Vinachem’s subsidiaries subject to equitization include Apatit Vietnam and Vietnam Institute of Industrial Chemistry.
Vinachem to step up restructuring effort in 2018.
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On January 5, the Deputy Prime Minister Vuong Dinh Hue signed the Decision approving the restructuring plan of Vinachem in period 2017 – 2020. As such, Vinachem will hold less than a 50% stake in seven companies and sell all of its stake in 15 other companies.
Following the plan, Vinachem will scale down its business lines to producing and trading basic chemicals; exploiting and processing minerals as raw materials for fertilizer and chemical production; and producing and trading pesticides and fertilizers containing phosphorus.
Specifically, out of 7 companies that Vinachem currently holds from over 50% to less than 65% of charter capital, Vinachem’s ownership at Ninh Binh Phosphate Fertilizer JSC and Vietnam Pesticide JSC will remain at 51%.
Meanwhile, the group will sell part of its shareholdings in the remaining five, including Industrial Gases and Welding Electrode JSC, Viet Tri Chemicals JSC, the Southern Basic Chemicals JSC, Lam Thao Fertilizers and Chemicals JSC, and Van Dien Fused Magnesium Phosphate JSC.
Vinachem expects to reduce charter capital in 9 other companies from less than 50% to 36%, namely Southern Rubber Industry JSC, Da Nang Rubber JSC, Sao Vang Rubber JSC, Binh Dien Fertilizers JSC, Can Tho Fertilizers and Chemicals JSC, the Southern Fertilizers JSC, NET Detergent JSC, LIX Detergent JSC and Dry Cell and Storage Battery JSC.
Furthermore, Vinachem will withdraw its entire capital from the following 15 companies, namely Hanoi Soap JSC, Vinh Phu Battery JSC, Tia Sang Battery JSC, Inoue Rubber Vietnam Co., Ltd, TPC VINA Plastic and Chemical Co., Ltd, South Chemicals Import – Export JSC, Hanoi Synthetic Paint JSC, Duc Giang Chemicals and Detergent Powder JSC, Hanoi Batteries JSC, Viet Nam Chemical Import & Export JSC, Ninh Binh Fertilizer Port JSC, Tay Ninh Chemical Industry JSC, Da Nang Chemicals Industry JSC, Mine Construction and Investment Consultancy JSC and Chemical Engineering Joint Stock Corporation.
Last but not least, Vinachem will have to divest all state funds from companies such as Ha Bac Nitrogenous Fertilizer and Chemical JSC, DAP-Vinachem JSC, DAP No. 2 – Vinachem JSC and Ninh Bình Nitrogenous Fertilizer and Chemical Co., Ltd in case these companies recover from losses and start posting profitability, according to the Prime Minister’s instruction on September 29.
In 2017, Vinachem reported its industrial production value at VND42 trillion (US$1.8 billion), equaling the year’s plan and an increase of 8.8% compared to 2016, informed the Vice Minister of Industry & Trade Do Thang Hai at the group's annual business review in 2017 and plan for 2018 late January.
The group's revenue in 2017 is estimated at VND45 trillion (US$1.9 billion) or 3.3% higher than the target, and up 5% over the last year’s period, resulting in a consolidated profit of VND47 billion (US$2 million).
