Vinacomin must shape up: Deputy PM

Hanoi (VNA) - Deputy Prime Minister Vuong Dinh Hue has asked ministries to supervise operations of Vietnam National Coal and Mineral Group (Vinacomin) after its poor production and business performance in 2015-16, according to Government portal chinhphu.vn.

Vinacomin’s business performance in the 2015-16 period declined compared to the previous years, as was evident in its various inefficient investment projects and fruitless calls for investment activities, according to the finance ministry’s financial monitoring report.

Hue has assigned the ministries of industry and trade, natural resources and environment and finance to strengthen supervision and tightly monitor the operations of Vinacomin, besides addressing its problems and petitions.

Vinacomin has been asked to complete its reports on subsidiaries’ arrangements, business performance evaluation, investment mobilising activities, corporate governance and restructuring orientation and submit it to the industry and trade ministry.

Concerning coal price negotiations for electricity and fertiliser production, the finance ministry has been asked to continue reviewing and analysing the input cost factors for coal production and consumption so as to determine the consultative prices, and submit a report to the Prime Minister before March 30.

The coal industry is significantly important to the economic development of the country in general and the northern province of Quang Ninh in particular, Hue said, adding that sustainable development of Vinacomin will help boost economic growth, ensuring energy security, social security and environmental protection.

Vinacomin’s revenue in 2015 decreased by around 2 trillion VND (88 million USD) compared to 2014, the finance ministry had earlier reported. Its pre-tax and after-tax profit decreased by 70.2 percent and 80 percent to around 840 billion VND and 430 billion VND, respectively.

In the first nine months of 2016, the group recorded a net loss of 73.7 billion VND from business activities, much higher than the previous year’s estimate of 4.5 billion VND. However, the total amount spent on bonuses in 2015 was over 550 million VND, which was divided among 16 managers of the corporation.-VNA