Vinachem restructuring scheme passed

The project targets to raise competence, production and business efficiency, and competitiveness of the Group. 

Under the master scheme, Vinachem is responsible for production and business of basic chemicals, mining exploration and processing industries, production of fertilizers and plant protection products. 

By 2020, the group will have a total charter capital of about VND 20 trillion. Vinachem is in charge of building a plan and roadmap on equitization in the 2018-2019 period. After the equitization, the State will hold from over 50% to under 65% of charter capital.

Regarding the scheme on restructuring Vinachem's member companies in the period of 2017-2020, the Group will divest from the Viet Nam Institute of Industrial Chemistry and restructure the College of Chemical Industry.

Vinachem will withdraw all its capital from companies such as Ha Bac Nitrogenous Fertilizer and Chemical JSC, DAP-Vinachem JSC, DAP No. 2 – Vinachem JSC and Ninh Bình Nitrogenous Fertilizer and Chemical Co., Ltd in case these companies do business profitably and effectively.

The Group has also divested from Viet Nam Apatit Co., Ltd. in the 2017-2018 period with a shareholding proportion of over 65%.

In addition, Vinachem will hold from over 50% to less than 65% of charter capital of seven companies including the Industrial Gases and Welding Electrode JSC, Viet Tri Chemicals JSC, the Southern Basic Chemicals JSC, Lam Thao Fertilizers and Chemicals JSC, Van Dien Fused Magnesium Phosphate JSC, Ninh Binh Phosphate Fertilizer JSC and Vietnam Pesticide JSC.

Vinachem will hold less than 50% of charter capital in nine companies, namely Southern Rubber Industry JSC, Da Nang Rubber JSC, Sao Vang Rubber JSC, Binh Dien Fertilizers JSC, Can Tho Fertilizers and Chemicals JSC, the Southern Fertilizers JSC, NET Detergent JSC, LIX Detergent JSC and Dry Cell and Storage Battery JSC.

Vinachem will withdraw its entire capital from the following 15 companies, namely Hanoi Soap JSC, Vinh Phu Battery JSC, Tia Sang Battery JSC, Inoue Rubber Viet Nam Co., Ltd, TPC VINA Plastic and Chemical Co., Ltd, South Chemicals Import – Export JSC, Ha Noi Synthetic Paint JSC, Duc Giang Chemicals and Detergent Powder JSC, Hanoi Batteries JSC, Viet Nam Chemical Import & Export JSC, Ninh Binh Fertilizer Port JSC, Tay Ninh Chemical Industry JSC, Da Nang Chemicals Industry JSC, Mine Construction and Investment Consultancy JSC and Chemical Engineering Joint Stock Corporation./. 

By Kim Anh