Vinaconex to divest from Van Ninh General Port in Quang Ninh

May 24, 2024 | 20:00

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Vietnam Construction and Import - Export Joint Stock Corporation (Vinaconex) plans to divest its stake in Van Ninh General Port in the northern province of Quang Ninh.

Vinaconex to divest from Van Ninh General Port in Quang Ninh

Vinaconex currently holds two million shares, equal to a 40 per cent stake in Van Ninh International Port JSC – the investor of the project. Vinaconex expects to complete the deal before June 20.

As one of four long-term growth-driving projects in Quang Ninh, with an area of around 83 hectares, the total investment of phase 1 is over VND2.24 trillion ($93.3 million). Van Ninh General Port is capable of receiving ships of up to 20,000DWT and functions as a focal point for Vietnam’s imports and exports from and to China.

Quang Ninh kicked off the first phase of the Van Ninh General Port project in 2021, with construction expected to have been completed this year. However, construction has seen setbacks due to a lack of materials.

Tran Khanh Duy, project management board deputy, Van Ninh International Port JSC, said, "The construction process is facing difficulties in terms of levelling materials and constructing the road to the port."

"We are urgently working with licensed mines to source materials for levelling. Although there is a contract signed in principle with the mine owners, at present they are not yet approved to provide materials to the project," Duy added.

Vinaconex decided to divest from the port project while it still showed positive financials from earlier this year.

The company reported first quarter revenue of VND2.65 trillion ($110.4 million), up 35 per cent on-year. VND1.35 trillion ($65.2 million) of which comes from construction activities and VND270 billion ($7.2 million) from the property sector.

Its total after-tax profit in the period was VND482 billion ($20.08 million), up 25-fold from last year.

By Oanh Nguyen

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