Tuesday, October 26 2021

VietNamNews

State to divest from six major enterprises, raking in $600-800 million in Q1 2022

Update: October, 06/2021 - 08:31

 

An FPT shop in Phan Bội Châu Street in Hà Nội. FPT Corporation is among six enterprises the State will divest capital in the first quarter of next year. VNS Photo Mai Hương

HÀ NỘI — The State Capital Investment Corporation (SCIC) is expected to divest capital from six major enterprises in the first quarter of next year, fetching between VNĐ15 trillion and VNĐ20 trillion (US$652-870 million) for the State budget.

This is part of the State divestment plan for 2020 revealed by the Corporate Finance Department under the Ministry of Finance.

The finance authority has developed a plan to withdraw state capital from six enterprises under the management of SCIC in two scenarios.

In the first scenario, the State will divest from five enterprises including FPT Group (FPT), Bảo Minh Insurance Corporation (BMI), Tiền Phong Plastic Joint Stock Company (NTP), Vietnam National Reinsurance Corporation (VNR) and Vietnam Infrastructure Investment & Development Joint Stock Company (VIID).

Based on the share value of these companies on the stock market on August 23, 2021, the State budget is expected to rake in at least VNĐ10 trillion ($440 million) from the divestment.

In the second scenario, besides the above-mentioned enterprises, the State will also sell equity in Saigon Beer Alcohol Beverage Corporation (Sabeco, SAB). Divestment from six companies is expected to bring in no less than VNĐ30 trillion-VNĐ40 trillion ($1.3-$1.7 billion) to the State coffers.

To ensure the revenue from State equitisation and divestment during 2022-25, expected to be VNĐ248 trillion, the finance department has urged SCIC to focus and complete the equitisation of Vietnam Mobile Telecom Services Co Ltd (MobiFone) in 2022-23, Vietnam Posts and Telecommunications Group (VNPT) and Vietnam National Chemical Group (Vinachem) in 2023-24.

After equitisation, the State holding in these enterprises would be 51 per cent.

In addition, the department also suggested the State Bank of Việt Nam and the Ministry of Construction prioritise equitisation of the enterprises under their management, including the Bank for Agriculture and Rural Development of Vietnam (Agribank), Vietnam Cement Industry Corporation (Vicem) and the Housing and Urban Development Investment Corporation (HUD) in the 2022-24 period.

According to the finance department’s report, State divestment and equitisation are falling short of target this year as revenues from these activities only reached VNĐ336 billion in the first eight months, far behind the target of VNĐ40 trillion set for the whole year. — VNS

 

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