Removing difficulties for delayed projects of state-owned enterprises

VCN - In many directions, the Prime Minister has requested to completely handle the backlog problems and projects that have lasted for many years in state-owned enterprises.
State-owned enterprises expand production and export State-owned enterprises expand production and export
Positive changes in outward investment of state-owned enterprises Positive changes in outward investment of state-owned enterprises
Removing difficulties for delayed projects of state-owned enterprises
Prime Minister Pham Minh Chinh inspects the reality of the Phase 2 expansion project of Thai Nguyen Iron and Steel Factory in July 2022. Photo: VGP

Requires definitive handling of outstanding issues

Reporting at the Prime Minister's meeting with the Commission and 19 economic groups and corporations under its control in March 2023, the Committee for the Management of State Capital at Enterprises said that a number of tasks which although there is no longer a long backlog as before, the time limit for settlement is not guaranteed as prescribed; notmuch focus on giving strategic orientations and development plans to promote and orient enterprises to promote existing resources; there is no effective coordination mechanism with line ministries directly related to and affecting the operation of enterprises.

The report on verification of socio-economic development and state budget in 2022 and the first months of 2023 of the National Assembly's Economic Committee at the 5th session, the ongoing 15th National Assembly also emphasized that the restructuring, equitization of state-owned enterprises, arrangement and renewal of public non-business units have not been satisfactory. The role of state-owned economic groups has not been well promoted in large works and projects.

At the beginning of last May, Directive 12/CT-TTg of Prime Minister Pham Minh Chinh on tasks and solutions to renovate the operation of the Committee for State Capital Management at Enterprises and improve operational efficiency, promoting investment resources of 19 economic groups and state-owned corporations frankly pointed out, the Commission and 19 economic groups and state-owned corporations still have shortcomings and limitations. In particular, economic groups and state-owned corporations still need to actively promote to full effect the resources of capital and assets assigned by the State, especially in speeding up the progress of large and important investment projects. Very few new projects have been started in recent periods.

Faced with this situation, the Directive requires the above-mentioned units to handle and complete the final settlement of backlog problems that have lasted for many years for projects and enterprises such asthe production expansion project of phase 2 of Thai Nguyen iron and steel factory, QuyXa iron ore mining and selection project and Lao Cai iron and steel factory project, Dung Quat Shipbuilding Industry One Member Limited Liability Company (DQS).

Calculating and developing a plan to overcome difficulties

The Committee for Management of State Capital at Enterprises had many working sessions, giving directions to restore operations for projects and enterprises that are still in difficulty.

For example, regarding the DQS project, according to a report by the Vietnam Oil and Gas Group (Petrovietnam), after receiving it from the Vietnam Shipbuilding Industry Group (Vinashin) from July 2010, the Group has re-implemented the project of DQS structure. From 2010 to now, 182 ships have been repaired, built or converted by DQS with 68 projects in the industry and 30 foreign projects with total revenue of over VND 8,000 billion. However, DQS is losing more than VND 2,600 billion due to the period before handing over.

Petrovietnam said that it had calculated options to overcome difficulties such as converting the valuation of DQS to auction properties; DQS bankruptcy plan in accordance with the law; continue to restructure DQS or establish a new unit on the basis of transferring the assets and human resources of DQS and liquidating the existing ones.

At a recent working session on the DQS project, Vice Chairman of the Committee Ho Sy Hung said that units must separate and remove all obstacles to DQS in order to have a long-term development project. On the basis of resolutely handling according to market principles and mechanisms, with the goal of solving problems and minimizing damage to the State, Petrovietnam needs to develop a plan to overcome difficulties and needs a comparison, comparing between the options, it is necessary to calculate and forecast the market before making a decision.

Similarly, the Phase 2 expansion project of Thai Nguyen Iron and Steel Factory (TISCO 2) is a key investment project invested by Thai Nguyen Iron and Steel Joint Stock Company (TISCO) and Thai Nguyen Iron and Steel Corporation Limited—Industrial Science of Metallurgy China (MCC) as the general contractor. The project started in September 2007 and is expected to be completed after 30 months, but it has not yet been implemented.

