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Vietnam: State divestment from blue-chip companies

In parallel with the ongoing equitisation process of State-owned enterprises (SOEs), the Government of Vietnam is undertaking a programme of divestment of the State’s interests in a number of blue-chip former SOEs in which it has retained a significant interest post-privatisation, such as the country’s leading dairy company Vinamilk or largest breweries Habeco and Sabeco.

In an effort to speed up the process and raise much needed funds to address Vietnam’s budget deficit, the Prime Minister has recently issued a Decision setting out plans for the State to reduce its capital to less than 50% in 106 SOEs during the period of 2016 to 2020. Vietnam’s national wealth fund, State Capital Investment Corporation, is reported to have plans to divest from 137 SOEs in 2017.

This divestment programme provides an opportunity for investors, including foreign investors, to acquire an interest in leading Vietnamese companies. However, these opportunities will not be easy to grasp and there are a number of significant hurdles for foreign investors to overcome in order to successfully participate in this process.

For further information on the divestment programme and some of the issues to be considered, please find attached our Divestment brochure.

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

Linh Bui
T +84 8 3822 1717
M +84 98252 5444
Bill Magennis
T +84 4 3936 0990
M +84 90340 4440
Robert Fish
T +84 4 3936 0990
M +84 909795800


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