Vinacomin Restructuring Prioritised

In the first quarter of 2016, the group extracted 10.13 million tonnes of raw coal, fulfilling 25 per cent of the full-year plan and equalling 96 per cent of the volume in the same period of last year; sold 8.5 million tonnes of coal, up 4 per cent year on year; and imported 410,000 tonnes of coal, equal to 27.3 per cent by the full-year plan. The group’s revenue reached VND22.500 billion (US$1 billion) in the quarter and the monthly income of any employee was VND8.3 million.

 

In the second quarter, the group will continue to balance its coal production, importation, sale and stockpile, ensure stable employment, and meet enough coal for the economy. Thus, it planned to produce 9 million tonnes of coal and sell 9.5-10 million tonnes.

 

Vinacomin President Le Minh Chuan said that to enhance production and competitiveness performance, Vinacomin needs to address key issues of price, quality and services, continue to implement pricing and cost solutions, improve marketing, clearly define responsibilities in consumption system, meet coal quantity, quality and types requested by customers, and uphold its strong brand name and reputation.

 

Vinacomin General Director Dang Thanh Hai said the group will make an effort to boost sales, reduce inventories, and improve business performance and competitiveness, and ensure harmonised interests between customers and Vinacomin in order to have appropriate and effective measures and policies. The group will continue to perfect its flexible operation mechanism, encourage the initiative and creativity of its affiliated units, especially downstream business units, apply consumption encouragement policies, maintain and develop markets, strictly follow business plans, build coal and transshipment ports to actively supply coal to customers.

 

At the same time, Vinacomin will continue restructuring its operations, streamlining the workforce and introducing response measures to climate change, natural disasters, storm and flooding in coalmining areas. General Director Hai praised Vinacomin’s units for effective production, and new scientific and technological application such as Khe Cham Coal Company, Ha Lam Coal Company, Vinacomin Chemical Company and Vinacomin Environment Company.

 

By the end of 2015, Vinacomin completed basic restructuring of all 11 units, including three corporations.

 

In corporate divestments, Vinacomin divested from six out of eight companies unrelated to its key business fields, five out of seven companies related to its key business fields, and transferred two overseas projects. The group arranged and transformed 10 sole-member limited liability coal companies into branches affiliated to the parent company, set up and reorganised its branches, reorganised non-business units, consolidated three vocational training colleges into Vinacomin Vocational College, upgraded its labour medical centre into Vinacomin Hospital; reshuffled and streamlined its administrative apparatus from 28 departments to 22 departments. The group will complete its internal management rules and mechanisms to enhance performance, reduce costs and raise labour productivity.

 

To raise the restructuring effectiveness, the group will focus on addressing shortcomings in labour management, finance and business authority while enhancing control and perfecting mechanisms and institutions, and actively and expeditiously implementing the restructuring period in 2016-2020 to become one of three national energy security pillars.