MoT sets sights on business equitisation

Saturday, Feb 27, 2016 06:00

Workers repair a section of railway along Long Bien bridge in Ha Noi. — VNA/VNS Photo Huy Hung
HA NOI  (Biz Hub) — The Ministry of Transport will accelerate equitisation of transport corporations this year, an official from the ministry said in a recent interview.

Enterprise Management Department Director Vu Anh Minh told Giao thong, a newspaper of the ministry, that the key targeted businesses include Viet Nam National Shipping Lines (Vinalines), Shipbuilding Industry Corporation (SBIC), and the Viet Nam Expressway Corporation.

The other major companies are Nam Thang Long Transport Hospital, and Cuu Long Corporation for Investment Development and Project Management of Infrastructure.

The privatisation of these firms began last year, but has not yet been completed. The delay in Vinalines and SBIC cases were particularly attributed to obstacles related to their capital and debt settlement.

This year, the ministry also plans to equitise Academy of Aviation, Thang Long Vocational Training School, and two transport hospitals in Vinh and Da Nang central cities.

A registration centre of the Viet Nam Register and five technical centres of the Directorate for Roads of Viet Nam are also aimed for equitisation in 2016.

"The sooner enterprises get off ‘their parents' nourishment', the more experience and resources they will gain to better adapt to market developments," Minh said. "This is especially meaningful when we are integrated more deeply into the global economy."

Minh said that the one important thing to accelerate the equitisation process and improve competitiveness and efficiency of the companies after they are privatised, is to seek strategic investors who are truly capable.

The authorities have been cautious about looking for investors with adequate ability in terms of management, market, technology and finance, he said.

Minh said the ministry will not equitise four of its corporations, which serve the public. They are Viet Nam Maritime Safety – North, Vietnam Maritime Safety – South, Vietnam Air Traffic Management Corporation and Vietnam Railway (VNR).

The ministry will maintain controlling stakes in national flag carrier Vietnam Airlines and the Airports Corporation of Viet Nam, which is managing 22 airports nationwide.

It will withdraw state capital from all other corporations in the long run.

In January, Minh told Vietnam News Agency that the ministry planned to complete capital withdrawal from Vietnam Motor Industry Corporation, Transport Engineering Design Inc, Civil Engineering Construction Corporation No 5 (Cienco 5), Cienco 6 and Cienco 8 this year.

It will also step up divestments in a number of its seaports and VNR affiliates in 2016.

Between 2011 and 2015, 137 businesses in the transport sector went public, 67 more than the target that the ministry set for the period, according to Deputy Minister of Transport Nguyen Hong Truong. — VNS

Comments (0)