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By 2030, the average growth rate of the chemical industry will reach 10 - 11%/year
On June 16, 2022, the Prime Minister issues the Decision No. 726/QD-TTg approving the Strategy on Vietnam's chemical industry development through 2030, with a vision toward 2040.
Specifically, to strive that the average growth rate of the chemical industry will reach 10 - 11 % per year and the proportion of the chemical industry will account for around 4 - 5% of the whole industry by 2030; the average growth rate of the chemical industry will reach 7 - 8% per year and the proportion of the chemical industry will maintain around 4 - 5% of the whole industry by 2040.
By 2030, to maintain the level to meet domestic demand for fertilizers such as urea, phosphorus, NPK, crop protection products, tires, industrial gases, common paint - printing ink, detergents, common batteries, and develop the export markets. To strive that the average export growth rate will reach 9-11% per year during 2021 - 2030, and the average growth will reach 7.5 - 9% per year during 2030 - 2040.
For the achievement of the above objectives, the Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with ministries, branches, People’s Committees of provinces and centrally-run cities, and relevant agencies, in organizing the implementation of the Strategy; inspecting and evaluating the implementation of the Strategy and periodically reporting to the Prime Minister; formulating a scheme on investment promotion for constructing infrastructure of concentrated chemical industrial parks and investment projects in concentrated chemical industrial parks, and report it to the Prime Minister for approval; etc.
This Decision takes effect from the signing date.
No. 726/QD-TTg THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Hanoi, June 16, 2022
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Approving the Strategy on Vietnam's chemical industry development through 2030, with a vision toward 2040
Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;
Pursuant to the Law on Chemicals dated November 21, 2007;
Pursuant to the Strategy on Vietnam’s Industrial Development through 2025, with a vision toward 2035;
Pursuant to the Political Bureau’s Resolution No. 23-NQ/TW dated March 22, 2018, on the orientations for formulating national industrial development policies through 2030, with a vision toward 2045;
Pursuant to the Government’s Resolution No. 124/NQ-CP dated September 3, 2020, promulgating the Government’s Action Plan to implement the Political Bureau’s Resolution No. 23-NQ/TW dated March 22, 2018, on the orientations for formulating national industrial development policies through 2030, with a vision toward 2045;
At the proposal of the Minister of Industry and Trade.
Article 1. To approve the Strategy for Vietnam's chemical industry development through 2030, with a vision toward 2040, with the following principal contents:
a) To strictly follow the Directives and Resolutions of the Party, socio-economic development strategy and industrial development strategy to build the chemical industry as one of the fundamental industries, making a significant contribution to the cause of industrialization and modernization of the country, contributing to ensuring security and national defense.
b) To restructure for increasing added value of products to improve productivity, quality, efficiency and competitiveness of the industry; to better meet domestic demand and promote export of products; to take international advantages and opportunities, actively and deeply participate in the domestic and global value chain of industrial production.
c) To fully aware of, respect, and properly apply the objective rules of the market economy, in accordance with the development conditions of the country, develop the chemical industry on the basis of effectively mobilizing resources from all economic sectors; to encourage the development of the private economic sector in order to promote internal resources and build the industry’s autonomy; to develop the industry in combination with strengthening international cooperation to attract foreign investment in terms of capital, technology, management experience and operating model.
d) To develop extensively, rapidly and sustainably the chemical industry in a harmonious manner, apply modern and environment-friendly technologies, adapt to climate change, and effectively use natural resources, towards green growth and circular economy; to apply digital transformation and digital technology to increase the efficiency of production and business activities in the field of chemicals.
dd) The orientations and solutions for the chemical industry development must be implemented thoroughly and drastically with the participation of the whole political system, committees and administrations at all levels, and enterprises of all economic sectors; be associated with strategic priorities and key issues, suitable to the specific conditions of each region and locality to focus resources to ensure the substantive and effective implementation; be associated with the responsibilities of authorities at all levels in fulfilling the tasks and set goals.
- To develop the chemical industry with a relatively complete structure, including the manufacture of production and consumption materials, serving various industries; to better meet domestic demand and boost up export activities; to prioritize the development of a number of key sub-sectors such as base chemicals, petrochemistry, technical rubber, pharmaceutical chemistry, fertilizers, etc.
- To form a value chain, deeply participate in the domestic and regional production network of the industry. To use resources in an appropriate and thrifty manner; to apply modern technology, digital economy and digital transformation to boost added value, improve the competitiveness of the industry, promote capital accumulation of economic corporations operating in the chemical field.
