Vinalines continues to divest from unprofitable business operations

SGGP
The Vietnam National Shipping Lines (Vinalines) on February 19 said that it will divest from 13 member enterprises this year.

Vinalines continues to divest from unprofitable business operations

Of which, Vinalines will partly reduce its ownership in the Vietnam Ocean Shipping Joint Stock Company from 51 percent to 49 percent, in the Vinaship Joint Stock Company from 51 percent to 36 percent, in the Cai Lan Port Investment Joint Stock Company from 56.58 percent to 51 percent, and in the Transvina Limited Company from 56 percent to 51 percent.

At the same time, Vinalines will divest all its investments at other shipping enterprises, of which, the company is holding more than 98 percent stake in Vinalines Nha Trang Joint Stock Company.

With this divestment plan, along with the liquidation of ships and the impacts of a reduction in the market share of the temporary import and re-export services, the consolidated revenue of Vinalines is expected to reach VND10.31 trillion this year, a decrease of 14.5 percent compared to last year.

Therefore, during the process of restructuring, the number of enterprises of Vinalines has decreased from 73 to 35 enterprises. By divesting from loss-making member enterprises, Vinalines has cut its total liabilities from more than VND67.5 trillion before restructuring to more than VND17 trillion. 

By Minh Duy – Translated by Bao Nghi

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