DECISION

GIVING APPROVAL FOR PLAN ON DEVELOPMENT OF VIETNAM’S PAPER INDUSTRY UP TO 2020 AND VISION EXTENDED TO 2025

MINISTER OF INDUSTRY AND TRADE

Pursuant to the Government’s Decree No. 95/2012/ND-CP dated November 12, 2012 defining functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 92/2006/ND-CP dated September 07, 2006 regarding the establishment, approval and management of the master plan on socio-economic development and the Government’s Decree No. 04/2008/ND-CP dated January 11, 2008 on amendments to the Decree No. 92/2006/ND-CP;

At the request of the Director General of the Light Industry Department,

DECIDES:

Article 1. To give approval for the “Plan on development of Vietnam’s paper industry up to 2020 and vision extended to 2025” with the following contents:

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- Effectuate a sustainable development of Vietnam’s paper industry in association with environmental protection duties;

- Apply advanced technologies to improve product quality, reduce the consumption of raw materials and energy, strengthen competitive capacity of the enterprise and its products, and pay concentration on establishing a number of national trademarks of paper and pulp products for achieving effective competition in the course of economic integration;

- Mobilize all resources from all economic sectors under any form to step up production for meeting social increasing and diversified demand.

2. Development objectives

2.1. General objectives:

- Build concentrated industrial parks in provinces and cities with developing industries and re-plan existing plants and newly built plants, facilitate in construction of concentrated sewage treatment system with high power and modern technology and equipment to meet environmental protection requirements;

- Establish adequately strong manufacturing groups with financial potential, high-power plants and high-quality products, to be capable of competition in both regional and world market and increase the export of products of Vietnam's paper industry to the world market;

- Build a raw material forests in order to gain initiative in sufficient and stable supply of raw materials to pulp manufacturing plants according to the plan on development of paper industry. (Details are stated in Appendix No. 4 herewith);

- Develop raw material areas to effectively use the land resources and labour resources and contribute to the hunger eradication and poverty alleviation and socio-economic development; solve employment problems and improve income of the forest growers, especially compatriots of ethnic minorities. Improve, build and develop rural infrastructure and make a great contribution to new rural development strategies;

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2.2. Specific objectives:

- Up to 2025, gain 65% of domestic waste-paper recovery rate;

- Up to 2025, meet from 75% to 80% of domestic consumption demand, reduce import rate of pulp and paper products;

- Up to 2025, refuse to grant permits and gradually close operations of existing backward pulp and paper plants with scale under 10,000 tonnes/year;

- Up to 2025, basically lead Vietnam’s paper industry to a modern industry.

3. Development orientation

3.1. Technology

- Apply the most advanced technologies in pulp and paper manufacturing industry to newly invested projects and upgraded projects, including biotechnology, biomass technology and nanotechnology, develop and apply cleaner production technology to sewage, exhaust gas and solid waste treatment, reuse of waste water, close production line and reduce environmental pollution;

- Research and develop applications and put such applications into production of high-tech paper-boards for civil and industrial use for the purpose of controlling domestic market that the paper industry is presently underdeveloped and reducing import rate;

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3.2. Scale and output capacity of investment projects

Determine the development orientation of the paper industry according to concentrated areas with adequately large scale: Minimum output capacity of paper plants is 50,000 tonnes/year; give priority and incentive to the plants with output capacity exceeding 100,000 tonnes/year. Output capacity of pulp plants shall be from 100,000 tonnes/year to 200,000 tonnes/year or more to meet modernization requirements and ensure economic efficiency.

3.3. Planning arrangement

- Only give permission to carry out investment or construction of pulp manufacturing plants or paper and pulp manufacturing combination plants in regions or areas where the plan on pulp production is approved (Details are stated in Appendix 1 herewith);

- When executing the construction of a paper manufacturing plant, it’s necessary to do research and appraisal on location, characters of raw materials and market demand; conditions on infrastructure and capacity for mobilization of investment capital;

- Development of paper industry, including raw materials areas, must be executed in association with protection of security, national defense and environmental protection, in order to promote the transformation of production structure in mountainous regions, remote areas and make contribution to agricultural and rural industrialization and modernization.

3.4. Investment capital

Suitably take advantage of foreign invested capital and ensure the decisive role of domestic enterprise, especially Vietnam Paper Corporation. The execution of this guideline shall be subject to features of each project, region and each specific stage in order to decide a suitable mode of investment (domestic investment, joint venture with foreign parties or 100% of foreign invested capital).

4. Planning targets

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Targets of design capacity

Unit

2015

2020

2025

Pulp

Tonnes/year

1,160,000

1,800,000

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Production of paper

Tonnes/year

4,062,000

6,823,000

10,532,000

(Details are stated in Appendix No. 2 herewith);

4.2. Targets of output

Targets of output

Unit

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2020

2025

Production of pulp

Tonnes/year

985,500

1,480,000

2,350,000

Production of paper

Tonnes/year

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5,800,000

8,950,000

(Details are stated in Appendix No. 3 herewith).

