With the slow equitisation and restructuring of major state-owned enterprises, the Vietnamese government has been urged to accelerate the process with an aim to create more opportunities for the private sector.

State-owned enterprises (SOEs) have been advised to remain cautious when making outward investments because the possibility of success is low.

The Vietnam National Shipping Lines (Vinalines) will organise its general shareholders’ meeting in Quarter 2, officially changing its trading name to Vietnam Maritime Corporation (VIMC).

The Government Inspectorate will carry out an inspection targeting State-owned enterprises (SOEs) in which the Ministry of Industry and Trade (MoIT) controls State capital.

The poor performance and small sales percentage of many such enterprises have disheartened many interested parties.  

January 2018 witnessed many IPOs of large corporations, including Binh Son Petrochemistry & Refinery JSC (BSR, UpCom), PVOil (OIL, UpCom), PVPower (POW, UpCom) and the Vietnam Rubber Group (GVR, UpCom).

Except Sabeco and Vinamilk shares, the other divestments by the state have not succeeded as expected.

The business performance of state-owned enterprises is often unclear because of lax management. At many large companies, problems were discovered only after the firms had incurred losses of trillions of dong.

VietNamNet Bridge - The list of SOEs (state owned enterprises ) subject to equitization is long with many well-known names. 

Struggling in recent times, the equitization of Vietnam’s main State-run film studio seems to have set the industry back even further.

Many investors have been reluctant to buy a stake of equitized SOEs (state owned enterprises) because of problems in current regulations and the internal weaknesses of the enterprises.

The posts of chair or general director of large state-owned conglomerates such as oil and gas, electricity, mining, shipbuilding and shipping are very powerful. However, the positions have led many businessmen to prison.

VietNamNet Bridge - Many foreign investors that want to become strategic partners of large state-owned conglomerates are finding it difficult to negotiate prices. 

VietNamNet Bridge - A number of changes in key personnel in some state-owned enterprises (SOEs) are not expected to affect the enterprises’ production and business, experts say.

VietNamNet Bridge - More than 96 percent of SOEs slated for equitization have been equitized, but only 8 percent of the state’s capital has been transferred to the private sector. 

The state plans to complete the divestment from Saigon Beer, Alcohol and Beverage JSC (Sabeco) and Hanoi Beer, Alcohol and Beverage JSC (Habeco) within 16 months.

Analysts have noted that equitized SOEs tend to choose  conglomerates with powerful financial capability - real estate developers or financiers - which do not have relations to their core business fields, as their strategic shareholders. 

VietNamNet Bridge - Foreign investors have shown strong desire to buy MobiFone’s stakes. The Vietnamese mobile network operator, after a lot of delays, will undergo equitization in 2016.

The Ministry of Transport (MOT) has been asked to thoroughly consider the Vietnam Airlines Corporation’s (VNA) proposal on setting up a new carrier, a proposal criticised by some as not transparent enough.

 Vietnam Airlines’ spokesperson Le Hoang Dung said the national flag carrier was planning to privatise VASCO - Vietnam Air Services Company.