Company news

On the morning of 21st July in Hanoi, Mr. Đào Trọng Cường, Deputy General Director of Vietnam National Chemical Group (Vinachem), attended the workshop 'Restructuring State-Owned Enterprises: From Resource Allocation to Driving Growth' organised by Tiền Phong newspaper. The event featured Mr. Nguyễn Đức Hiển, Deputy Head of the Central Policy and Strategy Commission; Mr. Doãn Thanh Tuấn, Deputy Director of the Department for State-Owned Enterprise Development, Ministry of Finance; economic experts; and leaders from various state groups and corporations.

Speakers at the workshop agreed that, as the country sets ambitious growth targets for the new period, state-owned enterprises (SOEs) must move decisively from capital management to growth creation, taking the lead in key sectors of the economy. Governance reform, more efficient resource use, the application of science and technology, and building modern management mechanisms were identified as central solutions for SOEs to generate new growth momentum.

At the workshop, Mr. Đào Trọng Cường shared that, on 28th October 2023, the Prime Minister signed Decision No. 1265/QD-TTg approving the restructuring plan for the parent company – Vietnam National Chemical Group for 2022–2025 and the restructuring scheme for the Group up to 2025. This decision is of particular strategic significance, providing the foundation for the Group’s restructuring efforts from the parent company to its subsidiaries for the 2022–2025 period. Thanks to attention and direction from the Government and ministries, Vinachem’s restructuring has achieved many positive results. In particular, the Government’s issuance of the SOE restructuring scheme has enabled the Group to synchronously implement solutions. By June 2025, the Vinachem parent company had cleared all accumulated losses, meeting the Government’s targets and establishing a strong financial base for the next phase of development.

However, there remain a number of bottlenecks that need to be resolved. In our view, the three biggest issues are financial mechanisms, capital, and land. If comprehensive solutions can be found for these areas—especially special mechanisms or a dedicated resolution to address outstanding problems—the equitisation and restructuring of SOEs will proceed more rapidly and effectively.

For Vinachem, the chemical industry is characterised by very high investment needs and long capital recovery periods, while projects must increasingly meet advanced requirements on technology, environmental protection, green growth, and sustainability. Thus, enterprises urgently need stable medium- and long-term capital sources to implement strategic projects in line with Party and State directions.

As for previously delayed projects such as Ninh Binh Nitrogenous Fertilizer and Chemical Limited Company, DAP No 2 – Vinachem, and Ha Bac Fertilizer and Chemical Joint Stock Company, the biggest current challenge is completing negotiations and project finalisation. Aside from these matters, most major obstacles have gradually been removed, and the plants are now maintaining stable, efficient production in accordance with the restructuring plan.

Additionally, we recommend the swift establishment of dedicated chemical industrial zones aligned with local planning. With suitable land, enterprises can enhance value chain linkages, reduce logistics costs, strengthen environmental management and chemical incident response, and thus increase competitiveness. At present, Vinachem’s products—including fertilisers, basic chemicals, detergents, and plant protection products—are exported to around 80 markets worldwide, many of which have very high standards such as the United States.