State budget cannot bear debt burden of SOEs

VietNamNet Bridge - The Ministry of Finance (MOF) has to advance $1 billion to pay debts for state-owned enterprises (SOEs) which cannot pay debts because of big losses. While public debts have increased rapidly, SOEs are still asking the government to guarantee their commercial loans worth billions of dollars. The latest MOF report to the National Assembly on the government use of loans showed that foreign debts guaranteed by the government reached $2.44 billion in 2014, up by 22 percent. This means that the government-guaranteed foreign debts have reached VND234.939 trillion, accounting for 52 percent of the government-guaranteed total debts and 10 percent of total public debts. Of the eight projects which borrowed foreign loans with the government’s guarantee, there are six power projects, including the Thai Binh 2 thermal power plant developed by PetroVietnam ($937 million) and the Lai Chau hydropower plant ($300 million). The first private invested power project … [Read more...]

Central Highlands to lure trillions of VND for socio-economic growth

The Central Highlands region plans to mobilise hundreds of trillions of VND through 2020 for economic transformations and socio-economic infrastructure development, focusing on boosting transport, irrigation and industry, according to a senior official of the Steering Committee for the Central Highlands. As much as 81 trillion VND (3.75 billion USD) is expected to be invested into the improvement of transport, irrigation systems and industry with nearly 65 trillion towards upgrading 1,380 kilometres of highways, including 37.6 trillion (1.79 billion USD) invested into the Day Giay-Lien Khuong expressway, Tran Viet Hung, the committee’s deputy head said. Besides building three new irrigation systems, including the Ea H’Leo, Krong H’Nang and Ia Thul reservoirs, regional localities will also complete seven other ongoing projects, said Hung. The region will continue attracting investment to aluminium projects and the expansion of the 360 megawatt Yaly hydropower … [Read more...]

MOIT, experts disagree on bauxite projects

VietNamNet Bridge - The Ministry of Industry and Trade (MOIT) has said the Tan Rai and Nhan Co bauxite projects are highly efficient, but scientists say they will cause serious consequences. MOIT’s Minister Vu Huy Hoang, in a report to the ongoing National Assembly session, said that the bauxite projects in the Central Highlands were running smoothly as planned. The Tan Rai bauxite project has been reported as gaining the expected socio-economic efficiency and satisfying environmental requirements. Thoi Bao Kinh Te Viet Nam quoted Hoang as reporting that worries about the red mud treatment have been lifted as the environmental indexes are all below the permitted levels. The newspaper also quoted Hoang as saying that the products of the Tan Rai alumina factory are sold as soon as they are produced. There has been no inventory to stock. The majority of the factory’s products have been exported. The investor has signed contracts on selling alumina with 11 clients from … [Read more...]

Bauxite Project Still Effective

Recently, a seminar on the Central Highlands bauxite mining project held by the Pan Nature Centre said that "If Vietnam produces 660,000 tonnes of bauxite, it will lose US$374 million" and Vietnam is being caught in "cheap trap". In this regard, on March 31, the Ministry of Industry and Trade officially noted that the remarks by the seminar were "hasty and groundless". Quicker capital recovery than expected The Ministry of Industry and Trade said it reported the updated results (as of April 26, 2014) on economic effects of Tan Rai alumina project to the Standing Committee of the National Assembly, estimating that the loss-making period was four years and the payback period was 11.5 years. Nhan Co Alumina Plant had lower economic efficiency because of longer transportation distances. Thus, the loss-making period was five years and the payback period was 12 years. Besides, the ministry noted that the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) … [Read more...]

PM approves Nhan Co industrial zone expansion

The Prime Minister has approved adjustments on planning for development of industrial parks in Central Highlands province of Dak Nong, including the expansion of the Nhan Co industrial zone. According to the master plan through 2020, the Dak Nong People’s Committee will be in charge of making adjustments and plans on land use in the locality. Relevant bodies are assigned to make a detailed plan for the expansion, ensuring access to social services such as water, electricity, and environmental protection. The Nhan Co Industrial Zone which will be expanded to 148 ha from 100 ha is located in Nhan Co commune, Dak R’Lap district and serves domestic bauxite exploitation, aluminium production projects and agro-forestry product processing. Last year, the provincial economy grew by 12.2 percent, the average income per capita exceeded 32.5 million VND (1,500 USD), and the rate of poor households was reduced to 13.75 percent. In 2015, the locality is working towards an … [Read more...]

