SOEs facing divestment to be made public soon

The list of State-owned enterprises that needed to be divested in the 2017-20 period will be made public soon. — Photo 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]

Son La Dam of the Son La hydroelectric power station at the Muong La District, Son La Province under the management of the Electricity of Vietnam (EVN) Company. — Photo According to Government-issued Decree 94/2017/ND-CP, to take effect from October 1 this year, up to 20 types of public goods will be traded and monitored solely under State monopoly with clear direction from the Prime Minister’s Office. Decree 94 on the State monopoly of goods, services and commercial territory applies to essential goods and services related to national defence, security and welfare, in which other economic factors are not interested or capable of participating. Government authorities now have sole monopoly power over the 20 types of goods and services listed in Decree 94, albeit through direct purchase or assigning other organisations or individuals to do so in their stead. The State monopoly on trade is only in essential goods and services, such as defence and security to which the State would have exclusive rights. All monopolised sales of these goods and services must be under the surveillance and direct orders from the PM through official documents and the appropriate legal state authorities. According to the Ministry of Industry and Trade, Decree 94 aims to implement the 2005 Commercial Law which permits State monopolies with no time limit on commercial operations for a number of goods and services of national interest. The Decree states that all ministries, municipal governments and agencies…... [read more]

VietNamNet Bridge - Legal obstacles are hindering the construction of smart cities in Vietnam. About 250 cities worldwide are developing smart cities, according to Smart City Tracker Q1/2017. Centralized management in smart cities allows municipal authorities to adjust policies to best serve citizens.  Nguyen Thanh Hung, Deputy Minister of Information and Communication, said that Vietnam still doesn’t have comprehensive standards on smart cities. The world is just in the early stage of developing smart cities. ISO has just begun cooperating with IEC to issue standards directly related to smart urban areas in 2017. With a desire to have standards on smart cities, Hung, speaking at the second Vietnam Private Sector Forum in 2017, called for close coordination among all enterprises. The Ministry of Information and Communication is going to build up the standards related to information & communication technology in smart city development.  “The Ministry of Information and Communication is going to build up the standards related to information & communication technology in smart city development. We hope that enterprises will join forces with the state management agency to build standards,” he said. Meanwhile, businesses have pointed out many obstacles in the state’s policies which are hindering the development of smart cities.  Bui Quang Ngoc, CEO of FPT, the largest Vietnamese IT conglomerate, said the major problem lies in the inequality between state-owned and private enterprises. Ngoc complained that enterprises now have to pay too much for public utility telecommunications, and have to allocate huge capital for the internet line. …... [read more]

  Illustrative image (Source: VNA)  Hanoi (VNA) - The Electricity of Vietnam (EVN) said its total electricity output in January-July increased by 7.3 percent year on year to reach 112.6 billion kWh. The amount of commercial electricity output in the period was estimated at 98.1 billion kWh, up 8.55 percent year on year, including 15.1 billion kWh in July. In July, EVN ensured sufficient power supply for socio-economic development nationwide and private consumption. The corporation has worked closely with the Central Steering Committee for Natural Disaster Prevention and Control and the Ministry of Agriculture and Rural Development in regulating water release from major reservoirs in the north to ensure safety for downstream areas. The group’s units have quickly resumed electricity supply for clients following natural disasters in Nam Dinh, Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh and Quang Tri provinces. In July, EVN put two turbines with a combined capacity of 675 MW into operation at the expanded Thac Mo hydropower plant and the Vinh Tan 4 thermo power plant, bringing the number of operational turbine in the 7-month period to seven with a combined capacity of 1,235 MW.   The group started construction on 103 transmission works and completed 117 others to improve the capacity of the national grid. According to EVN, the daily power consumption in August is estimated at 573 million kWh. The group plans to put on trial run the first turbine of the…... [read more]

Con Co Island in the central province of Quang Tri (Source: VNA)   Quang Tri (VNA) – Con Co Island in the central province of Quang Tri will become the 11th island nationwide connected to the national power grid. An agreement to this effect was signed between the Quang Tri province People’s Committee and the Electricity of Vietnam (EVN) in Dong Ha city on August 10. Accordingly, the EVN will supply power to 26 households,11 agencies and sectors, along with other public facilities on the island, which are using diesel-generated electricity.  The EVN has assigned Quang Tri Power Company to ensure round-the-clock electricity connection for the island. Founded in October 2014 under the Prime Minister’s decision, Con Co has built a number of facilities, including a water supply system, a health centre, schools and roads to serve travel demand of local residents and tourists. The two existing diesel-run generators on Con Co have provided electricity for the islanders for only 17-19 hours. Located 30 km from the mainland, Con Co island, which crosses the 17th parallel, is considered an “outpost watch” due to its location.  Covering 2.3 square kilometres, it is one of the most magnificent islands of the central region with its diverse ecosystem.-VNA... [read more]

