Decision No. 60/2004/QD-BCN approving the Scheme on Development of the chemical industry till 2010 in service of agricultural and rural industrialization and modernization

OFFICIAL GAZETTE No. 01 (01-8-2004) THE MINISTRY Of tt/DUSTRY DECISION No. 60/2004/QD-SCN OF JULY 15, 2004 APPROVING THE SCHEME ON "DEVELOPMENT OF THE CHEMICAL INDUSTRY TILL 2010 IN SERVICE OF AGRICULTURAL AND RURAL INDUSTRIALI ZATION AND MODERNIZATION" THE INDUSTRY MINISTER 2003/ND-CP of May 28, 2003 defining the functions, tasks, powers and organizational structure of the Industry Ministry; Pursuant to the Prime Minister's Directive No. 24/2003/C'T-TTg of October 8, 2003 on developing agr!culturaf, forestry and aquatic product- processing industry; Pursuant to the industrial sector's action program for implementation of the Resolution of the gh plenum of the Party Central Committee of the JX!h Congress; At the proposals of the director of the Engineering, Metallurgy ,:and chemical Department and the directof ot the Local Industries Department, DECIDES: Article 1.- To approve the Scheme on "Development of ttie. Chemical Industry ti 11 201 o in Service · of Agricultural and Rural lndustrialization and Modernization" with the following principat contents: 1. Development viewpoints and objectives a) To satisfy the development requirements ot the national economy, (irst 01 all agrlcu\tural production, rural industrialization, thus boosting the development of other industries and raising the people's life; b) To develop selectively and simultaneously bott1 fields of production means and consumption rneans on t11e basis of going straigt1t into modern technologies, saving raw materials and materials and protecting the Pumuant to the Government's Oecrcc-J No 551 environment; OFFICl.l\L GAZETTE c) To mobilize comprehensively and use effic:iently the advantages of domestic resource~3 and make full use of fornign resources for dovolopment of the chemical industry, focusing on key products in service of agriculture and rural areas such as assorted fertilizers, plant protection drugs, base chemicals, products processed from natural compounds, rubber, plastic, etc.; d) To prioritize the attraction of foreign investment in the field of base chemic;:i.ls, petro• chemistry, nitrOgehousfertilizer, coloring powder, production ofhigh•class battery ot various kinds, industriaHnert gas, etc. To make sefHnvestment in many forms :such as domestic joint venture, import Of equipm,eht, technologies, etc.; f!) To· dos€i1Y. and efficiently combine the developrnehtofthe chemical industry i n service at agrlcu\tµral a~d: rural industrialization and : . . . modernization with the cause of defending the fatherland, consolidating security and ·defense. ·. . . . ·. .., 2. Oev~lopment odentations 2.1. Development of chemical products in ' ' service of agriculture a) Fertilizer: Fertilizer production develop· ment constitutes one oUhe central tasks of the chemical industry till 2010 and subsequent years in order to serve agriculture. To quickly increase the quantity, diversify catergories, chiefly organic 1erti\iz.er and microbio\og\ca\ fertilizer of different kinds, and raise the fertilizer quality to suit each type of crop ancJ different soil conditions. Up to 2005 and 2010, the fertilizer industry concentrates on stepping up the investment in the construction 01 two nitrogenou:~ fertilizer plants, one plant for production of fertilizer from gas in Ca Mau with the capacity ot 800,000 tons of urea/yoar; a plant in tl1e North producting fertilizer from coal dust with the capacity of ti60,000 torn, of urea/year; a diarnlno phosphate (DAP) fertilizer at Dinh Vu, Hai Phong, with the capacity of 330,000 tons/year, an amon sulphate (SP) plant with the capacity of 100,000 tons/year. To continue to invest in expanding tt1e superphosphate production capacity in Lam Thao to 850,000 tons/year, in Long Thanh to 200,000 tons/year, of phosphate fertilizer plants to 500,000 tons/year. For mixed iertmzer-{NPK): No new investment in N PK fertilizer establishments according to the existing technology, To make intensive investment and develop production along the direction of raising the-product quality such as the nutritious content, mechanical durability, moisture~cornbating and '-absorbing capability, minimizing envirorimental pollution while raising the automation and mechanization of production. For organic and microbiological fertilizers: Depending on the demands and raw material sources in loca\ltles to determine the appropriate scale and products. Apart from the above·mentioned traditional kinds of fertilizer, to research into the development of a number of new kinds of leaf fertilizer, slowly dissolving fertilizer. To research into the production ot assorted useh1l microorganisms in order to take inltiative in the production of biological organic fertilizer and m icrobio!ogica I f orti !ize r. Raw materials for fertilizer production: To make synchronous investment in projects for exploitation of such ores as apatite, secpontin in order to ensum raw materials for fertflizer OFFICIAL GAZETTE No. 01 (01-8~2004) production. b) Plant protection chemicals: Using new active elements of high activity, less harm to humans and homeothermal animals and !ess pollution to environment. To apply modern processing technologies, using water solvents assorted anirnal feeds such as protein sources, fish powder, bone powder, minerals, vitamins, etc. e) Active coal: ·10 continue making intensive investment in combination