26 enterprises’ equitisation plans approved in seven months

Prime Minister Nguyen Xuan Phuc (Photo: VNA) Hanoi (VNA) – The fulfilment of the gross domestic product (GDP) growth of 6.7 percent in 2017 requires high political determination from ministries and departments as well as corporations, businesses and people, Prime Minister Nguyen Xuan Phuc stressed at a meeting in Hanoi on August 12. Addressing the conference between the Government’s Standing Board and ministries, sectors, economic groups and corporations, the PM noted that in order to realise the aforesaid target, the growth in the six remaining months of this year must be at a high level of 7.42 percent. He stressed that this is an important political task of all sectors, especially agriculture, industry, construction, processing and manufacturing. [National Assembly targets 6.7-percent GDP growth in 2017] According to the Ministry of Planning and Investment, the surging GDP in the second quarter raised the January-June growth rate to 5.73 percent. The service sector made the biggest contribution to the overall growth (2.59 percentage points), particularly in wholesale, retail, accommodation, catering, finance, banking, insurance, and real estate. The total volume of international tourists to Vietnam in the period was 7.42 million, a year-on-year rise of 28.8 percent. While the mining industry suffered from a sharp decline, the agriculture, forestry and fishery sectors have recovered with a growth rate of 2.65 percent. The average consumer price index (CPI) rose by 3.91 percent in the first seven months, below the National Assembly’s set target of 4 percent. …... [read more]

Vietnam can obtain total export revenue of US$200 billion this year, up 13% versus last year, said Nguyen Phu Hoa, deputy head of the Export-Import Department under the Ministry of Industry and Trade. A container ship loads cargo at a Vietnam port. Vietnam can obtain total export revenue of US$200 billion this year But the nation’s import bill may amount to US$205 billion, a year-on-year increase of 17%, he told the Export Forum 2017 held on August 9 by the Trade and Investment Promotion Center of HCMC (ITPC). This means trade would swing back into deficit, US$5 billion, this year after the country recorded a trade surplus of US$2.7 billion last year. According to data of the General Department of Vietnam Customs, January-July export revenue totaled over US$115 billion, increasing nearly 19% over the year-ago period. There were 20 commodities with export revenue exceeding US$1 billion, and in particular, eight of them obtained export revenue of more than US$3 billion. Industry associations have forecast a surge in exports of key items including farm produce, seafood and forestry products in the remaining months of the year as enterprises are shifting to exporting goods of higher value. Meanwhile, Vietnam’s imports in the first seven months of the year rose 24% to more than US$118 billion. As a result, the period saw a trade deficit of over US$3 billion. According to the Ministry of Industry and Trade, Vietnam’s economy will remain export-dependent in the years to come. Early this month, the Prime Minister…... [read more]

NDO/VNA – The fulfillment of the gross domestic product (GDP) growth rate of 6.7% in 2017 requires great political determination from ministries and departments, as well as corporations, businesses and people, Prime Minister Nguyen Xuan Phuc stressed at a meeting in Hanoi on August 12. Addressing the conference between the Government’s Standing Board and ministries, sectors, economic groups and corporations, the PM noted that in order to realise the aforementioned target, the growth rate in the six remaining months of this year must be at a level of 7.42%. He stressed that this is an important political task for all sectors, especially the agriculture, industry, construction, processing and manufacturing sectors. According to the Ministry of Planning and Investment, the surging GDP in the second quarter raised the January-June growth rate to 5.73%. The service sector made the most significant contribution to the overall growth rate (2.59 percentage points), particularly in wholesale, retail, accommodation, catering, finance, banking, insurance, and real estate. The total volume of international tourists traveling to Vietnam in the period was 7.42 million, an annual rise of 28.8%. While the mining industry suffered from a sharp decline, the agriculture, forestry and fishery sectors have recovered with a growth rate of 2.65 %. The average consumer price index (CPI) rose by 3.91 % in the first seven months, slightly below the National Assembly’s set target of 4 %. To reach the goal of 6.7 %, the GDP growth must be at a minimum level…... [read more]

