At a working session with the ministry last week, vice chairman of Khanh Hoa Province Le Duc Vinh said after taking over the port, the province would upgrade it into a modern port but still ensure the interests of employees.

Nha Trang Port currently grapples with low cargo throughput which has made incomes of employees drop and benefits of shareholders unsecured. Therefore, the port is expected to improve operations after the province takes over it.

Nguyen Chien Thang, chairman of Khanh Hoa Province, said Nha Trang Port would be developed into a tourist port to handle international cruise ships and be home to a marina as outlined in line with development orientations for Nha Trang City in the central province.

To acquire the management right of Nha Trang Port, Khanh Hoa Province has had to pay Vinalines VND85 billion - the amount Vinalines has invested in the port. Thang said the province has agreed to sell shares worth VND85 billion at Nha Trang Port to Vinpearl and will continue issuing more shares to investors after the port is transferred to the province.

According to Nha Trang Port One Member Company’s announcement to sell shares last April, the value of the port after equitization is estimated at VND245.4 billion, with the State holding VND184 billion (75%), nearly 22.7% of its shares worth VND55.6 billion to be sold to investors via an auction and the rest to employees. However, the share auction failed at that time.

In 2012, Khanh Hoa Province proposed a plan to take over Nha Trang Port from Vinalines and turn it into an international tourist port, but the proposal was turned down by the Government. According to a restructuring scheme for Vinalines, it holds a 75% stake at Nha Trang Port.

At a meeting with Prime Minister Nguyen Tan Dung in April this year, Khanh Hoa repeated its proposal and got the nod from the Prime Minister. The Ministry of Transport and Vinalines were assigned to work with the province over the future of the port.