Ministries discuss selling Trang Tien Plaza to private investors

The Ministry of Industry and Trade (MOIT) wants to sell all the state capital in Trang Tien Plaza, while the State Capital Invetsment Corporation (SCIC) and the Ministry of Finance (MOF) want to retain 51 percent of capital.

The Ministry of Industry and Trade (MOIT) wants to sell all the state capital in Trang Tien Plaza, while the State Capital Invetsment Corporation (SCIC) and the Ministry of Finance (MOF) want to retain 51 percent of capital.

Ministries discuss selling Trang Tien Plaza to private investors

Trang Tien Plaza (Photo: Tran Ngoc)

SCIC and MOF, which are planning the restructuring and classification of state-owned enterprises (SOEs) by 2020, is considering selling Trang Tien Plaza, where SCIC holds 90 percent of charter capital.

Trang Tien Plaza, located in the central area of Hanoi, overlooking the legendary Hoan Kiem Lake, has important significance to the city’s history and culture.

SCIC plans to retain 51 percent of charter capital after equitization.

However, MOIT thinks the state doesn’t need to hold a stake in a trade company, and has suggested selling all the state’s capital contribution there.

Trang Tien Plaza is leased to IPP Group which is developing a center specializing in distributing luxury branded goods, and targeting high-income earners and foreign customers.

The real owner of the shopping mall is the Trang Tien Investment & Trade Company, where SCIC holds 90 percent of charter capital and Hapro holds 10 percent.

Commenting about the SCIC’s plan to retain 51 percent of charter capital in Trang Tien Plaza, Dang Quyet Tien, deputy head of the Enterprise Finance Department under MOF, said the sale of state capital is related to business efficiency and SCIC may want to sell stakes at higher value.

Tien confirmed that Trang Tien Plaza is in a business field which the state doesn’t need to invest, so agencies are discussing whether to maintain the state capital in the enterprise.

According to the MOF representative, since Trang Tien Plaza bears historical value, it is necessary to be cautious when selling it.

An analyst said he understands MOF’s concerns. “What will happen if Trang Tien Plaza falls into the hands of foreign investors and hangs objectionable pictures there?” he said.

The Trang Tien Investment & Trade Company was established in May 1999. In 2000, Trang Tien Plaza was built on the location of a former Hanoi general department store.

Trang Tien Plaza opened in 2002 on the basis of the cooperation between Vinaconex and Hapro, considered the symbol of Hanoi’s economy in the integration period.

In 2007, Vinaconex’s capital contribution was transferred to SCIC.

Analysts believe the state’s pestment from Trang Tien Company may bring a brighter future to Trang Tien Plaza, and huge money to the state budget.

Covering an area of 4,346 square meters, located in the most advantageous position, where the land is priced up to VND1 billion per square meter, the sale of Trang Tien Plaza will bring trillions of dong./.

VNF/Vietnamnet

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