Vietnam to Privatize Big Enterprises This Year

The government of Vietnam has planned to sell shares in some large state-owned enterprises this year as part of its plans to complete the privatization of major SOEs by 2010, the Ministry of Planning and Investment-run Dau Tu Chung Khoan newspaper reported.

 

The Bank for Investment and Development of Vietnam (BIDV) will become the third state-run lenders to sell shares to public, behind Vietcombank in 2007 and Vietinbank in 2008.

 

Deputy Prime Minister Nguyen Sinh Hung approved for BIDV to appraise its corporate value December 31 and launch an initial public offering in the second quarter of 2009.

 

MobiFone, the country’s biggest mobile phone operator, will also carry out its IPO in the second quarter after completing its corporate value appraisal by Credit Suisse in the first quarter.

 

Other followers in the remaining months of the year will be Vinaphone, another arm of the Vietnam Post and Telecommunications Group besides MobiFone, Vietnam Textile and Garment Group (Vinatex), and Vietnam Airlines.

 

Under the plan, Vietnam will have to privatize 948 enterprises between 2008 and 2010, after it sold shares in only 73 SOEs in 2008, or 28 per cent of the plan. The Ministry of Planning and Investment had set a target to privatize 19 SOEs in 2009 alone. (Securities Investment)