Sunday, August 20, 2017 - 15:12:15

PM outlines State divestment of Vinalines

VNA Print

Vinalines must divest entirely from nine seaports and companies and retain 20 percent in Hai Phong and Sai Gon Seaports. (Source: vinalinesnt.com)

Hanoi (VNA) – Prime Minister Nguyen Tan Dung has told Vietnam National Shipping Lines to divest entirely from nine seaports and companies and retain 20 percent in Hai Phong and Sai Gon seaports.

Under his instructions, Vietnam National Shipping Lines (Vinalines) must sell all its shares in the ports of Khuyen Luong, Da Nang, Vinalines – Dinh Vu, and Cam Ranh, in addition to Nghe Tinh, Can Tho, and two companies, High Technology Transport Limited Company and Cai Lan Port Joint Stock Company.

At the same time, Vinalines' stakes in the Saigon Port Company Limited and the Hai Phong Port Company Limited will be slashed to 20 percent of the registered capital of each of these companies.

The Prime Minister had earlier agreed to let Vinalines hold 50 percent to 65 percent of the Saigon port's charter capital and 65 percent to 75 percent of Hai Phong port's capital, but this had made the two firms less attractive to investors.

HCM City-based Saigon port has a charter capital of 2.16 trillion VND (96 million USD) with a total asset value of 3.95 trillion VND (176 million USD). It operates important ports in the Southern part of Vietnam including, Nha Rong Khanh Hoi, Tan Thuan I, Tan Thuan II and Phu My Steel Port. The port accounts for 10.5 percent of the overall throughput in the South.

Hai Phong port, in the northern city of Hai Phong, was established in 1857, and is one of the biggest in the northern region. It claims 28.7 percent of revenues in the north. The port earned revenues of 1.252 trillion VND (55.3 million USD) and after-tax profit of 265.8 billion VND (11.7 million USD) in the first nine months of 2015.

Local media reported that on December 30, Vinalines transferred nearly 7 million shares in Hai Phong port, or a 2.12 percent stake, to one of the country's biggest lenders, VietinBank. The deal, if calculated by the market value of the date was worth 147 billion VND (6.45 million USD). With the sale, Vinalines' ownership in the port of Hai Phong was cut to 92.56 percent. In September 2015, it also transferred 9.07 percent stake in Saigon port.

PM Dung also urged the Ministry of Transport to make a review and plan for the port system across the country by 2050.

MoT has to direct Vinalines to have a good divestment plan in place and find capable investors to develop the ports sustainably under current regulations to promote the local socio-economic development as well as the defence and security.-VNA
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