A worker of the Vietnam National Coal and Mineral Industries Group (Vinacomin) at a production line. (Photo: VNA) Hanoi (VNA) - The Vietnam National Coal MineralIndustries Group (Vinacomin) must cut costs to become competitive and findbuyers for its stockpile of 9.3 million tonnes of coal, Prime Minister NguyenXuan Phuc’s working group said.
At a meeting with Vinacomin on June 19, the working group,appointed by the Prime Minister, said it is very important to resolve thestockpile as Vinacomin’s growth contributes significantly to the country’s overalleconomic growth.
To meet the GDP growth target of 6.7 percent in 2017, theGovernment wants to boost the growth of the oil, gas and mining sectors.
At the meeting, Mai Tien Dung, head of the working group, ministerand chairman of the Government Office, said that the PM wants Vinacomin to payattention to five issues closely related to the group’s operations and theoverall economic growth target of the country.
Foremost, Phuc wants Vinacomin to deal with its stockpile of 9.3million tonnes of coal. “This is the biggest obstacle in the way of Vinacomin’sgrowth and business efficiency,” said Dung.
Secondly, the PM has asked the group to draw up measures andpropose policies to the Government to cut prices so that Vietnamese coal cancompete against imported coal. Currently, imported coal (coded 4B) is priced atroughly 1.5-1.6 million VND (66.6-71.1 USD) per tonne, but the same Vietnamesecoal is roughly 2 million VND per tonne.
“If we do not handle it well, there will be huge competitionpressure. This requires Vinacomin to put more efforts into restructuring,revamping and reducing costs,” Dung said.
Thirdly, Vinacomin must improve its investment efficiency byspeeding up profitable projects, and closely supervising projects that aregoing slow.
The PM also wants Vinacomin to actively work with provincialauthorities to fight against illegal coal exploitation and smuggling.
Finally, PM Phuc ordered the company to further restructure anddivest from its non-core businesses. It must pay more attention to processedproducts with high added value instead of only trying to increase output,according to Dung. Rising output must go hand in hand with effectiveness andvalue.
Dung said that Vinacomin is a strong economic group and plays animportant role in ensuring national energy security. So far this year, thecorporation has made successful changes, which have contributed to its notableturnover and profits.
Vinacomin has produced 18.3 million tonnes of coal in the firstsix months, increasing 5 percent year on year and meeting 54 percent of theannual target. Of the total, 686,000 tonnes of coal have been exported.
With the sale of 18 million tonnes of coal in the first half ofthe year, up 2 percent year on year, the group has met half of its annual target.
Vinacomin has posted a turnover and profit of roughly 53.3trillion VND (2.3 billion USD) and 1 trillion VND (44 million USD),respectively in the first six months, up 10 percent year on year. It hascontributed 6.3 trillion VND to the State budget and generated jobs for around110,000 workers in this period. It is estimated that Vinacomin will fetch aprofit of around 2 trillion VND in 2017, up 1 trillion VND against last year.
Reports from the Ministry of Finance also reveal that Vinacomin’sachievements are impressive in the first half of 2017, especially its bauxite aluminumproject in the Central Highlands province of Lam Dong, which has made a profitof 50 billion VND in the first six months, after three consecutive years oflosses.-VNA
At a meeting with Vinacomin on June 19, the working group,appointed by the Prime Minister, said it is very important to resolve thestockpile as Vinacomin’s growth contributes significantly to the country’s overalleconomic growth.
To meet the GDP growth target of 6.7 percent in 2017, theGovernment wants to boost the growth of the oil, gas and mining sectors.
At the meeting, Mai Tien Dung, head of the working group, ministerand chairman of the Government Office, said that the PM wants Vinacomin to payattention to five issues closely related to the group’s operations and theoverall economic growth target of the country.
Foremost, Phuc wants Vinacomin to deal with its stockpile of 9.3million tonnes of coal. “This is the biggest obstacle in the way of Vinacomin’sgrowth and business efficiency,” said Dung.
Secondly, the PM has asked the group to draw up measures andpropose policies to the Government to cut prices so that Vietnamese coal cancompete against imported coal. Currently, imported coal (coded 4B) is priced atroughly 1.5-1.6 million VND (66.6-71.1 USD) per tonne, but the same Vietnamesecoal is roughly 2 million VND per tonne.
“If we do not handle it well, there will be huge competitionpressure. This requires Vinacomin to put more efforts into restructuring,revamping and reducing costs,” Dung said.
Thirdly, Vinacomin must improve its investment efficiency byspeeding up profitable projects, and closely supervising projects that aregoing slow.
The PM also wants Vinacomin to actively work with provincialauthorities to fight against illegal coal exploitation and smuggling.
Finally, PM Phuc ordered the company to further restructure anddivest from its non-core businesses. It must pay more attention to processedproducts with high added value instead of only trying to increase output,according to Dung. Rising output must go hand in hand with effectiveness andvalue.
Dung said that Vinacomin is a strong economic group and plays animportant role in ensuring national energy security. So far this year, thecorporation has made successful changes, which have contributed to its notableturnover and profits.
Vinacomin has produced 18.3 million tonnes of coal in the firstsix months, increasing 5 percent year on year and meeting 54 percent of theannual target. Of the total, 686,000 tonnes of coal have been exported.
With the sale of 18 million tonnes of coal in the first half ofthe year, up 2 percent year on year, the group has met half of its annual target.
Vinacomin has posted a turnover and profit of roughly 53.3trillion VND (2.3 billion USD) and 1 trillion VND (44 million USD),respectively in the first six months, up 10 percent year on year. It hascontributed 6.3 trillion VND to the State budget and generated jobs for around110,000 workers in this period. It is estimated that Vinacomin will fetch aprofit of around 2 trillion VND in 2017, up 1 trillion VND against last year.
Reports from the Ministry of Finance also reveal that Vinacomin’sachievements are impressive in the first half of 2017, especially its bauxite aluminumproject in the Central Highlands province of Lam Dong, which has made a profitof 50 billion VND in the first six months, after three consecutive years oflosses.-VNA
VNA
