Decision 1731/QD-BCT in 2012 approving the development planning of the construction equipment manufacturing industry for the period 2009-2020, with a vision to 2025 issued by the Minister of Industry and Trade

DECISION

APPROVING THE MASTER PLAN ON DEVELOPMENT OF CONSTRUCTION EQUIPMENT PRODUCTION 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 December 26, 2002 of the Prime Minister approving Strategy of Vietnam mechanical sector development by 2010, with a viewpoint till 2020;

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

Pursuant to the Decision No. 1063/QD-BCT, of March 02, 2009 of the Minister of Industry and Trade, on approving scheme, estimation of project on planning to develop construction equipment production sector during 2009-2020, with consideration till 2025;

At the proposal of Director General of Heavy Industry Department,

DECIDES:

Article 1. To approve the master plan on development of construction equipment production sector during 2009-2020, with consideration till 2025:

1. The development viewpoint

a) Developing the construction equipment production sector in positive serve for infrastructure construction of nation;

b) Developing the construction equipment production sector in conformity with Strategy to develop Vietnam mechanical sector by 2010, with vision till 2020, have been approved by the Prime Minister at the Decision No. 186/2002/QD-TTg, of December 26, 2002;

c) Developing the construction equipment production sector firmly, stably and friendly with environment;

d) Developing the construction equipment production sector for task of socio-economic development of nation and in service for defense.

2. Development objectives

2.1. General objectives

- Striving till 2020, Vietnam may self-produce some types of construction equipment reached regional advanced qualification. Step by step enhancing the competition ability on international and regional market. Exploiting well comparison advantages, increasing gradually added value for products manufactured in home country.

- Enhancing production of accessories of construction machine vehicles (especially accessories, machines in synchronous line for building materials production) in order to take initiative in servicing for domestic demand and replacing import.

2.2. Specific objectives

a) Period by 2020:

- For group of construction machine: Meeting about 80% of demand of lifting equipment of bridge type, 20% of demand of construction equipment and 40% of demand of accessory;

- For group of equipment producing building materials: Meeting about 70% of equipment demand and 90% of accessory demand.

b) Period of 2020-2025:

- For group of construction machines: Meeting about 90% of demand of lifting equipment of bridge type, 30% of demand of construction equipment and 50% of accessory demand;

- For group of equipment producing building materials: meeting about 80% of equipment demand and 80% of accessory demand.

3. Development orientation

- Applying the advance technology in investment projects on construction equipment production in order to manufacture products with suitable quality and price aiming to service maximally demand of domestic market of construction equipment, including demand of defense industry;

- Researching, manufacturing products with high added value which Vietnam has ability to seize control of design, manufacture technology in order to gradually go to export.

4. The master plan on development of construction equipment production sector

4.1. Key products

a) Group of construction machines:

- The lifting machine: the cranes of bridge type, tower cranes, machines for loading and unloading at harbor;

- Construction machines: Self-operating cranes, earthwork machines, road-making machines, machines in service for concreting;

- Accessories of construction machines.

b) Group of equipments for production of building materials:

- Equipment of cement, equipment for production of building materials, equipment for production of industry rocks, equipment for production of ceramic bricks;

- Accessories of equipment for production of building materials.

4.2. Development plan:

Till 2020:

a) Group of construction machines: Meeting 80% of demand of crane of bridge type, tower crane, 20% of demand of machines for loading and unloading at harbor; meeting 20% of demand of self-operating cranes, earthwork machines and road-making machines, 70% of demand of machines in service for concreting; meeting 40% of demand of accessories for building machines.

b) Group of equipment for production of building materials: Meeting 70% of demand of cement equipment, 80% of demand of equipment for production of building materials, 70% demand of equipment for production of industrial rocks, 60% of demand of equipment for production of ceramic bricks; meeting 80% demand of accessories of equipment for production of building materials.

