Hai Phong fertiliser plant recommended for removal from watch list

Thursday, 2019-03-28 11:31:07
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Deputy PM Vuong Dinh Hue speaking at the meeting. (Photo: VGP)
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NDO - A proposal has been put forward to remove a fertiliser project in Hai Phong from the list of 12 major inefficient projects in need of close watch since it has been operating profitably for the past three years.

The suggestion was made by its parent company Vinachem at a meeting of the steering committee in charge of the 12 projects on March 27.

Vinachem, Vietnam’s national chemicals group, stated the plant posted profits of over VND195 billion (US$8.4 million) in 2018 and over VND12 billion (US$516, 000) in the first two months of this year.

At the meeting, Deputy PM Vuong Dinh Hue agreed with the proposal and asked the Ministry of Industry and Trade to complete the removal procedures.

He added that such a move will increase the project’s credit, making it easier for the plant to mobilise funds for its production.

In addition to the Hai Phong fertiliser project, the Viet Trung steel plant has also begun to operate at a profit.

Meanwhile four of the six currently operating projects, including three fertiliser projects and a shipyard, have seen their losses declining.

Among the three projects whose operations were halted, the Dinh Vu polyester fibre plant and the Quang Ngai biofuel plant have resumed production while resumption plans for Binh Phuoc biofuel is being formulated.

The remaining projects are facing legal issues with EPC contractors.

Deputy PM Vuong Dinh Hue asked the ministries and enterprises concerned to focus on resolving the contentious issues creatively and settle the projects with patience in order to reach agreements with the relevant parties in the most beneficial manner.