Helios Global Logistics

Vietnam National Shipping Lines (Vinalines), the country's largest debt-wracked state owned carrier, has kicked off the privatisation process of the parent firm by inviting consultancy agencies to conduct the corporate valuation.

Vinalines aims to announce the result of the corporate valuation by the end of this September, paving the way for an initial public offering (IPO), the Dau Tu online newspaper reported.

Deputy transport minister Nguyen Hong Truong told local media earlier this month that the government will sell up to a 70 percent stake in Vinalines to strategic investors, who can be either domestic or foreign.

The shipping firm also plans to sell shares of five port operators under its umbrella across the country namely Saigon, Nghe Tinh, Cam Ranh, Can Tho and Nam Cam.

Vinalines has a registered capital of nearly US$507 million and focuses on three business lines that are sea transportation, sea port and maritime services.

It is a notorious example of inefficiency among state-owned enterprises with an accumulated loss of $200 million at the end of 2012. Its debts fell to $1.6 billion at end-2012 from $2.3 billion a year earlier after local banks rescheduled its trillions of debts.