Quyết định 4665/QD-BCT

DECISION

ON APPROVAL FOR “THE MASTER PLAN FOR DEVELOPING MANUFACTURE OF VIETNAMESE RUBBER PRODUCTS BY 2025 AND THE ORIENTATION TOWARDS 2035"

MINISTER OF INDUSTRY AND TRADE

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

Pursuant to the Government’s Decree No. 92/2006/ND-CP dated November 07, 2006 on formulating, approving and managing the master plan for socio-economic development and the Government’s Decree No. 04/2008/ND-CP dated January 11, 2008 on amendments to certain articles of the Decree No. 92/2006/ND-CP;

Pursuant to the Decision No. 1621/QD-TTg dated September 18, 2013 on approving the master plan for developing the chemical industry of Vietnam by 2020 and the orientation towards 2030;

At the request of the Director of Vietnam Chemicals Agency,

HEREBY DECIDES THAT:

Article 1. The master plan for developing manufacture of Vietnamese rubber products by 2025 and the orientation towards 2035 (hereinafter referred to as “the master plan”) is approved with the following contents:

1. Viewpoints

a) Develop the manufacture of rubber products by mobilizing all domestic and foreign resources, intensify and use effectively domestic materials, maximize development advantages and potentialities and ensure the feasibility and sustainable development.

b) Focus on the investment in certain rubber products having competitive advantages, concurrently, gradually develop high-quality products, hi-tech products and bio-products and take the competitive advantages when Vietnam is a signatory to international trade agreements.

2. Objectives

a) General objectives

Create and use resources for developing the manufacture of Vietnamese rubber products, meet domestic demand, reduce the import and increase the export thereof.

b) Specific objectives

- The average growth rate of industrial production value of rubber products is expected to be from 14% to 15% in the 2015-2020 period, 15 % in the 2021-2025 period and 12% in the 2026-2035 period;

- The average growth rate of value added of rubber products is expected to be 15.4% in the 2015-2020 period, 15.4% in the 2021-2025 period and 12% in the 2026-2035 period;

- Rate of industrial production value of rubber products in the chemical industry production is expected to be 23% in 2020, 23.5% in 2025 and 24% in 2035;

- The export turnover of rubber products is expected to be 750 million USD by 2020, 1 billion USD in 2025 with the average growth rate of 7.2 % per year and to be 2 billion USD in 2035;

- By 2020, it is expected that most producers of rubber products in need of rubber materials will be able to use domestic materials for manufacture.

3. Orientations

Apply advanced and modern technologies to new technology lines, utilize domestic materials and competitive advantages, create high-quality products and increase the export thereof.

4. The master plan for developing manufacture of Vietnamese rubber products by 2025 and the orientation towards 2035

4.1. The master plan by 2025

a) By 2020

Besides some projects of the previous period, propose the execution of certain projects for manufacture of rubber products. To be specific:

- Invest in expansion and improvement of the quality, innovation of technologies and equipment of domestic factories manufacturing rubber products, focus on improving the quality of motorcycle tires with tubes and tubeless motorcycle tires, enhance the manufacture of butyl rubber (IIR) rubes for motor vehicles and motorcycles to meet domestic demand;

- Expand factories of radial tires used for passenger cars and small trucks that are located in Dinh Vu industrial zone, increase the total capacity to 49,000 tires per day and the orientation towards export of all products;

- Expand and increase the capacity of factories manufacturing radial tires used for passenger cars and small trucks located in Binh Duong province to 6.3 million tires per year for export and domestic consumption from 5 to 10% of the production; expand and increase the capacity of factories manufacturing radial tires located in Da Nang province to 1.2-1.8 million tires per year;

- Invest in construction of factories manufacturing semi-steel radial tires used for passenger cars located in Binh Duong province with the capacity of 4 million tires per year to meet domestic consumption and export from 30 to 40% of the production. Invest in construction of factories manufacturing radial tires used for passenger cars in the Central Vietnam for exporting 50% of the production and selling the remaining production in domestic market; invest in construction of factories manufacturing radial tires used for trucks located in the Northern Vietnam with the capacity of 300,000 tires per year;