PV Power, a wholly-owned subsidiary of state-owned PetroVietnam and the second largest electricity producer in Vietnam after Electricity of Vietnam (EVN) in terms of capacity, hopes to complete its equitisation in December this year, after having missed the deadline numerous times, according to information published on the company’s website. PV Power prepares for its next attempt at the IPO It is the third time the company has released the deadline for its equitisation. In early June, the company published on its website that it is expected to conduct its initial public offering (IPO) at the end of August. Previously, PV Power submitted its equitisation plan approved by the Ministry of Industry and Trade to the prime minister for approval. The plan was approved at the end of June 2017. Previously, in June 2016,  PV Power planned to sell a 25 per cent stake at its IPO in October 2016. However, the IPO was not conducted at the time. For the third time, PV Power has changed the state stake volume to be divested to 29 per cent for strategic investors. At the IPO it is planning to sell 20 per cent, 5 per cent less than the previous plan. PV Power has approached a number of potential investors, such as VinaCapital, BNP Paribas, Standard Chartered, and Deloitte, as well as funds operating in Vietnam, such as Indochina Capital, Dragon Capital, SGI Cap, Kingsmead,…... [read more]

The power supply for the Samsung complex in the northern province of Thai Nguyen will return to normal by August 10, 2017 at the earliest after the electrical substation that supplies electricity to the South Korean electronics giant complex caught fire three days ago. The incident may hurt Samsungs manufacturing operations. The fire at 110kV Yen Binh 2 electrical substation Northern Power Corporation, a subsidiary of state-run Electricity of Vietnam, confirmed the fire at 110kV Yen Binh 2 electrical substation in a press release. The cause of the unexpected fire that is disrupting the power supply for the complex is under investigation. The power supplier worked with Samsung and called them to use diesel to generate power while the substation is under repair. Using diesel to generate power is considered more expensive. Besides, the fire happened at a peak production time, as Samsung plans to reveal its Samsung Galaxy Note in August. Samsung Thai Nguyen employs about 62,000 workers. The factory, together with Samsung Bac Ninh complex, creates many mid- to high-end smartphone and tablet models for export to 78 countries and territories all over the world. Samsung has several huge manufacturing complexes in Vietnam, one in Bac Ninh (SEV), one in Thai Nguyen (SEVT), and one in Ho Chi Minh City (SEHC), with a total investment value of $9.5 billion. RELATED CONTENTS: Smartphone sales slip…... [read more]

Illustrative image (Source: VNA) Hanoi (VNA) – The Electricity of Vietnam’s Southern Power Corporation (EVN SPC) has conducting a number of projects to provide power services to island communes in the southern region. EVN SPC is working with Sun Group in implementing a project to connect Hon Thom commune in Phu Quoc district in Kien Giang province with a total investment of 283 billion VND (12.45 million USD). The project will build 9.27km underwater cable and 22kV transmission line to provide power for 97 households in Hon Roi and about 1,000 others in Hon Thom island commune, which is expected to complete in late 2017. At the same time, EVN SPC is carrying out another project in Kien Giang’s island communes with a total investment of 1.35 trillion VND (59.4 million USD), which is scheduled to complete by 2020. Meanwhile, the second 220kV Kien Binh-Phu Quoc transmission line in Kien Giang is scheduled to be launched this year. The 73km line has total investment of about 2.43 trillion VND (106.92 million USD). The EVN SPC is also reviewing the power network in Kien Giang, aiming to ensure safe and stable power supply to Phu Quoc in 2018 at a cost of 250 billion VND (11 million USD). Last year, the firm finished two project bringing electricity to 1,956 households in Lai Son island commune and over 500 households in Hon Nghe island commune of Kien Giang province. Earlier this…... [read more]

Illustrative photo (Source: ​ Hanoi (VNS/VNA) - Starting today, establishments that draw funds from the State budget will have to publicise their budget estimates and balance every quarter under a new Circular of the Ministry of Finance. Establishments can publicise the information at meetings, post the information at their headquarters or issue publications on their budget estimates and balance. Budget-related information can also be publicized through the media or on company websites.   Relevant ministries, agencies and People’s Committees at all levels are responsible to examine the publication of State budget estimates and balance of establishments within their jurisdiction. Violators will be punished in line with current regulations. The publication of information must be done no later than 15 days after the end of the quarter and the six-month period. In another regulation that will kick off on August 15, the Electricity of Vietnam will be allowed to adjust the average electricity retail price every six month under a decision issued by Prime Minister Nguyen Xuan Phuc. The price change must be done transparently, publicly and within the price framework regulated by the Prime Minister. If the electricity price is increased 10 percent higher than the current rate or affects the macro-economy, the Ministry of Industry and Trade will co-ordinate with the Ministry of Finance to inspect and review the price adjustment to submit to the PM for consideration. Also from August 15, monthly pensions, social insurance allowances and social allowances will increase…... [read more]

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