- To rationally distribute production forces by industry and territory, establish and effectively promote concentrated industrial zones and clusters, and large-scale chemical production complexes.
Vietnam’s chemical industry will develop with a majority of sub-sectors having advanced technology and product quality up to international standards, deeply participate in the global value chain, use energy thriftily and efficiently and compete on an equal footing in international integration; its workforce will be professional and disciplined, work with high productivity; be proactive in the stages of research, design and manufacture, master the production technology of a number of high-quality products; promote internal resources, contributing to developing an independent and self-reliant Vietnamese economy.
- To strive that the average growth rate of the chemical industry will reach 10 - 11 % per year and the proportion of the chemical industry will account for around 4 - 5% of the whole industry by 2030; the average growth rate of the chemical industry will reach 7 - 8% per year and the proportion of the chemical industry will maintain around 4 - 5% of the whole industry by 2040.
The product group of petrochemistry, pharmaceutical chemistry, technical rubber, and base chemicals will reach 10 - 12% per year during 2021 - 2030 and 8 - 11% per year during 2031 - 2040
The product group of fertilizers, crop protection chemicals, chemical power products, detergents, industrial gases, tire products and paint - printing ink will reach 3 - 5% per year during 2021 - 2030 and 4 - 6% per year on average during 2031 -2040.
- By 2030, to maintain the level to meet domestic demand for fertilizers such as urea, phosphorus, NPK, crop protection products, tires, industrial gases, common paint - printing ink, detergents, common batteries, and develop the export markets. To partially meet the domestic demand for ammonium sulfate fertilizer products. To increase the average capacity of meeting the domestic demand for petrochemical products, crop protection chemicals, base chemicals, technical rubber, and accumulators by 40%, 30%, 70%, 40% and 75%, respectively.
By 2040, to partially meet the domestic demand for basic organic chemical products, special paints, high-tech batteries and accumulators. To increase the average capacity of meeting the domestic demand for petrochemical products, crop protection chemicals, base chemicals, technical rubber, and accumulators by 60%, 50%, 80%, 50% and 80%, respectively.
- To strive that the average export growth rate will reach 9-11% per year during 2021 - 2030, and the average growth will reach 7.5 - 9% per year during 2030 - 2040.
To balance the trade balance in the period of 2021 - 2030, maintain a sustainable trade surplus during 2030 - 2040; to head towards a trade balance with wholesome and proper partners, thereby ensuring the sustainable growth in the long term.
To develop Vietnam's chemical industry in the direction of being a fundamental and modern industry with a relatively complete structure of 10 sub-sectors, including fertilizers, crop protection chemicals, pharmaceutical chemistry, petrochemicals, and base chemicals (including explosive precursors and industrial explosives), rubber products, electrochemicals, detergents, paint - printing ink, industrial gases. To attach importance to the development strategy of a number of key sub-sectors, including base chemicals, petrochemicals, technical rubber, pharmaceutical chemistry and fertilizers.
To rearrange existing production facilities towards concentration and scale. To maintain and develop production factories with advanced technology. To minimize the formation of, and gradually eliminate small production facilities that have outdated technology, low resource use efficiency, poor product quality, causing environmental pollution, etc.
To promote innovation and reorganization, and improve business efficiency of state-owned enterprises in the chemical industry, improve the efficiency of using state capital in state-owned enterprises, deal with scattered and inefficient investment. The State only holds controlling shares in enterprises operating in basic key areas such as infrastructure of chemical industrial parks or chemical business zones, priority chemical sub-sectors with large investment capital, or sub-sectors associated with national defense and security. To encourage private investment in the chemical sector, make the most of the internal resources of social investment, and develop domestic private enterprises as important driving forces for the development of the chemical industry. To strongly shift the FDI attracting policy in the chemical industry from quantity to quality and towards the more focusing direction, encourage FDI projects to invest in priority fields and products, projects using advanced, modern and environment-friendly technologies, and projects with high socio-economic efficiency.
To develop the chemical industry in the direction that is concentrated, suitable to the advantages of each region and each locality, not evenly distributed along administrative boundaries, ensuring requirements for environmental protection, and national defense and security. To establish and effectively promote concentrated industrial zones and clusters, large-scale chemical complexes to attract chemical production projects, projects using chemicals for production in various fields, chemical logistics centers at locations that have large enough land fund or that are far from residential areas, near deep-water ports, convenient for traffic connections, encourage circular technologies, use products and wastes of factories as raw materials for other ones. To gradually relocate and concentrate chemical factories into industrial zones and clusters for centralized management, prevent hazardous chemical facilities from failing to ensure a safe distance, or failing to meet standards and technical regulations standards on safety, environment and fire prevention and fighting in residential areas and crowded places.
