Vietnam’s coal giant cries for help as unsold stock nears 10mn tons


Updated : 06/21/2017 19:17 GMT + 7

Vietnam’s biggest coal and mineral enterprise has called on the government to offer preferential treatment to clear its massive unsold inventory, but was told to find thorough solutions to its own problems instead of crying for help.

State-run Vinacomin currently has 9.3 million metric tons of coal in unsold stock, and the problem will worsen as one of its biggest buyers, Vietnam Electricity (EVN), has plans to cut its order by two million tons this year.

The coal giant lamented at a meeting with a working team of the government in Hanoi on Monday that the order reduction from EVN could see some 4,000 Vinacomin employees lose their jobs.

Turning to Minister Mai Tien Dung, chairman of the Government Office, Vinacomin general director Dang Thanh Hai suggested that the government “mandate that EVN, as well as PetroVietnam, buy coal exclusively from Vinacomin.”

Hai also called on the government to issue a policy prioritizing the usage of domestically produced coal plus tax incentives to help the state-run coal company clear its unsold stock.

“Vinacomin should be allowed to export without a quota,” the general director said.

Responding to the cry for help of Vinacomin, Minsiter Dung said that on the one hand, the government would consider suitable policies to help Vinacomin with its huge unsold inventory.

“On the other hand, the company has to exert efforts to enhance its administrative management, reduce production costs and increase its productivity in order to boost economic effectiveness,” the Government Office chairman underlined.

Vinacomin reported VND53.53 trillion (US$2.36 billion) in Jan-June revenue, completing 50 percent of its full-year target.

The coal producer is expected to enjoy VND1 trillion ($44.05 million) in profit this year, contributing some VND6.3 trillion ($277.53 million) to the state budget.

Vinacomin has invested a combined VND198 trillion ($8.72 billion) in some 450 projects, with Minister Dung requesting that those investments be reviewed for efficiency.

“Vinacomin should focus on its restructuring process and developing effective business and investment plans to enhance itself,” the minister concluded.

This entry was posted in Năng lượng hóa thạch - fossil energy, Than - coal and tagged , , , by Trần Đình Hoành. Bookmark the permalink.

About Trần Đình Hoành

I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn. I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law. I have published many articles on national newspapers and radio stations in Việt Nam. In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship. Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam. I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN. I study and teach the Bible and Buddhism. In 2009 I founded and still manage on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development ( I study the art of leadership with many friends who are religious, business and government leaders from many countries. In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống). In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success". I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.

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