Auto maker in good shape as share purchase looms.
The Vietnam Motors Industry Corporation (Vinamotor) has reported a strong increase in 2014 profits. According to the corporation's financial report it earned VND65 billion ($3 million) in profits in 2014, which was 590 per cent higher than its target and a 591 per cent increase against 2013.
The announcement of the results comes as the Sacom Investment and the Development Joint Stock Company (Sacom) proposed the Ministry of Transport (MoT) allow it to purchase all of the State-owned capital in Vinamotor, or 85.58 million shares, equal to 97.7 per cent of the corporation's registered capital.
A representative from Vinamotor told local media that most of the profits stemmed from the manufacture of buses with 29 seats or more and trucks produced through a joint venture with Hyundai, which have a market share of 50 per cent in Vietnam.
The figures may draw added investor attention after the government offered to sell the State-owned shares in the corporation a month ago. There are at least three buyers hoping to secure a slice, including Sacom, which specializes in producing copper cables, fiber optic cables, and magnetic wire.