Vietnamplus

The Government set a target of divesting capital in 141 enterprises and equitising 19 state-owned enterprises by 2025.

In 2022, the State Capital Investment Corporation (SCIC) is expected to divest from 101 member companies.

Deputy Prime Minister Le Minh Khai has signed a decision to deepen the restructuring of state-owned enterprises (SOEs) in 2021-25.

Many State-owned enterprises have announced their auction schedule for capital divestment plans, but not all of them are attracting customers.

Although relevant policies have been put in place, the process of equitisation and divestment of State capital is still moving at a very slow pace, according to Dang Quyet Tien, director of the Corporate Finance Department under the Ministry of Finance.

State capital divestment planning and the removal of limitations on foreign ownership are expected to drive insurance stocks to flourish in 2022.

Among the 183 State-owned enterprises (SOEs) equitised from 2016 to June this year, only 39 are in the Prime Minister-approved list of the 128 SOEs subject to equitisation, equivalent to 30 percent.

The increase in Vietnam's stock market has helped foreign shareholders implement their disinvestment plans in Vietnamese enterprises. However, these activities will not have a significant effect on companies' internal systems.

Deputy Minister of Finance Huynh Quang Hai has called for continuing to review existing policies to promptly identify difficulties in the equitisation of and divestment from State-owned enterprises (SOEs), stepping up enterprise renovation and raising a sense of responsibility in State management of the field.

The Hanoi Stock Exchange (HNX) organised 16 auctions for divestment in 2020 with total transaction value of 3 trillion VND (130.2 million USD).

A total of 42.3 million State shares sold from January-October fetched nearly 1.04 trillion VND (44.75 million USD), according to the Hanoi Stock Exchange (HNX).

More than 1 trillion VND (43 million USD) was raised through 11 auctions of shares held by State-owned enterprises on the Hanoi Stock Exchange (HNX) in the first 10 months of 2020.

The Ministry of Construction recently approved a plan to divest all State capital at Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO).

Deputy Prime Minister Truong Hoa Binh chaired a meeting on August 10 to review draft decrees that amend and supplement a number of Government decrees on equitising State-owned enterprises (SOEs) and divesting State capital from businesses.

Deputy Prime Minister Truong Hoa Binh on August 6 requested the utmost effort from ministries, sectors, and State-owned enterprises (SOEs) to achieve the best result possible in equitising SOEs and divesting State capital from businesses.

Prime Minister Nguyen Xuan Phuc has issued Decision 908/QD-TTg approving the list of State-owned enterprises (SOEs) to implement divestment of State capital in 2020, which comprises 120 enterprises.

The Vietnam National Petroleum Group (Petrolimex) plans to sell 15 million treasury stocks in transactions held between June 16 and July 15 to mobilise capital for investment in 2020, announced chairman Pham Van Thanh at Petrolimex’s recent annual general meeting of shareholders.

State divestment is expected to lure foreign investors into and lift Vietnam’s non-life insurance market.

The successful equitisation and capital divestment of State-owned enterprises (SOEs) would create benefits that boosted the stock market and business performance, experts have said.

Ministries are working to convince Prime Minister Nguyen Xuan Phuc to amend divestment plans at some large State-owned enterprises (SOEs).