THE MINISTER OF INDUSTRY

Article 1.- To approve the planning on development of Vietnam's paper industry up to 2010 with a vision toward 2020, with the following principal contents:

1. Development objectives

a/ General objectives

- To build Vietnam's paper industry with modern technologies and form concentrated paper and pulp production zones with a fairly large capacity to satisfy domestic consumption and export demands. By 2020, to satisfy 70% of the domestic consumption demand, boost the export of paper articles which are competitive on the regional and world markets.

- To build concentrated paper raw material areas to meet the demand for raw materials for production of 600,000 tons of pulp by 2010 and 1,800,000 tons of pulp by 2020, facilitating the building of large concentrated paper processing plants.

b/ Specific objectives

- By 2010: To plant 470,000 hectares of material forests, produce 600,000 tons of pulp and 1,380,000 tons of paper.

- By 2020: To plant 907,000 hectares of material forests, produce 1,800,000 tons of pulp and 3,600,000 tons of paper.

2. Planning on development of products and development locations

a/ Planning on products

- Concentrated pulp production: To balance pulp production and paper production, and at the same time contribute to promoting the sale of products of paper raw material growers.

- Paper production: To operate the existing paper mills at their full capacity to fully satisfy the demand for printing paper and writing paper for domestic consumption and export. To invest in building a number of plants producing packing paper (ordinary and high-class packing paper) and industrial paper to satisfy the demand for packing paper and materials for industrial production.

- Building of paper raw material areas: To plan and build concentrated paper raw material areas which are large enough to supply sufficient raw materials for paper production and create conditions for the building of large pulp production plants.

b/ Planning on territorial regions

To arrange raw materials areas and pulp and paper projects in 6 regions throughout the country (see Appendix 2 enclosed with this Decision). To create a balanced development among different territorial regions in line with the socio-economic development strategy in each period.

3. Investment capital demand of paper industry

Investment capital: To mobilize all investment capital sources from all economic sectors at home and abroad to invest in building raw material areas and large pulp and paper production plants. Total investment capital for the 2006-2020 period will be VND 95,569 billion, of which capital for investment in plants will be VND 87,664 billion and capital for investment in planting forests will be VND 7,905 billion.

4. The system of solutions and policies for implementation of the planning

a/ Technological solutions

- To renew technologies and apply new technologies through research and application of sciences and domestic technologies, transfer of technologies and projects on cooperation and joint-venture with foreign companies.

- For projects on renovation, upgrading and intensive investment, to apply more modern technologies suitable to equipment conditions of each existing technological chain.

- To apply technologies for treating wastewater of Vietnam's paper industry, especially micro-biological technology.

- To study and apply new technological solutions in order to use in the most rational and efficient manner domestic paper raw material sources.

- To build raw material areas for pulp production, apply scientific and technological advances to selecting plant varieties and apply tissue technology. To apply intensive farming and specialized cultivation technologies in order to raise the yield of paper raw material plants.

b/ Investment solutions:

Investment in paper raw material areas:

- To invest in building raw material areas first and invest in building paper production plants after raw material areas are ready to supply raw materials.

- To invest in upgrading and building infrastructures, training laborers, extending forestation, and conducting scientific and technological researches concurrently with investing in paper raw material areas.

- To support production capital and rationally distribute land areas, including land of different soil fertility grades, to households.

- To enhance supervision of the formulation and implementation of projects on development of raw material areas under planning.

- To plant paper raw material forests on as much as possible forestry production land in the planned area after the feasible project is approved. To elaborate regulations on project implementation and supervision for strict observance by local administrations of all levels and enterprises.

Investment in paper and pulp plants:

- For new investment projects: To invest in new projects on large-capacity pulp plants in which advanced technologies, modern equipment and closed technological processes are applied and economic and environmental protection norms are satisfied. These projects should be planned with phased investment in key raw material areas.

- For projects on extensive and intensive investment: To expand production and diversify products together with raising product quality, applying modern technologies and equipment, improving labor productivity, cutting production costs and efficiently mobilizing available managerial personnel and technical workers.

c/ Financial and credit solutions:

- To reorganize and transform the ownership of existing production companies, with a view to mobilizing capital from all economic sectors, especially foreign investment capital.

To encourage and create all conditions for all economic sectors to invest in developing the paper industry. State capital supports for investment include budgetary capital, state development investment credit loans, state-guaranteed credit capital and investment capital of state enterprises, which are added with such capital sources as ODA, domestic and foreign commercial loans, FDI capital, etc.

To allocate budget funds for scientific research, training, infrastructure construction and environ-mental treatment for pulp production projects.

d/ Technical labor and human resource training solutions

- To apply both training and retraining solutions.

- For retraining: To organize short-term courses at paper job-training schools or in concentrated industrial zones, and send workers and technicians to overseas short-term refresher courses.

- For beginners: To send them to formal training courses at paper job-training schools with annual enrolments.

- For tertiary and postgraduate training: To send learners to attend formal training courses at domestic and foreign universities.

Article 2.- Organization of implementation

1. The Industry Ministry shall assume the prime responsibility for, and coordinate with concerned ministries and branches and People's Committees of provinces and centrally run cities in, directing the development of the industry under the approved adjusted planning.

2. The Planning and Investment Ministry, the Finance Ministry, the Agriculture and Rural Development Ministry, the Trade Ministry, the Science and Technology Ministry, the Natural Resources and Environment Ministry, the State Bank of Vietnam and the Development Bank of Vietnam shall, within the ambit of their functions, coordinate with the Industry Ministry in supporting enterprises and localities in implementing the approved adjusted planning.

3. People's Committees of provinces or centrally run cities shall concretize the paper industry development planning in their respective provinces or cities. They shall join ministries and branches in inspecting and supervising the implementation of the approved planning in order to ensure its consistency and conformity with local socio-economic development master plans.

To create favorable conditions for the implementation of projects on development of paper raw material areas in their localities according to the approved planning, and for the exploitation and transportation of paper raw materials.

4. Vietnam Paper Association shall coordinate with the Industry Ministry in implementing the planning through disseminating and explaining the planning to paper production enterprises throughout the country so that those enterprises can work out their production and business development orientations and plans in line with the planning.

It shall study and propose to state management agencies adjustments to policies and mechanisms for development of the paper industry under the planning.

5. Vietnam Paper Corporation, as the key enterprise of the paper industry, shall promote investment in large paper and pulp production projects.

It shall coordinate with the Paper Association in studying and proposing to state management agencies policies and mechanisms for development of the paper industry under the approved planning.

Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 4.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and concerned agencies shall implement this Decision.