Prime Minister approves equitisation plan

HA NOI (VNS) — Prime Minister Nguyen Tan Dung has approved the equitisation plan to transform the State-owned Viet Nam National Construction Consultants Corporation (VNCC) into a joint stock company on January 15.

After the equitisation, VNCC, under the Ministry of Construction, will have chartered capital reserves of VND357.7 billion (US$15.89 million), or 35,774,448 shares at a par value of VND10,000 (43 cents) per share.

Under the plan, the MoC, representing the State capital, will hold 18,244,968 shares, or 51 per cent in the corporation, while as much as 1,779,500 shares, or 4.97 per cent of the charter capital, will be sold to employees.

Further, MoC will decide upon the number and prices of shares to be sold during the initial public offering to strategic investors.

In 2015, the corporation earned revenues of VND1.128 trillion ($56.8 million), an increase of 8 per cent, and profits of VND70.85 billion ($3.14 million), up 13 per cent over 2014.

Plans also call for the corporation to divest partly or wholly in its core and non-core business.

Similar to VNCC, according to the local media, MoC plans the equitisation of four large enterprises under its umbrella in 2016. The SOEs of Song Da Corporation, Housing and Urban Development (HUD), Viet Nam Urban and Industrial Zone Development Investment Corporation (IDICO) and the Viet Nam Cement Industry Corporation (VICEM) have largely completed their corporate evaluations. Those companies were working with the State Audit of Viet Nam to assess their values before the figures are approved and announced by the ministry.

Currently, the ministry has nearly finished its target of having all SOEs equitized. Most enterprises under the ministry are large, with some firms reporting assets of over VND10 trillion ($445 million) and State ownership ranging from VND1 trillion to VND15 trillion.

Also, many companies own land use rights, offices, workshops, urban areas, industrial zones and none-core businesses. — VNS