Vietnam Ministry proposes Quang Son cement transfer to Vicem

The Vietnamese Ministry of Industry and Trade has proposed to the government to transfer the management of Quang Son cement plant from Vietnam Industrial Construction Corp (Vinaicon) to Vietnam Cement Industry Corp (Vicem), which are both government-run corporations, amid having huge losses and mounting loans, according to Viet Nam News.

The loans have increased to 95 per cent of the total VND3.5trn (US$153m) of the project. Moreover, Vinaincon has no extra cash to fund the project, which had accumulated a loss of up to VND1.145trn at the end of 2017.

If the proposal is accepted, Vicem will meet all the loans taken by Vinaincon for Quang Son cement plant. The project, formerly known as Thai Nguyen cement plant, started its commercial operaiton in July 2011 with a cement capacity of 1.51Mta.