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Aug 02, 2018 / 15:50

Just one fifth of Vietnam state-owned firms go public post-privatization

Nguyen Tung

Deputy Prime Minister Vuong Dinh Hue has urged ministries and provinces to speed up the process of going public for SOEs post-equitization.

Of the total 750 state owned enterprises (SOEs) in Vietnam that have completed the equitization process, only 150 have float shares on the local stock exchanges so far, according to Vu Thi Mai, vice minister of Finance. 
 
Illustrative photo.
Illustrative photo.
In August 2017, the Ministry of Finance (MoF) disclosed the list of 747 equitized SOEs which have not registered to list shares on the stock market, Mai informed at the press meeting following a monthly cabinet gathering on August 1. 

According to Mai, in the previous meeting of the Steering Committee for Business Renovation and Development, Deputy Prime Minister Vuong Dinh Hue urged ministries and provinces to speed up the process of going public for SOEs post-equitization.

"We will cooperate with related ministries and agencies to support enterprises listing shares following Deputy PM's instruction," Mai added. 

In the first half of 2018, 19 SOEs had their equitization schemes approved, down 13.8% year-on-year. Their combined value reached more than VND40.6 trillion (US$1.75 billion), of which VND23 trillion (US$991 million) was state capital, stated the Steering Committee for Business Renovation and Development in its latest report. 

Specifically, the abovementioned 19 SOEs have combined charter capital of over VND22 trillion (US$948 million), of which the state holds nearly VND13 trillion (US$560.3 million) or 58.83% of the total. In addition, employees are eligible to buy VND112 billion (US$4.82 million) or 0.51%, and strategic investors nearly VND9 trillion (US$387.8 million) or 40.66%. 

During the January - June period, 16 SOEs launched their respective initial public offerings (IPO) and sold stakes to strategic investors for VND22.5 trillion (US$968.9 million) in total, 4.5 times higher than the proceeds from IPOs in 2017. 

Those included some large corporations such as PetroVietnam Power (PV Power) with VND7 trillion (US$301.9 million) from the IPO, Binh Son Refinery and Petrochemical (BSR) with VND5.4 trillion (US$232.9 million), PetroVietnam Oil (PV Oil) with VND4 trillion (US$172.5 million), Vietnam Rubber Group with VND1.3 trillion (US$56 million), and Vinafood 2 of VND2.4 trillion (US$103.5 million). 

With regard to divestment process, 42 SOES completed the process for returns of VND5.6 trillion (US$241.2 million) from divesting VND1.8 trillion (US$77.5 million) in book value. 

Overall, total value from divestment and equitization process from 2016 until now is 2.5 times the figure recorded in the 2011 - 2015 period, stated the committee. 

This resulted in a contribution of VND115 trillion (US$4.95 billion) to the state budget or 46% of the year's target set for the 2016 - 2020 period. 

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