THE
PRIME MINISTER OF GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.145/2007/QD-TTg
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Hanoi,
September 04, 2007
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DECISION
APPROVING THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM’S
STEEL INDUSTRY IN THE 2007-2015 PERIOD, WITH THE 2025 VISION TAKEN INTO
CONSIDERATION
THE PRIME MINISTER
Pursuant to the Law on Organization of the
Government dated December 25, 2001;
At the proposal of the Ministry of Industry (now the Ministry of Industry and
Trade) and the Minister of Planning and Investment, and based on the opinions
of ministries, branches and localities,
DECIDES:
Article 1.
To approve the master plan on the development of Vietnam’s steel industry in
the 2007-2015 period, with the 2025 vision taken into consideration, with the
following principal contents:
1. Development viewpoints
a) To develop Vietnam's steel industry in
compliance with the national master plan on socio-economic and industrial
development, local socio-economic development plannings and Vietnam's
integration roadmap.
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c) To build Vietnam’s steel industry with
advanced and rational technologies, using domestic resources in a thrifty and
efficient manner, ensuring harmony with eco-environmental protection in
localities where the industry is developed.
d) To attach importance to, and encourage
domestic economic sectors and branches to cooperate with foreign parties to
invest in, the construction of a number of mining-metallurgy complexes, combine
mills and large factories, which manufacture flat steel products.
2. Development objectives
The overall development objectives of Vietnam’s
steel industry are to satisfy to the utmost the economy's demands for steel
products and to boost export, specifically:
a) Manufacture of pig iron
To adequately supply cast pig iron for domestic
mechanical manufacture and export, striving to supply a majority of raw
materials for domestic ingot steel mills. By 2010, 1.5-1.9 million tons of pig
iron; by 2015, 5.0-5.8 million tons of pig iron; by 2020, 8-9 million tons of
pig iron and reverted products; and by 2025, 10-12 million tons of pig iron and
reverted products will be manufactured.
b) Manufacture of ingot steel (raw steel)
By 2010, 3.5-4.5 million tons; by 2015, 6-8
million tons; by 2020, 9-11 million tons; and by 2025, 12-15 million
tons of ingot steel will be manufactured.
c) Manufacture of finished steel products
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d) Export of pig iron and steel of all kinds
By 2010, the export volume will reach 0.5-0.7
million tons; by 2015, 0.7-0.8 million tons; by 2020, 09-1.0 million tons; and
by 2025, around 1.2-1.5 million tons.
The above export targets may be adjusted to suit
the practical situation in order to stabilize the domestic market.
3. The master plan's contents
a) Demands for steel products
Vietnam's demands for finished steel products
are estimated at around 10-11 million tons by 2010; 15-16 million
tons by 2015; 20-21 million tons by 2020; and 24-25 million tons by 2025.
b) Planning on major investment projects
On the basis of the distribution of iron ores,
their geographical locations and infrastructure as well as different steel
demands, investment will be made in the following major projects:
- 2007-2015 period:
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+ Dung Quat (Quang Ngai) Steel Complex with a
capacity of 5 million tons/year, divided into 2 phases, using domestic and
imported iron ores. The investment form will be 100% foreign capital. The
planned time of putting the complex into operation in the second phase is
during 2011-2015;
+ A project on a mil manufacturing high quality
hot-rolled and cold-rolled steel coils and zinc-plated steel with a capacity of
3 million tons/year, the capacity in the first phase will be 0.7 million
tons/year. The investment form will be 100% foreign capital of Posco Group (the
Republic of Korea);
+ A project on a mill manufacturing high quality
hot-rolled steel coils and sheets with a capacity of 2 million tons/year. The
investment form will be joint venture between ESSA Group (India) and domestic
enterprises. The mill will be built during 2007-2009;
+ A project to expand the production capacity of
Thai Nguyen Pig Iron and Steel Company, phase 2:
To invest synchronously in mining and metallurgy
stages (blast furnace - basic oxygen furnace), with a capacity of 0.5 million
tons of square ingot/year. The project is planned to be put into production
during 2009-2010;
+ Lao Cai Steel Complex, using Quy Xa mine’s
iron ores: refining pig iron with blast-furnace and refining steel with
electric-arc-furnace with a capacity of 05 million tons of square ingot/year.
