VIETNAM NATIONAL TEXTILE AND GARMENT GROUP EQUITISED
Asia Pulse via Yahoo!7 Finance
Wednesday August 16, 2014, 1:24 pm
HANOI, Aug 16 Asia Pulse – The Vietnam National Textile and Garment Group (Vinatex) has equitised 53 of its subsidiaries, reports deputy director Vu Duc Giang.
Capital for the programme had totalled VND1.2 trillion (US$75 million) and it was planned to have all the groups affiliates equitised by next year, he said.
The average yearly dividend paid by the equitised affiliates was 12 per cent.
But the Hung Long, Ho Guom, Nha Be, Phuong Dong companies had recorded average revenue growth of 20-50 per cent and paid a yearly dividend of 25 per cent.
The deputy director said the equitised affiliates had found it difficult to raise money from commercial banks because of cumbersome procedures.
In addition, many especially those in which the State had a majority holding were still managed in the way of old-style State-owned enterprises and lacked effective long-term strategies.
As a result, they had yet to make an initial public offering on the stock exchange.
Evaluation of land-use rights and trade marks also caused difficulties.
The deputy director said that although the Government had issued a decree for the treatment of workers made redundant by equitisation the necessary legal guides were still to be published. The delay had hampered equitisation because the textile and garment industry employed thousands of workers, he said.
The group would equitise five affiliates and five other subsidiaries and merge the well-performing Nha Be, Phong Phu, and Viet Tien by the end of this year, the deputy director said.
Vinatex also planned to equitise all 38 the garment super markets owned by its subsidiary, the Vinatex Fashion Company, and make it an independent retailing business chain.
Germanys Metro and Frances Big C had shown an interest in buying a stake in the fashion house.
Vinatex planned to reduce the States stake in 22 enterprises to between 10-58 per cent by November.
The States stake in Garment Chien Thang, Garment Thang Long, Machinery and Garment Hung Yen, Garment Ninh Binh and Woollen Products Ha Dong were companies also expected to be sold this year.
And Garment Factory No 10, Garment Nha Be and Garment Duc Giang would go public this year.
(VNA)
