PM urges Thai firms to grasp opportunities in Vietnam

NDO/VNA – Prime Minister Nguyen Xuan Phuc has urged Thai firms to grasp the opportunities arising from merger & acquisition activities, the equitisation of State-owned enterprises (SMEs) and their divestment in transport, infrastructure, food, agriculture, telecommunications, trade, services and construction in Vietnam. At a meeting with Thai enterprises in Bangkok, on August 18, during his official visit to Thailand, Phuc stated that the Vietnamese economy is now worth over US$220 billion and the country is striving to meet the basic criteria in the business environment, equivalent to the ASEAN 4 level by 2020. Vietnam is also in a period of golden population with 60% of the population within the working age. Thai business representatives thanked the Vietnamese government for creating favourable conditions for investors from Thailand, and the ASEAN member states, to join the SMEs equitisation in the country. They pledged to continue expanding their business operations in Vietnam in the fields of retail, food, farm produce manufacturing and processing, energy, tourism and transport. Several companies stated that they are learning about Vietnam’s tourist attractions and wish to link up with Vietnamese airlines to increase tourist arrivals in the two countries. Receiving the Chairman of the Electricity Generating Authority of Thailand Kornrasit Pakchotanon, PM Phuc asked for the acceleration of the construction of a thermal power plant in the central province of Quang Tri. Pakchotanon pledged to ensure environment protection and the use of advanced technology during the construction process. Meeting the Chief Executive Officer (CEO) of the Central Group…... [read more]

NDO - Prime Minister Nguyen Xuan Phuc has said that he expects Vietnamese and Thai enterprises to engage in further cooperation so that both sides will achieve economic success commensurate with their strategic partnership. The Vietnamese leader made the remarks on August 18 while attending the Vietnam-Thailand Economic Cooperation Forum in Bangkok, where he introduced business opportunities in Vietnam to Thai investors. He said the Vietnamese government is fostering the M&A activities along with the equitisation of State-owned enterprises in the fields of transport, infrastructure, food, agriculture and telecommunications, among others. PM Phuc added that Vietnam will establish the necessary legal frameworks to stimulate public-private partnerships in infrastructure development and encourage investment in promising Vietnamese start-ups. He emphasised that the Vietnamese government will create all conditions conducive to foreign investors in Vietnam, in a win-win spirit with policies approaching the top ASEAN practices. Since Vietnam and Thailand first established their strategic partnership four years ago, bilateral trade has reached over US$12.5 billion. Thailand currently has 470 projects in Vietnam with a total capital of more than US$8 billion. Regarding their tourism cooperation, the annual number of Vietnamese tourists travelling to Thailand is estimated at 830,000, while there are also 270,000 Thai tourists visiting Vietnam every year. Underlining the role of enterprises in enabling the two countries to soon realise the bilateral trade target of US$20 billion in 2020, PM Phuc noted that the two sides discussed holding joint cabinet meetings annually, or every two years, to address any unresolved difficulties…... [read more]

Deputy Prime Minister Vuong Dinh Hue has urged the Ministry of Planning and Investment (MPI) to quickly finalise the list of State-owned enterprises (SOEs) that needed to be divested. (Photo: baodautu.vn) Hanoi (VNA) - Deputy Prime Minister Vuong Dinh Hue has urged the Ministry of Planning and Investment (MPI) to quickly finalise the list of State-owned enterprises (SOEs) that needed to be divested. At a meeting on August 16 with the MPI, the Ministries of Finance and Justice, as well as the Government Steering Committee on Corporate Renovation and Development, Deputy PM Hue asked the MPI to submit the list of SOEs to be divested by 2020 to Prime Minister Nguyen Xuan Phuc for approval. He also assigned the Ministry of Finance to review and calculate the number of SOEs and State capital needed to be divested by 2020 and report it to the PM. Hue said that the PM will issue a separate decision on equitisation and divestment of State capital at large SOEs such as Habeco, Sabeco, State Capital Investment Corporation (SCIC), Petro Vietnam, Electricity of Vietnam and Airports Corporation of Vietnam (ACV). But for the remaining SOEs, it is necessary to fully aggregate them in a list to make public to ease investors. According to the PM’s instruction, the MPI has begun asking for recommendations from relevant ministries, agencies and localities about the list since early this year and has so far finalised the draft. Hue agreed with the draft list …... [read more]