with extensive investment to raise product quality and expand in replacement of organic solvents in order to markets for export of active coal. acquire environmentally safe and friendly f) Analytical chemistry in service of products such as strong suspended products, microemulsion, water dispersal particles. To research into the use of mlcroblological active elements and assorted active elements extracted from vegetation. To prioritize investment pr oJects :on production of active elements in ord.ef to rnduce the import percentage. TQ Invest In new equipment for production of plant protection chemicals, automationof packihg:process. To step up the production .. of .i~o~e.,Lise ,:disinfectants, stimulants, fungicide, herbicide;·. c) Food chemical proctucts, post-harvest preseNation a~d i~ service of aquaculture: From now till 2010, to m~ke ... ihtenslv~ investment in renewing technologies and equiprr{ent and continue investmentto:raJse production capacity and quality of assorted chemicals used in food production, chemicals in seNice of post-ha Nest preservation and aquaculture with a View to substituting imports. To select andaccess modern new technologies of high competitiveness for new investment therein. To develop the production of a number of preparations such as zeolit and diatomite in service of aquaculture. To research into the production of a number of refrigerating agents such as liquid nitrogen and solid CO2 from accompanied gas of petro- processing projects. d) Weight increment drugs, animal feeds: To increase investment in the production of agriculture; To develop analytical chemistry in service of agriculture: categorizing and evaluating the quality of, soil, soil's ion exchange capacity, soil humus degree, evaluating the quality of fertilizers, insecticide,• aquaculture water, analyzing the quality of food, analyzing plant modicum, etc. 2.2. Oevelopment of chemical pr oducts in service of rural areas a) Rubber products:To ensure.the:supply of tyres of tractors and tyres of·aufomobiles in service of communication.and special use in agriculture. To researc;h Into and develop the production of technical·· rubber prodµcts, latex products. b} Detergent: Between now and 201 0, ma inly to concentrate on modernizing the existing chains, stabilizing and raising product quality, diversifying detergent .products, satisfying the domestic demand, chiefly rural demand with prices suitable to the purchasing power of the majority of peasants. c) Battery: To continue developing the production of assorted storage battery and battery in service of fishermen and deepwlying or remote rural areas along the direction of producing assorted non~ rn ai nte nan ce low antimon tead, calcium lead accumulators; to reduce raw materials norms, raise tl1e capacity No. 01 (01-0 2004) OFTICIAL GAZETTE and us0ful life, reduce self-discharge extent duri11g storage, raise the total output of storage batteries to 1.5-1.9 million kWh by 2010. To invest in U1e production of a numbe1· of raw materials for the production of batteries suet, as restitution lead, powdered zinc, etc. d) Pharmaceutical chemist1y: To further build establishments for production of chemicals and pharmaceutical materials. To coordinate with the pharmaceutical industry in stepping up the development of the pharmaceuticaf-chemicaf industry, achieving the target that domestic production satisfies 60% of the social demand for preventive and curative medicines, raising the consumption oi medicines to USD 12-15/ person/year by 2010. e) lndustrial gases: To fully satisfy the demand for industrial gas products such as oxygen, nitrogen, carbon dioxide tor domestic market. To invest in the Construction of industrial gas p!ants in association with the electr\c\ty nitrogenous fertilizer projects of Phu My and Ca Mau. 2.3. Consumption of products supplied by rural areas to the chemical industry a) Base chemicals Industrial salt: To invest in the production of sodium hydroxide, chloride and sodium to satisfy the domestic demand and at the same time create conditions for the industrial salt industry to develop. In order to meet the quality requirement of salt for production of sodium hydroxide and chloride, the salt industry should increase technical and equipment investment in the production and refining processes. b) Pharmaceutical plants: On the basis of natural pharmaceutical sources, the pllarmaceutical-chernical industry shall make full use of the available domestic potentials to build up the raw-materials industry on an industrial scale so as to be able to take initiative in drug production and preparation. To distribute pharmaceutical-chemical raw materials manufacturing establishments in regions with advantages in raw material, human resources and environment potentials. To encourage all economic sectors to participate in growing and processing assorted pharmaceuticals according to the State's general development plannings. c) Raw-materials trees: To diversify products turned out from rubber and s ome kinds of trees bearing oil such as mu oil, common shore resin, pine resin, rubber seed oil,.,. thereby contributing to the development Qf assorted raw-materials trees. To efficiently use natural rubber and rubber latex, to limit the export o{ raw rubber. d) Alcohol: To develop ethanol fuel, contributing to minimizing .environmental pollution while opening up the possibility of consuming agricultu·ral products. To conduct small-scale experiments and import technologies in order to shorten the