If the proposal of the Ministry of Transport is approved, Airports Corporation of Vietnam (ACV) will return to being a 100 per cent state-owned company after its equitisation in April 2016. The MoT would return ACV into the folds of the state to allow it to maintain aviation infrastructure The Ministry of Transport (MoT) has recently tabled a proposal for the prime minister on the re-acquisition of the foreign-owned stake in ACV to make it once again a wholly state-owned company in order to ensure national security. At present, MoT is currently the largest shareholder of ACV with 95.4 per cent. With the market cap of VND180 trillion ($7.82 billion) as of September 3, ACV is the sixth largest enterprise on the Vietnamese stock market. It is also an attractive stock in the eyes of a number of foreign investment funds, including Dragon Capital and VinaCapital. According to the MoT, after the equitisation of ACV, the ministry was left in charge of the assets relating to aviation … [Read more...] about ACV to come back 100 per cent state owned enterprise?
State owned enterprises
Red ink still dominates at State-owned enterprises
A view of the Ninh Bình Nitrogenous Fertiliser Plant, managed by the Việt Nam Chemicals Corporation (Vinachem). — Photo zing.vn At the Việt Nam Industrial Construction Corporation (Vinaincon)’s annual general meeting this year a report from its supervisory board said the company achieved only 77.5 per cent of its revenue target in 2018. It reported sales of VNĐ3.25 trillion (US$139.5 million) and after-tax loss of VNĐ284 billion ($12.2 million). Its subsidiary, Quang Sơn Cement company, made a loss of VNĐ361 billion ($15.5 million). This year Vinaincon, a State-owned company, estimates it is likely to make a loss of VNĐ95 billion since Quang Sơn, the biggest contributor to its revenues, is forecast to remain in the red. The Ninh Bình Nitrogenous Fertiliser Plant, managed by the Việt Nam Chemicals Corporation (Vinachem) is in a similar situation. It is struggling to maintain production and reduce … [Read more...] about Red ink still dominates at State-owned enterprises
Equitization of State-owned enterprises remains slow: official
The event was held following the Government’s regular meeting and presided over by Minister-Chairman of the Government Office Mai Tien Dung. Mai said only two SOEs had their equitisation plans approved with total value of VND 295 billion (USD 12.68 million) in the first four months of 2019. From 2016 to April 2019, 161 SOEs had equitization plans approved with total value of VND 442 trillion (USD 19.11 billion), including VND 206 trillion (USD 8.9 billion) of State capital, she added. The remaining number of SOEs that must be equitised is 97, accounting for 76 percent of the assigned plan. Photo for illustration While explaining about this slow progress, Mai said some ministries, sectors, localities, economic groups and State-owned corporations have yet been active and serious in implementing equitisation, divestment and business restructuring plans. Problems related to finance, land, and labor have also hindered the process, the Deputy Minister said. Mai … [Read more...] about Equitization of State-owned enterprises remains slow: official
Equitisation of State-owned enterprises remains slow: official
Illustrative image (Source: VNA) Hanoi (VNA) – The equitisation of State-owned enterprises (SOEs) is still slow, failing to reach the rate of progress as directed by the Prime Minister, Deputy Minister of Finance Vu Thi Mai said at the Government’s regular press briefing in Hanoi on May 4. The event was held following the Government’s regular meeting and presided over by Minister-Chairman of the Government Office Mai Tien Dung. Mai said only two SOEs had their equitisation plans approved with total value of 295 billion VND (12.68 million USD) in the first four months of 2019. From 2016 to April 2019, 161 SOEs had equitisation plans approved with total value of 442 trillion VND (19.11 billion USD), including 206 trillion VND (8.9 billion USD) of State capital, she added. The remaining number of SOEs that must be equitised is 97, accounting for 76 percent of the assigned plan. While explaining about this slow progress, Mai said some ministries, … [Read more...] about Equitisation of State-owned enterprises remains slow: official
PM chairs conference on renovating State-owned enterprises
PM Nguyen Xuan Phuc chairs conference on renovating State-owned enterprises, Ha Noi, November 21, 2018 - Photo: VGP The work serves as an important tool to ensure the effective implementation of macro stabilization and inflation control policies, contributing significantly to socio-economic development. Among the attendants are Deputy PM Vuong Dinh Hue, head of the steering committee on business renovation and development, Deputy PM Trinh Dinh Dung, over 350 delegates from ministries, sectors and localities; State-owned groups and corporations; and other organizations, both at home and abroad. Recent results show that equitization is an important solution in reshuffling, reforming and restructuring SOEs. The results of equitization and divestment have produced positive impacts on the development of the stock market, while improving the operational efficiency of businesses after equitization. Most of the equitized SOEs have reported effective business and … [Read more...] about PM chairs conference on renovating State-owned enterprises
HCM City urged to speed up equitisation of State-owned enterprises
