Five of the 12 delayed or former loss-making projects under the Ministry of Industry and Trade (MoIT) have become profitable, while the seven others made positive changes.

With directions from the Prime Minister, and relevant ministries and sectors, the Committee for Management of State Capital at Enterprises (CMSC) has solved difficulties in MoIT's delayed and loss-making projects.

DAP 1 fertiliser Hai Phong plant under Vietnam National Chemical Group, has been in stable production since 2017. As a result, it did not have losses from January 2022.

Dinh Vu Polyester Fiber Plant of Vietnam Oil and Gas Group has maintained efficient production of 27 Drawn Texturised Yarn (DTY) lines and gained profit.

Meanwhile, the remaining seven projects also have positive changes. Three projects and fertiliser production enterprises of Vietnam National Chemical Group have maintained production and business and, step by step, increased the average capacity.

Although still having many difficulties, the three projects have produced and supplied a large amount of urea and DAP fertilisers to the domestic market and a part for export. Those have contributed to stabilising the domestic fertiliser market and ensuring national food security.

By the end of 2022, these three fertiliser plants still have accumulated losses. However, in 2022, thanks to the highest fertiliser price in the last ten years, the three factories have made a profit of about VND2.63 trillion.

In addition, the phase-two production expansion project of the Thai Nguyen Iron and Steel Corporation, one of the most difficult projects among the 12 projects, has also had many positive developments.

The State Capital Investment Corporation (SCIC), Vietnam Steel Corporation and Tisco2 have directly negotiated with Tisco2's main EPC contractor, China Metallurgical Group Corporation (MCC Group), and worked with the Chinese embassy to take support from them in solving the project's difficulties. In addition, a delegation of MCC Group and Tisco2 have reviewed machinery and equipment gathered at the sites under construction.

In the coming time, CMSC chairman Nguyen Hoang Anh said, the committee will review and report to relevant State agencies to handle the difficulties and problems of each project and enterprise based on the actual situation.

They will also have solutions for restructuring projects and businesses to prioritise selling and divestment.

If the projects and enterprises cannot recover, they will consider implementing the bankruptcy and dissolution plan in accordance with the law. The goal is to minimise losses of the State and negative impacts on the State budget and the economy, Anh said.

According to the Government's schedule, the plan to restructure four loss-making projects under MoIT will be submitted to the Politburo in the first quarter of 2023.

The four projects include the phase-two production expansion project of the Thai Nguyen Iron and Steel Corporation, Dung Quat Shipbuilding Industry Company Limited; Viet Trung Steel Plant Project; and Phuong Nam Pulp Factory Project. These four projects are not yet produced, so they have no revenue to cover losses. VNS