Decision No. 145/2007/QD-TTg dated September 04, 2007 of the Prime Minister approving the master plan on the development of Vietnam’s steel industry in the 2007-2015 period, with the 2025 vision taken into consideration
THE PRIME MINISTER OF GOVERNMENT
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, September 04, 2007
APPROVING THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM’S STEEL INDUSTRY IN THE 2007-2015 PERIOD, WITH THE 2025 VISION TAKEN INTO CONSIDERATION
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government dated December 25, 2001;
At the proposal of the Ministry of Industry (now the Ministry of Industry and Trade) and the Minister of Planning and Investment, and based on the opinions of ministries, branches and localities,
Article 1. To approve the master plan on the development of Vietnam’s steel industry in the 2007-2015 period, with the 2025 vision taken into consideration, with the following principal contents:
1. Development viewpoints
a) To develop Vietnam's steel industry in compliance with the national master plan on socio-economic and industrial development, local socio-economic development plannings and Vietnam's integration roadmap.
b) To build and develop Vietnam’s steel industry into an important industry, ensuring stable and sustainable development, minimizing imbalance between the manufacture of pig iron and ingot steel and the manufacture of finished steel products, between long steel products and flat steel products.
c) To build Vietnam’s steel industry with advanced and rational technologies, using domestic resources in a thrifty and efficient manner, ensuring harmony with eco-environmental protection in localities where the industry is developed.
d) To attach importance to, and encourage domestic economic sectors and branches to cooperate with foreign parties to invest in, the construction of a number of mining-metallurgy complexes, combine mills and large factories, which manufacture flat steel products.
2. Development objectives
The overall development objectives of Vietnam’s steel industry are to satisfy to the utmost the economy's demands for steel products and to boost export, specifically:
a) Manufacture of pig iron
To adequately supply cast pig iron for domestic mechanical manufacture and export, striving to supply a majority of raw materials for domestic ingot steel mills. By 2010, 1.5-1.9 million tons of pig iron; by 2015, 5.0-5.8 million tons of pig iron; by 2020, 8-9 million tons of pig iron and reverted products; and by 2025, 10-12 million tons of pig iron and reverted products will be manufactured.
b) Manufacture of ingot steel (raw steel)
By 2010, 3.5-4.5 million tons; by 2015, 6-8 million tons; by 2020, 9-11million tons; and by 2025, 12-15 million tons of ingot steel will be manufactured.
c) Manufacture of finished steel products
By 2010, 6.3-6.5 million tons of finished steel products (18-2.0 million tons of flat steel products); by 20/5, 11-12million tons (6.5-7.0 million tons of flat steel products); by 2020, 15-18 million tons (8-10 million tons of flat steel products); and by 2025, around 19-22 million tons (11-13 million tons of flat steel products and 0.2 million tons of special steel) will be manufactured.
d) Export of pig iron and steel of all kinds
By 2010, the export volume will reach 0.5-0.7 million tons; by 2015, 0.7-0.8 million tons; by 2020, 09-1.0 million tons; and by 2025, around 1.2-1.5 million tons.
The above export targets may be adjusted to suit the practical situation in order to stabilize the domestic market.
3. The master plan's contents
a) Demands for steel products
Vietnam's demands for finished steel products are estimated at around 10-11million tons by 2010; 15-16million tons by 2015; 20-21 million tons by 2020; and 24-25 million tons by 2025.
b) Planning on major investment projects
On the basis of the distribution of iron ores, their geographical locations and infrastructure as well as different steel demands, investment will be made in the following major projects:
- 2007-2015 period:
+ Ha Tinh Steel Complex, with Thach Khe iron ore mine: Its capacity is projected at 4.5 million tons/year, divided into 2 phases, the capacity in the first phase will be around 2-2.5 million tons/year. The investment form will be investment cooperation between domestic and foreign parties. The planned time of putting the complex into operation in the first phase is during 2011-2012;
+ Dung Quat (Quang Ngai) Steel Complex with a capacity of 5 million tons/year, divided into 2 phases, using domestic and imported iron ores. The investment form will be 100% foreign capital. The planned time of putting the complex into operation in the second phase is during 2011-2015;
+ A project on a mil manufacturing high quality hot-rolled and cold-rolled steel coils and zinc-plated steel with a capacity of 3 million tons/year, the capacity in the first phase will be 0.7 million tons/year. The investment form will be 100% foreign capital of Posco Group (the Republic of Korea);
+ A project on a mill manufacturing high quality hot-rolled steel coils and sheets with a capacity of 2 million tons/year. The investment form will be joint venture between ESSA Group (India) and domestic enterprises. The mill will be built during 2007-2009;
+ A project to expand the production capacity of Thai Nguyen Pig Iron and Steel Company, phase 2:
To invest synchronously in mining and metallurgy stages (blast furnace - basic oxygen furnace), with a capacity of 0.5 million tons of square ingot/year. The project is planned to be put into production during 2009-2010;
+ Lao Cai Steel Complex, using Quy Xa mine’s iron ores: refining pig iron with blast-furnace and refining steel with electric-arc-furnace with a capacity of 05 million tons of square ingot/year. The Complex is planned to be put into operation during 2016-2025, if market is available, investment will be made in an additional modern steel-rolling chain with a capacity of 0.5 million tons/year;
+ To develop medium- and small-sized projects on the blast-furnace manufacture of pig iron in Lao Cai, Tuyen Quang, Cao Bang, Bac Kan and Yen Bai provinces with a total capacity of around 1 million tons of ingot steel/year; Cuu Long Steel Company’s flat ingot steel mill, and Vietnam Steel Company's and Southern Steel Company's square ingot steel mills, etc.;
+ To complete the construction of, and put into operation, a number of smaller-sized projects to make flat-steel products, including 2 hot-rolled steel sheet mills of VINASHIN and Cuu Long Steel Company; cold-rolled steel coil mills of LILAMA, Phu My Steel Sheets Company - phase 2, Hoa Sen Company, Formora Steel, Sun Steel, and Bach Dang Company, etc.
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