As such, its revenue is estimated at VND45 trillion (US$1.9 billion) or 3.3% higher than the target, and up 5% over the last year’s period, resulting in a consolidated profit of VND47 billion (US$2 million), said the Vice Minister of Industry & Trade Do Thang Hai at the group’s annual business review in 2017 and plan for 2018.
Vinachem set revenue target of US$2 billion in 2018.
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Vinachem has stepped up effort last year to quickly put 4 projects sustaining losses of millions of dollars into operation, including: Ha Bac Nitrogenous Fertilizer and Chemical JSC, DAP-Vinachem JSC, DAP No. 2 – Vinachem JSC and Ninh Bình Nitrogenous Fertilizer and Chemical.
In case these companies above recover from losses and start having profitability, Vinachem will have to divest all state fund
The chemical group set target for industrial production value at VND45.2 trillion (US$1.9 billion), an increase of 7.3% compared to 2017; revenue at VND46.4 trillion (US$2 billion), up 3.4% compared to 2017, resulting in consolidated profit of VND60 billion (US$2.6 million). Wage for employees is set for an 5% increase compared to 2017.
Vinachem will develop roadmap for equitization process and divestment submitted to the Ministry of Industry & Trade. At the same time, the group will instruct state capital representatives at its member companies to implement the equitization process and divestment in conformity with the Prime Minister’s decision to restructure Vinachem in period 2017 – 2020.
“We have to carry out the restructuring process in terms of administration and financial management, while the most important thing would be able to choose qualified human resources and searching for investment funds”, Hai stressed.
After completing the restructuring and divestment plan, it is expected that Vinachem will increase its chartered capital to 20 trillion VND (roughly US$ 878 million), Vinachem then starts its equitization process in period 2018 – 2019, for which the government will hold 50 – 65% of its chartered capital.
From now on, Vinachem will scale down its business lines to producing and trading basic chemicals; exploiting and processing minerals as raw materials for fertilizer and chemical production; producing and trading pesticides and fertilizers containing phosphorus.
