State-owned groups speed up equitisation

Thien Thanh Sanitaryware joint company

State-owned groups speed up equitisation

State-owned economic groups are continuing to restructure their member companies, even as they surpass their set business plan targets for the first half of the year. This news was reported at a conference in Ha Noi last Friday.

The Viet Nam National Coal and Mineral Industries Group (Vinacomin) and the Viet Nam National Chemical Group (Vinachem) reported that they have completed equitisation and divestment from operations outside their key business fields.

Electricity of Viet Nam (EVN) Deputy General Director Ngo Son Hai said the group has withdrawn investments from real estate and financial companies, and completed preparations for the equitisation of Power Generation Corporation 3.

Further, a representative from Viet Nam National Textile and Garment Group (Vinatex) said Vinatex has also withdrawn capital from financial institutions, while accelerating the carrying out of 65 projects valued at VND6.2 trillion (US$279 million).

Also, Viet Nam Posts and Telecommunications Group (VNPT), Viet Nam National Oil and Gas Group (PetroVietnam) and Viet Nam Rubber Industry Group are revamping their organisations and applying advanced administration methods.

During the first half of this year, these groups, with the exception of PetroVietnam, posted year-on-year increases of 3-13 per cent in revenues, contributing a cumulative VND76.9 trillion ($3.4 billion) to the State coffers.

Those attending the conference heard that Vinacomin is one of the groups that encountered the most difficulties in the first months of this year, especially after floods in late July forced the group to suspend coal mining in the northern province of Quang Ninh.

However, the group is committed to ensuring coal supplies for the economy, as well as for the power and chemical sectors, said Do Xuan Ly, deputy head of the group's personnel and organisation department.

Meanwhile, a representative from PetroVietnam said the group is suffering from the adverse impacts of falling global oil prices.

However, cooperation between PetroVietnam, EVN, Vinacomin and Vinatex in using their respective products is expected to help the groups maintain production during these hard times.