Sunday, June 16 2019

VietNamNews

Loss-making projects to be handled in 2020

Update: May, 28/2019 - 11:28

 

 

Đình Vũ Polyester Fiber Plant (PVTex) - one of 12 loss-making projects - has resumed operations. — Photo cafef.vn

HÀ NỘI — 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.

Deputy Prime Minister Vương Đình Huệ, 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 Hải Phòng, Việt Trung Steel Plant) had reported profits. DAP 1 Lào Cai Fertiliser Plant, Ninh Bình Fertiliser Plant, Hà Bắc Fertiliser Plant’s expansion and Dung Quất Shipyard Company had also reported positive changes.

Huệ said the Việt Nam National Oil and Gas Group (PetroVietnam) had resolved legal disputes arising in its engineering – procurement – construction (EPC) contracts at Đình Vũ 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, Quảng Ngãi bio-fuel plant has been outsourcing production to Saigon Sundries Investment And Trading Joint Stock Company (Tocontap), while Bình Phước 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: Đình Vũ Polyester Fibre Plant, Phương Nam Pulp Factory, Thái Nguyên Iron and Steel Joint Stock Corporation, Dung Quất Bio-ethanol Plant, Ninh Bình Fertiliser Plant, Hà Bắc Fertiliser Plant, DAP 1 Lào Cai Fertiliser Plant, DAP Fertiliser 2 Hải Phòng , Ethanol Bình Phước, Ethanol Phú Thọ, Dung Quất Shipyard and the joint venture between Quý Sa and Lào Cai Steel.

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

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