Novavax and Takeda Announce Collaboration for Novavax’ COVID-19 Vaccine Candidate in Japan

  • Novavax will license COVID-19 vaccine technology to Takeda for local production and commercialization in Japan
  • Matrix-M adjuvant to be supplied from Novavax
  • Government of Japan will provide funding to Takeda for technology transfer, establishment of infrastructure and scale-up of manufacturing
  • Adds to Takeda’s ongoing support of influenza pandemic preparedness in Japan

GAITHERSBURG, Md. and OSAKA, Japan, Aug. 07, 2020 (GLOBE NEWSWIRE) — Novavax, Inc. (Nasdaq: NVAX), a late stage biotechnology company developing next-generation vaccines for serious infectious diseases, and Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK), today announced a partnership for the development, manufacturing and commercialization of NVX‑CoV2373, Novavax’ COVID‑19 vaccine candidate, in Japan. NVX‑CoV2373 is a stable, prefusion protein made using Novavax’ recombinant protein nanoparticle technology and includes Novavax’ proprietary Matrix‑M™ adjuvant. Takeda will receive funding from the Government of Japan’s Ministry of Health, Labour and Welfare (MHLW) to support the technology transfer, establishment of infrastructure and scale-up of manufacturing. Takeda anticipates the capacity to manufacture over 250 million doses of the COVID-19 vaccine per year1.

“Takeda’s leading position in Japan, technical expertise, regulatory know-how and manufacturing capacity make the company an ideal partner to further expand the global availability of NVX‑CoV2373,” said Stanley C. Erck, President and Chief Executive Officer of Novavax. “We look forward to collaborating with Takeda to rapidly develop, produce and commercialize the vaccine in Japan.”

Novavax and Takeda are partnering on manufacturing, clinical development and regulatory activities in Japan. Novavax will license and transfer manufacturing technologies to enable Takeda to manufacture the vaccine antigen and will supply the Matrix-M adjuvant to Takeda. Takeda will be responsible for regulatory submission to the MHLW and will produce and distribute NVX‑CoV2373 in Japan.

“Nothing is more important right now than protecting the world against COVID-19. We are excited to collaborate with Novavax to bring their promising vaccine candidate to Japan,” said Rajeev Venkayya, M.D., President of the Global Vaccine Business Unit, Takeda. “Today’s announcement builds upon our ongoing support of pandemic preparedness and demonstrates Takeda’s commitment to the health and well-being of the Japanese population.”

Novavax will be entitled to receive payments based on the achievement of certain development and commercial milestones, as well as a portion of proceeds from the vaccine.

About NVX-CoV2373

NVX‑CoV2373 is a vaccine candidate engineered from the genetic sequence of SARS‑CoV‑2, the virus that causes COVID-19 disease. NVX‑CoV2373 was created using Novavax’ recombinant nanoparticle technology to generate antigen derived from the coronavirus spike (S) protein and contains Novavax’ patented saponin-based Matrix-M™ adjuvant to enhance the immune response and stimulate high levels of neutralizing antibodies. In preclinical trials, NVX‑CoV2373 demonstrated indication of antibodies that block binding of spike protein to receptors targeted by the virus, a critical aspect for effective vaccine protection. In its Phase 1 data of the Phase 1/2 clinical trial, NVX‑CoV2373 was generally well-tolerated and elicited robust antibody responses numerically superior to that seen in human convalescent sera. Novavax was awarded $1.6 billion by the federal government as part of Operation Warp Speed (OWS), a U.S. government program to deliver millions of doses of a safe, effective vaccine for COVID-19 to the U.S. population. The OWS funding is being used by Novavax to complete late-stage clinical development, including a pivotal Phase 3 clinical trial; establish large-scale manufacturing; and deliver 100 million doses of NVX‑CoV2373 beginning as early as late 2020. The Coalition for Epidemic Preparedness Innovations (CEPI) is also investing up to $388 million, and Department of Defense (DoD) is investing up to $60 million of funding to advance clinical development of NVX‑CoV2373.

About Matrix-M™

Novavax’ patented saponin-based Matrix-M™ adjuvant has demonstrated a potent and well-tolerated effect by stimulating the entry of antigen-presenting cells into the injection site and enhancing antigen presentation in local lymph nodes, boosting immune response.

