DECREE

ON MANAGEMENT OF CONSTRUCTION MATERIALS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 26, 2003 Construction Law;
Pursuant to the March 20, 1996 Law on Minerals and the June 14, 2005 Law Amending and Supplementing a Number of Articles of the Law on Minerals;
Pursuant to the June 14, 2005 Commercial Law;
Pursuant to the November 29, 2005 Investment Law;
Pursuant to the November 29, 2005 Law on Environmental Protection;
Pursuant to the June 29, 2006 Law on Standards and Technical Regulations;
At the proposal of the Minister of Construction,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Governing scope

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Article 2. Subjects of application

This Decree applies to domestic and foreign organizations and individuals operating in the construction materials domain in Vietnam.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Construction materials mean products of organic, inorganic or metal origin, used for the creation of construction works, except electric equipment.

2. Minerals used for production of construction materials include minerals used for construction material production and those used for cement production.

3. Sanitary porcelain means products made of porcelain or ceramic used for toilets, laboratories and other special-use rooms.

4. Lining and flooring materials mean materials used for lining and flooring construction works.

Article 4. State policies for construction materials development

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2. Activities in the construction materials domain eligible for investment incentives or special investment incentives and investment projects in the construction materials domain in geographical areas eligible for investment incentives may enjoy those incentives in accordance with the investment law.

Article 5. Requirements on technologies for exploitation, processing and production of construction materials

Technologies and equipment for production of construction materials, exploitation and processing of minerals used for production of construction materials, recycling of wastes for use as raw materials, fuels or additives must be modern, advanced and cost-effective, attaining the regional or world environmental protection standards.

Article 6. Standards and technical regulations applicable to construction materials

1. Construction materials subject to technical regulations must adhere to those regulations.

2. Activities in the domain of construction materials must comply with legal provisions on standards and technical regulations.

Article 7. Requirements on environmental protection

Activities of exploiting and processing minerals used for construction materials; and producing or trading in construction materials must satisfy requirements of the environmental protection law.

Article 8. Prohibited acts

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2. Importing, trading in imported construction materials without quality standards and clear origins.

3. Supplying untruthful information on the quality and origin of construction materials products.

4. Exploiting and processing minerals for use as construction materials or common construction materials without exploitation permits.

5. Exploiting agricultural land or river sand for use for construction materials in contravention of plannings.

6. Producing, trading in, or using amphibole amianthus for production of construction materials.

7. Investing in solid construction works for non-mining purpose, or in mine areas already planned for exploration and exploitation of minerals used as construction materials, unless permitted by the Prime Minister.

8. Abusing management activities to illegally obstruct organizations and individuals activities of exploiting and processing minerals for use as construction materials, producing or trading in construction materials.

Chapter II

CONSTRUCTION MATERIALS DEVELOPMENT PLANNINGS

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Article 9. Classification of construction materials development plannings

Construction materials development plannings include:

1. General plannings for development of construction materials, including:

a/ The Vietnam master plan for development of construction materials;

b/ Regional plannings for development of construction materials, applicable only to particular regions with great potential for development of construction materials, in bordering areas of adjacent provinces, which require unified coordination;

c/ Provincial/municipal plannings for development of construction materials (below referred to as local plannings for development of construction materials).

2. Plannings for development of major construction materials include:

a/ The cement development planning;

b/ The construction glass development planning;

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d/ The sanitary porcelain development planning.

Article 10. Phases and terms of construction materials development plannings

General plannings for development of construction materials and plannings for development of major construction materials are formulated for a 10-year term, oriented for development in 5 to 10 subsequent years and phased in every 5 years.

Article 11. Adjustment, supplementation of construction materials development plannings

1. Adjustment and supplementation of construction materials development plannings comply with the following principles:

a/ Considering and adjusting every five years general plannings for development of construction materials and every 3 years plannings for development of major construction materials;

b/ Annually assessing the implementation of construction materials development plannings, based on the review results.

2. Adjustment and supplementation of construction materials development plannings must ensure the continuity; only those contents which are no longer suitable to the practical situation will be adjusted and new contents will be added to suit socio-economic development situation.

