VINACOMIN with Ambitious Development Strategy

Vinacomin strategy is to accelerate business growth rate in harmony with community, environment friendly and workers’ welfare. Vinacomin will also base itself on natural and human resources to diversified business activities in three phases : Phase 1, exploiting most efficiently mineral resources at home and abroad; Phase 2, developing industries relating to coal and minerals; Phase 3, creating business activities relating to industries of Phase 2 and others to generate continued value chains.

The third objective is to expand with better organization and management, applying multi-ownership and new technology to modernize and maximize domestic resources and international cooperation (science, technology, training, investment, finance, trace, etc.) including overseas investments.

 

In addition to the above three objectives, Vinacomin will also focus on the development of human resources of high skill and professionalism fully committed to the interests of Vinacomin and the Nation, the key to any success.

 

The guidelines of Vinacomin are Boldness (to make a breakthrough), Perseverance (to overcome difficulties) and Knowledge (to ensure correctness), which will create new opportunities, make the best of opportunities and facilitate high growth and sustainable development.

 

We plan to make Vinacomin a leading group of Vietnam by 2010, and by 2015-2020 an economic group of the region and 2025-2030 a trans-national group of the world. The turnover will double every five years.

 

We have worked out detailed development strategies for each industry and business, sector and area. For instances, regarding strategic products, we focus on coal and related products ( minerals, metals, electricity, mechanics, mining chemicals, etc.). The market strategy is based first on domestic market and expands later to regional and world markets, combining price policy with marketing and distribution, after sale and customer care services. Regarding investment orientation, we develop from the core – the exploitation of mineral resources, to coal-fired thermal power and by products, expanding from Quang Ninh to the Central Highlands, Central Vietnam and neighbouring countries.

In 2004-2006, together with increasing output, capital construction has been developed to meet higher demand of coal production and business activities of Vinacomin. Investment in coal production is served as the foundation for other activities. The success of coal production generates development in other fields such as energy, minerals, mechanics. In return, those fields will re-invest in the coal production. The investment in the coal production includes modernization of mining technology by fixed and mobile water-pressure support, Combai excavator, early warning and safety equipment, computerized business management. Investments will also be made in other fields such as mechanics, electricity, minerals, industrial explosive and chemicals, infrastructure, coal screening, service, trade, school, institute and centre.

 

In 2007, Vinacomin has invested and started operating Sin Quyen Copper Complex (Lao Cai), Thai Nguyen Zinc Plant of 10,000 tonnes per year. It will begin soon Co Dinh Chrome project (Thanh Hoa) and mineral planning in Northern part of Vietnam. It will also proceed with bauxite-alumin project of 300,000-600,000 tonnes/year, Cao Ngan power project of 100MW, Cam Pha thermal power plant of 1,300MW, Mao Khe of 220MW as well as that of Nong Son.

 

Also in 2007, Vinacomin has developed infrastructure in coal areas such as infrastructure and housing projects for the workers in Ha Long, Cam Pha, Yen Hung, expansion of coal ports in Uong Bi and Cam Pha, coal screening conveyors in Mao Khe, Uong Bi and Quang Ninh, portions of Highway 18 and road networks in Uong Bi and Cam Pha.

 

Vinacomin will build a hotel in Khe Doi, operation centres in Cau Giay and Ho Chi Minh City, and upgrade head office at 126 Le Duan, Hanoi. It will expand La Hien cement plant and build Quan Trieu cement project as well as projects of building materials, consumers goods, trade and service, producing 450,000 tonnes of cement and 3,400 tonnes of lubricant.

 

The development orientation of 2015 will include application of new technology in coal exploitation and processing, getting deeper in existing mines and investing in new mines to increase the output, especially focusing on human resources development. The investment capital is expected at some VND10,000 billion a year. To this end, Vinacomin will mobilize more capital from commercial banks, foreign sources, savings, project bonds, transform ownership, issue stocks, increasing at least 10-20 per cent of capital a year. It will also apply financial hiring of fixed capital on equipment.

 

It is a good question and it also shows that you are well informed of our strategy. For us, people are both objective and driving force deciding the course of development. Therefore, investment in the development of human resources is our first priority and as the following :

 

One, training officials and managers highly proactive and dynamic, controlling and solving crisis.

 

Two, training a workforce of high skill and good health, professional managers with knowledge of foreign languages and law and fully committed to Vinacomin.

 

Three, developing the capacity of the workforce in all fields : physical , moral, economic and cultural; building industrial working style of globalization era with cultural identity of Vinacomin.

 

Four, building and modernizing Vinacomin schools of regional and world standards; increasing training cooperation with local and foreign partners.

According to the energy development strategy of 2015, the total capacity of Vietnamese power plants must be 15,000MW. At present, even with existing thermal power plants, Vietnam has to import coal. Every country wants to control the coal supply. No country can sign five-year coal contract with Vietnam, except perhaps Australia.

 

Vietnam needs some 80,000-100,000 tonnes of coal a year while its output is only 45,000 tonnes. At most, Vinacomin can produce some 20 million more tonnes.. Experts advised that Vietnam should not use its high quality anthracite for power generation. Vietnam can export it and import lower grade coal for suitable technology. It can solve both problems of coal export and power demand. Vinacomin has asked the energy sector to apply new technology to save high quality anthracite.

 

Vinacomin has also recommended the government to conduct research on coal basin in the Red River Delta with deposit of 100 billion tonnes. The coal is suitable to power plants, cement and steel industries. Joint ventures established with foreign partners and modern technology will turn coal into gas to generate power in BOT form by 2015 the latest. Like Vietnam, Ukraine, China and many other countries also need more coal. No doubt, the energy security strategy in the forefront. I believe that the government should take some strong measures on the issue.

In Laos : Vinacomin has several investment projects exploiting and processing coal, bauxite, copper, alumni, especially iron ore in Phunhuon, Xiengkhuang. The investment in the exploration period is some US$3 million for the deposit of some 70 million tonnes of iron ore. The high quality iron ore (low zinc content) is useful to process with Thach Khe iron ore of Vietnam in steel metallurgy. After the exploration of three years, the output is expected at 1-2 million tonnes of ore a year. The total investment at Phunhoun will be some US$500 million for exploitation and metallurgy.

 

In Cambodia: Vinacomin is completing documents for exploring some mines of antimoin, chrome, titan, iron, etc. The Cambodian government has granted it license to explore iron ore at Stuntmen and establish joint ventures with two Cambodian partners. The registered capital of the joint venture is US$15 million with 15 per cent shared by Vinacomin.

 

After three years of preparation, the expected capacity will be 2-4 million tonnes/year. Vinacomin plans to build a steel complex in Stungtreng worth some US$1 billion including mining and metallurgy.

 

Vinacomin has recommended the government to support it in the competition with companies of other countries which invested earlier in Laos and Cambodia and accelerate investment formalities in Laos and Cambodia.