The list of State-owned enterprises that needed to be divested in the 2017-20 period will be made public soon. — Photo vietbao.vn Deputy Prime Minister Vuong Dinh Hue on Wednesday urged the Ministry of Planning and Investment (MPI) to quickly finalise the list of State-owned enterprises (SOEs) that needed to be divested. At the meeting with MPI, ministries of Finance and Justice, as well as the Government Steering Committee on Corporate Renovation and Development, Hue asked the MPI to submit the list of SOEs to be divested by 2020 to Prime Minister Nguyen Xuan Phuc for approval. He also assigned the Ministry of Finance to review and calculate the number of SOEs and State capital needed to be divested by 2020 and report it to the Prime Minister (PM). Hue said that the PM will issue a separate decision on equitisation and divestment of State capital at large SOEs such as Habeco, Sabeco, State Capital Investment Corporation (SCIC), Petro Vietnam, Electricity of Vietnam and Airports Corporation of Vietnam (ACV). But for the remaining SOEs, it is necessary to fully aggregate them in a list to make public to ease investors. According to the PM’s instruction, the MPI has begun asking for recommendations from relevant ministries, agencies and localities about the list since early this year and has so far finalised the draft. Hue agreed with the draft list which regulates the rate of divested capital each year (the minimum rate), but…... [read more]

In late August, Vietnam Posts and Telecommunications Group (VNPT) and Electricity of Vietnam (EVN) will divest their capital in three major companies with a total charter capital amount of VND1 trillion ($44 million). RELATED CONTENTS: EVN banned from investing in property, banking sectors VNPT to divest capital from Maritime Bank Free wifi at festival spots in major cities SK Telecom to lose rights to coveted bandwidth PM tells VNPT to get ready for equitisation EVN divests from non-core businesses Saigon Postel Corporation On August 29, VNPT will sell all 10.26 million of its shares, equal to 8.53 per cent of all outstanding shares in Saigon Postel Corporation (SPT), at the starting price of VND12.487 ($0.55) per share. SPT was founded in 1995 and operates mainly in telephone, internet, and postal services. SPT’s direct business units includes Saigon South Telephone Centre (SST), S-Telecom, and Saigon Post (SGP), among others. SPT’s charter capital is currently VND1.2 trillion ($52.8 million), with seven major stakeholders controlling 77.08 per cent of the total stakes. Reports showed that SPT has made profit in recent years, however debts from the S-Fone mobile network project (which ceased operations in 2012) has kept the company short on capital for operation as well as expansion. By the end of…... [read more]

Despite disconcerting global political events causing turmoil and affecting capital flows around the world, Vietnam remains an attractive investment destination-albeit in need of a greater push to overtake last year’s stellar performance. Le Viet Anh Phong, head of Financial Advisory Services at Deloitte Vietnam, talked with Khanh Linh about what could provide this much-desired push and how domestic companies can increase their chances of bagging mergers and acquisitions. What do you think about the mergers and acquisitions (M&A) trends in Southeast Asia and particularly Vietnam in the future? 2016 was peppered by unsettling global developments, with Brexit, the US election, and the slow recovery of oil prices. In the first six months of 2017, we have witnessed the return of many investors from Europe and North America into Southeast Asia. Together with investors from other Asian developed countries, such as Japan, South Korea, and China, among others, they have made Southeast Asia one of the most vibrant M&A markets in the Asia-Pacific region. Vietnam, in particular, continues to be an attractive M&A destination. Though transaction values in the first six months show no signs of a breakthrough, the market is still very busy with a myriad of M&A transactions focusing on small- and medium-sized enterprises. If the larger deals, such as Sabeco, Habeco, Vinamilk, Airports  Corporation of Vietnam, and PV Oil, “detonate” as scheduled, the Vietnamese M&A market in 2017 may completely overtake the record of…... [read more]

While a renewed focus on equitizing State-owned enterprises (SOEs) has been exhibited following the leadership transition in April last year, equitization alone is not a short-term solution to reducing the government’s fiscal deficit. Rather, meeting the government’s 3.5 per cent deficit target for 2017 would have to come on the back of reduced government expenditure, which HSBC in its latest report believes is unlikely, given the government’s growth targets. It has been consistently framed in recent statements by policy makers that the sale of SOEs is viewed as a means to both increase fiscal revenues and reduce government expenditures.  One of the highlights, Decision No.58, signed by Prime Minister Nguyen Xuan Phuc on December 28, 2016, pushed for further divestment of State capital in existing SOEs by eliminating or reducing the minimum level of ownership that the government holds in certain industries. What makes Decision 58 a positive move and deserving of full recognition is the fact that it provides a clearer roadmap for equitization by announcing a total rate of State ownership in specific companies (not just broadly by sectors) that are set to be equitized. As the new sense of urgency in SOE equitization is mainly driven by rising public debt, increased equitization leading to greater revenues and alleviating the government’s fiscal burden is no easy task given the remaining challenges in SOE reform and the recent trends in government expenditure. SOE reform has primarily focused on targeting the sale of minority stakes, while the government retains majority…... [read more]