3. The agency competent to approve a construction materials development planning is also competent to adjust and supplement that planning

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1. Expenses for construction materials development plannings include expenses for formulation of new plannings, and for adjustment, supplementation and management of plannings already approved by competent agencies.

2. Funds for construction materials development plannings are ensured by the state budget.

3. The Ministry of Construction shall assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Planning and Investment in, formulating and promulgating norms and unit prices for formulation and evaluation of construction materials development plannings.

Article 13. Management of construction materials development plannings

1. The Government shall exercise the unified state management of construction materials development plannings nationwide.

2. The Ministry of Construction shall take responsibility before the Government for management of the Vietnam master plan for construction materials development, regional plannings for construction materials development and plannings for development of a number of major construction materials products.

3. Provincial-level Peoples Committees shall take responsibility for state management of local construction materials development plannings in localities.

4. Ministries, branches and localities shall coordinate with the Ministry of Construction in managing construction materials development plannings.

5. Within 30 days after a planning is approved, the agency organizing the planning formulation shall publicize it on the mass media and organize meetings to introduce it to the public, enterprises and investors so that the latter may have easy access to that planning, conduct study, investment and exploitation activities.

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Section 2. GENERAL PLANNINGS FOR DEVELOPMENT OF CONSTRUCTION MATERIALS

Article 14. Bases for formulation of general plannings

1. Bases for formulation of the Vietnam master plan on development of construction materials:

a/ National socio-economic development strategies and master plans;

b/ National potentials of mineral resources to be used for construction materials, results of basic mineral investigation, survey and exploration, and other data on mineral resources to be used for construction materials;

c/ The capacity of meeting labor, technology and market requirements.

2. Bases for formulation of regional plannings for development of construction materials

a/ The regional potentials of mineral resources to be used for construction materials, results of basic mineral investigation, survey and exploration, and other data on mineral resources to be used for construction materials;

b/ The capacity of meeting labor, technology and market requirements.

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a/ The Vietnam master plan for development of construction materials, plannings for development of major construction material products, and regional plannings for development of construction materials (for localities in a planned region);

b/ Local socio-economic development strategies and master plans;

c/ Local potentials of mineral resources to be used for construction materials, the system of data and results of the basic investigation, exploration and survey of minerals used for common construction materials and other collected data on mineral resources used for construction materials in localities;

d/ The capacity of meeting labor, technology and market requirements.

Article 15. Order of formulation of a general planning

1. Registering, elaborating a capital plan, making an outline to be submitted to a competent authority for approval.

2. Formulating the planning through the following steps:

a/ Summing up the results of investigation, analysis and assessment of mineral resources to be used for construction materials, factors, resources and conditions for development and their impacts on general plannings for development of construction materials;

b/ Analyzing and assessing the current situation of construction materials production and market;

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d/ Gathering opinions of relevant organizations and specialists;

e/ Submitting the planning to a competent authority for evaluation and approval.

Article 16. Principal contents of general plannings

1. The Vietnam master plan for development of construction materials has the following principal contents:

a/ Determination of the position and role of the construction materials industry in the national economy and its development objectives;

b/ Analysis and forecast of demands for industry development factors, potentials of mineral resources to be used for construction materials, other resources, markets, technological factors and requirements on the industrys competitiveness.

c/ Analysis and assessment of the current situation of development of the national construction materials industry, of the exploration, exploitation and use of mineral resources for construction materials, investment development resources; mechanisms, policies and solutions for management and mobilization of resources; the actual situation of minerals distribution in different territorial regions, kinds of minerals, major products, investment, technologies, labor, organization of production and competitiveness;

d/ Study of the feasibility of different schemes on exploitation, thrifty and efficient use of mineral resources for construction materials;

dd/ Study of the feasibility of schemes on minerals distribution in various territorial regions, schemes on development of different kinds of minerals, major products, investment, technologies and labor;

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2. Contents of regional plannings for development of construction materials:

A regional planning for development of construction materials has the contents specified in Clause 1 of this Article, applicable to the planned region.

