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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:
186/2002/QD-TTg
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Hanoi
December 26, 2002
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DECISION
APPROVING THE STRATEGY ON DEVELOPMENT OF VIETNAM’S
MECHANICAL ENGINEERING INDUSTRY TILL 2010, WITH VISION TO 2020
THE PRIME MINISTER
Pursuant to the December 25, 2001 Law on
Organization of the Government;
At the proposal of the Industry Ministry in Official Dispatch No. 3608/TTr-KHDT
of September 10, 2002 and proceeding from the opinions of agencies at the
September 12, 2002 meeting in the Government Office,
DECIDES:
Article 1.- To approve
the strategy on development of Vietnams mechanical engineering industry till
2010, with vision to 2020, with the following principal contents:
1. Viewpoints on the development of Vietnams
mechanical engineering industry:
- Mechanical engineering is one of the base
industries and plays an important role in the economic development and
consolidation of security and national defense of the country.
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- To concentrate on the development of a number
of key mechanical specialties and products in order to best tap and bring into
the fullest play potentials (natural and human resources) to satisfy essential
requirements of the national development cause.
- To enhance the self-research and manufacture
capability, and at the same time to step up the absorption and application of
advanced sciences and technologies in order to attain the average advanced
technological level of the Asian countries, and create many mechanical products
with high competitiveness.
- To raise the specialization and cooperation,
enhance the mechanical engineering industry�s
capability, thus creating a prerequisite for the development of other
industries of the country.
2. Objectives
a/ General objectives:
Priority shall be given to the development of
the following key mechanical specialties and products, so as to basically meet
the national economy�s
demands:
- Complete equipment,
- Prime movers,
- Mechanical engineering in service of
agriculture, forestry, fishery and processing industry,
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- Construction engineering,
- Ship-building engineering,
- Electric-electronic technical equipment,
- Automobile engineering - communications and
transport engineering.
b/ Specific objectives:
By 2010, to strive to meet 45 - 50% of the whole
country�s demand for
mechanical products, of which the export proporation shall represent 30% of the
total output value.
3. Strategic orientation for development of a
number of important mechanical specialties and product groups
a/ Complete equipment:
- To raise the capability to manufacture
complete equipment with advanced technologies. To strive to manufacture
equipment with high sophistication as substitutes for imported products and
step by step proceed to export them. To raise the capability to design complete
equipment, and efficiently combine them with technology of each industry.
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- To make the fullest use of equipment capacity
of mechanical engineering enterprises throughout the country, to enhance the
coordination in the division and cooperation in manufacturing complete
equipment.
- To strive to meet 40% of the domestic demand
for complete equipment by 2010. For the immediate future, to concentrate on the
following fields: production of paper and paper pulp, production of cement and
construction materials, generation of electricity, production of oil and gas,
supply of clean water, processing industry, etc.
b/ Prime movers:
- To develop the prime mover manufacture into a
strong industry of Vietnam, through programs and projects on intensive
investment, modernization of equipment and technologies, raising of the
capability to manufacture prime movers, and raising of products� competitiveness.
- By 2010, to meet 60-70% of the domestic demand
for medium-sized and small-sized prime movers, to strive to manufacture
hydraulic engines of 400 HP or over with a localization rate of 35-40%.
c/ Tractors and agricultural machines:
- Tractors:
+ To invest in the manufacture of two-wheeled
tractors of a capacity of 6, 8 or 12 HP to fully meet the domestic demand.
+ To manufacture four-wheeled tractors of a
capacity of 18, 20 or 25 HP, and gradually proceed to manufacture four-wheeled
tractors of up to 30 HP.
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- Agricultural machines:
+ To concentrate investment in building the
adequately strong specialized industry for manufacturing agricultural machines,
including farming and processing machines and equipment for preserving farm
produce, with a view to meeting the domestic demand and step by step proceeding
to export them.
+ To encourage medium-sized and small-sized
manufacturing establishments and local mechanical engineering units to take
part in manufacturing equipment and machinery in service of agriculture and the
processing industry in an organized manner, with a rational task division and
cooperation with mechanical engineering enterprises at home and abroad.
d/ Machine tools:
- To give priority to the development of the
machine tool manufacturing industry, with a view to meeting the industries� demands therefor.
- To research, design and manufacture modern
machine prototypes (application of PLC and CNC technologies) and special
working devices.
- To step up the modernization program along the
direction of computerized numerical control (CNC) of the existing machine tools
in industrial establishments.
e/ Construction engineering:
- To make intensive investment and new investment
in the establishments manufacturing construction machines with modern equipment
and technologies, in order to basically meet the demands for production of
construction materials, construction and installation of big projects, urban
and rural construction.
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f/ Ship engineering:
- To develop Vietnam�s shipbuilding industry into a specialized
economic-technical branch synchronized from the stages of training, research,
designing to the manufacture and sale of products, thus meeting the demand for
restructuring of ship fleets operating at home and abroad. To strive for the
objective that by 2010 Vietnam shall have a ship-building industry developed at
the average advanced level in the region and capable of meeting the demand for
national socio-economic development and contributing to the security and
defense consolidation, and step by step proceeding to export ships.
- By 2010, the ship-building industry shall be
fully capable of building almost all inland waterway transport means, project
ships, fishing ships and sea-going ships of a tonnage of under 15,000 DWT;
meeting 70-75% of the demand for building multi-purpose ships of 15,000 -
50,000 DWT and oil tankers of 100,000 DWT. To completely repair all
national-level ships of a tonnage of up to 400,000 DWT.
