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DAP No.1 project - Hai Phong has recorded positive business and production activities from 2017 up to now. Photo: ST.

Interest on interest

Among loss-making projects of Vietnam National Chemical Group (Vinachem), DAP No. 1 - Hai Phong fertiliser plant project is the best. Completed and put into commercial operation in 2010, the production and business activities of the project were profitable up to 2015. However, in 2016, the plant faced many difficulties, causing a big loss of VND 420 billion. However, from 2017 up to now, the project has gradually overcome difficulties and gained profits of VND 14.8 billion in 2017; VND 195.5 billion in 2018 and VND 18,263 billion in the first quarter of 2019, respectively.

Related to DAP-1 – Hai Phong project, at the recent meeting of the Steering Committee to handle shortcomings and weaknesses of some slow and inefficient projects and enterprises of the Industry and Trade sector, Deputy Prime Minister Vuong Dinh Hue said this project saw "losses and losses", now it is profitable, which is appreciated. It will solve the problem of jobs for workers, ensure income of workers and maintenance of machinery and equipment.

Evaluating the positive results especially in 2018, President of Vinachem Nguyen Phu Cuong said it was because the factory cut costs. This cut in 2018 amounted to VND 99 billion, accounting for half of the plant’s interest. However, according to Cuong, at the end of 2018 and in the early months of 2019, the plant faced difficulties due to high coal prices, even scarcity due to prioritising coal for electricity production. To overcome this problem, the plant leaders had to ask the Vietnam National Coal and Mineral Industries Group(Vinacomin) for help.

"In principle, coal used for fertiliser plants such as DAP 1 - Hai Phong must meet the requirements of humidity. However, when coal carriers have just arrived at the port and coal is not dry yet, the coal is put into production. This has resulted in a low efficiency and large consumption. Vinachem proposed Vinacomin to supply sufficient coal for DAP-1 Hai Phong for production," said Cuong.

Focus on improving business efficiency

With DAP No. 1 -Hai Phong, the treatment of gypsum waste at the factory to make construction materials is considered a problem. To address this problem, Vinachem said the group has worked with relevant ministries and agencies to handle the problem of using phosphogympsum (PG) plaster as an additive in cement production, thereby solving the gypsum waste problem in fertiliser production plants, minimising the risk of environmental pollution, making the most of waste during fertiliser production.

Informing the press at the beginning of July on the implementation of the scheme on dealing with shortcomings and weaknesses of some low and ineffective projects and enterprises in the Industry and Trade sector, Director of the Planning Department (Ministry of Industry and Trade) Duong Duy Hung said the Ministry of Construction and the Ministry of Science and Technology have together to develop standards and regulations on the use of PG plaster, creating conditions for gypsum waste treatment at fertiliser plants to make construction materials. It is expected that in the next 3 - 5 years, the existing PG gypsum waste dump of the DAP 1 – Hai Phong fertiliser plant project will be solved.

The Ministry of Industry and Trade stated the current key issue of the project is to focus on improving production and business efficiency, promoting products and developing market, and organising distribution systems and customers. In addition, there is a need for further research and a plan to improve product quality as well as to deal with gypsum dump in the production process and ensure labour safety and environmental protection in the production process.

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The Ministry of Industry and Trade said Vinachem should urgently direct the completion of dossiers to remove this project from the List of inefficient projects in the Industry and Trade sector so DAP No. 1 - Hai Phong shall be entitled to normal credit institutions like other normal production and business units and restricts the impact on its trademark and improve its competitiveness