The meeting between the Committee of Science, Technology and Environment and Sonadezi Corporation

At the meeting, Ms. Do Thi Thu Hang – Chairwoman of the Board as well as Sonadezi’s Board of Directors reported to the delegation of Committee of Science, Technology and Environment about the operation of Sonadezi Corporation and its subsidiaries, especially the results of investment, high-tech applications, production and business modernization, difficulties and obstacles in the legal policies implementation.

Attracting 65 High-tech Companies

Sonadezi’s leaders said that from 1990 up to now, Sonadezi Corporation has always focused on investing, applying modern and advanced technology in its operations, especially in wastewater treatment, waste and environmental protection. Since 1998, Sonadezi built the first wastewater treatment plant in Bien Hoa Industrial Zone 2, using European technology at a cost of about US $ 3.1 million. Until now, 12 industrial zones of Sonadezi has built and put into operation the concentrated wastewater treatment plant with advanced treatment technology, with a total capacity of 41.300 m3/day and the total construction cost of nearly VND 404 billion.

In terms of waste treatment, SDV – a Sonadezi’s subsidiary, invested VND 355 billion to build Quang Trung Waste Treatment Area with a scale of 130 hectares. At present, this is the largest and most modern waste treatment project in the region from the Central region to here, with continuous treatment and recycling functions. In this project, SDV also invested about VND 138 billion to build a waste recycling plant to turn waste into compost with an area of 3.5 hectares and a production line imported from Europe and using aerobic microbiological technology. SDV is cooperating with the Research Center on Waste Treatment of Ho Chi Minh City University of Technology to research and treat sludge in the most effective way to reduce treatment costs for companies.

In terms of attracting investment, Sonadezi always tends to the projects using advanced and modern technology. So far, 12 industrial zones of Sonadezi in Dong Nai and Ba Ria Vung Tau has attracted 487 FDI projects with total registered capital of nearly USD 9 billion and 190 DDI projects with total investment capital of VND 15,000 billion. Among them are 65 high-tech projects (with a total investment of USD 1.35 billion) of many worldwide famous brands such as Fujitsu, Bosch, Olympus, Sanyo, Shell, Shisheido, Kenda, Atus, Hans Vina, 3M …

Numerous difficulties in identifying high-tech companies

According to Sonadezi Corporation, the companies in Sonadezi’s Industrial Zones are currently facing many difficulties and obstacles in meeting the criteria and procedures for recognizing high-tech companies. Accordingly, although many companies operating in Sonadezi’s Industrial Zone possess high technology level and produce multiple specific products such as aircraft components, computer components, automotive components, motorcycles, cameras, PE composite film…; only Bosch (Long Thanh Industrial Park) has achieved high technology company certification so far.

Mr. Phan Dinh Tham – CEO of Sonadezi Corporation said “There are many problems and inadequacies in identifying and certifying high-tech companies. In particular, the set of criteria is unclear, inappropriate and difficult for the companies to meet the criteria. For example, the regulation states that “the high-tech companies must be located in high-tech zones” that is a criterion that most companies in Dong Nai are difficult to achieve because Dong Nai currently does not have high-tech zones. In addition, the definition of how to transfer high technology and how to invest in high technology is still unclear. Therefore, several companies have transferred or applied high technology in production but have not been recognized as high-tech companies”.

Sharing on this issue, Ms. Do Thi Thu Hang emphasized “Not only the set of criteria require high standards that cause difficulties for the companies to meet those requirements, especially for domestic companies; but the administrative procedures in certifying high-tech companies are also cumbersome and complicated that waste time, effort and cost of the companies. Taking Bosch as an example, although Government and other ministries directly visited and recognized the use of high technology in Bosch’s production operation, Bosch had to spend 3 years to complete the high-tech company certification procedure. On the other hand, the regulations on incentives for high-tech companies still overlap and not unify with current laws. Preferential policies for hi-tech companies are not specifically in Law on Land as well as tax laws. Therefore, the criteria and policies for high-tech companies should be concretized, suitable and effectively implemented to facilitate the companies to transfer, apply advanced technology and develop their businesses.

