HCM City to equitise Sai Gon Jewelry and many public service firms in 2019

August 05, 2018 | 18:28

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HCM City People’s Committee will equitise Sai Gon Jewelry Co Ltd (SJC), Vietnam’s largest gold and gold jewelry production and distribution company, in 2019.

hcm city to equitise sai gon jewelry and many public service firms in 2019

SJC is a national gold brand, accounting for 90 per cent of gold bullion market share in the domestic market. - Photo vov.vn

Together with SJC, seven public utility companies are also set to be equitised next year.

The municipal committee assigned the city’s board for State-owned enterprise (SOE) management reform to perfect the plan for SOE re-organisation and reform in the 2018-20 period.

SJC, formed in 1988, is a State-owned enterprise under the HCM City People’s Committee operating under the parent-subsidiary company model with production and trading gold and jewelry as its main business. It accounts for 90 per cent of the gold bullion market share in the domestic market.

In May 2011, the State Bank of Vietnam (SBV) appointed SJC as the sole entity authorised to produce gold bars in Vietnam.

In 2017, SJC recorded VND22.95 trillion (US$998 million) in revenue and VND85.4 billion in pre-tax profit.

Apart from JSC, other businesses subject to equitisation next year are the public service companies of districts of 7, 8, 9, Binh Thanh, Go Vap and Nha Be, along with the Liksin Industry – Printing – Packaging Corporation.

Meanwhile, the city asked the Government to exclude HCM City Irrigation Management Company from equitisation.

At the proposal of the board for SOE management reform, the municipal People’s Committee also agreed to keep 100 per cent of State capital at the Sai Gon Water Corporation.

The southern city is accelerating procedures and approval of plans on equitisation and divestment of State capital from 39 businesses.

It added that the businesses had completed asset assessment pending approval of equitisation plans, and on receiving approval, they expected to complete equitisation within 2018 and 2019.

VNA

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