About Novavax

Novavax, Inc. (Nasdaq:NVAX) is a late-stage biotechnology company that promotes improved health globally through the discovery, development, and commercialization of innovative vaccines to prevent serious infectious diseases. Novavax is undergoing clinical trials for NVX-CoV2373, its vaccine candidate against SARS-CoV-2, the virus that causes COVID-19. NVX‑CoV2373 was generally well-tolerated and elicited robust antibody responses numerically superior to that seen in human convalescent sera in its Phase 1 data of the Phase 1/2 clinical trial. NanoFlu™, its quadrivalent influenza nanoparticle vaccine, met all primary objectives in its pivotal Phase 3 clinical trial in older adults. Both vaccine candidates incorporate Novavax’ proprietary saponin-based Matrix-M™ adjuvant in order to enhance the immune response and stimulate high levels of neutralizing antibodies. Novavax is a leading innovator of recombinant vaccines; its proprietary recombinant technology platform combines the power and speed of genetic engineering to efficiently produce highly immunogenic nanoparticles in order to address urgent global health needs.

For more information, visit www.novavax.com and connect with us on Twitter and LinkedIn.

About Takeda Pharmaceutical Company Limited

Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) is a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan, committed to bringing Better Health and a Brighter Future to patients by translating science into highly-innovative medicines. Takeda focuses its R&D efforts on four therapeutic areas: Oncology, Rare Diseases, Neuroscience, and Gastroenterology (GI). We also make targeted R&D investments in Plasma-Derived Therapies and Vaccines. We are focusing on developing highly innovative medicines that contribute to making a difference in people’s lives by advancing the frontier of new treatment options and leveraging our enhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. Our employees are committed to improving quality of life for patients and to working with our partners in health care in approximately 80 countries.
For more information, visit https://www.takeda.com.

Takeda’s Commitment to Vaccines

Vaccines prevent 2 to 3 million deaths each year and have transformed global public health. For the past 70 years, Takeda has supplied vaccines to protect the health of people in Japan. Today, Takeda’s global vaccine business is applying innovation to tackle some of the world’s most challenging infectious diseases, such as dengue, Zika and norovirus. Takeda’s team brings an outstanding track record and a wealth of knowledge in vaccine development, manufacturing and global access to advance a pipeline of vaccines to address some of the world’s most pressing public health needs. For more information, visit www.TakedaVaccines.com.

Novavax Forward-Looking Statements

Statements herein relating to the future of Novavax and the ongoing development of its vaccine and adjuvant products, including statements regarding the rights and responsibilities of each of Novavax and Takeda in their partnership, plans related to manufacturing [(including vaccine antigen dose amounts)], development, regulatory and commercial activities in Japan, potential payments to Novavax from Takeda, Novavax’ expectations of third-party funding and anticipated timing of Novavax’ clinical trial results are forward-looking statements. These statements may be identified by words such as “expect,” “look forward,” “potential,” “will” and similar references to future periods. Novavax cautions that these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include uncertainty of success in the development and potential commercialization of NVX-CoV2373, unexpected delays in clinical trials or regulatory review of NVX-CoV2373, potential set backs in scaling up manufacturing of NVX-CoV2373, adverse impacts of the ongoing COVID-19 pandemic on Novavax’ business, Novavax’ future capital requirements and availability of funding, as well as those risks identified under the heading “Risk Factors” in the Novavax Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission (SEC), and updated by any Quarterly Report on Form 10-Q, particularly the risks inherent to developing novel vaccines. Investors, potential investors, and others should give careful consideration to these risks and uncertainties. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of the statements.

Takeda Pharmaceutical Company Limited Forward-Looking Statements

This press release and any materials distributed in connection with this press release may contain forward-looking statements, beliefs or opinions regarding Takeda’s future business, future position and results of operations, including estimates, forecasts, targets and plans for Takeda. Without limitation, forward-looking statements often include words such as “targets”, “plans”, “believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “ensures”, “will”, “may”, “should”, “would”, “could” “anticipates”, “estimates”, “projects” or similar expressions or the negative thereof. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those expressed or implied by the forward-looking statements: the economic circumstances surrounding Takeda’s global business, including general economic conditions in Japan and the United States; competitive pressures and developments; changes to applicable laws and regulations; the success of or failure of product development programs; decisions of regulatory authorities and the timing thereof; fluctuations in interest and currency exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact of health crises, like the novel coronavirus pandemic, on Takeda and its customers and suppliers, including foreign governments in countries in which Takeda operates, or on other facets of its business; the timing and impact of post-merger integration efforts with acquired companies; the ability to divest assets that are not core to Takeda’s operations and the timing of any such divestment(s); and other factors identified in Takeda’s most recent Annual Report on Form 20-F and Takeda’s other reports filed with the U.S. Securities and Exchange Commission, available on Takeda’s website at: https://www.takeda.com/investors/reports/sec-filings/ or at www.sec.gov. Takeda does not undertake to update any of the forward-looking statements contained in this press release or any other forward-looking statements it may make, except as required by law or stock exchange rule. Past performance is not an indicator of future results and the results or statements of Takeda in this press release may not be indicative of, and are not an estimate, forecast, guarantee or projection of Takeda’s future results.

