Vietnam to Let All State-run Banks Go Public by 2010
Vietnam will privatize all state-owned commercial banks by 2010, the National Assembly Standing Committee was told yesterday September 21.
Accordingly, Vietnam will let the Bank for Agriculture and Rural Development (Agribank), the country's largest bank by assets, undergo equitisation in 2008 instead of sometime after 2010 as previously planned.
The government told the National Assembly, the top legislative body in Vietnam, Thursday that Agribank would first need to boost its financial capacity in late 2007 and its shares could be sold in 2008.
Meanwhile, the Bank for Foreign Trade of Vietnam (Vietcombank), and the Mekong Delta Housing Development Bank (MHB) would be partially privatized in 2007 as previously approved.
The Bank for Investment and Development of Vietnam (BIDV) and the Industrial and Commercial Bank of Vietnam (Incombank) will go public in 2007.
In a separate movement, Agribank scheduled to start selling 10-year and 15-year bonds worth VND3 trillion ($187 million) from October 10 to boost capital.
Agribank bonds will be listed at the Ho Chi Minh City Securities Trading Center and the bond holders would be given priority to acquire shares when the bank is partially privatised.
Vietcombank is expected to launch its initial public offering (IPO) in early 2007 while BIDV plans its IPO for the third quarter of next year.
The government planned to rearrange some 1,505 state owned enterprises (SOEs) from now until 2010, particularly in 2007-2008.
VnExpress Sep 21, Reuters
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