- With regard to base chemicals
To invest in, expand, modernize and increase the commercial production capacity of caustic soda and sulfuric acid of existing production facilities. To invest in projects to produce caustic soda and chlorine-based products to meet the demand for caustic soda-chlorine for refining and petrochemical projects, alumina mining and processing projects, etc.
To invest in research on technology for sorting grade-II and grade-IV apatite ores. To improve technology of yellow phosphorus production facilities, ensuring improved production efficiency and safety.
To invest in the production of thermal phosphoric acid and its derivatives, products with high economic value from phosphorus; to invest in ammonia production to meet the demand for DAP production and other consumers; production of nitrate salts, basic organic chemical products, solvents, etc.
To maintain the stable production of ammonium nitrate, invest in the production of a number of other explosive precursors, which are dual-use chemicals to meet the needs of other industrial production and fertilizers. To research and invest in the production of explosives and explosive accessories for the oil and gas industry. To continue promoting investment in the production of explosives in bulk emulsions and emulsion packages, completely replacing explosives containing TNT.
To develop industrial explosives products in the direction of increasing destructive power, reducing smoke and dust, increasing water resistance, having high safety and non-standard sizes; to develop industrial explosive accessories products up to special requirements such as multiple differentials, tensile strength, impact strength, reliability when the mining pits are getting deeper and the terrain is complicated.
To invest in production projects of basic organic chemicals such as organic solvents, chemicals used in the production of petrochemical products, and chemicals that may serve as fuels for other industries, etc.
To invest in production projects of inorganic chemicals to serve the development needs of industries such as washing powder, glass, paper, etc., such as production of sulphate salts, soda, hydrogen peroxide, etc.
To develop emulsion explosive products used for open-air and underground mines, underground works without explosive gas; loose emulsion explosives, electronic detonators, non-electric differential detonators, high-energy detonators for underground mines, underground works without explosive gas; slow detonation non-electric differential, etc.
To invest in the production of ammonia, methanol, ethylene, propylene, benzene, xylene, toluene, etc. and a number of preparations and derivatives from these chemicals, towards meeting the domestic and export demand, limiting the export of raw materials, etc.
To invest in deep processing of products from existing petrochemical/gasification (from natural gas) factories and complexes in order to increase the added value of natural resources and diversify products to meet the domestic and export demand.
To invest in the production of primary plastic resins, glues, and synthetic rubber raw materials: polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), acrylonitrile butadiene styrene (ABS), terephthalic acid (PTA), monoethylene glycol (MEG), urea formaldehyde (UF), melamine formaldehyde (MF), polyamide 6, etc. and several other chemicals, additives, semi-finished products, etc. for the domestic manufacturing industry and high-tech industry.
To prioritize the establishment of petrochemical industry complexes associated with domestic oil refineries and processing factories.
To maintain a safe, stable and efficient operation of projects that have been put into operation; to continue diversifying petrochemical products, researching and investing in the production of aromatics-based products (NB, LAB, PTA, PET, etc.).
To research and invest in petrochemical projects from alternative raw materials such as biomass, blue hydrogen, blue hydrogen, etc., rather than from traditional fossil fuel sources.
- With regard to technical rubber
To focus on developing a group of technical rubber products such as conveyor belts, belts, gaskets, seals and technical rubber accessories for other industries. To invest in building a factory producing technical rubber products by 2 options: building a new factory or adding production lines in an existing tire factory in order to take advantage of its available equipment, in which the main products are gaskets, seals, washers, new and replacement parts and components for the automobile and motorcycle manufacturing industry.
To encourage investment in the production of raw materials and additives for the production of rubber products such as black coal, silica, etc.
To research and invest in building specialized technical rubber factories with advanced technology and equipment; or in synthetic rubber production.
- With regard to pharmaceutical chemistry
To build a medicinal region with strengths of Vietnam, invest in processing, extraction and refining factories to produce pharmaceutical chemicals of natural origin from tropical animals, plants, marine and semi-synthetic organisms.
To focus on investment and development in the production of antibiotic products and raw materials for manufacturing essential medicines with advantages in resources, such as products extracted from medicinal herbs and semi-synthesized from natural compounds; factories producing inorganic pharmaceutical chemicals and common excipients; factories producing raw materials for the 2nd, 3rd and 4th generation cephalosporin antibiotics; factories producing sorbitol for the production of vitamin C; factories producing pharmaceutical materials for the production of a number of other essential drugs (including products such as fever reducers, pain relievers, anti-inflammatory drugs, antibacterial drugs).
