Equitisation plan of first hospital to be revised

Monday, Jun 29, 2015 16:40

A view of a newly-opened healthcare building of Giao Thong hospital. — Photo

HA NOI (Biz Hub) — Deputy Prime Minister Vu Van Ninh has directed the Transport Ministry to make alterations to a plan to equitise Giao Thong (Transport) Hospital before seeking the Prime Minister's approval.

The directive follows suggestions by relevant ministries and agencies to improve the plan, which was proposed by the Transport Ministry three months ago.

Under the plan, the hospital will sell a part of State-owned capital contribution and issue bonds to increase its charter capital.

The hospital's estimated worth is VND158 billion ($ 7.4 million), which includes 86 per cent State capital. After its equitisation, it is expected to have a charter capital of VND168 billion ($7.8 million), equivalent to 16.8 million shares.

In the initial public offering (IPO), the State will hold 30 per cent of the hospital's charter capital, while the hospital's staff will have 8.7 per cent. Some 30 per cent will be for strategic investors and the remainder 31.3 per cent will be auctioned.

However, the Finance Ministry has observed that since the hospital operates in the field of health care and medical treatment, it is not necessary to have strategic investors own capital worth at least VND1 trillion ($46 million).

A representative of the Transport Ministry told Dau Tu (Investment) Newspaper that the Finance Ministry's suggestion to provide more opportunities for investors to become strategic investors will be accepted.

Regarding the rate of charter capital held by the State, Deputy Minister of Planning and Investment Dang Huy Dong said under current regulations, there is no need for the State to hold capital at enterprises in the field of health care.

Also, under the Enterprise Law issued in 2005 and 2014, holding an enterprise's 30 per cent charter capital will not have much meaning in terms of voting for or against the important issues of the enterprise, he said.

The Ministry of Planning and Investment has also proposed the Transport Ministry to reconsider a proposal to choose T&T Group as a strategic investor among enterprises registered during the IPO.

Domestic firms Vingroup, T&T Group, and property developer FLC Group, in addition to two foreign investors from Malaysia and Singapore have registered with the Transport Ministry to become the strategic investors of the hospital.

The Transport Ministry should instruct the hospital to sell shares to strategic investors through an auction among investors to protect the highest interests of both State and enterprises, Deputy Minister Dong noted.

Meanwhile, the Planning and Investment Ministry has disapproved the Transport Ministry's proposal to allocate funds [around VND25 billion ($1.15 million) per year] from the State budget to pay the hospital's workers for three years after its equitisation, saying it did not meet the Enterprise Law and will lead to unfair competition among businesses.

However, the Health Ministry has supported the proposal, citing it is essential to continue providing funds for the hospital after its equitisation to prevent it from changing its investment plan and cutting down on its checkup and treatment services.

Giao Thong Hospital, which is a 21,200sq.m. general hospital located at Chua Lang Street, Dong Da District, recently opened a health-care building on a total investment of US$15 million.

The seven-storey building, built on nearly 17,000sq.m., has been equipped with advanced health-care facilities and 200 beds. It was built on the capital from the OPEC Fund for International Development's official development assistance.

The hospital will be the first public health-care centre in Viet Nam to complete its equitisation plan.

The Transport Ministry has said it will soon finalise the hospital's equitisation plan to submit it to the Prime Minister for approval and carry out its IPO in the third quarter of this year as scheduled. — VNS

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