Speaking at the “Conference on implementing monetary policy tasks in 2024 focusing on resolving difficulties for production and business, promoting growth and macroeconomic stability” on March 14, Chairman of the Board of Directors of Vietnam Chemical Group Nguyen Phu Cuong said that in 2023, despite facing many challenges, the group overcame difficulties and achieved some positive results.
The consolidated revenue of Vietnam Chemical Group reached over VND 57,000 billion, the profit was approximately VND 3,500 billion, and it contributed VND 1,700 billion to the state budget. The group ensured employment for nearly 20,000 employees, with an average income of VND 13.6 million per person per month.
In 2023, the group produced over 3.1 million tons of various types of fertilizers, 3.4 million automobile tires, 330,000 tons of detergents, and some other chemical products.
Some products saw significant growth, including a 17% increase in urea, a 35% increase in DAP, a 15% increase in super phosphorus, and an 18% increase in detergents. The group’s products contributed to the stability of the market supply and demand, especially fertilizers, which contributed to ensuring national food security.
According to Mr. Nguyen Phu Cuong, the group has a debt balance at banks of about VND 15,000 billion, and most of the units in the group have a healthy financial situation, with a credit rating of A, fully repaying their debts, both principal and interest, on time.
Regarding the three weak units in a weak project of the Ministry of Industry and Trade, including Dam Ha Bac, Dam Ninh Binh, and DAP Lao Cai, during the restructuring process of these units, the commercial banking sector has provided significant support in terms of ensuring capital and cash flow.
“These are three units with negative owner’s equity, losses for many years, leading to a very difficult situation to meet credit requirements for capital allocation. However, commercial banks have also participated a lot in supporting these three units to operate stably and maintain cash flow”.
Mr. Nguyen Phu Cuong, Chairman of the Board of Directors of Vietnam Chemical Group.
In addition, thanks to the decision of the Prime Minister and the direction of the Prime Minister and Deputy Prime Minister, the Vietnam Development Bank (VDB) has also restructured the loans of these three units.
Accordingly, the interest rate on loans has been reduced from 11% to 8.55% at VDB, the repayment period has been extended, and penalty interest on late payment has been waived, helping these three units achieve profitability in their business operations for three consecutive years.
“In 2022, the total profit of the three units, Dam Ha Bac, Dam Ninh Binh, and DAP Lao Cai, reached VND 2,700 billion, and in 2023, it reached VND 1,300 billion. In the first two months of 2024, the units also operated stably and made profits, with production capacity reaching over 90% of the designed capacity,” said the leadership of Vietnam Chemical Group.
Mr. Cuong believes that the loan restructuring of the three units, reducing the interest rate to 8.55%, along with the direction of the Prime Minister and the support of the State Bank, VDB, and commercial banks, has created conditions for these three units to go from the brink of bankruptcy to stable production units.
Accordingly, for three consecutive years, the two urea production units will produce approximately 1 million tons of urea annually, supplying the domestic and export markets. Currently, Dam Ha Bac has regained positive owner’s equity of VND 600 billion.
“As of February 29, 2024, a total of three units, Dam Ha Bac, Dam Ninh Binh, and DAP Lao Cai, have fully repaid both principal and interest to Vietnam Development Bank, totaling VND 12,138 billion on the initial total debt of VND 10,600 billion,” said the leadership of Vietnam Chemical Group.
Due to the restructuring and rearrangement, the units have stable cash flow and production, maintaining employment for workers and repaying debts to banks. As of yesterday, March 13, the production capacity utilization of all three units, Dam Ha Bac, Dam Ninh Binh, and DAP Lao Cai, was over 90%.
The Chairman of Vietnam Chemical Group emphasized that the chemical industry is identified by the Party and the Government as one of the six foundation industries, playing an important role in the economy, implementing Decision No. 1265/QD-TTg of the Prime Minister approving the “Plan to restructure the parent company – Vietnam Chemical Group in the period 2022 – 2025 and the plan to restructure Vietnam Chemical Group by 2025”. In the future, the group will invest, expand its scope, and relocate from Bien Hoa Industrial Park.
“To implement the plan to develop the potassium mine in Laos, the capital needs of the members of the group will be very large in the near future. The group hopes to continue receiving the attention and cooperation of credit institutions to have enough capital to implement the projects,” said Chairman Nguyen Phu Cuong.