To encourage all economic sectors, especially non-state production organizations to participate in the development of medicinal herb cultivation and processing, attach importance to developing the form of small and medium enterprises in the production and processing of pharmaceutical products. The State actively invests in the production of active ingredients and excipients that need high technology and are in great demand, essential for public health and safety, such as new generation vaccines and antibiotics; to encourage foreign investors to invest in production in these important fields. To encourage technology transfer, joint venture and association of foreign investors with domestic investors to produce raw materials and products in the field of pharmaceutical chemistry.
To invest in research and production of new products and make in-depth investment in improving product quality.
To balance the commercial ammonia/urea ratio of urea fertilizer factories in line with the market demand; to gradually shift the production of single superphosphate fertilizers to the production of double superphosphate; to encourage the production of complex fertilizers, rearrange existing compound fertilizer production facilities towards concentration and scale, maintain and develop fertilizer factories with advanced technology, step by step eliminate small production facilities that have outdated technology and poor product quality, etc.
To research and invest in factories producing ammonium sulphate, potassium fertilizers, and calcium ammonium nitrate fertilizers in order to meet the demand for fertilizers of all kinds for agricultural production, aiming for export.
To invest in research to improve the use efficiency of existing fertilizers to increase the use value and high added value of single fertilizers, mixed fertilizers of macro, intermediate and trace amounts; fertilizers containing growth regulators, substances that increase plant immunity, fertilizers with soil improvement effects, suitable for many crops with high economic value and different soil characteristics.
- With regard to other fields
+ With regard to crop protection chemicals:
To invest in the production of a number of active ingredients that are effective in pest control and environment-friendly, such as carbamate-based active ingredients, azole active ingredients and derivatives, active ingredients of pyrethroids and validamycin.
To make in-depth investment in crop protection chemical production and processing facilities, apply advanced technology, replace toxic organic chemicals and solvents; to develop new active ingredients from microorganisms and active ingredients extracted from plants, create products that are easy-to-use, degradable, and environment-friendly; to develop new processed products that are appropriately distributed in the North, Central and South regions to reduce the cost of transporting raw materials and finished products, and suitable to the characteristics of crops, climate and soil.
+ With regard to paint – printing ink:
To focus on investing in expanding and modernizing existing paint and printing ink facilities, apply new technologies, improve product quality, and gradually eliminate production facilities using outdated technologies; to expand and increase the capacity of factories producing raw materials (alkyd resins, acrylic resins, pigments, etc.) for the paint - printing ink industry; to build a number of projects on the production of raw materials for the paint - ink industry, focusing on plastic materials, fillers, solvents such as acrylic, epoxy, polyurethane, and filler powders with specialized and high-class properties. such as kaolin, CaCO3, SiO2, etc.
To invest in the production of paints with high use value such as UV/EB paint, nano paint, water-based paint, powder paint, high solid content paint, smart paint; to manufacture high-value, environment-friendly printing inks such as water-based products, replace or eliminate toluene, MEK solvents with alcohol, etc.
To modernize existing technological lines to meet the demand for quantity and quality of products for the domestic market and boost up export activities. To develop new detergent products and cosmetic products using ingredients and active ingredients of natural origin, which are environment-friendly, safe for users and have high economic value.
To attract investment capital to produce high-grade products requiring high technologies and large investment capital, including manufacturing all kinds of raw materials.
To develop strong enough policies to encourage and support domestic enterprises to invest and penetrate the market with their own brands.
+ With regard to industrial gas:
To invest in renewing technology and modern and safe equipment for processing to meet the domestic demand for common industrial gases; to invest in the production of high-value rare gases such as Xe, Kr, etc., special gases (high purity gas, semiconductor gas, standard gas and mixed gas), gradually reduce the import rate. To produce hydrogen gas from renewable energy sources.
+ With regard to chemical power source:
To make in-depth investment and improvement of product quality, increase output of common accumulators and batteries.
To invest in manufacturing a number of high-grade specialized accumulators and batteries such as airtight accumulators, solid fuel cells, nickel-hydrogen metal batteries or Li-ion batteries, new generation rechargeable batteries used in high-class electronic devices.
a) Groups of breakthrough solutions
- Establishing concentrated chemical industrial parks and logistics centers:
+ To research and encourage investment in the establishment of chemical complexes, concentrated chemical industrial parks and logistics centers to attract chemical production projects, projects using chemicals for production in other industries; projects at locations that have large enough land fund or that are far from residential areas, near deep-water ports, convenient for traffic connections; to have adequate infrastructure for production and services, ensuring requirements on safety, environment, and sustainable development.
