Equitisation plans of seven more SOEs receive approval in July

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]

About $15-20 billion of state divestment, the strongly rising private sector, and at the same time, a number of investment funds planning to divest, all of these promise to significantly contribute to the development of the sizable mergers and acquisitions (M&A) market in Vietnam. Reforms help M&A landscape to shine Danang M&As help overcome delays Increasing M&A for financial institutions Inside Habeco's factory in Me Linh, Vinh Phuc province (Photo by Duc Thanh) The M&A market in Vietnam reported a record value of $5.8 billion in 2016. In the first half of 2017, there have been concerns that the market may not exceed $5 billion. However, KPMG Vietnam forecasted that the second half of 2017 will witness more sizable M&A deals. Le Viet Anh Phong, head of Financial Advisory Services of Deloitte Vietnam, said that although the first half of 2017 did not see any breakthrough M&A deals, there were numerous small- and medium-sized ones. If huge transactions involving Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco), Saigon Beer, Alcohol and Beverage Corporation (Sabeco), and a number of other firms are implemented as scheduled, the value of the M&A market in 2017 could easily exceed the 2016 record. Vietnam M&A Forum 2017's research team was optimistic, saying if there were a breakthrough in state divestment, the M&A market could reach…... [read more]

NDO – A recent survey on business confidence conducted by the Vietnam Private Sector Forum (VPSF) showed that the confidence of private business leaders continues to increase, as the private sector is increasingly asserting its important role in Vietnam's economic growth in the near future. However, there remain a number of barriers causing difficulties for businesses in their operations. Each industry has its own problems but the common concerns arise from complex administrative procedures and constraints during access to financial sources. Don Lam, General Director of VinaCapital Group said that Vietnam has made great efforts to improve its business environment, evidenced by Vietnam's rankings which, according to the business environment rankings conducted by the World Bank, have improved. However, up to 50% of enterprises surveyed by the VPSF confirm that regulatory barriers are causing problems for private enterprises. In particular, overlapping, unclear and inefficient regulations have caused the private sector to suffer informal additional costs and have proved to be time-consuming. This problem has led to a significant decline in the sector’s competitiveness. Ho Sy Hung, Head of the Enterprise Development Agency under the Ministry of Planning and Investment, said that while the efficiency of business production and operation remains limited, the private sector is increasingly contributing to the socio-economic development. However, over the past few years, the size of private enterprises has not improved, both in terms of capital and the average number of employees. Limited capital size is one of the major obstacles preventing private enterprises from taking…... [read more]

Investors around Asia may share the same excitement about Vietnam’s M&A market, but their strategies are often quite different from one another. Thanh Van and Nam Phuong report. In recent years, enthusiastic Asian firms have been flocking to Vietnam as part of their global ambitions. These merger-and-acquisition investors often share similar characteristics – their home markets have matured and growth is slowing down, pushing them to seek high-growth or low-production-cost economies for expansion elsewhere. Vietnam, thanks to its geographical and cultural proximity, emerges as an attractive destination for many buyers. However, despite these similar beginnings, these Asian investors are quite unique in their approach. It is particularly interesting to draw comparisons between those from Thailand, Singapore, Japan, and South Korea – the four most prominent players in Vietnam’s merger-and-acquisition (M&A) scene. ASEAN rises In 2016 and the first half of 2017, Thailand and Singapore were the most active ASEAN participants in Vietnam’s M&A transactions. Thailand stood out among all investors thanks to their “go hard or go home” strategy, which included aggressive takeovers of major Vietnamese firms in retail and consumer goods. For example, Central Group spent $1.05 billion acquiring Big C supermarkets, previously owned by the French company Casino Group, in May 2016. Prior to this deal, TCC Holdings parted with $800 million in exchange for the wholesaler Metro Cash & Carry Vienam. Singha also became a major shareholder at Vietnam’s Masan…... [read more]

PM calls for credit and investment expansion to fuel growthTu Hoang HANOI – Prime Minister Nguyen Xuan Phuc has urged credit and investment expansion in the final five months of 2017 to help meet the year’s economic growth target. Addressing the Government’s regular meeting last week, Phuc asked the State Bank of Vietnam to tell commercial banks to cut interest rates to encourage businesses to increase borrowing and thus achieve loan growth of 20% or above this year, but credit quality and macroeconomic stability should be guaranteed. The Ministry of Planning and Investment was asked to urgently complete a detailed public investment plan for accelerating capital disbursement for public projects and take measures to raise the ratio of investment in the economy to 34-35% of gross domestic product (GDP). Besides, the ministry shall review business conditions and eliminate those deemed as inappropriate. According to the PM, controlling inflation and attaining the GDP growth target would be tough in the rest of the year. Therefore, ministries, departments and localities should work together and take more drastic measures. He asked the Ministry of Planning and Investment to give updates to the PM before August 20 so that specific adjustments for each sector can be made in a timely manner. The Ministry of Transport shall find ways to make the most of Cai Mep-Thi Vai port complex which is operating far below capacity, increase logistics services in the Saigon Port system and reduce costs for import-export goods going through Haiphong Port in the…... [read more]




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