Vietnam’s government is scheduled to submit a list of 12 loss-making projects to the country’s Politburo, the most powerful branch of its political system, to decide their fate.
The projects in question have accumulated combined losses of nearly US$3 billion and are all currently being managed by the Ministry of Industry and Trade.
To date, 20 directives have been issued to assign more than 100 tasks to state-run corporations and enterprises to resolve the shortcomings and weaknesses of the 12 projects, Deputy Prime Minister Vuong Dinh Hue said on Wednesday.
The trade ministry has also finalized a report on how to handle the loss-making projects, which the government is scheduled to review this week before submitting it to the Politburo – the all-powerful policymaking body of the Communist Party of Vietnam – as quickly as possible, according to the deputy premier.
The 12 projects on the chopping block include Phuong Nam pulp mill, Ninh Binh Urea Fertilizer, Thai Nguyen Cast-Iron and Steel Plant, Phu Tho Ethanol Plant, Dung Quat Ethanol Plant, Binh Phuoc Ethanol Plant, Dung Quat Shipyard, PVTex Dinh Vu Yarn Making Plant, Ha Bac Urea Fertilizer, Lao Cai Diammonium Phosphate (DAP) plant, Dinh Vu DAP, and Lao Cai Cast-Iron and Steel.
Of the 12, six have already been commissioned but are operating at a loss, three have had to cease construction due to rising costs and lack of capital, and three have been forced to halt production due to hefty costs and the resulting losses.
Combined, those 12 projects have resulted in losses of VND63,729 billion ($2.85 billion).