+ To research and propose additional investment projects in infrastructure of concentrated chemical industrial parks and investment projects in chemical industrial parks focusing on the list of industries eligible for investment incentives and building a mechanism special incentives for these projects.
+ To carry out investment promotion activities, call for investment in industrial park infrastructure projects and investment projects in concentrated chemical industrial parks.
- Conducting institutional reform of investment management in the chemical industry
+ To ensure investment incentives for petrochemical, pharmaceutical, base chemicals and rubber projects in accordance with law provisions; to create favorable conditions for priority projects to access tax, land, labor incentives, etc.
+ To amend and supplement regulations on requirements for chemical projects: To ensure conformity with industry development strategies, strategies and development plannings of localities and territories; requirements to ensure chemical safety and environmental protection; requirements on application of advanced technology; rational use of resources, ensuring thrifty and efficient use of energy; to apply green chemistry criteria.
+ To strengthen coordination mechanisms in investment management in the chemical sector. Provincial-level investment policy-approving agencies need to consult the Ministry of Industry and Trade on the suitability of investment projects in the chemical sector with the Sector Development Strategy.
+ To create equality among economic sectors, especially focusing on further enhancing the role of the private economy sector through effectively protecting ownership rights and guaranteeing equality in access to resources.
+ To build a database of investment projects in the chemical field, apply digital technologies to improve the operational efficiency, create competitive advantages in the market and the sustainability of chemical industry operations.
- Innovating mechanisms and policies, promoting reform of administrative procedures to meet development requirements
+ To review, amend, supplement and complete the system of legal documents, support mechanisms and policies in order to create favorable conditions and motivation for the development of the chemical industry in line with the commitment to international economic integration and the socialist-orientated market economy.
+ To intensify administrative reforms, especially administrative procedures, simplify processes and procedures, drastically reduce time and costs in implementing administrative procedures; improve the quality of public administrative services, create all the most favorable conditions for the operation of businesses and people.
+ To propose appropriate mechanisms and policies to attract investment in high-tech projects and technology transfer projects, and propose policies and roadmaps to gradually phase out outdated technologies; propose mechanisms and policies to give preferential treatment to specialized industrial zones and clusters; preferential policies for investment in the construction of concentrated chemical industrial zones and clusters; preferential policies for research and development activities of the chemical industry; policies to support the relocation of chemical factories in residential areas to industrial parks and clusters.
+ To develop and complete the system of national technical regulations in the chemical field.
- Improving the efficiency of investment in production and business in enterprises
+ To implement investment policies with the more focusing direction; to only start construction works and projects that have satisfied all conditions such as ground, investment capital, and human resources for implementation; to call on large and multinational corporations to invest in important projects; to strengthen international cooperation in the development of the chemical industry, especially high-tech applications.
+ To consolidate and enhance the operational role of industry associations, governmental and non-governmental organizations; to strengthen the organization of linkages between domestic enterprises and foreign enterprises to cooperate and participate in the global production value chain.
+ To speed up the process of equitization and restructuring of groups, corporations and state-owned enterprises; to effectively implement approved projects of restructuring groups and corporations to improve the domestic and international operation efficiency and competitiveness. To support enterprises in the process of equitization, organization and arrangement of enterprises, research on suitable organizational forms for enterprises. To diversify investment capital sources, balance and allocate capital.
+ To effectively implement the Law on supporting small- and medium-sized enterprises to improve the production and business efficiency in chemical enterprises.
- Solutions for cooperation and association
+ To strengthen and diversify linkages in production; to invest in upgrading the infrastructure system; to focus on training human resources, and improve the level of management teams.
+ To strengthen the connection between localities in the economic zone, and build infrastructure for the development of the chemical industry.
+ To formulate and implement large-scale inter-regional chemical industry development projects as the key motivation to promote the development of other regions.
- Solutions on trade policies and market development
+ To develop mechanisms and policies to encourage the use of raw materials and semi-finished products that can be domestically produced with good quality and reasonable prices; to restrict the import of intermediate products, products that Vietnam is capable of producing. To formulate mechanisms to reduce input prices for a number of important products, related to food security, security, national defense and public health.
+ To diversify methods and forms of domestic commercial organizations; to effectively organize and operate the systems of supply and distribution of product groups in the market.
+ To adopt policies to connect other manufacturing industries with the chemical industry on the basis of maximizing economic efficiency and reducing costs.
+ To expand market research and trade promotion, in addition to traditional export markets, promote the exploitation of large and potential developing markets.
