Coal sector urged to settle inventories

Deputy Prime Minister Hoang Trung Hai has asked the Vietnam National Coal - Mining Industries Group to settle inventories at the beginning of the year.

Deputy Prime Minister Hoang Trung Hai has asked the Vietnam National Coal - Mining Industries Group (Vinacomin) to settle inventories at the beginning of the year.

Hai met with Vinacomin executives for a working session on January 12, stressing the importance of signing long-term contracts with consumers, lest the sector’s future plans fil to reach fruition.

He pointed out difficulties the coal sector is facing in 2013, including fierce business competition, and asked it to re-examine its business strategy to maintain stable production, boost sales, minimise costs, and increase productivity.

The sector must enhance its management and renovate technology urgently if it is to remain competitive in the context of ever strengthening market rivals, said Hai.

He also asked the sector to tighten labour principles, increase capital construction investment, and stop the illegal exploitation of coal.

In 2012 Vinacomin produced 40.4 million tonnes of clean coal (2 percent more than the set target) and sold 39.2 million tonnes (up 3 percent). It finished the year with 7.25 million tonnes in stock.

In 2013 it plans to sell 43 million tonnes (3.7 million tonnes more than 2012), and earn VND104 trillion in revenue (up 15 percent over 2012).