Accordingly, on March 26, Deputy Prime Minister Le Minh Khai, Head of the Steering Committee for handling shortcomings and weaknesses of a number of slow-progressing and ineffective projects and enterprises under the Ministry of Industry and Trade, surveyed the site and worked with the Ministry of Industry and Trade, the Paper Corporation, the People's Committee of Long An province and relevant ministries, agencies on the handling plan for the Phuong Nam Pulp Mill Project.
Deputy Prime Minister Le Minh Khai, Head of the Steering Committee for handling shortcomings and weaknesses of a number of slow-progressing and ineffective projects and enterprises in the Industry and Trade sector, spoke at the meeting.
"Injecting more money" to improve the production capacity of paper pulp from jute to other materials is also not feasible.
At the meeting, the representative of Vietnam Paper Corporation affirmed that, technically, the Phuong Nam Pulp Mill Project is impossible to overcome because the production line of pulp from jute is "special". In the world, only Vietnam has it. This technology goes from the "laboratory straight to reality", is not suitable and therefore cannot operate.
So is it possible to convert the raw material for pulp production from jute to wood? In response to this question, Vietnam Paper Corporation said that technically it is "yes", but it needs to add about 1,000 billion VND in capital to improve the production capacity of pulp from acacia and eucalyptus. However, thermomechanical paper products are mainly used for printing newspapers (low market demand), and have a short shelf life, so they are difficult to export... Therefore, the option of "pumping more money" to improve the production capacity of pulp from jute to other raw materials is also not feasible.
Besides, in terms of environment, this project is located right at the source of Vam Co River, the flow is not large, so the wastewater is difficult to drain quickly, easily creating a risk of pollution for Long An province and localities in the area, so the project should not continue.
According to the representative of Vietnam Paper Corporation, due to the "special" nature of this production line, it is difficult to liquidate. Therefore, it is necessary to organize valuation and auction for each equipment cluster, or "in the end" then liquidate it.
Deputy Prime Minister Le Minh Khai observes the project model.
The representative of the Ministry of Planning and Investment said that if the project cannot be implemented, it must be handled according to the provisions of the law. The proposed plan of the Ministry of Industry and Trade must clarify debts and debt settlement solutions; handle assets on land and land-related issues.
Vietnam Paper Corporation must develop a plan for asset liquidation, including specific solutions to handle related issues. It is recommended that competent state agencies issue a decision to terminate the project. On the local side, it is necessary to adjust planning and adjust land use purposes, etc.
On the local side, the Long An Provincial People's Committee requested the Steering Committee to report to the competent authority to consider terminating the project for handling in accordance with the provisions of law. On that basis, ministries, creditors and localities "sit together, look directly at reality" to reach a common voice to handle the project. Based on the project and local reality, Long An province proposed to convert the project into an ecological urban area, high-tech agriculture.
At today's meeting, all opinions agreed to stop implementing the project.
Agreed to stop project implementation
In his directive speech, Deputy Prime Minister Le Minh Khai stated: Because the solutions proposed by the Ministry of Industry and Trade are not clear, the handling of the issue has been "still struggling and not being able to be resolved".
He requested the Ministry of Industry and Trade, in the proposed options, to clarify technical and financial solutions, clearly distinguish between assets and land, legal issues, etc., and to base on reality to propose the final option to the Steering Committee.
At the meeting, all opinions agreed to stop the project. In order to have an effective, legal solution to completely handle this project, the Ministry of Industry and Trade is requested to coordinate with localities and relevant agencies to discuss, analyze, calculate, and propose a "final solution".
Deputy Prime Minister Le Minh Khai inspected Phuong Nam Pulp Mill.
The plans must clarify the solution for handling assets on land, debt obligations, land-related issues, etc. For handling production lines, machinery, and equipment, careful calculations must be made to achieve the highest possible efficiency. If the entire production line cannot be sold, then each part must be calculated, etc.
For Long An province, if the project is terminated, the province will reclaim and manage and use the land according to the provisions of the Land Law and local land use planning.
In particular, the Deputy Prime Minister requested the Ministry of Industry and Trade to coordinate with ministries, branches, localities and relevant agencies to submit to the Steering Committee before April 15, 2023, so that the Steering Committee can submit to competent authorities for consideration and decision.
Deputy Prime Minister Le Minh Khai: Emphasized the spirit of handling projects must comply with legal regulations, ensuring solutions must be public, transparent and fair among relevant parties, when facing difficulties, "we must sit together to agree on how to handle them in the spirit of sharing benefits and risks",...
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