Deputy Prime Minister Vuong Dinh Hue has urged leaders of HCM City to promote and arrange the equitisation of state-owned enterprises that operate in HCM City.— Photo baodautu.vn Deputy Prime Minister Vuong Dinh Hue has urged leaders of HCM City to promote and arrange the equitisation of state-owned enterprises that operate in HCM City. Hue, who is head of the Government Steering Committee on Corporate Renovation and Development, praised the city’s earlier steps to equitise companies in a meeting last week, but pointed out that emerging legal issues and implementation had slowed progress. However, he noted that the Prime Minister will consider postponing equittisation of some of the city’s State-owned enterprises. Hue said that the city’s equitisation rate was slower than the nation’s. He said that far more State-owned enterprises should be equitised, except in security and military. “The city should withdraw State capital from enterprises, even … [Read more...] about HCM City urged to speed up equitisation of State-owned enterprises
Lingering problems in valuation of state owned enterprises
The valuation process of VTVCab is under scrutinty VTVCab is currently under scrutiny for its valuation process. The cable channel firm decided to put nearly 42.3 million of its shares on the market with the starting price of VND140,900 ($6.2). However, after a quick look at the business targets that VTVCab set for itself after the equitisation as well as its financial results in the past three years, investors could easily tell that the price-per-earnings ratio was sky high at 334x. This is the highest P/E ratio in the Vietnamese stock market so far. Since last year, VTVCab’s valuation has been a major cause of controversy. In May 2017, state auditors noted that the total amounts of the assets of VTVCab stood at VND4.27 trillion ($187 million), which is VND279 billion ($12.2 million) higher than the initial quotes by CPA Vietnam Auditing Company Ltd. According to State Audit of Vietnam, CPA Vietnam has to adjust its valuation of VTVCab and should not include a certain number … [Read more...] about Lingering problems in valuation of state owned enterprises
Vietnam to equitise 137 more state-owned enterprises by 2020
Prime Minister Nguyen Xuan Phuc has recently approved a plan on restructuring state-owned enterprises (SOEs) in the 2016-2020 period.Under the plan, during the 2016-2020 period, the government will equitise 137 SOEs and continue to hold a 100% stake in 103 SOEs, excluding defence and military enterprises, the State Capital Investment Corporation and the Vietnam Asset Management Company. Vietnam to equitise 137 more state-owned enterprises by 2020 The plan is aimed to promote divestment from non-core businesses and increase the SOEs’ financial as well as management capacity. It is also expected to deal with the ineffective operations of SOEs and loss-making projects, particularly 12 projects managed by the Ministry of Industry and Trade.The government has assigned the Ministry of Finance to issue decrees which aimed at clarifying accountability of consultancy organisations in evaluating state assets owned by SOEs for privatisation and divestment, as well as implementing … [Read more...] about Vietnam to equitise 137 more state-owned enterprises by 2020
Special committee to manage VND5,400 trillion capital at State-owned enterprises
The Hanoitimes - Prime Minister has signed a decision to set up a working group in charge of forming a special committee dedicated to manage huge capital and assets worth some VND5,400 trillion (US$237.89 billion) at state-owned enterprises (SOEs). Deputy Prime Minister Vuong Dinh Hue is the head of the working group, which is also include four deputy heads --- Nguyen Hoang Anh, former Secretary of Cao Bang Province Party Committee, Minister-Chairman of Government Office Mai Tien Dung, Minister of Planning and Investment Nguyen Chi Dung and Minister of Finance Dinh Tien Dung. The special committee will manage state capital at 30 state-owned enterprises, including the National Oil and Gas Group The working group will act as a consultant to the Prime Minister in setting up the special committee. During a last year’s conference between the government, ministries, and localities, Phuc stressed that this committee, which represents ownership of … [Read more...] about Special committee to manage VND5,400 trillion capital at State-owned enterprises
Vietnam accelerates divestment from State-owned enterprises
Earlier in November 2017, the State also divested VND257 billion (US$11.3 million) worth of its stakes in the Vietnam Dairy Products Joint Stock Company (Vinamilk), thereby fetching VND8.73 trillion (US$384.12 million). So, after Vinamilk, Sabeco has marked a significant milestone in the process of State capital divestment in State-owned enterprises (SOEs), which is one of the important moves to restructure SOEs in line with the set direction.One of Vietnam’s fiscal challenges is the rapid increase in public debt, close to the permitted debt ceiling; the inefficient use of public debts; and the shrinking room for fiscal policy. Meanwhile, the open and extensively integrated economy with an increasingly fierce competitive environment requires that financial instruments as well as the budget must be strong enough to effectively perform the role of directing, regulating, distributing and supporting the economy. Therefore, in reform priorities, it is essential to effectively … [Read more...] about Vietnam accelerates divestment from State-owned enterprises