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Vinatex to sell non-core operations
The Viet Nam Textile and Garment (Vinatex) Group plans next year to continue divesting capital from non-core lines of business such as banking, securities investment and beverage production, according to the newspaper Dau Tu (Investment).
Vinatex will renew its focus on such core business areas as fibre production, knitting, dyeing and garment production. It will withdraw its investments from Sai Gon-Quang Ngai Beer Joint Stock Co and Gia Lam Garment Engineering Co, after selling shares at Dong A Textile Garment Joint Stock Co, offering its shares in these companies on the nation's stock exchanges on December 28.
Shares of Sai Gon-Quang Ngai Beer Joint Stock Co will be sold at an initial price of VND10,000 per share while shares of Gia Lam Garment Engineering Co will be auctioned with an initial price of VND170,000.
Vinatex is one of a number of State-owned enterprises that have encountered some difficulties in divesting from non-core areas, according to senior economist Pham Chi Lan.
In the current market context, the enterprises have had no choice but to sell holdings at low prices in order to quickly recover capital, Lan said.
Compared to other major State economic groups, the capital Vinatex has invested into non-core areas was modest at VND259 billion (US$12 million) out of a total State equity of VND4 trillion ($190 million). Vinatex holds a 100-per-cent interest in four companies, a majority interest in 13 other companies, and a minority interest in 48 other companies.
"Despite encountering a series of hardships, we commit to complete divesting from non-core areas before 2015," said Vinatex deputy director Le Tien Truong.
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