Vinatex to Privatize 13 Affiliates by Next Year

The state-owned Vietnam National Textile and Garment Group (Vinatex) will privatize all its wholly state-owned affiliates in 2006-2007, said the firm chairman Le Quoc An.

 

An said last weekend that Vinatex would hold the controlling stake in its 10 unit companies and privatize some 13 companies 100 per cent stake owned by the State in next two years, he said. By 2008, the parent Vinatex will also be equitized in order to turn itself into a multi-ownership group, he said.

 

Privatization would open up channels for Vinatex to mobilize capital and also help its subsidiaries to operate more efficiently. Some companies would be listed on the stock market this year, such as the Nha Be Garment and Viet Tien Garment companies, An said.

 

The textile and garment giant is looking to raise VND10 trillion (US$625 million) for its development plan by 2010. Vietnam’s textile exports crossed US$2 billion in the first five months, with Vinatex accounting for more than 20 per cent.

 

Under the trade agreement signed with the US, Vietnam will have to remove all subsidiaries to the garment sector when the country joins the WTO.