11 Nov 2016
VIETNAM: First Details of SOE Privatisation Legislation Begin to Emerge
As Vietnam gears up for privatisation of its State-Owned Enterprises (SOEs), details of the legislation required to facilitate this transition have begun to emerge. These include a stipulation that a public auction will be held in the event of only one investor seeking to acquire a stake in a particular SOE.
Companies are also expected to be free to manage their own equitisation, while overseas experts will also be permitted to assist in any required valuations. Overall, the divestment process is not expected to be completed until 2020.
Among the SOEs targetted for divestment are Vinamilk, the country’s largest listed company, as well as Saigon Alcohol Beer and Beverages Corporation (Sabeco) and Hanoi Beer Alcohol and Beverage Joint Stock Corp (Habeco), the country’s two leading brewers.