research duration before developing this type of tueL 2.4. Construction of processing and service establishments: The chemical industry participates in investment in the development of service activities such as farm produce preservation, termite and weevil killing, 1uel and consumer chemical product supply. To coordinate with the mechanical industry in building vegetable oil-processing establist1ments on the basis of upgrading a number of existing mu oil- processing factories into modern processing establishments with p!annings on raw material zones. No 0 1 (01-tl-2004) O!TICIAL GAZETTE accelerate lhe development of chomica\ ·industry in Central Vietnam through the development of a number of projects: alkyd resin, base ch e mica Is, d ete rge nt, petro-c~1 em ical s. Solutions and policies on land and use of natural resources: Branches and localities shall create favorable conditions for enterprises of all economic sectors to rent land for construction of establishments producing or processing chemical products, fertilizers in service of agriculture. To encourage the efficient and thrifty use of domestic natural resources. The State should provide .. funding support for· enterprises in mineral-prospection and exploration, planning on developmenfotregions of raw materials trees or pha"rni aceutiCal plants in service of the chemical: industry. Solutl?ns and policies on organization and management: Tq raise the role of State management over a .number of products such as NPK fertHizer, biological ·organic fertilizer, plant protection chemicals in order to avoid scattered investment and the violations of environmentarprotedtion and product quality. Market solution and policies: To take measures to protect the domestic market in the process of integration mainly by using the technical barriers to prevent the import of poor quality, unsafe, polluting products and also by intensifying the 1ight against imitation goods, counterfeit goods. Article 2.- Implementation organization To coordinate with the Institution for Industrial Strategy and Policy Research in formulating and submitting to the Prime Minister for approval the "Strat1:1gy-Plan ning on Development of the Chemical Industry till 201 O wlth a vlslon toward 2020." To guide the implementation thereof after its promulgation. To coordinate with the Local Industries Department, functional departments of the Ministry and provincial/municipal Services of Industry in monitoring and settling in time arising matters in order to support chemical establishments in service of agriculture and rural areas. To direct Vietnam Chemical Corporation, Vietnam Petroleum Corpor'ation in sufficient production, meeting ·the agricultural and rural demands. To assume the prime responsibility for, and coordinate wit-h -- the 'concerned agencies such as the Ministry of Agriculture and Rural Development, 1he Fisheries Ministry, Vietnarn ' . . Fertilizer Producers' Association, Vietnam Chemistry Association in, deploying specific projects, b) The Local Industries Department: To coordinate with the provincial/municipal Services of Industry, the functional departments and corporations under the Ministry in realizing the scheme's contents. To periodically report on advantages and disadvantages in the course of Implementing the sct1eme to the Ministry's leadership. 1. The Industry Mi rl i stry: c) The J nternatio n a I Cooperation Department: a) The Engineering, Metallurgy and Chemical ·· To coordinate with the 1unctional Department: departments of the Ministry in establishing O!TICl/\l GAZETTE No. 01 (01 ·13··2004) 2.5. Chemical safety in rural areas: To rak~r'.! the awareness of safety of chemicals, particularly plant protection drugs and chemicals whlcl1 easily cause fires or explosion for p0asa111 households through various communication forms of knowledge-updating courses, leaflets, posters. 3. Development solutions and policies The development solutions and policies must ensure the following requirements: Balanced development of product structures; Best conditions for.efficient mobilization of domestic resources; High growth rates for chemical products in service of agriculture; rural areas and the whole chemical industry;···. Being suitable to general socio-economic conditions as well as conditions on investment attraction, developing a strongchemical industry in future. Some major solutions and policies: Capital solutions and policies: State capital shall be concentrated on investing in key projects; implementing the existing policies on capital preferences for investment projects for fertilizer production, without scattered investment. To encourage and create conditio11s for foreign investors to invest in the production of chemicals in service of agriculture and rural areas; particularly in the production of export goods, high technologies and support industries, intensive raw material processing in service of the domestic production of chemical~, and fertilizers. Tax solutions and policies; To study and settle enterprises' proposals on VAT reduction for a number of years for new investment projects on production of fertilizers, plant protection chemicals, base chemicals and reduction of VAT rate of fertilizers to 0% in direct service of agricultural production. Solutions and policies to raise production capacity: To comprehensively mobilize domestic and overseas resources, efficiently use the existing resources for raising the capacity of production of chemical products in order to ensure adequate and