Contacts:

Novavax

Investors
Silvia Taylor and Erika Trahan
ir@novavax.com
240-268-2022

Media
Brandzone/KOGS Communication
Edna Kaplan
kaplan@kogspr.com
617-974-8659

Takeda Pharmaceuticals

Media in Japan
Kazumi Kobayashi
+81 (0) 3-3278-2095
kazumi.kobayashi@takeda.com

Media Outside Japan
Amy Atwood
+1 774-571-3316
amy.atwood@takeda.com


1.     The projected capacity is an estimate only based on current assumptions from Novavax.

Novavax and Serum Institute of India Announce Development and Commercial Collaboration

  • Expected to support minimum of 1 billion doses of NVX-CoV2373 for India and low- and middle-income countries
  • Leverages Serum Institute’s existing reach and infrastructure
  • Builds on and complements Novavax-CEPI collaboration to develop and distribute NVX-CoV2373 for low- and middle-income countries through the COVAX Facility
  • Serum Institute gains exclusive rights to commercialize in India and non-exclusive rights to commercialize in other LMIC countries
  • Important first step in ensuring global supply during worldwide pandemic       

GAITHERSBURG, Md., Aug. 06, 2020 (GLOBE NEWSWIRE) — Novavax, Inc. (Nasdaq: NVAX), a late-stage biotechnology company developing next-generation vaccines for serious infectious diseases, today announced a license agreement with Serum Institute of India Private Limited (SIIPL) for the development and commercialization of NVX‑CoV2373, Novavax’ COVID‑19 vaccine candidate, in low- and middle-income countries (LMIC) and India. This agreement excludes major upper-middle and high-income countries, for which Novavax continues to retain rights. NVX‑CoV2373 is a stable, prefusion protein made using Novavax’ recombinant protein nanoparticle technology and includes Novavax’ proprietary Matrix‑M™ adjuvant.

“Novavax is strongly committed to ensuring a global supply of NVX‑CoV2373, including for low- and middle-income countries that are also significantly impacted by coronavirus,” said Stanley C. Erck, President and Chief Executive Officer of Novavax. “As the world’s largest vaccine manufacturer in terms of doses delivered, Serum Institute is the ideal partner to advance NVX‑CoV2373 throughout India and the LMIC countries. This partnership continues to build on our companies’ collaborative history.”

For LMICs and India, Novavax and SIIPL are partnering on clinical development, co-formulation, filling and finishing and commercialization of NVX-CoV2373. SIIPL will be responsible for regulatory submissions and marketing authorizations. Novavax will provide to SIIPL both vaccine antigen and Matrix‑M adjuvant, and Novavax and SIIPL are in discussions to have SIIPL manufacture vaccine antigen in India. Novavax and SIIPL will split the revenue from the sale of product, net of agreed costs.

“We believe that Novavax’ NVX-CoV2373 has significant potential to successfully prevent COVID-19. Given our experience with Novavax on the development of a malaria vaccine, we know the power of their vaccine technologies,” said Adar Poonawalla, Chief Executive Officer of Serum Institute of India. “We will work urgently together to bring this vaccine to patients in these geographies.”

This agreement further boosts the global supply of the NVX-CoV2373 vaccine and builds on and complements Novavax’ collaboration with the Coalition for Epidemic Preparedness Innovations (CEPI). Through that partnership with CEPI, Novavax has committed to develop and manufacture significant amounts of NVX-CoV2373, if proved safe and effective, to be procured and distributed equitably by the COVAX Facility through a globally fair allocation framework.