NDO – Deputy Prime Minister Vuong Dinh Hue has requested that the Ministry of Planning and Investment (MPI) promptly submits a decision publicising the list of State-owned enterprises (SOEs), whose State capital is to be sold during the 2017-2020 period, to the Prime Minister for signing. On Wednesday morning, Deputy PM Hue hosted a working session with the MPI, along with the Ministries of Finance and Justice and the Steering Committee for Business Renovation and Development, to collect comments on the construction of the list. MPI Deputy Minister Dang Huy Dong said that the PM’s Decision No. 58/QĐ-TTg on criteria for classifying SOEs and Decision No. 707/QĐ-TTg on restructuring SOEs with a focus on State economic corporations during 2016-2020, all assigned the MPI to build a list of enterprises with State capital that need to be sold in the 2017-2020 period. In the past few years, the sale of State capital was implemented by the relevant ministries and localities in accordance with current regulations. To date, the preparation by the PM for a comprehensive list of SOEs that will make divestment during 2017-2020 is a necessity in order to secure the proceeds from divestment to be distributed to medium-term investment projects, acting as a tool to monitor and facilitate the selling of State capital carried out by the concerned ministries and localities, thus accelerating the pace of divestment. Since the beginning of the year, the MPI has reviewed and consulted numerous ministries and localities to make a list and determine…... [read more]

As State Capital Investment Corporation gets ready to sell 3.3 per cent of its shares in Vinamilk, the market expects to see a different outcome from last year’s unsuccessful bidding. Investors expect improvements in Vinamilk's upcoming share sale         (Photo: Le Toan) This October, State Capital Investment Corporation (SCIC) will divest 3.3 per cent of its stake in Vinamilk, the largest Vietnamese dairy firm ruling over more than half of the market. The state investor wants to earn at least VND7 trillion ($308 million) from the withdrawal. The announcement has set the market abuzz, not only thanks to Vinamilk’s appeal as a fast-growing firm, but also due to lingering concerns about SCIC’s auction style. Last December, the state investor offered 9 per cent of Vinamilk’s shares and garnered significant interest from investors. However, at the end, only Thai-owned Fraser & Neave (F&N) joined the auction and bought 5.4 per cent of the shares. The rest remained unsold. According to experts at the time, SCIC made a number of mistakes that led to the poorly arranged offer. First, the auction took place near the Christmas and New Year holidays, which made it difficult for global investors to join. Second, the offering price was VND144,000 ($6.33), much higher than Vinamilk’s market price at the time. Moreover, advisors in the deal reckoned that they were not given sufficient time to carry out the book-building, which is vital…... [read more]

Deputy PM Vuong Dinh Hue on August 15 in Ha Noi received Chief Executive and President of AIA Group Limited Ng Keng Hooi. Deputy PM Vuong Dinh Hue receives Chief Executive and President of AIA Group Limited Ng Keng HooiHa Noi,  August 15, 2017 At the reception, Ng Keng Hooi hailed the Vietnamese Government’s efforts to improve local investment and business climate over the past years and described Vietnam as a promising market for financial investors. AIA will continue to invest in Viet Nam’s long-term G-bonds and pay heed to life insurance in the country, he said. AIA is the largest independent publicly listed pan-Asian life insurance group – with a presence in 18 markets across the Asia-Pacific region. In turn, Deputy PM Vuong Dinh Hue highlighted opportunities for AIA Group Limited to invest in Viet Nam’s potential life insurance market. He told his guest that the Vietnamese Government will adopt more proper policies to make it easier for businesses, including AIA, to become involved in the local insurance market.  Mr. Hue also called on AIA and other life insurance companies to diversify their products so as to meet demands of Vietnamese customers.  The Deputy PM suggested the group participate in Viet Nam’s derivatives market, saying AIA will have more changes to expand their financial investment in the country as the Vietnamese Government will take a score of measures to restructure the financial and banking sectors and equitise State-owned enterprises. Source VGP ... [read more]




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