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Government raises US$61.5mn from SOE divestment

Update: April, 11/2018 - 15:30
Investors are waiting for IPOs of large companies in the trade and services sectors such as Satra. — Photo anphong.vn
Viet Nam News

HÀ NỘI — The Government raised more than VNĐ1.39 trillion (US$61.5 million) by divesting its stake in State-owned enterprises (SOEs) in the first quarter of this year, according to the Ministry of Finance.

During this period, authorities also approved the equitisation plans of two SOEs---Phước An-Đăk Nông Coffee Company and Vạn Tường Company---at a total value of VNĐ987 billion, of which VNĐ187 billion is State capital.

The first quarter also saw several equitised SOEs complete initial public offering (IPO) auctions, such as Bình Sơn Refinary, PV Oil, PV Power and Vietnam Rubber Corporation.

According to data of StoxPlus Company, Việt Nam’s stock markets raised VNĐ21.3 trillion through the IPO auctions of 12 SOEs in the first quarter, equal to the total IPO value of the previous four years.

Experts attributed the high growth to a wave of equitisation of many large SOEs in recent times, especially in the field of energy.

Việt Nam considers 2018 a key year in the country’s restructuring plan for SOEs, targeting to divest State capital at 181 SOEs and equitise at least 86 SOEs throughout the year, with 64 being large ones. The target is tough, but experts believe it is feasible, thanks to many favourable conditions, including high economic growth and macro-economic stability.

Investors are waiting for IPOs of large companies in the trade and services sectors, such as Mobifone, Bến Thành Group, Satra and Saigon Tourist, or in the real estate and construction sectors, such as Investment Corporation and Hanoi Housing Development Corporation.

Last year, the Government raised over VNĐ144.5 trillion by divesting its stake in SOEs. The proceeds were 2.41 times higher than the target of VNĐ60 trillion set by the National Assembly. — VNS

 

 

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