thermal energy ≤ 730 kcal/kg of clinker; electricity ≤ 90 kWh/ton of cement; concentration of dust emission ≤ 30 mg/Nm3.

- Investment orientations:

+ Investment orientations for cement industry’s development in each period must suit the master plan on development of Vietnam’s cement industry and the master plan on exploration, exploitation and use of minerals for cement production;

+ The maximum design capacity of cement production for each economic region is specified in the Appendix.

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- The total design capacity:

+ The total design capacity of tiling material plants by 2015 will be around 450 million m^2/year;

+ The total design capacity of tiling material plants by 2020 will be around 570 million m^2/year;

- The plan targets:

+ Capacity:

. For ceramic tiles: The design capacity of one production line will be at least 6 million m^2/year;

. For natural walling and flooring stones: The design capacity of one stone block exploitation establishment will be at least 3,000 m3/year and that of one walling and flooring stone production establishment will be at least 20,000 m2/year;

+ Consumption level:

. Thermal energy: Ceramic tiles, ≤ 1,600 kcal/kg of product; granite tiles, ≤ 2,000 kcal/kg of product; and cotto tiles, ≤ 1,800 kcal/kg of products.

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+ Production technology and equipment:

. For ceramic tiles: To be capable of manufacturing various types of large-sized products in conformity with standards and technical regulations on environment;

. For walling and flooring natural stones: To apply modern exploitation technologies to minimize mine blasting. To invest in modern processing equipment capable of sawing and cutting large-sized slabs, increasing the product recovery level, and having an automatic grinding and polishing system;

- Investment orientations:

. From now through 2015: To make no investment in expanding existing ceramic tile production establishments and building new ones;

. In the 2016-2020 period: To further invest in expanding existing ceramic tile production establishments and building new ones to reach the nation’s total design capacity of 570 million m^2/year. To specialize the production of materials for ceramic tiles;

+ For walling and flooring natural stones:

. From now through 2015, to further invest in expanding existing walling and flooring stone processing establishments and building new ones to reach the nation’s total design capacity of 15 million m^2/year. In the 2016-2020 period, to further invest in expanding existing walling and flooring stone processing establishments and building new ones to reach the total design capacity of 30 million m^2/year (accounting for around 5% of the tiling material design capacity) with the combination of investment in new exploitation establishments with intensive processing establishments;

. To encourage the affiliation between walling and flooring stone production establishments and calcium carbonate powder production establishments in order to make the best use of redundant materials and reduce wastes and environmental pollution.

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d/ Sanitary porcelain

- The total design capacity:

. The total design capacity of sanitary porcelain plants by 2015 will be around 15 million products/year.

. The total design capacity of sanitary porcelain plants by 2020 will be around 21 million products/year.

- The plan targets:

+ Capacity: The capacity of one production line will be at least 0.3 million products/year.

+ Common consumption level will be as follows:

. Thermal energy: ≤ 3,000 kcal/kg of product;

. Electricity: ≤ 0.55 kWh/kg of product;

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- Investment orientations:

. From now through 2015: To make no investment in expanding existing sanitary porcelain production establishments and building new ones;

. In the 2016-2020 period: To further invest in sanitary porcelain production establishments to reach the country’s total design capacity of around 21 million products/year. To specialize the production of materials for sanitary porcelain products;

+ Specific investment projects are under the master plan on reorganization and orientations for development of Vietnam’s construction ceramics and porcelain and walling and flooring stone production industry. The maximum design capacity of sanitary porcelain in each economic region is specified in the Appendix.

dd/ Flat glass

- The total design capacity:

The total design capacity of existing flat glass plants will be around 180 million m^2/year;

- The plan targets:

Consumption level: Thermal energy: ≤ 2,000 kcal/kg of product; electricity: ≤ 100 kWh/ton of product.

