Transport Ministry divests from 8 firms

The Ministry of Transport has handed over its stake in eight Vietnam Inland Waterway Administration enterprises to the State Capital Investment Corporation (SCIC).

These companies include inland waterway management and maintenance joint stock companies No 4, 7, 9, 11, 12, 13, 14 and 15 under the Vietnam Inland Waterway Administration. They have been all equitised and have begun to operate as a joint stock company since early 2015.

Following the Government directives to socialise public service units, the Ministry of Transport started equitisation of 10 inland waterway maintenance companies in 2014.

According to Vu Anh Minh, director of the ministry's Enterprise Development Department, the State ownership transfer to SCIC is aimed to separate the functions of State ownership and management and to enable enterprises to participate in the tenders for provision of public services.

Operating since August 2006, SCIC represents State capital interests in enterprises and invests in key sectors and essential industries to enhance the efficiency of State capital utilisation. It is currently managing a large portfolio of over 500 enterprises in various sectors.

At the handover ceremony on Monday, Hoang Nguyen Hoc, deputy general director of SCIC said all of these eight enterprises performed effectively without financial problems. SCIC would co-operate with the ministry and authorities to manage State capital in enterprises and boost the corporate management to enhance the business value.

"The capital value of these enterprises is not large, but this transfer has great significance that shows the determination of the ministry and enterprises in implementing the State-owned enterprise restructuring policy," Hoc said.

These eight enterprises have an average charter capital of nearly VND8.7 billion (US$390,000) per company. State stakes make up an average of 51-52 per cent of a company's charter capital. After the transfer, these businesses will continue to perform under the direction of the Ministry of Transport with regard to the State management.