New business takes over
Once a large-scale industrial project of Lao Cai province with a total investment of more than 6,000 billion VND, Viet Trung Mineral and Metallurgy Co., Ltd. had to stop operating for a long time.
On April 23, according to records, after a period that seemed to be "covered in tarpaulins", the enterprise is gradually resuming operations with the participation of a subsidiary of Hoa Phat Group, opening up expectations for production recovery and stabilizing the lives of workers.
According to Mr. Nguyen Hong Viet - Deputy General Director of Viet Trung Mineral and Metallurgy Co., Ltd., from April 20, Thu Do Metal Exploitation and Processing Joint Stock Company has completed the purchase of shares from the Chinese side and officially participated in operating the enterprise.
By June 2026, the unit will purchase all shares of the remaining 2 capital contributing partners, officially switching to operating under the private model.
Mr. Viet said that the participation of the unit belonging to the Hoa Phat ecosystem brings clear confidence to the collective of workers after a long period of difficulty.
This is a positive sign, a motivation for workers to feel secure and attached. Hoa Phat Group will stand behind and focus resources to restore factory operations," Mr. Viet said.
Business leaders said that the investor has just committed to retaining all existing labor. At the same time, backlogs regarding regimes are also being resolved.
The company has worked with the Social Insurance agency and agreed on a plan to pay the debt of nearly 60 billion VND in May. When the adjustment procedures are completed, the enterprise will transfer money to pay the entire insurance debt for employees.
Regarding salaries, we have also developed a roadmap to pay gradually," said the Deputy General Director of Viet Trung Mineral and Metallurgy Co., Ltd.
Regarding production, after taking over, the initial capacity reached more than 1,200 tons/day, expected to increase to 1,500-1,800 tons/day in the near future. Mass organizations in the enterprise continue to be maintained, ensuring stable operation during the model transformation phase.
Expectation of production recovery
Along with stabilizing personnel, the enterprise is developing a plan to comprehensively restore production operations, including the raw material problem.
Also according to Mr. Nguyen Hong Viet, the enterprise will propose to continue mining the Quy Xa iron mine to ensure supply for metallurgy.
Previously, when operating stably, we contributed to the budget from 700 - 1,200 billion VND per year. However, due to difficulties in the past 3 years, the enterprise currently owes more than 500 billion VND of budget money," Mr. Viet explained.
Currently, the enterprise has built a roadmap to pay the entire debt in May, and at the same time set a target of contributing about 1,100 billion VND/year after stabilization.
In addition, the plan to invest in a system of on-site steel rolling mills is also being researched and implemented.
Assessing the restructuring, Mr. Ha Duc Thuan - Deputy Head of the Lao Cai Economic Zone Management Board - said that this is a positive sign for the local industry. At the same time, he affirmed that management agencies will create favorable conditions for businesses to operate effectively.
Metallurgy activities play an important role in the economic development of Lao Cai. When the enterprise resumes operation, officials and workers are excited. With Hoa Phat's capacity, we believe the factory will soon stabilize. More than 1,000 employees of the company continue to be guaranteed jobs," Mr. Thuan shared.
From a local perspective, Mr. Nguyen Quang Uy - Secretary of the Party Committee of Tang Loong commune - said that the factory's restoration of operation has contributed to improving people's lives.
Although there are still difficulties, businesses still pay attention to social security, labor productivity and the implementation of obligations to the State has had positive changes. When the factory stopped operating, the lives of many households were affected, so the recovery of production is a very encouraging sign," Mr. Uy said excitedly.
According to the Secretary of the Party Committee of Tang Loong commune, the locality will continue to propagate so that people can accompany and share with businesses. Along with that, it is hoped that through the Lao Cai Provincial Labor Federation, it will propose that ministries and central agencies soon have appropriate mechanisms to create conditions for businesses to operate stably.
