Vietnam’s state-owned Vietnam National Shipping Lines (Vinalines) has made plans to divest capital from a total of 13 member companies this year as it continues to streamline its business.
Under the plan, the group will reduce its ownership in six businesses and divest all of its capital from seven others.
Vinalines forecasted that its consolidated revenue this year will decrease by 14.5 percent from 2019 to about $444.2m due to the liquidation of vessels and impact of its shrunken market share following the implementation of its divestment plan.
The company has been optimising its business structure in order to focus on its core business, having reduced the number of its subsidiaries of 73 to 35 since 2013 and large amounts of debt through divestment of poorly performing units.
The Vietnamese government has been pushing ahead with a privatisation programme across many state-owned entities in recent years to boost its coffers as well as improve efficiency at many companies.