The Complex is planned to be put into operation during 2016-2025, if market is
available, investment will be made in an additional modern steel-rolling chain
with a capacity of 0.5 million tons/year;
+ To develop medium- and small-sized projects on
the blast-furnace manufacture of pig iron in Lao Cai, Tuyen Quang, Cao Bang,
Bac Kan and Yen Bai provinces with a total capacity of around 1 million tons of
ingot steel/year; Cuu Long Steel Company’s flat ingot steel mill, and Vietnam
Steel Company's and Southern Steel Company's square ingot steel mills, etc.;
+ To complete the construction of, and put into
operation, a number of smaller-sized projects to make flat-steel products,
including 2 hot-rolled steel sheet mills of VINASHIN and Cuu Long Steel
Company; cold-rolled steel coil mills of LILAMA, Phu My Steel Sheets Company -
phase 2, Hoa Sen Company, Formora Steel, Sun Steel, and Bach Dang Company, etc.
- 2016-2025 period:
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Investment periods: for option 1: The project is
planned during 2016-2020 (located in Ba Ria –Vung Tau to supply flat ingot
steel for hot-rolling mills in the southern key economic zone); for option 2:
The project is planned during 2016-2025 (located in Binh Thuan to make use of
natural gases exploited from Phu Khanh gas reservoir and the northern area of
Cuu Long gas reservoir).
- Investment form: 100% foreign capital or joint
venture between domestic and foreign parties.
+ To study investment in projects to make and
roll steel sheets, large shaped steel products and non-welded steel tubes with
advanced technologies and a capacity of around 1 million tons of finished steel
products/year in service of shipbuilding, oil and gas, and mechanical
engineering for the manufacture of extra-long and extra-heavy equipment.
Investment form: 100% of foreign capital or joint venture between domestic and
foreign parties.
+ To study investment in a special steel mill
with a capacity of around 0.3-0.5 million tons/year in service of machinery
manufacture and defense industry.
* The list of investment projects of Vietnam's
steel industry, during 2007-2025 is in the enclosed Appendix.
c) Major solutions and policies
- Investment capital solutions
Vietnam's steel industry's demand for
development investment capital during 2007-2025 is estimated at around US$
10-12 billion, including around US$ 8 billion during 2007-2015. To meet this
capital demand, the following solutions will be implemented:
+ To diversify investment capital for the steel
industry from own capital, preferential loan (for ingot steel manufacture
projects), domestic and foreign commercial loans, capital raised from the
issuance of government bonds, corporate bonds and project bonds, foreign
investment capital;
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+ To step up equitization of state enterprises
in the steel industry in order to diversify forms of capital ownership and
mobilize capital from shareholders. To encourage equitized steel enterprises to
be listed in the securities market and issue share certificates for attracting
indirect investment capital.
- Investment cooperation solutions
Investment cooperation with foreign countries
will focus on the manufacture of pig iron, ingot steel and flat-steel products,
especially for high-capacity projects (of over 1 million tons/year).
- Solutions regarding supply of major sources of
raw materials and fuel
In the short term, to export iron ores to China
in exchange for fat coal and coke. In the long term, to formulate a national
strategy on the import and export of mineral raw-materials in order to supply
fat coal and coke for the sustainable development of the steel industry.
- Import, export and market development
solutions
+ To protect the domestic market through lawful
technical barriers and quality and environmental standards in order to prevent
the penetration of poor-quality and unsafe products into the Vietnamese market;
+ To further study and improve regulations and
laws in order to develop the market for steel products; to create a close
cooperation and a mechanism for profit sharing and joint responsibility between
steel manufacturers and traders;
+ To improve policies and laws and enhance
capacity to enforce competition law and combat anti-monopoly, market manipulation
and dumping.
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To improve material and technical foundations
and the quality of teachers for technical workers' training schools so that these
schools can train laborers to meet the metallurgy industry's demands. To attach
importance to overseas training and invite foreign experts to provide at-work
training.
- Scientific and technological development
solutions
To enhance international cooperation,
consolidate scientific-technological relations between production units and
R&D agencies and domestic and foreign universities in order to step up the
transfer of new technologies and techniques to the country's steel industry.
