On 5 January 2013, the Prime Minister approved a restructuring plan for PetroVietnam (“PVN”), the national oil company. Under the restructuring plan, PVN is instructed to:
- equitise Dung Quat refinery, the only refinery in operation in Vietnam by 2015. PVN is required to retain at least 75% of the shares in Dung Quat refinery;
- equitise Ca Mau Fertilizer Plant which has an annual capacity of 800,000 tons by 2015. PVN is required to retain at least 51% of the shares in Ca Mau Fertilizer Plant;
- equitise PV Oil which is mainly in charge of the downstream operation of PVN including import and distribution of petrol after 2015. PVN is required to retain at least 75% of the shares in PV Oil;
- equitise PV Power, the second largest electricity producer after Vietnam Electricity in Vietnam. PVN is required to retain at least 75% of the shares in PV Power;
- reduce its shareholding in PetroVietnam Insurance Company, the second largest non-life insurance, from 39% to 35% by 2015;
- divest entirely its shares in Ocean Bank by 2015; and
- continue studying a restructuring plan for PetroVietnam Finance Company (PVFC), a finance company with total assets of about US$ 4.5 billion. In August 2012, the Prime Minister has opined that PVN needs to divest from PVFC entirely. However, the fate of PVN’s 78% shares in PVFC has not been decided in the restructuring plan.