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+ From now through 2020: To make no investment in expanding existing ordinary construction glass plants and building new ones. Special- type glass production projects may only be invested after obtaining the Prime Minister’s approval;

+ To encourage plants to make research and intensive investment, renew technologies in order to reduce material and fuel consumption in production; to improve the quality of and diversify products, reduce environmental pollution and invest in post-glass processing technology.

e/ Building materials (baked clay bricks and non-baked building materials)

- The total design capacity:

+ The total design capacity of building material plants by 2015 will reach around 26 billion pieces;

+ The total design capacity of building material plants by 2020 will reach around 30 billion pieces;

- The plan targets:

+ Capacity:

. The design capacity of one tunnel kiln-baked clay brick production line will be at least 20 million pieces/year. For mountainous provinces, to invest in tunnel kiln-baked clay brick production lines with an annual capacity of 10 million pieces;

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. The design capacity of one autoclaved aerated concrete production line will be at least 100,000 m3/year.

+ Consumption level:

. For baked clay bricks: Thermal energy ≤ 360 kcal/kg; electricity ≤ 0.022 kWh/kg;

. For autoclaved aerated concrete: Thermal energy ≤ 1,624 kcal/m3 of product; electricity ≤ 30 kWh/m3 of product;

+ Production technology:

. Baked clay bricks: To make no investment in manual brick kilns, vertical shaft brick kilns, Hoffmann kilns using fossil fuels (coal, oil and gas). To encourage investment in technologies for producing large-sized baked clay bricks with high porosity to save natural resources and reduce environmental pollution;

. Non-baked building materials: To invest in uniform highly mechanized and automated and energy-efficient production lines;

- Investment orientations:

+ Baked clay bricks:

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. By 2015: The country’s total design capacity of baked clay bricks will account for up to 80% of the total building material output or around 21 billion pieces;

. By 2020: the country’s baked clay brick design capacity will account for up to 60% of the total building material output or around 18 billion pieces;

. For tunnel kiln-baked clay brick production establishments, to further invest in completing and renewing technologies to reduce material and fuel consumption, and save natural resources; for the southern provinces, to encourage investment in tunnel kiln technology fuelled by rice husk and sawdust;

. Provinces and centrally run cities shall elaborate and promulgate roadmaps to terminate the operation of kilns with obsolete technologies as follows:

Delta provinces and centrally run cities; towns, townships and areas near residential areas and rice and cash crop cultivation zones in other provinces shall terminate the operation of manual and low-tech brick kilns before 2016 and vertical shaft kilns and Hoffmann kilns using fossil fuels before 2018. Depending on practical conditions, to encourage localities to terminate the operation of Hoffmann kilns not using fossil fuels;

Production establishments in communes of mountainous districts shall elaborate roadmaps to terminate the operation of manual and low-tech kilns by 2017 at the latest and vertical shaft kilns by 2020 at the latest;

. To develop baked clay bricks of high economic value for domestic consumption and export. To study and develop the production of baked bricks from hill soil and industrial wastes;

+ Non-baked building materials:

. From now through 2015: To further invest in expanding existing and building new non-baked building material production establishments to reach the country’s total design capacity of around 6 billion pieces;

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. The maximum design capacity of building materials in each economic region is defined in the Appendix.

g/ Roofing materials

- Fiber cement roofing panels:

+ The total design capacity:

. At present, the total design capacity of existing fiber cement roofing panel plants is around 100 million m^2/year;

. The total design capacity by 2020 will reach around 106 million m^2/year.

+ The plan targets:

. To prohibit the use of amphibole asbestos fibers (brown and green asbestos) in roofing panel production;

. Production technologies: By the end of 2015, fiber cement panel production lines will be uniformly equipped with automated equipment for tearing packages, grinding and quantifying fibers;

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+ Investment orientations:

. From now through 2020: To invest in expanding existing fiber cement roofing panel production lines and building new ones to reach the country’s total design capacity of around 106 million m^2/year. To make no investment in expanding existing establishments using chrysotile asbestos (white asbestos) or building new ones; to gradually replace chrysotile asbestos fiber with other fibers;

. The maximum total design capacity of fiber cement roofing panels in each economic region is specified in the Appendix.