- Environmental protection solutions
+ To limit and minimize pollution. Newly built
metallurgical plant must apply modern and advanced technologies and be equipped
with environmental-standard equipment for waste treatment and pollution
reduction. To reject metallurgical projects that have no environmental impact
assessment reports or environmental standard conformity registration;
+ To make relocation and intensive investment
plans for steel refining and rolling establishments in cities or craft villages
in order to reduce environmental pollution;
+ To renovate, and gradually eliminate the use
of, outdated technologies and machines such as blast furnaces of under 200m3
(excluding special-use blast furnaces for manufacturing mechanical cast
pig-iron), electric arc furnaces and converter furnaces of a capacity of 20
tons/batch (excluding furnaces for casting mechanical details), steel rolling
chains of a capacity of under 100 tons/shift (excluding those for rolling
stainless steel and high-quality steel), and other outdated subsidiary
machinery and equipment;
+ Pig iron, ingot steel and rolled steel
factories which are planned to be built from January 1, 2011, must,
apart from using modern and environmentally friendly technologies and highly
combined complete equipment with low material and energy consumption ratios,
satisfy the following conditions:
. Using blast furnaces (BF) of a useful capacity
not lower than 700 m3;
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. Using basic oxygen furnaces (BOF) of a
capacity not lower than 120 tons/batch;
. Using steel rolling chains of a capacity not
lower than 500,000 tons/year.
+ To closely control the safety of chemicals and
emissions, especially toxic chemicals in establishments that manufacture
cold-rolled flat-steel products, metal-plated and -coated products or organic
paint-coated products; laboratories; and establishments that manufacture coke,
sinter and revert iron ores.
- Management solutions: To promulgate mechanisms
and policies to develop Vietnam’s steel industry through encouraging and
rationally protecting upstream production investment (large-scale exploitation
and sorting of iron ores, manufacture of reverted products, pig iron and ingot
steel), building metallurgical complexes and big flat-steel mills.
-To step up the renewal and reorganization of
state enterprises in order to raise their competitiveness. To encourage the
establishment of joint-stock companies by state enterprises, economic branches
and domestic and foreign economic sectors.
Article 2.
Organization of implementation of the master plan
1. The Ministry of Industry and Trade:
- The Ministry, an agency in charge of state
management of the steel industry, shall monitor and inspect the steel
industry's investment, production and business situation according to the
approved master plan. To periodically update and adjust the master plan to suit
the national socio-economic development situation.
- To assume the prime responsibility for, and
coordinate with concerned ministries, branches and localities in, studying,
improving and proposing new mechanisms, policies and tools in:
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+ Enhancing market control to prevent fake and
imitation goods and trade fraud; developing and socializing the steel
distribution system, contributing to stabilizing the steel market;
+ Enhancing trade promotion, supporting the
seeking and development of markets for exporting pig iron and steel products.
2. The Ministry of Planning and Investment:
To assume the prime responsibility for, and
coordinate with the Ministry of Industry and Trade in, calling for investment
cooperation in the development of key steel projects such as Thach Khe iron ore
mine and Ha Tinh Steel Complex. To orient and facilitate the attraction of
investment and grant investment certificates for projects under this master
plan.
3. The Ministry of Finance:
To assume the prime responsibility for, and
coordinate with the Ministry of Industry and Trade and the Ministry of Planning
and Investment in, studying, improving and proposing mechanisms, financial
policies as well as import tax and export tax policies in order to step up
investment in the development and restructuring of the steel industry.
4. The Ministry of Transport:
To assume the prime responsibility for, and
coordinate with the Ministry of Industry and Trade in, making and implementing
the plan on transport networks, especially railways and seaports, supporting
the development of steel industry infrastructure in Lao Cai, Hai Phong, Ha
Tinh, Ba Ria-Vung Tau, Quang Ngai and other localities.
5. Ministry of Science and Technology:
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6. The Ministry of Natural Resources and
Environment:
- To assume the prime responsibility for, and
coordinate with concerned ministries, branches and localities in, closely
managing iron ore resources and fluxing minerals; to direct and increase
investment in survey, assessment and exploration of iron ores and fluxing
minerals according to the approved master plan;
- To facilitate the licensing of mineral
activities related to the master plan.
7. Provincial/municipal People's Committees:
- To direct investment in the development of
steel manufacturing establishments in their localities in accordance with this
master plan;
- To coordinate with concerned ministries and
branches in organizing and inspecting the implementation of this master plan;
to handle and solve in time problems and difficulties for investors and steel
mills in their localities.
8. The Vietnam Steel Association:
- To act as a coordinator and representative for
steel enterprises in working with state management agencies;
- To proactively propose and join concerned
ministries and branches in formulating development mechanisms and policies; to
participate in the settlement of problems arising in the course of production
and business, especially in the context of international integration.
