VietNamNet Bridge - The Prime Minister’s newly released decision on the divestment plan in 2016-2020 includes many large corporations such as VNPT, MobiFone, Agribank and Vinacomin.

Under the plan, of the 240 enterprises to be restructured in 2016-2020, the state will only keep 103 wholly state owned enterprises, which are ones operating in the fields of national defence, lottery, publishing houses and some large conglomerates.

These include 59 lottery companies, most of which belong to provincial and municipal authorities. Only Vietlott is under the management of the Ministry of Finance.

Fourteen enterprises operating in the field of publication will also continue to be state-owned enterprises.

As for large conglomerates, the state will hold 100 percent of capital in the Electricity of Vietnam (EVN), PetroVietnam (PVN), the Natural Resources and Environment Corporation, the National Electricity Transmission Corporation, Vietnam Railway Corporation, VATM (Vietnam Air Traffic Management), Northern Vietnam Maritime Safety Corporation, Southern Vietnam Maritime Safety Corporation and VNPost.

The number of enterprises where the state will hold less than a 50 percent stake will be  106 enterprises of this kind. The state will hold more than 65 per cent of four enterprises and 50-65 percent of capital of 27 enterprises. 

Regarding banks, the state will only hold 100 percent of capital in five banks, including the Vietnam Bank for Social Policies, the Vietnam Development Bank and three commercial banks which it has bought at zero dong.

Agribank will no longer be a wholly state owned bank from 2020, but the state will still hold a 65 percent stake.

The state ownership ratio in Vinacomin, the nation’s largest coal miner, and PVEP, the oil & gas drilling and exploration company, will be lowered to more than 65 percent.

As such, four enterprises will still have state capital accounting for over 65 percent of total capital.

The Prime Minister’s newly released decision on the divestment plan in 2016-2020 includes many large corporations such as VNPT, MobiFone, Agribank and Vinacomin.

Among the enterprises which will have state capital accounting for 50-65 percent, there are many well-known names such as VNPT, MobiFone (telcos), Vinachem (chemicals), Vinafood 1, Vinafood 2 (rice exporter), Vinataba (tobacco) and Vinacafe.

At lead 106 enterprises will have the state capital ratio of less than 50 percent. These include the enterprises with ‘golden brands’ such as VTV Cab, VTV Broadcom, SJC and Saigon Tourist. 

Meanwhile, the investors interested in construction firms’ shares have been encouraged by the news that the Ministry of Construction will withdraw all capital from 10 large corporations by 2018.

Deputy Prime Minister Trinh Dinh Dung has requested lowering the state capital ratios in five important corporations which hold huge assets, namely Vicem, HUD, Dong Da, Idico and Viglacera, to below 51 percent by 2019.