About NVX-CoV2373

NVX‑CoV2373 is a vaccine candidate engineered from the genetic sequence of SARS‑CoV‑2, the virus that causes COVID-19 disease. NVX‑CoV2373 was created using Novavax’ recombinant nanoparticle technology to generate antigen derived from the coronavirus spike (S) protein and contains Novavax’ patented saponin-based Matrix-M™ adjuvant to enhance the immune response and stimulate high levels of neutralizing antibodies. In preclinical trials, NVX‑CoV2373 demonstrated indication of antibodies that block binding of spike protein to receptors targeted by the virus, a critical aspect for effective vaccine protection. In its Phase 1 portion of the Phase 1/2 clinical trial, NVX‑CoV2373 was generally well-tolerated and elicited robust antibody responses numerically superior to that seen in human convalescent sera. Novavax was awarded $1.6 billion by the federal government as part of Operation Warp Speed (OWS), a U.S. government program to deliver millions of doses of a safe, effective vaccine for COVID-19 to the U.S. population. The OWS funding is being used by Novavax to complete late-stage clinical development, including a pivotal Phase 3 clinical trial; establish large-scale manufacturing; and deliver 100 million doses of NVX‑CoV2373 beginning as early as late 2020. The Coalition for Epidemic Preparedness Innovations (CEPI) is also investing up to $388 million, and Department of Defense (DoD) is investing up to $60 million of funding to advance clinical development of NVX‑CoV2373.

About Matrix-M™

Novavax’ patented saponin-based Matrix-M™ adjuvant has demonstrated a potent and well-tolerated effect by stimulating the entry of antigen-presenting cells into the injection site and enhancing antigen presentation in local lymph nodes, boosting immune response.

About Novavax

Novavax, Inc. (Nasdaq:NVAX) is a late-stage biotechnology company that promotes improved health globally through the discovery, development, and commercialization of innovative vaccines to prevent serious infectious diseases. Novavax is undergoing clinical trials for NVX-CoV2373, its vaccine candidate against SARS-CoV-2, the virus that causes COVID-19. NVX‑CoV2373 was generally well-tolerated and elicited robust antibody responses numerically superior to that seen in human convalescent sera in its Phase 1 portion of the Phase 1/2 clinical trial. NanoFlu™, its quadrivalent influenza nanoparticle vaccine, met all primary objectives in its pivotal Phase 3 clinical trial in older adults. Both vaccine candidates incorporate Novavax’ proprietary saponin-based Matrix-M™ adjuvant in order to enhance the immune response and stimulate high levels of neutralizing antibodies. Novavax is a leading innovator of recombinant vaccines; its proprietary recombinant technology platform combines the power and speed of genetic engineering to efficiently produce highly immunogenic nanoparticles in order to address urgent global health needs.

For more information, visit www.novavax.com and connect with us on Twitter and LinkedIn.

About Serum Institute of India

Serum Institute of India Pvt. Ltd. was founded in 1966 by Dr. Cyrus Poonawalla with a mission of manufacturing life-saving immuno-biologics. Serum is the world’s largest vaccine manufacturer by number of doses produced and sold globally (more than 1.3 billion doses). It is estimated that about 65% of the children in the world receive at least one vaccine manufactured by Serum Institute. Vaccines manufactured by Serum are accredited by the World Health Organization, Geneva and are being used in approximately 170 countries across the globe.

Serum is ranked as India’s No. 1 biotechnology company, manufacturing highly specialized lifesaving biologics like vaccines using cutting edge genetic and cell-based technologies, antisera and other medical specialties.

The philanthropic philosophy of Serum continues with its work on newer vaccines and biologicals.

Learn more about Serum Institute of India at https://www.seruminstitute.com/.

About CEPI

CEPI is an innovative partnership between public, private, philanthropic, and civil society organizations, launched at Davos in 2017, to develop vaccines to stop future epidemics. CEPI has moved with great urgency and in coordination with WHO in response to the emergence of COVID-19. CEPI has initiated 9 partnerships to develop vaccines against the novel coronavirus. The programs will leverage rapid response platforms already supported by CEPI as well as new partnerships. The aim is to advance COVID-19 vaccine candidates into clinical testing as quickly as possible.

Before the emergence of COVID-19 CEPI’s priority diseases included Ebola virus, Lassa virus, Middle East Respiratory Syndrome coronavirus, Nipah virus, Rift Valley Fever and Chikungunya virus. CEPI also invested in platform technologies that can be used for rapid vaccine and immunoprophylactic development against unknown pathogens (Disease X).

