Vinacomin enjoys rise in revenue

Trucks mine coal at Ha Tu Coal Joint Stock Company in northern Quang Ninh Province. Vinacomin estimates to earn a total revenue of over US$5 billion in 2014. - VNA/VNS Photo Nguyen Dan

This is a 14 per cent increase year-on-year, and three per cent higher than the yearly target, the Voice of Viet Nam (VOV) reported.

VOV quoted Vinacomin's statistics as saying that the revenue from coal exploitation was more than VND53.1 trillion ($2.47 billion). It also earned more than VND12 trillion ($558.1 million) in revenue from electricity production and VND6.47 trillion ($301 million) from minerals production.

Last year, the group's earned an estimated VND2.5 trillion ($116.3 million) in profits, contributing VND12 trillion ($558.1 million) to the State budget.

Vinacomin produced 37.4 million tonnes of coal during the period, with consumption of 35.5 million tonnes. Of this, coal exports comprised 5.94 million tonnes, while 29.6 million tonnes were sold in the domestic market.

During the period, Vinacomin gained VND1.6 trillion ($74.41 million) by divesting three non-core businesses in finance, insurance and the securities sector. It also issued five-year bonds worth VND3 trillion to ($139.5 million) mobilise capital for coal and minerals projects.

The group aims to produce 40.8 million tonnes of coal this year, with consumption of 38 million tonnes. Of the sum, coal exports will amount to 3 million tonnes, while 35 million tonnes will be for domestic consumption.

It also aims to earn more than VND114 trillion ($5.3 billion) in revenue.

Earlier, Vinacomin's Deputy General Director Nguyen Van Bien asked the government to lower taxes and duties, to help the group accumulate capital to develop its coal mines, while allowing it to export coal to Japan till 2015.

The rising taxes and fees, together with unchanged coal prices in the domestic market for the past three years, have caused difficulties for Vinacomin, he said. Bien added that the high taxes and fees will make the coal sector run out of capital for investment.