Vietnam’s government raked in more than VND1.39 trillion (US$61.5 million) through divestiture of its stake in several state-owned enterprises in the first quarter of this year, the Ministry of Finance has said.
2018 is the key year of Vietnam’s restructuring plan for state companies, with the government set to withdraw state holdings at 181 state-owned enterprises and complete equitization at least 86 such companies throughout the year.
Equitization is the process of partially privatizing state-owned enterprises by issuing shares, with the government still holding the majority stake.
Sixty-four major state-run companies in Vietnam are set to be equitized, according to the Vietnam News Agency.
On top of the $61.5 million divestment, the government has also in the first quarter of 2018 approved the equitization plans for two state-owned companies, Phuoc An-Dak Nong Coffee Company and Van Tuong Company, at a total value of VND987 billion ($43.48 million). The state holdings in these companies are VND187 billion ($3.83 million).
The first three months of this year also saw several equitized state-run enterprises complete their initial public offerings (IPO), such as Binh Son Refinary, PV Oil, PV Power and Vietnam Rubber Corporation, according to the Vietnam News Agency.
Vietnam’s stock markets raised VND21.3 trillion ($938.33 million) through the IPO auctions of 12 state-run enterprises in the first quarter, equal to the total IPO value of the previous four years, according to data of securities firm StoxPlus.
Experts attributed the high growth to a series of equitization of many major state companies in recent times, especially in the field of energy.
Experts are also confident that the government can meet its target of the restructuring plan for 2018, given such favorable conditions as high economic growth and macro-economic stability.
Investors are looking forward to the IPOs of such large companies in the trade and services sectors as Mobifone, Ben Thanh Group, Satra and Saigon Tourist, or in the real estate and construction sectors, such as Investment Corporation and Hanoi Housing Development Corporation.
The Vietnamese government raised a total of more than VND144.5 trillion ($6.37 billion) through divestiture of its shares at state-run companies in 2017.
The proceeds were 2.41 times higher than the target of VND60 trillion set by the lawmaking National Assembly, according to the Vietnam News Agency.
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