The Ha Bac Nitrogenous Fertiliser & Chemicals Company Limited under Vinachem’s management in Bac Giang province (Photo: nongnghiep.vn)Hanoi (VNA) -Deputy Prime Minister Vuong Dinh Hue has signed Decision No.16 approving therestructuring plan of the Vietnam National Chemical Group (Vinachem).
The decision, designated for 2018-2020, aims to improve Vinachem’s structure,capacity, production efficiency and business competitiveness.
While signing the decision, the deputy prime minister stated the need forstreamlined and compact business models after the equitisation process atVinachem and its member companies.
The key focus of Vinachem is State divestment from the mother company and anumber of its subsidiaries.
The mother company plans to become equitised in 2018-19, leaving only 50-65 percentof its charter capital of some 20 trillion VND (890 million USD) under Statecontrol.
As for Vinachem’s member companies, it plans to retain more than 65 per cent ofcharter capital at the Vietnam Apatite One Member Limited Company in 2018.
It will also maintain 50-plus percent to less than 65 percent stake in sevenmember companies, less than 50 percent stake in nine others, and divestcompletely from 15 companies.
According to Vinachem’s financial report of the second half of 2017, the combinedprofit from its subsidiaries was 50 billion VND (2.2 million USD), with a lossof 192 billion VND (8.5 million USD) by the parent company.
Nonetheless, Vinachem’s 2017 revenue increased by 5.5 percent compared to 2016.
Starting from 2017, the Ministry of Industry and Trade started inspection ofVinachem’s previous ineffective investments, including an 80 percentaccumulated loss ratio of 4.2 trillion VND (200 million USD), most notably fromthe Ninh Binh Nitrogenous Fertiliser Plant project, though nosanctions have been imposed so far.
Vinachem’s main businesses are production and trading of basic chemicals, andmining and processing of raw material for fertilisers, pesticides and chemicalproduction.
According to reports of the Department of Corporate Finance under the Ministryof Finance, the Government is instructing the corresponding agencies tocomplete the 2018 national equitisation plan at 64 State-owned enterprises(SoEs), with another 18 enterprises in 2019 and one more in 2020.
The State 2018-2020 equitisation scheme focuses on State capital withdrawalfrom large-scale enterprises, with a wide scope of business and high structuraland financial complexity.
The Government has specially requested the participation of strategic investorswith a strong financial background and management capacity, and has asked theSoEs to carefully prepare, process and audit themselves before the equitisationprocess.-VNA
The decision, designated for 2018-2020, aims to improve Vinachem’s structure,capacity, production efficiency and business competitiveness.
While signing the decision, the deputy prime minister stated the need forstreamlined and compact business models after the equitisation process atVinachem and its member companies.
The key focus of Vinachem is State divestment from the mother company and anumber of its subsidiaries.
The mother company plans to become equitised in 2018-19, leaving only 50-65 percentof its charter capital of some 20 trillion VND (890 million USD) under Statecontrol.
As for Vinachem’s member companies, it plans to retain more than 65 per cent ofcharter capital at the Vietnam Apatite One Member Limited Company in 2018.
It will also maintain 50-plus percent to less than 65 percent stake in sevenmember companies, less than 50 percent stake in nine others, and divestcompletely from 15 companies.
According to Vinachem’s financial report of the second half of 2017, the combinedprofit from its subsidiaries was 50 billion VND (2.2 million USD), with a lossof 192 billion VND (8.5 million USD) by the parent company.
Nonetheless, Vinachem’s 2017 revenue increased by 5.5 percent compared to 2016.
Starting from 2017, the Ministry of Industry and Trade started inspection ofVinachem’s previous ineffective investments, including an 80 percentaccumulated loss ratio of 4.2 trillion VND (200 million USD), most notably fromthe Ninh Binh Nitrogenous Fertiliser Plant project, though nosanctions have been imposed so far.
Vinachem’s main businesses are production and trading of basic chemicals, andmining and processing of raw material for fertilisers, pesticides and chemicalproduction.
According to reports of the Department of Corporate Finance under the Ministryof Finance, the Government is instructing the corresponding agencies tocomplete the 2018 national equitisation plan at 64 State-owned enterprises(SoEs), with another 18 enterprises in 2019 and one more in 2020.
The State 2018-2020 equitisation scheme focuses on State capital withdrawalfrom large-scale enterprises, with a wide scope of business and high structuraland financial complexity.
The Government has specially requested the participation of strategic investorswith a strong financial background and management capacity, and has asked theSoEs to carefully prepare, process and audit themselves before the equitisationprocess.-VNA
VNA
