SCIC receives the transfer of state ownership rights at Vinatex from the Ministry of Industry and Trade

SCIC receives the transfer of state ownership rights at Vinatex

from the Ministry of Industry and Trade

The Ministry of Industry and Trade (MOIT) and State Capital Investment Corporation (SCIC) held a ceremony to transfer the state ownership rights at Vietnam National Textile and Garment Group (Vinatex) from MOIT to SCIC on November 23, 2018.

According to the signed memorandum of handover, the value of state capital at Vinatex transferred to SCIC is 2,674,381 million VND (equivalent to USD 114.6 million), accounting for 53.49% of Vinatex's charter capital. Vinatex completed the equitization process and has been operating as a joint stock company since January 29, 2015.

Speaking at the ceremony, MOIT's representative said that relevant tasks between MOIT and SCIC during the transfer were clarified in the spirit of ensuring no interruption to Vinatex's business actitivies and complying with the current state regulations. MOIT will coordinate with SCIC and request SCIC to actively support Vinatex’s growth thereby increasing the value of state capital at the enterprise.

SCIC’s Leader expresses appreciation to MOIT’s Leader for drastically directing the finalization of handover documents and coordinating with SCIC to complete the transfer procedures. MOIT has actively cooperated with SCIC to complete transfer procedures and is also one of the line ministries that have proactively taken lead in handing over to-be-transferred enterprises to SCIC. Upon receiving the state ownership transfer at Vinatex, SCIC will coordinate with MOIT to apply advanced corporate governance and state capital management as well as to raise Vinatex's value.

The transfer of state ownership at Vinatex demonstrates the determination of MOIT, SCIC and the enterprise itself in implementing the Government’s resolution regarding the enterprise restructuring.

Following Vinatex's transfer, MOIT shall actively direct the finalization of the remaining issues related to the handover documents of other 5 enterprises under the its management in order to transfer the state ownership at these enterprises to SCIC in accordance with relevant state regulations.

According to the Decision no.1232/QD-TTg of the Prime Minister dated August 17, 2017 regarding the list of SOEs subject to divestment in the period of 2017-2020, it is decided by the Prime Minister that line ministries and Provincial People’s Committees shall transfer to SCIC the state ownership rights at 62 enterprises currently owned by 6 line ministries and 16 local authorities with the total state capital value of over 11,200 billion VND (equivalent to USD 478 million and accounting for 65.3% of charter capital of the to-be-transferred enterprises) for SCIC to execute the sale of state capital. Amongst the above-mentioned enterprises, there are 7 enterprises from MOIT need to be transferred (in 2017, MOIT transferred 1 enterprise, and in 2018, MOIT transferred Vinatex). Since its establishment in 2006, SCIC has received the handover of 55 enterprises from MOIT and Ministry of Trade (when it has not been merged with the Ministry of Industry).