State oil and gas group PetroVietnam said it has withdrawn from a skyscaper project in Hanoi as part of its plan to divest from sectors outside its main business scope.
PetroVietnam will no longer invest in the 102-story PVN Tower, slated to become the tallest skyscraper in Vietnam, news website VnExpress reported Tuesday, citing Chairman Phung Dinh Thuc.
The decision came after the government ordered state-owned enterprises to gradually withdraw from non-core businesses in sectors like securities, finance and real estate, the report said.
According to VnExpress, PetroVietnam Construction JSC, a subsidiary of PetroVietnam, is the developer of the project. A source from the company said it is seeking investment from private and foreign investors and will not use state capital or PetroVietnam's funds to finance the development.
The source also said construction was scheduled to start this year, but the plan may need to be revised due to difficult market conditions.
PetroVietnam Construction in March announced it has adjusted the height of the 102-story PVN Tower to 79 stories. The adjustment allowed the company to cut its investment projection to US$600 million from the original estimate of $1 billion.
The government said in a report on its website that PetroVietnam posted total revenues of VND675.3 trillion ($32.1 billion) last year, up 41.2 percent from 2010. Oil businesses accounted for 30 percent of the revenue.
PetroVietnam will restructure its business this year, targetting a revenue of VND660 trillion, the government said.
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