+ To manufacture products of the chemical industry that meet international technical and environmental standards; to research on designs to timely grasp international trends, create favorable conditions for international trade.
+ To apply achievements of the fourth industrial revolution, e-commerce and digital economy in product development, production and marketing, etc.
+ To strengthen the management of commercial activities and distribution system against counterfeiting goods and commercial fraud.
+ To determine the human resource needs of the chemical sub-sectors to draw up plans to train qualified human resources according to levels to meet the needs of each sub-sector in each period, especially high-quality human resources. To build mechanisms to attract good scientists to contribute to the development of the chemical industry. To develop special mechanisms to attract domestic and foreign high-quality human resources, focusing on salary policies, working environment and housing support, places for spiritual and cultural activities and other conditions for work guaranteeing.
+ To make the most of existing human resources in the direction of rearranging and allocating personnel in the most effective way. To formulate new in-depth human resource plans to ensure inheritance and suitability to maximize creativity in the new business environment.
+ To review and arrange public non-business units in the system of human resource training institutions for the chemical industry (universities, vocational colleges, intermediate schools and other educational and training institutions), promote socialization in training human resources for the industry. To expand the forms of labor cooperation with foreign countries and develop education and training institutions suitable to labor requirements, especially linking with prestigious domestic and foreign educational institutions to open world-class training institutions in Vietnam, focusing on majors serving the development of the knowledge-based economy, especially science, technology and services.
- Solutions on development of science and technology
+ To continue completing the organizational model of scientific and technological research and service agencies in the direction of autonomy and self-responsibility, and strengthen linkages with enterprises. To promote applied research and training activities of chemical research institutes to create quality products, apply science and technology in exploitation and production to improve product quality. To improve capacity for specialized chemical design and consulting units.
+ To renovate and supplement equipment, prevent degradation and upgrade specialized chemical laboratories with modern facilities and equipment to meet research needs, especially in the field of design, manufacture of new products, analysis, inspection, certification of conformity and standardization of products.
+ To accelerate the application of new and modern technologies in order to create technological breakthroughs in production for key, spearhead and priority industries. To increase investment and harmonize between basic research and research and development (R&D), take the initiative in technology research and technology transfer.
+ To intensify and promote intellectual property protection activities for research results; to seek, receive and master new technologies from other countries applied into Vietnam in the chemical industry.
- Focusing on investment in technical infrastructure works
+ To complete infrastructure for the development of the chemical industry in sync with the development of the general infrastructure of the country, especially focus on developing the logistics systems and chemical storage facilities.
+ To strongly develop chemical industry investment consulting services, etc.
+ To adjust tax policies in a timely and reasonable manner in each context.
+ To encourage and create all conditions for all economic sectors to invest in the development of the chemical industry. The State's capital sources for investment support include budget capital, state development investment credit loans, investment capital of state enterprises, ODA loans, domestic and foreign commercial loans, FDI capital, capital mobilized through the issuance of corporate bonds, etc.
+ To concentrate and accumulate financial resources for key projects. To support in capital and financial management so that these projects can quickly promote their post-investment efficiency after completing the investment, and depreciate and repay debts in accordance with regulations.
+ To strictly comply with the provisions of the law on environmental protection; To formulate and promulgate relevant environmental technical regulations in the field of chemical industry to ensure sustainable development and environmental protection. Do not license investment in chemical projects with outdated or used technologies and high resource consumption.
+ To encourage and formulate mechanisms and policies to give incentives and support to chemical industry projects that apply advanced, modern and environment-friendly technologies.
+ To promote propaganda and education to raise awareness about environmental protection combined with socialization of environmental protection.
c) Specific solutions by sub-sectors
- With regard to base chemicals
+ To mobilize capital from joint ventures, associations, and foreign investments in large-scale, high-tech projects and deep processing of raw materials for production. To prioritize enterprises with effective production and business plans to borrow capital for innovation of technologies and application of new science and technology to production.
+ To impose preferential import tax for raw materials that cannot be domestically produced or that are domestically produced but fail to meet the demand; to increase import tax within the allowable range for finished products and products that can be produced domestically.
+ To research on the use of rare earth materials for basic chemical production. To speed up the completion of domestic industrial salt production projects; to invest in technological equipment for industrial salt production to meet the requirements for chemical production such as caustic soda, soda, etc.
+ To invest in mobile explosives production and loading vehicles to increase mechanization and synchronization in the mining sector; to prioritize the use and production of electronic detonators in Vietnam, meet strict requirements on environmental protection, climate, geology and mining digitization; to meet the requirements of the state management on security, safety and social order on the basis of controlling detonated vehicles through separate ID identification codes and management by QR codes.
