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Industry urges development plan renewal

Update: December, 22/2016 - 10:00

Many sectors have built long-term development plans, but after a period of implementing those plans, they must adjust them to be suitable with reality.

Experts from the construction, coal and garment industries speak to a Vietnam News Agency reporter about adjustments in those industries’ development plans.

Lê Văn Tới

Lê Văn Tới, former head of the Ministry of Construction’s Building Material Department:

Việt Nam has abundant resources for cement production, with a limestone output of 12.5 billion tonnes. Now, the capacity of the domestic cement industry has increased by 20-25 per cent against local demand.

Many opinions said that the domestic consumption of cement has grown but the cement industry should consider exports as a long–term plan to reduce oversupply of 20 million tonnes of cement per year.

The development plan of Việt Nam’s cement industry during 2011-20 and towards 2030, approved by the Government with Decision 1488/QĐ-TTg in 2011, has supported the efficient development of the industry from 2011 until now.

However, after five years of implementation, the Prime Minister has agreed to take 14 cement projects with small capacities of around 910,000 tonnes of cement a year out of the plan, delay development of nine other projects and slowdown investment for seven other projects.

Therefore, with directions from the Government, the Ministry of Construction has been building the development plan of Việt Nam’s cement industry during 2017-25 and towards to 2035 to replace the plan under Decision 1488.

The target of the new plan was to follow socio-economic development, supply and demand of cement on the local market, and actual development of cement projects under the development plan.

Especially, the ministry would adjust and supplement lists of projects ensuring feasibility as well as review and adjust the schedule of developing projects under the plan to balance supply and demand.

The renovation of the development plan for the cement industry must pay attention to efficiency and sustainability as well as avoid wasting resources and exporting cement at any price.

At present, some foreign investors have planned to buy modern cement factories in Việt Nam to produce cement for their home markets.

They would take advantage of tax, such as export and value added tax, for cheap products, meanwhile, they wouldn’t have to use resources in their countries and also avoid pollution from cement production.

So, the cement industry needs to have specific targets that are suitable with the long-term development strategy, including domestic consumption and export.

Nguyễn Văn Biên

Nguyễn Văn Biên, deputy general director of Việt Nam National Coal and Mineral Industries Group (TKV):

The development plan of Việt Nam’s coal industry for 2020 and towards 2030 has been approved by the Prime Minister with Decision 60/QĐ-TTg in 2012 to target coal output of 55-58 million tonnes in 2015, 60-65 million tonnes in 2020, 66-70 million tonnes in 2025 and more than 75 million in 2030.

But, difficulties in production meant the industry’s coal output reached only 37.6 million tonnes and consumption stood at 35.5 million in 2015, missing the target.

Therefore, the development plan was adjusted to be suitable with the reality of the market. Accordingly, the target was reduced, with coal output at 41-44 million tonnes in 2016, 51-54 million tonnes in 2020 and 55-57 million tonnes in 2030.

Development of the coal industry under the renewed plan would meet the demand of the domestic market, make efficiently use of coal and save coal resources.

In addition, the industry would reduce coal exports and focus on the export of coal that the nation has little demand for.

The coal industry has faced the most difficult period over the past 10 years. This year, coal output was expected to drop by 3 million tonnes against 2015.

At present, with limited resources and a reduction in coal prices in domestic and global markets, the TKV would inspect domestic coal reserves to ensure sustainable development in the future.

The group would develop and apply advanced technologies for exploration, exploitation, processing and use of coal as well as reduction of losses during coal mining.

Vũ Đức Giang

Vũ Đức Giang, chairman of Việt Nam Textile and Apparel Association:

According to the development plant of Việt Nam’s textile and garment industry by 2020 towards 2030, the textile and garment industry was slated to reach US$20 billion in export value in 2015, but the industry hit an export value of $27.5 billion in 2015 and expected to reach $29 billion for this year.

In the five years from 2010 to 2015, the industry held a growth rate of export value at 15 per cent per year.

The target in export value was much lower than the figures in reality and the development plant was not suitable with the real development of the industry.

Therefore, the association has proposed the Government and related ministries and sectors to review the development plan for the garment industry by 2020 to support local textile and garment enterprises in taking opportunities as well as overcoming challenges from free trade agreements.

The adjustment of the plan should be effective until 2025, and towards 2040.

The association has suggested the Government, the Ministry of Industry and Trade and the Ministry of Planning and Investment to build development plans for the industry, including a development plan on industrial zones. Many small textile and garment firms have not been concentrated in specialised zones for the textile and garment sector, which led to difficulties in the management and treatment of waste water. This factor is related to the industry’s sustainable development and protection of the environment.

Renovation of the development plan for the textile and garment industry by 2020 and towards 2030 is necessary because the industry expects to enjoy many advantages in development over the next 10 years. — VNS

 

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