- Baked clay roofing tiles, cement-sand roofing tiles and other roofing panels

+ To develop the production of traditional baked roofing tiles in localities where raw materials are available. To study the production of high- quality enameled roofing tiles and decorative roofing tiles to serve domestic construction and export;

+ To develop cement-sand non-baked roofing tiles and other roofing panels to meet diversified demands of urban, rural and flood-prone areas for roofing materials.

h/ Lime

- The total design capacity:

. The total design capacity of lime plants by 2015 will reach around 5-6 million tons/year;

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- The plan targets:

+ Capacity: The capacity of lime production lines will be at least 200 tons of lime per day.

+ Consumption level:

. Thermal energy: ≤ 900 kcal/kg;

. Electricity: ≤ 30 kWh/ton.

+ Environmental target: Dust emission concentration: ≤ 30mg/Nm^3;

+ Technology: To use advanced, highly automated and mechanized technologies;

+ Product quality: To conform to technical standards and requirements for corresponding use purposes.

- Investment orientations:

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+ New investment projects must be associated with plans on material supply zones, to ensure materials for stable production;

+ Specific investment projects under the master plan on development of Vietnam’s lime industry to 2020. The maximum design capacity in each economic region is defined in the Appendix.

i/ Construction stone:

- The total design capacity:

+ The total design capacity of construction stone production establishments by 2015 will be around 120-130 million m^3/year;

+ The total design capacity of construction stone production establishments by 2020 will be around 170-190 million m^3/year;

- The plan targets:

+ Capacity: Construction stone production establishments will have an annual capacity of at least 100,000 m^3;

+ Technology: Construction stone production lines must be advanced and synchronous, consisting of processing, screening and transporting equipment and environmental treatment facilities. To combine aggregate and ground sand processing technologies;

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- Investment orientations:

+ The grant of construction stone exploitation licenses must be based on provincial-level master plans on development of building materials;

+ To further develop the production of construction stone in localities with stone potential, meeting market demands;

+ Localities with a number of small-sized stone exploitation establishments shall reorganize production to form large-sized establishments as required. To prioritize investment in large-capacity stone processing and exploitation establishments.

+ To totally eradicate unlicensed small-sized and scattered exploitation to avoid loss of natural resources and environmental impacts;

+ To encourage stone exploitation and production establishments to jointly invest in or cooperate with ground sand and non-baked clay brick production establishments to make the best use of materials, reduce environmental pollution and increase non-baked building material sources in localities.

+ The total design capacity of construction stone in each economic region is specified in the Appendix.

k/ Construction sand

- The total design capacity:

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+ The total design capacity of construction sand exploitation and processing establishments by 2020 will reach around 130-150 million m^3/year;

- The plan targets:

+ Capacity:

. For natural sand exploitation and processing: The total design capacity of one exploitation establishment will be at least 10,000 m^3/year;

. For ground sand exploitation and processing: The total design capacity of one exploitation and processing establishment will be at least 50,000 m^3/year;

+ Technology:

. Sand exploitation and processing need a treatment system to reduce the content of mud, dust and clay; waste generated in the course of treatment must be collected, stored in conformity with technical standards or reused; there must be dumpsites meeting technical requirements;

. For ground sand exploitation and processing: Ground sand production lines, including processing, screening and transporting devices and environmental treatment equipment, must be state-of-the-art and synchronous ones.

+ Product quality must satisfy prescribed technical requirements.

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. Natural sand exploitation and processing establishments must ensure the exploitation in planned locations permitted by management agencies without affecting eco-environment and water flows and triggering riverbank erosions; treat wastewater from sand washing before being discharged into the environment; dust dispersion concentration at dumpsites and during transportation must meet standards and environmental regulations;

. Ground sand exploitation and processing establishments must satisfy environmental requirements in production areas and mitigate environmental pollution in adjacent areas up to standards and technical regulations on environment and health. To ensure the efficient use of natural resources and perform mine reclamation if requested.

- Investment orientations:

+ To encourage projects to exploit fine-grain and saline sand to be washed into standard sand for construction;

+ To encourage investment in ground sand production establishments to reach the total design capacity of around 10 million m^3/year by 2020;

+ To reorganize small-sized and scattered sand exploitation in all localities, develop centralized exploitation and processing establishments as planned;

+ To totally eradicate small-sized, scattered and unlicensed exploitation to avoid loss of natural resources and environmental impacts;

+ The license of construction sand exploitation and production must be based on provincial-level master plans on development of building materials;

+ The maximum design capacity of construction sand in each economic region is specified in the Appendix.

