Government raises 61.5 million USD from SOE divestment

Hanoi (VNA) - The Government raised more than 1.39 trillion VND (61.5 million USD) 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 - Phuoc An-Dak Nong Coffee Company and Van Tuong Company - at a total value of 987 billion VND, of which 187 billion VND is State capital.

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

According to data of StoxPlus Company, Vietnam’s stock markets raised 21.3 trillion VND 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.

Vietnam 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, Ben Thanh 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 144.5 trillion VND by divesting its stake in SOEs. The proceeds were 2.41 times higher than the target of 60 trillion VND set by the National Assembly.-VNA