Thursday, October 27 2016


MoT divests $89m in January

Update: January, 26/2016 - 09:23

HA NOI  (VNS) — Transport corporations under the Ministry of Transport have so far divested about VND2 trillion (US$89 million) in January, or 83 per cent of the entire divestment begun in 2015.

HCM City to restructure, equitise 57 SOEs

HCM City will restructure and equitise 57 State-owned enterprises in the 2016-20 period following approval from the Prime Minister.

The companies will be enlarged as part of the city's economic structure transfer programme. They mainly include corporations and parent-subsidiary companies.

Under the plan, 11 enterprises will be restructured, with the State still holding 100 per cent of the State capital.

Forty-six enterprises will be equitised, of which the State will hold above 65 per cent to under 75 per cent of charter capital in three companies, over 50 per cent to less than 65 per cent in 30 firms, and under 50 per cent in 13 companies.

As scheduled, nine SOEs will be equitised in the 2015-16 period, 13 ones in the 2016-17 period, 12 firms in the 2017-18 period and 12 firms in the 2018-19.

The city equitised 32 enterprises last year, meeting its plan. The State capital value increased by more than VND4.59 trillion (US$205 million) due to the re-valuation of enterprises.

Among 32 equitised enterprises, the State-owned shares accounted for more than 51 per cent of the charter capital in six companies, and less than 51 per cent in 26 companies. — VNS

The divestment in January so far included VND457 billion ($20.35 million) or 100 per cent stake in the Civil Engineering Construction Corporations No.6 (Cienco6), VND212 billion ($9.4 million) or 23 per cent of stake in Cienco 5, and VND1.25 trillion ($55.6 million) or 98 per cent of stake in the Vietnam Motor Industry Corporation (Vinamotor). In January, MoT also divested from Company No. 623, a subsidiary of Cienco6.

Most of the divestment in 2015 was conducted in the subsidiaries while the divestment this year was mainly from the parent companies. Divesting capital would go to the State Capital Investment Corporation (SCIC), Vu Anh Minh, director of MoT's Business Management Department, said.

He said in the period 2015 to 2016, MoT has divested State capital in eight companies by lot divestment for the first time. The package in 2015 included 100 per cent divestment of Cienco1 and Cienco4, and part divestment from the Waterway Construction Corporation (Vinawaco) and the Transport Engineering Design Inc. (TEDI).

Thus, after the divestment in this period, most of the corporations no longer have any State capital, the director said.

As planned, during the first quarter, MoT will continue to withdraw all the remaining state capital VND100 billion ($4.45 million), or 25.5 per cent of stake from Thang Long Corporation, VND 100 billion ($4.45 million) or 29 per cent of stake from waterway transport corporation, VND200 billion ($8.9 million) or 40 per cent of stake in Cienco5, and VND40 billion ($1.78 million) or 29 per cent from TEDI, in addition to VND100 billion ($4.45 million) or 26 per cent of stake from Vinawaco, and VND100 billion ($4.45 million) or 40 per cent of stake from Cienco8.

It planned to complete the withdrawal of State capital from all 10 corporations which finished their equitisation in 2014. By the end of Q1, it was expected to reach between VND2.5 trillion ($111.3 million) and VND3 trillion ($133.6 million) from the divestment.

MoT said that from 2011 to 2015, 137 businesses in the transport sector went public, 67 more than the target. Domestic experts said the entire divestment by the State and the amended laws have helped create more favourable conditions and transparency about their work, bringing more good stock to the domestic stock market. — VNS

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