Vinacomin - Viet Bac Mining Industry Holding Corp.: 40 Years of Solid Development

40 years (1980 - 2020) is long enough to confirm the steps and foundation of sustainable development of a large-scale business. For Vinacomin - Viet Bac Mining Industry Holding Corporation, that affirmation is substantiated, together with stunning achievements of rapid growth, reputation and quality.

Vinacomin - Viet Bac Mining Industry Holding Corporation, formerly known as Coal Company 3, was established on July 1, 1980, under Decision 42 DT/TCCB dated June 17, 1980 of the Minister of Electricity and Coal. Through its 40 years of impressive development, the corporation has overcome numerous challenges and difficulties to obtain significant achievements. Vinacomin - Viet Bac Mining Industry Holding Corporation has successfully built a solid foundation for further strong development over the past 40 years, steadfast under the approach “Coal-based business diversification”.

Proud history

Looking back on the early days of construction, the corporation managed 22 affiliated units with more than 10,000 employees, most of whom were construction workers and low-skilled workers. The firm’s coal mines had small production capacity and outdated mining equipment. Some mines had no access to the national power grid but used local generators to produce electricity for production activity and workers’ livelihoods as in Nong Son coal mine and Khe Bo coal mine. Given low labor productivity, employees' life was very difficult.

The corporation’s annual coal output was 300,000-400,000 tons a year in the 1980-1990 period. Coal revenue accounted for just a third of the gross revenue. Its employees primarily worked in civil and industrial construction engineering, transportation, mechanical repair, construction material manufacturing, sand and gravel extraction, and wood and forest product processing.

Under the leadership of Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin), Vinacomin - Viet Bac Mining Industry Holding Corporation worked out an equitization plan to operate as a holding corporation and submitted it to competent authorities for approval. On January 26, 2015, the Prime Minister issued Decision 132/QD-TTg to ratify the equitization plan and the corporation was resultantly transformed into a joint-stock business entity from October 1, 2015 with a registered capital of VND1,050 billion. This event opened a new period of sustainable development of Vinacomin - Viet Bac Mining Industry Holding Corporation.

After being transformed into a new operating form, the corporation conducted a restructuring program in 2016-2020, with a vision to 2025, approved by Vinacomin Group under Decision 2195/QD-TKV dated December 11, 2017, under which Vinacomin - Viet Bac Mining Industry Holding Corporation continued to improve the organizational management model, restructure the workforce for a leaner apparatus, divest its stake from some fields to focus resources for developing two core business lines - coal and cement - as well as perfect and reform the internal governance to modernize and professionalize its technology and governance, and enhance its competitiveness, performance and sustainability.

Up to now, the corporation has completed restructuring four affiliated units and nine joint stock companies with nearly 4,000 people with managerial qualifications, high technical skills and professional skills and bought modern production equipment. In the last 40 years, the firm has produced and sold nearly 37.1 million tons of coal; removed 213.7 million cubic meters of rock and soil; manufactured and sold 23.2 million tons of cement and 48.5 million square meters of steel mesh used for mine roofs and 325 million cement bags; and earned gross revenue of VND58,928 billion.

The current success of the corporation comes from the viewpoint of “Harmonizing the interests of the corporation with its responsibility to the development of communities where its units operate. Well observing the direction of superiors, taking advantage of the support and assistance of the Party Committee, central and local authorities at all levels, and overcoming difficulties for continued development, Vinacomin - Viet Bac Mining Industry Holding Corporation has built a strong force of technical workers dedicated to their work, eager to learn and grasp new knowledge and new technology for effective production and business. A contingent of leaders and managers has sharp thinking, decisive action, good management and perseverance in the face of difficulties and respects State laws and policies. They know how to mobilize the potential strength of the whole corporation, how to help the corporation overcome difficulties to succeed in all business situations. That has created a synergy for Vinacomin - Viet Bac Mining Industry Holding Corporation to successfully complete its tasks in different stages. 

General Director Tran Hai Binh said, “Looking back on its development history, we always respectfully preserve and promote lessons learned. This is also a valuable tradition of the corporation in the course of development: Persistently renovating governance toward perfection of organization and personnel - a decisive factor for the existence and growth of the corporation”.

Firm steps into the future

Determined to foster innovations for development, prepare all resources for deep global integration, in the coming time, Vinacomin - Viet Bac Mining Industry Holding Corporation will make intensive investment, speed up scientific and technological application, continuously renovate and perfect internal governance for better operational performance, maximize profitability, generate jobs and stable income for employees, increase dividends for shareholders and pay more tax to the State Budget based on the goal “Safety - Efficiency - Development”. The corporation will produce enough coal for Na Duong and Cao Ngan thermal power plants, cement factories and other consumers; increase the output capacity of Na Duong coalmine to 1.2 million tons of coal a year to feed Na Duong 2 thermal power plant, invest in deeper mining at Nui Hong coal mine to over 500,000 tons a year and at Khanh Hoa mine to over 800,000 tons a year. For cement business, the corporation will make intensive investment to improve productivity and coal quality and lower product cost to boost the output to 3 million metric tons of cement a year in the coming time.

With its valuable contributions of all employees in the past 40 years, Vinacomin - Viet Bac Mining Industry Holding Corporation has been awarded many noble titles by the Party and the State: Labor Hero in the doi moi (renovation) period in 2005, Third-class Independence Order in 2006; and Second-class Independence Order in 2015. Na Duong Coal Company and Nui Hong Coal Company were honored with the Second-Class Independence Order. Khanh Hoa Coal Company and Na Duong Coal Company were named Heroes of the People's Armed Forces. On its 40th anniversary (August 1, 1980 - August 1, 2020), the corporation was honored with the Emulation Flag by the Government and the Certificate of Appreciation by the State Capital Management Committee. That is the reward for enduring and tireless efforts of all employees to nurture the prosperity of the corporation.

The future is open to both opportunities and challenges, requiring employees of Vinacomin - Viet Bac Mining Industry Holding Corporation to promote the tradition of solidarity, diligence and creativity to create new forces for the corporation to fulfil the strategic task of “extracting as much coal as possible for national construction” assigned by the Party and the State.

Source: Vietnam Business Forum