Approval of the Project on restructuring Vietnam Rubber Industry Group

The Prime Minister has just signed a decision approving the Project to restructure the Vietnam Rubber Industry Group for the 2012-2015 period with the goal of ensuring the group has a reasonable structure, focusing on the main production and business fields of planting, caring for and processing rubber.

According to the project, the main business lines of the Vietnam Rubber Industry Group are planting, processing, and trading rubber; processing artificial wood; and rubber industry. The Group is allowed to invest in and operate industrial zones on the Group's rubber land converted according to the land use plan approved by the Government.

The project maintains the parent company - Vietnam Rubber Industry Group and the units within the parent company - group structure including: Vietnam Rubber Research Institute; Rubber Technical College; Rubber Magazine; Rubber Medical Center. At the same time, it also maintains enterprises in which the parent company - group holds 100% of the charter capital at 22 single-member LLCs; maintains enterprises in which the parent company - group holds more than 50% of the charter capital at 18 joint stock companies; maintains enterprises in which the parent company - group holds less than 50% of the charter capital at 20 companies. Vietnam Rubber Finance Company Limited is merged into the parent company - Vietnam Rubber Industry Group.

In terms of financial restructuring and investment, the project includes divesting 100% of the parent company's capital contribution in 23 enterprises; divesting part of the parent company's capital contribution in 2 enterprises. At the same time, investing more capital to maintain controlling rights in Ben Thanh Rubber Joint Stock Company; investing more capital to convert Nghe An Rubber Joint Stock Company into a subsidiary of the parent company - group.

The Prime Minister requested the Board of Members of the Vietnam Rubber Industry Group to develop a Development Strategy for the period 2012 - 2015, with a vision to 2020, submit it to the Prime Minister for consideration, approval, and vision to 2020; implement the 5-year production, business, and investment development plan for the period 2011 - 2015 approved by the Prime Minister in Decision No. 514/QD-TTg dated May 2, 2012. In addition, approve the plan to reorganize production and business, the plan to restructure member enterprises in accordance with the content of this project and to implement specialization, assignment, cooperation, not to spread out, disperse resources, and avoid internal competition.

Have a specific roadmap and plan to complete the divestment of capital invested in the above enterprises by the end of 2015. Develop a plan to merge the Vietnam Rubber Finance Company Limited into the parent company - Vietnam Rubber Industry Group, a plan to invest additional capital to convert Ben Thanh Rubber Joint Stock Company and Nghe An Rubber Joint Stock Company into subsidiaries of the parent company - the group to submit to the Prime Minister for decision.

According to VNA - LC