Thursday, May 25, 2017 - 19:35:53

Deputy Minister: VINACAFE equitisation a must

VNA Print

Packaging Vinacafe products (Source: VNA)

Hanoi (VNA) – The Vietnam National Coffee Corporation (VINACAFE) will begin equitisation in the third quarter of this year, according to Deputy Minister of Agriculture and Rural Development Ha Cong Tuan.

VINACAFE has over 34,000 hectares of land, of which coffee growing area accounts for 16,000 hectares. Most of the areas are owned by farmers, which may hamper the company’s equitisation.

According to a representative from the Ministry’s Department of Enterprises Management, VINACAFE equitisation remains slow. Among 18 state-owned enterprises which are VINACAFE’s subsidiaries, only five have been equitised.

In order to speed up the process, VINACAFE has asked the Ministry to adjust the equitisation process. The mother company wants to be equitised at the same time with its subsidiaries to lure investors. By using this method, VINACAFE will be equitised on schedule while raising the management capability of VINACAFE after equitisation and retaining land and employees.

According to the plan to equitise VINACAFE from 2015 – 2017 approved by the Prime Minister, the State will hold 51 percent of total shares of VINCAFE.-VNA
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