Vinachem Grows Slowly in 2005
Vietnam National Chemicals Corporation (Vinachem) said that in 2005 Vinachem’s revenue increased 13.9 per cent, but the profit (managed by Vinachem) only increased 1.16 per cent compared with 2004. This is the first year that Vinachem has gained such a low increase, while in past years, its growth rate still reached two-figure numbers, even rather high rates of nearly 20 per cent.
Mr. Do Duy Phi, Director-General of Vinachem said that the most important reason for this low growth rate were production difficulties of its two key rubber and fertiliser products (accounting for up to 64 per cent of Vinachem’s industrial output), therefore, the high increases of other products could not compensate.
Production of rubber products accounting for 23 per cent of Vinachem’s output also faced difficulties. Among tyre and tube products, only those of cars approximately reached the set plan, while those of motorbikes and bicycles reached from 80 to 90 percent of the yearly target. One reason behind this was that tyres were imported in large quantities, not much more expensive than local ones but of better quality. In addition, Vinachem has suffered from impacts of bad quality tyres made by its member enterprises since 2004.
Mai Anh
Vietnamese