Raising awareness of society on SEA and EIA

In 2014, the Department of Environmental Appraisal and Impact Assessment reported to the Minister of Natural Resources and Environment to submit the Prime Minister the evaluation results of the 13/17 strategic environmental assessment (SEA) reports; 208/259 environmental impact assessment (EIA) reports of the investment project under the authority of the Ministry of Natural Resources and Environment; evaluated and inspected 17 environmental protection records of manufacturing establishments; submitted 40 records to Director General of Vietnam Environment Administration to issue the Certificate of the implementation of environmental protection measures for 61/80 projects. It was direction of the Deputy Minister of Natural Resources and Environment and Director General of Vietnam Environment Administration Bui Cach Tuyen in the meeting to summarize the work in 2014 and propose orientations and tasks in 2015 of Department of Environmental Appraisal and Impact Assessment dated December … [Read more...]

Deputy PM Hoang Trung Hai: support the ethnic people who manage forests

(VOVworld) - Deputy Prime Minister Hoang Trung Hai inspected forest management and macadamia tree plantation in Tuy Duc district, Dak Nong province, on Wednesday. Deputy Prime Minister Hoang Trung Hai visits a macadamia grove in Tuy Duc district He asked the local authorities to help ethnic people who have contracted to manage and protect the forests, gain sufficient incomes to improve their lives whiling visiting a 600-ha macadamia grove owned by Macadamia Queen SJC in Quang Tam commune, Mr. Hai asked functional agencies and farmers to expand macadamia areas. He then visited the construction of the Nhan Co Alumina and Dak Nong alumina electrolysis factories and the upgrade of Ho Chi Minh Highway in Dak Nong province. … [Read more...]

Deputy PM Hai inspects agriculture and infrastructure development in Dak Nong

Deputy Prime Minister Hoang Trung Hai inspects macadamia planting in Quang Tam commune, Tuy Duc district, Dak Nong province, on April 8. (Image credit: VGP) NDO – Deputy Prime Minister Hoang Trung Hai on April 8 went on a tour of the Central Highlands, visiting Tuy Duc district in Dak Nong province to inspect forest protection work and pilot macadamia development models in the locality. Deputy PM urges strengthened cashew industry Tuy Duc is still 50% covered in natural forests, however they are being degraded by logging and deforestation for cultivation. Currently in Quang Tam commune, 120 ethnic M'Nong families have been entrusted with over 1,000 ha of forest for management and protection. However, the income each household receives for forest management and protection is still low at approximately VND2.5 million a year. Deputy PM Hai urged Dak Nong and Tuy Duc authorities to look for solutions to help the raise awareness of ethnic minority people in forestry protection … [Read more...]

After many years, Vietnam authority, investor still struggle to justify bauxite plants

The construction site of Vietnam's second bauxite refinery plant in the central highlands province of Dak Nong. Photo: Manh Quan The government has ordered the industry ministry and the Vietnam National Coal and Mining Industries Group (Vinacomin) to submit clarifications for questions raised by local scientists about the country’s first and only two bauxite refinery plants. It was the second time the government made the order regarding a proposal signed by 12 scientists in October last year, Tuoi Tre newspaper reported on April 1. The ministry and Vinacomin, which operates Tan Rai plant in the central province of Lam Dong and is building Nhan Co plant in nearby Dak Nong Province, were required to submit their answers by this April 15. The scientists were quoted as saying in the proposal that the plants’ technology which is provided by contractor China Aluminum International Engineering Corporation (Chalieco) and economic efficiency are very low. It was not the first … [Read more...]

Chinese technology may kill bauxite projects: scientists

The warning about losses that could be incurred by the two bauxite projects in the Central Highlands has become a reality. The Tan Rai bauxite project is predicted to take a loss of VND460 billion in the first three years of operation, while Nhan Co would incur a loss of VND3 trillion over six years. Tuoi Tre newspaper quoted experts as saying that Vinacomin (the Vietnam Coal and Mineral Industries Group), the investor of the projects, has "fallen into a trap" set by Chinese contractors. Dr. Nguyen Thanh Son, former director of the Red River Delta Coal Mining Management Board, pointed out that Vinacomin did not hire consultants to make bidding documents, technical design and other works. "Vinacomin thought it would be able to save money if it did things itself. But this would make it more costly," he said. Nguyen Van Ban, former head of Alumina Division of the Vietnam Minerals Corporation, noted that at first, Chinese bid a very low price to win the bid, but then raised prices … [Read more...]

