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Divestment in state-owned enterprises to be stepped up in 2018
Ngoc Thuy 22:01, 2018/02/05
The Ministry of Industry & Trade (MoIT) will continue its efforts to divest state capital from state-owned enterprises (SOEs) in 2018, said Tao Thi Kim Van, Deputy Head of Finance and Enterprises Renovation Department.
Under the restructuring plan of SOEs in the period 2016–2020 and approved by the Prime Minister, the MoIT has completed the equitization and divestment process in 17 SOEs, including 6 corporations.
 
A number of SOEs will be subject to divestment and equitization in 2018.
A number of SOEs will be subject to divestment and equitization in 2018.
In January, the MoIT carried out an initial public offering (IPO) for Binh Son Refinery and Petrochemical (BSR), PetroVietnam Power (PV Power) and PetroVietnam Oil (PV Oil).
 
“The results have been positive, with revenue reaching multiple times higher than previous IPOs. Afterwards, the MoIT instructed related agencies to proceed with selling state capital to strategic investors right in the first quarter of 2018,” Van added in the MoiT's press conference on February 5.
 
In 2018, the MoIT will step up efforts to divest state capital from large SOEs, including Vietnam National Petroleum Group (Petrolimex), Hanoi Beer Alcohol and Beverage (Habeco), and Vietnam Engine and Agricultural Machinery Corporation (VEAM).
 
In the case of Habeco, as its strategic shareholder Carlsberg is having the right of first refusal, it is vital for the two sides to work out the deal before Habeco can proceed with taking its shares to the stock market. 
 
Meanwhile, VEAM launched its IPO in August 29, 2016 for the sale of 167 million shares, equivalent to 12.57% of its chartered capital.
 
In the coming months, the MoIT will accelerate the equitization and divestment process following the Prime Minister’s approved roadmap for equitization of SOEs, said the Deputy Minister of Industry & Trade Do Thang Hai at the government’s press briefing on February 2.
 
The process will be made public to ensure transparency and fairness, stressed Hai, with a view to prevent potential losses of state funds.
 
Total revenue from the equitization process and divestment in 2017 is estimated at VND144.6 trillion (US$6.3 billion), 2.4 times higher than the original target of VND60 trillion (US$2.6 billion) set by the National Assembly, the MoIT said. Specifically, revenue from equitization process and divestment reached VND5.2 trillion (US$229 million) and VND139.4 trillion (US$6.1 billion), respectively.

The number of SOEs has been reduced 24 times compared to 20 years ago, from 12,000 enterprises in 1986 to 500 in 2017, holding 11 key sectors and providing essential public services and social and security needs. The number is expected to decrease to 150, mainly lottery companies, public services, and 3 leading SOEs:  Electricity Vietnam (EVN), PetroVietnam (PVN) and Viettel.
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