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The Minister of Industry and Trade Tran Tuan Anh, authorized by the Prime Minister has reported to National Assembly deputies on the situation and results of handling the shortcomings and weaknesses of projects and enterprises with delayed progress and ineffectively operated under management by the Ministry of Industry and Trade.

Reducing losses and gradually operating

According to the Ministry of Industry and Trade, after over 1 one year of handling, currently, 2 of 6 plants that previously had production losses, have operated business productions with profit (Including: Hai Phong DAP No. 1 Fertilizer Plant Project and Quy Xa Iron Ore Mining and Quarrying Project; Lao Cai Iron and Steel Plant (Viet- Trung Steel Plant Project), the 4 remaining projects have gradually reduced losses and their business productions are gradually stabilizing (Including: Ninh Binh Nitrogenous Fertilizer Plant, Ha Bac Fertilizer Plant, DAP No. 2 Lao Cai Plant and Dung Quat Shipbuilding Company).

Among the 3 projects that were suspended for business production, currently, a part of a factory production operation was resumed (Dinh Vu Polyester Fibre Factory Project).

For the 3 projects that have been uncompleted, Phuong Nam Paper Pulp Mill Project is implementing on sale of all its fixed assets and inventories; the remaining two projects are actively taking measures to complete the projects and be put into use (Phu Tho bio-fuel plant project is seeking partners for investment to continue to implement the project); The project for expanding the second phase of the Thai Nguyen Iron and Steel Plant in implementing the plan of divestment to create the initiative for investors in the project.

The important contents that the Ministry of Industry and Trade emphasized in the report, included: the handling of projects, enterprises implemented in accordance with the principles of market mechanism; autonomy and self-responsibility of enterprises. The State has not provided more capital to projects, the Government and the Government’s Steering Committee have directed to implement the successful withdrawal of VND 1,000 billion from the capital contribution of the State Capital Investment Corporation (SCIC) on the project for expansion of the second phase of the Thai Nguyen Iron and Steel Plant.

There are enterprises gaining interest

The Ministry of Industry and Trade also reported on the specific situation in the projects and enterprises. Accordingly, 6 projects and enterprises are operating production and business, some projects for 2017-2018 have started profitable business.

For example: Hai Phong DAP No. 1 Fertilizer Plant Project in 2016 lost VND 420 billion. In 2017, its profit was VND 14.8 billion; In the first quarter of 2018, its profit was VND 15.8 billion (the first quarter of 2017, it lost VND 37.6 billion); In the first quarter of 2018, the estimated turnover of Dung Quat Shipbuilding Company was VND 73.78 billion, reaching 98.62% compared to the estimate; contributed VND 2.28 billion to the State budget. Until the end of 2016, Viet-Trung Steel Plant Project lost over 1,000 billion. In 2017, profit before tax was VND 423 billion. As of the end of the first quarter of 2018, the profit was estimated at VND 319 billion, reduced accumulated losses to VND 446 billion and contributed VND 140 billion.

For 3 projects and enterprises that were stopped production, have also changed. For Dinh Vu Polyester Fibre Factory Project, after nearly 31 months of stopped production, as of 10th April 2018, 3 production lines were resumed. The Factory is expected that it will operate all 9 production lines of spinning workshops in December 2018. The Binh Phuoc bio-fuel plant project is expected to resume its operation in the second quarter 2018.

Regarding the 3 uncompleted construction projects: For the Phuong Nam Paper Pulp Mill Project, the Ministry of Industry and Trade has worked with relevant ministries and sectors to finalize the auction plan and submit it to the Prime Minister for approval to deploy the second auction after the first failed auction. For the Phu Tho bio-fuel plant project, this is an uncompleted construction investment project, currently, Petro Vietnam Bio-Fuels Joint Stock Company has implemented many plans to seek partners to continue to deploy the project under the principle that the cooperating partners will contribute all the sufficient capital to implement and complete the project. For the project for expansion of the second phase of the Thai Nguyen Iron and Steel Plant, after the successful State divestment of projects, the additional funds will be mobilized to continue to implement the project.

Specifying responsibility of violated teams and individuals

According to the Ministry of Industry and Trade, together with the overall review and assessment of the current situation, causes and deployment of solutions and plans to handle projects and enterprises, the inspection, audit and investigation has been actively and urgently implemented. Thereby, all 12 projects and enterprises have been inspected and audited at different levels to detect violations in each project and enterprise. Accordingly, specifying responsibility of relevant teams and individuals and strictly handling in accordance with provisions of the law.

The Party Committee of Central Business Block has disciplined in the form of reprimands for violations and shortcomings by the Standing Party Committee of Vietnam National Chemical Group for the term 2005-2010 and 2010-2015, in accordance with the conclusion at the 17th session of the Central Inspection Committee on 18th September 2017.

For violation individuals of PetroVietnam Oil Cooperation, the Central Inspection Committee has decided to dismiss the Secretary and Deputy Secretary of PVN Party Committee and management positions for 2010-2015 for 2 individuals; expelled from the Party 1 individual, and reprimanded 1 individual who is the former Secretary of Party Committee, Chairman of PVN Group; disciplined, reprimanded and dismissed the position of Politburo Member of Term XII, and expelled from the Party 1 individual.

For individuals of Vietnam’s Textile and Garment Group, all members of Vinatex's Board of Directors period 2008-2014 were strictly criticized and draw experience.

For individuals of Vinam National Chemical Group (Vinachem), the 17th session, the Central Inspection Committee issued a notice requesting the Secretariat to consider and discipline 1 individual who is the former chairman of Vinachem.

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On 17th November 2017, the Prime Minister issued a decision on discipline for 1 individual by dismissing the Chairman of Vinachem's Member Council: Disciplined all positions in the Party; for 1 individual who was the Vinachem's former Secretary of Party Committee, and the former chairman of the Board of Directors and former chairman of Member Council; reprimanded 2 individuals who were the Vinachem's former Secretary of Party Committee and the former chairman of the Board of Directors, and 1 individual who was the Vinachem's former Deputy Secretary of Party Committee and the former General Director.

For individuals related to the case “violating the State’s regulations on economic management causing serious consequences at Petrovietnam Petrochemical and Textile Fiber Joint Stock Company (PVTex)” , 5 individuals were prosecuted for violating the state’s economic regulations causing serious consequences and 4 individuals were temporarily arrested, and 1 individual, the former General Director of PVTex, was issued an arrest warrant.