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Last updated: Wednesday, May 23, 2018


Vinacomin Expects 20 Pct Profit Growth in 2017

Posted: Thursday, February 16, 2017

According to the Vietnam National Coal - Mineral Industries Holding Corporation (Vinacomin), the output of coal mining in 2016 is only 93 per cent of that in 2015, but by drastically reducing the cost of inputs in the production process and strictly saving resources, the industry has completely achieved the targeted consumption and industry revenue.

Tied to the plan
The Vinacomin's profit was over VND800 billion, equivalent to the same period of 2015. The corporation contributed VND14,310 billion to the State budget, up 18.2 per cent over the same period of last year.

According to the corporation, the targeted outcome was achieved due to the drastic restructuring to minimise expenses.

Vinacomin has had 11 subsidiaries equitised. It has also divested its capital to earn VND1,962 billion with VND383 billion surplus.

After the implementation of the corporate restructuring, it has reduced the number of subsidiaries from 66 (in 2012) to 49, of which 4 companies are limited companies.

According to Vinacomin, the streamlined apparatus and improvement of labour productivity, along with the business restructuring, has helped reduce the costs and contributed significantly to the development of the corporation. Specifically, the corporation has reduced the number of functional departments/committees from 29 to 22 and removed the two-level coal mining companies and remodelled the entire corporation. From 2015 to October, 2016, it laid out 8,000 workers, helping guarantee stable production.

The corporation also maintains jobs and salaries for 112,800 workers. The average salary of is VND8.9 million per person per month, in which a worker in the coal production earns VND9.5 million per month. The average salary of miners reaches VND13.1 million per month.

In 2016, the corporation had put several new projects into operation, such as Nhan Co bauxite and aluminum complexes, with capacity of 650,000 tonnes per year; two coal refinery factories with capacity of 2 million tonnes per year.

Great expectations in 2017
In 2017, Vinacomin targets its revenue growth of 6 per cent greater than last year, reaching VND106,865 billion. In particular, the revenue from coal is expected to reach VND54,304 billion, up 51 per cent. The minerals and electricity capacity are estimated at VND11,399 billion and VND11,575 billion. The average salary of the corporation will reach VND9.3 million per person per month (up 5.3 per cent compared to 2016). The wages of miners are estimated at VND14-15 million per month.

In 2017, Vinacomin has targeted 36 million tonnes of coal mining and at the same time, the inventories fall to below 8 million tonnes. It also aims to reach profit of 1,000 billion, up 20 per cent compared to 2016.

To achieve this goal, Chairman Le Minh Chuan said that Vinacomin should continue the restructuring from 2016 to 2020 to have a streamlined but effective operation.
In 2017, Vinacomin will continue to promote its investment in research and application of modern science and technology to increase labour productivity, lower production costs and increase competitiveness of products, improve working conditions and the level of safety, resource saving and environmental protection.

Besides, it will continue to improve the management mechanism, strengthen corporate governance, particularly the resource management, cost management, investment management, accelerate the investment projects to raise coal production capacity, especially the underground coal projects, to implement development planning that has been approved by the government and ensure the progress of the projects relating to coal, electricity, minerals, metallurgy, chemical, and mechanical areas.

"Vinacomin will actively innovate and complete the organisation of production, develop high-quality human resources, provide training for the staff, increase the democracy and maintain solidarity to create synergy, improve working conditions and incomes for workers, particularly miners," said Mr Chuan.

Huong Giang

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