Novavax Forward-Looking Statements

Statements herein relating to the future of Novavax and the ongoing development of its vaccine and adjuvant products, including statements regarding the manufacturing of vaccine antigen dose amounts and timing, are forward-looking statements. Novavax cautions that these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include those identified under the heading “Risk Factors” in the Novavax Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission (SEC) and updated by any Quarterly Report on Form 10-Q, particularly the risks inherent to developing novel vaccines. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of the statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

Contacts:

Novavax

Investors
Silvia Taylor and Erika Trahan
ir@novavax.com
240-268-2022

Media
Brandzone/KOGS Communication
Edna Kaplan
kaplan@kogspr.com
617-974-8659

Annual cashew nut export goal lowered to 3.2 billion USD

The Vietnam Cashew Association (Vinacas) has decided to lower the cashew nut export target to 3.2 billion USD this year, down from the 4 billion USD set in late 2019, given the impact of COVID-19.

 

Exports reached 232,000 tonnes in the first half, up more than 16 percent year-on-year, while value rose just 1 percent to 1.53 billion USD, as export prices slumped by nearly 14 percent.

 

Demand in China fell nearly 30 percent in volume and while value was down 44 percent. The US and European markets, however, still performed well.

 

Vinacas Chairman Pham Van Cong said export inventories remain high while trade disputes are on the rise due to falling prices.

 

According to the association, it is difficult to accurately forecast demand for cashew nuts between now and year’s end. Consumption at accommodation facilities and restaurants has fallen strongly due to the introduction of social distancing measures.

 

The importation of raw cashew nut materials was also hit by COVID-19, with importers not only facing a delay in delivery but also receiving lower-quality products compared to previous crops.

 

Vinacas has proposed companies import and export better quality cashew nuts to overcome the ongoing difficulties.

 

Source: Vietnam News Agency

 

Annual cashew nut export goal lowered to 3.2 billion USD

The Vietnam Cashew Association (Vinacas) has decided to lower the cashew nut export target to 3.2 billion USD this year, down from the 4 billion USD set in late 2019, given the impact of COVID-19.

 

Exports reached 232,000 tonnes in the first half, up more than 16 percent year-on-year, while value rose just 1 percent to 1.53 billion USD, as export prices slumped by nearly 14 percent.

 

Demand in China fell nearly 30 percent in volume and while value was down 44 percent. The US and European markets, however, still performed well.

 

Vinacas Chairman Pham Van Cong said export inventories remain high while trade disputes are on the rise due to falling prices.

 

According to the association, it is difficult to accurately forecast demand for cashew nuts between now and year’s end. Consumption at accommodation facilities and restaurants has fallen strongly due to the introduction of social distancing measures.

 

The importation of raw cashew nut materials was also hit by COVID-19, with importers not only facing a delay in delivery but also receiving lower-quality products compared to previous crops.

 

Vinacas has proposed companies import and export better quality cashew nuts to overcome the ongoing difficulties.

 

Source: Vietnam News Agency

Seaport fees should be increased: say insiders

Container loading and unloading service charges should be increased to approach the regional level so investors would not feel hesitant when pouring money into developing seaports.

 

The proposal was raised at a recent online conference held by the Vietnam Maritime Administration to discuss measures to remove difficulties for seaport and marine transportation companies.

 

Statistics showed container loading and unloading services charges of seaports in Vietnam were much lower than other regional countries.

 

According to NhuDinhThien, Deputy General Secretary of the Vietnam Ship Agents and Brokers Association, the charges were about 33-53 USD per 20ft container and 57-98 USD per 40ft container. In comparison, Thailand charges around 59 USD per 20ft container and 91 USD per 40ft container, Singapore 111 USD and 159 USD and Cambodia 65 USD and 95 USD, respectively.

 

Nguyen TuongAnh, general director of HaiPhong Port, said with such low services charges, it would be difficult for ports to have funds for re-investment and improving services quality.

 

He said it was necessary to raise container loading and unloading services charges so seaports could have funds for expanding investment and improving quality.

 

The charges should also be attractive enough to draw investors to seaport development, he said.

 

He proposed container loading and unloading services charges be increased by 10 percent, starting from 2021, then a 10 percent increase every two years.

 

According to Thien, the charges should be raised by 10 percent from 2021 and another 10 percent in 2022 and 2023.

 

Phan Thong, General Secretary of Vietnam Shippers’ Council, said the increases in loading and unloading services charges should be appropriate to make up for the costs of seaport companies while not significantly pushing up logistics costs.

