MARD divested US$70mln from 72 businesses in 2014

Friday, Jan 09, 2015 15:15

MARD determines to fulfill divestment from agricultural businesses in 2015. –

HA NOI (Biz Hub) – The Ministry of Agriculture and Rural Development divested more than VND1,500 billion (US$70.58 million) from 72 agricultural enterprises by the end of 2014, reported on January 8.

The divestment exercise accounted for 46 per cent of total proposed under the government's plan.

The total capital that the State plans to withdraw from 167 businesses under the Ministry of Agriculture and Rural Development's (MARD's) management is more than VND3.2 trillion ($150.58 million).

The most notably successful example of divestment was the Viet Nam Rubber Group (VRG), where VND776.2 billion ($36.5 million) was withdrawn from 28 member businesses. The success of divesting VRG was followed by the Southern Food Corporation from which capital of VND54 billion ($2.5 million) was divested, accounting for 17 per cent of the target.

According to the MARD's Business Management Department, the ministry's divestment plan is still on the right track despite the divestment of non-core businesses running behind schedule due to the difficulties encountered in the finance, banking and property sectors.

Nonetheless, economic expert Cao Sy Kiem seems positive about the prospects of divestment in the agricultural sector, and said the sector's investment in non-core businesses is not as big as other sectors.

He told the that there is a high possibility that MARD will fulfil its plan of divestment in 2015 since it has drawn a roadmap for capital withdrawal and the minister is eager to push it forward.

At present, the ministry has invested in 13 groups, corporations and companies, with total capital being pegged at VND3,562 billion ($167.6 million).

In 2015, the ministry will complete equitisation of the Forestry Corporation, the Agricultural Materials Corporation, three companies under the Viet Nam Rubber Industry Corporation, and seven companies under the Southern Food Corporation, as well as five companies under the Viet Nam Coffee Corporation.

The ministry had equitized seven corporations, including the Corporation for Building Agriculture and Rural Development, the Vietnam National Seaproducts Corporation, the Vietnam National Tea Corporation, and the Vietnam National Vegetables in 2014.

During the same year it also equitized the Fruit and Agricultural Products Corporation, the Vietnam National Forestry Corporation, the Agricultural Materials Corporation, and the Vietnam Southern Food Corporation.

MARD Minister Cao Duc Phat was quoted by as saying that his sector will have to be restructured much more comprehensively in 2015 and focus on developing the products that Viet Nam holds some advantage in. – VNS

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