VIR | Mon, May 12, 2014 03:45:00 PM
Vietnam Steel Corporation (VNSteel) has been warned that if it continues to run at a loss this year, its management, particularly the chairman could be replaced.
Controversy has dogged the corporation. Prior to the company’s shareholder annual general meeting in late April, its general director was replaced on the back of poor performance leading to the company’s running at losses for the past two years.
VNSteel’s cumulative losses mounted to VND830 billion ($39.5 million) in 2012-2013 period. This year, the company sets to post VND12.7 trillion ($605 million) in net revenue and approximately VND36 billion ($1.7 million) in pre-tax profits.
Poor performance has been blamed for the company’s failure to secure a foreign strategic partner despite VNSteel holding its initial public offering back in 2011. Four foreign investors, including well-known international players such as Japan’s Nippon Steel Corp and Marubeni Itochi Steel Inc., Russia’s Novolipetsk Steel and Luxembourg-based Evraz Group SA all initially expressed a desire to become the company strategic partners, but none pursued the opportunity.