Vinachem targets revenue growth of 7.4%/year after restructuring

Deputy Prime Minister Le Minh Khai has just signed Decision No. 1265/QD-TTg approving Plan to Restructure the Parent Company - Vietnam Chemical Group (Vinachem) for the period 2022 - 2025 and the Project to restructure Vietnam Chemical Group until 2025.”

The goal is to restructure Vietnam Chemical Group to ensure a reasonable structure and promote its leading role in the chemical industry, exploiting maximum potential and strengths, and focusing on highly effective industry groups.

Research step by step to effectively invest and develop a number of chemical products with modern, environmentally friendly technology, suitable to social development needs.

The plan aims to strengthen the parent company - Vietnam Chemical Group to ensure sufficient resources to develop important, large-scale industrial and chemical projects, and to operate and orient the development of subsidiaries according to the Group's development strategy.

Production and business activities are effective, contributing to ensuring some balance in the national economy, contributing to ensuring food safety and security strategies in the new situation.

After restructuring, Vietnam Chemical Group has enough capacity and financial resources to operate production and business activities effectively, stably and sustainably, with association to environmental protection.

Business methods, management and operating mechanisms have been reorganized, technical and technological capacity and human resources in both quantity and quality are improved, the market is properly organized and business processes are well managed.

After restructuring, Vinachem will invest in key projects to ensure the Group's growth rate.

Vinachem restructures investment capital in subsidiaries, creating businesses within the Group with large equity capital and financial potential to ensure improved investment capital efficiency, ensuring the State's major balances in the field of fertilizers and chemicals. This is to meet the development needs of the economy, better serve people and businesses in the national economy, and preserve and develop state capital invested in enterprises.

Plans and projects approved by the Deputy Prime Minister also clearly stated that subsidiaries, affiliated companies, and investment projects that are behind schedule, operating at a loss, and inefficient will be dealt with thoroughly in accordance with market mechanisms and legal regulations. This is to minimize losses to the State, the Vietnam National Chemical Group and society.

In particular, focus on quickly resolving design contract disputes, Providing technological equipment and constructing all works of a construction investment project (EPC) to implement investment projects. Vinachem strives to achieve an average revenue growth rate of the entire Group of 7.4%/year, striving for a total State budget contribution in the period of 2021 - 2025 to reach VND 10,800 billion.

According to orientation, Vinachem focuses on main business lines, including: Production and sales of fertilizers and plant protection drugs; Mineral exploitation and processing industry as raw materials for fertilizer and chemical production; rubber processing industry; Production and sales of basic chemicals, consumer chemicals, pharmaceutical chemicals, petrochemicals, electrochemistry (battery and accumulator production).

Vinachem has business lines as prescribed in the Decree of the Government on the Charter of organization and operation of Vinachem and other business lines as approved by competent authorities.

By 2025, most Vinachem member enterprises will be effectively operating joint stock companies.

The arrangement plan continues to maintain the parent company - Vietnam National Chemical Group as a one-member limited liability company with 100% charter capital held by the State for the period 2022 - 2025.

Dependent accounting units of the Parent Company - Vietnam National Chemical Group: Maintain the current 2 dependent accounting units including the Chemical Science and Technology Information Center and the Chemical Trade and Service Center. Maintaining Vinachem's existing public service units including: the College of Chemical Industry; and Vietnam Institute of Industrial Chemistry.

By 2025, most member businesses will be joint stock companies, with a streamlined organizational model, a healthy financial situation, effective operations, a professional and highly qualified management team, and good moral qualities. Consolidate and develop a number of large-scale member enterprises that operate effectively and have the ability to compete regionally and internationally in Vinachem's main business areas.