Vinapaco will pull out of four companies active in its non-core business sectors and five others in its core operations. The four non-core business companies are Saigon Garment –Match Joint Stock Company, Viet Thai Product, Export Import, Services and Investment Company Limited, Saigon Beer – Phu Tho Joint Stock Company and Vietnam Industrial and Commercial Securities Joint Stock Company.

The others are all paper companies, including Thanh Hoa Paper Joint Stock Company, Tan Mai Joint Stock Company – southeastern region, Tan Mai Joint Stock Company – central region, Tan Mai Joint Stock Company – Central Highlands and Tan Mai Joint Stock Company – Lam Dong.

Under the plan, Vinapaco will focus on producing paper and pulp, planting and exploiting forests, improving its efficiency and competitiveness, protecting the environment, and fulfilling its pivotal role in the paper industry. The corporation’s chartered capital will be decided by the Ministry of Industry and Trade after reaching an agreement with the Ministry of Finance.

The parent firm Vinapaco will be a 100% State-owned enterprise with 20 subsidiaries. The corporation will wholly own Southern Paper Materials Company and hold stakes of below 50% in nine other companies.

In addition, Vinapaco will equitize four companies where its holdings are less than 50%. It will also have to merge Moc Son Forestry Company with Tam Son Forestry Company, and A Mai Forestry Company with Yen Lap Forestry Company.

Furthermore, Vinapaco will turn the Institute of Paper and Cellulose Industry and the Research Institute of Pulp and Paper Material into science-technology companies. Meanwhile, the Vocational College of Paper Technology and Electro-Mechanics will be transferred to the trade ministry.

The Prime Minister asked Vinapaco’s board of members to draw up schemes for reorganizing production and trading activities and restructuring member companies, consistent with the restructuring plan. The schemes will be submitted to the authorities and implemented after being approved.