Vinachem flourishes through positive adjustments

October 02, 2023 | 08:00
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After impressive business results in the past two years, Vietnam National Chemical Group is close to meeting its 2023 targets.
Vinachem flourishes through positive adjustments
Business and productions targets were all exceeded in 2021 and profits were at a record high in 2022

The group (Vinachem) is expected to acquire VND54.5 trillion (nearly $2.3 billion) in industrial production, $2.4 billion in revenues, and $146.4 million in profit for the year. It reported record profits last year.

With close and timely attention and direction from the central government, ministries, and branches, Vinachem’s four weakest projects and businesses have seen positive changes. The project of DAP-Vinachem JSC has had stable production since 2017, with annual profits and no accumulated losses since January 2022. This project was also removed from the list of 12 loss-making mega projects.

In addition, Vinachem’s three fertiliser production units have maintained production, gradually increasing the average capacity to match the designed capacity. Specifically, after being renovated and expanded, the Ha Bac fertiliser plant still maintains safe and continuous operation, meeting market demand. In 2022, the plant’s profit was $74.68 million, simultaneously paying off $127 million of bank debt.

The Ninh Binh fertiliser factory has also maintained stable, efficient operations and proactively used working capital for production. In 2022, this company made a profit of $39 million.

The DAP fertiliser factory project No.2 in Lao Cai province has also met its production and business targets. In 2022, its profit was $152,000.

In 2018 the group was transferred from the Ministry of Industry and Trade to the Commission for Management of State Capital at Enterprises. At the time, the group did not have many advantages, managing four out of 12 of the ministry’s loss-making mega-projects. However, Vinachem was conscious of promoting its strengths and improving production and business efficiency.

Looking back on the difficult years of 2021 and 2022, Vinachem was proactive and flexible in its direction and management. The board of directors asked the subsidiaries to focus on producing basic chemicals, detergents, and antiseptics to ensure the production of medical oxygen products and detergents for prevention work.

South Basic Chemicals JSC successfully produced and supplied Cloramin B products, promptly responding to the prevention of COVID-19, and promoting the role of state-owned enterprises in disease prevention.

In 2021, Vinachem’s production and business targets all exceeded the plan and increased sharply compared to 2020. Specifically, industrial gross output reached $2.12 billion, about 120 per cent of initial expectations, and up 34.1 per cent on-year. The group reported a profit of $89.4 million, up by $179.32 million on-year.

Last year, Vinachem gained $2.59 billion in industrial gross output, equal to 125 per cent of the year’s plan, an increase of 22 per cent on-year. Consolidated revenue reached $2.6 billion, equal to 119 per cent of the year’s plan, an increase of 17 per cent on-year.

Consolidated profit was $263 million, an increase of $173 million on-year. The group contributed $98.7 million to the state budget, about 137 per cent of the initial plan. With these results, the group guaranteed jobs for 19,000 workers.

For 2023, Vinachem targets industrial gross output with a value of $2.29 billion, consolidated revenue of $2.4 billion, and consolidated profit of $146.4 million.

The group is implementing solutions to restructure the parent company and member units, ensuring that Vinachem has a reasonable structure, and can improve capacity, as well as business efficiency and competitiveness.

The group has coordinated with consulting units to carry out business valuations at 23 enterprises; organised public auctions at the stock exchange for 14 businesses; and had a partial successful divestment from nine enterprises.

Vinachem on a quest for interested investors Vinachem on a quest for interested investors

Vietnam National Chemical Group (Vinachem) is looking for interested investors to rearrange the project investment structure at the Rock Salt Exploitation and Processing Plant Project in the Lao People’s Democratic Republic.

Vinachem is looking for partners for salt mine in Laos Vinachem is looking for partners for salt mine in Laos

Vinachem announced that it is looking for investors to transfer its capital in the salt mine in Laos to domestic and foreign economic organisations.

By Phong Lan

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