+ To rationally use natural gas and companion gas raw materials for the development of the petrochemical industry to promote the development of basic organic chemicals through petrochemical projects;
+ To develop and apply mechanisms to encourage the use of gas sources for petrochemical projects in order to increase the added value of such material sources and formulate preferential mechanisms to encourage petrochemical projects from alternative raw materials such as biomass, blue hydrogen, blue hydrogen, etc. rather than from traditional fossil fuel sources.
- With regard to rubber products
+ To create conditions to encourage all economic sectors to participate in the development of rubber products, especially foreign investment with advantages in capital and technology to participate in the production of products requiring high technology and techniques such as synthetic rubber tires for automobiles and motorcycles (butyl rubber), natural rubber and other technical rubber products; to increase the use rate of natural rubber in rubber products.
+ To research on restructuring of preliminarily processed natural rubber products towards a balance among product groups, focus on products with competitive advantages and stable supply of raw materials for the product processing industry domestic and export rubber.
+ To apply measures to strictly control the import of tubes and tires through unofficial channels, control the declaration of import prices, and prevent counterfeit and poor quality goods from being brought into the Vietnamese market.
- With regard to pharmaceutical chemistry
+ To develop mechanisms and policies to support investment in the production of antibiotic and pharmaceutical chemical raw materials for the production of a number of essential drugs, and projects to develop the production of pharmaceutical chemicals from precious domestic natural materials; to propose more open mechanisms in use of the pharmaceutical industry’s products as raw materials for the preparation of medicines.
+ To encourage technology transfer and joint venture between foreign investors and domestic investors to produce raw materials and products in the field of pharmaceutical chemistry.
+ To develop and complete a system of national technical regulations on inorganic fertilizers and classification of superphosphate and NPK fertilizers.
+ To research and propose incentive mechanisms for projects to convert from single superphosphate to double superphosphate; projects to produce potash fertilizers, SA fertilizers and projects to convert and replace raw materials for nitrogen fertilizer production from natural gas.
+ To research and test technologies and processes to treat gypsum residues of DAP factories to ensure requirements for raw materials used for production of building materials and backfilling.
- With regard to crop protection chemicals
+ To impose preferential import tax for raw materials that cannot be produced domestically, such as carbamate-based active ingredients, azole active ingredients and derivatives, pyrethroid or validamycin active ingredients, etc.; to impose preferential import tax for machinery that cannot be produced domestically or that are imported to serve the production of crop protection chemicals.
+ To prioritize the development of chemical projects applying new, low-waste and environment-friendly technologies such as new active ingredients from microorganisms and active substances extracted from plants.
+ To encourage investment in the production of raw materials for the production of crop protection chemicals such as active ingredients, solvents, surfactants (emulsifiers, dispersants, water absorbents, foaming agents, etc.).
- With regard to paint – printing ink
+ To prioritize encouraging non-state economic sectors to invest in product categories such as special paint products with high added value according to advanced and environment-friendly technologies, formulate preferential policies for development of electrostatic powder coating industry, water-based wood paint or wood paint with a mixture of toxic volatile organic compounds (VOC) below 50%.
+ To encourage businesses to formulate plans and strategies to develop product brands and product consumption systems.
+ To prioritize the development of projects applying new technologies, saving energy, producing environment-friendly products, increasing the efficiency of raw materials and reusing wastes generated in the production process.
+ To formulate and implement research projects to develop new detergent products, especially environment-friendly products.
+ To research and propose policies to support domestic enterprises to invest in the production of detergent products and some raw materials.
- With regard to carbon dioxide
+ To prioritize the development of projects applying new, low-waste and environment-friendly technologies, energy-saving solutions, and increase the efficiency of raw materials.
+ To prioritize the development and production of rare gases such as Xe, Kr, etc., special gases, calibration gases to serve high-tech economic sectors; to produce hydrogen gases from renewable energy sources.
- With regard to chemical power source
+ To attract foreign investment in the production of products with high technology requirements, especially accumulators for the localization program of cars and motorcycles, accumulators for telecommunications power stations or for special cars.
+ To continue maintaining the production and development of existing brands, increase and seek more domestic and foreign consumption markets.
+ To propose to promulgate special preferential policies for projects involved in production of high-tech and environment-friendly accumulator products.
1. The Ministry of Industry and Trade shall:
- Assume the prime responsibility for, and coordinate with ministries, branches, People’s Committees of provinces and centrally-run cities, and relevant agencies, in organizing the implementation of the Strategy; inspecting and evaluating the implementation of the Strategy and periodically reporting to the Prime Minister.
