Three loss-making projects to be inspected

September 25, 2017 | 14:26

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Minister of Industry and Trade Trần Tuấn Anh has promulgated decision to conduct inspections at three loss-making projects under their management.

Dung Quất Shipbuilding Plant is one of three loss-making projects which will be given inspection. — Photo zing.news.vn

They include Lào Cai DAP 2 Fertiliser Plant, a subsidiary of Việt Nam National Chemical Group (Vinachem), Phương Nam Pulp Mill, a subsidiary of the Việt Nam Paper Corporation (Vinapaco), and Dung Quất Shipbuilding Plant.

The three projects are among the ministry’s 12 loss-making mega-projects. Lào Cai DAP 2 Fertiliser Plant and Dung Quất Shipbuilding Plant have been operational but suffering losses. The Phương 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 VNĐ43 trillion (US$1.89 billion). They were then approved to be increased to VNĐ63.6 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 VNĐ16.1 trillion, while their total assets were worth VNĐ57.7 trillion, and the total debts were VNĐ55 trillion.

Phương Nam Pulp Mill was valued at VNĐ1.71 trillion, which included its total assets and inventories. Its debts reached VNĐ2.65 trillion.

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

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

VNA

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