The privatisation of State-owned companies (SOEs) (known as ‘equitisation’ in Vietnam) continues to be high on the Vietnamese Government’s agenda as it continues to move towards a more market-driven economy and seeks to raise much needed capital to address the State budget deficit. However, to date, progress in implementing the Government’s policy has not been as rapid as planned, with the process only completed by 160 of the 430 SOEs slated for equitisation.

To accelerate the equitisation of the remaining SOEs, the Prime Minister of Vietnam recently issued Decision 58 to provide a clearer roadmap for the process by setting out a specific list of 137 SOEs to be equitised in the period 2016 – 2020 and the stakes that the State will eventually hold in each. The State will retain a stake of over 65% in four SOEs, 50-65% in 27 SOEs, and less than 50% in the other 106 named SOEs. The State will continue to hold 100% in SOEs operating in sectors of national importance

Equitisation presents private investors with an opportunity to tap into the Vietnamese market through investing in market leading companies in key areas such as telecommunications, retail, oil and gas trading, infrastructure and power.New Picture

For more information on the equitisation programme in Vietnam and upcoming investment opportunities for investors, please find attached our updated equitisation brochure.

Allens will continue to monitor the equitisation opportunities emerging in Vietnam. If you would like to discuss these opportunities and how we can assist, please get in touch with:

Linh Bui
Partner
T +84 8 3822 1717
M +84 98252 5444
Linh.Bui@allens.com.au
Bill Magennis
Partner
T +84 4 3936 0990
M +84 90340 4440
Bill.Magennis@allens.com.au
Robert Fish
Partner
T +84 4 3936 0990
M +84 909795800
Robert.Fish@allens.com.au

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