Government to hold extraordinary meeting on restructuring of PetroVietnam and Vinachem

This week, the government will hold a meeting to discuss on restructuring plans of PetroVietnam Oil and Gas Group (PetroVietnam) and Vietnam National Chemical Group (Vinachem).

Last month, the restructuring plan of PetroVietnam was unveiled. Accordingly PetroVietnam will focus on five business lines including oil and gas exploration, oil refining, gas industry, the electricity industry and high quality oil and gas services. PetroVietnam will set up a plan for divestment till 2015 with total capital of five trillion dong for other business lines.

However, PetroVietnam still proposed to the government to maintain a suitable amount of capital in PetroVietnam Insurance Joint Stock Corporation (PVI) and PetroVietnam Finance Corporation (PVFC).

According to Phung Dinh Thuc, Chair of PetroVietnam’s board of members, PVI and PVFC are two big units of the group which has been existed for a long time and play an important part in PetroVietnam’s development.

Meanwhile, Vinachem’s restructuring is regarded as a particularly concerned problem in the future.

Vinachem was formed in 2010 basing on Vietnam Chemical Corporation reorganisation with 8 trillion dong of total chartered capital. It owns 7 subsidiaries with 100 percent of chartered capital, 21 subsidiaries with 50 percent of total chartered capital after equitisation and 16 subsidiaries with under 50 percent of chartered capital.

On July 17, 2012, prime minister signed Decision issuance no 929/QD-TTg approving State enterprise restructuring plans with the main target of State groups and corporations in 2011 – 2015 period.

This project is built by the Ministry of Finance (MoF) under the direction of the government and is an important part of the overall economic restructuring plan.

 

 

Category: Business