What are general orientations of development of chemical industry by 2030 with a vision towards 2040 in Vietnam?

What are general orientations of development of chemical industry by 2030 with a vision towards 2040 in Vietnam?

Pursuant to Point 3a Article 1 of the Decision 726/QĐ-TTg in 2022 stipulating as follows:

3. Development orientations

a) General orientations

Develop the Vietnam’s chemical industry into a basic and modern industry with a fairly complete structure consisting of the following 10 sub-branches: fertilizer, plant protection chemicals, pharmaceutical chemistry, petrochemistry, basic chemicals (including explosive precursors and industrial explosives), rubber products, electrochemical products, detergents, paint and printing ink products, and industrial gases; Focus on strategies for development of the following key sub-branches, including: basic chemicals, petrochemistry, technical rubber, pharmaceutical chemistry and fertilizers;

Rearrange existing production establishments with a view to enhancing concentration and developing large-scale establishments; Maintain and develop production plants that apply advanced technologies; Gradually remove the existence of and minimize the establishment of new small-scale production establishments that apply obsolete technologies, use resources inefficiently and/or produce poor-quality products which cause environmental pollution, etc.

Innovate, arrange and improve business efficiency of state-owned chemical enterprises; increase efficiency in using state capital in state-owned enterprises; cut down unplanned and inefficient investments; The State shall only hold controlling shares of enterprises operating in key areas such as infrastructure facilities of chemical industrial parks or chemical trading areas, priority chemical sub-branches with large-scale investments or those associated with national defense and security tasks; Encourage the investments by the private economic sector in chemical sector, make the best use of internal forces of social investment, and develop domestic sole proprietorships into an important force for the chemical industry development; Put more emphasis on the substance of FDI attraction policies in the chemical industry, instead of quantity thereof, and encourage the execution of FDI projects in priority sectors or products, and those applying advanced, modern and eco-friendly technologies and generating high socio-economic efficiency.

Develop the chemical industry in a concentrated manner that should be appropriate to advantages of each region/each province, and ensure the satisfaction of environmental protection, national defense and security requirements. Establish and efficiently develop concentrated industrial zones/clusters, and large-scale chemical complexes to attract investments in chemical production projects, projects on use of chemicals for manufacturing in other sectors, and chemical logistics centers in large land areas that are far away from residential areas, near deep-water ports, and convenient for transport, encourage recirculating technologies, and use of unused products and waste generated by a plant for another plant. Gradually relocate chemical production plants to industrial park/cluster for concentrated management that prevents the establishment of hazardous chemical plants that fail to meet safety distance requirements and other requirements set out in national technical regulations/standards for safety, environmental protection and fire protection in residential areas or densely populated areas.

What are development orientations for each sub-branch of chemical industry by 2030 with a vision towards 2040 in Vietnam?

Pursuant to Point 3b Article 1 of the Decision 726/QĐ-TTg in 2022 stipulating as follows:

b) Development orientations for each sub-branch

- Basic chemicals

+ By 2030:

Invest in, expand, modernize, and improve production capacity of existing establishments that produce finished soda and sulfuric acid products. Make investment in projects that produce caustic soda flakes and chlorine-based products to meet the demand for caustic soda of refinery and petrochemical projects, alumina mining and processing projects, etc.

Make investment in research on grade-II and grade-IV apatite ore-dressing technologies. Improve technologies of yellow phosphorus production establishments to increase their production capacity and ensure production safety.

Invest in thermal phosphoric acid and its derivatives, products made of phosphorus which have high economic value; invest in ammonia production to meet the demand for DAP production and other consumption demands; invest in production of nitrate salts, basic organic chemical products, solvents, etc.

Maintain the stable production of ammonium nitrate, invest in production of certain types of explosive precursors which are dual-use chemicals to meet other industrial production demands and fertilizer production demand. Do research on investment in production of explosives and blasting accessories to serve oil and gas industry. Continue promoting investment in production of bulk emulsion explosives and packaged emulsion explosives which shall completely replace TNT-containing explosives.