- Assume the prime responsibility for, and coordinate with localities, the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, the Ministry of Science and Technology, and the Ministry of Finance, in formulating a scheme on investment promotion for constructing infrastructure of concentrated chemical industrial parks and investment projects in concentrated chemical industrial parks, and report it to the Prime Minister for approval.
- Assume the prime responsibility for, and coordinate with concerned ministries and branches in, reviewing, supplementing, formulating, promulgating or submitting to competent authorities for promulgation of appropriate policies to promote the development of the chemical industry.
- Build a database on investment projects in the chemical field.
- Assume the prime responsibility for, and coordinate with concerned ministries and branches in, reviewing and formulating national standards and national technical regulations on chemicals.
- The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and the Ministry of Finance in, formulating policies to enhance the ability to attract investment in the development of the chemical industry; balancing short-term and long-term investment capital for industrial development. Researching on and proposing amendments to regulations on investment in the direction of adding priority chemical sub-sectors to the objects of investment incentive projects; formulating policies to encourage the development of specialized industrial parks.
- The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned ministries and branches in, researching on and proposing amendments and supplements to financial policies to encourage the development of priority chemical fields in line with the progress of international economic integration.
- The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Industry and Trade in, taking scientific and technological solutions to improve the high-tech content in chemical products of Vietnam; formulating policies on innovation and technology application; conducting technology level assessment; promoting research and development of chemical production technologies suitable to Vietnam’s conditions in order to effectively use natural resources towards green growth and circular economy; coordinating with the Ministry of Industry and Trade and relevant ministries and branches to completing the system of national standards and national technical regulations for the chemical field.
- The Ministry of Education and Training, based on the assigned functions, tasks and scope of state management, shall assume the prime responsibility for planning human resource training for chemical industry production in each period.
- The Ministry of Labor, Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with ministries, branches and localities in, effectively implementing the Vocational Education Development Strategy and the Planning on the network of vocational education institutions; in which priority is given to the development of vocational education institutions engaged in training in industries and occupations to meet the needs of human resources for the development of Vietnam’s chemical industry in each period, especially high-quality human resources.
- The Ministry of Information and Communications shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and localities in, taking solutions to develop information and communication technology to serve domestic chemical industry production and participate in regional and global supply chains; developing and implementing a strategic action plan on digital transformation of the chemical industry.
- The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, inspecting and guiding the implementation of regulations on environmental protection in the field of chemical industry. Based on the assigned functions, tasks and scope of state management, assuming the prime responsibility for, and coordinating with the Ministry of Planning and Investment, the Ministry of Industry and Trade and localities in, studying and formulating construction plannings of economic zones suitable to the resources, potentials and orientations for chemical industry development.
- The Ministry of Construction shall, based on the assigned functions, tasks and scope of state management, assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Industry and Trade and localities in, studying and formulating construction plannings of economic zones suitable to the resources, potentials and orientations for industrial development.
- The State Bank of Vietnam shall operate monetary policy flexibly and proactively, harmoniously coordinate with fiscal policy and other macro policies, contributing to maintaining macroeconomic stability, controlling inflation development to create favorable conditions for production and business activities in general and the chemical industry in particular.
- Other ministries and branches shall, based on their functions, tasks and state management scope, coordinate with the Ministry of Industry and Trade in effectively implementing relevant contents in the Strategy.
3. People’s Committees of provinces and centrally-run cities shall:
- Based on the development conditions, potentials and advantages of localities, organize the implementation of the Strategy and integrate the implementation contents of the Strategy into their local planning; actively research and arrange land fund to create favorable conditions for attracting investment in the construction of concentrated chemical complexes and industrial parks, and chemical logistics centers.
- Consult the Ministry of Industry and Trade on the suitability of investment projects in the chemical sector with the sector development strategy during the process of reviewing and approving investment policies.
4. State-owned enterprises engaged in the chemical field shall:
- Based on the Strategy on Vietnam’s chemical industry development through 2030, with a vision toward 2040, develop strategies, production and business plans, five-year and annual investment and development plans.
- Groups and corporations shall accelerate the implementation of the approved restructuring project to improve operational efficiency and competitiveness.
Article 3. This Decision takes effect from the date of its signing and promulgation.
Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People's Committees of provinces and centrally-run cities and relevant agencies shall be responsible for implementing this Decision.
FOR THE PRIME MINISTER DEPUTY PRIME MINISTER Le Van Thanh
FOR THE PRIME MINISTER DEPUTY PRIME MINISTER Le Van Thanh
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