Unprofitable State projects show signs of recovery

The Ministry of Industry and Trade (MoIT) has reported some positive signs in the handling of 12 major State-owned projects that have long reported losses, as some have managed to resume operations after suspensions or even record profits.
Unprofitable State projects show signs of recovery ảnh 1DAP 1 Hai Phong fertiliser plant. After suffering losses in the past, the plant reported profits of 195.5 billion VND in 2018. (Source: vinachem.com.vn)

Hanoi (VNS/VNA) - The Ministry ofIndustry and Trade (MoIT) has reported some positive signs in the handlingof 12 major State-owned projects that have long reported losses, as some havemanaged to resume operations after suspensions or even record profits.

The information was released at a workingsession chaired by Deputy Prime Minister Vuong Dinh Hue with representatives ofthe ministry and the projects’ investors in Hanoi on March 27.

A report from the ministry showed that two ofthe projects managed to recover and report profits in 2018: DAP 1 Hai Phongfertiliser plant (195.5 billion VND or 8.4 million USD) and Vietnam– ChinaSteel Plant (469 billion VND).

Four other projects have gradually managed tostabilise production and reduce losses. In the first two months of the year, HaBac fertiliser plant reduced its losses by 30.6 billion VND compared with thesame period last year. DAP 2 Lao Cai fertiliser plant reduced losses by 10.1billion VND and Ninh Binh fertiliser plant by 44.5 billion VND.

Two projects resumed operations including Dinh Vupolyester fiber factory (PVTex) and Quang Ngai ethanol plant. Binh Phuocethanol plant also resolved issues and appears to be ready to restartcommercial operations.

Nguyen Phu Cuong, Chairman of the Vietnam NationalChemical Group (Vinachem), proposed removing DAP 1 Hai Phong eertiliserplant from the list of loss-making projects as has posted three years ofstable operations and met the MoIT’s criteria.

The ministry’s five criteria for moving projectsoff the list include finalising projects, problems and disputes withcontractors in engineering-procurement-construction (EPC) contracts; stableoperation and at least one profitable year. In addition, they must not haveoverdue debt continuously for a minimum period of three years at creditinstitutions and must comply with laws on tax obligations and budgetremittances. Finally, the projects must complete the tasks set out in theaction plan to handle weakness.

Deputy PM Hue agreed with the Vinachem’sproposal and asked MoIT to cooperate with the firm to remove the plant from thelist. This could help the project better mobilise capital.

Nguyen Dinh Phuc, General Director of the Vietnam–China Steel Plant, said the project has not completed tax and fee duties and iscontinuing to face difficulties in the first months of the year. Nevertheless,he expects the plant to be removed from the list soon.

EPC disputes are a common sticking point for theprojects. In most cases, contractors completed their work behind schedule,amassing further costs and flooding the projects with debt.

The Vietnam Oil and Gas Group (PetroVietnam) wasreported to have completely resolved legal disputes with contractors at PVTex,creating favourable conditions to restructure PVTex.

Le Manh Hung, PetroVietnam’s deputy generaldirector, said PVTex has operated its 10 fibre production lines stably,bringing in profits to offset production costs. It has worked with banks toarrange capital to restart the rest of the plant this year.

However, resolving legal disputes with EPCcontractors has not been easy for the remaining projects, especially Ninh Binhfertiliser plant and Thai Nguyen Iron and Steel plant.

Phuc said the Vietnam– China Steel plant wasunable to negotiate with its contractor and was awaiting instruction from theMinistry of Justice to resolve the issue.

Deputy Minister of Justice Phan Chi Hieu saidthe company had to clarify issues with the contractor to ensure benefits forthe project.

Deputy PM Hue said it was necessary to resolvethe difficulties before divesting State capital from the projects.

