The Vietnam Steel Corporation (VNSTEEL) needs support from the Government to resolve any remaining problems associated with its two key projects, general director Nguyen Dinh Phuc said at a meeting on Friday.
VNSTEEL’s focus this year will be completing the two projects of Viet Trung Metallurgy and Mineral Co Ltd (VTM) and Thai Nguyen Iron and Steel JSC (TISCO), especially in TISCO’s second expansion phase, he said.
Phuc said that the plan is part of the Government’s efforts to improve domestic long rolled steel and plated steel production and in line with the Ministry of Industry and Trade’s efforts to support local steel producers in 2018.
He conceded that VNSTEEL met with difficulties during the expansion in 2017, as well as in VTM’s Lao Cai Iron and Steel Plant Project, so they both fell behind schedule.
VNSTEEL’s negotiations and final settlement with contractors from the China Metallurgy Group were also fraught with difficulties. Due to the dispute’s complexity, legal support from consultancy companies was sought, and VSC also asked the Ministry of Justice for help in the matter.
On another note, the VTM managed to complete its negotiations and amendments with foreign joint venture partners on Quy Sa Iron Mine Project by the end of 2017, and is now looking forward to the official signing, after receiving approval from its board of directors.
Other investment projects from VNSTEEL’s subsidiaries like Phu My Flat Steel Company, Nha Be Steel JSC and Thu Duc Steel JSC, are still undergoing slow appraisal and approval, mainly due to difficulties in owner’s capital and investment certificate procedures.
At the same time, VNSTEEL will work with representatives at TISCO on the latter’s State divestiture, decreasing from 65 per cent to 21.5 per cent of its charter capital, which is expected to be completed in 2018’s first quarter.
According to VNSTEEL’s end-of-year report, in 2017, its total accumulated revenue hit VND18.8 trillion ($837 million), while combined profit reached VND650 billion ($28.9 million).
The report also stated that last year, 22 out of 36 of its member companies completed or exceeded their business goals, at much higher growth rates compared to 2016. — VNS