Develop industrial explosives with a view to increasing their destructive power, water resistance and safety while reducing dust and fumes from blasting, and developing explosive products of non-standard sizes; develop industrial blasting accessories meeting certain special requirements, including multiple differentials, tensile strength, impact strength and reliability when they are used for deep-hole and complex-terrain blasting.

+ By 2040:

Invest in projects on production of basic organic chemicals such as organic solvents, chemicals used in manufacturing of petrochemical products, and those used as fuels in other industrial production sectors, etc.

Invest in projects on production of inorganic chemicals such as sulphate salts, soda and hydrogen peroxide, etc. to serve the industrial production of washing powder, glass and paper, etc.

Develop marginal-creating emulsion explosives for use in opencast and underground mines, and underground constructions without explosive gas; bulk emulsion explosives, electric detonators, non-electric delay period detonators, high-energy fuses for use in underground mines and underground constructions without explosive gas; safety non-electric delay period detonators, etc.

- Petrochemistry

+ By 2030:

Invest in production of ammonia, methanol, ethylene, propylene, benzene, xylene, toluene, etc. and some of their preparations and derivatives with the aims of meeting both domestic consumption and export demands and minimizing the export of raw materials.

Make in-depth investment in processing of products of existing petrochemical/gasification (from natural gas) plants and complexes with the aims of increasing added value of natural resources and diversifying products and thus meeting both domestic consumption and export demands.

Invest in production of resin in primary forms, glues and synthetic rubber raw materials such as polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), acrylonitrile butadiene styrene (ABS), purified terephthalic acid (PTA), monoethylene glycol (MEG), urea-formaldehyde (UF), melamine formaldehyde (MF), polyamide 6, etc. and other certain chemicals, additives and semi-finished products, etc. to serve the domestic industry and high-tech industries.

Prioritize the establishment of petrochemical industrial complexes associated with domestic oil refinery plants/oil and gas processing plants.

+ By 2040:

Maintain the stable, safe and efficient operation of operating projects; continue diversifying petrochemical products, and do research on investment in production of products made of aromatics (NB, LAB, PTA, PET...).

Do research on investment in petrochemical projects that use sustainable materials such as biomass, green hydrogen and blue hydrogen, etc. as substitutes for traditional fossil fuels.

- Technical rubber

+ By 2030:

Attach special importance to development of groups of technical rubber products such as conveyor belts, driving belts, washers, felts and technical rubber accessories used in other industries. Invest in a technical rubber plant adopting the following 2 methods: build a new plant or equip an existing tyre and tube manufacturing plant with a new production line so as to take full advantage of existing equipment; main products of the plant include: washers, felts, gaskets, parts and accessories used for assembling or replacing parts of motor vehicles and motorcycles.

Encourage investment in production of materials and additives for manufacturing of rubber products such as carbon black, silicon, etc.

+ By 2040:

Do research on investment in plants that adopt advanced technologies and equipment for manufacturing special-purpose technical rubber products; manufacturing synthetic rubber.

- Pharmaceutical chemistry

+ By 2030:

Establish Vietnam’s herbal material zones, invest in plants that process, extract and refine herbal materials for manufacturing of pharmaceutical chemical products of natural origin, made of tropical rainforest animals and plants, marine organisms and semi-synthetic materials.

Focus on investment, development and production of antibiotic products and raw materials for producing essential medicines by taking full advantage from resources such as extracts from herbal materials and semi-synthetic products made of natural compounds; invest in plants manufacturing inorganic pharmaceutical chemicals and common excipients; plants manufacturing second, third and fourth-generation cephalosporin antibiotics; plants manufacturing sorbitol used in Vitamin-C production; plants manufacturing pharmaceutical chemical materials used for manufacturing of other essential medicines (including antipyretics, analgesics, and antibacterial drugs).

