This was decided at a conference on Vinalines' equitisation plan held in Ha Noi last week, in which leaders from the ministry and Vinalines participated.

Vinalines CEO Le Anh Son said the corporation's chartered capital was VND9.1 trillion (US$452 million). Its equitisation would include the sale of part of the State-owned capital and issuance of corporate bonds to raise chartered capital.

The corporation's chartered capital will include 36 per cent of the stake owned by the State, 30 per cent for strategic partners, 33.75 per cent for external investors and the remaining percentage of shares will be for Vinalines' workers.

After equitisation this year, Vinalines will dissolve or declare bankruptcy for the firms which are ineffectively operating in finance or are not suitable for the corporation's development strategy.

It will also divest its investment capital from all 11 firms, including the port companies of Quy Nhon, Quang Ninh and Doan Xa, Southern Container JSC, Hai Au Sea Transport Company, Thu Do Securities Company and Van Phong Investment and Development Company.

As scheduled, Vinalines will also launch its initial public offering during the first quarter of this year. The starting price will be VND10,000 per share.

Last December, a corporation official had told Viet Nam News that the corporation was valued at more than VND21 trillion ($1 billion). More than VND8.3 trillion ($395.23 million) of the amount was State-owned capital.

CEO Son told baogiaothong.vn that Vinalines would focus on three main areas: sea transport, sea ports and maritime services after equitisation. The fleet of vessels will be restructured and modernised, and will use vessels with a tonnage of between 80,000 and 150,000 deadweight tonnage (DWT) and container ships with a capacity of 600 to 2,000 twenty-foot equivalent unit (TEU), which accounted 20 per cent of the domestic market share.

The corporation will also aim for investment in key sea ports and logistics infrastructure, connecting goods distribution centres nationwide and supply door-to-door services to customers.

"By 2019, Vinalines will resolve all debt and balance its capital flows. By that time, the financial situation will be clearer, and banks will have more confidence in the corporation's operation," said Son.

Deputy Minister of Transport Nguyen Hong Truong said Vinalines' equitisation plan was not only to maintain State-owned capital at 36 per cent, but would more importantly solve the existing problems and help in the continued development of corporation.

Truong has also directed the corporation to submit to the Prime Minister its equitisation plan before March 31 and hold its first meeting of shareholders this year. 

VNS