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This Decision replaces the
Prime Minister's Decision No. 134/2001/QD-TTg dated September 10, 2001, and
takes effect 15 days after its publication in CONG BAO.
Article 4.
Ministers, heads of
ministerial-level agencies, heads of government-attached agencies, and
presidents of provincial/municipal People's Committees shall implement this
Decision.
PRIME
MINISTER
Nguyen Tan Dung
APPENDIX
LIST OF MAJOR INVESTMENT PROJECTS OF VIETNAM’S STEEL
INDUSTRY DURING 2007-2025
(Attached to the Prime Minister’s Decision No. 145/2007/QD-TTg dated
September 4, 2007)
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Contents
Expected
location
Expected
time of commencement and completion
Investment
capital (US$ million)
Products
(1,000 tons)
Pig iron
Ingot steel
Rolled steel
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I.1
Key projects
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1
Ha Tinh Steel Complex
Vung Ang
2010-17
3,000
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4,500
4,000
2
Quang Ngai Steel Complex, phase 1
Dung Quat
2008-10
539
2,000
1,860
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Dung Quat
2011-17
500
2,500
2,200
3
POSCO project, phase 1 – cold rolling
Ba Ria – Vung Tau
2007-09
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700
POSCO project, phase 2 – hot rolling
Ba Ria – Vung Tau
2010-12
660
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4
Thien Hung Stainless Steel Refining and
Rolling project
Ba Ria – Vung Tau
2006-10
650
720
5
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Ba Ria – Vung Tau
2007-09
525
2,000
I.2
Other major projects
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1
Renovation, and expansion of production, of
Thai Nguyen Pig Iron and Steel Company, phase 2 (including mines)
Thai Nguyen
2006-10
237
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500
500
2
Lao Cai Pig Iron and Steel Complex
Lao Cai
2006-10
150
500
430
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3
Lao Cai Pig Iron Mill (ViMiCo, Vietnam Coal-
Mineral Industries Group)
Lao Cai
2006-08
26.3
100
4
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Tuyen Quang
2006-10
43.5
220
5
Cao Bang Pig Iron and Steel Joint-Stock
Company
Cao Bang
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25.0
140
6
Yen Bai Pig Iron and Steel Mill
Yen Bai
2006-10
32.6-35.0
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7
Steel-Slab Manufacture Projects of Vietnam Pig
Iron and Steel Joint-Stock Company
Northern Vietnam
2006-10
70
330
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8
POMINA Ingot Steel Mill (Vietnam Steel
Company)
Ba Ria –
Vung Tau
2008
70
400
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Flat Ingot Steel Mill (Cuu Long Company)
Hai Phong
2006-10
60
400
10
Phu My Ingot Steel Mill, phase 2 (Southern
Steel Company)
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2011-15
60
500
11
Hot-Rolled Steel Sheet Mill of Cuu Long
Company
Hai Phong
2007
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300
12
VINASHIN’s Hot-Rolled Steel Sheet Mill
Quang Ninh
2008
35
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300
13
LILAMA’s Cold-Rolled Steel Coil Mill
Vinh Phuc
2006-10
37.8
250
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Cold-Rolled Steel Coil Mill of Hoa Sen Company
Binh Duong
2006-10
28
120
15
Phu My Cold-Rolled Steel Mill, phase 2
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2006-10
25
200
16
Fomosa Steel – a cold – rolled steel mill
Ba Ria – Vung Tau
2006-10
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120
17
Sun Steel – a cold-rolled steel mill
Binh Duong
2006-10
28
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120
18
Cold-Rolled Steel Mill of Bach Dang Company
Hai Phong
2011-15
35
200
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Projects planned during 2016-2025
1
Minimill project (direct reduction
(DR)-EAF-ingot steel): option 1
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2016-20
800
Rotated
products
1,450
1,450
Minimill project (DR-EAF-steel sheets):option 2
Binh Thuan
2016-25
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1,450
1,450
2
Projects on refining and rolling steel sheets
and non-welded steel tubes (2-3 projects)
Coastal areas in Northern, Central and
Southern Vietnam
2016-25
1,000
1,500-2,000
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3
Projects on refining and rolling construction
steel and large shaped steel products of high quality (2-3 projects)
2016-25
1,000
2,000
1,500