Vinachem targeting equitization of units this year

Tuesday, Feb 24, 2015 17:13

A production line in Ha Bac Nitrogen Fertilizers and Chemicals Company. Its equitisation this year will contribute into boosting the Vinachem's trade and production. — Photo Tran Viet

HA NOI (Biz Hub) — The Viet Nam National Chemical Group (Vinachem) intends to complete the equitisation of all its subsidiary companies this year, said Deputy General Director Bui The Chuyen.

These companies, in which Vinachem holds registered capital, include the Ha Bac Nitrogen Fertilizers and Chemicals Company, the Ninh Binh Nitrogenous Fertilizer and Chemical Limited Company and the Viet Nam Chemical Import & Export Corporation (Vinachimex).

Chuyen said the group will also divest its investment capital from eight businesses, including the Vietnam Industrial and Commercial Securities JSC, the Hanoi Soap JSC and the Additives and Petroleum Products Joint Stock Company.

In addition, he said the group will have to reduce its holdings to 30 per cent of the working capital of Chemical Industry Engineering JSC and Construction and Investment Consultancy JSC.

"These developments are important tasks that Vinachem will have to carry out this year, and are aimed at synchronising organization, reducing spending, focusing on human resource training and renovating technology and production lines," said Chuyen.

It is also expected to boost trade and production in 2015 and going forward," he stressed.

In 2015, the domestic economy is expected to encounter many difficulties, owing to the impact of the world's disparate situation.

As for good markets, especially in the fields of chemicals and fertilizers, the economy will experience medium-intensity disorders because of the supply and demand impact, fluctuation in oil prices, and due to fierce competition between Viet Nam and other ASEAN countries.

This year is also the time when free trade agreements between Viet Nam and its partner countries officially come into effect, gradually erasing trade protection barriers, such as tariff and other policies.

The General Director of the Vinachem Group Nguyen Gia Tuong said the group has submitted to the Prime Minister, its development strategy for the 2015 to 2020 period with a vision to 2030 for approval. At the same time, the group has been working with the ministries of Finance and Industry and Trade to study and issue a financial regulation, which aims to orient the group's operations and implementation of tasks and plans the next time around.

The group also completed the equitisation of its subsidiary companies in 2014, including the Southern Basic Cheminal JSC, DAP-Vinachem JSC and Industrial Gases and Welding Electrode JSC.

The group is targeting a 7.2 per cent jump in its industrial production to more than VND45 trillion (US$2.14 billion) and a similar fillip in revenue to over VND49 trillion ($2.33 billion) this year. Its employees' salaries are also expected to increase by 5 per cent. — VNS

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