3. Contents of local plannings for development of construction materials:

Apart from the contents defined in Clause 1 of this Article, a local planning on development of construction materials has the following contents:

a/ Forecast of the local demand for common construction materials and the market of those materials which constitute the local strength;

b/ The tentative list of investment projects, investment distribution schemes, investment scale and schedule for common construction materials and those materials which constitute the local strength, including major construction materials products.

Contents of a local planning for development of construction materials must conform to the Vietnam master plan for development of construction materials, plannings for development of major construction material products and regional plannings for development of construction materials.

Article 17. Dossiers of general plannings

1. A planning dossier submitted to a competent authority for approval comprises:

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b/ Maps, including: a map on the distribution of mineral resources to be used for construction materials, a map on the current state of production of construction materials and a map on planning schemes;

c/ Opinions and comments of agencies and individuals; minutes and conclusions of the evaluation council;

d/ Appendices, including: An appendix on mineral resources to be used for construction materials; an appendix on existing construction material-production establishments; an appendix on methods of calculation of construction materials demands; an appendix on the tentative list of projects of investment in the production of common construction materials and those materials which constitute the local strength (this appendix is required only for a local planning for development of construction materials).

2. Contents of planning dossiers specified in Clause 1 of this Article must be archived and preserved.

Article 18. Responsibility for formulation of general plannings

1. The Ministry of Construction shall organize the formulation of the Vietnam master plan for development of construction materials and regional plannings for development of construction materials.

2. Provincial-level Peoples Committees shall organize the formulation of local plannings for development of construction materials.

Article 19. Evaluation and approval of general plannings

1. A planning for development of construction materials must be evaluated by a competent evaluation council before it is submitted to a competent agency for approval.

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a/ The Ministry of Construction shall organize evaluation councils to evaluate the plannings defined at Points a and b, Clause 1, Article 9 of this Decree. Such an evaluation council consists of representatives of the ministries of: Construction; Planning and Investment; Finance; Natural Resources and Environment; Industry; Transport, and relevant ministries and branches; specialists in the construction materials domain with planning experiences; and representatives of construction materials organizations, societies and associations;

b/ Provincial-level Peoples Committees shall organize evaluation councils to evaluate the plannings defined at Point c, Clause 1, Article 9 of this Decree. Such an evaluation council consists of representatives of the provincial-level Services of: Construction; Planning and Investment; Finance; Natural Resources and Environment; Industry; Transport, and relevant services and branches; specialists in the construction materials domain with planning experiences; and representatives of construction materials organizations, societies and associations;

When necessary, provincial-level Peoples Committees may invite representatives of the Ministry of Construction and concerned ministries and branches to participate in evaluation councils.

3. Approving competence:

a/ The Prime Minister shall approve the Vietnam master plan for development of construction materials; and regional plannings for development of construction materials;

b/ Provincial-level Peoples Committee presidents shall approve local plannings for development of construction materials.

Article 20. Contents of evaluation of general plannings

1. The truthfulness and reliability of information, data and documents on potentials of mineral resources such as their deposits, quality, positions and sizes of mines.

2. The compatibility of a planning with socio-economic development strategies and its consistency with related plannings.

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4. Coordinated solutions and economic measures to preserve, maintain and exploit effectively resources.

Section 3. PLANNINGS FOR DEVELOPMENT OF MAJOR CONSTRUCTION MATERIALS PRODUCTS

Article 21. Bases for formulation of plannings for development of major construction materials products

1. National socio-economic development strategies and master plans and related information.

2. General plannings for development of construction materials.

3. Documents on domestic, regional and world market surveys and information on relevant products.

Article 22. Order of formulation of a planning for development of major construction materials products

1. Registering, elaborating a capital plan, making an outline to be submitted to a competent authority for approval.

2. Formulating the planning through the following steps:

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b/ Analyzing and assessing the current situation of production, calculating and balancing demand and supply;

c/ Making a sum-up report;

d/ Gathering opinions of concerned organizations and specialists;

dd/ Submitting the planning to a competent authority for evaluation and approval.

Article 23. Major contents of a planning for development of major construction materials products

1. Objectives, viewpoints and strategies for development of major construction materials products.

2. Analysis and assessment of information and data on national potential of mineral resources to be used for relevant construction materials products and other resources which constitute Vietnams strength to develop construction materials.