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Development orientations:

- Commodity concrete: To continue developing commodity concrete mixing stations to replace concrete production by simple and scattered methods failing to meet quality and causing environmental pollution at construction sites;

- Concrete structures: To speed up the development of structure and prefabricated concrete production plants to meet market requirements and facilitate the industrialization of the construction sector;

- To diversify concrete and develop high-strength and special concrete to meet market requirements;

- To develop concrete additives for improving construction conditions and increasing concrete properties.

m/ Plaster panels

Development orientations:

- To increase investment in recovering and treating wastes from kilns fired by coal and oil containing sulphur at thermal power and chemical plants so as to recover plaster with ensured commodity quality to be used as production materials;

- To produce plaster products as ceiling and walling panels and interior materials. To develop the production of new plaster materials with such properties as fire-, humidity-, collision-, sound- and heat-proof;

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n/ Material processing

To build and develop material processing industry for building material production. In the immediate future, to facilitate and encourage the construction of a number of material processing establishments for ceramic tile, porcelain and glass production.

4. Orientations for development of construction material industry through 2030

In the 2020-2030 period, key construction material products will be invested and developed under the following principle orientations:

- Cement: To invest in cement production under the Prime Minister- approved master plan on development of Vietnam’s cement industry. To study the use of wastes as materials and fuels in cement production; to study the production of cement with special properties, energy-efficient and environment-friendly cement; to reduce energy and fuel consumption and labor for cement production.

- Walling and flooring tiles and sanitary porcelain: To produce large- sized ceramic walling and flooring tiles of various types and colors and abrasion-resistant products of modern decorative patterns and colors, meeting the increasing demand of domestic consumers and for export. To develop the production of walling and flooring materials with special properties to prevent dirt accumulation and be capable of self-cleaning and moss-free and fast-colored. To modernize natural stone exploitation establishments. To use synchronous and advanced production lines to turn out high-quality natural stone walling and flooring products with high added value to boost exports. To produce combined natural stone-ceramic and ceramic-organic materials and composite materials. To further modernize sanitary porcelain production technology and apply scientific and technological achievements to reduce energy and fuel consumption level, raise product quality and reduce emissions. To expand export outlets and increase the export of products of high added value. To develop large-sized and centralized material processing establishments.

- Glass: To develop construction glass production capacity with advanced technology and high quality products to satisfy market demands. To develop high-quality glass production projects such as glass for solar energy panel production, technical glass, low heat radiation glass, sound- and heat-proof glass and post-glass products. To produce glass-wool fibers for production of thermal insulation, sound- and heat-proof materials and for other purposes. To use renewable energy for glass production, make the best use of waste heat from glass kilns to generate electricity or for industrial production or daily life.

- Building and roofing materials: To increase the production and use of non-baked building materials, light materials, energy-efficient materials and recycled materials. To increase the size and porosity of baked clay tiles and produce high value baked clay tiles. To renew material and fuel-efficient processing, molding and baking technologies up to the world’s advanced consumption norms. To develop the production of light, durable and heat-, noise-, moss- and erosion- resistant roofing materials and smart roofing materials that bring in natural light and accumulate solar energy.

To elaborate roadmaps to gradually reduce and eventually terminate the use of chrysotile asbestos in roofing material production to satisfy hygienic safety and environmental requirements.

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- Lime: To invest in industrial-scale lime production and diversify products for domestic industry, agriculture and forestry and export.

- Concrete and other construction materials: To strive not to use mixed concrete at construction sites in order to ensure concrete quality and urban environmental sanitation. To encourage the development of new concrete, high-strength concrete, prestressed concrete, self-compact concrete, concrete with special properties and new types of concrete. To increase the use of wastes in the cement production. To develop additives to improve their usability in construction and other properties. To develop the production of other construction materials to meet social demands.

