Gov't keeps minimum ownership of 65% in major areas
The seven major areas include finance, banking, and aviation industries.
The seven major areas include finance, banking, and aviation industries.
During the 2016-2020 period, only 39 were sold on the Government's list of 128 must-be-privatized SOEs in 2020, meeting just 30% of the target.
This would be the first step for Vietnam’s state firms to list shares on international stock exchanges.
Mobifone, Electricity Vietnam (EVN), and Viettel, three state-owned enterprises (SOEs) that represent three economic sectors of telecommunication, energy and defense industry, are selected to take part in the first stage of the project.
Only seven state firms have completed their respective privatization process in the first nine months of 2020.
State firms that have completed the privatization process are expected to float shares on local bourses and create space for more foreign investors to invest in the local stock market.
Hanoi eyes 10% annual growth of business creation, or 30,000 per year, while the SMEs would create 150,000 new jobs annually during the next five years.
Some large SOEs are facing difficulties in valuation, mainly due to complicated financial situations, which causes delays in the privatization process.
State-owned enterprises supply energy, transport, and water to millions in Asia and the world. Managing them better will help consumers and governments alike.
The private sector made up 97% of total enterprises nationwide reporting business results as of end-2018, with 43.7% of the sector generating profits and 48.6% suffering losses.