VietNamNet Bridge - Experts believe that the state should not only sell its shares in 12 large corporations as instructed by the Prime Minister, but also sell shares in other enterprises, including commercial banks.

Vietcombank, one of the largest commercial banks, has signed an MOU to sell 7.73 percent of its stake to GIC (Government Of Singapore Investment Corporation).

Vietcombank’s chair Nghiem Xuan Thanh said on Tuoi Tre that if the agreement is approved by state management agencies, this would mark an important milestone in the bank’s operation. 

However, even if the agreement between Vietcombank and GIC is implemented, the proportion of stakes to be sold will be small compared with the proportion suggested by Vietcombank. 

The state will still hold 70 percent of shares in the commercial bank.

Experts believe that the state should not only sell its shares in 12 large corporations as instructed by the Prime Minister, but also sell shares in other enterprises, including commercial banks.

Prior to that, in a document to the government, Vietcombank proposed to reduce the state’s ownership ratio in commercial banks to 51 percent.

Not only Vietcombank but some other banks also want to reduce the state’s ownership ratios, but they are meeting obstacles. 

VietinBank, for example, has 65 percent of its stakes held by the State, the floor according to current laws. The bank’s managers are building a plan to ask the government to cut the proportion of stakes the state holds to 51 percent.

An analyst said that 51 percent would be a ‘reasonable ownership ratio’ for the State. 

While banks need to increase capital to ensure growth, capital adequacy ratio and serve the development, the state, with acshort budget, cannot provide more capital. 

Therefore, it would be better if it allows banks to call for capital from other investors.

“With 51 percent, the state will still hold controlling stakes and determine the banks’ operation,” he said, adding that if foreign capital helps banks operate better, the State will make higher profits from dividends.

Tuoi Tre quoted its source as reporting that VietinBank suggests a 5-year roadmap to reduce the state’s ownership ratio in the bank to 51 percent.

Economists have also urged the government to sell stakes in other enterprises, not only in the 12 enterprises mentioned at the latest government press conference.

Tran Du Lich, a renowned economist, commented that the state holds a high number of enterprises and it should divest from them.

There are still many enterprises where the state still holds 20-30 percent of capital. 

“It should sell all the enterprises in the business fields where it doesn’t need to invest,” he said.

Nguyen Viet Duc, a senior researcher at MBS, said on Cafebiz that the government’s clear message on the capital withdrawal plan has helped make the Vietnamese stock market more attractive to foreign investors, with the P/E (price on earnings ratio) at 16.


Kim Chi