While some of the 12 loss-making projects have managed to turn around, some of them are still wallowing in difficulties. Most of the 12 notorious loss-making projects are still in limbo According to the latest information published by the Ministry of Finance, to date, two of the 12 loss-making projects, namely DAP 1 Haiphong fertiliser plant and the complex of Quy Xa iron ore mining and quarrying project and Lao Cai iron and steel plant, now operate at a profit. Besides, five other projects are making efforts to be removed from the list. These include Ha Bac, Ninh Binh, and DAP 2 Lao Cai fertiliser plants, Dung Quat Shipbuilding Industry Co., Ltd., and Dinh Vu polyester fibre factory. Meanwhile, the Binh Phuoc ethanol biofuel project and Bio-Ethanol Dung Quat plant have suspended operations after defaulting on their debts. As of December 31, 2017, the total debts of the 12 loss-making projects increased by VND3.44 trillion ($150.8 million) to VND58.5 trillion ($2.56 billion), almost all of which is threatening to become bad debts. The remaining three are projects which have yet to finish construction. Vietnam Paper Corporation (Vinapaco) is seeking approval to apply a 10 per cent discount to increase the chances of auctioning off Phuong Nam Pulp Mill, the first of the three. Meanwhile, the government and agencies are looking for solutions to divest from Phu Tho bio-fuel plant and Thai Nguyen iron and steel plant-phase 2, while simultaneously looking for strategic investors for these two projects. Notably, the prime… [Read full story]
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