DECISION

APPROVING THE MASTER PLAN ON DEVELOPMENT OF THE VIETNAM CASTING SECTOR DURING 2009-2020, WITH CONSIDERATION TILL 2025

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Government’s Decree No. 189/2007/ND-CP, of December 27, 2007 defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 44/2011/ND-CP, of June 14, 2011 on amending and supplementing Article 3 of the Government’s Decree No.189/2007/ND-CP, of December 27, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Decision No. 186/2002/QD-TTg, of January 16, 2002 of the Prime Minister approving the strategy on development of Vietnam’s mechanical engineering industry till 2010, with vision to 2020;

Pursuant to the Government’s Decree No. 92/2006/ND-CP, of September 07, 2006 and Decree No. 04/2008/ND-CP, of January 11, 2008 on amending and supplementing a number of articles of the Decree No.92/2006/ND-CP, on formulation, approval and management of the master plan on socio-economic development;

Pursuant to the Decision No. 2069/QD-BCT, of April 29, 2009 of the Minister of Industry and Trade on direct appointment of contractor to implement project on zoning for development of the Vietnam casting sector during 2009-2020, with consideration till 2025;

Pursuant to the Decision No. 1984/QD-BCT, of April 23, 2009 of the Minister of Industry and Trade on approving the scheme, estimation of project on zoning for development of the Vietnam casting sector during 2009-2020, with consideration till 2025;

At the proposal of Director of Heavy Industry Department,

DECIDES:

Article 1. To approve the master plan on development of the Vietnam casting sector during 2009-2020, with consideration till 2025 with the principal contents as follows:

1. Viewpoint of development

a) Casting products are importance supporting industrial products, the casting development aims to develop the supporting industry of Vietnam and to meet demand of economy, contribute in restraining trade deficit;

b) Development of the Vietnam casting sector must be conformable with the strategy on development of Vietnam’s mechanical engineering industry till 2010, with vision to 2020 that has been approved by the Prime Minister at the Decision No. 186/2002/QD-TTg, of December 26, 2002;

c) Developing the Vietnam casting sector that will be stable, sustainable, friendly with environment, have inheritance of the regional and international, advanced and modern science and technology;

d) Developing the Vietnam casting sector aims to service for socio-economic development and for national defense.

2. Orientation of development

- To implement depth investment, new investment with modern technology in order to produce the casting products and to take initiative in meeting domestic demand, including demand of defense industry;

- To proceed to manufacture of casting details with quality and high degree of accuracy in order to replace import goods and to export.

3. Objectives of development

3.1. General objectives:

- Till 2020, meeting a large part of demand of the casting products for domestic market in trades: Mining, construction, transport, mechanical engineering, and demand of defense, having a part for export;

- Till 2025, producing the casting products with high quality in order to replace import, proceeding to export.

3.2. Specific objectives:

- Value of production: By 2015, value of production will attain about 998 million USD, by 2020 attain about 1519 million USD and by 2025 attain about 3078 million USD;

- Value of export: By 2015, value of export will attain about 50 million USD, by 2020 attain about 152 million USD and by 2025 attain about 619 million USD.

4. The master plan on development of the Vietnam casting sector

4.1. Key products:

Key products of casting sector include:

- Machine parts to manufacture types of diesel engine for motive power machine and agricultural machine sector, transport: Body of machines, interlock, motor sheath, set of diesel engine (piston set, piston, cylinder, cylinder liner, and piston ring), crankshaft, etc, details for pump machine of all kinds.

- Machine parts for mechanical engineering: body, machine foundation, driven part, etc of tool machines, synchronous equipment for many various industries;

- Machine parts for cement sector: Grinding balls, grinding side, grinding plate, lining plate, etc

- Other machine parts for mining: Shovels, equipment for transport;

- Machine parts for metallurgy: Roller of all kinds, embryo casting, forging steel;

- Machine parts for electrical equipment sector: Types of motor, rotor, turbine;

- Machine parts for oversize and overweight equipment in the mining, ship, crane sectors: Bracket to shift tram of up 30 tons, casting parts for cranes, gantry cranes of 100 tons or more such as rotary table, types of gear with weight of up 10 tons, sole, transport chain, screw-propeller of sea ship, etc.

- Products in service for defense such as types of chain for tanks, armored tanks, types of mortar shells, DKZ; some types of product parts for firecrackers, planes, rockets, etc.

4.2. Plan of development

a) Regarding products:

- By 2020, satisfying about 50 – 60% of demand on the domestic casting products;

- By 2025, satisfying about 73% of demand on the domestic casting products;

b) Regarding technology and materials for casting sector:

- Regarding technology:

+ By 2015: producing the commonly-used casting products, designed technology under orders of industries, process of forming and aloy satisfying domestic demand;

+ During 2015-2025: may produce many types of commonly-used casting products and products meeting high quality and stability of the casting alloy and shape of parts; apply many advanced casting methods and have scientific measures to test product;

+ After 2025: shall produce almost casting products with high quality, complex shapes based on calculation of design, imitation of process of producing materials and shaping, ensure that the casting products will have high technical and economic competitiveness.

