Vietnam: Three loss-making projects to be inspected

• Sep 26, 2017

HANOI — Minister of Industry and Trade Tran Tuan Anh has promulgated decision to conduct inspections at three loss-making projects under their management.

They include Lao Cai DAP 2 Fertiliser Plant, a subsidiary of Vietnam National Chemical Group (Vinachem), Phuong Nam Pulp Mill, a subsidiary of the Vietnam Paper Corporation (Vinapaco), and Dung Quat Shipbuilding Plant.

The three projects are among the ministry’s 12 loss-making mega-projects. Lao Cai DAP 2 Fertiliser Plant and Dung Quat Shipbuilding Plant have been operational but suffering losses. The Phuong Nam Pulp Mill stopped construction owing to surging costs and the lack of capital.

Statistics from the Government showed that the initial investment in the 12 projects had reached over VND43 trillion (US$1.89 billion). They were then approved to be increased to VND63.6 trillion. The ownership capital accounted for 22.6 per cent, while 74.6 per cent came from loans.

The total accumulated losses of the 12 projects by the end of last year was more than VND16.1 trillion, while their total assets were worth VND57.7 trillion, and the total debts were VND55 trillion.

Phuong Nam Pulp Mill was valued at VND1.71 trillion, which included its total assets and inventories. Its debts reached VND2.65 trillion.

The Vietnam National Oil and Gas Group has proposed to sell the Dung Quat Shipbuilding Plant or announcing bankruptcy for asset auction.

Last year, the ministry also conducted an inspection on Vinachem’s Ninh Binh Nitrogenous Fertiliser Plant. — VNS

Source: http://vietnamnews.vn/economy/394370/three-loss-making-projects-to-be-inspected.html#q3SDlg2G2HgqUvau.99