Accelerating state-owned enterprise (SOE) equitisation, streamlining listing procedures and removing persistent legal bottlenecks are expected to expand the supply of high-quality assets and strengthen the attractiveness of Vietnam’s stock market to global investors.
The outbreak of COVID-19 in many localities has delayed the equitisation of State-owned enterprises (SOEs), according to Dang Quyet Tien, director of the Corporate Finance Department.
The equitisation of State-owned enterprises (SOEs) and divestment of State capital have created more products for the M&A market, heard the Vietnam M&A Forum in HCM City on August 6.
The value of the merger and acquisition (M&A) deals in Vietnam reached 5.43 billion USD in the first seven months of this year, according to data released on July 23 by the AVM Vietnam, a co-organiser of the Vietnam M&A Forum 2019.
Shortcomings in terms of institutions and laws are the main cause of the sluggish restructuring of State-owned enterprises (SOEs), which may fail to fulfill many important targets by the end of 2020, according to the Central Institute for Economic Management (CIEM).
The slow listing of post-equitisation firms, including State-owned enterprises (SOEs), may make Vietnamese firms less attractive regarding a lack of corporate transparency and government agencies managing those firms must be blamed for the problem.
The recently-established Committee for the Management of State Capital at Enterprises (CMSC) will have a heavy workload to shoulder, needing great efforts exerted to overcome this challenge, according an expert.
Vietnam has equitised 147 state-owned enterprises (SOEs) since 2016, collecting 206.7 trillion VND (~8.8 billion USD) from equitisation and divestment.
The restructuring and equitisation of State-owned enterprises (SOEs) should focus on quality instead of quantity, and the State’s investments need to be restructured to become more effective, an expert has said.
Only 11 State-owned enterprises (SOEs) were equitised in the first nine months of this year, making the country’s target to complete the equitisation of at least 85 SOEs this year unlikely to reach, according to an official from the Ministry of Finance (MoF).
The State Audit of Vietnam (SAV) will audit 25 State-owned enterprises and financial organisations in 2019. They include the State Bank of Vietnam, 21 economic groups and corporations and three banks and credit institutions.
2018 is hoped to see a strong wave of equitisation of State-owned enterprises (or SOE). However, the first half of the year is yet to see as strong movement as expected.
The Vietnam National Shipping Lines (Vinalines) is scheduled to carry out its initial public offering (IPO) in August, according to the firm’s latest equitisation plan recently submitted to the Prime Minister for approval.
The Ministry of Finance (MoF) has urged some State-owned enterprises (SOEs) to hasten their equitisation and divestment plans, as progress remains slow and might fail to meet their deadlines this year.
The operation efficiency of State-owned enterprises (SOEs) during 2011-2016 had yet to match the resources they were holding, according to a report delivered to the National Assembly on May 28.
As investors from the Republic of Korea (RoK) have financial strength, management experience and high technology, Vietnam wants them to actively take part in and become strategic partners in the equitisation and divestment of State capital from State-owned enterprises (SOEs).
The list of top 500 largest Vietnamese enterprises (VNR500) was announced in Hanoi on January 19, with the number of private companies in the list rising by 2.5 times in 2017 since the rankings were first made 10 years ago.