  A production line at Habeco (Source: VNA) Hanoi (VNA) – Seven State-owned enterprises (SOEs) had their equitisation plans approved in July, bringing the number for the first seven months of this year to 26, according to the Corporate Finance Department under the Finance Ministry. The department said the total real value of the 26 enterprises is 71.88 trillion VND (3.16 billion USD), of which over 18.3 trillion VND (808.2 million USD) belongs to the State.  Under the approved equitisation plans, the SOEs will have a combined charter capital of over 22.63 trillion VND (995.72 million USD), of which the State will hold more than 11 trillion VND (495 million USD).  Meanwhile, around 6.5 trillion VND (286 million USD) worth of shares will be sold to strategic investors, 156 billion VND (6.86 million USD) to the enterprises’ workers, 16 billion VND (704,000 USD) to trade unions, and nearly 4.87 trillion VND (214.28 million USD) will be put up for auction.  According to the department, the equitisation process of SOEs has yet to meet expectations. In order to speed up equitisation in the remaining time of the year, the Ministry of Industry and Trade needs to accelerate the sale of State-owned capital at the Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco) and the Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) in order to complete by December 1. During the period, SOEs divested almost 3.7 trillion VND (162.5 million USD) of investment from operations outside their core…... [read more]

Vietnam National Textile and Garment Group (Vinatex) has proposed the prime minister to allow the company to divest all state-owned capital as a measure to resolve difficulties in business. RELATED CONTENTS: PM urges Vinatex reform Textile sector growth surges Vietnam Airlines, Vinatex to go public in January Minister urges Vinatex towards better efficiency in 2017 Proposed to divest near VND2.7 trillion of state capital Six central ministries and departments have just received dispatches from the Government Office for their opinion on Vinatex’s proposal to divest all, nearly VND2.7 trillion ($119 million) state capital. The proposal was included in Vinatex’s document on resolving difficulties for its business addressed to the PM. Le Tien Truong, general director of Vinatex, shared that the company has officially completed its equitisation in January 2015, with the chartered capital of VND5 trillion ($220 million) and state capital ownership ratio of 53.49 per cent, an equivalent of VND2.67 trillion ($117.5 million). However, according to the PM’s Decision No.58/2016/QD-TTg, Vinatex is not on the list of companies where the government plans to retain a controlling shareholding. “To meet the development requirements of this new era, Vinatex needs shareholders with professional management and market development capabilities to support the group in management and sales. Thus, the group proposes that the PM consider allowing the divestment of state capital in Vinatex,” Truong…... [read more]

Increased merger and acquisition (M&A) activities can spur infrastructure development in Vietnam, a current growth imperative, Planning and Investment Minister Nguyen Chí Dung said yesterday. Le Trong Minh, Editor in Chief of the Vietnam Investment Review, speaks at the annual Vietnam M&A Forum on August 10, 2017 in HCM City. He told an M&A forum in Hanoi that the sector has entered a new chapter in the 2014 to 2018 period, riding what experts have called the second wave of investment. The capital inflow from foreign investors during this period is expected to reach US$20 billion, 25 per cent of which could happen this year. This is largely driven by equitisation commitments of major State owned enterprises, the rise of private sector and steady investment from foreign economic entities. The Ministry of Planning and Investment (MPI) has concluded that in order to catalyse growth, investment in the form of M&As in the infrastructure sector needs to increase and expand across many branches of the economy. The projects would include upgrading roads, railways, airports and seaports to global standards, as well as establishing a stable network of real estate and retail conglomerates. Prime Minister Nguyen Xuan Phuc had also emphasised this during his official visit to the US and Japan last June, informing hosts that Viet Nam was pushing for M&A activities involving divestments in key sectors of the economy such as construction, retail, tourism or communications by State owned enterprises. Le Trong Minh, Editor in Chief of the Vietnam Investment…... [read more]

​Le Trong Minh, Editor in Chief of the Vietnam Investment Review, speaks at the annual Vietnam M&A Forum on August 10, 2017 in HCM City (Photo: tinnhanhchungkhoan.vn) Hanoi (VNA) - Increased merger and acquisition (M&A) activities can spur infrastructure development in Vietnam, a current growth imperative, Planning and Investment Minister Nguyen Chi Dung said on August 10. He told an M&A forum in Hanoi that the sector has entered a new chapter in the 2014 to 2018 period, riding what experts have called the second wave of investment. The capital inflow from foreign investors during this period is expected to reach 20 billion USD, 25 percent of which could happen this year. This is largely driven by equitisation commitments of major State owned enterprises, the rise of private sector and steady investment from foreign economic entities. The Ministry of Planning and Investment (MPI) has concluded that in order to catalyse growth, investment in the form of M&As in the infrastructure sector needs to increase and expand across many branches of the economy. The projects would include upgrading roads, railways, airports and seaports to global standards, as well as establishing a stable network of real estate and retail conglomerates. Prime Minister Nguyen Xuan Phuc also emphasised this during his official visit to the US and Japan last June, informing hosts that Vietnam was pushing for M&A activities involving divestments in key sectors of the economy such as construction, retail, tourism or communications by…... [read more]

