return icon Vietnamnet.vn

PM closes curtain on multimillion dollar steel plant

The state resolutely refused to save the failing VND8 trillion ($361.4 million) Thai Nguyen Iron and Steel JSC (TISCO)’s iron and steel plant-phase 2.

The state resolutely refused to save the failing VND8 trillion ($361.4 million) Thai Nguyen Iron and Steel JSC (TISCO)’s iron and steel plant-phase 2.


 

The decision was announced by the Prime Minister (PM) Nguyen Xuan Phuc at the recent meeting to review the Ministry of Industry and Trade (MoIT)’s operation in the first half of 2016.

Phuc stressed that the state’s support policies should be changed to stop propping up weak and failing businesses.

“We will not bankroll bad businesses any more. We cannot keep on throwing thousands of billions of dong into projects like the TISCO plant,” Phuc said.

In May, the PM requested the MoIT to establish a working group to study potential solutions to save the project. Accordingly, the working group will build plans to sell the project or TISCO’s stake in it.

In addition, it must assess the feasibility of negotiations between TISCO and contractor China Metallurgical Group Corporation (MCC) to continue the implementation of the project, as well as comply plans to call for investors in case the two parties fail to reach an adequate compromise.

The MoIT had to submit its proposals to the PM before July 1. However, as of now, the MoIT has been delaying submitting solutions.

The plant’s construction was kicked off in 2007 under an engineering, procurement, and construction (EPC) contract with the initial investment capital of VND3.8 trillion ($170.4 million). The facility has a designed capacity of 500,000 metric tonnes of iron and steel products per year.

In 2009, the project’s expected cost increased from VND3.8 trillion ($170.4 million) to VND8 trillion ($361.4 million).

In 2012, China Metallurgical Group Corporation (MCC), decided to stop implementing the project and returned to China, claiming the capital increase was too high and the investor had difficulty whipping up capital after disbursing more than VND4.5 trillion ($216.35 million) for the project. Thus, the project’s construction has been delayed for four years.

On March 29, TISCO announced that it can arrange the necessary finances to continue the construction. However, TISCO has yet to lure MCC to the negotiation table.

VIR

MORE NEWS

Vietnam among top 10 best places to go for budget honeymoon

The nation has been listed among the top 10 best places to go for a budget honeymoon in 2023 by prestigious global travel website Lonely Planet.

Vietnam’s industrial production to rise 6.6% in 2023: S&P Global

Vietnam is predicted to record a rise of 6.6% in industrial production in 2023, according to S&P Global Market Intelligence.

Vietnamese athletes to receive 1 mln USD for Paris Olympic gold

Vietnamese athletes competing in the Paris 2024 Summer Olympics, scheduled for July 26 to August 11, 2024, will receive 1 million USD in bonus for each gold medal; 500,000 USD for silver and 200,000 for bronze.

VIETNAM NEWS HEADLINES FEBRUARY 1/2023

Party chief’s book on corruption fight to make debut

Google Doodle honours first female Vietnamese newspaper editor Suong Nguyet Anh

The world’s most popular search engine Google has paid tribute to Suong Nguyet Anh, the first female editor of the nation’s first women’s newspaper by posting a drawing of her on its homepage on February 1.

Banh Cuon among world top 10 dishes visitors should try in 2023

Australian travel magazine Traveller has listed Banh Cuon, Vietnamese steamed rice rolls, among the top 10 best meals from around the world that visitors should try in 2023.

Party chief directs key tasks for new year

Party Secretary Nguyen Phu Trong on Tuesday chaired a meeting of the Secretariat of the Communist Party of Vietnam (CPV) Central Committee, mapping out key tasks for the new year.

VIETNAM BUSINESS NEWS FEBRUARY 1/2023

Domestic market to drive tourism recovery in 2023: insider

Some big companies made profits in 2022, but others incurred losses

While Duc Giang Chemicals and Binh Son Refining and Petrochemical have reported big profits for Q4 and the year 2022, Vietnam Airlines and leading steel manufacturer Hoa Phat saw big losses for the year.

Vietnamese couple help German bicyclist in distress

Trung and Nhung, a Vietnamese couple, on the way to travel across Vietnam on Tet holiday, saw a foreigner who was facing troubles because of strong winds in Ninh Thuan.

Vietnam develops green agriculture to increase exports to EU

Vietnam is paying attention to mobilising resources to invest in developing green agriculture with an aim to raising the market share of its agricultural exports to the European Union.

Vietnamese team comes first at Southeast Asian Fencing Championship

Vietnam secured the first position at the 2023 Southeast Asian Fencing Championship which has taken place recently in Malaysia.

2023 - Time for Edtech to thrive in Vietnam

Experts are positive about the development of Vietnam’s education technology (Edtech) market in 2023 if local Edtech companies can overcome post-pandemic challenges.

UK imports from Vietnam in 2022 put at over US$6 billion

United Kingdom (UK) imports from Vietnam amounted to US$6.06 billion last year, rising by 5.2% over 2021, according to the General Department of Vietnam Customs.

Five more registration officials in Hanoi prosecuted for soliciting bribes

Police of Hanoi’s Thuong Tin District has started legal proceedings against five officials at 2915D Registration Centre for taking bribes.
back_to_top