The Prime Minister has asked economic groups to restructure themselves focusing on their own industries, ceasing investments in insurance, banking, real estate, securities, so as to become strong groups playing key role in the economy. Mr Le Tien Truong, Deputy Director General of Vietnam Textile Group (Vinatex) and Vice President of Vietnam Textile Association discussed with the press on the issue. Huong Ly reports.
How is Vinatex investment outside the sector and the withdrawal of capital from it?
The investment outside the sector is about 7 percent of Vinatex total capital, or some VND220 billion. It was the investment made before 2000 when the group was Vietnam Textile Corporation. Most of the investments were in banks and Gia Quyen Securities Company, and not in real estate. After three years (in 2012) the Group will withdraw capital from Gia Quyen Company. By December 31, 2011, we have withdrawn VND30 billion. In 2012, the Group will withdraw all investments outside the sector and it will be completed before 2013.
Do you have any difficulty in the withdrawal of capital?
In comparison with big economic groups, the investment outside the sector of Vinatex is very low, some 7 percent. Meanwhile in other groups, though the percentage may be low, the sum in reality is much bigger. Therefore, Vinatex has less difficulty in the withdrawal of capital. Nevertheless, the process depends on procedures regarding commercial banks and laws.
How will you use the withdrawn capital?
According to Vinatex restructuring plan, withdrawn capital will be allocated to enterprises of high efficiency and core industries such as yarn, textile and garments for export. Investment projects will be concentrated in areas of materials, yarn, and textile and dyeing. For garment, projects will be scattered and combined with poverty reduction programme.
It is reported that Vinatex will be equitized completely by 2012 in response to the policy of the government, can the process be on schedule?
The equitization of Vinatex units have been completed in the main, there remain only five more units: 8/3 Textile, Dong Phuong Textile, Dong Xuan Knit-wear, Vietnam Fashion & Trade, and another unit. The five companies are not big in size and not investing in multi-sectors. The equitization is almost completed in parent company with 95 percent of assets valued and defined in the equitization process of member companies. The value of parent company is precisely the shares of member companies already included in Upcom, without the need for further re-assessment. Though the remaining time for equitization is most pressing but can be completed. After the equitization, the Group can increase in size and competitiveness.
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