CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / Opportunities
International investors show interest in Vinalines shares
Nguyen Tung 23:08, 2018/07/02
A number of foreign companies are showing interest in becoming major shareholders of debt-laden Vietnam National Shipping Lines (Vinalines).
South Korean-based groups Hyundai Motor and SK, Thailand's Siam Cement Group (SCG) and Belgium's Ackermans & van Haaren are exploring options to purchase stakes in Vinalines, said Nguyen Canh Tinh, acting CEO of Vinalines. 
 
Illustration photo.
Illustration photo.
Consequently, Hyundai Motor has submitted an official request to join Vinalines' upcoming equitization process, while SCG is looking to cooperate with Vietnam's largest shipping firm to operate seaports, Tinh added.

Additionally, Oman's State General Reserve Fund (SGRF) has been in discussion with the local government to become a strategic investor of Hai Phong Port, which is currently owned by Vinalines. 

Last August, Vinalines and Rent-A-Port N.V., an investment and management arm of the Belgian Ackermans & van Haaren signed a memorandum of understanding (MoU) on the possibility of cooperating in a grain specialized port, processing zone and logistics system projects in Lach Huyen port and Dinh Vu industrial zone. 

Furthermore, Rent-A-Port N.V will have the option of purchasing 10% of Vinalines' charter capital when the company becomes privatized. 

Vinalines is scheduled to offer a 20% stake of itself in an initial public offering (IPO) at the Hanoi Stock Exchange in September at a starting price of VND10,000 (US$0.44), according to the equitization scheme recently approved by Prime Minister Nguyen Xuan Phuc.

The government will retain 913 million shares, equivalent to a 65% stake, out of 1.4 billion shares. Post-IPO, Vinalines will have charter capital of VND14.046 trillion (US$631.8 million).

Another 2.29 million shares or 0.16% of charter capital will be sold to employees, while 207.2 million shares to strategic investors, or a 14.8% stake, will be offered to strategic investors.

The firm's IPO has been delayed several times as it needed to undergo a longer-than-expected restructuring process.

Vinalines currently manages and operates a diverse fleet including container ships, bulk carriers, oil tankers, and other types of cargo vessels. The Vinalines fleet has large bulk carriers up to 73,000 DWT, 1,800 TEU container ships, and 50,000 DWT oil tankers.

Of the total of 130.9 million tons of cargo shipped last year by Vietnamese vessels, Vinalines' fleet took 20.2%. 

By the end of 2017, Vinalines had completed divestment in 39 companies for VND2.4 trillion (US$105 million) in return, resulting in a net profit of VND360 billion (US$15.8 million).

Overall, the firm saw its debt reduced by VND10.6 trillion (US$440 million) in period 2014 - 2017, according to Le Quang Trung, vice general director of Vinalines. 

Additionally, its member companies also cut debts by VND2.3 trillion (US$101 million). As of December 31, 2017, Vinalines' debts owed to banks totaled up to VND14.7 trillion (US$646 million), including principals of VND11.3 trillion (US$497 million) and unpaid interests of VND3.3 trillion (US$145 million). 
Comments
Other news
15:12, 2024/11/14
North-South high-speed railway to open up new economic opportunities
The government proposes a design speed of 350 km/h for the railway to ensure a modern, integrated, and forward-looking infrastructure appropriate to Vietnam’s geographical and economic conditions.
17:25, 2024/11/07
Prime Minister calls on China to pilot border economic cooperation zone
This economic cooperation zone is an initiative proposed by China and has been under negotiation with several countries, including Vietnam, since 2007.
17:29, 2024/07/23
State-owned corporations set to pilot offshore wind power projects
Private and foreign investors are currently not being considered for pilot projects due to unresolved legal and security issues.
06:12, 2024/07/17
AIIB ready to fund Hanoi’s urban railway projects
Hanoi expects the AIIB to assist with planning, implementation methods, and financing strategies to rapidly deploy metro projects.
15:33, 2024/07/02
S.Korea’s industrial conglomerates to expand investment activities in Vietnam
Prime Minister Pham Minh Chinh welcomed the proposals, which are consistent with Vietnam’s green growth strategy.
11:29, 2024/05/08
Intel boosts Vietnam’s semiconductor workforce for ambitious goals
Kim Huat Ooi, Vice President of Manufacturing, Supply Chain and Operations and General Manager of Intel Products Vietnam, spoke to The Hanoi Times about Vietnam's semiconductor ambitions and Intel's contribution to making the country a global manufacturing and R&D hub.