Vietnam to Sell US$54Bln Stakes in State-owned Enterprises in 2008-09

Vietnam will sell about US$54 billion worth stakes in its state-owned telecom and energy enterprises and banks and list them on the stock market in the next two years, said a report released at “Investment Options in Vietnam” seminar on September 11 in Ho Chi Minh City.

 

Vietnam’s leading telecom names including MobiFone, Vinaphone and military-run Viettel will offer shares worth $15 billion, the report said.

 

The Bank for Foreign Trade of Vietnam (Vietcombank), Bank for Investment and Development of Vietnam (BIDV) and Mekong Housing Bank will sell $12 billion worth stakes whilst energy companies around $10 billion.

 

However, the detailed ratios of stakes in these enterprises and banks have not been specified at the event, however.

 

Over 130 representatives from risk investment funds, pension funds and securities brokers with 50 executives from foreign institutions attended the conference.

 

Vietnam is now imposing a 30 per cent cap on foreign investment in the commercial joint stock banks and 49 per cent cap in other sectors, state media reported.

 

Notably, state-owned Vietnam National Oil and Gas Group (PetroVietnam) recently has completed privatization of eleven affiliates and auctioned 289.5 million shares, or 94.2 per cent, and raised VND14.96 trillion ($935 million).

 

Dinh La Thang, President of PetroVietnam’s Board of Directors said at a recent conference in Hanoi that his company will restructure its affiliates and reduce state-owned stakes to VND4.611 trillion ($288.18 million) from post-privatized VND7.535 trillion ($470.9 million). (Local sources)