| THE PRIME MINISTER OF GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
| No: 134/2001/QD-TTg | Hanoi, September 10, 2001 |
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:
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 5.- This Decision takes effect 15 days after the date of issuance.
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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
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
File gốc của Decision No. 134/2001/QD-TTg of September 10, 2001, approving the overall planning on the development of the steel industry till 2010. đang được cập nhật.
Decision No. 134/2001/QD-TTg of September 10, 2001, approving the overall planning on the development of the steel industry till 2010.
Tóm tắt
| Cơ quan ban hành | Thủ tướng Chính phủ |
| Số hiệu | 134/2001/QD-TTg |
| Loại văn bản | Quyết định |
| Người ký | Phan Văn Khải |
| Ngày ban hành | 2001-09-10 |
| Ngày hiệu lực | 2001-09-25 |
| Lĩnh vực | Đầu tư |
| Tình trạng | Hết hiệu lực |