- To facilitate development of the automotive industry in Vietnam from 2015 to 2020, construct a factory manufacturing technical rubber products with the capacity of 1 million products per year in the Northern Vietnam according to the plan for constructing or adding the production line to the existing factory for utilizing the existing equipment of the factory. Key products are gaskets, seals, washers, details, accessories for new assembly and replacement serving the automotive and motorbike industry;

- Invest in construction of factories manufacturing steel tire beads and steel ropes with the capacity of 10,000 products per day in the Central or Southern Vietnam;

- Invest in construction of factories manufacturing coal with the capacity of 115,000 tons per year in the Northern Vietnam serving producers of rubber products in Vietnam.

b) From 2021 to 2025

- Construct factories manufacturing conveyor belts and driving belts with the capacity of 500,000 m² of conveyor belts and 1,000,000 meters of driving belts per year, using advanced technologies and equipment combined with nylon, steel and synthetic rubber in the Central Vietnam to meet domestic demand;

- Expand and increase the capacity of factories manufacturing radial tires for motor vehicles in the Northern Vietnam to 600,000 tires per year.

4.2. The orientation towards 2035

- Formulate a plan for constructing factories manufacturing radial tires for motor vehicles with the capacity from 12 to 15 million tires per year in Southern Vietnam to meet the domestic demand of 24 million tires per year by 2035;

- Formulate a plan for constructing factories manufacturing conveyor belts and steel driving belts with steel cores with the capacity of 1,000,000 m² of conveyor belts per year and 2,000,000 meters of driving belts per year using advanced technologies and equipment, combined with nylon, steel and synthetic rubber in Southern Vietnam.

The list of investment projects included in the master plan is specified in Appendix of this Decision.

5. Measures for and policies on implementing the master plan

5.1. Measures for developing scientific and technological potential

- Intensify development studies, research into new products and application of new technologies to manufacture of technical rubber products, especially hi-tech products;

- Provide assistance in developing certain science and technology enterprises involved in research into and application of manufacture of rubber products and eligible for manufacturing hi-tech products, bio-products and build a brand name on the domestic market and in the world;

- Establish a center for research into rubber technology which is in charge of technological development, testing and improvement of quality and diversification of rubber products to promote the production and minimize the dependence on foreign technologies and techniques.

5.2. Measures for developing and ensuring human resources

- Provide intensive training for and improve the capability of researchers in specialized research institutes, departments in charge of technology and management of enterprises involved in manufacturing rubber products;

- Intensify the training in rubber majors in universities, colleges and vocational schools; innovate the training methods towards modernity and practicality;

- Promote international cooperation in providing training for employees in executing the project on manufacturing rubber products. Encourage foreign invested enterprises to provide assistance in training in human resources.

5.3. Measures for improving capacity of the quality management system

- Review and complete a system of regulations and standards applied to Vietnamese rubber products, firstly standards for tires, tubes, conveyor belts, driving belts and other rubber products according to regional and international regulations and standards to increase the effectiveness of quality management of rubber products, concurrently create technical barriers to commercial frauds aiming to create fair competition between domestic products and imports;

- Upgrade a system for assessing quality of rubber products of quality testing authorities;

- Complete a system for managing quality of preliminarily-processed natural rubber in Vietnam in order that every batch and shipment of domestic rubber will have a certificate of quality. Assist private enterprises in enhancing quality of rubber materials to satisfy national and international standards through programs for encouraging agriculture and industry.

5.4. Market measures

- Intensify investment in investigation, forecast of and research into the market to have sufficient, accurate and timely information on the market serving business and production;

- Intensify the export promotion, including all traditional markets and potential markets, especially focus on consumption demand and features of these markets, create the basis for the promotion of comparative and competitive advantages when Vietnam is a signatory to international trade agreements. Actively participate in programs for domestic and foreign trade promotion;

- Enterprises should formulate their own programs and strategies for developing brand names of their products and have long-term strategies for maintaining and developing their market shares and enhancing their products' quality, constantly innovate product designs, diversify products, strengthen and develop the product consumption system.