- To quickly form and develop supporting
industries, such as manufacture of steel sheets for shipbuilding, assembly of
hydraulic engines of a capacity of up to 6,000 HP and manufacture and assembly
of onboard equipment, electric and electronic equipment, maritime facilities
and devices, with a view to raising the localization rate to 60% for
newly-built ships, and to 70% by 2020.
g/ Electric equipment:
- To build a modern electric equipment
manufacturing industry to reach by 2020 the advanced level in the region in
electric equipment and materials.
- To make new investment and intensive
investment in electric equipment with advanced technologies to quickly raise
the electric equipment manufacturing capacity and products� competitiveness, with a view
to largely meeting the domestic demand, substituting for imported equipment and
boosting the export of products to regional and world markets.
- For the immediate future, to intensively
invest in and expand the production of the existing establish-ments to make
them capable of manufacturing large-sized transformers of an output of up to
125 MVA and for a voltage of 220 kV, distribution and transmission equipment
for the electricity branch, pressure equipment and other electric equipment for
industrial and civil use.
h/ Automobile engineering and communication and
transport engineering
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To develop Vietnams automobile industry on the basis
of absorbing and applying the worlds advanced technologies, in combination with
exploitation and step-by-step elevation of the existing technologies and
equipment, in order to largely meet the domestic automobile market demand, with
a view to exporting automobiles and spare parts thereof.
+ Regarding common-type vehicles: To meet 40-50%
of the domestic quantitative demand with the localization rate of up to 40% by
2005; and over 80% of the domestic quantitative demand and the localization
rate of 60% by 2010 (particularly, for engines and gear boxes, the localization
rates shall reach 50% and 90% respectively).
+ Regarding special-purpose vehicles: to meet
30% of the domestic quantitative demand and attain the localization rate of 40%
by 2005, and proceed to meet 60% of the domestic quantitative demand and attain
the localization rate of 60% by 2010.
+ Regarding high-class vehicles: tourist
automobiles manufactured by joint-ventures shall have to attain the
localization rate of 20-25% by 2005 and 40-45% by 2010, to meet 80% of the
demand for high-class trucks and buses with the localization rate of 20% by
2005 and 35-40% by 2010.
- Regarding the communications and transport
engineering:
+ To make intensive investment and supplementary
investment in assembly technologies and equipment for manufacturing project
vehicles and machinery, such as thermal bituminous concrete mixers, bituminous
concrete spreaders, road rollers of all types, stone-grinding and screening
stations of an output of 100-300 tons/hour, etc.
+ To make intensive investment in the renewal of
technologies for manufacturing high-class train cars with the localization rate
of over 70% by 2005 and up to 90% by 2010.
4. Policies and measures to support the
development of the mechanical engineering industry
a/ Market policy:
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- The State provides conditional and
definite-term protection for a number of home-made mechanical products and
promulgates policies to promote and enhance the salability of home-made
mechanical products.
b/ Policy on creation of capital for the
mechanical engineering industry
- The State adopts a mechanism to support the
borrowing of working capital for manufacturers of mechanical equipment and
projects on manufacture of complete equipment which require large capital and
long production cycles.
- Projects on manufacture of key mechanical
products shall be entitled to borrow capital under the Governments Resolution
No. 11/NQ-CP of July 31, 2000 with the credit interest rate of 3%/year, the
borrowing term of 12 years and a grace period of 2 years. The borrowers shall
begin to repay loans as from the fifth year or have interest rate difference
subsidized if the borrowed capital is commercial loans.
- To step up the equitization of engineering
enterprises, including the sale of equities to foreigners, in order to create
new investment capital and diversify capital sources.
- The State adopts policies to encourage all
economic sectors to invest in the manufacture of spare parts and components
along the direction of raising the capability for specialization and
cooperation in the entire mechanical engineering industry.
c/ Tax policies
- To exempt or reduce import tax on raw
materials and components and parts of key mechanical products in service of the
domestic production.
- To effect tax exemption or reduction for
certain periods for mechanical products made for the first time in Vietnam.
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- For key mechanical products, the State shall
consider and provide capital support for technical services, such as hiring of
experts, procurement of designs and technologies and technology transfer, which
exceed the enterprises capability.
- Mechanical engineering enterprises shall be
entitled to set aside a maximum of 2% of their sale turnover for research and
development activities.
e/ Policy on human resource training
The State prioritizes the investment in
upgrading training establishments in the mechanical engineering industry and
provides funding support for sending brilliant officials and workers abroad for
training and practice under the already approved programs and projects.
Article 2.- To set up
the Steering Committee for the Program on Key Mechanical Products, which shall
be composed of a Deputy Prime Minister as its head, the Industry Minister as
its deputy head and vice ministers of Industry, Planning and Investment,
Defense, Finance, Science and Technology, Communi-cations and Transport,
Construction, Trade, Agriculture and Rural Development, the chairman of Vietnam
Mechanical Engineering Society and the chairman of the Vietnam mechanical
enterprises association as its members, to direct the materialization of the
program according to the set objectives and schedule.
Article 3.- Organization
of implementation
- The Industry Ministry shall assume the prime
responsibility and coordinate with the ministries, branches and localities in
implementing this strategy; and direct the formulation of the planning on
development of mechanical specialties till 2010 and submit it to the Prime
Minister for approval.
- The Finance Ministry shall propose financial
and tax policies to promote the development of the mechanical engineering
industry.
Article 4.- The
ministries, branches and Peoples Committees of the provinces and centrally-run
cities, in the course of implementing this Strategy and within the ambit of
their respective functions and tasks, shall have to ensure consistency and
synchronism between the mechanical engineering development Strategy and
planning of each ministry, branch or locality.
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Article 6.- 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 and the heads of the concerned bodies
shall have to implement this Decision.
PRIME MINISTER
Phan Van Khai