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Setting Up A Plan To Bankrupt The 7000 Billion Fuzz Factory Which “Is Deplayed”

Dinh Vu fiber plant

During this time, PVN conducted the working of valuation the property to prepare for the plan of transferring or bankrupting this company when the project of reoperation Dinh Vu Fuzz Factory isn’t conducted.

Conducting the guideline of Ministry of Industry and Trade, soon The Petrovietnam (PVN) had a report of solving existences, weaknesses at some project and businesses that were behind schedule including The Project of Dinh Vu Fuzz Polyester Factory.

The report of PVN said that, on 25th July, PVN had a documentary to report to Steering Committee of Government and Ministry of Industry and Trade about the plan to cooperate with the foreign partner to together operate. At present, many shareholders of PVTex are waiting for the decision of Steering Committee of Government and Ministry of Industry and Trade to conduct the project.

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PVN also had a documentary to recommend partner Fortress (Singapore) to extend the using time for guidelines of cooperating to operate (old deadline is on 31st July 2017).

Dinh Vu fiber plant
Inside the Dinh Vu fiber plant

However, on 8th August, partner Fortress had a documentary of answering and claimed that because the time waiting for authorities of PVTex to approve the project was too long so if you wanted to continuously cooperate, Fortress needed to do the procedure to approve the project again before they had an official answer. “The partner also recommended to buy an underwriting of the stage p-Xylene which was produced from Nghi Son Refinery and Petrochemical LLC when Factory came into use”, PVN said.

Not agreeing to bear the machine depreciation, Fortress Chemicals gave a condition that if the machines were good, they would provide materials for test running and the product just satisfied the capacity, they would adjust the technique. Fortress Chemicals agreed to sign a contract with PVTex in 2 years, they would care about selling products in Viet Nam with a comparative price. But until now, PVN still has no answer yet.

According to the report of PVN, on 9th August, PVN and PVTex also had an online meeting with on partner in India which is Reliance Industry Ltd about the project of helping PVTex in the next stage such as providing materials, selling products, giving warranty services, taking part in buying shares of PVTex and many other fields that Reliance are conducting.

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“PVN had a documentary to invite the representative of Reliance to officially work in the end of August 2017”, PVN added more information.

To restarted PVTex, PVN also said they sent a technical staff with PVTex to conduct the warranty services to prepare for restarting a factory. PVN was conducting to found many helping groups about technique, finance, commerce, laws… from human resources of PVN and member units to help PVTex to restart a factory.

Besides, PVN also conducted the working of valuation property to prepare for the plan of transferring or bankrupting company such as hiring evaluators when the project of restarting a factory wasn’t conducted.

PVN has over 75% of the joint capacity of Petrovietnam – Vinatex Dinh Vu, the total amount of joint capacity is up to 325 million USD, but when test running and operating in May 2017, this factory continuously faces with being not sold the products, delaying to produce.

After operating about 7 months, this project had a loss of over 1.085 billion USD, the revenue wasn’t enough to pay the lease fee. According to the report, PVN is bearing all the liabilities borrowed to conduct this project as well as the loss of over 3.000 billion USD of the factory.

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