Encourage all economic sectors, especially non-state production organizations, to participate in development of herbal plant cultivation and processing; attach special importance to small and medium-sized producers and processers of pharmaceutical chemical products. The State shall proactively make investment in production of chemicals and excipients that require application of high technologies, have huge demand and are essential for community health and safety such as new-generation vaccines and antibiotics; and encourage foreign investments in these important sectors. Encourage technological transfer, establishment of joint-ventures and associations between domestic and foreign investors for manufacturing of pharmaceutical chemical materials and products.

+ By 2040:

Do research on production of new products and make in-depth investment in improvement of quality of products.

- Fertilizers:

Balance the ratio of finished ammonia/urea products of urea nitrogenous fertilizer plants to meet the market demand; gradually transfer from manufacturing of single superphosphate fertilizers to manufacturing of triple superphosphate fertilizers; encourage manufacturing of compound fertilizers, rearrange existing mixed fertilizer production establishments with a view to enhancing concentration and developing large-scale establishments, maintain and develop fertilizer production establishments that apply high technologies, and gradually cease the existence of small-scale production establishments that apply obsolete technologies and produce poor-quality products, etc.

Do research on investment in plants producing ammonium sulphate, potassium fertilizer, and calcium ammonium nitrate in order to meet the demand of fertilizers of various types for agricultural production with a view to promoting export.

Do research on improvement of efficiency of existing types of fertilizers to enhance the uses and added value of straight fertilizers, compound fertilizers containing macronutrients, secondary nutrients and micronutrients, fertilizers containing plant growth substances or substances that boost the plant immunity, and those with soil amendment function which are suitable for various types of plants with high economic value and different soil properties.

- Other sub-branches

+ Plant protection chemicals:

Invest in production of certain eco-friendly pesticide active ingredients such as carbamate-based active ingredients, azole ingredients and their derivatives, pyrethroid and validamycin ingredients.

Make in-depth investment in establishments that apply advanced technologies for manufacturing and processing plant protection chemicals replacing toxic chemicals and organic solvents; develop new active ingredients derived from microorganism and those extracted from plants to create easy-to-use, bidegradable and eco-friendly products; develop new processed products which should be suitable for plant, climate and soil properties in all three regions, Northern, Middle and Southern Vietnam, to reduce costs of transporting materials and finished products.

+ Paint - printing inks:

Focus investment on expansion and modernization of existing paint and printing ink production establishments that should adopt new technologies and improve quality of their products, and gradually cease the existence of production establishments that apply obsolete technologies; expand and improve capacity of plants producing materials (such as alkyd resins, acrylic resins, coloring agents, etc.) for use in the paint and printing ink industry; establish certain projects on production of materials for the paint and printing ink industry, especially resin slabs, filler powder and solvents such as acrylic, epoxy, and polyurethane, and specialized types of filler powder such as kaolin, CaCO3, SiO2, etc.

Invest in production of high-performance paints, including: UV/EB paint, nano paint, water-based paints, powder paints, high solid paints, and smart paints; produce eco-friendly printing ink types of high economic value such as water-based products which do not contain toluene or MEK or contain alcoholic as a substitute for toluene or MEK, etc.

+ Detergents:

Modernize existing technological lines to meet the domestic demand in terms of product quantity and quality and promote export. Develop new types of detergents and cosmetics using natural, eco-friendly, safe and high-economic value materials and active ingredients.

Attract investments in production of premium products that need high technology and large investment capital, including materials thereof.

Formulate policies for encouraging and supporting domestic enterprises in making investment and entering into new market with their own brands.

+ Industrial gases:

Apply new technologies, modern and safe equipment to processing common industrial gases to meet the domestic demand; make investment in production of high-value rare gases such as xenon (Xe), Krypton (Kr), etc., specialty gases (high purity gases, semiconductor gases, standard gases and mixed gases), and gradually reduce import rate of rare gases. Produce hydrogen from renewable energy sources.

+ Electrochemical products:

Make in-depth investment, improve quality and throughput of batteries and cells of common types.

Invest in production of certain types of high-grade specialized batteries and cells such as sealed batteries, solid fuel cells, nickel–metal hydride batteries or Li-ion batteries, new-generation batteries used in advanced electronic equipment.

Best regards!