Ministry of Industry and Trade facing 12 loss-making projects
>> 18 major projects under reassessment
>> Ninh Binh fertiliser plant struggles to maintain operation
The Ministry of Industry and Trade has recently submitted a list of seven additional loss-making projects to the government, raising the ministry’s total number of failing projects to 12.
The projects are Dinh Vu Polyester Plant, Phuong Nam Pulp Factory, Thai Nguyen Iron and Steel joint stock Corporation, Dung Quat Bio-ethanol Plant, Ninh Binh Fertilizer Plant, Ha Bac Fertilizer Plant, DAP 1 Lao Cai Fertilizer Plant, DAP Fertilizer 2 Hai Phong , Ethanol Binh Phuoc, Ethanol Phu Tho, Dung Quat Shipyard and the joint venture between Quy Sa and Lao Cai Steel Plan.
Among those, the VND12 trillion (USD667 million) Ninh Binh Fertilizer Plant, has incurred a loss of VND2.7 trillion (USD199 million) after a four-year operation. High inventories forced the plant to halt operations since March 2016, affecting up to 400 workers.
The USD172-million DAP Fertilizer 2 Hai Phong project made total losses of USD14 million in the first nine months of 2016 alone. The firm’s leaders attributed the problem to higher product costs and slow sales.
Meanwhile, the Phu Tho Ethanol project, which was scheduled to be completed in 2010, has not yet been finished to date despite the fourth increase in capital investment, while Dung Quat Shipyard is also on the high risk of bankruptcy with accumulated losses of VND1.23 trillion.
The VND7-trillion (USD318 million) joint venture between Quy Sa and Lao Cai Steel Plant has also reported losses of hundreds of billions of VND after failing to compete with cheap steel ingots imported from China.
The Ministry of Industry and Trade has set up a steering committee to handle the 12 projects. The committee will conduct a comprehensive review and assessment of the issues that have arisen in the process of implementing these projects and identify the causes of their problems.
Collective and individual responsibilities will be clearly showed, and then specific solutions for each project will be proposed to the government.
At a recent meeting on solutions to these projects, Deputy Prime Minister Vuong Dinh Hue said of 12 projects, those that cannot be restructured will undergo divestment, auction, dissolution or bankruptcy. The state budget will not be used to cover the losses of such projects anymore.
The projects are Dinh Vu Polyester Plant, Phuong Nam Pulp Factory, Thai Nguyen Iron and Steel joint stock Corporation, Dung Quat Bio-ethanol Plant, Ninh Binh Fertilizer Plant, Ha Bac Fertilizer Plant, DAP 1 Lao Cai Fertilizer Plant, DAP Fertilizer 2 Hai Phong , Ethanol Binh Phuoc, Ethanol Phu Tho, Dung Quat Shipyard and the joint venture between Quy Sa and Lao Cai Steel Plan.
Ninh Binh Fertilizer Plant
Of these, five projects were invested in by the national oil & gas group PetroVietnam and four by the national chemicals corporation Vinachem.Among those, the VND12 trillion (USD667 million) Ninh Binh Fertilizer Plant, has incurred a loss of VND2.7 trillion (USD199 million) after a four-year operation. High inventories forced the plant to halt operations since March 2016, affecting up to 400 workers.
The USD172-million DAP Fertilizer 2 Hai Phong project made total losses of USD14 million in the first nine months of 2016 alone. The firm’s leaders attributed the problem to higher product costs and slow sales.
Meanwhile, the Phu Tho Ethanol project, which was scheduled to be completed in 2010, has not yet been finished to date despite the fourth increase in capital investment, while Dung Quat Shipyard is also on the high risk of bankruptcy with accumulated losses of VND1.23 trillion.
The VND7-trillion (USD318 million) joint venture between Quy Sa and Lao Cai Steel Plant has also reported losses of hundreds of billions of VND after failing to compete with cheap steel ingots imported from China.
The Ministry of Industry and Trade has set up a steering committee to handle the 12 projects. The committee will conduct a comprehensive review and assessment of the issues that have arisen in the process of implementing these projects and identify the causes of their problems.
Collective and individual responsibilities will be clearly showed, and then specific solutions for each project will be proposed to the government.
At a recent meeting on solutions to these projects, Deputy Prime Minister Vuong Dinh Hue said of 12 projects, those that cannot be restructured will undergo divestment, auction, dissolution or bankruptcy. The state budget will not be used to cover the losses of such projects anymore.
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