Vinalines sets financial priorities hinh anh 1National shipping giant Vinalines will maintain its controlling stake in major ports while divesting from smaller ones (Photo: shipspotting)

Hanoi (VNA) - The Vietnam National Shipping Lines (Vinalines) will maintain its controlling stake in major ports and divest from others as it targets increased efficiency and profitability of core services over the next five years.

Under its five-year (2016-2020) investment and development plan approved by Prime Minister Nguyen Xuan Phuc, it will maintain its controlling stake in the nation’s three major ports in Hai Phong, Da Nang and HCM City.

The corporation currently holds a majority stake of between 75 percent and 95 percent in the three ports.

It will divest and give up its controlling stake in several smaller ports.

Under the five-year plan, the corporation will concentrate its investments in the Lach Huyen and Dinh Vu ports in Hai Phong city; the Hai Phong International Port; the Lien Chieu Port in Da Nang; and the Nghe Tinh Port in Ha Tinh province.

In the southern region, the corporation is to focus efforts on beginning operations at the Sai Gon-Hiep Phuoc Port and developing general ports in Hau Giang province and Can Tho city.

Meanwhile, it will restructure its bank debts and prepare to list its shares on the national bourse.

It will strive to improve the efficiency and profitability of its sea transport, ports and maritime services, sustain and increase the State’s capital, and withdraw from ineffective businesses.

The exploitation and development of deepwater ports and transit ports will be improved to make it competitive in the region.

Vinalines plans to complete its equitisation process early next year.

The corporation’s revamp plans after years of losses and soaring debts. In 2015, its debt was estimated at 11 trillion VND, or 504 million USD, owed to 24 lenders, nearly half of them foreign firms. The majority of its domestic market share on import-export carriage has been taken over by foreign shipping businesses.

For 2017, Vinalines targets a revenue of around 15.3 trillion VND (668.4 million USD), lower than last year, when it topped 16 trillion VND.-VNA