Vinachem sets high targets despite poor outlook

Vinachem sets high targets despite poor outlook

Viet Nam National Chemical (Vinachem) Group announced ambitious production and business targets for the end of the year despite the gloomy global economic outlook.

The group said it expected to gain VND23.5 trillion (US$1.11 billion) in production value in the second half of this year.

It also planned to make VND23.9 trillion ($1.13 billion) in turnover and VND1.8 trillion in profit during the period, the group said.

Chairman of Vinachem's management board Nguyen Anh Dung said that to reach those targets the group must better exploit export outlets while continuing to bolster sales in the domestic market and more effectively working with business partners.

Vinachem general director Nguyen Dinh Khang said the group's business affiliates and subsidiaries should take measures to reduce production costs by increasing the effectiveness of their co-operation.

Bui The Chuyen, head of Vinachem Business Planning Department, said that during the first half of this year, the group's production value rose by 10 per cent year-on-year to VND20 trillion ($952.38 million), while turnover rose by 15.5 per cent to VND22.6 trillion.

In the first six months, the group reached 45 per cent of its annual profit target of VND1.445 trillion, he said.

The group sold 2 million tonnes of fertiliser and 160,000 tonnes of chemical products in the domestic market during the first half of this year.

However, in the first six months, Vinachem's production growth lagged behind the national average, while some of its subsidiaries suffered from over-stocked inventories, according to the group

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