Displaying items by tag: Tam Diep
Vietnam: The State Audit Office of Vietnam (SAV) has uncovered limestone mining activity above licensed levels by multiple subsidiaries of the Vietnam Cement Industry Corporation (VICEM) between 2017 and 2022. In 2021, Vicem Bim Son’s Yen Duyen quarry yielded 499,000t of limestone, 14% above its licensed capacity. That same year, Vicem Hoang Mai extracted 154,000t of limestone from its Hoang Mai B quarry, 8.5% above capacity, while Vicem Tam Diep extracted 111,000t from its Hang Nuoc quarry, 6% above capacity.
The Viêt Nam News newspaper has reported that the SAV has asked Vicem to review the causes of the discrepancy between production and licences and clarify its responsibility.
Vietnam to spend US$40m/yr to reduce cement firm debt
19 December 2012Vietnam: Vietnam's Finance Ministry has announced that it will spend US$30-40m/yr on settling foreign debts for local cement producers until 2018. State-owned producers Dong Banh, Thai Nguyen, Tam Diep and Hoang Mai all receive preferential interest rates for domestic loans and guarantees for foreign loans. The total debt of these four projects is US$229m.
According to the ministry's recent report to the prime minister, the total amount of government-guaranteed loans reached US$1.37bn in 2011. Hoang Mai and Tam Diep have been given capital to pay back their loans. However, Tam Diep has had difficulties paying back its debts. Dong Banh and Thai Nguyen, which have been advanced capital for their first period of payment, still have troubles dealing with their foreign debt.
The Dong Banh cement plant, which has a total investment of US$61.4m, was forced to close in the first quarter of 2012 after two years in operation and a loss of US$9.44m. By 2018 the plant's debts with interest could reach US$28.8m. The Thai Nguyen cement plant suffered a loss of US$3.69m after one year and was still running at below 60% of its capacity. It must operate from 80% capacity to earn a profit. As of March 2012 Ha Long cement plant had incurred debts of about US$58.3m. Although the company borrowed US$96m to pay its debts, the company's liabilities for the period of 2012-15 still amounted to US$57.5m.
According to the Vietnam National Cement Association, local cement makers are predicted to continue facing a lot of difficulties as the real estate market remained gloomy with few signs for recovery. Exports are not seen as an effective solution to the problem as local cement producers cannot lower prices of their products any more to compete with foreign rivals. Analysts predict that a cement surplus will persist if the government does not take drastic measures including a demand stimulus and a review of current cement projects.