According to the Government's 2022 report on practicing thrift and combating waste, a number of underperforming and loss-making projects and enterprises have shown significant improvements in production and business operations.
Specifically, of the 5 projects for which the Politburo approved the principle of assigning the Vietnam Chemical Corporation (Vinachem) and the Vietnam Oil and Gas Group (PVN) to use their own legal capital to proactively implement the solution, one project, the DAP1 fertilizer plant in Hai Phong (DAP - Vinachem Joint Stock Company), has eliminated its accumulated losses and has been operating stably and profitably since 2017.
Another project showing many positive developments is the Dinh Vu Polyester Fiber Plant ( thuộc PVN). This plant has maintained maximum and efficient production operation of 27 fiber lines, with revenue covering variable costs and generating profit before fixed costs...
The production and business results in 2021 show that the total revenue of this project reached VND 301 billion (a 49% increase compared to the plan, and a 182% increase compared to 2020); profit before fixed costs is estimated at VND 17 billion; by the first quarter of 2022, the production volume of DTY yarn was 3,002 tons (reaching 91% of the first quarter of 2022 plan, a 49% increase compared to the first quarter of 2021).
Of the 7 projects, the remaining 3 are fertilizer production projects, including the Ha Bac Nitrogen Fertilizer Plant Renovation and Expansion Project; the Ninh Binh Nitrogen Fertilizer Plant Project; and the Lao Cai DAP Fertilizer Plant No. 2 Project.
These projects have maintained production and business operations; they have strived to master technology and gradually increase the average machine operating capacity compared to the designed capacity.
"Although the accumulated losses amounted to VND 13,394 billion as of June 30, 2022, the production and business results of the three projects and enterprises have improved since 2021 due to favorable market conditions," the report stated.
| Agencies and businesses have been and are continuing to finalize and report to competent authorities the plans for handling and restructuring the remaining 7 out of 12 underperforming projects and enterprises, including the restructuring plan for Ha Bac Fertilizer and Chemical Company, Ninh Binh Fertilizer Company, and Vinachem DAP No. 2 Company; and the plans for handling the TISCO and VTM projects, Dung Quat Shipyard, and Phuong Nam Pulp Mill. |
The second phase of the Thai Nguyen Steel and Iron Expansion Project has been underway for 14 years but remains unfinished. Many former leaders of Thai Nguyen Steel and Iron Corporation (TISCO) have faced legal troubles. Now, this project is facing a "critical moment of survival."
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