Loss-making projects to be handled in 2020

Twelve delayed or loss making projects under the Ministry of Industry and Trade (MoIT) would be resolved by 2020, according to the ministry’s Planning Department.

Loss-making projects to be handled in 2020
Dinh Vu Polyester Fiber Plant (PVTex) - one of 12 loss-making projects - has resumed operations. — Photo cafef.vn

Deputy Prime Minister Vuong Dinh Hue, head of a steering committee set up to handle these projects, said the ministry had completed 75 per cent of the targets set under a plan for 2017-19.

Two of the 12 projects (DAP Fertiliser 2 Hai Phong, Viet Trung Steel Plant) had reported profits. DAP 1 Lao Cai Fertiliser Plant, Ninh Binh Fertiliser Plant, Ha Bac Fertiliser Plant’s expansion and Dung Quat Shipyard Company had also reported positive changes.

Hue said the Viet Nam National Oil and Gas Group (PetroVietnam) had resolved legal disputes arising in its engineering – procurement – construction (EPC) contracts at Dinh Vu Polyester Fiber Plant (PVTex) so it would not have to pay fees up to US$13 million, creating a foundation to restructure PVTex.

In addition, Quang Ngai bio-fuel plant has been outsourcing production to Saigon Sundries Investment And Trading Joint Stock Company (Tocontap), while Binh Phuoc Bio-fuel plant had completed its repair work and was ready to restart operations.

 

However, the steering committee said difficulties remained due to EPC disputes, auditing, mobilising resources and consumption markets.

Loss-making projects had been asked to develop plans and hire consultants to resolve these issues and reduce production costs and improve efficiency, rather then waiting for Government support.

The National Assembly, in a resolution issued in November 2016, named 12 loss-making projects under the management of the industry and trade sector: Dinh Vu Polyester Fibre Plant, Phuong Nam Pulp Factory, Thai Nguyen Iron and Steel Joint Stock Corporation, Dung Quat Bio-ethanol Plant, Ninh Binh Fertiliser Plant, Ha Bac Fertiliser Plant, DAP 1 Lao Cai Fertiliser Plant, DAP Fertiliser 2 Hai Phong , Ethanol Binh Phuoc, Ethanol Phu Tho, Dung Quat Shipyard and the joint venture between Quy Sa and Lao Cai Steel.

Of these, five are under PetroVietnam and four belong to the national chemicals corporation Vinachem. — VNS

 
 
 
 
 
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