5.5. Investment measures

- Mobilize all resources for and facilitate the attraction of domestic and foreign investments from multiple economic components;

- Encourage enterprises to expand their production in combination with innovation of technology and equipment and take energy-saving measures. Prioritize the investment in producing materials for manufacturing rubber products used in high-tech areas.

- New investment projects and expansion projects shall have their investment policies and domestic market shares approved by the Ministry of Industry and Trade.

5.6. Measures for environmental safety

- Prioritize projects on applying new technologies that are eco-friendly, reduce waste production, save energy and improve effectiveness of materials and recycle wastes produced;

- Accelerate relocation of factories manufacturing rubber products to industrial zones and industrial clusters for centralized management and reducing environmental pollution;

- Make the best use of components that can be recovered from wastes to reduce wastes and consumption of natural resources. Only treat or bury wastes if they cannot be reused. Develop technologies for waste recycling. Formulate measures and plans for recovery of used products to recycle them or take suitable measures for reducing bad affects on the environment;

- Carry out the assessment of chemical hazards and formulate a plan for preventing and responding to chemical emergencies, keep close control of chemicals that are noxious at factories manufacturing rubber products in accordance with applicable regulations.  

5.7. Measures related to policies

a) Policies on investment promotion

Publish the list of projects to be invested in certain periods in order that investors choose suitable investment plans.

b) Financial policies

Introduce policies on providing assistance with science and technology activities, establishment of new enterprises, market access and development of new markets.

c) Tax policies

- Introduce policies on tax priority and incentives for producers of technical rubber products;

- Consider decreasing import duty rates imposed on input materials serving manufacture of tube valves, vulcanized rubber membranes and other domestic products that are used as materials for manufacturing rubber products and cannot be used for other purposes.

Article 2. Implementation

1. The Ministry of Industry and Trade shall take charge and cooperate with relevant ministries and People’s Committees of provinces in announcing the master plan and provide directions on implementing the master plan. To be specific:

a) Regularly inspect and monitor the implementation of the master plan, supervise the fulfillment of investment conditions and state administration regarding projects under it management.

b) Closely cooperate with Vietnam National Chemical Group, Vietnam Rubber Group, Vietnam Rubber Association and relevant organizations in providing directions on adjusting investment structures in conformity with regions and orientation.

2. The Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Science and Technology, Ministry of Transport, Ministry of National Defense, Ministry of Justice and relevant Ministries shall cooperate with the Ministry of Industry and Trade in concretizing measures and policies specified in the master plan.

3. People’s Committees of provinces shall cooperate with the Ministry of Industry and Trade in implementing the master plan in conformity with relevant local plans. Get the written permission of the Ministry of Industry and Trade before licensing the investment in new projects, projects on expanding manufacture of rubber products and changing rates of domestic consumption and export.

4. Associations shall intensify the cooperation between enterprises and cooperate with the Ministry of Industry and Trade in proposing policies on developing manufacture of Vietnamese rubber products.

Article 3. This decision comes into force from the day on which it is signed.

Article 4. Ministers, heads of ministerial agencies and governmental agencies, Chairmen/Chairwomen of People’s Committees of provinces and relevant organizations and individuals are responsible for implementing this Decision.

APPENDIX

LIST OF INVESTMENT PROJECTS INCLUDED IN THE MASTER PLAN FOR DEVELOPING MANUFACTURE OF VIETNAMESE RUBBER PRODUCTS BY 2025 AND THE ORIENTATION TOWARDS 2035
(issued together with the Decision No. 4665/QD-BCT dated May 14, 2015 of Minister of Industry and Trade)

(*) Scale, investments and location of the project shall be calculated, chosen and determined when the project is planned and approved in conformity with reality.

(**) Projects are not included in the master plan for developing the chemical industry of Vietnam by 2020 and the orientation towards 2030;