Vietnam Govt Moves to Revise Privatization Process

The Vietnamese government has instructed the Ministry of Finance to work with relevant agencies to revise the existing decree governing the privatization of state-owned enterprises (SOEs), aiming to speed up the share sale process after poor performance in 2008.  

A new decree is to be drafted, which will govern the transformation of wholly SOEs into joint stock companies, and selling of state stakes in privatized businesses.

Only 74 SOEs were privatized last year, accounting for 25 per cent of the government’s annual target and less than 50 per cent of the previous year’s figure. The situation is attributed to a 70 per cent decline in the country’s stock market, which made firms cautious about launching their IPO.

 

The ministry will also join forces with the State Securities Commission to take various measures to ensure the sustainable development of the stock market, as part of efforts to support the privatization process.

During the 2008-2010 period, Vietnam targets to sell shares in 948 enterprises out of a total of 1,535 SOEs whose business need to be rearranged. (Vneconomy, VNA)