Vinatex mulls performance plans

Hence, we hope our divestiture plans from investees will not be fraught with difficulties,” said Vinatex deputy director Le Tien Truong.

In fact, Vinatex’s total investment into non-core areas is around VND225 billion ($10.7 million) funneling into seven banks and one securities firm.

This sum made up 7 per cent of state capital portion owned by Vinatex and was mainly invested in the period before 2000 when Vinatex was a state-owned corporation.

At this point of time the group had finalised its VND30 billion ($1.4 million) divestiture from Asia Commercial Joint Stock Bank (ACB).

In 2012, the group will take back capital from six remaining banks. In respect to its holding in a securities firm, since Vinatex is a founding shareholder at Gia Quyen Securities Joint Stock Company, it takes certain time for the group to realise its divestiture plan from the securities firm under existing regulations.

According to a Vinatex representative, the group would do its utmost for capital withdrawal from non-core areas as soon as possible, but it also depended on the time for legal setup with relevant businesses pursuant to current laws.

Under Vinatex’s restructuring plan, divested capital would then be pumped into effectively running firms operating in textile, yarn and fibre, and export garment production areas. Projects active in these fields will be developed linking closely to textile-dyeing and fibre production zones.

Despite holding smallest state capital portion among state economic groups, Vinatex’s 2011 export value reached $2.4 billion, 14-fold more than its equity capital, according to Truong.
Its export surplus was $1.3 billion in 2011, 7.6-fold more than its equity capital. The group gave jobs to 120,000 labourers with monthly incomes averaging VND3.9 million ($186).

Vinatex set to achieve 14 per cent growth in 2012 export value while the textile and garment sector seeks to reap $15-16 billion in 2012 total export value, a 12-13 per cent jump on-year.