3. Forecast of the domestic, regional and world construction materials markets, and the import and export of construction materials.

4. Methods of calculation of market demands at different points of time.

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6. Selection of technological solutions.

7. The tentative list of investment projects, investment distribution scheme, investment scale and schedule.

8. Calculation of capital and labor demands.

9. Solutions to ensuring the demand and supply balance.

10. Responsibilities of concerned agencies and mechanisms, policies for inter-branch and inter-provincial coordination in the implementation of the planning.

Article 24. Dossiers of plannings for development of major construction materials products

1. A planning dossier submitted to a competent agency for approval comprises:

a/ A principal report, including legal bases, explanations, a written request for the approval of the planning, enclosed with a draft decision approving the planning;

b/ Maps related to each construction materials product subject to the planning: a map on the current production situation and a map on planning schemes;

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d/ Relevant appendices: An appendix on mineral resources to be used for construction materials; an appendix on existing production establishments; an appendix on methods of calculation of market demands and the demand-supply balance; an appendix on documents of investigation into the regional and world market situation, forecasting the import and export of products in international integration, and an appendix on the tentative list of investment projects at different points of time, investment locations and capacities.

2. Contents of the planning dossier must be archived and preserved.

Article 25. Responsibilities for formulation of plannings for development of major construction materials products

The Ministry of Construction shall organize and direct the formulation of plannings for development of major construction materials products, including cement, lining and flooring materials, construction glass and sanitary porcelain.

Article 26. Evaluation and approval of plannings for development of major construction materials products

1. A planning for development of major construction materials products must be evaluated by a valuation council before it is submitted to a competent agency for approval.

2. Evaluation councils

The Ministry of Construction shall organize evaluation councils to evaluate plannings for development of major construction materials products according to the following provisions:

a/ The council for evaluation of the planning for cement development is composed of members defined at Point a, Clause 2, Article 19 of this Decree;

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3. Approving competence:

a/ The Prime Minister shall approve the cement development planning;

b/ The Minister of Construction shall approve plannings for development of lining and flooring materials, construction glass and sanitary porcelain.

Article 27. Contents of evaluation of a planning for development of major construction materials products

1. Legal bases, scientific grounds, reliability of information, data and documents for formulation of the planning.

2. The plannings conformity with socio-economic development strategies; its consistency with relevant plannings.

3. Objectives, viewpoints and orientations for development of major construction products in each period, general development targets, schemes on rational arrangement of resources, and other major contents of the planning.

4. The scheme on demand-supply balancing for the major construction materials products.

5. The tentative list of investment projects at different points of time and relevant appendices.

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Chapter III

CONSTRUCTION MATERIALS PRODUCTION AND BUSINESS

Article 28. Conditions for agencies and organizations formulating construction materials development plannings

1. Having the function of providing consultancy on construction materials as prescribed by law.

2. The plannings project director is an engineer or a person with equivalent or higher qualifications, who has been involved in construction materials planning work for at least five (5) years.

Article 29. Conditions for exploitation of minerals for construction materials

An organization or individual involved in the exploitation of minerals used for construction materials must fully meet the following conditions:

1. Having a mineral exploitation permit granted by a competent state agency.

2. Having an approved investment project and an approved design for mine exploitation.

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a/ The investment project must adopt advanced technologies, ensuring the production of high-quality products, saving of natural resources and protecting the environment;

b/ The scale, technology and equipment for the exploitation of minerals used for production of construction materials must conform to the approved investment report and the characteristics of each kind of minerals so as to maximize the recovery coefficients of major minerals and accompanied minerals;

c/ For exploitation activities, there must be a project management unit as prescribed by the law on minerals;

d/ Having adequate conditions for environmental and ecological protection and a recovery plan for every exploitation stage in accordance with the environmental protection law;

dd/ Having solutions to ensuring labor safety and hygiene in accordance with the labor law.

4. With regard to minerals mines lying on the borderlines of localities, exploitation schemes must be approved by local administrations in terms of exploitation technologies, ensuring safety, environmental hygiene and saving of natural resources; capacity and tempo; and the division of exploitation areas among participants in exploitation investment, and related obligations.

