Transport firms look for the fast lane

October 03, 2012 | 17:12

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How to streamline leading transport sector businesses is becoming a vexed question.

The Ministry of Transport (MoT) has just submitted Document 7676/BGTVT-QLDN to the prime minister on reorganising transport sector leading businesses.

Accordingly, the document proposed the MoT exercise state ownership right towards four major corporations and groups Vinashin, Vietnam Railway Corporation, Vietnam Airlines and Vinalines which were founded by the prime minister.

“The move is to scale up role and responsibilities of the authority ministry towards businesses,” said MoT Minister Dinh La Thang.

Business shake-up plans of these four corporations and groups were appraised by the MoT and now source inputs from relevant ministries and sectors before submitting to the prime minister for approval, according to a representative from the Committee for Transport Sector Enterprises Renovation and Management.

The proposal is central in the proposed plan to reshuffle transport sector’s state-owned groups and corporations under which the state was proposed to continue holding 100 per cent chartered capital at eight groups and corporations whereas the MoT exercise state ownership right under decentralisation from the government.

These eight businesses are Vinashin, Vietnam Railway Corporation, Vietnam Air Transport Management Corporation, Vietnam Airports Corporation, Northern Vietnam Maritime Safety Corporation, Southern Vietnam Maritime Safety Corporation, Vietnam Expressway Corporation and Cuu Long Infrastructure Investment Development and Management Corporation.

Besides, the MoT proposed equitising 12 corporations during 2012-2015. In respect to who will take care of state ownership right at these 12 corporations the MoT presented two scenarios - the State Capital Investment Corporation or the MoT.

About the fate of transport sector’s construction corporations, Vietnam Waterway Construction Corporation general director Luu Dinh Tien assumed top target in restructuring these businesses would be striving to hike their chartered capital to about VND500 billion ($23.8 million) in late 2012 and around VND1 trillion ($47.6 million) by 2015, the deadline for parent companies to finalise shake-up plans.

Restructuring orientations of four leading groups and corporations founded by the prime minister:
* Vinashin: Just maintaining shipbuilding and repair businesses with development potential which will be operating as joint stock companies. In the near-term, the parent company will be wholly owned by the stat to govern investment capital into subsidiaries and affiliates.
* Vietnam Airlines: Strongly restructuring parent company and subsidiaries, priority given to parent company’s equitising plan. Subsidiaries will be turned into joint stock companies with minimal stake put into insurance, aviation fuel businesse and divesting from businesses staying outside aviation transport areas.
* Vinalines: Embarks on comprehensive restructure plan to help the business undergo difficulties in 2012-2013 period, achieve stable and balanced growth in 2014-2015, and create growth momentum for 2016-2020 period. Parent company must embark on equitising before 2015.
* Vietnam Railway Corporation: Founding two core businesses, one takes charge of managing and exploiting railway infrastructure under the model of a wholly state owned limited liability company and the other operating railway transport services under the model of a joint stock company.

By Anh Minh

vir.com.vn

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