4.3. Targets of want of investment capital

Targets of want of investment capital

Unit

2015

2020

2025

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Billion VND

49,555

88,620

107,492

Paper raw materials areas

Billion VND

15,353

18,674

18,346

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5. System of solutions for executing the Plan

a) Investment solutions

- Mobilize all domestic and international sources of capital from all economic sectors under different forms of ownership to build and expand manufacturing and business establishments;

- The investment must ensure both acceleration of scale, expansion of production capacity and each step of restructure of paper industry according to sustainable development and more and more increasing efficiency.

b) Market solutions

For the purpose of holding fast to and expand export market share and step by step control domestic market, the foundations for developing paper industry include a strong and active production capacity and enterprises capable of producing and training in high-quality paper products.

c) Solutions for human resources training and development

- By 2020, give priority to the training and development of human resources to serve for the purpose of creating human resources for changing mode of production, improving quality of human resources to be capable of participating in international business and production integration by means of awakening social potential, generating motivation for industry development and implementing the socialization deeply and widely.

- Step up and expand the international training cooperation for establishing and raising the level of human resources to the level equal to that of advanced countries and eligible for deeply penetrating into international market;

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d) Solutions for scientific and technological development

- Expand and improve capacity of scientific and technological research facilities in paper industry according to the manner of self-control and self-responsibility in order to become key facilities in doing research and application of new technologies, providing human resources training, giving advice and suggesting general development strategies of paper industry;

- The State encourages the enterprises in investing in scientific research and applying advanced and modern technologies to their production by means of selling, purchasing and receiving transfer of technologies from countries having developed paper industry;

- Promote the international cooperation and encourage the upholding of creation of national force in scientific and technological research in order to produce advanced technologies by means of promoting establishment and development of specific scientific and technological projects in consistent with each development stage of paper industry.

dd) Solutions for industry management

- The State shall continue to execute administrative reforms, in which completion and simplification of administrative procedures in investment, import, export, customs clearance, tax refund for attracting investment and reducing expenses for enterprises shall be concentrated;

- Enhance the role and operating performance of Vietnam Pulp and Paper Association to accomplish the mission of connecting enterprises in paper industry and connecting enterprises with the Government (directly, Ministry of Industry and Trade). The Association shall create unanimity among enterprises, solve general problems of the paper industry and summarize the enterprises’ ideas and suggestions submitted to the Government and the Ministry of Industry and Trade on guidance and establishment of legal corridor in order that the enterprises can sustainably and effectively operate and within the framework of Vietnam Law and international laws;

- Strengthen inspection and supervision of the compliance with the laws and apply legal trade remedies to protection of rights and benefits of the consumers and enterprises.

e) Solutions on environmental protection

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- Maintain sufficient resources for investment in projects on environmental protection and sewage treatment from plants to industrial parks. Encourage the enterprises in increase of accumulated amount and forming source of capital supporting environmental protection activities;

- Sufficiently execute the monitoring, observation and management of environmental targets; inspect the enterprises’ implementation of regulations on environmental protection.

Article 2. Implementation

1. The Ministry of Industry and Trade leads and coordinates with relevant Ministries and agencies and the people’s committees of central-affiliated provinces and cities to guide the development of paper industry according to this plan and assume responsibilities for public announcement of this plan.

2. The Ministry of Industry and Trade coordinates with relevant Ministries and agencies and people’s committees of central-affiliated provinces and cities to determine investment portfolios, investment scale and locations for building new works in each stage suitable to the aforesaid plan.

3. The Ministry of Industry and Trade leads and coordinates with Ministry of Agriculture and Rural Development, Ministry of National Defense, Ministry of Natural Resources and Environment and the people’s committees of relevant provinces to do research and prepare specific drafts of plans on raw materials areas and policies on plants providing raw materials according to the direction of close attachment between pulp production and provision of plants providing paper raw materials in order to ensure appropriate benefits of the forest growers, encourage and improve afforestation providing paper raw materials.

4. Ministry of Planning and Investment, Ministry of Finance, the State Bank of Vietnam and relevant ministries and agencies shall coordinate with the Ministry of Industry and Trade to arrange and look for domestic and foreign sources of capital, ODA and FDI in order to meet requirements on investment and development of paper industry.

5. The Ministry of Industry and Trade and Vietnam Paper Corporation shall base on this plan’s objectives to establish 5-year plan and execute the production and investment in consistent with socio-economic development conditions in each stage.

Article 3. Responsibilities for implementation

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MINISTER




Vu Huy Hoang

APPENDIX 1

LIST OF INVESTMENT PROJECTS ACCORDING TO EACH STAGE
(Appendix enclosed to Decision No.: 10508/QD-BCT dated November 18, 2014 of the Minister of Industry and Trade)

No.

