Business

PM approves plan for loss-making projects

The Prime Minister recently issued a decision outlining solutions for loss-making projects under the management of the Ministry of Industry and Trade. The aim is to turn them into efficient projects by 2020, at the latest, or let them be dissolved.
PM approves plan for loss-making projects ảnh 1Dung Quat Shipyard is among the loss-making projects to be restructured (Photo: VNA)

Hanoi (VNA) - The Prime Minister recently issued adecision outlining solutions for loss-making projects under the management ofthe Ministry of Industry and Trade. The aim is to turn them into efficient projects by 2020, at thelatest, or let them be dissolved.

According to thedecision, the Government will not pump any additional budget capital in theseprojects and their handling would be market-based.

With regard to projectsthat cannot be turned around, the Government is determined to let them declarebankruptcy or be dissolved.

A key measure to handlesuch projects would be to sell stake to private investors.

Accordingly, allchallenges faced by these projects must be resolved by 2020.

In addition,accountability would be determined to impose strict penalties.

The Government wouldreview policies to develop markets for products manufactured under theseprojects, such as bio-fuel, fertilisers, steel and ships, as well as applytrade safeguard measures in line with Vietnam’s international commitments.

Several tax regulationswould be revised to promote local industrial production, while debts of theseprojects would be restructured to create conditions for them to borrow moneyfrom banks to revive their operation.

Regarding four fertiliserplants in Ninh Binh, Bac Giang, Hai Phong and Lao Cai, privatisation anddivestment of State capital would be implemented after the projects recoveredand moved towards efficient operation.

[Government to establish agency to manage State assets]

The project of bio-fuelplants in Quang Ngai and Binh Phuoc provinces was required to resume operationsbefore the Vietnam Oil and Gas Group (PetroVietnam) divests from them.PetroVietnam would also withdraw capital from the bio-fuel plant in Phu Tho province.

For Thai Nguyen Steel andIron Plant’s expansion project’s phase 2, State capital divestment andrestructuring of the company would be prioritised. If this measure was notsuccessful, the project could be put up for sale or investment would be soughtfrom outside investors.

Dung Quat Shipyard wouldbe put up for sale or declare bankruptcy if the first option failed.

Similarly, Dinh VuPolyester Plant would be equitised or sold. If that failed, it would declarebankruptcy.

Phuong Nam Pulp Factorywould speed up its debt restructuring and sale of assets and inventory.

Meanwhile, issues at theQuy Xa Mine and Lao Cai Steel and Iron Plant would be handled to enhance theirefficiency.

The ministry’s statisticsrevealed that these projects incurred total losses of over 16 trillion VND (704.4million USD) as of the end of 2016 on investment of 63.6 trillion VND (2.8billion USD), with loans accounting for some 75 percent.-VNA
VNA
#loss-making projects #Ministry of Industry and Trade #divestment of State capital #Dung Quat Shipyard #Dinh Vu Polyester Plant #Phuong Nam Pulp Factory #updated Vietnam news #Vietnamplus #Vietnam News Agency
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