Vietnam rules out use of state funds to rescue ailing projects

Tuesday, 2018-02-27 10:44:49
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Ninh Binh Fertiliser Plant, one of the 12 ailing projects under the Ministry of Industry and Trade
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NDO - The Government will not use public funds to rescue 12 loss-making projects under the jurisdiction of the Ministry of Industry and Trade (MOIT), Deputy PM Vuong Dinh Hue has reiterated.

He told the ministry on February 26 that no additional capital will be provided for these projects and that any further measures to deal with them must be based on market principles.

According to MOIT Deputy Minister Hoang Quoc Vuong, progress has been made in restructuring these ailing projects and some have returned to profit while some have significantly reduced their losses.

At the same time, a number of projects have resumed operation after long periods of delay and suspension.

Deputy PM Hue stated that it is still too early to take such positive results for granted and the challenges remain enormous, therefore much more effort is needed to achieve the goal of bringing about fundamental changes to these projects.

He urged the ministry to improve productivity by applying technological innovations and slashing overcapacity.

At a National Assembly session in December last year, Minister of Industry and Trade Tran Tuan Anh said that the handling of these 12 loss-making projects is on the right track and pledged to provide radical solutions to their problems by 2020.