Divestment in State-owned enterprises doing business efficiently: Rushing divestment may disrupt the market

20:57 | 17/09/2016 Finance Follow english.haiquanonline.com.vn on

VCN- Speaking to the press on the afternoon of September 14, 2016, Mr. Dang Quyet Tien, the Deputy Director of the Corporate Finance Department said that the shares of Viet Nam Dairy Products Joint Stock Company (Vinamilk) would be sold within the year. Also, 9 other enterprises will implement divestment in early 2017 at the latest.

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divestment in state owned enterprises doing business efficiently rushing divestment may disrupt the market

Illustrative photo.

As the Customs Newspaper reported, the Government requested the State Capital Investment Corporation (SCIC) to develop a roadmap for divestment of 10 large State-owned enterprises.

The 10 enterprises are: Bao Minh Corporation; Vietnam National Reinsurance Corporation; Ha Giang Engineering and Mineral Resource Joint Stock Company; Tien Phong Plastics Joint Stock Company; Vietnam Infrastructure and Real Estate Company; Binh Minh Plastics Company; Vietnam Dairy Products Joint Stock Company; FPT Joint Stock Company; and Sa Giang Import-Export Joint Stock Company and FPT Telecom.

After receiving the tasks assigned by the Government, SCIC has developed a plan and roadmap for divestment of Vinamilk in 2016 first. The 9 remaining enterprises shall be divested in this year and early next year.

The divestment of these State-owned enterprises should comply with an appropriate roadmap to maximize the benefits to the State, develop the market and to not cause large fluctuations in other smaller scale businesses.

Particularly with Vinamilk, Mr. Dang Quyet Tien considered this enterprise as "a beautiful flower" with State capital of 100,000 billion vnd. Therefore, when performing divestment, the Government should be cautious. Also, the market will have a negative impact if authorities try to divestment quickly at a cheap price. So, there needs to be a roadmap and discussion with investors on this matter.

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Regarding the role of the Ministry of Finance in the divestment of Saigon Beer Alcohol Beverage Joint Stock Company (Sabeco) and Hanoi Beer Alcohol Beverage Joint Stock Company (Habeco), Mr Tien said that these 2 enterprises were still managed by the Ministry of Industry and Trade, not yet handed over to SCIC. Thus, the Ministry of Finance shall only monitor and give opinions if the Ministry of Industry and Trade requires.

By Hong Van/ Hoang Anh

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Vietnam State-owned divestment market enterprise corporate finance Department dairy Government

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