Long-term strategy

  • Plan on developing production of rubber products of Vietnam to 2025, vision to 2035

  • Monday, 4/24/2017

  • AsemconnectVietnam - To develop production of rubber products on basis of mobilizing all domestic and foreign resources, strengthening and using effectively domestic raw materials.

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    PLAN ON DEVELOPING PRODUCTION OF RUBBER PRODUCTS OF VIETNAM TO 2025, VISION TO 2035

    I. Development viewpoints
    - To develop production of rubber products on basis of mobilizing all domestic and foreign resources, strengthening and using effectively domestic raw materials, promoting development advantages and potentials, ensuring feasibility and sustainable development.
    - To focus on investing in several key rubber products having competitive advantages, at the same time, gradually developing high-quality products, products used in friendly environment, high-tech fields. Taking competitive advantages when Vietnam participates in international trade agreements.
    II. Development objectives  
    1. Overall objectives
    To build and promote the resources to develop production of rubber products of Vietnam in order to meet domestic demand, reducing import proportion, increasing exports.
    2. Specific objectives
    - Average growth rate of industrial production value of rubber products reaches 14-15% in a period of 2015-2020; 15% in a period of 2021 - 2025 and 12% in a period of 2026-2035;
    - Average growth rate of rubber product production added value in a period of 2015 - 2020 reaches 15.4%; maintaining growth rate of 15.4% in a period of 2021-2025; reaching 12% in a period of 2026 - 2035;
    - Proportion of industrial production value of rubber product production to the entire chemical industry reaches 23% in 2020, 23.5% in 2025, and posting 24% in 2035;
    - Export value of rubber products hits USD 750 million by 2020, posting USD 1 billion by 2025, maintaining an annual average growth rate of 7.2%/year and reaching USD 2 billion in 2035;
    - To strive to 2020, almost production units of rubber products having demand for natural rubber raw material will use domestic raw material source for production.
    III. Development orientation
    To apply modern, advanced technology to newly invested technology, production line. Using maximum available domestic raw materials, salvaging competitive advantage, manufacturing high-quality products and boosting exports.
    IV. Plan on developing production of rubber products of Vietnam to 2025 and vision to 2035
    1. Development plan to 2025
    1.1. In a period to 2020
    Besides several existing projects in a previous period, proposing implementation of several projects on developing production of rubber products as follows:
    - To invest in expanding, improving quality, renovating technology and equipment of available production units of rubber products in the country, focusing on improving quality of motorbike tires and tubeless tires, boosting production of auto and motorbike inner tires making of butyl rubber to meet domestic demand;
    - To expanding scale of factory production of light truck, car radial tires, light truck in Dinh Vu industrial park, Hai Phong, raising total capacity to 49,000 tires/day, having orientation of exporting all of its products;
    - To expand and raise capacity of factory of producing car, light truck radial tire in Binh Duong province to 6.3 million tires/year to serve export and consume 5-10% of tire output in domestic market; Raising capacity of factory of producing heavy truck radial tire in Danang to 1.2 - 1.8 millions tires/year;
    - To invest in car semi-steel radial tires in Binh Duong province with a capacity of 4 million tires/year in order to meet domestic demand and export around 30-40% of output. Investing in factory of producing car radial tire with a capacity of 4-5 million tires/year in the Central, exporting 50% of tire output, the rest will be consumed in domestic market and investing in factory of producing truck radial tire in the North with a capacity of 300,000 tires/year;
    - In order to meet development demand of Vietnam’s industry of manufacturing auto in a period of 2015 - 2020, investing in building a factory of manufacturing technical rubber products with a capacity of 1 million products/year in the South under two options: building newly or additionally production lines in existing tire production factory to utilize existing available equipment of the factory. Its main products are rings, seals, gaskets, spare parts to serve industry of manufacturing auto, motorcycles;
    - To investing in constructing factory of producing steel-hoop, steel fiber with a capacity of 10,000 tones/year in the Central region or the South;
    - To invest in construction of coal production factory with a capacity of 115,000 tones/year in the southern region in order to meet demand of units of producing rubber products in Vietnam.
    1.2. In a period of 2021 – 2025
    - To construct factory of producing conveyor belt with a capacity of 500,000 m2/year and curoa wire with a capacity of 1 million m/year with advanced technology and equipment, combining use of plastic fibers, steel fibers and synthetic rubber in factory in the Central to meet domestic demand;
    - To expand and raise capacity of factory of producing car radial tire in the North to 600,000 tires/year.
    2. Vision to 2035
    - To set up plan on investing in construction factory of producing radial car tires with a capacity of 12-15 million units/year in the South in order to meet domestic demand of 24 million of radial tire by 2035;
    - To build plan on investing in constructing factory of producing conveyor belts with a capacity of 1 million m2/year and steel core curoa wire with a capacity of 2 million m/year with advanced technology and equipment, combining with using nylon fiber, steel fiber and synthetic rubber in factory in the South.
    List of investment projects in plan on developing production of rubber products of Vietnam to 2025 and vision to 2035 is shown in appendix attached to this plan.
    V. Measures, policies and mechanisms on implementation of the plan
    1. Development of scientific and technology potentials
    - To promote research and development, new product research and application of new technologies into production of technical rubber products, especially rubber products used in high-tech industries;
    - To support development of several scientific and technology enterprises in fields of research and application of production of rubber products which are strong enough to produce friendly environmental, high-tech products, building prestigious brand names on domestic and international markets;
    - To establishing a center on rubber technology research, specializing in research and development of technology, testing and improving quality of rubber products as well as diversifying types of rubber products in order to promote production and minimizing dependent on foreign technology.
