(VNA) - Viet Nam and China have been expanding effective industrial cooperation through many projects and programmes in such industries as electricity, oil and gas, chemistry, steel, mining, plastics, engineering chemicals, paper and coal and have established commercial ties in many other industries, said Minister of Industry Hoang Trung Hai.

In an interview on the two countries' industrial cooperation, Minister Hai told the Viet Nam News Agency that the two sides have cooperated to build thermal power plants in Cao Ngan, Hai Phong, Quang Ninh, Son Dong and Cam Pha with a total capacity of 1,800 MW.

Electricity of Viet Nam (EVN) has signed contracts to purchase electricity from China's Yunnan and Guangxi electricity companies, thus helping Viet Nam meet its increased demand for electricity recently, Minister Hai said, adding that EVN and China' southern electric grid corporation are planning to link their 220kV and 500kV grids to exchange electricity in the coming years in the framework of bilateral and Greater Mekong Subregional cooperation.

The industry minister said that the Viet Nam Petroleum Corporation (PetroVietnam) is preparing to cooperate in petro-chemistry, and oil and gas surveys and processing with major Chinese oil and gas companies such as CNOOC, CNPC, SINOPEC, COVEC, CNTIC.

The Viet Nam Coal Corporation is implementing cooperation projects with China to build the Khe Cham II coal mine and develop technology for coal mining in the Red River delta.

The Sin Quyen copper factory is under construction with the active participation of Chinese contractors, which is expected to be completed and put into operation in the third quarter of 2006.

For the Dac Nong Bauxite-aluminium project, the two governments have signed a memorandum of understanding for the establishment and implementation of a Viet Nam-China working group to study the project, Hai said, adding that the Chinese side has completed a feasibility study and the two sides are discussing its amendment for submission to the Vietnamese government.

The first phase of a project to expand the Thai Nguyen Steel Company with assistance from the Chinese government has helped supply domestic demand for steel and stabilise steel prices in the domestic market recently, Minister Hai said. He added that preparations have been made for the second phase of the project. Of the project's total investment of 236 million USD, Viet Nam has asked China for 150 million USD in soft loans for a duration of 20 years.

With Chinese assistance, a project to expand and upgrade the Ha Bac Nitrogenous Fertiliser and Chemicals Factory has been implemented to help meet the demand for agricultural production, Hai said.

He said the two sides are implementing a project on the construction of a factory to produce nitrogenous fertiliser from coal dust in Ninh Binh province with a total investment of 400 million USD; and cooperating in a feasibility study of an investment project to increase the capacity of the Ha Bac nitrogenous fertiliser and chemicals factory and the Dinh Vu DAP fertiliser production project.

On the occasion of the upcoming China visit by President Tran Duc Luong, the two governments will sign a framework agreement and an agreement on financial support for a project on print mould and cylinder production, Minister Hai revealed, adding that businesses of the two sides also plan to reach detailed agreements.

Minister Hai said there is huge potential for cooperation between the two countries' industrial sectors, citing the fact that almost all existing Chinese-invested projects have gone ahead as scheduled and have brought about socio-economic benefits while big industrial projects will be carried out soon to help boost the two countries' relations.

Apart from using the Chinese Government's preferential loans in some projects, Vietnamese and Chinese businesses have also taken advantage of China's commercial credits and other sources of investment capital to establish new projects, the Vietnamese industrial official elaborated.

He said that while accelerating cooperation in areas that have shown effectiveness, the two countries can expand their collaboration to other areas of potential such as mechanical electronics, information technology, and the paper industry.

However, Minister Hai noted that both Vietnamese and Chinese businessmen have met some difficulties in realising their goals during the initial stage.

He believes the differences in the two countries' regulations and procedures on investment, and trade, and the lack of close coordination between project developers are the major reasons why some projects run slowly.

Recognising the need to remove these obstacles, Vietnamese and Chinese industrial leaders have worked together to seek possible solutions to these problems to facilitate the implementation of important industrial projects as scheduled.

He said Viet Nam and China are on the way to completing their negotiation on the former's accession to the World Trade Organisation (WTO).

"It's my belief that by opening up to investment, trade and integration, more opportunities will be created for Vietnamese and Chinese businessmen to enter a new stage of cooperation in the industrial sector," Minister Hai stressed.

"In the playing field of integration, we are willing to welcome Chinese entrepreneurs to come and do long-term business in Viet Nam, especially in industrial development projects," the industrial leader concluded./.