VINACHEM

Projects incurring losses of trillions of dong, personnel scandals and multi-level marketing firms swindling customers were the top issues dominating 2016 for the Ministry of Industry and Trade (MOIT).

1.Twelve projects run by companies belonging to MOIT have been found unprofitable and incurring a loss of trillions of dong. These included five super-projects mentioned at the latest National Assembly’s second session – Dinh Vu Polyester Plant, Phuong Nam Pulp, Thai Nguyen Iron, Dung Quat Bio-ethanol and Ninh Binh Fertilizer.

The other seven projects included Ha Bac Fertilizer, DAP 1 Lao Cai Fertilizer, DAP 2 Hai Phong, Ethanol Binh Phuoc, Ethanol Phu Tho, Dung Quat Shipyard and the joint venture between Quy Sa and Lao Cai Steel Plant.

Of these, five projects were invested by the national oil & gas group PetroVietnam and four by the national chemicals corporation VInachem.

2. A series of personnel scandals occurred.

In June, VAFI (the Vietnam Association of Finance Investors) sent documents to MOIT, MPI and government inspectors to question the appointment of Vu Quang Hai, the son of the former Minister of MOIT Vu Huy Hoang to the post of deputy general director of Sabeco, the largest state-owned brewer.

Hai has asked to resign from his position as a member of the board of directors at Sabeco.

The Party Central Committee’s Secretariat has decided to dismiss former Minister of Industry and Trade, Vu Huy Hoang, from the position as secretary of the ministry's party branch during the 2011-2016 tenure for his violations related to personnel.

In September, the police arrested four key staffers at PVC, a subsidiary of PetroVietnam and prosecuted them for deliberately violating the state’s regulations on business management, causing serious consequences.

In October 2016, two managers for PV Power and Vinachem went abroad to attend training courses and receive healthcare services. They have lost their contracts.

3. Dozens of multi-level marketing (MLM) firms have been eliminated. A report from MOIT showed that from June 2015 to November 2016, MOIT inspected and initiated an investigation into 65 MLM firms and imposed fines of VND11 billion for violations.

The ministry revoked licenses and stopped the operation of 25 companies.

4. MOIT carried out ‘unprecedented reform’ when deciding to remove 15 formalities and simplify 108 other administrative formalities. This simplifies administrative procedures to create the best conditions for enterprises to access public services and do business.

5. MOIT issued a steel industry development strategy to 2025, which has raised controversy among the public because the strategy outlines the development of a series of new steel complexes. Meanwhile, steel manufacturing has become a ‘sensitive’ field after Formosa’s steel complex caused an environmental disaster in mid-2016 in the central region of Vietnam.