Knowledge of Market Economy Laws Have Been Gained, says Vinacoal's General Director

Knowledge of Market Economy Laws Have Been Gained, says Vinacoal's General Director

VIB Forum held an interview with Doan Van Kien, General Director of the Vietnam Coal Corporation about their achievements and ambitions for the coming years.

How would you assess Vinacoal's achievements since its establishment 10 years ago?

After 10 years of operation in the form of Corporation 91, Vinacoal has recorded the following achievements:

• Orderly production of coal has been re-established meeting both the demands of the economy and the export market. The coal output in 2004 is expected at 24 million tonnes; four times that of 1994, while the workforce has increased significantly.
• The business structure has been diversified on the foundation of coal production. Vinacoal now operates a thermo-electricity station, another is under construction and two further stations are planned. Our mechanics have been shifted from repairing to the manufacturing of mining machines, electric equipment, truck assembly and ship-building. The industrial explosives sector can now produce explosives using advanced technology and has expanded the service nation-wide. The productions of cement and building materials, trade and tourism have also been developed. The turnover of coal and other businesses are respectively 65 and 35 per cent.
• The working conditions, mining environment and the lives of the workers have been improved. The coal sector is increasingly participating in charity programmes, poverty reduction and the fight against social evils.

What are the reasons for these successes?

To obtain those achievements, in the past decade Vinacoal's managers and workers have strictly followed the political line of the Party, the direction of the government, the guidance and assistance of related central agencies, local authorities and the people. For its part, Vinacoal's management has a definite strategy which we have adhered to. Many of the objectives that were put forth 10 years ago have been achieved. We are proud of our democratic management which has helped develop the creativeness and resources of the sector, especially among staff members and workers, at the same time gaining the assistance of local and foreign partners.

Could you outline some challenges that Vinacoal has successfully overcome?

It is true that we have been confronted with many challenges. The most significant being the illegal exploitation of coal, then there was the monetary crisis of 1998-1999 and the regional economic storm which also affected Vietnam: low demand in electricity, coal, cement, fertiliser and chemicals compelled us to drop production levels during the rainy season of 1999. Also the fact that we weren’t familiar with the laws of the market economy. However, all these difficulties have been overcome and the managers and workers of the coal sector can be proud of their achievements.

In October 2003, the coal sector exceeded the mark of 18 million tonnes set by the State, three years in advance of the plan. Is that because of your efforts or the low target set?

The sudden increase in coal output in 2003 and 2004 was due to the increased demand of the world market as well as the all-round readiness of the managers and workforce of the coal sector.

What are the lessons from Vinacoal’s development in the past decade?

Firstly to respect and comply with the law of the market economy; that is the law of supply and demand, the law of value and price, the law of competition and the law of distribution according to the nature and result of labour. Secondly the strict implementation of our development strategy. Also the development of the workforce, mobilising internal strengths, gaining the assistance of central and local authorities and the co-operation of Vietnamese and foreign partners.

What is the orientation of Vinacoal in the coming years?

Our orientation is to diversify business activities in heavy industry with the coal sector as our foundation. The coal output in 2010 is expected at 35-40 million tonnes, the turnovers of coal and other businesses would be 60 and 40 per cent respectively. Our fundamental strengths are the stable political system and renovated thinking (of the market economy), industriousness and the creativity of our workforce. Though difficulties remain, we are determined to overcome them, asking the government only to simplify investment formalities and to guarantee Vinacoal’s place in major projects of national strategy.

How can you reconcile coal production and the environmental protection of Ha Long Bay?

"To make the coal sector exemplary and Quang Ninh beautiful" as the late President Ho Chi Minh said during his visit to the province on November 15, 1968, it is necessary to actively protect the environment, co-operating with the local authorities in the past and future programmes to prevent the side-effects of the coal production to the environment and ecology. Consequently, the coal sector can develop harmoniously with tourism and other sectors of Quang Ninh province.

• Reported by Su Ky