Construction major Vinaconex divests completely from Van Ninh international port investor

Vinaconex, a leading construction company in Vietnam, says it has completed the divestment of its entire 40% stake in the Van Ninh International Port JSC.

The firm did not disclose either the transaction value or the buyer’s identity in its announcement.

According to its Q1/2024 report, as of March 31, 2024, Vinaconex, listed on the Ho Chi Minh Stock Exchange as VCG, owned 40% of shares in Van Ninh International Port JSC, equivalent to a capital contribution of more than VND198 billion ($7.8 million).

On May 22, Vinaconex's board of directors approved a plan to sell all two million shares that it held in the port investor.

Van Ninh International Port JSC is the investor for the first phase of the Van Ninh General Port project, which covers nearly 83 hectares in Van Ninh commune, Mong Cai town, Quang Ninh province. Total investment in phase one is estimated at VND2,200 billion ($86.4 million).

Initially, Van Ninh International Port had a charter capital of VND500 billion ($19.6 million), with Dong Duong Group holding a 65% stake, equivalent to VND325 billion ($12.8 million).

Two other founding shareholders of the project investor, Duong Van Thanh and Le Tuan Long, own 15% and 20% of the enterprise's equity, respectively.

Vinaconex decided to invest in the project in mid-September 2021, before implementation had begun, contributing 40% of the charter capital of Van Ninh International Port JSC.

As designed, the port will have a 500-meter long main wharf that can simultaneously accommodate two ships of up to 20,000 DWT or three ships of 10,000 DWT; and barges at the rear. It will have a warehouse area equipped with modern infrastructure to handle general and container goods. It will also have a CFS (container freight station) warehouse and a port operator.

The seaport is not only expected to be a domestic goods trans-shipment point but also serve as a gateway connecting China and other Northeast Asian countries with Vietnam and other ASEAN members, opening up opportunities for the Mong Cai border gate economic zone.

However, according to a report by the port’s investor, the project has encountered numerous difficulties in the implementation process including a lack of leveling materials and complex geological terrain. The climate in the project area was very harsh, with frequent big waves, strong winds, and strong water currents, the report said.

Checking the project’s progress on May 19, Quang Ninh Chairman Cao Tuong Huy said that the province considered the project a priority for sustainable development of its marine economy. Therefore, the project investor should coordinate closely with relevant agencies and expedite measures to remove roadblocks and speed up its progress, he said.

He also asked the provincial transport department to report on the project’s progress to the Ministry of Transport and promptly begin the work of dredging channels towards ensuring “synchronous exploitation when the port infrastructure is completed.”