Till 2025:

a) Group of construction machines: Meeting 90% of demand of cranes of bridge type, tower cranes, 30% of demand of machines for loading and unloading at harbor; meeting 30% of demand of self-operating cranes, earthwork machines and road-making machines; 80% of demand of machines in service for concreting; meeting 50% of demand of accessories of construction machines.

b) Group of equipment for production of building materials: Meeting 80% of demand of equipment for cement, 90% of demand of equipment for production of building materials, 80% of demand of equipment for production of industrial rocks, 70% of demand of equipment for production of ceramic bricks; meeting 90% of demand of accessories of equipment for production of building materials.

4.3. Synthesis of investment capital

Synthesis of investment capital till 2020 is estimated about 355 million USD, including 345 million USD for new investment, 10 million USD for additional investment.

4.4. Source of capital mobilization

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

5. Solutions, policies

5.1. Solutions

a) Regarding market

- To continuously update and announce list of construction equipment which are produced in home country to do as basis for construction of technical barriers in order to restrain import of construction equipment which have been produced in home country;

- To support and facilitate to approve programs on commercial promotion for domestic enterprises that produce construction equipment to participate in search of export market.

b) Regarding investment

- To concentrate on construction of projects investing on building materials production which use high technologies, technologies friendly with environment, technologies spending little environmental materials, create products with high quality and competitive price;

- Projects on production of construction equipment, that use capital of state, are considered to apply form of domestic appointment or bidding as prescribed by current law;

- To push up performance of projects on production of construction equipment of priority industry, spearhead industry.

c) Regarding science research and technology transfer

- To support units having ability in construction equipment production (especially group of construction machines) in participation in programs of national products;

- To formulate programs on science research under system, with roadmap in order to produce the advanced construction equipment. Especially attach importance to strengthen the research and development (R & D) ability;

- To support expenditure to buy sample design, technology transfer at first times for advanced technological equipment by capital source from the State budget under current provisions;

d) Regarding development of human resource

- To support expenditure to train human resource for construction equipment production by capital source from budget under current provision;

- To prioritize selection and sending science officers, management officers in sector of construction equipment to development countries for training;

- To renew in vocational training. To upgrade for establishments training human resource for construction equipment production sector.

dd) Regarding Finance

To support through tax policies in conformity with regulations of WTO and commitments with international of Vietnam. To apply flexible calculating-tax methods, use effectively tax to fight dumping and antagonistic tax aiming to protect domestic production, in conformity with WTO commitments and provisions of current law.

e) Other solutions

To strengthen role of trade associations in order to reinforce linkage relations among enterprises in construction equipment production, enhance competitive ability and exchange of information regarding market, technology and investment.

5.2. Policies:

- Projects producing construction equipment in list of projects on manufacture of key mechanical products, construction machines and equipment in list of key mechanical products promulgated together with the Decision No.10/2009/QD-TTg, of January 16, 2009 of the Prime Minister on mechanism to support for development of key mechanical products are prioritized to consider, apply incentive policies in according to this Decision;

- Projects on production of components, accessories for construction machines and equipment, being subject to apply the Decision No.12/2011/QD-TTg, of February 24, 2011 of the Prime Minister on policy to develop a few of support industries and the Decision No. 1483/QD-TTg, of August 26, 2011 of the Prime Minister on promulgating the list of the supporting industrial products prioritized for development are considered to enjoy incentive and preferential policies which are 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 Committee of central-affiliated cities and provinces announce the master plan and direct implementation of the master plan.

2. Ministries of: Planning and Investment, Finance, Construction, Defense, Science and Technology, Education and Training, … under their functions 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 plan, shall coordinate, facilitate for projects, programs on development of construction equipment production to be implemented synchronously and in conformity with the master plan on industrial development and the overall plans on local socio-economic development;

4. The relevant trade associations shall coordinate with Ministries, branches to organize propagation and 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

LIST OF INVESTMENT PROJECTS
(Together with the Decision No. 1731/QD-BCT,of April 09, 2012)

1. List of new investments in construction equipment production till 2015:

2. The additional investment projects till 2020:

3. List of the inheriting projects “The master plan on development of industry manufacturing synchronous equipment during 2008-2015, with consideration till 2025” (*)

(*): In according to the Decision No.2888/QD-BCT, of June 08, 2009, of the Minister of Industry and Trade, approving the master plan on development of the industry manufacturing synchronous equipment during 2008-2015, with consideration till 2025.

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