MoIT’s projects increase losses

Wednesday, May 09, 2018 08:25

Ninh Binh fertilizer plant - one of 12 loss-making projects under the management of the Ministry of Industry and Trade. — Photo

Ten out of 12 loss-making projects under the management of the Ministry of Industry and Trade (MoIT) have continued falling in the negative numbers, the ministry’s report said.

According to the report sent by MoIT to the National Assembly (NA) delegates, after a year of implementing solutions following a request from the NA in 2016, some of the projects have shown positive results.

The Quy Xa iron ore mining and quarrying project, the Lao Cai iron and steel plant, and the DAP 1 Hai Phong fertilizer plant have all reported rising profits and falls in accumulated losses.

Loans from commercial banks had decreased by VND193 billion, resting at VND20.8 trillion as of January 31 this year.

However, the ministry said the 10 projects will face difficulties in paying principles and interest to the Viet Nam Development Bank (VDB), and other lenders. Their accumulated losses were VND18.7 trillion at the end of last year, up VND2.6 trillion over 2016.

As of December 31, 2017, the 12 inefficient projects had a total equity of VND33.41 billion, down VND4 trillion over the same period in 2016, while their assets and debts were VND58 trillion and VND58.5 trillion, up by VND366.7 billion and VND3.4 trillion respectively.

According to the ministry, the total initial investment of these 12 projects was some VND43.7 trillion, which was later adjusted up to VND63.6 trillion (an increase of 45.65 per cent). Of this, their equity was VND14.4 trillion, accounting for 22.56 per cent, while loans made up 74.6 per cent, about VND47.5 trillion. The remaining 2.84 per cent came from other sources.

Local bank loans for the projects amounted to VND41.8 trillion, including VND16.9 trillion from VDB. Foreign loans guaranteed by the Government totaled VND6.6 trillion and were used to fund Dung Quat Shipbuilding Industry Company Limited, Ninh Binh fertilizer plant and Phuong Nam paper pulp mill.

The ministry said the projects’ outstanding loans were still high, especially those borrowed by Dinh Vu polyester fiber factory, Quy Xa iron ore mining and quarrying project and the Lao Cai iron and steel plant and Ha Bac fertilizer plant projects.

Loans at VDB have been lowered by VND6.73 billion to VND10.6 trillion. Banks have rescheduled debt payments in terms of payment deadlines, the ministry added. — VNS

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