PetroVietnam (PVN) demanded to seriously tackle five loss-making projects

By Minh Anh - Jul 20, 2017 | 04:06 PM GMT+7

TheLEADERPrime Minister (PM) Nguyen Xuan Phuc demanded PVN leadership to justify and come up with solutions for five loss-making projects.

PetroVietnam (PVN) demanded to seriously tackle five loss-making projects
Dinh Vu polyester fibre factory (Photo:

On July 19th, Minister - Chief of the Government Office of Vietnam Mai Tien Dung led the inspection team of PM to scrutinise PVN.

In the working session, Minister Dung transmitted PM’s opinions on 4 issues which PVN needed to work on in the near future.

First, the growth target had been officially approved by the National Assembly. PVN made a remarkable contribution to this goal with a target of 13.28 million tons of oil. However, it was still much lower than the output that PVN had produced in 2015 and 2016.

“The guideline from PM states that a higher yield is encouraged but the sustainability of energy sources has to be guaranteed,” he emphasised.

Five loss-making projects (Dung Quat Shipyard, three biofuel projects and Dinh Vu polyester fibre factory) also greatly affected the growth rate. PVN should learn from what had passed and quickly tackle the issue following the guidelines of the Political Bureau.

Dung clearly stated that the Government would suspend capital allocation for these projects.

Third, PVN should accelerate the lagging thermal projects (Long Phu 1, Song Hau 1, Thai Binh 2). The ineffective units should quickly be privatised and restructured.