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Jan 21, 2021 / 21:16

Deputy PM urges state-run firm Vinacomin to speed up privatization

Vinacomin’s main objective is to ensure sufficient supply of coal to meet market demand for consumption and electricity production, Deputy Prime Minister Trinh Dinh Dung has said.

State-run Vietnam National Coal and Mineral Industries Group (Vinacomin) should speed up the privatization process in the 2021-25 period by addressing issue problems related to lands and financial investment in its non-core business activities.

 Vinacomin’s main objective is to ensure sufficient supply of coal to meet market demand for consumption and electricity production. Source: Vinacomin. 

Deputy Prime Minister Trinh Dinh Dung gave the remark at a meeting on January 21.

“Flexible production plan is necessary for the firm to meet growing market demand for coal, especially in consumption and electricity production,” added Mr. Dung.

The Deputy PM requested Vinacomin to continue its restructuring process for greater efficiency and productivity, with a focus on the development of main products such as coal, electricity and other mineral products.

Referring to the necessity to promote mechanization and automation programs, Mr. Dung expected Vinacomin to push up science and technology for sustainable development.

Mr. Dung wanted the group to be active in investing in new coal mines and upgrading existing ones to ensure sufficient supply the economy coincided with the Vietnam’s master plan for coal industry development.

Vinacomin General Director Dang Thanh Hai informed in a difficult year of 2020 with the severe impacts of Covid-19, Vinacomin was among a few state-owned groups that had achieved its yearly business targets with revenue of VND123.42 trillion (US$5.35 billion) and profit of VND3 trillion ($130 million).

“Vinacomin aims to continue enhancing its corporate governance capability, while promoting the use of modern and environmentally-friendly technologies to boost productivity,” stated Mr. Hai.

For this year, the mining company sets a revenue target of VND123.88 trillion ($5.37 billion) and profit of VND3 trillion ($130 million), around the same figure of last year.

A recent report from Fitch Solutions, a subsidiary of Fitch Group, suggested coal remains the most practical option for Vietnam in the near-term to stimulate affordable electricity generation growth at the pace and scale needed by the country, given its affordability, accessibility and reliability. 

Nevertheless, the National Steering Committee for Power Development has recommended scaling the share of coal down for the upcoming Power Development Plan (PDP) VIII, eliminating nearly 15GW of planned coal projects due to slow progress and environmental opposition to in some coal projects. Coal should accounts for 37% of Vietnam’s electricity by 2025,