Approval of restructuring project of Vietnam National Coal and Mineral Industries Group

The Government has just approved the restructuring project of Vietnam National Coal - Mineral Industries Group (TKV) until 2025.

The project's goal is to turn TKV into a strong state-owned economic group with modern technology, gradually meeting international standards, improving labor productivity and product quality; contributing to ensuring energy security. TKV's revenue by 2025 is expected to reach VND853,500 billion, contributing to the budget of more than VND108,100 billion.

According to the approved project, TKV still follows the parent-subsidiary model. The parent company TKV (the state holds 100% of the charter capital) simultaneously performs two main functions: production, business; and capital investment in subsidiaries. The subsidiaries operate in industries and projects that the parent company does not directly carry out.

The group's four main business lines include: coal industry, minerals - metallurgy; electricity; industrial explosives. In addition, there are a number of industries and professions related to the main business group such as mechanical industry; chemicals, construction materials; port exploitation management, transportation, warehouse; construction.

Depending on each period and business situation, TKV can add other industries after being approved by the Prime Minister.

The project also emphasizes activities to improve management efficiency in terms of resources, investment, and costs. For example, with resource management, TKV will focus on applying for exploration and mining licenses; In investment management, the group will mobilize resources to implement key projects, equipment investment projects to increase output, increase tunneling capacity, and invest in processing centers.

Regarding cost management, the project mentions a lot about the recruitment and salary payment mechanism. The motto set for TKV is few people but high income; average salary of employees increases but salary cost of the enterprise decreases; continue to absolutely reduce the number of employees; increase the proportion of direct labor, reduce the proportion of indirect labor on the basis of socializing all service work in the enterprise; only recruit untrained people in occupations that the market cannot meet.

Regarding production, the group must focus on improving efficiency, continuing to apply information technology, mechanization, and automation to production. Regarding electricity production, TKV will develop an orientation to participate in the competitive retail electricity market by 2025, with a vision to 2030.

Requirements for divestment in enterprises in which TKV holds shares are also set. TKV will hold 100% of charter capital in 1 company; hold 65% or more of capital in 10 companies; 50-65% of capital in 9 companies. The group will hold less than 50% of capital or 0% of the remaining 15 companies.

The Group continues to consolidate pairs of subsidiaries (with more than 65% capital) including Coc Sau Coal Joint Stock Company and Deo Nai Coal Joint Stock Company; Nui Beo Coal Joint Stock Company and Ha Lam Coal Joint Stock Company. Co Dinh - Thanh Hoa Chromite Joint Stock Company will divest capital according to a separate project; Lam Dong Aluminum One Member Limited Liability Company and Environment One Member Limited Liability Company will be arranged according to a separate project as approved by the competent authority.

The capital obtained from divestment will be used to develop new projects. In addition, TKV will also be able to expand its long-term capital mobilization channels such as issuing stocks, corporate bonds, and banking financial products in addition to traditional financial mobilization methods.

Duc Minh

Source link