These entities include 10 big enterprises whose state stakes managed by SCIC as well as Saigon Beer-Alcohol-Beverage Corporation (Sabeco) and Hanoi Alcohol Beer and Beverage Company (Habeco), according to the Government website chinhphu.vn.

The 10 companies are Vietnam Dairy Products JSC (Vinamilk), Baominh Insurance Corporation, Vietnam National Reinsurance Corporation, Tien Phong Plastic JSC, Binh Minh Plastics JSC, Vietnam Infrastructure Investment and Development JSC, Ha Giang Mineral and Mechanics JSC, Sa Giang Import Export Corporation, FPT Corporation and FPT Telecom JSC.

The Government has set criteria and approved a plan to sell stakes, decide prices and keep original brands of certain enterprises when stakes in these firms are offloaded in the coming time.

Most of the firms listed on the stock exchange in line with the Government’s instruction in October last year, except for Sabeco and Habeco.

State stakes in the enterprises are valued at an estimated US$4 billion. The figure may double based on market capitalization. Vinamilk’s market cap stands at roughly US$9 billion, the highest on the local equity market.

Prime Minister Nguyen Xuan Phuc, who chaired the meeting, told ministries and agencies to strictly observe regulations of the Enterprise Law and the Securities Law, and coordinate with the Steering Committee for Enterprise Reform and Development to monitor the capital divestment process.  

Phuc called for them to look for opportunities to sell stakes at the highest prices and that the stake capital transfers must be made in accordance with the market mechanism to ensure transparency and prevent group interests.

The Prime Minister ordered relevant ministries and agencies to draw up plans to list Sabeco and Habeco on the stock market before selling State stakes in those firms. He said experienced consulting firms must be selected to ensure stock prices are properly determined.

Phuc said measures should be taken to maintain Sabeco, Habeco and Vinamilk brands in case foreign investors acquire stakes in these companies.

The Government does not clarify a road map to withdraw capital from each business as this may leave strong impact on the equity market.  

Source: Saigontimes