Viet-Trung Mining And Metallurgy Co., Ltd (Vietnam)

Founded in 2006 in Lao Cai Province, the subject is a joint venture between two Vietnamese companies and a Chinese partner. Initially, it mined iron ore in Quy Xa Mine, Son Thuy Commune, Van Ban District, Lao Cai Province. According to Media Mass, its steel billet factory had been put into trial production in Jun 2014 and official production in Dec 2014. The subject was lost heavily in 2015 and 2016 due to the influence of the Chinese steel market. As reported data, the business result improved in the period of 2017-2019. According to Media Mass, the subject made profit thanks to being benefited from the policy of allowing mining and policies on trade remedies. The main activity of steel billets manufacture was still lost (except in 2018) and its profit in 2017 and 2019 came from mining and trading iron ore. The outbreak of the COVID Pandemic had a serious impact on its operation in 2020. Total sales decreased by 40.16% and the subject lost VND 509.7 billion in 2020. According to news from mass media on 06 Sep 2020, the subject owed the State Budget VND 957 billion, owed bankers VND 3,667 billion, and owed suppliers VND 1,846 billion at that time. Noticeably, the exploiting licenses in Quy Xa Mine expired in 2020, leading its iron and steel factory had to cease production from early Sep 2021 to the end of the year. Since early Jan 2022, the Government has approved the proposal of the People's Committee of Lao Cai Province to allow the subject to additionally exploit 1,000,000 tons of iron ore in Quy Xa Mine with the purpose of recovering the operation of the company's factory. However, its activity continued being inefficient, and it suffered a loss of around VND 116 billion for the first half of this year. Before the shortage of iron ore, the factory has had to stop production again since 14 May 2022. The functional agency is requiring a restructure plan for VTM.