Prime Minister Nguyen Xuan Phuc has approved a project to restructure the Viet Nam National Coal and Mineral Industries Group (Vinacomin) in 2017-20.

The aim is to make the firm a strong economic group with superior technology and a highly professional governance model.

The project is expected to simplify Vinacomin’s structure and improve its labour productivity, quality and competitiveness of products, thus making it operate more effectively.

It is also hoped that the firm will play a key role in supplying coal for domestic use, ensuring national energy security.

Under the project, in 2019, the State will hold 65 per cent of Vinacomin’s capital, while four of its subsidiaries will be equitised. Meanwhile, the organisation of 16 of the group’s other companies will be unchanged, while eight others will be merged, dissolved or re-organised.

Vinacomin will keep 100 per cent of capital in five units, namely Mining Chemical Industry Corporation, Institute of Mining Science and Technology, Viet Nam Coal-Mining College, Vinacomin Hospital and Coal-Mining Magazine. Vinacomin will also hold at least 65 per cent of capital of Vang Danh Coal, Ha Tu Coal and Mong Duong Coal joint stock companies.

Reports from the Ministry of Finance also reveal that Vinacomin’s achievements are impressive in the first half of 2017, especially its bauxite aluminium project in the Central Highlands province of Lam Dong, which has made a profit of VND50 billion (US$2.19 million) in the first six months, after three consecutive years of losses.

It is estimated that Vinacomin will fetch a profit of around VND2 trillion in 2017, up VND1 trillion against last year. — VNS