Vietnamese Port Ownership Rules Relaxed

Reduced state holding in Vietnam’s major ports have been allowed after the country’s Prime Minister Nguy?n T?n D?ng agreed to a revision of the restructuring plan for the socio-economic development of the country.

As a result, national shipping company Vinalines can reduce its capital holding and retain between 50 and 65 percent of the chartered capital in ports such as Saigon Port, Can Tho Port, Nghe Tinh Port and Cam Ranh Port when these firms embark on restructuring, reports VietnamNet. Additionally, Nam Can Port and Khuyen Luong Port companies will have just 49 per cent of their chartered capital held by Vinalines.

The Ministry of Transport has also allowed other Vinalines member businesses to be restructured including the ship repair company Vinalines-Dong Do Limited, Ben Dinh-Sao Mai Port Development JSC and Vinalines’ maritime training college.

According to Vinalines general director Le Anh Son, a number of investors are already looking to buy stakes in five of the major seaports that Vinalines is putting on offer including Danang Port and Quang Ninh Port.

The Vietnam-Oman Investment JSC recently proposed buying a 20 percent stake in Haiphong port, and northern European businesses have expressed interest in investing elsewhere.

There have been calls for Vietnam to further spur investment by allowing at least 70 percent foreign shareholding in shipping and port investment projects.  

Vietnam’s liberalization plan undertaken since 2011 has helped economic development. The country recorded a trade surplus of $2 billion in 2014 according to the General Statistics Office. This is the third consecutive year of surpluses with a surplus of $280 million in 2012 and over $860 million in 2013.

The Vietnamese stock market reached 32nd place among the world’s 51 best-performing stock markets in 2014 according to US-based Bespoke Investment Group.