The situation of 12 major shelved projects: Revival of Dinh Vu fibre factory

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Dinh Vu fibre factory is ready for increasing capacity in the future. Photo: Khac Kien.

Stable operation of 10 lines

According to the latest information from Vietnam Oil and Gas Group (PVN), Dinh Vu polyester fibre factory in the first three months of this year was operating stably 10 yarn production lines to supply the market with nearly 2,000 tonnes of DTY yarn. Notably, the products of the factory are high quality and stable, while production costs are reduced compared to the previous. Specifically, PVTex's output in the first three months of the year reached 1,914 tonnes of yarn according to partners' orders, An Son Synthetic Fiber Joint Stock Company. The quality of products of type A has reached and exceeded the signed contracts.

PVN further information: PVTEX has also focused on completing the repair and maintenance plan for the operation of the whole plant to An Son Synthetic Fiber Joint Stock Company and foreign consultants to consider to beat prices and suggestions; review, amend and supplement and promulgate procedures for guidance, operation, maintenance and quality management; arrange storage of the plant's technical documentation; mobilise experienced industry experts to maintain machinery and equipment to ensure safe and efficient operation.

According to PVN, although facing many difficulties and challenges, more than 200 employees (including nearly 90% direct employees) are working hard at Dinh Vu polyester fibre factory. PVTEX has carried out consolidation of the organisational structure, re-arranging labour in accordance with the reality in order to carry out business and carry out the project settlement. One worker must concurrently hold two or three positions, taking on a large amount of work. To implement the plan to re-operate the whole factory, PVTEX is also trying to recruit and call former employees of the factory back to work.

Operate the entire plant in 2019

Up to now, the work of dealing with production recovery issues Dinh Vu polyester fibre factory has completed the first solid steps. Highlights must mention that the project has completed the dispute of the General Contractor Contract (EPC). However, handling issues within the project still faces some difficulties and obstacles.

The Ministry of Industry and Trade stated: Dinh Vu polyester fibre factory is one of the projects still facing the problem of depreciation and restructuring loans so it continues to face difficulties in allocating resources. Main activities for handling problems, obstacles as well as arranging working capital for production and business activities, and Dinh Vu polyester fibre factory is also one of the projects with negative capital. The owner should have difficulty in arranging funding to perform the work to start and re-operate the factory and stabilise production.

Around the revival story of Dinh Vu polyester fibre factory, Deputy Minister of Industry and Trade Tran Quoc Khanh said: PVTEX has continued to negotiate to expand the implementation of DTY processing contract with An Son Fiber Joint Stock Company; is continuing to negotiate the contents of the business cooperation contract with the expected target in the second quarter of 2019 to increase the scale of operation of 15-18 lines and proceed to operate the whole plant in 2019.

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The tasks that need to be implemented proposed by the Ministry of Industry and Trade are: The Public Security Agency considers and delineates the responsibility of the investment phase to create conditions for the next officials and partners to feel secure in recovering factory; reviewing some tax policies (continue to apply a 2% import tax policy for fiber products, import polyester yarn, corporate income tax incentives with a 10% tax rate, 50% VAT reduction to facilitate the competitiveness of PVTex products in the domestic market) and depreciation of fixed assets (consider, allow the minimum depreciation of fixed assets within the first 3 years when bringing houses The machine goes into operation again).