Failed projects to receive no more cash: Deputy PM

VNS Update: June, 08/2020 – 08:30

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The Dung Quất Bio-ethanol Plant in the central province of Quảng Ngãi, one of the 12 loss-making projects. — VNA Photo

HÀ NỘI — The State will not pump more money into 12 failing mega-projects under the management of the Ministry of Industry and Trade (MoIT), said Deputy Prime Minister Trương Hòa Bình in a recent meeting with high-ranking officials in Hà Nội.

Bình said the top priority was to prevent further loss to the State’s budget and projects that were no longer financially sustainable may be forced to file for bankruptcy or be dissolved.

At the meeting, he ordered project managers and governmental agencies to report on progress of resolving contract conflicts in regards to three Vinachem projects, a process which has been dragging on for years.

The Committee for Management of State Capital at Enterprises was charged to categorise the projects into three groups: projects on a path of recovery; projects under restructuring and financially unsustainable projects. The committee was told to hand in a report to Prime Minister Nguyễn Xuân Phúc on measures that must be taken to support the projects’ recovery.

Seven of the 12 projects are dealing with legal battles over contracts. As attempts to settle disputes have failed, some cases now must go before international courts.

Recovering State capital remains a challenging task as investors from the private sector have either shown little interest in loss-incurring projects or were unable to buy in due to ongoing legal disputes.

After years of struggling, few of the MoIT’s 12 failing mega-projects, which have cost the State’s budget more than a billion dollars, are profitable.

The 12 projects are Đình Vũ Polyester Fibre Plant, Phương Nam Pulp Factory, Thái Nguyên Iron and Steel Joint Stock Corporation, Dung Quất Bio-ethanol Plant, Ninh Bình Fertiliser Plant, Hà Bắc Fertiliser Plant, DAP 1 Lào Cai Fertiliser Plant, DAP Fertiliser 2 Hải Phòng, Ethanol Bình Phước, Ethanol Phú Thọ, Dung Quất Shipyard and the joint venture between Quý Sa and Lào Cai Steel. — VNS

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