Plant resumes operation
Viet Trung Mineral and Metallurgy Co., Ltd. (Viet Trung Metallurgy - VTM) was once one of the industrial pillars of Lao Cai province, making great contributions to the production chain and creating jobs for thousands of workers.
After a long period of interruption, from May 2025, the factory has restored production, creating jobs for more than 1,000 workers with an average income of about 11.5 million VND/month. According to the enterprise's report, the unit currently has 1,082 officials and employees.
After a difficult period, many workers once had to find temporary jobs with precarious incomes. Now that the factory is back in operation, they expect the business to continue to maintain stable production, resolve outstanding regimes and gradually increase income.
The factory's resumption of operation helps workers' lives gradually stabilize. "Workers are excited, feel secure in their work and trust in the management of the company's leaders," said Mr. Nguyen Hong Viet - Deputy General Director of Viet Trung Mineral and Metallurgy Co., Ltd.
Q1.2026 data recorded steel billet production reaching nearly 86,000 tons, consumption of more than 95,000 tons, revenue of about 1,133 billion VND. However, the enterprise still lost 177 billion VND, showing that the recovery process still faces many challenges.
Although it has resumed operation, the enterprise still faces many fundamental challenges. The main raw material source from the Quy Xa mine has not been extended, causing long-term instability in production. The plan to use Deluvi ore has not been agreed upon at all levels.
Meanwhile, having to buy ore outside from many suppliers causes production costs to increase, input quality is uneven, directly affecting efficiency.
The "push" of privatization and expectations of removing bottlenecks
Financial difficulties continue to be a major bottleneck. Outstanding debts have prevented banks from granting credit limits, leading to a shortage of capital to purchase supplies and raw materials.
According to Mr. Nguyen Hong Viet - Deputy General Director of Viet Trung Mineral and Metallurgy Co., Ltd., Thu Do Mineral and Metallurgy Company has purchased capital from a Chinese partner, participating in operating with VTM starting from April 20. This is considered a major turning point, creating confidence for workers in the context of prolonged difficulties.
The new investor is committed to retaining 100% of the labor force, and will also pay insurance debts of nearly 60 billion VND and have a roadmap to pay salaries to employees," Mr. Viet informed.
In addition, businesses also plan to focus resources to maintain production, increasing output from 1,000 tons/day to 1,200-1,300 tons and aiming for 1,500-1,800 tons/day.
Mr. Ha Duc Thuan - Deputy Head of the Economic Zone Management Board of Lao Cai province assessed that Viet Trung Metallurgy plays an important role in the local industrial structure, accounting for about 16% of the production value in the industrial park.
If businesses do not stabilize soon, it will greatly affect the province's growth target," Mr. Thuan assessed.
According to Mr. Thuan, the transition to the private model is expected to improve operational efficiency.
Reality at private enterprises in industrial parks shows that the productivity and income of workers are often higher, creating a clear driving force for development.
As for state management, we also commit to creating all conditions for the company to soon go into operation," the Deputy Head of the Economic Zone Management Board of Lao Cai province added.
From the end of 2017, through inspection of the Lao Cai iron and steel factory project and the Quy Xa iron ore mining project, the Lao Cai Provincial Inspectorate said that the project suffered continuous losses in 2 years after being put into operation. Accordingly, as of December 31, 2016, the total accumulated loss was 1, 188 billion VND.
In May 2022, the factory stopped production, causing many workers to lose their jobs and income. In addition to owing taxes to the State, this enterprise currently owes wages to 1,262 workers with a total amount of 135 billion VND.
At a meeting with the Lao Cai Provincial People's Committee regarding the losses of Viet - Trung Mineral and Metallurgy Co., Ltd. on May 27, 2024, Mr. Nguyen Hoang Anh - Chairman of the State Capital Management Committee at enterprises stated his point of view - resolutely handle loss-making and inefficient projects and enterprises according to market principles and mechanisms; respect the principle of self-reliance and self-responsibility of enterprises; the State does not provide additional capital.