The Deputy PM said that if a project found itdifficult to negotiate with an EPC contractor, they could involve the Ministryof Justice.-VNS/VNA
VNA

See more

Visitors explore Vietnamese products at the sixth ANUGA Food and Beverage Exhibition. (Photo: Vietnam Trade Office in Brazil)

Brazilian firms eye Vietnam opportunities at Sao Paulo seminar

During the exhibition from April 8-10, Vietnamese firms displayed signature food and beverage products, including dried pho, instant noodles, canned food, chocolate-coated dried fruit, tea, coffee, and nutritious grains, connecting with Brazilian supermarket chains and distributors to reach 230 million consumers.

Deputy Prime Minister Ho Duc Phoc (R) and US Trade Representative Jamieson Greer. (Photo: VNA)

Vietnam, US to negotiate reciprocal trade agreement

US Trade Representative Jamieson Greer said the reciprocal trade agreement should include arrangements on tariffs and proposed that technical-level representatives from both countries start discussions immediately.

Authorised by the Prime Minister, Deputy Prime Minister Bui Thanh Son (right) hands over the decision to rename the Vietnam Oil and Gas Group on April 9. (Photo: VietnamPlus)

Vietnam Oil and Gas Group renamed Vietnam National Industry - Energy Group

With this new name, Petrovietnam reaffirms that it is no longer solely a traditional oil and gas enterprise. It now positions itself as a national hub for industrial development, service innovation, and energy security, and is committed to sustainable development, technological modernisation, and ensuring energy stability for the nation.

The Vietnamese delegation at the recent regular meeting of the World Trade Organisation (WTO) Committee on Rules of Origin. (Photo: VNA)

Vietnam shares practices in applying rules of origin on exports

Hien explained that rules of origin are a set of criteria used to determine the country where a product is manufactured (i.e. country of origin). These rules are especially important for goods produced using inputs from multiple countries, and require clearly defined methods and standards to identify the origin accurately.

At the business networking event (Photo: VNA)

VietCham Thailand connects Vietnamese, Thai businesses

VietCham Thailand aims to work as a key platform for companies to exchange ideas, seize opportunities, and tackle challenges together. It is also hoped to assist businesses in accessing markets, expanding partnerships, and beefing up economic cooperation between Vietnam and Thailand.

A delegation from Hung Yen province visits Xi’an GSR Energy Storage Technology company (Photo: Hung Yen Newspaper)

Prospects for Vietnam-China business cooperation broaden

Amid global economic restructuring and deeper regional cooperation, Vietnam–China economic and trade ties have grown significantly. with larger scale and major projects actively promoted, creating strong momentum for both nations' socio-economic development.

At the press conference to release the bank's annual economic publication Asian Development Outlook. (Photo: VNA)

Vietnam sees growth prospects amid global uncertainty: ADB

“Strong trade, a recovery in export manufacturing, and robust foreign direct investment fueled Vietnam’s economic growth in 2024,” said ADB Country Director for Vietnam Shantanu Chakraborty as quoted by the bank in its related news release.

Seafood processing for export (Photo: VietnamPLus)

Vietnam acts fast to shield seafood exports amid US tariff

In 2024, Vietnam’s seafood exports exceeded 10 billion USD, with key buyers including China, the US, Japan, the EU, and the Republic Korea. The momentum continued in the first quarter of 2025, with a value of 2.29 billion USD, rising 18.1% year-on-year

Illustrative image (Photo: VNA)

Measures sought to reach 65 bln USD in agro-forestry-fishery export

To achieve its goals, the Ministry of Agriculture and Environment has rolled out eight key tasks and solutions, focusing on accelerating administrative reform; advancing sectoral restructuring; promoting digital transformation and innovation; expanding domestic and international markets.

An overview of the meeting in Ho Chi Minh City on April 8 (Photo: VNA)

Measures needed to adapt to US tariffs: Experts

Experts held that businesses should seek new export markets and expand the domestic market, while viewing this challenge as an opportunity to restructure and redefine Vietnam's position in global trade, particularly in the US market.