Yen Bai VPG Minerals JSC Withstands Challenges

Yen Bai VPG Minerals Joint Stock Company was formerly a State owned enterprise which went public in 2001. After 10 years operating in the new business model, the company has asserted its position in the mining industry. With proper approaches and strategies, VPG not only got through difficulties from the global financial crisis and economic downturn, but also gathered extra momentum for the resilience of the Yen Bai economy.

 

Global economies experienced a rough time in 2010. Although the worst time of the economic crisis was over, its impact stubbornly persisted. Both the ups and downs of the world economic picture are translated into business community performance. Volatile foreign exchange rates, rising prices of input materials, narrowed access to credit sources, and growing lending rates are biting into operations of companies. Yen Bai VPG Minerals Joint Stock Company was no exception to this devastating storm. 2010 was actually a very tough year for VPG Minerals. In addition to general difficulties arising from higher prices of inputs like petroleum, materials and payroll, transport cost is another hitch for the company because of long distances to delivery locations. Moreover, the company did not receive tax breaks. Worse, royalties (a type of tax on natural resources) on ceramic materials were raised from 7 percent to 15 percent while the company was struggling to withstand the fierce competition of rivals.

 

VPG Minerals quickly responded to negative situations with appropriate solutions, orientations and strategies to retain stable growth. The firm also restructured its workforce to boost productivity and strengthen unity, consensus and determination to get through all difficulties and challenges for a better future. Riding out this tough time, the company still preserved its capital, maintained growth and fulfilled tax obligations to the State. It seriously implements the instructions of the central government and People’s Committee of Yen Bai province on downstream processing investment and mineral value-added increase. From now to 2013, VPG will diversify its production and business activities and invest in some new projects to create momentum for sustainable development. These projects include a VND11.3 billion project to expand feldspar with an annual capacity of 70,000 tonnes in Nam Yen Bai Industrial Park (Van Tien commune, Yen Bai City) which was planned for operation in May 2011; a VND75 billion project to exploit and process Luc Yen marble, expected to produce 15,000 - 20,000 cubic metres for a 100,000 square metre a year processing factory, in Dao Lam Quarry (Yen The town, Luc Yen district). In addition, the company invested VND2.5 billion in a feldspar ore breaking facility with a yearly capacity of 60,000 tonnes in Nam Yen Bai Industrial Park (Van Tien commune, Yen Bai City) which went into operation in February 2011. VPG Minerals also invested over VND80 billion in exploring and producing graphite in Mau A, Yen Thai and Van Yen with an annual output of 2,500 tonnes of refined ore.

 

With strategic visions, flexible solutions and clear definition of difficulties and challenges, VPG Minerals has gradually overcome all problems to maintain growth momentum. In 2010, the firm made revenues of VND157 billion. While constantly seeking new development opportunities, VPG Minerals always put product quality on top. It regularly renews and upgrades equipment and technology, improves working skills of employees and applies advanced management methods to meet the requirements of customers. Hence, the company has gained stronger ground in the ceramics, construction material, chemical and electricity industries.

 

With its resilience through outside changes, VPG Minerals has achieved positive business results, stabilised production and business activities, ensured living conditions for employees, and actively contributed to the overall economic development of Yen Bai province. The company aims to earn VND209.5 billion revenues a year in the near future. VPG Minerals will continue investing in some new projects to expand its operating scale and open new business realms. The firm will spare no effort to bring more of its products to domestic and global markets to become a leading mining company in Yen Bai and in Northwest Vietnam.