DECISION

PROVIDING FOR THE MECHANISM OF SUPPORT FOR MANUFACTURE OF KEY MECHANICAL PRODUCTS AND THE LIST OF INVESTMENT PROJECTS TO MANUFACTURE KEY MECHANICAL PRODUCTS DURING 2009-2015

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Prime Minister's Decision No. 186/2002/QD-TTg of December 26, 2002, approving the Strategy for development of Vietnam's mechanical engineering sector up to 2010, with a vision toward 2020;
At the proposal of the Ministry of Industry and Trade in Document No. 9639/BCT-CNNg of October 9, 2008, and opinions of ministries and branches on the mechanism of and policies on support for the development of the manufacture of key mechanical products, the list of hey mechanical products, and the list of investment projects to manufacture key mechanical products,

DECIDES:

Article 1. To promulgate (he mechanism and policies toward, the list of key mechanical products, and the list of investment projects to manufacture key mechanical products during 2009-2015, specifically:

1. Investment credit policy:

- Investment projects to manufacture key mechanical products may borrow from the Vietnam Development Bank state investment credit loans equal up to 85% of their total investment capital amounts (excluding working capital) with interest rates, loan terms and grace periods compliant with regulations on state investment credits.

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- In special cases, the State Steering Committee for the Program on key mechanical products shall study and propose specific investment credit mechanisms and policies to the Prime Minister for consideration and decision.

2. Demand stimulation policy:

- Enterprises manufacturing or purchasing key mechanical products may apply the form of appointment of contractors or assignment of contracts under current law.

- Organizations and individuals of all economic sectors that purchase key mechanical products may borrow state credit loans from the Vietnam Development Bank under regulations.

3. Research and development investment policy:

- Domestic enterprises manufacturing key mechanical products are eligible for supports from the National Assistance Fund for Scientific and Technological Development to cover expenses for technology transfer, purchase of design copyright and software, hiring of foreign experts and training of human resources.

- The State provides part of funds invested by enterprises of all economic sectors in laboratories studying key mechanical products. The State Steering Committee for the Program on key mechanical products shall study and propose specific investment projects to the Prime Minister for consideration and decision.

4. Tax and charge policies:

- Ceiling import tax rates will be applicable to imported products on the List of key mechanical products which can be domestically manufactured until the expiration of the tariff exemption and reduction schedules to which Vietnam has committed with the international community.

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Article 2. Subjects of application

Eligible for the support policies specified in Article 1 are key mechanical products and investment projects to manufacture key mechanical products on the lists enclosed with this Decision and manufactured or implemented by domestic enterprises.

Article 3. Organization of implementation

1. The Ministry of Industry and Trade, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Science and Technology, the State Bank of Vietnam and the Vietnam Development Bank shall, within the ambit of their functions and tasks, guide investors, organizations and individuals in implementing the aforesaid mechanism and policies.

2. In the course of implementation, the Steering Committee for the Program on key mechanical products shall propose to the Prime Minister for consideration and decision the supplementation or abolishment of support mechanisms and policies, the list of key mechanical products and the list of investment projects to manufacture key mechanical products.

Article 4. This Decision takes effect 45 days from the date of its signing.

All previous stipulations on specific key mechanical products and projects to manufacture key mechanical products, which have been approved by the Prime Minister, will continue to be effective.

Article 5. Ministers, heads of ministerial-level agencies and government-attached agencies, presidents of provincial-level People's Committees, heads of concerned agencies, and members of the Steering Committee for the Program on key mechanical products shall implement this Decision.

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PRIME MINISTER




Nguyen Tan Dung

APPENDIX I

LIST OF KEY MECHANICAL PRODUCTS DURING 2009-2015
(To the Prime Minister's Decision No. I0/2009/QD-TTg of January 16, 2009)

No.

Name of product

1

Oil tankers of 115,000 tons or more; cargo freighters of 80,000 tons or more; oil depots of 150,000 tons or more; passenger ships with 1,000 seats or more; barge-carrying ships and river-cum-sea ships of a tonnage of 10,000 tons (consisting of mother lash ships and a convoy of barges, tug and tow ships) operating along North-South routes; floating docks for repair of large ships of over 50,000 tons.

2

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3

Gantries of 50 tons or more, platform cranes of 30 tons or more, cranes of 10 tons or more, chain wheel cranes of 50 tons or more, hard-stand tired crane trucks of 50 tons or more, seagoing ship derricks of 20 tons or more, tower cranes of 5 tons or more.

4

Jack-up drill platforms for a water depth of 60 meters or more; semi-submersible drill platforms and drill ships for oil and gas exploration and exploitation.

5

Main equipment for cement production chains of a capacity of 2,500 tons of clinker/day or more: limestone crusher, clay crusher, ball-roller mill, shaft mill (for milling materials, coal and clinker), clinker furnace, clinker cooler, material distributor and remover, electrostatic dust filter and automatic control engineering of cement plants. Water and steam turbines.

6

Diesel locomotives of 800 HP or more; cargo wagons of 30 tons or more; high-class passenger cars for a designed speed of 100 km/h; passenger cars satisfying railway traffic requirements on accessibility.

7

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8

Machines for cultivation, harvest, preservation and processing of agricultural and fishery products, export preservation storages.

9

Main equipment in coal-fired thermal power plants of a capacity of 50 MW or more.

10

Big construction machines and equipment: shovels, excavators, graders, bulldozers, scrapers, loaders, automatic concrete mixers of a capacity of 60 nvVh or more; garbage treatment equipment of a capacity of 3,000 tons/day or more.

11

Power transformers for a voltage of 220 kV or more; complete equipment of transformer stations for a voltage of 220 kV or more.

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LIST OF INVESTMENT PROJECTS TO MANUFACTURE KEY MECHANICAL PRODUCTS DURING 2009-2015

(To the Prime Minister's Decision No. I0/2009/QD-TTg of January 16, 2009)

No.

Name of project

Product - capacity

1

Investment projects to manufacture oil drill platforms

Jack-up drill platforms for a water depth of 60 meters or more; semi-submersible drill platforms, inland platforms and drill ships for petroleum exploration and exploitation by Vietnam's petroleum sector and for export in the future.

2

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High-speed engines for road transportation; low-speed engines for shipbuilding and waterway navigation.

3

Investment projects to manufacture and assemble locomotives, wagons and cars for railway transportation

Diesel engines with electric gear and of a capacity of 800 HP or more; cargo wagons of a tonnage of 30 tons or more; high-class passenger cars for a designed speed of 100 km/h.

4

Investment projects to manufacture high-alloy steel casts and moulds, intensive investment in a number of machine tools for manufacturing big and heavy details

High-alloy steel casts and moulds of 1.5 tons or more in weight for heavy industries and shipbuilding; machine tools for manufacturing big and heavy details.

5

Investment projects to manufacture equipment for agriculture and processing industry

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6

Investment projects to manufacture equipment for hydropower, thermal power and cement plants

Water turbines, steam turbines and main equipment for cement production chains of a capacity of 5,000 tons of clinker/day: limestone crusher, clay crusher, ball-roller mill, shaft mill (for milling materials, coal and clinker), clinker furnace, clinker cooler.

7

Projects to manufacture and assemble construction machines

Shovels, excavators, graders, bulldozers, scrapers and high-capacity loaders; automatic concrete mixer of a capacity of 60 m3/h or more.

8

Investment projects to manufacture big electric equipment

Power transformers for a voltage of 220 kV or more; complete equipment of transformer stations for a voltage of 220 kV or more.

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