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Most of industry ministry’s inefficient projects continue incurring losses
Monday,  May 7, 2018,22:55 (GMT+7)

Most of industry ministry’s inefficient projects continue incurring losses

HCMC – Ten out of 12 loss-making projects under the management of the Ministry of Industry and Trade have racked up more losses, news site VnEconomy cited Minister Tran Tuan Anh as saying.

These 10 projects might have difficulty paying principles and interest for the Vietnam Development Bank (VDB), and other lender banks. Their accumulated losses were VND18.7 trillion at the end of last year, up VND2.6 trillion over 2016.

As of December 31 last year, the 12 inefficient projects had total equity of VND33.41 billion, down VND4 trillion over the same period in 2016, while their assets and debts were  VND58 trillion and VND58.5 trillion, up by VND366.7 billion and VND3.4 trillion respectively.

In 2016, the National Assembly demanded a comprehensive review of the projects and coping solutions.

According to the Ministry of Industry and Trade, the total initial investment of these 12 projects was some VND43.7 trillion, which was later adjusted up to VND63.6 trillion (up 45.65%). Of this sum, VND14.4 trillion, or 22.56%, was their equity, while loans made up 74.6%, about VND47.5 trillion, and the remaining 2.84% came from other sources.

Local banks offered them VND41.8 trillion including VND16.9 trillion of VDB. Foreign loans guaranteed by the Government totaled VND6.6 trillion and were used to fund Dung Quat Shipbuilding Industry Co Ltd, Ninh Binh fertilizer plant and Phuong Nam paper pulp mill.

After a year of enhancing governance, reducing expenditures and removing obstacles, the projects have shown positive results. Particularly, Quy Xa iron ore mining and quarrying project and the Lao Cai iron and steel plant and DAP 1 Haiphong fertilizer plant have posted profits and falls in accumulated losses.

Loans at commercial banks had decreased by VND193 billion to VND20.8 trillion as of January 31 this year.

Minister Anh said their outstanding loans are still high, especially those borrowed by Dinh Vu polyester fiber factory, Quy Xa iron ore mining and quarrying project and the Lao Cai iron and steel plant and Ha Bac fertilizer plant projects.

Besides, loans at VDB have been lowered by VND6.73 billion to VND10.6 trillion.

Banks have rescheduled debt payments, Anh noted.

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