 

Bui Van Trung, General Secretary of Vietnam Shipowners’ Association, said appropriate container loading and unloading services changes were important to attract investment to develop seaports.

 

The charges should be adjusted to gradually approach regional levels, Trung said.

 

Deputy Minister of Transport Nguyen Van Cong said that increasing seaport services charges was necessary given the significant gaps in services fees with other countries in the region.

 

Cong said container loading and unloading charges needed to increase to be equivalent to 60-70 percent of the regional average by 2025 and to approach the regional level after that, or at least equivalent to Cambodia’s.

 

Cong stressed the increases were only in ceiling prices, meaning shipowners could have the room for negotiations.

 

He also asked the Vietnam Maritime Administration to develop an appropriate frame for seaport services charges to ensure companies would have funds for reinvestment and upgrades of infrastructure.

 

He said that the ministry would make efforts to complete the draft amending Circular 54/2018/TT-BGTVT about seaport services charges and submit it to the Government for issuance before January 1, 2021.

 

Mai Phuong Hong, from the Ministry of Finance’s Price Management Department, said the increases of seaport charges needed to be given careful consideration in the context of the COVID-19 pandemic to limit the impacts on business operation, imports and exports as well as the consumer price index.

 

In the first half of this year, more than 339 million tonnes of cargo were shipped through seaports in Vietnam, up by 7 percent against the same period last year, statistics of the Vietnam Maritime Administration showed.

 

The capacity of Vietnam’s seaport system increased from 73 million tonnes of cargo in 2000 to currently 650-700 million tonnes.

 

Source: Vietnam News Agency

Deputy PM demands faster SOE equitisation, State capital divestment

Deputy Prime Minister Truong HoaBinh on August 6 requested the utmost effort from ministries, sectors, and State-owned enterprises (SOEs) to achieve the best result possible in equitising SOEs and divesting State capital from businesses.

 

At its meeting in Hanoi, the steering committee for enterprise reform and development reported that from 2016 to June 2020, more than 218 trillion VND (9.4 billion USD) was collected from SOE equitisation and State capital divestment, up 2.79-fold against the figure recorded in the 2011-2015 period as a whole, of about 78 trillion VND.

 

State capital divestment, however, is still behind schedule, it said, pointing out that under the PM-approved plan for 2017-2020, divestment at 348 enterprises is to be completed within the period but has been carried out at just 92, or only 26.4 percent.

 

Also head of the steering committee, Binh blamed the problem on the slow revision of regulations on equitisation and divestment as well as the lax implementation of the land law and the law on the management and use of public assets, while noting that many enterprises waited until the equitisation process began before beginning to address land-related issues.

 

Some ministries, sectors, localities, and SOEs haven’t been serious in completing the task, he said, adding that the COVID-19 outbreak has had an adverse impact in every socio-economic regard, including equitisation, divestment, and the stock market, not to mention certain existing barriers to the private sector development.

 

Noting that the remaining months of this year is also the final period for implementing the equitisation and divestment plan for 2016-2020, Binh asked ministries, sectors, and SOEs to exert every effort to restructure SOEs while accelerating equitisation and divestment to record the best possible results.

 

Source: Vietnam News Agency

 

Vinatex’s revenue nosedives 36 percent in Q2

The COVID-19 pandemic dragged down the revenue of the Vietnam National Textile and Garment Group (Vinatex) by 36 percent year-on-year in the second quarter, to just over 3.08 trillion VND (133 million USD).

 

Profit stood at 280 billion VND, down 36 percent against the same period last year, according to Vinatex Director General Le Tien Truong.

 

The State-owned group earned more than 7.04 trillion VND in revenue in the first half and posted 276 billion VND in profit, year-on-year falls of 24.5 percent and 20.7 percent, respectively.

 

Most of Vinatex’s subsidiaries have also seen revenue and profit plummet, Truong said, adding that the pandemic has slashed the stock price of two of its member companies – the Viet Tien Garment JSC and the PhuBai Spinning Mill JSC – by half and one quarter, respectively.

 

The worst is yet to come, he went on, with the third and fourth quarters of the year likely to present the greatest challenges to the textile and garment industry.

 

The company has not had any orders for three months and there has been a fall in the number of orders for masks, with prices sinking to a level that is just enough to cover costs, he said.

 

Production of masks and personal protective equipment rescued many domestic manufacturers in the second quarter of the year, he noted, but now prices are going down as a result of global oversupply.

 

Source: Vietnam News Agency