Draft decree clamps down on imports of obsolete machinery VNTimes

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HCM CITY (VNS)— A draft decree prepared by the Ministry of Science and Technology seeks to tighten controls over the import of machinery, equipment and production lines by State-owned enterprises (SOEs).

The decree aims to stop the inflow of obsolete technologies into the country, Dau Tu (Vietnam Investment Review) newspaper report said on Thursday.

It said the decree would require SOEs to import machinery, equipment and production lines that are "quite new."

The SOEs are also required to give priority to the import of modern and advanced technological products that suit the needs of approved projects.

In special instances where SOEs have to import used machinery, the equipment and technology would have to comply with current regulations and guidelines of the ministry.

The ministry, for its part, will co-ordinate with relevant ministries and agencies to strictly control the import of the used technical products, the decree says.

SOEs will also not be allowed to import machinery, equipment and technology that have technical standards similar to those made in the country.

Before working on the draft, the ministry carried out inspections of equipment and machinery imported by State-owned corporations and groups.

These showed that many companies had imported machinery and equipment dating back to the 1960s or 1970s, causing losses of thousands of billions of dong because they are fuel inefficient and require a lot of maintenance.

Worse still, they badly affected the environment with their emissions.

Nguyen Phu Cuong, deputy head of the ministry's Department of Science and Technology, said the import of outdated machinery and equipment would turn the country into a landfill for discarded technologies. This has to be prevented, he said.

In an online conversation with the public, Nguyen Quan, Minister of Science and Technology, said enterprises would be given incentives to effect advanced technology transfers.