Sat. Mar 2nd, 2024

VietNamNet Bridge – Stock investors expect to see more good commodities to be
marketed soon in 2013, when a series of state owned enterprises go equitized in
the year after many years of preparation.

Vietnam, equitization, SOEs, slowdown, mechanism
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Bui Duc Hoan, General Director of Vilico, a livestock breeding company, has
announced that the company would put 26.69 million shares, or 34.9 percent of
its chartered capital, into auctions on March 5, 2013. Vilico is following
necessary procedures to be able to organize a bid at the Hanoi Stock Exchange.

Hoan has affirmed that the equitization process would be implemented exactly in
accordance with the roadmap and the instruction by the Prime Minister. Some
investors have come to learn about the share auctions, according to Hoan, but no
official statement can be made at this moment, since the involved parties are
still under negotiations.

On March 6, the Sugar and Sugar Cane Corporation No. 2 would make IPO (initial
public offering) at the HCM City Stock Exchange to sell 16,765,900 shares, or
24.47 percent of its chartered capital.

The year 2013 would also witness the IPOs of many giants, including Vietnam
Airlines, the national flag air carrier which now holds the biggest domestic
aviation market share.

Under the restructure plan approved by the government, Vietnam Airlines, which
has the chartered capital of VND8,942 billion, would have 65-75 percent of the
stakes to be held by the State. After the equitization, Vietnam Airlines would
have one holding company, nine dependent units and 26 subsidiaries.

It is expected that the corporate valuation would be completed by April 1, 2013,
at the latest to ensure the equitization plan implementation on schedule.

Also in 2013, Vinamotor, an automobile manufacturer, would continue its
restructure plan approved by the governing body – the Ministry of Transport. It
is expected that the equitization of the holding company would be completed this

Meanwhile, Vinamotor would restructure its capital contribution in dependent
units, one-member limited company and subsidiaries. Besides, Vinamotor would
also withdraw capital from some enterprises as initially planned and bring
unprofitable businesses to bankruptcy.

Viglacera, the glass and tile manufacturer has confirmed that it would make IPO
by September 2013 at the latest, when it would sell 20 percent of its chartered
capital. The plan on equitizing the holding company Viglacera is now awaiting
the approval by the Ministries of Construction and Finance.

Vinatext, the textile and garment group has just stated that it would make IP in
June 2013, after the two year delay.

The strong determination by state owned enterprises makes people believe that
the equitization process would be accelerated this year. However, the most
important factor which plays the decisive role in the success of the
equitization is the new decree on state owned enterprise equitization which is
expected to come out in 2013.

The new decree is believed to comprise of new provisions which would facilitate
the process of shifting state owned enterprises into joint stock companies.

The draft decree says that equitizing enterprises can negotiate directly with
strategic shareholders and sell stakes to them at negotiable prices before they
sell the remaining stakes to the public. This would help enterprises ease the
procedures to follow and the cut the time they have to spend.

However, the enterprises that make IPO before the new decree takes effects would
have to follow the old regulations when choosing strategic partners.


By vivian