Ministry says bauxite projects likely to incur initial losses

A view of the Tan Rai bauxite mine in Lam Dong Province. Two bauxite mining projects in the province are set to face losses for several years. — VNA/VNS Photo HA NOI (VNS) — The two bauxite mining and processing projects in the Central Highlands Province of Lam Dong, which became operational in October 2013, would incur losses for four to five years. Thus was revealed by the Ministry of Industry and Trade (MoIT) in a press statement released to the media on Monday. The ministry said an assessment conducted by the National Assembly Standing Committee of the two projects from October 2013 to April 2014 showed that the projects had positively impacted the surrounding localities' infrastructure development, economic structure transition and labour. As per the committee's calculations, the Tan Rai bauxite mine would report losses for four years, while the Nhan Co mine would do the same for five years, as they both had to repay loans taken during the initial period. The … [Read more...]

Social News 30/3

New bridge opens in Da Nang After 18-months' work, a three-level rail and road flyover was opened yesterday at Da Nang's busiest roundabout, Hue Junction, to alleviate congestion. The VND2 trillion (US$95 million) project was built at a level crossing where 30 trains, 5,000 cars and trucks, 10,000 motorbikes and 80,000 bicycles cross path every day. Minister of Transport Dinh La Thang said the project, which was completed on time would ease traffic and reduce the number accidents. He told the inauguration ceremony that the flyover would become one of the city's attractions. The bridge features designs of the Hindu Yoni (female) and Linga (male) emblems from the ancient Cham Kingdom in the central region in the 13th century. The bridge's 65m-high main tower is designed to withstand earthquakes. It also has an earthquake alarm system. Unusual floods kill 3 in central Vietnam Several floods triggered by unusual heavy rains over the last few days have claimed three lives in … [Read more...]

Dak Nong Heads for Sustainable Development

In recent years, slow domestic and global economic recovery, weak internal resources, lacklustre business performances, and slow-moving projects have dragged on the social and economic development of Dak Nong province. Dak Nong province has instructed and carried out many solutions to complete development objectives in the 2010-2015 period, said Mr Le Dien, Chairman of the Dak Nong Provincial People's Committee. Thanh Tam reports. Could you tell us the major outstanding accomplishments that Dak Nong province has achieved in four years of implementing the Resolution of the 10th Provincial Party Congress of the 2010-2015 term? In the 2010 - 2015 period, most socioeconomic development indicators of Dak Nong province met or exceeded expectations. The average annual economic growth was 12.41 percent. Per capita income more than doubled to VND32.75 million in 2014 from VND15.88 million in 2010. The economic structure changed positively. High-tech agricultural development programmes were … [Read more...]

Dak Nong Industrial Zones Actively Dealing with Difficulties

Despite being a core accelerator of the industrialisation, the investment for the construction of industrial zones in Dak Nong province is incomplete, thus worrying many investors when they consider registering investment and carrying out their business operations in the province. As a result, the occupancy rate at industrial zones is quite low. Dak Nong province now has Tam Thang Industrial Park (Cu Jut district), Nhan Co Industrial Park (Dak R'Lap) and five small-scaled industrial complexes. The 179.5-ha Tam Thang Industrial Park, the first of its kind in Dak Nong, cost VND191.3 billion (mounting to VND307 billion in December 2014 due to inflation). The zone, invested by Tam Thang Industrial Park Development Company, completed some basic items. In the end of 2014, the investor had spent VND224 billion, 72.9 percent of the total value of VND307 billion. As of October 2014, Tam Thang Industrial Park drew 30 projects from 27 enterprises, of which 27 projects, including one FDI project, … [Read more...]

Vietnam has big plans for aluminum industry

VietNamNet Bridge – Vietnam plans to double the production capacity of the Tan Rai and Nhan Co projects to 2.6 million tons of alumina per annum. The Prime Minister’s recent working visit to the Central Highlands bauxite complex confirmed the great potential of bauxite exploitation there and aluminum industry development. Analysts once looked at Tan Rai and Nhan Co alumina projects with dubious eyes. However, it is obvious that domestic demand for alumina to make aluminum has become far higher than the output Tan Rai and Nhan Co can provide. The alumina output at the Central Highlands complex will not be enough for domestic use in the next three years. Time for a new industry A report of the Ministry of Industry and Trade (MOIT) showed that Vietnam has to import 100 percent of aluminum it needs, about 500,000 tons a year, worth $1.2 billion. The demand will increase rapidly as a result of the government’s policy on speeding up the development of support … [Read more...]

