Vinalines Plans Ports Divestment
The Vietnam National Shipping Lines (Vinalines) and the Ministry of Transport (MOT) hope the plan to reduce the state’s ownership ratio in the big shipping firm to 36 percent will help restructure the business.
It has finalized an overall plan for the development of its seaport network, for submission to the Ministry of Transport and then the Prime Minister for a decision.
The watchdog agency MHA has realized that investors would not be interested in Vinalines’ shares if the State intended to hold a big proportion of shares after equitization. The plan is to equitize Vinalines, described as “very daring” under which the State will hold 36 percent of chartered capital only after selling seaports and equitizing subsidiaries.
Vinalines hopes to continue to hold 51 to 65 per cent of the charter capital at the key northern port of Hai Phong, where it currently holds 94.68 per cent. For the three key ports of Da Nang, Can Tho, and Vinalines Dinh Vu, it has proposed it holds 51 per cent of charter capital.
The ports turning a good profit will be the mainstay of Vinalines in overcoming its ongoing difficulties stemming from losses of around VND382 billion ($17.7 million) in 2014, says Le Anh Son, General Director of Vinalines.
Meanwhile, Hanoi has said it is willing to hold just 36% of the equity of Vinalines in a bid to get investors onboard and help restructure the ailing flagship carrier of the Southeast Asian nation.
The drop in ownership ratio is a massive one – Hanoi having earlier suggested it would retain 75% of the chartered capital, after a planned equitisation. The government has become aware that investor interest in the line was very limited unless it slashed its ownership ratio.
Vinalines is the Vietnam’s largest shipping line with 109 vessels and total tonnage of 2.5m dwt.