Name of unit

Area

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Period

Pulp

Paper

1

Vietnam Paper Corporation

Phu Tho

150,000

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2

Phuong Nam Pulp Mill

Long An

100,000

Completion/ supplementation (2012-2020)

3

An Hoa Paper Corporation

Tuyen Quang

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In progress of production

140,000

2011-2015

4

Paper manufacturing plants

Southern Vietnam/ South Eastern Vietnam

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...

2011-2015

5

Paper and pulp manufacturing plants

North Central Coastal Vietnam

100,000

180,000

2011-2015

6

Pulp manufacturing plants

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250,000

2012-2015

7

Pulp manufacturing plants

Central Areas of Northern Vietnam

50,000

2010-2015

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Paper manufacturing projects

Areas near the market

1,080,000

2011-2015

9

Paper and pulp manufacturing plants

Central Highlands

130,000

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2010-2020

10

Paper and pulp manufacturing plants

Central Coastal region

130,000

400,000

2010-2020

11

Paper and pulp manufacturing plants

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330,000

420,000

2011-2020

12

Paper and pulp manufacturing plants

North Eastern Vietnam

250,000

200,000

2016-2020

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Paper and pulp manufacturing plants

North Central Coastal Vietnam

150,000

200,000

2016-2020

14

Paper manufacturing projects

Areas near the market

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2016-2020

15

Paper manufacturing plants

North Central Coastal Vietnam

200,000

2021-2025

16

Expand paper and pulp manufacturing plants

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300,000

200,000

2021-2025

17

Paper and pulp manufacturing plants

Central Coastal region

300,000

250,000

2021-2025

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Expand paper and pulp manufacturing plants

Central Highlands

130,000

200,000

2021-2025

19

Other paper manufacturing projects

Areas near the market

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2021-2025

Total

2,350,000

8,455,000

APPENDIX 2

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Targets of design capacity

Unit

2015

2020

2025

Pulp

Tonnes/year

1,160,000

1,800,000

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- Bleached hardwood kraft pulp (BHKP)

650,000

880,000

1,720,000

- Unbleached hardwood kraft pulp

130,000

280,000

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- Mechanical pulp

240,000

500,000

630,000

- Semi-chemical pulp

140,000

140,000

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Production of paper

Tonnes/year

4,062,000

6,823,000

10,532,000

- Newsprint

71,000

118,000

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- Printing, writing paper

650,000

1,090,000

1,680,000

- Packaging paper

3,035,000

4,600,000

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- Other (*)

306,000

1,015,000

1,570,000

APPENDIX 3

TARGETS OF OUTPUT
(Appendix enclosed to Decision No.: 10508/QD-BCT dated November 18, 2014 of the Minister of Industry and Trade)

Targets of output

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2015

2020

2025

Production of pulp

Tonnes/year

985,500

1,480,000

2,350,000

- Bleached hardwood kraft pulp (BHKP)

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570,000

670,000

1,470,000

- Unbleached hardwood kraft pulp

110,000

230,000

230,000

- Mechanical pulp

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190,000

460,000

530,000

- Semi-chemical pulp

115,500

120,000

120,000

Production of paper

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3,450,000

5,800,000

8,950,000

- Newsprint

60,000

100,000

155,000

- Printing, writing paper

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550,000

925,000

1,425,000

- Packaging paper

2,580,000

3,910,000

6,035,000

- Other (*)

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260,000

865,000

1,335,000

(*) other kinds of paper include toilet-paper and tissue, votive paper, technical paper and paperboard, etc. and these kinds of paper shall be not considered as core products.

APPENDIX 4

REGIONS AND REGIONAL AREA FOR DEVELOPING PLANTS PROVIDING PAPER RAW MATERIALS
(Appendix enclosed to Decision No.: 10508/QD-BCT dated November 18, 2014 of the Minister of Industry and Trade)

Stage

Region (unit: ha)

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Northeast

Central areas

North Central Coastal Vietnam

Central Coastal region

Northern areas of Central Highlands

Southern areas of Central Highlands

South Western Vietnam

2011-2015

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Forest area in 2015

123,500

104,550

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136,992

159,501

86,781

75,950

42,100

Reafforestation after the logging

51,000

63,500

82,500

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80,000

32,500

38,500

34,500

New afforestation

61,100

27,500

34,800

43,500

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47,500

29,500

800

2016 - 2020

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Forest area in 2020

145,500

110,550

164,300

157,492

173,001

104,781

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42,100

Reafforestation after the logging

121,247

92,122

136,917

131,243

144,168

72,318

71,208

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New afforestation

22,000

6,500

21,500

20,500

13,500

18,000

9,500

0

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Forest area in 2025

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110,550

164,300

157,492

173,001

104,781

85,450

42,100

Reafforestation after the logging

132,269

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149,364

143,175

157,274

95,255

77,682

38,273