5. If the minerals exploitation falls outside a planning on exploration, exploitation, processing and use of minerals for construction materials and the minerals are not subject to national reserves, the minerals exploitation permit granted by a competent agency must be complied with.

Article 30. Requirements on processing and production of construction materials

1. To adhere to the environment law, the labor law and relevant laws.

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2. To have trained personnel who are capable of operating equipment and technologies and controlling product quality.

3. The Ministry of Construction shall guide the implementation of contents specified in Clause 2 of this Article for the processing and production of construction materials.

Article 31. Construction materials business

1. Construction materials business must comply with the commercial law.

2. The Ministry of Construction shall guide in detail the construction materials business.

Article 32. Conditions on quality of construction materials products to be marketed

1. Domestically-manufactured construction materials products to be marketed must meet the following requirements:

a/ They must meet the promulgated standards. Those products on the list subject to technical regulations must be up to the quality set under those regulations;

b/ For construction materials products not subject to national standards, manufacturers shall publicize applicable standards and take responsibility for the quality of their products;

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2. Standards applicable to imported construction materials products must be publicized and those products must meet the conditions specified at Point c, Clause 1 of this Article.

Article 33. Rights and obligations of organizations and individuals engaged in the exploitation of minerals used for production of construction materials

1. Rights of organizations and individuals

To have the rights provided for by the law on minerals.

2. Obligations of organizations and individuals:

a/ To perform the obligations provided for by the Law on Minerals, the Law on Environmental Protection and other laws;

b/ To conduct exploitation activities in accordance with the approving decisions;

c/ To protect and save mineral resources, protect the environment and landscape during and after exploitation;

d/ To pay compensation in accordance with law for damage caused by exploitation activities;

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e/ To comply with examination and inspection regulations of competent state agencies.

Article 34. Rights and obligations of organizations and individuals engaged in minerals processing and production of construction materials

1. Rights of organizations and individuals:

a/ To select and decide on technologies for processing of minerals and production of construction materials in accordance with law;

b/ To select and decide on, and publicizing quality standards of construction materials products they manufacture;

c/ To decide on organization of, and measures for, control of product quality and the environment according to quality and environment standards;

d/ To decide on prices of, and trade in, construction materials products they manufacture.

2. Obligations of organizations and individuals:

a/ To publicize applicable standards and take responsibility for the quality of products they manufacture;

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c/ To properly and fully abide by the contents of environmental impact assessment reports and requirements of decisions approving those reports or the contents of environmental protection commitments and other legal provisions on environmental protection, and the provisions of this Decree;

d/ To supply full information, guide the use, transportation and preservation of construction materials;

dd/ To immediately stop and take remedies when detecting construction materials products of poor quality, which might cause harms to traders and users; to pay damages to traders and users who use construction materials products of poor quality;

e/ To comply with the competent state agencies regulations on examination and inspection.

g/ To supply information on product quality and environment to competent management agencies in accordance with law.

Article 35. Rights and obligations of organizations and individuals engaged in construction materials business

1. Rights of organizations and individuals:

a/ To have the rights of goods traders provided for by the commercial law;

b/ To decide on organization of, and measures for, internal control of the quality of construction materials products;

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a/ To ensure the quality of construction materials in accordance with commercial contracts;

b/ To comply with requirements on the quality of exported construction materials in treaties to which Vietnam is a contracting party;

c/ To perform the importers obligations provided for in Clause 3 of this Article, if the construction materials are re-imported for domestic consumption.

