Vietnam Airlines is speeding up divestment of non-core businesses.
Dautu (Vietnam Investment Review) newspaper reported that the carrier'sdivested amount totalled 505.64 billion VND (23.19 million USD) in termsof face value of shares, accounting for about 85 percent of all valuesintended for withdrawal.
On July 7 alone, the company sold itsentire stake worth 100 billion VND (4.59 million USD) in the VietnamAviation Insurance JSC in an auction for 109.55 billion VND (5.03million USD).
The firm has basically pulled out of "sensitive"sectors such as banking and finance and property, selling its stakes inTechcombank, Hoa Binh Securities, Bao Minh Insurance and VietnamAirlines Investment.
Phan Xuan Duc, Deputy General Director ofthe carrier, said it would sell its stakes in businesses involved inprinting, postal services, transportation, construction and plasticproduction this year.
Of these firms, Airport EngineeringConsultancy and Services last year paid a dividend of 16 percent whileAviation Printing paid 13.58 percent and Aviation High Grade Plastic, 12percent.
Their satisfactory business results would help sell them off on schedule, he said.
However,Vietnam Airlines faces difficulties selling the Aviation Hotel JSC,which has yet to build a planned four-star hotel in HCM City though itwas established nearly 10 years ago.
The airline owns 44 percentof the company's equity of 96 billion VND (4.40 million USD). Due toproblems related to the progress of the project, it failed to divestfrom Aviation Hotel last year as instructed by the Ministry ofTransport. Now the divestment must be completed this year.
Accordingto Duc, after withdrawing from other areas, Vietnam Airlines willretain interests in 18 businesses that are mainly in aviationtransportation.
But this may not be the final figure as the company is still continuing to review its investment portfolios.
"We will complete the task in Q3 2015," he said.
VietnamAirlines has also urged its affiliates as well as companies in which itowns a majority stake to sell off inefficient businesses.
TheVietnam Air Petrol Company Limited has been asked to sell its stakes inthe Nha Be petroleum storage company and Jetstar Pacific Airlines inThang Long Investment and the Jupiter logistics firm.
The Noi Bai Airport Services Company is also to withdraw from the taxi business.
Vietnam Airlines became an equitised company on April 1 this year.-VNA
Dautu (Vietnam Investment Review) newspaper reported that the carrier'sdivested amount totalled 505.64 billion VND (23.19 million USD) in termsof face value of shares, accounting for about 85 percent of all valuesintended for withdrawal.
On July 7 alone, the company sold itsentire stake worth 100 billion VND (4.59 million USD) in the VietnamAviation Insurance JSC in an auction for 109.55 billion VND (5.03million USD).
The firm has basically pulled out of "sensitive"sectors such as banking and finance and property, selling its stakes inTechcombank, Hoa Binh Securities, Bao Minh Insurance and VietnamAirlines Investment.
Phan Xuan Duc, Deputy General Director ofthe carrier, said it would sell its stakes in businesses involved inprinting, postal services, transportation, construction and plasticproduction this year.
Of these firms, Airport EngineeringConsultancy and Services last year paid a dividend of 16 percent whileAviation Printing paid 13.58 percent and Aviation High Grade Plastic, 12percent.
Their satisfactory business results would help sell them off on schedule, he said.
However,Vietnam Airlines faces difficulties selling the Aviation Hotel JSC,which has yet to build a planned four-star hotel in HCM City though itwas established nearly 10 years ago.
The airline owns 44 percentof the company's equity of 96 billion VND (4.40 million USD). Due toproblems related to the progress of the project, it failed to divestfrom Aviation Hotel last year as instructed by the Ministry ofTransport. Now the divestment must be completed this year.
Accordingto Duc, after withdrawing from other areas, Vietnam Airlines willretain interests in 18 businesses that are mainly in aviationtransportation.
But this may not be the final figure as the company is still continuing to review its investment portfolios.
"We will complete the task in Q3 2015," he said.
VietnamAirlines has also urged its affiliates as well as companies in which itowns a majority stake to sell off inefficient businesses.
TheVietnam Air Petrol Company Limited has been asked to sell its stakes inthe Nha Be petroleum storage company and Jetstar Pacific Airlines inThang Long Investment and the Jupiter logistics firm.
The Noi Bai Airport Services Company is also to withdraw from the taxi business.
Vietnam Airlines became an equitised company on April 1 this year.-VNA
