Vietnam adopts plan to handle 12 loss-making industrial projects

The 12 projects are run by companies under the Ministry of Industry and Trade and have so far caused huge losses to the State budget.

The government aims to help these enterprises end their loss-making operations and recover as much of the State capital as possible by 2020, with various measures including allowing them to file for bankruptcy.

For the four fertiliser production projects, in Ninh Binh, Ha Bac, Hai Phong and Lao Cai, measures will be taken to improve their performance, after which the government will divest its capital from these facilities through equitisation.

For the Quang Ngai biofuel project, the priority option is to restart the plant before its owner, PVN, transfers it to another company or divests from the project.

For the Phu Tho biofuel project, transfer or disinvestment is the primary choice before other options will be considered, such as continuing to implement the project or halting the project and allowing it to go bankrupt.

The Binh Phuoc biofuel project will follow a similar path as that of the Quang Ngai project but, if the plan fails, the government will consider leasing or selling its assets.

For the Thai Nguyen Steel Plant expansion project, the priority is to divest State capital and restructure the Thai Nguyen Steel Company. Other options include selling the project or calling for more investment into the project.

For the Quy Xa iron ore mining and Lao Cai steel projects, action will be taken to deal with the difficulties facing the two projects so that they can continue to be implemented.

For the Dung Quat Shipyard and the Dinh Vu polyester fibre projects, they will be allowed to go bankrupt if efforts to revive them are not successful.

Finally, for the Phuong Nam pulp mill, all of its assets and remaining stockpiles will be sold, while its owner the Vietnam Paper Company will continue to focus on recovering the project's debts.

In addition to dealing with these projects economically, investigations and audits will be launched to establish misconduct at these projects, whilst naming the individuals and organisations who are held accountable and completing criminal procedures in line with the law.

(Source: NDO)