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Gia Dinh mulls purchase of Long An Textile

Long An Textile Company's overdue debt hits over VND65bil, including VND3.5bil in social insurance

Inside sources revealed the HCM City-based Gia Dinh Textile Company is considering the purchase of Long An Textile Company to serve its plan of moving out of HCM City centre.

The Gia Dinh Textile Company under the HCM City Industry Department has petitioned the HCM City People’s Committee to purchase the assets and workshops of the Long An Textile Company in its dissolved form.

The HCM City People’s Committee previously guided the Gia Dinh Textile Company to move its factory out of the city centre under a programme to move industrial factories to the outskirts.

The original plan included moving the Gia Dinh factory to the Thu Duc Industrial Zone but with the purchase of Long An Textile Company, plans have changed due to Long An’s favourable location.

The business affairs between the two State-owned enterprises after one side is dissolved will be complex, an official of Long An Province said. The assets of the Long An Textile Company will be evaluated by a State agency and the money raised from the sales of its assets will cover existing debt, he added.

According to the General Director of the Long An Textile Company Huynh Van Khanh, the company’s assets include fixed assets of VND98bil, working capital of VND19bil, land use rights and other assets. Long An Province’s Assets Evaluation Council calculates the total value of the firm’s assets at VND160bil. However, the Prime Minister will give the final decision about this.

Meanwhile, the firm’s overdue debt hit over VND65bil, including VND3.5bil in social insurance.

Last week Long An authorities officially issued the decision to dissolve the Textile Company after receiving the green light from Government. The decision was then released to the media.

There are two companies competing for the assets of Long An, Gia Dinh and Thai Tuan (a private firm in HCM City, which was previously Long An’s general agent). However, Long An authorities said that the priority will be given to Gia Dinh, a State-owned firm.

Vietnamnet - (08/09/2004)

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