Chemical industry growth 10-11%/year

Chemicals are present in most areas of social life. With the advancement of science and technology, the chemical industry has been and continues to research and produce many effective products and solutions, playing an increasingly important role in the industrial and economic development of each country.

According to British researchers, it is estimated that each car needs to use about 350 kg of plastic - a product of the chemical industry; modern composite materials from petrochemical products in modern new aircraft (Boeing 787 Dreamliner) account for more than half of the main structure. In addition, the global analysis report of Oxford Economics has shown that the chemical industry is the fifth largest manufacturing sector in the world, directly creating 1.1 trillion USD in added value contributing to global GDP; it is estimated that for every 1 USD generated from the chemical industry, an additional 4.20 USD will be generated in other sectors of the economy. The above figures show the role and importance of chemicals in life and economic development.

In Vietnam, among the 10 largest industries in the country according to the secondary sub-sector, the chemical industry is ranked in the third group, accounting for 2-5% of the GDP of the entire industrial sector. The growth rate of the industrial production value of the industry is about 10-11%/year; the labor force is about 2.7 million (accounting for nearly 10% of the total industrial labor force) and labor productivity is 1.36 times higher than the average labor productivity of the entire industrial sector (due to a relatively high level of self-assimilation). Some sectors have basically met domestic demand (fertilizers, pesticides, tires, common paints, cleaning products). The types and structure of products are increasingly diverse, providing input materials for many other industries (electronics, metallurgy, textiles - footwear, food processing, automobiles, etc.).

Although some significant achievements have been made, the scale and growth rate of the industry are not commensurate with its role and development potential; many types of raw materials and chemical products still depend on imports; investment in the industry is still limited, the investment structure is still unreasonable, there are not many products with high added value, and the value chain of chemical products in the region and globally has not been formed.

With the important role of the chemical industry, at the 13th Party Congress, chemicals were identified as one of the fundamental industries, and developing chemical industry is one of the key tasks and solutions to promote socio-economic development of the whole country.

5 solutions to develop the chemical industry

In order to create appropriate mechanisms and policies to implement the Party's guidelines and policies, and at the same time develop the chemical industry towards sustainability, green growth, safety and environmental friendliness, in the process of drafting the Law on Chemicals (amended), the Ministry of Industry and Trade has advised the Government on a number of solutions as follows:

1. Supplementing regulations on building and implementing development strategies for the chemical industry

The draft supplements regulations on the development and implementation of the chemical industry development strategy in the direction of clearly defining requirements for the content of the strategy; strategy formulation stage; responsibility for development, approval authority and responsibility for organizing the implementation of the chemical industry development strategy.

2. Develop specific requirements , criteria and regulations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ id ​ ​ ​ ​ ​ photovoltaic ​ ​ ​ ​ ​

The concept of “Chemical Project” has been clarified compared to the 2007 Chemical Law, specifically: A chemical project is an investment and construction project formed and implemented with the main objective of conducting production and storage of chemicals and products of the chemical industry.

In addition to investment and construction requirements, chemical projects need to meet requirements and regulations on chemical technology and chemical safety. The draft Law stipulates the contents that need to be considered and evaluated in the investment policy decision stage and the chemical project investment decision stage to meet requirements on technology, chemical safety and environmental protection, aiming to integrate green chemistry criteria and achieve sustainable development goals. The Government will detail the principles of green chemistry, detail the implementation of specific regulations for chemical projects, ensuring maximum integration into current investment and construction processes and procedures in the Investment Law and Construction Law.

3. Incentives for key chemical industry sectors

In order to create appropriate mechanisms and policies to implement the Party's guidelines and policies on promoting the development of the chemical industry into a modern, fundamental industry, the draft Law stipulates key chemical industry sectors and investment projects in these sectors that are consistent with the chemical industry development strategy, have investment capital scale and disbursement progress according to Government regulations, and are entitled to special investment incentives and support according to the provisions of the Investment Law and other relevant laws.

Key chemical industry sectors include: product manufacturing sectors to provide basic and essential raw materials for many other industries and production sectors (basic chemicals, petrochemicals, rubber); production sectors contributing to ensuring food security and health security (pharmaceuticals, high-quality fertilizers); sectors promoting sustainable development, towards a circular economy (production of hydrogen chemicals, ammonia and derivatives from renewable energy sources; investment projects in specialized chemical industrial parks and chemical complexes).

The above regulations aim to ensure consistency with the Investment Law, be consistent with the practical investment activities in the chemical sector, and at the same time ensure flexibility in the Government's management.

4. Develop regulations to manage and promote the consulting network in chemical activities, supporting development in both quantity and quality.

The draft supplements regulations on chemical consulting activities in the following direction:

- Supplementing the chemical expertise requirements for consultants performing construction activities. The granting of certificates to these subjects shall comply with current regulations of the Construction Law.

- Supplement regulations on professional conditions and certification for a number of consulting activities directly related to technology and chemical safety and security.

The addition of regulations on chemical consulting activities aims to improve the effectiveness of chemical safety work, ensure the rights of project investors, and select appropriate, effective, and cost-saving technological, construction, and safety solutions.

5. Amending regulations on the time of appraisal of Chemical Incident Prevention and Response Plans

The appraisal of the Chemical Incident Prevention and Response Plan during the feasibility study (FS) report preparation stage not only ensures the effectiveness of the appraisal and approval work of the state management agency, but also helps enterprises minimize the damage that may arise due to the need to modify the construction structure. Based on the design documents from the FS stage, the management agency has sufficient information to conduct the appraisal of the Chemical Incident Prevention and Response Plan; the inspection and approval of this Plan will be combined with the inspection and acceptance of the completion of the construction project, without administrative procedures.

To ensure that the mechanisms and policies for the development of the chemical industry in the Draft Law are suitable and close to reality, creating a driving force for the development of the chemical industry , units under the Ministry of Industry and Trade need to :

- Closely coordinate , focus and proactively carry out tasks and solutions to develop the chemical industry commensurate with the role and position of the chemical industry .

- Research and propose solutions for developing a green , modern , environmentally friendly chemical industry that ensures safety for people . Research and propose solutions to attract investment and recommend supplementing regional , provincial and national planning with contents related to concentrated chemical industrial complexes and zones , selecting suitable locations to form concentrated chemical industrial complexes and zones with synchronous technical infrastructure , ensuring safety and environmental requirements and taking into account factors of the sharing economy and circular economy ; ​ ​ ​ ​ ​ ​

- Promote scientific and technological research activities in the chemical industry , in which , consider prioritizing research tasks to enhance the value - added chain for chemical industry products .

- Continue and strengthen communication activities , provide information to all levels and sectors at the central and local levels about the role , position , necessity and positive contributions of the chemical industry .

- Develop and propose solutions for chemical management at all levels to ensure effective management , on the one hand enhancing the role and responsibility of specialized state management agencies of the Industry and Trade sector , on the other hand enhancing the responsibility of local authorities on this issue .