Top rice exporter wants to invest in petroleum

By Phuong Dong July 17, 2019 | 04:03 am PT

Gasoline retailing is one of four new sectors that Vinafood II wants to invest in. Photo by VnExpress/Huu Khoa.

Vinafood II, one of Vietnam’s biggest rice exporters, has announced plans to diversify into oil trading and gasoline retailing.

According to documents released before its annual general meeting at the end of July Vietnam Southern Food Corporation-JSC (Vinafood II) said it plans to expand into four new sectors, real estate and vehicle parking lots being the other two.

Since Vietnamese law does not allow foreign investment in gasoline and petroleum trading, Vinafood II has asked its shareholders for approval to lock foreign holdings at zero percent.

Vinafood II was equitized and listed on the Unlisted Public Companies Market (UPCoM) in March last year, with the government retaining a 51.43 percent stake.

Last year provision for devaluation of inventory, loss of financial investments and bad debts after equitizing caused the company a loss of VND1.77 trillion ($76.2 million). Though the first quarter of this year was profitable, it carries an accumulated after-tax loss of nearly VND2 trillion ($86.14 million).