Prime Minister Nguyen Tan Dung has approved in principles to allow the Vietnam National Coal and Minerals Industries Group (Vinacomin) to sell all of its charter capital at Vinacomin Finance Company (CMF) to Vietnam Prosperity Bank (VPBank).

The State Bank of Vietnam also agreed in principles on document No 3707/NHNN-TTGSNH dated on May 30 for the deal.

Deputy PM Vu Van Ninh asked Vinacomin and VPBank to follow laws on merger and acquisition while ensuring State-owned capital.

The two sides have been implementing further steps to complete the deal.

A representative from VPBank revealed that the bank will shift all credit activities at CMF to a new company with the aim of making the operation more professional and bringing better benefits to customers.

He said that the sale of share at CMF was to implement the divestment of state-owned enterprises from non-core businesses and restructuring credit system. In addition, it will also realise the bank's plan to focus on consumption credit services as part of its retail strategy to become one of the three leading retail commercial banks by the beginning of 2017.

Nguyen Van Bien, Vinacomin's Deputy General Director, announced at the press meeting in Hanoi on June 2 that the group would complete its divestment from non-core businesses by 2015.

Accordingly, Vinacomin will withdraw capital of more than 400 billion VND (19.05 million USD) from four companies, including Sai Gon–Hanoi Commercial Bank (SHB), SHB Securities Company (SHS), Sai Gon-Hanoi Fund Management Joint Stock Company (SHF) and Hai Ha Industrial Zone.

Bien said that Vinacomin had also completed equitisation of two out of eight corporations.

Value clarification of three out of the six remaining companies has been completed and submitted to the Ministry of Industry and Trade. The equitisation plans will be submitted to the PM for approval. The companies include Minerals Holding Corporation, Power Holding Corporation and Viet Bac Mining Industry Holding Corporation, with a charter capital of 500 billion VND (23.80 million USD) each.

"Some strategic investors both inside and outside the country have expressed their interest in the corporations," he added.

Vinacomin expected to sell around 10 million tonnes of its products in the April - June period and export at least 1.5 million tonnes. To realise the goal, the corporation has taken various measures to promote the production of high-quality coal, satisfying customer demand and ensuring good income for workers.

In the first five months of 2014, Vinacomin sold 16 million tonnes, down nearly 11 percent year-on-year, and shipped over 3.7 million tonnes abroad, only 62.6 percent of the same period last year.

Despite an array of economic difficulties in 2013, the group earned more than 97 trillion VND (over 4.6 billion USD) from selling 39 million tonnes of products, including 11.6 million tonnes for export.-VNA