Prime Minister Phan Van Khai has asked the newly-merged coal and mineral conglomerate Vinacomin to ensure Vietnam’s energy security and ram up exports in an effort to become a regional giant.
The Government leader made the comments at a ceremony in Hanoi on January 14, where Minister of Internal Affairs Do Quang Trung announced the Government's decision to merge the Vietnam Coal Group with the Vietnam Mineral Corporation into the Vietnam National Coal and Mineral Industries Group, Vinacomin.
The PM said based on the Industrial Ministry's estimates of the domestic demand for coal in 2020, 2030 and 2050, the group should consider investing in the nation's largest coal mine in the northern province of Quang Ninh to produce for exports in order to retrieve capital for development.
However, for a longer-term strategy, coal production should first meet domestic demand, thus contributing to national energy security, PM Khai emphasized.
He also asked the group to tap the potential of aluminium ores in the Central Highlands and the southern central region and to make aluminium a key national industry, with a target of producing at least 2 million tons annually by 2020.
The Government leader also urged the group to invest in power generation, mechanical engineering and construction materials.
Along with developing production, the PM called on the group’s executives to pay attention to improving working conditions to mitigate labor accidents, especially fatal accidents.
Vinacomin general director Doan Van Kien said coal was the company’s major earner with 2005 revenues hitting VND21.7 trillion ($1.4 billion) and contributing VND1.15 trillion ($72.8 million) to the State budget, an increase of 50 per cent over the year before, attributing to a 21 per cent surge in standard coal to 30 million tons.
Mr. Kien said the group also targets to exploit 36.4 million tons of coal this year, up 7 per cent over 2005. Production of standard coal is expected to be 31 million tons, 47 per cent of which is destined for exports.
He added that his group plans to turn out 40-45 million tons of standard coal in 2010. Vinacomin will also build 15,000 ton ships, assemble between 3,000 and 5,000 vehicles, and produce more than 50,000 tons of explosives and approximately 1.5 million tons of cement.
“These diverse pursuits will enable the group to earn total turnovers of nearly VND60 trillion ($3.9 billion) by 2010,” Mr. Kien said.
Vinacomin trades in coal, minerals, electricity, engineering, explosives for industrial use, management and exploitation of sea and river ports, and road and railway construction.
Youth, VNA
Vietnamese
