Jardines Matheson, the strategic investor of Vinamilk, Truong Hai Auto Corporation (Thaco), Refrigeration Electrical Engineering Corporation (REE), and various other companies, will pay attention to the restructuring of weak banks and credit institutions in Vietnam.
|Jardines Matheson investing around $1.5 billion into these four companies |
Jardines Matheson Holdings Limited is a British conglomerate incorporated in Bermuda with its primary listing on the Singapore Exchange. The firm’s revenue was estimated at over $70 billion in 2017.
It has been present in Vietnam for over 20 years in a variety of fields and sectors. Jardines Matheson is holding 10 per cent of Vinamilk’s charter capital, 25 per cent of Thaco, over 23 per cent of REE, as well as various stakes in other real estate and construction companies.
At the meeting with Deputy Prime Minister Vuong Dinh Hue on March 12, Henry Keswich, chairman of Jardines Matheson, applauded Vietnam’s to comprehensive economic results achieved in 2017 and the successful deals to sell state capital in enterprises and attract qualified foreign investors. He also expressed interest in the equitisation and divestment activities at state-owned enterprises (SOEs) and wanted to further participate in this sector.
DPM Hue said there are many co-operation opportunities between firms of the two countries, and there will be even more in the time coming. He also suggested Jardines Matheson to further develop in the sectors of milk products, automobiles, machinery, construction, real estate, as well as finance and insurance.
Additionally, the group could expand investment and participate in restructuring SOEs and credit institutions in Vietnam, which are two of the five major economic restructuring initiatives. Thereby, the government has issued a list of SOEs to divest and equitise by 2020.
According to plan, the state will only hold capital in security-defense companies and special public services firms. Currently, Vietnam is also working to handle weak banks to achieve the balanced development of credit and non-credit services.
The Vietnamese government commits to ensuring macroeconomic stability and creating a favourable business environment in line with international standards and practices. The capital-securities, labour market, science-technology applications, and land policies also being developed to support businesses. Moreover, Vietnam is member of more than ten regional and global free trade agreements.