By the end of June, 12 projects of industry and trade had more than 63,300 billion dong of debt, accumulated loss was over 26,300 billion dong.
The Government has just submitted a report on the implementation of the Resolution of the National Assembly on monitoring and questioning in the field of Industry and Trade. The report by the Minister of Industry and Trade Tran Tuan Anh, authorized by the Government, said that up to now, the economic damage data of 12 projects has not been fully determined, so the finalization and valuation have not been completed projects.
The reason is that 5 projects still have disputes and problems with EPC contracts (Contract for design, supply of technology equipment and construction of works). These 5 projects include: DAP fertilizer factory No. 2 Lao Cai, renovation and expansion project, Ha Bac nitrogenous fertilizer factory, Ninh Binh fertilizer factory, Dung Quat shipbuilding industry factory and project to expand production in the second phase of Thai Nguyen Iron and Steel Joint Stock Company.
However, according to the first 6 months estimate, the equity of 12 projects is -7,264.61 billion dong. Total assets are 59,152.88 billion VND. Meanwhile, total liabilities are 63,308.82 billion dong, accumulated loss is 26,360.88 billion dong.
In order to solve difficulties in projects in particular, manufacturing industries such as steel, fertilizer, fiber … in the country in general, the Ministry of Industry and Trade has used trade defense tools. This helps projects such as DAP fertilizer factory No. 1 – Hai Phong, Vietnam – China Steel Company, Thai Nguyen Iron and Steel Joint Stock Company … gradually keep the market, improve business situation. .
Particularly the project of Phuong Nam Pulp Factory of Vietnam Paper Corporation (Vinapaco), the problem is more complicated. After the first unsuccessful auction in 2017, the project continues to receive consultancy, asset valuation and inventory.
By the end of 2019, the project has a total debt of more than 3,014 billion dong, short-term liabilities is 4 billion dong. PVcomBank sued Vinapaco, asking the court to settle it forcing Vinapaco to pay VND 592.3 billion. Currently, Vinapaco is facing financial difficulties and cannot guarantee to pay the principal and interest, so this lawsuit may result in the project’s assets and inventories unable to be auctioned under the direction of the Government. The Ministry of Industry and Trade is leading and assisting PVcomBank and Vinapaco to review and negotiate for settlement.
Previously, on August 19, the Steering Committee for the handling of projects agreed to report to the Prime Minister to put 3 projects, DAP-1 Hai Phong, Phu Tho Biofuel and Binh Phuoc Biofuel out of category. track and handle. Corporations, management corporations, and investors of these projects will take full responsibility for handling and ensuring compliance with law. The State Capital Management Committee will supervise the handling process of corporations and corporations in these projects.
The Prime Minister, in July, requested the completion of the project’s handling by 2020. If it must be slower, the time should not extend beyond the first half of 2021.
12 projects at loss of industry and trade include: DAP fertilizer factory No. 1 – Hai Phong; DAP fertilizer factory No. 2 – Lao Cai; Ninh Binh Fertilizer Factory; Project to renovate and expand Ha Bac Fertilizer Factory; Thai Nguyen Iron and Steel Phase 2 Expansion Project; Dung Quat Shipbuilding Industry One Member Limited Liability Company; Project on Viet Trung steel factory; Project on Dinh Vu polyester fiber factory; Project of Dung Quat Biofuel Production Plant; Project of Binh Phuoc Biofuel Production Plant; Project of Phu Tho Biofuel Production Plant; Phuong Nam pulp factory project.
The total initial investment of these projects is nearly 43,700 billion dong, after being adjusted to more than 63,610 billion dong (up nearly 46%). In which, equity is over 14,350 billion dong (about 23%), loan is over 47,451 billion dong (75%), the rest is nearly 2.9% from other sources. Of the total loans, loans from domestic banks are more than 41,801 billion VND, the rest is guaranteed loans from the Government.