VN Government to divest from some big banks & corporations in 2016-2020

Last update 14:00 | 17/02/2017
VietNamNet Bridge – The Prime Minister’s newly released decision on the divestment plan in 2016-2020 includes many large corporations such as VNPT, MobiFone, Agribank and Vinacomin.

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Under the plan, of the 240 enterprises to be restructured in 2016-2020, the state will only keep 103 wholly state owned enterprises, which are ones operating in the fields of national defence, lottery, publishing houses and some large conglomerates.

These include 59 lottery companies, most of which belong to provincial and municipal authorities. Only Vietlott is under the management of the Ministry of Finance.

Fourteen enterprises operating in the field of publication will also continue to be state-owned enterprises.

As for large conglomerates, the state will hold 100 percent of capital in the Electricity of Vietnam (EVN), PetroVietnam (PVN), the Natural Resources and Environment Corporation, the National Electricity Transmission Corporation, Vietnam Railway Corporation, VATM (Vietnam Air Traffic Management), Northern Vietnam Maritime Safety Corporation, Southern Vietnam Maritime Safety Corporation and VNPost.

The number of enterprises where the state will hold less than a 50 percent stake will be  106 enterprises of this kind. The state will hold more than 65 per cent of four enterprises and 50-65 percent of capital of 27 enterprises.

Regarding banks, the state will only hold 100 percent of capital in five banks, including the Vietnam Bank for Social Policies, the Vietnam Development Bank and three commercial banks which it has bought at zero dong.

Agribank will no longer be a wholly state owned bank from 2020, but the state will still hold a 65 percent stake.

The state ownership ratio in Vinacomin, the nation’s largest coal miner, and PVEP, the oil & gas drilling and exploration company, will be lowered to more than 65 percent.

As such, four enterprises will still have state capital accounting for over 65 percent of total capital.

The Prime Minister’s newly released decision on the divestment plan in 2016-2020 includes many large corporations such as VNPT, MobiFone, Agribank and Vinacomin.

Among the enterprises which will have state capital accounting for 50-65 percent, there are many well-known names such as VNPT, MobiFone (telcos), Vinachem (chemicals), Vinafood 1, Vinafood 2 (rice exporter), Vinataba (tobacco) and Vinacafe.

At lead 106 enterprises will have the state capital ratio of less than 50 percent. These include the enterprises with ‘golden brands’ such as VTV Cab, VTV Broadcom, SJC and Saigon Tourist.

Meanwhile, the investors interested in construction firms’ shares have been encouraged by the news that the Ministry of Construction will withdraw all capital from 10 large corporations by 2018.

Deputy Prime Minister Trinh Dinh Dung has requested lowering the state capital ratios in five important corporations which hold huge assets, namely Vicem, HUD, Dong Da, Idico and Viglacera, to below 51 percent by 2019.

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This entry was posted in Doanh nghiệp nhà nước - State owned enterprises, Economics - Kinh tế and tagged , by Trần Đình Hoành. Bookmark the permalink.

About Trần Đình Hoành

I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn. I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law. I have published many articles on national newspapers and radio stations in Việt Nam. In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship. Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam. I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN. I study and teach the Bible and Buddhism. In 2009 I founded and still manage dotchuoinon.com on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development (cvdvn.net). I study the art of leadership with many friends who are religious, business and government leaders from many countries. In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống). In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success". I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.

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