According to the Committee for Management of State Capital at Enterprises, this agency has drastically directed the State Capital Investment Corporation (SCIC), Vietnam Steel Corporation (VNSTEEL) and TISCO to discuss with MCC organizing negotiations in order to agree on a plan to definitively settle disputes/encumbrances of the EPC contract in the spirit of "harmonious benefits, shared risks". As a result, MCC sent a delegation to work directly in Vietnam to survey, evaluate, and discuss with relevant Vietnamese authorities and businesses on the TISCO 2 Project.

Previously, the Committee for the Management of State Capital at Enterprises also gave instructions to find a solution and remove difficulties for the project of mining and selecting iron ore from QuyXa mine, the Iron and Lao Cai Steel Plant (VTM Project). According to the assessment, VTM is a project with many incentives and advantages, especially in terms of raw materials as well as support mechanisms and policies. However, the performance could be better. Up to now, after more than seven years of operation, the Company has hada serious financial imbalance and a large accumulated loss.

Therefore, the representative of the Committee's leadership suggested that the joint venture parties need to be fully and deeply aware of their responsibilities for the existence of VTM; must participate in supporting VTM to restore production and business on the basis of respecting the joint venture contract, investment license and legal regulations. At the same time, it is necessary to make the most of all favorable conditions of the project to restart the Lao Cai iron and steel factory operation as soon as possible, ensuring efficiency.

By Huong Diu/Bui Diep

Related News

Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
Amending the Law to create the best conditions for state-owned enterprises

Amending the Law to create the best conditions for state-owned enterprises

VCN - So far, more than a dozen seminars and discussions have been held to solicit opinions on the draft Law on Management and Investment of State Capital in Enterprises. This is a complex bill, with a large impact and many issues to be discussed, it has attracted great attention from management agencies for the sustainable development of the state-owned enterprise (SOE) sector.
Revise Law to promote autonomy, and self-determination of the state-owned enterprises

Revise Law to promote autonomy, and self-determination of the state-owned enterprises

VCN - One of the issues of concern when the Ministry of Finance consults on the new draft law on management and investment of state capital in enterprises, is to increase autonomy and reduce compliance conditions for state-owned enterprises.
Reviewing policies when state-owned enterprises are not profitable

Reviewing policies when state-owned enterprises are not profitable

VCN - Because funding for electricity supply goals, Vietnam Electricity Group (EVN) is not yet profitable, the EVN’s representative proposed that the draft Law on State Capital Management and Investment in Enterprises should take into account separate policies for enterprises like EVN.

Latest News

Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.

More News

U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
HCMC: Domestic revenue rises, revenue from import-export activities begins to increase

HCMC: Domestic revenue rises, revenue from import-export activities begins to increase

VCN - The results of State budget revenue in HCMC in the first 10 months of 2024 are estimated to increase by 10% over the same period last year, of which the highlight is that revenue from import-export activities has begun to increase.
Effectively control fiscal and monetary policy : Deputy Prime Minister and Minister Ho Duc Phoc

Effectively control fiscal and monetary policy : Deputy Prime Minister and Minister Ho Duc Phoc

VCN - Monetary policy and fiscal policy are the driving force for economic development, so that there has been effective coordination, Deputy Prime Minister and Minister of Finance Ho Duc Phoc.
Seaport stocks surge amid positive sector outlook

Seaport stocks surge amid positive sector outlook

During the trading session on 12 November, while the VN-Index fell for the fourth consecutive session to 1,244 points, several seaport and shipping stocks such as MVN (VIMC), VOS (Vietnam Shipping), and GMD (Gemadept) maintained upward momentum.
Read More

Your care

Latest Most read
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - According to the State Capital Management Committee at Enterprises, to date, the country has six hundreds and seventy one SOEs including 6 economic groups, 53 state-owned corporations and 19 LLCs operating under the parent-subsidiary model.
Mobile Version