Loss-making fertiliser plant seeks further government support

The Ninh Binh Nitrogenous Fertiliser Company has just proposed to get an additional loan of VND350 billion (USD15.43 million) from the government to save its loss-making plant.
Ninh Binh Fertiliser Plant has incurred big losses
Ninh Binh Fertiliser Plant has incurred big losses

The proposal was made to minister of Industry and Trade, Tran Tuan Anh when he visited the plant on February 21.

At the meeting with the minister, the company's general director, Vu Van Nhan, said that the loan will help boost the plant's production activities after it resumed operation in January 2018.

"We have mobilised VND63 billion (USD2.78 million) from customers for the plant's operation since January this year," Nhan told the meeting. "But to have that source of money we are having to sell our products at cheap prices. So need more capitals so that we can better control the market prices."

The director shared that the plant is now producing 1,300 tonnes a day and have made approximately 27,000 tonnes of fertiliser this year of which 22,000 tonnes have been sold before the Tet holiday.

Despite positive signs, Nhan said that the plant is still facing numerous challenges especially in sources of capital to maintain stable operations.

"We need more support from banks," Nhan added. "It will cost us some VND40 billion a week to buy coal only for maintaining production, which is a big challenge which may make us being unable to meet the target of producing 120,000 tonnes in the first term of this year".

The director called for minister Tran Tuan Anh's support so that they can have an emergency bank loan of VND350 billion to maintain operations. Nhan has also proposed and additional bank loan of over VND200 billion over three years to restore the plant's facilities in 2018.

Minister of Industry and Trade, Tran Tuan Anh (right) visit Ninh Binh Fertiliser Plant on February 21

 Minister of Industry and Trade, Tran Tuan Anh (right) visit Ninh Binh Fertiliser Plant on February 21

Addressing the meeting, minister Tran Tuan Anh pointed out the causes of the great losses at the plant, including weak management, slow actions by the Vietnam National Chemical Group and Ninh Binh Nitrogenous Fertiliser Company, as well as labour skills.

"But we have to save the plant by all means," the minister stressed. "We will cooperate with the Vinachem to find out the best solutions to the plant's problems. But the Ninh Binh Nitrogenous Fertiliser Company will have to save them first by improving their product's quality and quantity."

The USD667 million-invested plant, one of the ministry's top 12 loss-making projects, started operations in 2012 with designed annual capacity of 560,000 tonnes of fertiliser.

Since its inception, the plant has continuously incurred losses with a total sum of over VND3 billion (USD132.22 million) by mid 2017.

Dtinews

Other News

SBV raises short-term capital lending cap to 40%

SBV raises short-term capital lending cap to 40%

The new circular will help credit institutions have more room to provide capital to businesses and investment projects to support high economic growth in the next few years, while increasing flexibility in the SBV’s monetary policy management.

Business confidence in Vietnam rebounds strongly: UOB

Business confidence in Vietnam rebounds strongly: UOB

The study found that 85% of Vietnamese enterprises reported positive business sentiment, a sharp increase from 48% in 2025, when business confidence was weighed down by uncertainties surrounding US tariff policies and related trade developments.

Bac Ninh seeks high-quality foreign investment for sustainable growth

Bac Ninh seeks high-quality foreign investment for sustainable growth

According to Vice Chairman of the provincial People’s Committee Pham Van Thinh, the province aims to maintain stable and sustainable growth, improve the competitiveness of both the economy and local businesses, and make better use of free trade agreements (FTAs) to expand and diversify export markets.

Green building trend flourishes in Ho Chi Minh City's real estate landscape

Green building trend flourishes in Ho Chi Minh City's real estate landscape

The International Finance Corporation (IFC) highlighted the city's dominance in green-certified building floor space in Vietnam, reflecting the rapid expansion of the green building market with 780 completed green buildings encompassing over 18.69 million sq.m by 2025, predominantly certified by EDGE and LEED.

UK supports Vietnam in wind power and green finance development

UK supports Vietnam in wind power and green finance development

The United Kingdom officially announced two new climate cooperation initiatives to support Vietnam in its energy transition and green growth journey. These programs focus on offshore wind power development and the creation of a sustainable green financial ecosystem.

Ample room remains for Vietnam–India logistics cooperation

Ample room remains for Vietnam–India logistics cooperation

The GTTCI expert noted that alongside logistics and integrated warehousing, e-commerce is expected to be a particularly high-growth sector in the coming years. He described it as a multi-billion-dollar market with significant untapped opportunities for cooperation between Vietnam and India.

Exports gain momentum from high-tech growth drivers

Exports gain momentum from high-tech growth drivers

According to the Ministry of Industry and Trade, Vietnam’s exports reached 215.66 billion USD in the first five months of 2026, up 19.5% year-on-year. Twenty-six export items generated more than 1 billion USD in revenue each, including seven with turnover exceeding 10 billion USD.

Vietnam–China crossings see spike in ASEAN fresh produce

Vietnam–China crossings see spike in ASEAN fresh produce

Since the start of the summer harvest season, China's two major border gates with Vietnam, Youyi Guan in Pingxiang and Beilun 2 Bridge in Dongxing, have entered their peak period for handling imports of fresh agricultural and seafood products from member states of the Association of Southeast Asian Nations (ASEAN).

Cargo handling operations at Berths 3 and 4 of the Hai Phong International Gateway Port. (Photo: VNA)

AI reshapes logistics, raising bar for workforce skills

According to the Vietnam Logistics Business Association (VLA), the logistics sector will require around 2.2 million workers by 2030, including 1.6 million employees for logistics service providers and nearly 600,000 personnel supporting logistics operations in manufacturing and trading enterprises.

Robust dispute resolution framework key to Vietnam's IFC ambitions

Robust dispute resolution framework key to Vietnam's IFC ambitions

The development strategy for VIFC-HCMC envisions a comprehensive financial ecosystem encompassing green finance, carbon credits, financial technology (fintech), blockchain technology, digital assets, digital banking and other innovative business models. These highly internationalised sectors involve complex cross-border transactions and sophisticated legal structures.