Loss of hundreds of billions of VND, Ca Mau's largest waste treatment plant requests to close

13 years of operation, loss of more than 200 billion VND

Mr. Chau Vinh Thuan - Deputy Head of the Tax Department of the XX Region - confirmed that from 2013 to 2023, the Ca Mau City Waste Treatment Plant lost more than 200 billion VND.

From 2013 to 2017, the factory lost more than 70 billion VND, the Tax Department inspected and examined. From 2017 to 2023, the factory reported a further loss of more than 130 billion VND to the tax sector.

Mr. To Hoai Dan, Chairman of the Board of Members of Cong Ly Tourism Construction and Trading Company Limited ( Cong Ly Company) - the investor of Ca Mau City Waste Treatment Plant - said: The reason for the factory's loss was that in 2015, the Department of Finance of Ca Mau province assessed and submitted to the People's Committee for approval of the waste treatment price of 350,000 VND/ton of waste (including VAT). On September 6, 2016, the Department of Finance reported to the Provincial People's Committee to apply the above unit price. Since then, prices have not been adjusted, causing the factory to lose 101,414 VND/ton.

According to the leader of Cong Ly Company, from 2013 to present, the State has increased the regional minimum wage from 3.1 million VND/month to 4.41 million VND/month 7 times. The factory also increased salaries for workers but the garbage treatment fee has not changed.

We have encountered financial difficulties and long-term losses due to increased workers' salaries, operating costs, warranty costs, factory maintenance costs, etc. Up to now, the factory is no longer able to continue operating.

policyful permission to close

After a long loss, the factory has repeatedly submitted rescue petitions to the authorities requesting to increase the price of waste treatment but has not been considered. On April 21, 2023, the People's Council of Ca Mau province issued Notice No. 09/TB-HDND on the conclusion of the Standing Committee of the Provincial People's Council at the meeting to explain a number of issues on the situation of collection, transportation and treatment of household waste in the area.

The Standing Committee of the People's Council of Ca Mau province has commented: The unit price to support waste treatment costs at the Ca Mau City Waste Treatment Plant applied according to the unit price issued in 2015 is no longer suitable in current conditions; not yet guaranteed funding for reinvestment, upgrading equipment and technical infrastructure systems of the waste treatment plant, causing many difficulties in the operation of the unit...

The People's Committee of Ca Mau province has also repeatedly asked for the opinion of the Ministry of Natural Resources and Environment (now the Ministry of Agriculture and Environment) but has not yet received a written response.

In the petition sent to the Secretary of the Ca Mau Provincial Party Committee, the leaders of Cong Ly Company urgently stated: Not that the company takes the factory's closure as a request, but the company's loss compensation is real, just hoping to share and consider support from functional agencies in the province so that the company can have some more processing fees to reinvest in the waste treatment line, invest in infrastructure and access more modern technology, and treat household waste more effectively.

Mr. To Hoai Dan said that no business wants to close the factory. But the more they operate, the more they lose, the more the business has lost its way.