MoIT to submit solutions for 12 loss-making projects
MoIT to submit solutions for 12 loss-making projects
The Ministry of Industry and Trade’s (MoIT) planning department has to submit solutions for each of the 12 major projects that have been delayed and/or are performing badly before Friday.
The ministry held a meeting with different groups and corporations on Monday to clarify and determine the specific responsibilities of various organisations and individuals connected with the 12 loss-making projects.
A few days ago, deputy minister Hoang Quoc Vuong had chaired a Steering Committee meeting to tackle the problems facing a number of under-performing projects and enterprises.
Vuong has asked the groups and corporations to review the ministry’s solutions to resolve the projects’ difficulties and choose the most feasible plan to submit to the committee. The focus should be on solutions relating to financial and monetary mechanisms, and market and business management.
The concerned agencies have been asked to submit figures relating to their financial reports on the projects, the shortcomings and proposed solutions.
The National Assembly (NA), in a resolution during its second session last November, named five projects that need to be reviewed, including the Dinh Vu Polyester Fibre Plant, with an investment of VND7 trillion (US$311 million) from Viet Nam Oil and Gas Group’s PetroVietnam Petrochemical and Textile Fibre Company; the VND2.2 trillion Dung Quat Bio-Ethanol Plant by PetroVietnam Central Biofuels JSC; Phase 2 of Thai Nguyen Iron and Steel Corporation’s (TISCO) production expansion project with a capital of VND8 trillion, Phương Nam Paper Mill and Ninh Binh Fertiliser Plant.
The Government also asked the ministry to add seven other projects that have incurred huge losses.
The other projects under the scanner are Ha Bac Fertiliser, DAP Fertiliser 1 Lao Cai, DAP Fertiliser 2 Hai Phong, Binh Phuoc Ethanol, Phu Tho Ethanol, Dung Quat Shipyard and the joint venture between Quy Sa Mine and Lao Cai Cast Iron and Steel Plant. All of these projects have suffered because of bad investment and management decisions by project owners, who are enterprises, groups and corporations under the ministry.
Of the 12 projects, those that cannot be restructured will undergo divestment, auction, dissolution or bankruptcy, as prescribed by law. The State budget will not be used to cover the losses of such projects anymore.
