3:56:45 PM | 9/7/2008
The Vietnam Association of Financial Investors (VAFI) has sent its proposals to the Ministries of Finance, Planning and Investment, and Government Office to help boost the share sales in state-owned firms which was standstill in the first half this year.
The state should hold controlling stake of up to 90 per cent-95 per cent in state-owned enterprises in order to transform them into the joint stock concerns, VAFI General Secretary Nguyen Hoang Hai said.
With the current difficulties on the stock market, the government should offer only a small amount of shares worth less than VND50 billion (US$3.1 million) in par value in an initial public offering (IPO), he noted.
These two measures will help speed up the privatization process, but not impact on the stability of the stock market, and damage the state capital, Hai explained.
VAFI emphasized that the slow privatization will have bad impact on the economy, such as the ineffective use of state capital in SOEs, regular wrongdoings due to non-transparent financial mechanism, and loss of state assets due to SOEs weak competitiveness.
&ldquoWe hope that the number of state-owned enterprises in which the state holds 100 per cent stake will be reduced by 90 per cent in the next seven years,&rdquo Hai added. (Vietnam Economic Times, Investment)
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