Vietnam Textile and Garment Corp (Vinatex) on August 22 sent a proposal to the ministry of industry outlining its transformation into a parent company said a source at Vinatex.
Accordingly, Vinatex will work as a parent company to implement capital investment projects and provide services for member companies. Vinatex expects to become a leading conglomerate and a major rival in the South East Asian textile and garment market.
The conglomerate will make contributions of investors from all economic sectors at home and overseas, in which the state still holds the controlling equity. Member companies might be business partners, which sign contracts with Vinatex to use its brand names or prestige. The Vinatex conglomerate will work in many fields of business with focus on textile and garments.
The prime minister will establish a management board for the conglomerate and appoint its members. The management board will appoint a general director after the proxy of State equity agrees upon the selection process.
Vinatex now has 60 member companies, many of which are major parent companies; such as Viet Tien garment Co, Hanoi textile and garment Co, and the Phong textile Co.
According to the plan set by Vinatex, the conglomerate will hold controlling equity in 18 member companies and less than 50% of legal capital in 30 other companies.