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Tougher rules for steel projects
Steel industry investment projects must meet certain requirements issued by the Ministry of Industry and Trade (MoIT), according to a new circular.
Beginning in the fourth quarter, under the new regulations, steel investment projects must meet industry development plan standards, including: technology, equipment, source of input material, fuel, infrastructure and financial status.
The circular was issued after MoIT raised concerns over a breakdown in the plan to develop the steel industry. Due to rampant licensing, many steel projects did not follow the steel industry’s development plans as ratified by the Government.
Last year, MoIT found that 32 recent projects were not in line with the Government’s development plan, 24 of which did not conform to the Law of Construction and had not received approval from the Prime Minister or MoIT.
Local authorities are currently permitted to give licences for steel projects in their provinces after receiving approval from the Prime Minister or MoIT.
Pham Chi Cuong, chairman of the Viet Nam Steel Association, said that the steel industry had been developing rapidly but it lacked sustainability.
Cuong warned that the massive investment in steel projects nationwide with the establishment of steel mills in most provinces was threatening to break the steel industry’s development strategy while negatively affecting the balance of energy, transportation and the environment.
With the new regulations, MoIT expected the steel industry would develop more sustainably and environmental safety would be ensured.
It said it was scrutinising steel industry investments to file an official recommendation to the Government soon for dealing with steel projects that violate the industry’s development plans.
vietnamnews
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