Stones not to cause ripples

PetroVietnam is reshuffling its portfolio

The Vietnam National Coal and Mineral Industries Group (Vinacomin) said it would step by step restructure its affiliates and joint ventures by mergers or reducing holdings. For less effective or non-core business enterprises, Vinacomin would dissolve or cut stakes to invest in key projects.

Vinacomin has 43 member companies, four joint ventures and seven administration units. The group currently owns a 15 per cent stake in Saigon-Hanoi Commercial Bank (SHB) and controlling stakes in listed firms like Coc Sau Coal and Nui Beo Coal.

Vinacomin’s general director Tran Xuan Hoa said his group would complete its plan to reduce stakes in some affiliates by the year’s end. However, it would not sell stakes but these enterprises would raise chartered capital, bringing Vinacomin’s holdings down.

“Vinacomin will also not sell stakes in listed firms as these firms are operating effectively in core-businesses,” said Hoa, adding that it would  equitise several other affiliates to reduce holdings at the market’s convenience while trimming down stakes at some trade and service affiliates.

Meanwhile, PetroVietnam stated it would only maintain dominant stakes (51 per cent) at big affiliates involving strategic products which have significant effects on the economy and those of its core business.

The group would also reduce stakes in such listed firms as the PetroVietnam Construction Company (PVX), and PetroVietnam Chemical Products and Digging Oil company (DMC) to 36 per cent. PetroVietnam’s current stake in PVX is 41 per cent. The group will also cut its stake in PetroVietnam Insurance Company (PVI) to 25 per cent by 2015.

A senior PetroVietnam official said the restructuring and stake reduction plan was made and approved by the government in 2009.

Vinaconex’s divestment has been slow. The construction corporation targeted to restructure 34 affiliates during 2009-2010, but only eight were completed in 2009 and five in 2010.

Song Da Group now holds 50 per cent stakes at 28 affiliates and 100 per cent stakes in four companies such as Lilama and COMA Licogi. “We do not plan to reduce stakes in these firms as they are operating effectively within our core business field, the construction sector” said Le Van Que, Song Da group’s chairman.