VietNamNet Bridge - The State plans to sell VND40 trillion worth of its capital in state-owned enterprises  (SOEs) in 2016.

 

Despite the heavy fluctuations of the global financial market, Vietnam still can attract foreign investors. The 2016 business environment report released by the World Bank and IFC showed that Vietnam has increased by three grades to the 90th position in the business environment ranking.

Edward Lee from Standard Chartered said Vietnam, together with Indonesia, continues to be the most attractive market in South East Asia this year. 

Foreign investors can save 19 percent of investment costs compared with the average cost in ASEAN, thanks to a cheap labor force. 

They also have great opportunities to buy shares of good SOEs which are under equitization. 

Meanwhile, many SOEs operating in important fields of the national economy, including power, transport, minerals and machine installation, will have IPOs.

A report shows that 143 share auctions were organized in 2015 on both the Hanoi and HCM City Stock Exchanges where 1.5 billion shares were put on offer.

Many SOEs operating in important fields of the national economy, including power, transport, minerals and machine installation, will have IPOs.

In Hanoi, the IPO of Vinacomin Power Company, a subsidiary of Vinacomin, the coal miner, made a record in terms of the volume of shares put into auction (240 million shares). 

The IPO of the Hai Phong Water Supply Company was the one with the highest number of investors (652). 

Meanwhile, the highest bidding price was VND274,200 per share, seen at the auction of Kim Lien Tourism Company’s shares in late 2015.

Investors paid special attention to the auction of 5 million shares offered by the Transport Hospital, the first hospital that made IPO. 

The state collected VND117 billion from the auction, which was much higher than the starting price of VND67 billion.

The share auction at the Hanoi Stock Exchange helped bring VND6 trillion in revenue to the state budget, while the global GDP grew by 3.1 percent only in 2015, or 0.2 percentage points lower than predicted.

At the HCM City Stock Exchange, the number of successful share auctions in 2015 increased by 11 percent compared to 2014 with VND4.452 trillion collected from the auctions last year.

Analysts commented that investors will have a lot of choices for investment in 2016 as a lot of ‘giants’ would make IPOs this year. 

These include the Vietnam Coal and Mineral Industries Group (Vinacomin), Viet Bac Mining Industry, a subsidiary of Vinacomin, Lilama, a machine installation corporation, Vinatea (tea maker), Ha Tinh Pharmacy and Kim Lien Food & Tourism Company.

There are also the other big names, the IPOs of which have been long awaited – MobiFone, the largest mobile network operator in Vietnam, and Satra (trade corporation) and Ben Thanh Corporation.


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