A worker at Dinh Vu Polyester Fibre Plant (Photo: VNA)

Hanoi (VNA) – The Dinh Vu Polyester Fibre Plant of the Petrochemical and Textile Fiber Joint Stock Company (PVTEX) – a subsidiary company of the Vietnam Oil and Gas Group (PetroVietnam) - has to date resumed operation of 12 out of its 25 production lines so far.

The fibre plant is one of the 12 loss-making projects under the management of the Ministry of Industry and Trade. Its re-opening is in line with the Government’s directive to tackle shortcomings and weaknesses of some inefficient projects and enterprises.

According to PVTEX Chairman and General Director Dao Van Ngoc, the plant has earned 50.55 billion VND (2.17 million USD) from selling more than 1,300 tonnes of yarn since its operation was resumed on April 20, 2018..

Particularly, its draw texturised yarn (DTY) has been qualified to enter the markets of the US, the Republic of Korea, Thailand, and some European countries, while AnPoly yarn has won the favour of both domestic market and many other choosy countries.

At a working session with PetroVietnam leaders on June 24, a representative from An Phat Holdings, a partner of PVTEX, said that around 200 billion VND has been invested to restart operation of the 12 production lines.  

An Phat also arranged more than 400 billion VND for the re-operation of all production lines at Dinh Vu plant.

Earlier, the plant halted operations in September 2015 owing to a huge loss of 1.26 trillion VND and negative equity of 504 billion VND.

It was scheduled to restart in 2016 but failed to do so. Authorities would have considered bankruptcy if the equitisation of the enterprise had been unsuccessful.

PVTEX and An Phat Holdings signed a memorandum of cooperation on producing and trading Dinh Vu polyester fibre in April last year.-VNA