The currently on-going Vietnam M&A Forum 2017 brought policymakers, investors, and major corporations to the table to discuss and propose changes to Vietnamese laws related to the M&A market and foreign capital inflows, inviting highly-productive discussion on the most pressing issues and several commitments from high-level state representatives. During the first session called “Identifying Breakthrough Opportunities,” the pressing issues of equitising state-owned enterprises (SOEs), state divestment, and the foreign ownership cap have been discussed by representatives from government agencies and leading consultancy firms. “The Ministry of Planning and Investment understands that Vietnam has to follow international rules if the country wants to attract M&A capital. Policymakers need to respond to investors’ suggestions and give them full support,” said Minister of Planning and Investment Nguyen Chi Dung. In particular, investors at the forum wanted to know whether they need to finalise all payments before obtaining the investment certificate for an M&A deal. In some transactions, investors do not buy shares from the company itself, but from other shareholders, and are confused whether they need to pay the money to the company or to the shareholders. Other major themes in the session include the increasing supply of M&A deals from equitised SOEs. New opportunities in the banking sector were also discussed as the new law on bad debts resolution was recently passed in June. The matter of the foreign ownership limit, which has prevented many investors from entering conditional business sectors,…... [read more]

Vietnam M&A Forum 2017 has opened this afternoon in Ho Chi Minh City, promising lively discussions on the next breakthrough opportunities.  Le Trong Minh, editor-in-chief of VIR and head of the Organising Board, expressed his hope that the forum would contribute to the development of the Vietnamese M&A market, helping restructuring and increase the competitiveness of businesses in Vietnam. M& A Vietnam 2017 is now taking place at GEM Centre, District 1, Ho Chi Minh City. Co-organised annually by VIR and AVM Vietnam under the auspices of the Ministry of Planning and Investment, the Vietnam M&A Forum has been a major event in the M&A market in the past nine years. The theme of this year’s edition is Seeking a big push, as new challenges in 2017 may prevent the Vietnamese M&A market from reaching the $5-billion mark in deal value. A strong initiative is necessary to boost the quantity and quality of M&A deals. The forum this year has attracted 20 speakers and 500 senior leaders of government agencies, investment funds, and leading corporates from Vietnam and overseas.   In his opening speech, Minister of Planning and Investment Nguyen Chi Dung noted that the Ministry leaders highly appreciate the contribution that Vietnam M&A 2017 has made in the last nine years. This is particularly timely, as more state-owned enterprises become equitised and state divestments are getting stronger. Minister Dung said that the forum has promoted foreign investment in Vietnam through M&A, connected investment…... [read more]

NDO - Nhan Dan is introducing interviews with diplomats concerning the role of ASEAN and relations between ASEAN and its partners on the occasion of the 50th anniversary of the Association of Southeast Asian Nations (ASEAN). Chinese Ambassador to Vietnam Hong Xiaoyong: Bringing China-ASEAN relations to a new level Over the past 50 years, ASEAN has pursued independent, neutral and non-aligned foreign policy and has endeavoured to strengthen intra-regional solidarity and resolve regional disputes. ASEAN has sought to promote the Southeast Asia region from instability to stability, from antagonism to cooperation, from poverty to prosperity, thus becoming a model of cohesion and self-reliance among nations not of the same social regime and developmental status. In addition, the ASEAN Community was officially established in 2015. Amid the slow global economic recovery and the stronger "subterranean wave" of anti-globalisation, the strong development of ASEAN brings about positive energy to the process of regional integration and globalisation. ASEAN has established its central role in East Asian regional cooperation. ASEAN countries, China and other international and regional organisations have established dialogue partnerships and gradually formed a network of East Asian cooperation with the nucleus of ASEAN. Many regional cooperation mechanisms such as ASEAN+3, East Asia Summit, ASEAN Regional Forum and others have developed strongly and have promoted each other. As an important member of ASEAN, Vietnam has great development prospects. China always supports the process of building and connecting the ASEAN Community and hopes that the Vietnamese side will make positive and constructive…... [read more]




Links Topics : http://news.c10mt.com/2017/08/26-enterprises-equitisation-plans.html