Quang Son Cement whether to Vicem?

The Ministry of Industry and Trade has just submitted a written proposal to the Government to allow the transfer of the status quo of Quang Son Cement One Member Company Limited from Vietnam Industrial Construction Joint Stock Corporation (Vinaincon) to Vietnam Cement Industry Corporation. (Vicem).
As of December 31, 2017, Quang Son Cement accumulated cumulative losses of over VND 1,100 billion.

Accordingly, all assets in the financial statements of Quang Son Cement at the time of handover will be received by Vicem and fulfill the debt repayment obligations for debts that Vinaincon has borrowed to Quang Son Cement.

Quang Son Cement Plant, formerly Thai Nguyen Cement, was decided by the Prime Minister to invest in Vinaincon as an investor.

The project has a total investment of over VND 3,500 billion and a designed capacity of 1.51 million tons of cement / year. 7/2011, the factory went into production with the official brand Quang Son Cement.

Only after 1 year of operation, Quang Son Cement has suffered a loss of more than 70 billion, has once fallen into the situation where there is no source of investment debt repayment, lack of production capital and is facing a great risk of existence or bankruptcy.

As reported by the Ministry of Industry and Trade to the Prime Minister, up to this point, the loan of Quang Son Cement has reached 95% of the total investment so the financial cost of the Company is too high. However, Vinaincon does not have the capital to increase its charter capital.

Currently, Vinaincon has invested in subsidiaries exceeding the charter capital of VND 6 billion. Therefore, at the present time, Vinaincon is unable to support capital for Quang Son Cement to repay investment loans. The equity of Vinaincon as of December 31, 2017 was negative VND 39,496 billion, of which the accumulated loss of Quang Son Cement was VND 1,145 billion.

After Vinaincon completes the transfer of Quang Son Cement Company to Vicem, the Ministry of Industry and Trade will continue to direct Vinaincon to carry out state divestment according to the Prime Minister's decision.
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