Workers at South Chemicals Joint Stock Company package yellow phosphorus products in Lao Cai Province. — VNA/VNS Photo Hong Ky

HA NOI (Biz Hub) — The Viet Nam National Chemical Group (Vinachem) is targeting a 7.2 per cent increase in its industrial production value to more than VND45 trillion ( US$2.14 billion) and a similar rise in revenues to over VND49 trillion ($2.33 billion) this year.

In 2014, the group had a production value of roughly VND42 trillion ($2 billion) and revenues of VND46 trillion ($2.19 billion), up by 2.2 per cent and five per cent respectively over the previous year.

Its export turnover in 2014 was $231 million, the group reported.

At a January 16 conference in Ha Noi , Vinachem General Director Nguyen Gia Tuong said the 2014 figures were lower than expected. Three of its 29 affiliates suffered losses while some others reduced production, affecting employees' income, he said.

To realise its 2015 goals, the group plans to boost its subsidiaries' performance, step up restructuring, and accelerate key projects like expansion of the Ha Bac Nitrogen Fertilizer Plant and the building of antibiotic material and ammoniac factories, said Nguyen Anh Dung, Chairman of the group's member council.

It will also embark on development plans designed for key products as well as the group as a whole, he said

He asked the Ministry of Industry and Trade to grant an exploitation licence to the Apatit company for 2016-2020 so that it can get enough ore for its fertiliser manufacturing plants.

Nguyen Duy Khuyen, general director of Lam Thao Fertilizers and Chemicals Joint-Stock Company, the highest income earner of the group, proposed that the Government exempts fertiliser from value added tax.

Currently, the production cost of locally-made fertilisers like urea and DAP is increasing sharply because there is no VAT deduction. With cheap imported fertilizers in the market, local producers and traders will continue to struggle and suffer losses if they are not given any tax breaks, Khuyen said. — VNS