Sharing the same view, Bui Xuan Thong said “Not only does Sonadezi reflect on the shortcomings in criteria and procedures for recognizing high-tech companies, but other companies in the province are also pressing about this issue. Currently, the administrative procedures for recognition of high-tech companies are still very complicated and difficult to implement because they are not only under the authority of the Ministry of Science and Technology but also under many other ministries and regulations scattered in many laws such as Law on Investment, Law on Technology Transfer,… Each ministry defines a different criterion that leads to overlap and confusion in implementation. Attention should be paid to review regulations and processes of issuing high-tech enterprise certificates so as not to be a hindrance to the companies in hi-tech investment and application.

Being difficult to implement due to inconsistent law

Also within the meeting with the delegation of the Committee of Science, Technology and Environment, Sonadezi Corporation and its subsidiaries reported the difficulties and obstacles in implementing legal policies in environmental treatment due to the incompatibility among the laws, between laws and decrees or between circulars and decrees.

For example, the incompatibility between Decree No. 38/2015/NĐ-CP dated April 24, 2015 and Circular No. 36/2015/TT-BTNMT was clearly analyzed by Mr. Tran Thanh Hai – Deputy CEO of Sonadezi Corporation: Decree No. 38/2015/NĐ-CP dated 24/4/2015 on Waste and Scrap Management, Clause 3, Article 40 stipulates “If the sludge from centralized wastewater treatment system presents any hazardous elements exceeding the threshold of hazardous waste, it shall be managed according to the regulations on hazardous waste management. Otherwise, it shall be managed according to the regulations on ordinary waste”. However, according to Circular No. 36/2015/TT-BTNMT (not guiding Article 40 of Decree No. 38/2015/ND-CP), all sludge from the centralized wastewater treatment system in the industrial zones of following business types “production, compounding inorganic and organic chemicals; treatment, surface covering, metal processing and other materials” (codes 12.06.07, 12.06.08) are always hazardous waste, regardless of the content of hazardous constituents contained in sludge”. This is not in line with Decree No. 38/2015/ND-CP, causing troubles, difficulties and costs for companies in the implementation process. Therefore, Sonadezi suggested regulators considering and adjusting Circular No. 36/2015/TT-BTNMT in accordance with Decree 38/2015/ND-CP dated April 24, 2015.

After listening to the difficulties, obstacles and suggestions of Sonadezi Corporation, Chairman of the Committee of Science, Technology and Environment – Mr. Phan Xuan Dung, said that the delegation would record and summarize the situation and opinions to discuss with regulators. He also requested the ministries and agencies to definitely handle this issue according to their respective roles and positions in order to create favorable conditions for companies, promote their capabilities and facilitate high-tech application in their businesses. Mr. Phan Xuan Dung suggested “The results achieved in the past 27 years prove that Sonadezi is a large brand creating prestige with domestic and foreign customers. Sonadezi attracts many huge and high-tech companies and it also applies modern technology in the operation. Therefore, if there are any urgent, inadequate, and difficult problems in the daily operation, Sonadezi should actively reflect and recommend the authorities for them to realize and handle soon. It thereby helps to promote the application of modern scientific and technological achievements, improve the technological capacity of the nation and the companies, promote the quality of growth, labor productivity and economic competitiveness.”

Photos of the meeting:

The meeting between the delegation of the Committee of Science, Technology and Environment and Sonadezi Corporation
Mr. Phan Xuan Dung – Member of the Party Central Committee, Member of National Assembly Standing Committee, Head of the Committee of Science, Technology and Environment makes a remark at the meeting with Sonadezi Corporation.
Ms. Do Thi Thu Hang – Chairwoman of Sonadezi Corporation makes a remark.
The delegation of the Committee of Science, Technology and Environment acknowledges the comments of Sonadezi Corporation
Mr. Phan Dinh Tham – CEO of Sonadezi Corporation makes a remark.
Mr. Bui Xuan Thong – Deputy Head of the specialized delegation of Dong Nai Province’s National Assembly speaks at the meeting.
Mr. Tran Thanh Hai – Deputy CEO of Sonadezi Corporation makes a remark.