In mid March 2013, the Vietnam National Shipping Lines (Vinalines) decided that Quy Nhon would be the first port of Vinalines’ system to be equitized. According to Vinalines’ General Director Nguyen Canh Viet, after the equization, the state would hold 75 percent of Quy Nhon’s stakes.

Nguyen Huu Phuc, General Director of the Quy Nhon Port, said the procedures would be fulfilled prior to June 30, 2013, so that the port would become operational as a joint stock company from July 1, 2013.

However, Phuc admitted that too many things still need to be done during the equitization process. It’s very difficult to valuate enterprises and deal with the redundant workers.

Agreeing with Viet, Deputy General Director of the Hai Phong Port Bui Chien Thang said it will take much time to valuate the enterprise’s assets and strike a balance for the ODA (official development assistance) funded projects, while the enterprise has not much more time.

The Saigon, Quang Ninh and Da Nang Port would have more time to fulfill the works, because their deadline is 2014. However, Nguyen Ngoc Toi from the Saigon Port also complained that it’s really a complicated work to assess such a big port like Saigon. Meanwhile, the Saigon Port would have to relocate to the Hiep Phuoc area during the equitization.

According to Le Cong Minh, Chair of the Board of Directors of the Saigon Port Company Ltd, the equitization process would begin in June 2014, while the state would still hold 75 percent of the chartered capital after the equitization.

Equitizing the first class ports is believed to be a strong measure to diversify the investment resources for the sea port system. This would allow the state to reduce the investments in the sea ports to reserve capital for the more important fields.

However, Minh admitted that he still cannot assess the opportunities and the development strategies after the equitization, because no port equitization had occurred in the past for reference.

In principle, in order to obtain success in the equitization, the ports need to find the partners who accept to buy 25 or 49 percent of stakes.

“We are seeking buyers, but we have not found any yet,” Minh said.

Meanwhile, Thang said that under the Vinalines restructuring plan, which has been approved by the Prime Minister, about 10 first class ports and its subsidiaries would go equitized by 2014. This means that trillions of dong worth of the state’s capital would be put on sale. Therefore, it’s really very difficult to find the buyers for such a huge sum of stakes.

Ho Kim Lan, Secretary General of the Vietnam Sea Port Association, thinks that no need to force the ports to get equitized by 2014, while it would be better to draw up a reasonable roadmap for the equitization.

Lan cited the success of the equitization of Doan Xa port, belonging to the Hai Phong Port, as an example to prove that equitizing port is a good idea.

Prior to 2001, Doan Xa never got more than VND8 billion in turnover a year. Meanwhile, its turnover jumped to VND40 billion in 2004, or 3 years after the equitization.

However, Lan said that Doan Xa’s equitization succeeded because it was equitized in the favorable conditions, where the national economy saw a high growth rate.