VINACHEM

DAP-Vinachem JSC, a subsidiary of State-owned Vietnam National Chemical Group (Vinachem), has posted a profit of a decent VND6.6 billion (over US$290,000) in the first two months of this year, Tien Phong newspaper reports.

Nguyen Van Sinh, general director of DAP-Vinachem JSC, told a working team from the Ministry of Industry and Trade late last week that the company neither racked up losses nor had large inventories last year.

There are signs of production improving in the first two months of this year. Its two-month profit of about VND6.6 billion accounts for 30% of the firm’s 2018 profit target.

Despite these positive developments, the company has found it tough to take out bank loans. General director Sinh suggested fertilizer be classified as a commodity subject to value-added tax (VAT) so that it could claim VAT refunds.

He proposed the ministry work with the State Bank of Vietnam and the Vietnam Development Bank to extend the company’s loan repayment period to two years, starting from September 2018.

Synthetic gypsum products should be exempted from VAT to make them better compete with imported natural gypsum items.

SGT