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[February 2002]
Ambitious Plans for Equitisation at Viglacera
VNS reports that The Viet Nam Glass and Ceramic Corporation (Viglacera) will equitise around one-third of its member companies in 2002 under a plan approved by the Vietnamese Ministry of Construction. The corporation envisages equitisation as the first step towards affirming and strengthening its position as the leading construction materials producer in the country.The Thach Ban Company, the Xuan Hoa, Huu Hung and Ha Long sanitaryware companies, Thang Long Ceramic Tiles Company, Viet Tri Porcelain Company, and the Ha Noi Ceramic Tile & Brake Pad Company are all scheduled for equitisation in the coming year.
The most important goal in the equitisation process is to diversify the forms of ownership and attract investment to implement long-term strategies, said Tran Dinh The, Chairman of Viglacera's management board.
The equitised member companies of other State-owned corporations in Vietnam generally have an annual turnover of at least VND 20 billion, says VNS, and earn an average profit of 15% per year. Each company employs about 200 workers.
Reportedly, Viglacera plans to adopt the parent-subsidiary model, under which there will be a mix of wholly State-owned, equitised, limited and joint venture companies. The corporation will play the role of parent company and will continue to hold stock in its member companies.
Two Viglacera member companies - the Thach Ban Company and Cau Xay Factory - have already been equitised and are said to be returning after-profits in the 20% to 25% region.
ENDS