State-owned Vietnam National Textile and Garment Group, Vinatex, plans to sell shares to the public this year in a move that an official says will help increase its competitiveness.
The equitization plan cannot be delayed, otherwise the group will not be able to seize the chance to expand and become more competitive, Le Tien Truong, deputy general director of the state-owned group, said in an interview with the Vietnam News Agency.
Truong, however, admitted that selling shares within a 12-month timeframe would not be an easy task for Vinatex.
He said that 95 percent of the group's assets have been evaluated.
The group's investment in non-core activities now account for VND200 billion (US$9.6 million), or 7 percent of its capital. Vinatex will completely withdraw from these activities in 2012, Truong said.
Vinatex, the country's leading textile and clothing producer, will continue to focus on higher end market segments in 2012, he added.
Textile and garments accounted for more than 30 percent of Vietnam's total exports last year. Despite a heavy dependence on imported materials, the sector managed to post a trade surplus of around US$6.7 billion in 2011.
Truong said while market prospects for 2012 are not really positive, the sector is targeting a trade surplus of $7 billion.
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