- Regarding materials for casting sector:

After 2020: fundamentally, meeting demand of blend materials, essential ferro types, tumbling grits, clay sand and some other additives.

4.3. The general investment capital

- Till 2015: about 645 million USD;

- During 2016-2025: about 592 million USD;

- Total capital during period till 2025: about 1537 million USD;

4.4. The sources to raise capital

Including the capitals from preferential loans, capitals assisted by state, foreign direct investment capitals and other capital sources.

5. Principal solutions and policies

5.1. Solutions:

a) Regarding market:

- Encouraging enterprises in use of the domestic casting products by tax policies;

- Uninterruptedly updating and announcing the casting products that produced domestic, do as basis of setting up the technical barrier aiming to encourage rationally for products produced in home country;

- Encouraging enterprises to participate in searching export market.

b) Regarding investment:

- To prioritize investment in producing the casting products which use high technology, technology friendly with environment, technology spending fewer material natural resources and , creating products with competitive quality and price;

- Projects producing the casting products by state capital shall be considered to apply form of direct appointment of contractor or domestic bidding as prescribed by current law;

- To hasten the implementation of projects on production of casting products in prioritized industries, spearhead industries. To concentrate on depth investment, technological and equipment renewal.

c) Regarding science research and technological transfer:

- The domestic enterprises manufacturing the casting products in service for projects investing in production of key mechanical products shall be assisted from capital source of the National Fund of science-technology assistance for cost of technology transfers, purchase of copyright design, software, hiring foreign experts, training human resource;

- To assist for individuals and enterprises of all economic sectors to participate in activities of research and creativeness. To encourage facilities in research to open joint-venture, international linkage and cooperation;

- To prioritize in use the annual science-technology fund for science and technology task serviced directly for projects investing in the key casting products.

d) Regarding human resource:

- To prioritize to select and send science officers, officers as managers of casting sector to go abroad for training in developed countries;

- To renew vocational training, training under demand of society. To prioritize to upgrade facilities training human source for the casting sector.

dd) Regarding finance:

To assist through tax policies in conformity with regulations of WTO and international commitments of Vietnam. To apply flexibly methods of tax calculation, use effectively tax to prevent dumping and antagonistic tax aiming to protect the domestic production, in conformity with commitments of WTO and regulations of current law.

e) Other solutions:

- To strengthen role of associations and the Casting – Metallurgy- technical- science Association in order to reinforce the relationship among enterprises, enhance the capacity in competition and information exchange on market, technology and investment;

- To strengthen international cooperation in order to receive and seize control of experiences, technology, advanced equipment of world for development of the Vietnam casting sector.

5.2. Policies:

Projects on producing the casting products in service for projects investing in production of key mechanical products shall be prioritized to consider, apply incentive policies in according to the Decision No. 10/2009/QD-TTg, of January 16, 2009 of the Prime Minister on mechanisms to assist development of key mechanical products. Projects on production of casting products being subjects of application of the Decision No. 12/2011/QD-TTg, of February 24, 2011 of the Prime Minister on policy to develop some the support industries and the Decision No. 1483/QD-TTg, of August 26, 2011 of the Prime Minister, on promulgating list of the supporting industrial products that prioritized for development shall be considered, enjoyed incentive and preferential policies promulgated together with this Decision and relevant current incentive policies.

Article 2. Organization for implementation

1. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with relevant ministries, branches and People’s Committees of central-affiliated cities and provinces in announcement of the master plan and direction to guide implementation of the master plan.

2. Ministries of: Planning and Investment, Finance, Construction, Defense, Science and Technology, Health, Education and Training, etc, under their function, shall coordinate with the Ministry of Industry and Trade to concretize policies, solutions stated in this Decision.

3. People’s Committees of central-affiliated cities and provinces, on the basis of the approved master plans, shall coordinate, facilitate for projects, programs on the casting sector development to be implemented synchronously and in conformity with the plan on industrial development and the local master plans on socio-economic development;

4. The relevant professional associations shall coordinate with ministries, branches in propagation, guidance for member enterprises to have orientation and plan on production and business development in conformity with the master plan.

Article 3. This Decision takes effect on the day of signing.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities and provinces and relevant agencies shall implement this Decision.

ANNEX

A FEW OF PROJECTS PRIORITIZED FOR INVESTMENT IN NEXT YEARS
(Enclosed with the Decision No. 583/QD-BCT, of February 13, 2012)