Politburo decides fate of 13th trillion-dollar loss project

ReplyVnExpressRegarding the 13th loss-making project recently added to the list of trillion-dollar shelved projects of the Industry and Trade sector, Deputy Minister of Industry and Trade Do Thang Hai said that this project is invested by the Vietnam Chemical Group (Vinachem) according to the agreement of the Politburo of Vietnam and Laos. Currently, dThe project has not been put into operation yet, it is only in the investment preparation stage.

However, he said, after more than 2 years of preparation, the Ministry of Industry and Trade and Vinachem found that "if the project continues to be put into operation, its effectiveness is not guaranteed, and it may even result in losses". The reason pointed out by the leader of the Industry and Trade sector is the cost price.The output of Lao potash salt is not as expected. At the time of construction of the pre-feasibility project, the price was 500 USD per ton but now it has decreased to less than 300 USD, even 250 USD per ton.

"The Party and Government's viewpoint is that economic projects must ensure efficiency. The Ministry of Industry and Trade has met, presented the project to the Government many times and reported to the Politburo about this project. Currently, we are waiting for an official decision from the Politburo," said Mr. Hai. At the same time, the leader of the Ministry of Industry and Trade also emphasized the viewpoint that all options for handling this project will be based on the principle of not affecting foreign relations between Vietnam and Laos.

In an explanatory report sent to Vinachem ministries about this project, after starting the project in early 2015, this group poured nearly 940 billion into the project. This group also said that the project was stuck with many unforeseen complicated procedures, complicated technology, and not many contractors and units with the capacity to meet the construction work, so the implementation was behind schedule.

The Kali salt mining project in Laos, invested by Vinachem, has a total investment of 522 million USD, of which Vinachem's own capital is 105 million USD. Banks participating in financing and arranging capital include: VDB 113 million USD (signed credit contract); BIDV 161 million USD; VietinBank 143 million USD.

This project has a mining range of 10 km.², expected to be built in 5 years and put into operation in 2020, with a mining capacity of 320,000 tons per year. However, after more than 2 years of construction, the projectThe project has been suspended since 2017. Vinachem's report on the project said the reason for the suspension was "to seek guidance from competent authorities on implementation".