Vinacomin Making Breakthrough

According to Mr Dang Thanh Hai, General Director of Vinacomin, the Group continues to face various difficulties due to the downward fluctuation of coal prices. Particularly, large consumers of coal such as cement and steel manufacturers also face difficulties thus the consumption of coal fuel was reduced. In addition, prices of raw materials continue to rise (excluding petrol). However, with the tasks assigned by the government and ministries from the beginning of the year, Vinacomin was determined to maintain production and consumption; carry out synchronic measures to cut production costs, lower product prices and be active in seeking domestic and foreign customers.

 

To improve competitiveness and make a breakthrough in the development of engineering sector of Vinacomin, Mr Dang Thanh Hai asked for a closer cooperation and coordinate among the member units and to work out development strategies to develop the engineering sector of the group.

 

He also said the development planning of the coal-mining industry until 2020 with vision to 2030 specified that the development orientation of engineering sector is to enhance research, design and manufacturing capabilities on its own and boost application of advanced technologies and technological transfers for enterprises in the sector. Vinacomin is making the most of the available resources to make high quality and competitive products and maintain the growth of engineering enterprises.

 

The group is also making drastic instructions on the Institute of Energy and Mining Machines – Vinacomin to coordinate with mechanical enterprises to gradually standardize the designs of full-set products, aimed at building a standard system of the sector to both ensure industrial characteristics in the domestically-made engineering products and setting up a technical barriers to differentiate from the low quality mechanical import products.

 

In addition, every year, the group will instruct its member units to complete documents and register the list of newly-manufactured products with the Ministry of Industry and Trade so that the relevant ministries and sectors could adopt appropriate tax mechanisms and policies on its products.

 

Vinacomin Power was ranked highly among the 500 fastest growing companies in the country in 2014. The FAST 500 rankings' list, recently released by the Vietnam Report, showed that first- place holder Samsung was followed by the Electricity of Vietnam (EVN), the Vietnam National Coal and Mineral Industries Holding Corporation Limited (VINACOMIN) and the Vung Ang Oil and Gas Petroleum JSC (VungAng PV Oil).

 

According to the Vietnam Report, the compound annual growth rate (CAGR) of the ten leading firms in the FAST500 was 102.18 percent. More than three-fourth of the enterprises included in the survey said they would expand their business activities to boost turnover and their presence in the market, while 19.2 percent said they would continue with the same operations as in 2014.

 

Responding to the 17th National Week on Labour Safety and Hygiene – Fire and Explosion Prevention (LSH – FEP) in 2015, on 16th March, 2015, at Uong Bi Coal Company, Vinacomin Group launched the movement of responding the week on Labour Safety and Hygiene – Fire and Explosion Prevention 2015.

 

As tentatively planned, the Week is implemented by the whole Vinacomin Group in the period of 15 – 23 March 2015. The Week will focus on promoting propaganda, training, inspection and examination of LSH – FEP at enterprises, production and business establishments.

 

This is an annual activity aiming at raising awareness of explosion and fire prevention, strengthening propaganda to make labourers in agencies and enterprises execute rules on Labour Hygiene Safety and Explosion and Fire Prevention and reducing labour accidents and occupational diseases.

 

Responding to the launching ceremony, all member units of the Group have organized many activities in response to this week.

 

According to a notice of HNX, Vinacomin Power Corporation will operate IPO on 16th April, 2015.

 

The Corporation has a charter capital of VND6.8 trillion (US$319.2 million). It will sell 680 million shares in the first initial public offering (IPO) at VND10,000 (US$0.46) per share. The corporations share was set to be listed on the stock market according to the current regulations.

 

Vinacomin will continue to hold 442 million shares, accounting for 65 percent of the total charter capital. More than 1.6 million shares will be sold at a preferential price to workers, accounting for 0.24 percent of the total, while more than 236.4 million shares, or 34.76 percent of the charter capital, will be auctioned. The value of this IPO is expected up to VND 2,364 billion - the highest level of IPOs since the beginning of the year, even from early 2014.

 

Vinacomin Power currently manages five coal-fired power plant consists of Cam Pha, Son Dong, Mao Khe, Na Duong and Cao Ngan with a total capacity of 1,460 MW.

 

Vinacomin's Deputy General Director Nguyen Van Bien affirmed that following the Prime Ministerial Decision 314/QD-TTg, dated February 7, 2013, which approved the group’s restructuring project for the 2012-15 period, Vinacomin has promoted the equitisation of some member companies as per schedule. Of the six member units that were equitised in 2014, three units, including the Mineral Corporation, the Electricity Corporation and the Viet Bac Mining Industry Corporation, had more than VND500 billion (US$2.38 million) in charter capital.