timely supply thereof for domestic consumption and export To make intensive investment, renew technologies and equipment in order to raise production capacity. Science and technology solutions and policies: To make develo pment Investment along the direction of going straight into the use of advanced technologies in order to create products of high quality,with tower costs and at the same time diversifying products, developing new ones. To raise the research and development capability of the contingent of managers and develop sciences and technologies. The agricultural and industrial promotion systems shall provide funding and human resource supports for the work of technology transfer, research and development, marketing of establishments processing chemical products and fertilizers in service of ag ri culture. Solutions and policies on product structures ancJ territorial regions: To formulate new investment projects near raw materials regions and product outlets. In the immediate future, to OFFICIAL GAZETTE No. 01 (0!-B-2004) bilateral and multilateral relations of cooperation with international and foreign organizations in the field of supply of information, scientific and technical advances, financial supports and experiences in the chemical industry in service of agriculture and rura! areas. d) The Science and Technology Department plants to !100,000 tons/year. To investment technologies and equipment in order to renew the plant protection drug processing and producing technologies. To invest in the production of active elements with the output of 6,000 tons/year. To make synchronous investment in projects to ensure . raw materials for fertilizer production such as To coordinate with the . functional apatite, secpentine ores. departments of the Ministry in directing the research units of the Ministry to raise the research capability and step up the application of scientific and ·technological solutions to agricultural production and rural areas. To assume the prime responsibility for, and coordinate with· the concerned agencies in, formulating. and ,proposing . technical barriers to protect the ddn,estic. nia;ket. To assume the: prime responsibility for coordinated propagation of chemical safety for agriculture and rural areas. ·': ' . : 2. Vietnam Chemical CorPoratlon: To monitor and direct its attached enterprises in drawing up investment plans on technological development and innovations, raising the product quality, diversifying products in order to satisfy in time demands for chemical products for agriculture and rural areas, To speed up the investment in the construction of OAP plant with t~1e capacity of 3~'30,000 tons/year, the factory for production of nitrogenous fertilizer from coal dust with the 9c1p acity of 560,000 tons/year. To invest in expanding the super-phosphate fertilizer production capacity at Lam Thao plant to 850,000 tons/year, at Long Tl1ant1 plant to 200,000 tons/year, at fusion phosphate fertilizer To make feasibility study reports on projects for production of sodium and sodium hydroxide frcim industrial salt. · 3. Vietnam Petroleum Corporation: To stably operate Phu My nitrogenous fertilizer plant, striving to run it with the designed C?pacity as from 2005, and afthe same time bullding the distribution networks·to. satisfy the peasants' demands for nitrogenous fertilizer, To speed up the inve9tment In construction of Ca Mau nitrogenous fertilizer plant with the capacity of 800,000 tons/year .. ·. 4. The People's Commlttees of the ·provinces and. centrally-run cities: To direct provincial/municipal Services, departments and branches in formulating mechanisms and policies to concretize the scheme's contents to suit the concrete characteristics of each locality in order to promote to the utmost the chemical industry's capability in service of agricultural and rural industrialization and modernization in their respective localities. To consolidate and perfect t/w apparatuses of th~ Industry Services to well perform the role as key bodies to advise the provincial People's No. 01 (01-8-.2004) OFFICIAL GAZETTE CommiUees and the Industry Ministry on the development ot the chemical inc1usfry in service of agricultural and rural industrialization and modernization. 5. Vietnam Chemistry Association • To cooperate w\th the concerned. organizations with a view to supporUng the qµick . . introduction of scientific and tectlniGa.l advances in service of agriculture and rural areas. . . . To diss~minate,chemlcal knowledge and techniques to pe.f:l:$ants and persons conducting acUvit\es re\ated to tne chemica\ Industry in service of a.wicµltLire and rural areas. 6; Vi~tlli'lm. FertiUzers Association To co:arc;li11aW fertilizer produQers, importers . and trad~t:s ih the work,.6f information, market . ' .. ... . .... , ·,. . . search, inspecti,011 ~.rid supervision of sale prices, import p.rfoe$, product quality, to, participate in balancing .supply and demands in . order to·avoid priceflu¢fµation. Article3i .. This D.ecislon takes effect i 5 days· after Its publication in the Official Gazette. · Article 4 ... The dkectcr o{ the Ottice1 the chief inspector, the directors oft11e departments of the • · Ministry., the dirncto{ of tt\la tnstit""tia for h,<fostria\, · · Strategy and Policy Research, the general director of Vietnam Chamlca~ Coi:pora\lc.11, the general director of Vietnam Petrole1..tm Corporation, the heads of the concerned units shaU ha.veto implement ttiis Decision, Minister of Industry HOANG TRUNG HA\