    2. Solution on developing and ensuring human resources
    - To train, improve capacity of staffs working in scientific research and technology in specialized research institutes, departments of charge of engineering, technology, management of enterprises in fields of manufacturing rubber products;
    - To strengthen specialized training of rubber at universities, colleges and vocational training schools, renovating training methods toward modern trends, following closely to actual demands;
    - To promote international cooperation in training human resources of management and operation of projects of producing rubber products. Encouraging foreign investment enterprises to take part in supporting human resource training.
    3. Raising capacity of product quality management system
    - To review and improve system of specialized regulations and standards on rubber products of Vietnam, first of all, standards of products of tires, conveyor belts, curoa and other rubber products under regional and international standards and regulations in order to improve efficiency of rubber products quality management, at the same time, creating technical barriers to trade fraud forms in order to create fair competition between domestic products and import products;
    - To invest in upgrading system of rating and testing quality of rubber products in competent quality testing agencies;
    - To improve system of managing quality of preliminary processed natural rubber in Vietnam, looking towards all of rubber product shipments must have a certificate of quality control. Supporting private sector to enhance quality of rubber raw material to achieve national and international standards through programs of agriculture, industrial promotion.
    4. Market solutions
    - To increase investment in market investigation, research and forecast to have full of accuracy and timeliness market data for rubber production and business;
    - To boost export promotion, including all traditional markets and potential markets, paying special attention to consuming demand and characteristics of these market, creating a basis for promotion of comparative advantage, competitive advantage when Vietnam participates in international trade agreements. Actively participating in domestic and foreign trade promotion programs;
    - Enterprises should build plans and strategies for development of product brand names, having long-term development strategy to maintain market share, raising product quality, continuously improving design, diversifying types of rubber products, consolidating and developing system of rubber product consumption.
    5. Investment solutions
    - To mobilize all resources, create favorable conditions for attracting domestic and foreign investors, investment capital of economic sectors;
    - To encourage enterprises to invest in expanding production combining with technological, equipment innovation, application of energy saving solutions. Giving priority to investment in production of rubber materials for manufacturing rubber products used in high-tech fields;
    - New investment projects, projects of expanding and raising capacity must be approved by Ministry of Industry and Trade on investment policy, market share of domestic consumption.
    6. Solutions on environmental protection
    - To give priority to development of projects of applying new, friendly environment, less waste, energy saving technologies, increasing material using efficiency; and re-using waste generated in production process;
    - To step up process of relocating, concentrating factory of producing rubber products in industrial parks, industrial clusters in order to manage centrally and reduce environmental pollution;
    - To reuse maximum of recovered components in waste to reduce waste and reduce consumption of natural resources. Just treating or burying waste when being considered as non-reused waste. Developing waste recycling technologies. Building solutions and plans on collecting used products for recycling or having appropriate treatment measures to minimize negative impacts on environment;
    - To fulfill chemical risk assessment, developing plans on preventing and responding to chemical incidents, strictly controlling chemical substances of high toxic levels in units of producing rubber products in accordance with current regulations.
    7. Solutions on policies and mechanisms
    7.1. Investment promotion policy
    To publish lists of projects calling for investment in each period to help investors choose appropriate investment plans.
    7.2. Financial policy
    To have mechanisms to actively support for science and technology activities, new enterprise formation, market assessment and new market development.
    7.3. Tax policy
    - To have tax priority, tax incentive policies for enterprises of producing technical rubber products;
    - To consider to reduce import tax rates on input materials for vehicle tires valve, vulcanization membrane and domestic produced goods but having not high quality and only used as input material for manufacturing rubber products, can not be used for other consumption purposes.
    VI. Organizing implementation
    1. Ministry of Industry and Trade shall function as the main implementer, in collaboration with relevant ministries, sectors and People's Committees of centrally-run provinces and cities announce the plan and direct, guide implementation of the plan, specifically:
    - To regularly inspect and monitor implementation of the plan to meet investment conditions and the State management of projects under their jurisdiction.
    - To work closely with Vietnam national chemical group, Vietnam rubber group, Vietnam rubber association and relevant authorities to direct adjustment of investment structure by geographical regions under right direction.
    2. Ministry of Planning and Investment, Ministry of Agriculture and Rural Development, Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Construction, Ministry of Science and Technology, Ministry of Transport, Ministry of National Defense, Ministry of Justice and related ministries under their functions coordinate with Ministry of Industry and Trade to specify solutions, policy and mechanisms outlined in this plan.
    3. People's Committees of centrally run provinces and cities shall coordinate with Ministry of Industry and Trade to implement synchronously plan on developing production of rubber products of Vietnam and in consistent with relevant plans of localities. Getting written agreed opinions of Ministry of Industry and Trade before granting investment license for new projects, project of expanding production of rubber products and changing rate of domestic consumption and export products.
    4. Associations strengthen role of collaborative links among enterprises, with Ministry of Industry and Trade on proposing policies and mechanisms on developing production of rubber products of Vietnam.

    Long Giang
    Source: moj.gov.vn

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