3. Obligations of an importer of construction materials:

a/ To take responsibility for the quality of construction materials they import;

b/ To organize and control the process of transporting, storing and preserving the products to maintain their quality and meet environmental protection requirements;

c/ To take responsibility for re-export of imported construction materials which fail to conform to technical regulations;

d/ To destroy within the prescribed time limit imported construction materials which fail to conform to technical regulations but cannot be re-exported, and bear all destruction expenses.

dd/ To supply traders and users with full information and conditions to be met during the transportation, storage and preservation of construction materials products;

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4. Obligations of construction materials traders:

a/ To comply with requirements on construction materials business in accordance with Article 31 of this Decree;

b/ To take responsibility for construction materials products they sell;

c/ To organize and control the process of transporting, storing and preserving construction materials to maintain their quality;

d/ To supply buyers with full information and conditions to be met during the transportation, storage and preservation of construction materials products;

dd/ To promptly supply buyers with full information on the poor quality of construction materials products when receiving such information from manufacturers or importers, and notify the buyers of handling measures;

e/ To comply with the planning on the urban network of conditional construction materials businesses (if any);

g/ To comply with the competent state agencies regulations on inspection and examination.

Chapter IV

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Article 36. Examination, inspection of activities in the construction materials domain

1. Contents of examination and inspection:

a/ The implementation of construction material plannings;

b/ The exploitation and processing of minerals and production of construction materials;

c/ The quality of construction materials products manufactured in the country, imported, exported and circulated on market;

d/ The satisfaction of environmental standards by construction materials production and business establishments;

dd/ The construction materials business conditions.

2. Forms of examination:

a/ Periodical examination;

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3. Forms of inspection:

a/ Inspection under plans;

b/ Extraordinary inspection, for cases showing signs of violation or upon complaints or denunciations.

4. Examination and inspection agencies:

a/ The Ministry of Construction shall organize examination and inspection of the implementation of contents specified in Clause 1 of this Article; coordinate with the General Department of Customs in examining the quality of imported and exported construction materials products;

b/ Provincial-level Peoples Committees shall, according to their competence, direct provincial-level functional agencies in examining and inspecting activities in the construction materials domain in localities.

Article 37. Handling of violations

1. Organizations and individuals operating in the construction materials domain in the Vietnamese territory that commit acts of violating this Decree, shall, depending on the severity of their violations, be administratively sanctioned and, if causing damage, pay compensation, or be examined for penal liability in accordance with law.

2. Persons who abuse their positions or powers to obstruct organizations and individuals lawfully operating in the construction materials domain in the Vietnamese territory or seek personal profits shall be disciplined and, if causing damage, pay compensation, or be examined for penal liability in accordance with law.

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For establishments producing construction materials with obsolete technologies, causing environmental pollution, which were invested before the effective date of this Decree:

1. Provincial-level Peoples Committees shall examine and direct factories to work out comprehensive plans for improvement of technologies and handling of environmental matters according to specific schedules; approve those plans and oversee their implementation;

3. If no plans are worked out to address problems, concerned establishments must covert production and apply more advanced technologies or stop production.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 39. Responsibilities of the Ministry of Construction

The Ministry of Construction shall exercise the state management of activities in the construction materials domain, having the following tasks:

1. To elaborate, promulgate or submit to state agencies for promulgation, and organize the implementation of, legal documents on construction materials; formulate development plannings and national programs on construction materials, and guide the phasing of construction materials development plannings of all types.

2. To elaborate and promulgate national technical regulations on construction materials.

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4. Other tasks prescribed by law on construction materials.

Article 40. Responsibilities of relevant ministries and branches

The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Natural Resources and Environment, the Ministry of Industry, the Ministry of Transport, the Ministry of Trade, the Ministry of Science and Technology and other ministries and branches shall, according to their assigned functions and tasks, coordinate with the Ministry of Construction in exercising the state management of activities in the construction materials domain, ensuring the consistency of construction materials development with infrastructure development.

Article 41. Responsibilities of provincial-level Peoples Committees

Provincial-level Peoples Committees shall, within the ambit of their tasks and powers, perform the state management of activities in the construction materials domain in localities, having the following tasks:

1. To promulgate according to their competence legal documents on management of activities in the construction materials domain.

2. To organize the implementation of legal documents on management of activities in the construction materials domain.

3. To monitor, make statistics on, and sum up local activities in construction materials domain.

4. To propagate, popularize and guide laws, supply information on the construction materials domain in localities.

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Article 42. Implementation effect

1. This Decree takes effect 15 days after its publication in CONG BAO.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal Peoples Committees, and concerned organizations and individuals shall implement this Decree.

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER





Nguyen Tan Dung