Vinacomin must shape up: Deputy PM

Vinacomin’s business performance in the 2015-16 period reduced compared to the previous years, as was evident in its various inefficient investment projects and fruitless calls for investment activities, according to the finance ministry’s financial monitoring report.

Hue has assigned the ministries of industry and trade, natural resources and environment and finance to strengthen supervision and tightly monitor the operations of Vinacomin, besides addressing its problems and petitions.

Vinacomin has been asked to complete its reports on subsidiaries’ arrangements, business performance evaluation, investment mobilising activities, corporate governance and restructuring orientation and submit it to the industry and trade ministry.

Concerning coal price negotiations for electricity and fertiliser production, the finance ministry has been asked to continue reviewing and analysing the input cost factors for coal production and consumption so as to determine the consultative prices, and submit a report to the Prime Minister before March 30.

The coal industry is significantly important to the economic development of the country in general and the northern Quang Ninh Province in particular, Hue said, adding that sustainable development of Vinacomin will help boost economic growth, ensuring energy security, social security and environmental protection.

Vinacomin’s revenue in 2015 decreased by around VND2 trillion (US$88 million) compared to 2014, the finance ministry had earlier reported. Its pre-tax and after-tax profit decreased by 70.2 per cent and 80 per cent to around VND840 billion and VND430 billion, respectively.

In the first nine months of 2016, the group recorded a net loss of VND73.7 billion from business activities, much higher than the previous year’s estimate of VND4.5 billion. However, the total amount spent on bonuses in 2015 was over VND550 million, which was divided among 16 managers of the corporation.