Vietnam National Shipping Lines (Vinalines), a Vietnamese state-owned company, has sold its 51% stake in Vinalines Dinh Vu Port JSC to Viet Xuan Moi. Vinalines has already submitted the transaction to the Ministry of Transport for ratification. 

The deal, which includes a total of 10.2 million shares, gives a controlling stake in the port to Viet Xuan Moi. The transaction is expected to be closed for a total consideration of VND102 billion (US$4.5 million). 

Established in 2011, Vinalines Dinh Vu Port JSC is also owned by Hop Thanh Investment and Mineral JSC (24.27%), Nguyen Thi Thanh Nga (10%) and Loc Viet JSC (10%), the remaining stake being held by small shareholders. The port is located in Dinh Vu Industrial Zone. It is planned to have three ship docks with a capacity of 5.5 million tonnes per year.

Vinalines, which has been drowned in debts over the past few years, plans to use the funds from the transaction to pay off part of its debts.

The deal is part of Vinalines' plan to sell stakes in nine seaports around the country. The ports to be sold include Cai Lan in Quang Ninh, Transvina in Hai Phong, Khuyen Luong in Hanoi, Cam Ranh and Da Nang on the central coast, Nghe Tinh Port in Nghe An Province and Can Tho and Nam Can in Ca Mau.

Nguyen Canh Tinh, acting general director of Vinalines, commented:

“As there is an on-going trend to shift port activities from the Chua Ve area to Dinh Vu peninsula and the volume of goods passing through Dinh Vu is expected to rise steeply in the near future, Vinalines’s stake in Vinalines Dinh Vu should be valued at a lot higher than thebook value.”