Vinacomin strives to complete restructuring by 2015

Vinacomin strives to complete restructuring by 2015 - 

The Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) has adopted solutions to implement the project on restructuring state-owned enterprises approved by the prime minister with a focus on key areas.

Efforts to withdraw capital

Vinacomin Deputy General Director Nguyen Van Bien when addressing a press conference on the corporation’s business and production activities in the first quarter of this year said that Vinacomin dissolved and changed nine one-member limited companies operating in the coal production field into the corporation’s branches. After a conversion, limited companies have effectively operated based on a new model. In addition, Vinacomin streamlined the whole apparatus from agencies to units. The corporation reduced the number of departments to 22 instead of 28.

According to Nguyen Van Bien, Vinacomin withdrew capital from 77 percent to 34 percent in the Vinacomin Southern Coal Joint Stock Company and completely withdrew capital in the Vietnam National Aviation Insurance Company (VNI) with a total value of VND50 billion. To date, the corporation still has a total capital of about VND500 billion in the Saigon-Hanoi Commercial Joint Stock Bank (SHB), the Saigon-Hanoi Securities Joint Stock Company (SHS), the Saigon-Hanoi Fund Management Joint Stock Company (SHF) and Quang Ninh Province’s Hai Ha Industrial Zone. The corporation is striving to complete capital withdraw in 2014 and approve for trading in the securities market for SHB and SHS.

“The withdrawal of capital in these companies is not difficult as stock prices are going well. The corporation is waiting for reasonable prices and will not cause any loss of capital. Compared to a charter capital of VND33 trillion, an investment capital of VND500 billion is not large,” Nguyen Van Bien said.

Completing equitization

To accelerate the restructuring process, Vinacomin is conducting equitization in eight units. In the first three months of this year, Vinacomin completed the equitization of two units, including the Vinacomin-Material, Transport and Stevedoring Limited Company and the Thai Nguyen Non-Ferrous Metals Limited Company. The Vinacomin-Power Holding Corporation Limited, the Vinacomin-Viet Bac Mining Industry Holding Co., Ltd., the Vinacomin-Minerals Holding Corporation, the Vinacomin-Shipbuilding and Mechanical Company Limited, the Technology Development and Mining Equipment Company and the Vinacomin-Nhan Co Environment and Construction Company are the six remaining units conducting equitization in 2014.

According to Nguyen Van Bien, the corporation decided to calculate the value of equitized companies from March 31, 2014. Member units have actively deployed the restructuring project and found strategic partners for the corporation. The corporation will complete equitization in all eight units by the end of 2014.

Vinacomin has also withdrawn capital from banking and finance and infrastructure.

According to economists, restructuring the coal industry must focus on key business areas. Vinacomin needs to consider restructuring as an opportunity and the restructuring process should be made public.

According to Vinacomin’s report, in the first quarter of this year, the corporation implemented basic criteria in the yearly plan. The corporation produced and sold 9.7 and 9.35 million tonnes of coal, achieving 25.6 and 26.7 percent of the yearly plan, respectively. The corporation’s total revenues in the first quarter of this year reached VND25.809 trillion, achieving 24.5 percent of the yearly plan and equal to 108.5 percent compared to the same period last year.

Source: VEN

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