The main goal is to minimize losses for the state budget and ensure lawful rights for workers, national security and defense, Prime Minister Nguyen Xuan Phuc has said.

Inefficient projects must be dissolved or filed for bankruptcy in compliance with current legislation to retrieve state capital as much as possible.
Prime Minister Nguyen Xuan Phuc at the meeting. Photo: Quang Hieu |
Prime Minister Nguyen Xuan Phuc stressed the view at a government meeting discussing 12 ineffective and stagnant projects in the industry and trade sector on March 3.
At present, three projects have been taken out of the monitoring list of poor-performing ones, including the DAP1 Hai Phong Fertilizer Plant, Ethanol Binh Phuoc and Ethanol Phu Tho, for becoming profitable.
A report from the Ministry of Industry and Trade (MoIT) informed other projects are in operation but face large amount of accumulated losses, some are underway or being put on hold.
One of the major obstacles preventing the state from withdrawing its capital in these projects is the ongoing legal disputes regarding the value of Engineering, Procurement and Construction (EPC) contracts for five projects.
As these loss-making projects are putting huge burden on the state budget, PM Phuc urged government agencies to take drastic measures to resolve the issue, asking the MoIT to submit a solution for the Phuong Nam Pulp Factory before March 10.
While the government stands firm on its stance of not pumping additional capital into those ineffective projects, Phuc requested the Committee for Management of State Capital at Enterprises (CMSC) to propose detailed solutions for the government to consider.
“The main goal is to minimize losses for the state budget and the economy in overall, at the same time ensuring lawful rights for workers, national security and defense,” Phuc said.
As of last October, total accumulated losses of 12 projects had reached VND26.3 trillion (US$1.14 billion).
The 12 loss-making projects include four in fertilizer production, three in biofuel production, two in steel manufacturing, one in polyester production, one in pulp and one in shipbuilding.
Other News
- Business confidence in Vietnam improves to a three-month high: S&P Global
- Hanoi leaders call for high productivity after Tet break
- Hanoi's businesses resume operation after Tet
- Arrivals to Hanoi surge by over 300% during Tet holiday
- Foreign investors remain confident about Vietnam's business environment
- Vietnam’s tourism forecast to strongly rebound in five years
- Tourism firms upbeat about Vietnam's 2023 outlook
- Surge in travel demand in Vietnam's airports ahead of Tet
- Hanoi to host AeroExpo Hanoi & Vietnam Aviation Forum 2023 in March
- Vietnam, S.Korea eye US$100-billion trade turnover in 2023
Trending
-
Business confidence in Vietnam improves to a three-month high: S&P Global
-
Demand for housing in Hanoi forecast to rise in 2023
-
Make in Vietnam drives ICT firms into international markets
-
Hanoi ranked 5th among safest cities in Southeast Asia
-
Hanoians show passion for flowers
-
Vietnam’s tourism forecast to strongly rebound in five years
-
Admiring 2,023 feline statuettes made by Hanoi artist
-
Overseas Vietnamese eagerly await Tet and spring
-
Switzerland to support Vietnam’s transition to green economy