Vinachem announces equitisation plan for 2018

Saturday, Mar 10, 2018 08:35

Workers at South Chemicals Joint Stock Company package yellow phosphorus products in Lao Cai Province. — VNA/VNS Photo Hong Ky

The Viet Nam National Chemical Group (Vinachem) has announced its equitisation and divestment plans for its member companies in 2018.

Regarding the plan, Vinachem will seek the approval of the Prime Minister and Ministry of Industry and Trade to issue a decision on the corporation’s equitisation of its three member companies in the first and second quarter of 2018.

The three companies are the Viet Nam Apatite One Member Limited Company, the Viet Nam Institute of Industrial Chemistry and the parent company of Vinachem.

This is part of Decision No.16/QD-TTg dated January 5, 2018, signed by Deputy Prime Minister Vuong Dinh Hue, approving the restructuring plan for 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 for streamlined and compact business models after the equitisation and divestment process at Vinachem and its member companies.

Regarding the divestment plan, the key focus of Vinachem is State divestment from a number of its subsidiaries.

For seven companies that Vinachem is holding 50-plus per cent to less than 65 per cent stake, Vinachem will maintain a 51 per cent stake at Ninh Binh Phosphate Fertiliser Joint Stock Company and Viet Nam Pesticide Joint Stock Company.

At the same time, it will sell a part of its stake in the other five companies, which are Industrial Gas and Welding Electrode Joint Stock Company, Viet Tri Chemical Joint Stock Company, South Basic Chemicals JSC, Lam Thao Fertilisers and Chemicals Join-Stock Company and VanDien Fused Magnesium Phosphate Fertiliser Joint Stock Company.

For nine companies that Vinachem is holding less than 50 per cent stake, it will reduce the portion to 36 per cent. The nine companies are Southern Rubber Industry Joint Stock Company, Da Nang Rubber Joint Stock Company, Yellow Star Rubber Joint Stock Company, Binh Dien Fertiliser Joint Stock Company, Can Tho Fertiliser and Chemicals Joint Stock Company, Southern Fertiliser Joint Stock Company, Net Detergent Joint Stock Company, Lix Detergent Joint Stock Company and Dry Cell and Storage Battery Joint Stock Company.

Vinachem will also divest completely in 15 other companies, including Hanoi Soap Joint Stock Company, Vinh Phu Storage Batteries & Dry Cells Joint Stock Company, Inoue Rubber Viet Nam Co Ltd, TPC VINA Plastic and Chemical Corporation Limited and Southern Chemical Import and Export Joint Stock Company.

"Vinachem has clearly defined its restructure roadmap. However, in order to overcome challenges and difficulties, in addition to the efforts of leaders and staff, Vinachem hopes to receive support from the Government, related ministries and agencies,” Vinachem said.

Vinachem’s main businesses are production and trading of basic chemicals, and mining and processing of raw material for fertilisers, pesticides and chemical production. — VNS

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