Vietnam’s Ministry of Construction has opposed the Ministry of Industry and Trade’s proposal to transfer the 1.5Mta Quang Son facility from Vinaincon to Vicem, both state-owned corporations, partially due to the plant’s losses and mounting loans, according to Viet Nam News.
"Quang Son cement plant is located in an unfavorable position for transportation that leads to high production costs," said Luong Quang Khai, chairman of the board of members, Vicem.
"In addition, the plant is suffering from heavy losses while the loans have mounted to equal 95 per cent of the plant’s total investment. Therefore, it is difficult to restructure the plant, especially in the context of the oversupply of cement in the domestic market," added Mr Khai.
