VietNamNet Bridge – The Vietnam National Shipping Lines (Vinalines) did not want to sell Quang Ninh Port because it could bring money, though the profits are not that high. However, the government has decided to withdraw all of its capital from the port.

 

Soon after the government released a decision on selling Quang Ninh Port in late 2014, T&T Group sent a dispatch to Vinalines, which now runs the port, and the Ministry of Transport (MOT), the watchdog agency, saying that it wishes to take over the port.

T&T, an economic group which invests capital in many business fields, from industries to finance, from real estate to import/export, is a familiar name in business circles. 

T&T, when expressing its willingness to buy Quang Ninh Port, also sent documents about the group’s financial situation to prove that buying a business for VND500 billion was within reach of the company, which has stockholder equity of VND2 trillion.

Sources said the buyer of Quang Ninh Port must meet certain requirements. For example, it should be a 100 percent domestically owned enterprise and it must commit to continue providing port services. 

It must have a healthy financial situation, good corporate governance and preferably a business field relating to import/export. More importantly, it must not transfer the port to others within five years.

All these requirements can be satisfied by T&T.

MOT does not prohibit the new investor from cooperating with foreign investors to develop the port. 

Under WTO commitments, the foreign-ownership ratio in 2014 was raised in businesses in logistics services, freight & forwarding and activities related to waterways transport.

The Quang Ninh Port, the second largest port in the north, is located in an advantageous position, in the center of the Gulf of Tonkin, the gateway in the North to the East Sea. Imports from the northwest and northeast to China all have to go through the port. 

The Quang Ninh port now can receive ships with a tonnage of 40,000 tons. It is estimated that 6-7 million tons of goods go through the port every year.

Quang Ninh was valued at VND622 billion, not including the land-use right value, when it was equitized seven months ago. 

However, this is not what the buyer wants most from Quang Ninh. For infrastructure developers, the right to lease land for long term and at low rent is the most valuable asset.

A finance expert noted that Quang Ninh’s finance report is “clean”. It has big assets, but low debts, of VND119 billion, while its stockholder equity is VND490 billion.

TBKTSG