return icon Vietnamnet.vn

Who will be the buyers of SOE shares?

VietNamNet Bridge - Most state-owned enterprises (SOEs) operate in the pivotal business fields of the national economy. Therefore, experts say, Vietnam needs to be careful when choosing new owners for the enterprises.
VietNamNet Bridge - Most state-owned enterprises (SOEs) operate in the pivotal business fields of the national economy. Therefore, experts say, Vietnam needs to be careful when choosing new owners for the enterprises.

SOEs told to divest non-core business fields, but let grass grow under feet


{keywords}

Nguyen Dai Thang, Economics & Management Faculty’s Dean of the Hanoi University of Technology, noted that Vietnam should keep a ‘policy of openness’, not ‘open completely wide’ policy when inviting foreign investors to buy state owned enterprises (SOEs).

Thang, while agreeing that it is necessary to attract foreign investors to speed up the SOEs equitization, warned that Vietnam will face high risks if it just tries to sell shares, but does not choose investors carefully. 

“Selling SOEs to get money is not the only purpose of the equitization,” he commented.

The economist believes that Vietnam should only attract foreign investors to business fields which Vietnam is weak at, while there is no need to call for foreign investment in fields in which Vietnam has an advantage.

Thang went on to say that it would be better to prioritize to sell shares to loyal investors such as the ones from Japan, South Korea and Singapore, and selling shares to Chinese investors is not encouraged.

“In foreign direct investment (FDI), Chinese investors are not highly appreciated because of small investment capital, quality and technology transfer,” he explained.

He noted that as for Chinese investors, ‘their deeds do not match their words’, that Chinese make investment not just for business purpose, but for many other purposes.

An analyst said he agrees with Thang that Chinese investors should not be welcomed because of the poor reputation Chinese have had in Vietnam in both foreign invested and ODA-funded (official development assistance) projects.

“Chinese technologies are low quality. A lot of projects implemented by Chinese contractors have problems,” he said.

Dr. Nguyen Tri Hieu, a renowned economist, commented that it would be better for Vietnam, a small emerging economy, to apply necessary measures to control foreign capital, and that there should be an independent supervisory agency under the National Assembly.

Hieu warned that it is nearly impossible to fulfill the plan on equitizing more than 400 SOEs this year because of many reasons, including the foreign investors’ hesitance and Vietnam’s low credit rating. Besides, if the US FED raises the prime interest rate as forecast, the move would prevent capital flow to Vietnam.

Therefore, instead of trying to equitize all the SOEs as planned, Vietnam should focus on equitization quality.

Hieu believes that Vietnam selling SOEs to Japan and South Korea, loyal investors who have sustainable relations with Vietnam would be the optimal choice for Vietnam at this moment. 

Meanwhile, it is necessary to be cautious when doing business with China.

Dat Viet


MORE NEWS

VIETNAM BUSINESS NEWS DECEMBER 8

Business association helps connect Vietnamese, Malaysian firms

PM’s Europe trip spreads message about strongly recovering Vietnam

Prime Minister Pham Minh Chinh’s trip to attend the ASEAN-EU Commemorative Summit and visit Luxembourg, the Netherlands, and Belgium from December 9 to 15 will extend a message of a strongly recovering Vietnam

VIETNAM NEWS HEADLINES DECEMBER 8

PM’s trip to elevate Vietnam – EU to new height: diplomat

Vietnam changes rapidly after 25 years of Internet connection

The decision to connect to the Internet 25 years ago was a brave act, showing a long-term vision, contributing to comprehensive changes in the country, experts said at the 25th anniversary of Vietnam's Internet and Internet Day 2022 on December 7.

Policies needed to ensure sharing economy development is on-track

Sharing economy was not only creating opportunities to increase income but also opening up a new and flexible market, thereby creating a growth engine and increasing productivity for micro, small and medium – sized enterprises.

Some businesses are still paying high dividends

While many enterprises are facing difficulties, some plan to spend trillions of VND to pay dividends and buy treasury stocks.

Vietnamese box office smash to premier in Australia

According to Box Office Vietnam, The Girl from the Past has generated revenue of VND53 billion (US$2.2 million) after debuting in Vietnamese cinemas.

French Senate President arrives in Hanoi, beginning official visit to Vietnam

French Senate President Gérard Larcher arrived in Hanoi on December 8 morning, beginning an official visit to Vietnam at the invitation of National Assembly Chairman Vuong Dinh Hue.

Vietnamese film to compete at Golden Globe Awards

“Dem Toi Ruc Ro”, known as “The Brilliant Darkness” in English, a movie on domestic violence by American director Aaron Toronto, features in this year’s list of Golden Globe Awards’ nominees.

PM attends inauguration of Vietnam International Defence Expo 2022

Prime Minister Pham Minh Chinh and military officers pressed buttons inaugurating the Vietnam International Defence Expo 2022 at Gia Lam airbase in Hanoi on December 8.

Money borrowers face black credit traps on online lending apps

A lot of money borrowers have been recently cheated on online lending applications which seem to ask for simple procedures at first but then claim cut-throat interest rates.

Young scientist becomes first Vietnamese awarded by UK Royal Aeronautical Society

With the Young Persons’ Achievement Award, Dr. Nguyen Huyen Duc has become the first Vietnamese scientist to receive the prize from the UK’s Royal Aeronautical Society (RAeS).

Revelations of an e-cigarette seller

After exchanging text messages via social media, VietNamNet’s reporter, who acted as an e-cigarette buyer, decided to meet the seller and discovered many things that made him shiver.

Vietnam’s fruits enter choosy markets

In the domestic market, a red-flesh pomelo is priced at VND23,000-45,000/kg. In the US, it is VND535,000 per kilogram.

Vietnam imports nearly US$190 million of pork in Jan-Oct

Vietnam had imported 89,000 tons of pork products worth US$189.02 million in the year to October, contracting over 34% in volume and nearly 40% in value year-on-year, according to the Foreign Trade Agency under the Ministry of Industry and Trade.
back_to_top