Once the driving force for economic growth in 2015, the mining industry has been facing great challenges this year.
Some years ago, investors had to struggle for every mining license, simply because mining was considered a profitable industry.
In 2009, Tay Bac Investment & Minerals Company made a modest profit of VND2 billion.
In 2010, the company’s profit soared to VND196 billion, or 200 percent higher than the previous year. Its profit did not jump in the next years, but was still very satisfactory – VND38 billion in 2011 and VND40 billion in 2012.
However, things changed rapidly later when the company shares were forced to delist from the HCMC bourse because it took a loss. Two months ago, the shares were also delisted from UpCom.
The story of Tay Bac reflects the situation of the mining industry. Though witnessing a slowdown, the industry still had a growth rate of 6.5 percent in 2015 compared with 2014.
But things got even worse in the first half of 2016 with the decrease of 2.2 percent, compared to the same period last year of 8.8 percent. Keep reading