Deputy Prime Minister Vu Van Ninh has directed the Transport Ministryto make alterations to a plan to equitise Giao Thong (Transport)Hospital before seeking the Prime Minister's approval.
Thedirective follows suggestions by relevant ministries and agencies toimprove the plan, which was proposed by the Transport Ministry threemonths ago.
Under the plan, the hospital will sell a part ofState-owned capital contribution and issue bonds to increase its chartercapital.
The hospital's estimated worth is 158 billion VND (7.4million USD), which includes 86 percent State capital. After itsequitisation, it is expected to have a charter capital of 168 billionVND (7.8 million USD), equivalent to 16.8 million shares.
In theinitial public offering (IPO), the State will hold 30 percent of thehospital's charter capital, while the hospital's staff will have 8.7percent. Some 30 percent will be for strategic investors and theremainder 31.3 percent will be auctioned.
However, the FinanceMinistry has observed that since the hospital operates in the field ofhealth care and medical treatment, it is not necessary to have strategicinvestors own capital worth at least 1 trillion VND (46 million USD).
Arepresentative of the Transport Ministry told Dau Tu (VietnamInvestment Review) that the Finance Ministry's suggestion to providemore opportunities for investors to become strategic investors will beaccepted.
Regarding the rate of charter capital held by theState, Deputy Minister of Planning and Investment Dang Huy Dong saidunder current regulations, there is no need for the State to holdcapital at enterprises in the field of health care.
Also, underthe Enterprise Law issued in 2005 and 2014, holding an enterprise's 30percent charter capital will not have much meaning in terms of votingfor or against the important issues of the enterprise, he said.
TheMinistry of Planning and Investment has also proposed the TransportMinistry to reconsider a proposal to choose T&T Group as a strategicinvestor among enterprises registered during the IPO.
Domesticfirms Vingroup, T&T Group, and property developer FLC Group, inaddition to two foreign investors from Malaysia and Singapore haveregistered with the Transport Ministry to become the strategic investorsof the hospital.
The Transport Ministry should instruct thehospital to sell shares to strategic investors through an auction amonginvestors to protect the highest interests of both State andenterprises, Deputy Minister Dong noted.
Meanwhile, the Planningand Investment Ministry has disapproved the Transport Ministry'sproposal to allocate funds [around 25 billion VND (1.15 million USD) peryear] from the State budget to pay the hospital's workers for threeyears after its equitisation, saying it did not meet the Enterprise Lawand will lead to unfair competition among businesses.
However,the Health Ministry has supported the proposal, citing it is essentialto continue providing funds for the hospital after its equitisation toprevent it from changing its investment plan and cutting down on itscheckup and treatment services.
Giao Thong Hospital, which is a21,200sq.m. general hospital located at Chua Lang street, Dong Dadistrict, recently opened a health-care building on a total investmentof 15 million USD.
The seven-storey building, built on nearly17,000sq.m., has been equipped with advanced health-care facilities and200 beds. It was built on the capital from the OPEC Fund forInternational Development's official development assistance.
The hospital will be the first public health-care centre in Vietnam to complete its equitisation plan.
TheTransport Ministry has said it will soon finalise the hospital'sequitisation plan to submit it to the Prime Minister for approval andcarry out its IPO in the third quarter of this year as scheduled.-VNA
Thedirective follows suggestions by relevant ministries and agencies toimprove the plan, which was proposed by the Transport Ministry threemonths ago.
Under the plan, the hospital will sell a part ofState-owned capital contribution and issue bonds to increase its chartercapital.
The hospital's estimated worth is 158 billion VND (7.4million USD), which includes 86 percent State capital. After itsequitisation, it is expected to have a charter capital of 168 billionVND (7.8 million USD), equivalent to 16.8 million shares.
In theinitial public offering (IPO), the State will hold 30 percent of thehospital's charter capital, while the hospital's staff will have 8.7percent. Some 30 percent will be for strategic investors and theremainder 31.3 percent will be auctioned.
However, the FinanceMinistry has observed that since the hospital operates in the field ofhealth care and medical treatment, it is not necessary to have strategicinvestors own capital worth at least 1 trillion VND (46 million USD).
Arepresentative of the Transport Ministry told Dau Tu (VietnamInvestment Review) that the Finance Ministry's suggestion to providemore opportunities for investors to become strategic investors will beaccepted.
Regarding the rate of charter capital held by theState, Deputy Minister of Planning and Investment Dang Huy Dong saidunder current regulations, there is no need for the State to holdcapital at enterprises in the field of health care.
Also, underthe Enterprise Law issued in 2005 and 2014, holding an enterprise's 30percent charter capital will not have much meaning in terms of votingfor or against the important issues of the enterprise, he said.
TheMinistry of Planning and Investment has also proposed the TransportMinistry to reconsider a proposal to choose T&T Group as a strategicinvestor among enterprises registered during the IPO.
Domesticfirms Vingroup, T&T Group, and property developer FLC Group, inaddition to two foreign investors from Malaysia and Singapore haveregistered with the Transport Ministry to become the strategic investorsof the hospital.
The Transport Ministry should instruct thehospital to sell shares to strategic investors through an auction amonginvestors to protect the highest interests of both State andenterprises, Deputy Minister Dong noted.
Meanwhile, the Planningand Investment Ministry has disapproved the Transport Ministry'sproposal to allocate funds [around 25 billion VND (1.15 million USD) peryear] from the State budget to pay the hospital's workers for threeyears after its equitisation, saying it did not meet the Enterprise Lawand will lead to unfair competition among businesses.
However,the Health Ministry has supported the proposal, citing it is essentialto continue providing funds for the hospital after its equitisation toprevent it from changing its investment plan and cutting down on itscheckup and treatment services.
Giao Thong Hospital, which is a21,200sq.m. general hospital located at Chua Lang street, Dong Dadistrict, recently opened a health-care building on a total investmentof 15 million USD.
The seven-storey building, built on nearly17,000sq.m., has been equipped with advanced health-care facilities and200 beds. It was built on the capital from the OPEC Fund forInternational Development's official development assistance.
The hospital will be the first public health-care centre in Vietnam to complete its equitisation plan.
TheTransport Ministry has said it will soon finalise the hospital'sequitisation plan to submit it to the Prime Minister for approval andcarry out its IPO in the third quarter of this year as scheduled.-VNA
