CMSC tasked with dealing with 12 large-scale projects

The March 27 government meeting

Accordingly, the MoIT asked the CMSC to take responsibility to deal with the 12 projects, taking over the MoIT’s obligations at these state-owned enterprises this year.

Regarding the performance of the 12 projects, the MoIT’s representative revealed that some projects have been profitable or at least reduced losses since previous years, and were put into operation after long years of standstill.

Specifically, two of the six loss-making projects, including DAP 1 Haiphong fertiliser plant and Viet-Trung Mining and Metallurgy Co., Ltd., managed to turn a profit in 2018, making VND195.55 billion ($8.5 million) and VND469 billion ($20.4 million), respectively.

The first two months of 2019 also saw DAP 1 Haiphong fertiliser plant making VND12.047 billion ($523,800) of profit.

Four projects are still overcome by difficulties. For instance, in 2018, Ha Bac fertiliser plant narrowed its losses by VND266.2 billion ($11.6 million), while the losses of DAP 2 Lao Cai fertiliser plant shrank by VND288.48 billion ($12.5 million), Ninh Binh fertiliser plant's by VND10 billion ($434,800), and Dung Quat Shipbuilding Industry Co., Ltd. (DQS)’s by VND98.15 billion ($4.3 million).

Two out of three projects that were previously shut down, including Dinh Vu polyester fibre factory and Bio-Ethanol Dung Quat plant, have restarted operations. Binh Phuoc ethanol factory has been working on procedures to restart commercial operations as soon as possible.

Three half-finished projects, including Vietnam Paper Corporation, Phuong Nam pulp mill, and Phu Tho ethanol factory, are still awaiting government action to decide whether to continue or terminate operations.

According to the MoIT, the solutions for the projects are based on market principles, which means that all enterprises set themselves right through their own effort and the government has not injected capital to help them out. In addition, the government has just successfully withdrawn VND1 trillion ($43.5 million) from State Capital Investment Corporation (SCIC) and the second phase of Thai Nguyen Iron and Steel plant.

As of last October 31, the total outstanding credits of the MoIT hit VND20.943 trillion ($910.6 million), with credit in projects reduced by VND348 billion ($15.1 million) against last January 31.