Farmers harvest coffee in the Central Highlands province of Dak Lak (Photo: VNA)
Hanoi - The Vietnam National Coffee Corporation (Vinacafe) will be equitised in 2017, following a directive of the government on restructuring the HCM City-based company.
Prime Minister Nguyen Tan Dung said the State will retain a stake of 51 percent in the company after it is equitised.
Eighteen subsidiaries, where Vinacafe owns the entire equity, will be equitised in 2016.
The subsidiaries are: Viet Duc Coffee, Viet Thang Coffee, Ea Sim Coffee, and Ea Tieu Coffee, in addition to Coffee No 715B, D'rao Coffee, Coffee No 49, and Coffee No 52.
The other subsidiaries are Coffee No 716, Coffee No 720, Coffee No 721, and Ia Blan Coffee, apart from Cofee No 705, Coffee Ia Grai, Coffee No 704, and Coffee No 731. Coffee No 734 and Dak Nong Coffee complete the list of eighteen subsidiaries.
Vinacafe will maintain 51 percent stakes in these firms after they are equitised.
Next year, three other Vinacafe affiliates, including Coffee No 715A, Coffee No 715C and Coffee Ea Ktur, will be changed from single-member limited companies into entities with two members or more.
This process is aimed at attracting investors to develop material areas and promoting the role of local residents in the processing and market development phases.
Ea Ba Coffee, Ia Cham Coffee, and Ea Tul Coffee, the other affiliates of the National Coffee Corporation, are to be dissolved in 2016.
The Prime Minister asked the Ministry of Agriculture and Rural Development to be responsible for the reorganisation of the companies, and to select partners needed in this process in conformity with the current laws.
Any partners, if selected, must undertake to maintain and develop the brand names of the existing firms, and guarantee to use lands with the right purpose approved by the authorities.
The ministry was tasked to build plans to manage the sites of the dissolving units, in accordance with land laws. Following Decision No 2101/QD-TTg, which the Prime Minister issued in 2012 to regulate the restructuring of Vinacafe between 2011 and 2015, Vinacafe's centre for hybrid rice seed production and Vinacafe Da Nang JSC, in which the national coffee firm holds a controlling stake, will also be dissolved.
Vinacafe is also to withdraw its entire 12.58 percent stake from Vinacafe Bien Hoa JSC, with a share purchase priority given to domestic investors.-VNA