The packaging line of a Vinamilk factory in southern Binh Duong province. (Photo: VNA)

The upcoming divestment of State capital from 10 major companies is not likely to cause big impact on the market, said an official from the Finance Ministry.

Dang Quyet Tien, Deputy Head of the Agency for Corporate Finance under the Ministry of Finance, said in Public Letter No 1787/TTg-DMDN, the Government has instructed the State Capital Investment Corporation (SCIC) to select suitable time and divestment plans with a view of ensuring minimum impact on the target enterprises’ operations, labourers’ interests and the market.

Eight of the 10 companies which are subject to SCIC's divestment list shares on the two national stock exchanges, including dairy giant Vinamilk (VNM), software producer FPT Corp (FPT), Bao Minh Insurance Corp (BMI), Tien Phong Plastic Co (NTP) and Binh Minh Plastic Co (BMP).

The divestment roadmap will be decided by the SCIC.

Tien stressed that the decision on divestment shows the Government’s resolution to carry out the Law on Management and Use of State Capital that the Government would reduce its involvement in economic sectors where the private sector can operate. Instead, the Government will focus its capital on the fields that need State control, such as security-defence, social welfare, poverty reduction and infrastructure.

Capital obtained from the divestment will be used, as stipulated in the resolution of the third plenum of the ninth Party Central Committee, to invest in the economy, especially in sectors subject to the State control.-VNA