According to the corporation, it consumed 2.97 million tonnes of steel last year, 4.2 per cent higher than 2013, but saw a 7.1 per cent drop in revenue last year to VND24.9 trillion (US$1.19 billion), due to lower selling prices. — Photo infornet

HA NOI (Biz Hub) — The Viet Nam Steel Corporation plans to withdraw capital from non-core businesses as part of an approved restructuring plan, according to a corporation official.

The corporation's Deputy General Director Vu Ba On said it would give priority to withdrawing capital from companies that had reported a low operational efficiency and losses, as well as firms in the non-core business sectors.

Last year, the corporation gradually withdrew capital from companies with low operational efficiency and losses as scheduled, including from the Bac Thai Metallic, the Tan Thuan Steel and Vnsteel Thang Long companies. Meanwhile, it did not withdraw its capital from some sectors, such as finance, cement and property, as scheduled earlier.

The corporation's Design Consulting and Metallurgical Company has not been converted into a joint stock company as planned and the dissolution and operational stoppage at the Southern Steel Sheet JSC has been slow due to disputes related to partners and rent.

Additionally, this year, the corporation would continue to adjust its development strategy for the 2015 to 2025 period, On revealed, adding that the corporation would implement the strategy after getting approval, reported vietnamplus.vn.

The corporation would also promote an inspection and supervision of operations in the sectors of investment, product quality management, input material source management, as well as technical improvement at subsidiaries and joint ventures to reduce production costs and boost efficiency in production and business.

For production and business, member companies of the corporation would have to prepare essential materials for production since the beginning of this year and also conduct steel market studies at home and abroad to ensure a reasonable inventory and competitive prices.

Trading and service companies should come up with solutions to enhance collaboration and for the management of goods bought and goods in stock, as well as follow market development to buy input goods at competitive prices.

According to the corporation, it consumed 2.97 million tonnes of steel last year, 4.2 per cent higher than 2013, but saw a 7.1 per cent drop in revenue last year to VND24.9 trillion (US$1.19 billion), due to lower selling prices.

The corporation stemmed losses in production and business profits and the parent corporation gained VND70 billion ($3.33 million) in profit for the whole of 2014, nearly doubling its plan.

Meanwhile, total pre-tax profit at its subsidiaries and joint ventures in 2014 saw a year-on-year increase of 65 per cent to VND847 billion. — VNS