Greenlight given to Tan Rai alumina plant equitization

The Saigon Times Daily Its equitization will make it possible for private and strategic investors to take part in plans to expand the plant and enable it to process value-added products and make steel from the sludge from the processing of bauxite, Dung said while he was inspecting the Tan Rai bauxite exploitation and alumina production project site on Tuesday. The Prime Minister told Vinacomin to prepare to raise the capacity of the plant, create jobs for locals, and care about the impact of the project on the environment, Vietnam News Agency reports. The Tan Rai bauxite exploitation and alumina production project has an annual capacity of 650,000 tons of alumina. As part of the project, the plant was commissioned in 2013 and turned out 485,000 tons of alumina last year. Most of the plant’s output is for export with revenue of US$160 million last year. Vinacomin has clinched contracts to sell products to 11 companies in Switzerland, Singapore, South Korea, China and … [Read more...]

PM Dung takes tour of Tan Rai bauxite complex

Prime Minister Nguyen Tan Dung inspected the Bauxite-Aluminum Tan Rai Lam Dong Complex and the Nhan Co Aluminum Factory during a trip yesterday to Dak Nong Province. Prime Minister Nguyen Tan Dung (M) inspects the Bauxite-Aluminum Tan Rai Lam Dong Complex and the Nhan Co Aluminum Factory during a trip yesterday to Dak Nong Province. — VNA/VNS Photo Duc Tam Viet Nam National Coal-Mineral Industries Group (Vinacomin) owns the Tan Rai project, which has the capacity to produce 650,000 tonnes of aluminum per year. The complex has three components: mineral extraction, sorting plants and an aluminum factory. After operating for a year, the Tan Rai project in 2014 had churned out 485,000 tonnes of aluminum. In 2015, the project is expected to produce 540,000 tonnes of aluminum. According to Vinacomin, the group earned US$160 million in 2014 exporting 490,000 tonnes of aluminum to 11 countries and territories, including Switzerland, Singapore, South Korea, China and Hong … [Read more...]

Government News 10/2

Deputy Defence Minister hosts outgoing Russian official Deputy Defence Minister, Senior Lieutenant General Truong Quang Khanh hosted outgoing Chief Representative of the Russian Federal Service for Technical-Military Cooperation to Vietnam Anatoly Chuprynov in Hanoi on February 9. The host expressed his appreciation for Chuprynov’s contributions to boosting the traditional friendship and comprehensive strategic partnership between Vietnam and Russia. He also hopes that Chuprynov, in his new position, will continue enhancing the bilateral relationship. The guest pledged to foster the camaraderie between the two armies and people upon returning to his home. Party inspection commission to be enhanced Party General Secretary Nguyen Phu Trong has expressed his desire that the Party Central Committee’s Inspection Commission will perform its functions more effectively as a part of preparations for the upcoming all-level Party Congresses. Holding a year-end working session … [Read more...]

PM assigns socio-economic tasks to Dak Nong

Scene at the working session in Dak Nong. Photo: VNA Prime Minister Nguyen Tan Dung assigned a number of socio-economic development tasks to the Central Highlands province of Dak Nong during a working session with local authorities on February 9. Dak Nong has been requested to adjust its farmland planning, especially for high-value plants such as rubber, coffee and macadamia nuts, while embracing advanced technology in production and processing. As natural and economic forests account for 48 percent of the total coverage, the Prime Minister asked Dak Nong to restructure 16 of its plantations and transfer additional forest plots to ethnic minority groups in a bid to improve their livelihoods. Directing the development of bauxite processing industry, the leader urged the province to put the Nhan Co aluminium factory into operation later this year and launch other aluminium projects. He also advised developing tourism services, especially eco-tourism, due to the region’s … [Read more...]

Coal sector urged to ensure sufficient domestic supply

The Vietnam National Coal and Mineral Industries Holding Corporation (Vinacomin) should focus on increasing production to ensure sufficient domestic coal supply and reduce the risks of an energy shortage. Speaking at the January 13 conference on implementing the 2015 tasks, Deputy Prime Minister Hoang Trung Hai said coal exploration and exploitation should work in tandem with development in other local economic sectors, such as the environment and tourism. The Deputy PM requested Vinacomin apply advanced technology to increase productivity and efficiency, evaluate coal in reserves in the Red River Delta, while developing projects on aluminium, titanium, and other rare earth minerals. The sector set a consumption plan of 38 million tonnes of coal, including three million tonnes for export, and an output of at least 8.6 billion kWh in 2015, said Vinacomin General Director Dang Thanh Hai. The group expanded its production from the outset of this year to meet domestic demand while … [Read more...]