Business

Loss-making projects to be resolved in 2020

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.
Loss-making projects to be resolved in 2020 ảnh 1Dinh Vu Polyester Fiber Plant (PVTex) - one of 12 loss-making projects - has resumed operations. (Photo cafef.vn)

Hanoi (VNS/VNA) - Twelve delayed or loss making projects under the Ministryof Industry and Trade (MoIT) would be resolved by 2020, according to theministry’s Planning Department.

Deputy Prime Minister Vuong Dinh Hue, head of a steering committee set up tohandle these projects, said the ministry had completed 75 percent of thetargets set under a plan for 2017-2019.

Two of the 12 projects (DAP Fertiliser 2 Hai Phong, Viet Trung Steel Plant) hadreported profits. DAP 1 Lao Cai Fertiliser Plant, Ninh Binh Fertiliser Plant, HaBac Fertiliser Plant’s expansion and Dung Quất Shipyard Company had alsoreported positive changes.

Hue said the Vietnam National Oil and Gas Group (PetroVietnam) had resolvedlegal disputes arising in its engineering – procurement – construction (EPC)contracts at Dinh Vu Polyester Fiber Plant (PVTex) so it would not have to payfees up to 13 million USD, creating a foundation to restructure PVTex.

In addition, Quang Ngai bio-fuel plant has been outsourcing production toSaigon Sundries Investment And Trading Joint Stock Company (Tocontap), while BinhPhuoc Bio-fuel plant had completed its repair work and was ready to restartoperations.

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 toresolve these issues and reduce production costs and improve efficiency, ratherthen waiting for Government support.

The National Assembly, in a resolution issued in November 2016, named 12loss-making projects under the management of the industry and trade sector: DinhVu Polyester Fibre Plant, Phuong Nam Pulp Factory, Thai Nguyen Iron and SteelJoint Stock Corporation, Dung Quat Bio-ethanol Plant, Ninh Binh FertiliserPlant, Ha Bac Fertiliser Plant, DAP 1 Lào Cai Fertiliser Plant, DAP Fertiliser2 Hai Phong, Ethanol Binh Phuoc, Ethanol Phu Tho, Dung Quat Shipyard and thejoint venture between Quý Sa and Lao Cai Steel.

Of these, five are under PetroVietnam and four belong to the national chemicalscorporation Vinachem.-VNS/VNA
VNA
#delayed or loss making projects #Ministry of Industry and Trade #resolved #Planning Department #Deputy Prime Minister Vuong Dinh Hue #Vietnam National Oil and Gas Group (PetroVietnam) #legal disputes #engineering – procurement – construction (EPC) contracts #Dinh Vu Polyester Fiber Plant (PVTex) #Vietnamplus #Vietnam News Agency
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