Port equitisation attracts foreign investors
More
than 90 percent of Nha Trang Port Company's stakes went unsold after
its IPO in May, while Quang Ninh Port Company and Hai Phong Port Company
sold only six to seven percent each. Vietnam National Shipping Lines
(Vinalines)' IPO also witnessed disappointing results.
Experts
blamed the failures on the fact that the State still holds majority
stakes (75 percent) in the equitised companies, making them unappealing
to investors, particularly foreign partners.
However, the
Ministry of Transport has ordered Vinalines to build a plan to reduce
State capital invested in these firms. All seaports in the country will
be equitised. The State will only retain majority stakes in seven big
ports: Hai Phong, Quang Ninh, Da Nang, Sai Gon, Can Tho, Nghe Tinh and
Cam Ranh.
Regarding the four key ports (Hai Phong, Quang Ninh, Da
Nang and Sai Gon), the State will only hold 51 percent of total capital
instead of 75 percent. For the other three ports, the State holding
will be reduced to 49 percent.
The State will also sell all of its capital invested in port companies.
Le
Anh Son, General Director of Vinalines, said many investors were
approaching the company and showing interest in buying stakes in the
five large port operators for which Vinalines plans to launch IPOs by
the end of the year.
"Some investors registered to buy up to 90
percent of Da Nang Port Company, or even the entire offering of Quang
Ninh Port Company, and 49 percent of Hai Phong Port Company," Son was
quoted as saying in Giao thong van tai (Transport) newspaper.
Many investors were willing to buy shares at competitive market prices, so there would be no more disappointing IPOs, he added.
Vietnam
Oman Investments Joint Stock Company, a joint venture between the State
of Oman and the State Capital Investment Corporation of Vietnam,
recently sought to buy nearly 20 percent of State capital in Hai Phong
Port Company.
Previously Sigmund Stromme, Chairman of the Nordic
Business Association, suggested the Vietnamese Government allow foreign
investors to buy 70-100 percent of stakes in shipping companies and port
investment projects. As foreign shipping companies were the main
clients of Vietnamese ports, they would want to direct the course of
port management.
Moreover, foreign ownership in waterway logistics, forwarding and related activities must be increased following Vietnam's WTO commitments.-VNA