Article 2.^.Organization of implementation

1. The Ministry of Construction shall:

- Publicize the Prime Minister-approved master plans on development of Vietnam’s construction materials through 2020, with a vision toward 2030, for localities and sectors.

- Elaborate standards and technical regulations on construction materials; implement scientific and technological themes, projects and programs in line with the master plans.

- Research construction materials for sea and island projects.

- Guide localities in developing the production of construction materials in line with the plan’s orientations; supervise and inspect the implementation of the contents of the master plans to make regular or extraordinary reports to the Prime Minister; and strictly handle violations.

- Continue formulating master plans on construction material products under competence and guide localities to elaborate new or modify local construction material mater plans to suit this master plan.

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- Assume the prime responsibility for, and coordinate with relevant agencies in, granting mineral operation licenses under approved master plans and in accordance with law.

- Assume the prime responsibility for, and coordinate with the Ministry of Construction and relevant agencies in, promulgating and publicizing standards and technical regulations on environment in construction material production; inspect and supervise natural resources and mineral exploitation used as construction materials according to its competence.

3. The Ministry of Industry and Trade shall:

- Assume the prime responsibility for, and collaborate with the Ministry of Construction and relevant ministries and sectors in, studying, designing and manufacturing equipment, machinery and spare parts to gradually raise the localization rate of construction material production lines.

- Promulgate, and submit to competent authorities for promulgation, mechanisms and policies to support trade promotion for effectively stepping up the export of constructions and intensify the fight against illegal imports.

4. The Ministry of Transport shall:

- Assume the prime responsibility for, and coordinate with the Ministry of Construction in, determining construction material transport demands in areas with construction material production plants, especially cement plants, to formulate and modify the master plan on national transport infrastructure system.

- Invest in developing the north-south shipping capacity for transporting clinker and cement and exporting construction materials.

- Elaborate plans to invest in upgrading and developing transport infrastructure linking with the seaport system.

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- Coordinate with the Ministry of Construction in formulating human resource training plans to meet development requirements of the construction material production industry up to 2020 according to the master plan’s orientations and specialized development plans.

- Assume the prime responsibility for, and coordinate with relevant ministries and sectors in, formulating and promulgating training programs and open training codes to standardize profession for human resources of the construction material production industry.

- Assume the prime responsibility for, and coordinate with relevant ministries and sectors in, promoting international cooperation, diversifying forms of training in training and retraining human resources for the construction material production industry. Focus on production of major construction materials and new construction materials.

6. The Ministry of Science and Technology shall:

- Organize scientific and technical activities in the construction material field, introduce and disseminate the world’s advanced technologies;

- Collaborate with the Ministry of Construction and the Ministry of Natural Resources and Environment in, studying and proposing possibilities to develop high-grade, super-durable, extra-light, energy- and material- savings and environmentally friendly materials.

- Organize the appraisal of standards and technical regulations on construction materials and publicize national standards as stipulated.

7. The Ministry of Planning and Investment shall:

- Assume the prime responsibility for, and coordinate with relevant ministries and sectors in, studying policies to support and facilitate the development of the construction material industry according to the master plan’s orientations.

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8. Provincial-level People’s Committees shall:

- Organize the elaboration of new or modification of existing local plans on construction material development to suit this master plan and their implementation and annually report it to the Ministry of Construction.

- To apply management measures and guide the investment in developing construction materials in localities to suit the approved master plans; ensure efficient use of natural resources and environmental protection; especially apply methods to enhance management of sand and gravel extraction from the riverbed. Projects to produce cement, walling and flooring materials, sanitary porcelain, glass, fiber cement roofing materials, lime and new construction materials must obtain the Ministry of Construction’s written approval before being licensed.

Article 3. This Decision takes effect on the date of its signing and replaces the Prime Minister’s Decision No. 121/2008/QD-TTg of August 29,

2008, approving the master plan on development of Vietnam’s construction materials up to 2020.

Article 4. Ministers, heads of ministerial-level agencies and government-attached agencies, chairpersons of provincial-level People’s Committees shall implement this Decision.-

ON BEHALF OF THE PRIME MINISTER
DEPUTY PRIME MINISTER




Hoang Trung Hai

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