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| Cua Ong Coal Selection Company is a member of Viet Nam National Coal-Mineral Industries Holding Corporation Limited. The coal giant posted declining revenue for the first nine months of this year. — VNA/VNS Photo Minh Duc |
HA NOI (Biz Hub) — Viet Nam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) will hasten its restructuring efforts to overcome this difficult period, with more job cuts planned this year, local news reported.
Vinacomin's report on business results in the first nine months of this year revealed that the group had fallen into a tougher situation compared with the same period last year, with revenue declining, output falling, sales slowing down and inventories stocking up.
Statistics showed that the group's revenue in the nine-month period dropped by 7 per cent to VND71.46 trillion (US$3.2 billion), which was equivalent to just 65 per cent of its target for the full year. Coal exploitation output and sales also posted declines of between 3 per cent and 6 per cent against the same period last year, while coal stockpiles totalled 10.8 million tonnes.
Vinacomin said the group was struggling to sell coal in both the domestic and foreign markets, adding that in the first nine months, Vinacomin's coal exports were equivalent to only 37 per cent of the same period last year, because the Government has just allowed coal export since April this year.
Sales to thermoelectric plants, which accounted for 80 per cent of the domestic sales, also slowed down.
Meanwhile, Viet Nam still imported coal as the price of local coal was not as competitive. According to customs statistics, more than nine million tonnes of coal were imported to Viet Nam in the first eight months of this year, worth $600 million.
Vinacomin's general director Dang Thanh Hai at the group's conference on Tuesday said reducing inventories would be a priority task of the group in the remaining months of this year. The group planned to cut stockpile to less than nine million tonnes by the end of the year.
In addition, Vinacomin would speed up the recovery of arrears. "Vinacomin will not promote sale of coal at all costs," Hai said, adding that sale to customers who had not paid debts could be halted.
Vinacomin would also cut 4,000 jobs this year, the Voice of Viet Nam reported. The total number of employees at Vinacomin till the end of this year's second quarter was 115,000.
Recently, Deputy Prime Minister Trinh Dinh Dung asked relevant ministries to tackle difficulties and support Vinacomin in overcoming this difficult phase, while ensuring market and production output of the coal industry, including review of taxes and fees on coal production, and developing coal export mechanism for the 2016-20 period. — VNS