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VietNamNews

Plan to ban old Chinese machinery proposed

Update: February, 21/2012 - 10:16

HA NOI — The ministries of Finance and Science and Technology will propose a temporary ban on the import of obsolete Chinese machinery, equipment and technology in 18 sectors.

The move came as the Chinese Ministry of Industry and Information Technology published a list of 2,255 factories nationwide to slash obsolete metal-output capacity. The factories deal mainly in iron and steel, chemicals, smelting, cement, glass, paper, alcohol, food, tanning and dyeing.

The dismantling meant that a large volume of obsolete Chinese equipment and technology could flood into neighbouring countries, including Viet Nam, in efforts to retrieve initial investment costs, sources from the Ministry of Finance, quoted by Dau Tu (Investment) newspaper, said.

Sources said that it was highly possible for equipment to be imported to Viet Nam as a significant number of domestic producers relied on Chinese products to minimise their own initial investment costs.

Chairman of the Viet Nam Steel Association Pham Chi Cuong said that the warning was necessary as domestic steel producers used to import obsolete machines, equipment and technologies due to cheap prices.

Cuong added that a significant number of Chinese steel laminating machines with low energy saving capabilities and annual capacities of only 50,000-100,000 tonnes were imported into the country during 1995-2004.

However, Cuong noted that domestic steel producers were currently staying clear of ineffective cheap products. Although they still imported machines from China, copyright for these belonged to producers in the EU, US and Japan.

General Secretary of the Viet Nam Papper Association Vu Ngoc Bao stated that domestic paper producers were experienced in buying machines and equipment. Producers currently only invested in production lines with annual capacities of more than 50,000 tonnes while Chinese machines and equipment could not equal this volume.

To prevent possible imports, besides sending dispatches to relevant authorities nationwide, the Ministry of Science and Technology said it would propose regulating imported second hand machines, equipment and technology to guide the implementation of the Law on Commerce as a long-term measure.

Investors should additionally make detailed reports on imported machinery, equipment and technologies used when applying for licences, the ministry said, a process some are still handling without the needed care and attention. — VNS

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