Saigon Port seeks shareholder approval to work with Vingroup on the project.
The Equitization Steering Committee of Sai Gon Port Co. will hold the first shareholder meeting establishing the Saigon Port Joint Stock Company on September 28.
In the business plan to be submitted to the meeting, Saigon Port expresses a desire to receive shareholder approval to cooperate with Vingroup to establish the Vien Dong Pearl Urban Development and Investment Co. to change the land use at Nha Rong - Khanh Hoi Port in District 4, Ho Chi Minh City, building an urban area. Saigon Port will hold 26 per cent of the new company’s charter capital and total investment in the project will be over VND11 trillion ($488.9 million). Vien Dong Pearl aims to sell real estate products in the urban area from 2018 and offer a dividend to shareholders of 10 per cent each year.
Regarding business plans after equitization, the Nha Rong - Khanh Hoi Port will reduce its land use in preparation for relocation in the middle of next year. The company will restructure a number of deep-water ports to secure capital for investment and development. It will also complete the construction of Saigon - Hiep Phuoc Port in Ho Chi Minh City and put it into operation in 2016.
In the fourth quarter of this year the company aims to record VND291.8 billion ($12.9 million) in revenue and VND16.7 billion ($742,000) in after-tax profit.