Prime Minister Nguyen Xuan Phuc has approved a plan to deal with 12 loss-making industrial projects managed by the Ministry of Industry and Trade.

Ninh Binh Fertiliser Plant is among the 12 loss-making projects managed by the Ministry of Industry and Trade

Under the plan, the government aims to help these projects to stop their loss-making operations and recover as much of the state capital as possible by 2020, with various measures to be carried out, including allowing projects which can’t be saved to go bankrupt.  

Any individuals and organisations which are involved in the projects’ management and operation leading to the losses will be strictly punished.

For four projects namely Ninh Binh Fertilizer Plant, Ha Bac Fertilizer Plant, DAP 1 Lao Cai Fertilizer Plant and DAP 2 Haiphong Fertilizer Plant, measures will be implemented to improve their performance then after that the government will divest its capital from these facilities through equitisation.

Meanwhile, Quang Ngai biofuel project will be resumed before its owner PetroVietnam will transfer it to another company or divest from the project.

Regarding Phu Tho biofuel project, its investor PetroVietnam Oil Corporation’s capital transfer or disinvestment will be considered. In case of the failure, other measures need to be taken, including continuing to implement the project, halting or allowing it to go bankrupt.

Binh Phuoc biofuel project will be resumed as the Quang Ngai project and in case the plan fails, the government will consider leasing or selling its assets.

According to the plan, state capital divestment and restructuring is being mulled over for Thai Nguyen Steel Plant expansion project. Other options include selling the project or calling for more investment into the project.

Solutions will be conducted to settle difficulties for Quy Xa iron ore mining and Lao Cai steel projects so that they can continue to be implemented.

Dung Quat Shipyard and the Dinh Vu polyester fibre projects will be let to go bankrupt as measures to save them fail.

The plan said that Vietnam Paper Corporation, the owner of Phuong Nam pulp mill, will have to recover the project’s debt and all of its assets and remaining stockpiles will be sold.

These 12 projects have a total capital of VND63.6 trillion (around USD2.9 billion).

The Ministry of Planning and Investment recently announced a list of other 42 state-funded projects which cost a total VND43 trillion (USD1.9 billion) and have faced ineffective operations and losses, including in real estate, agriculture and telecommunications.

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