Workers at South Chemicals Joint Stock Company package yellow phosphorus products in Lao Cai province (Photo: VNA) Hanoi (VNA) - The Vietnam NationalChemical Group (Vinachem) has announced its equitisation and divestment plansfor its member companies in 2018.
Regarding the plan, Vinachem will seek theapproval of the Prime Minister and Ministry of Industry and Trade to issue adecision on the corporation’s equitisation of its three member companies in thefirst and second quarter of 2018.
The three companies are the Vietnam Apatite OneMember Limited Company, the Vietnam Institute of Industrial Chemistry and theparent company of Vinachem.
This is part of Decision No.16/QĐ-TTg datedJanuary 5, 2018, signed by Deputy Prime Minister Vuong Dinh Hue, approving therestructuring plan for Vinachem.
The decision, designated for 2018-2020, aims toimprove Vinachem’s structure, capacity, production efficiency and businesscompetitiveness.
While signing the decision, Hue stated the needfor streamlined and compact business models after the equitisation anddivestment process at Vinachem and its member companies.
Regarding the divestment plan, the key focus ofVinachem is State divestment from a number of its subsidiaries.
For seven companies that Vinachem is holding50-plus percent to less than 65 percent stake, Vinachem will maintain a 51 percentstake at Ninh Binh Phosphate Fertiliser Joint Stock Company and VietnamPesticide Joint Stock Company.
At the same time, it will sell a part of itsstake in the other five companies, which are Industrial Gas and Welding ElectrodeJoint Stock Company, Viet Tri Chemical Joint Stock Company, South BasicChemicals JSC, Lam Thao Fertilisers and Chemicals Join-Stock Company and Van DienFused Magnesium Phosphate Fertiliser Joint Stock Company.
For nine companies that Vinachem is holding lessthan 50 percent stake, it will reduce the portion to 36 percent. The ninecompanies are Southern Rubber Industry Joint Stock Company, Da Nang Rubber JointStock Company, Yellow Star Rubber Joint Stock Company, Binh Dien FertiliserJoint Stock Company, Can Tho Fertiliser and Chemicals Joint Stock Company,Southern Fertiliser Joint Stock Company, Net Detergent Joint Stock Company, LixDetergent Joint Stock Company and Dry Cell and Storage Battery Joint StockCompany.
Vinachem will also divest completely in 15 othercompanies, including Hanoi Soap Joint Stock Company, Vinh Phu Storage Batteries& Dry Cells Joint Stock Company, Inoue Rubber Vietnam Co Ltd, TPC VINAPlastic and Chemical Corporation Limited and Southern Chemical Import andExport Joint Stock Company.
"Vinachem has clearly defined itsrestructure roadmap. However, in order to overcome challenges and difficulties,in addition to the efforts of leaders and staff, Vinachem hopes to receivesupport from the Government, related ministries and agencies,” Vinachem said.
Vinachem’s main businesses are production andtrading of basic chemicals, and mining and processing of raw material forfertilisers, pesticides and chemical production.-VNA
VNA
