Despite authorised capital raised by 72%, total assets by 39%, owner equity by 60% and average wages increased by 33% in 2015, most of the equitised firms are small-sized enterprises. The reasons for slow equitisation may lie in slow state divestment from projects, unresolved debts and the 50% limit on shares for sale.
Only 43 enterprises were approved for equitisation in the first seven month of this year. These enterprises held 985 million US dollars of state capital. However, the equitisation process has been overly slow, particularly when organising initial public offerings.
"The leaders of state enterprises don’t seem to want much change. They’re reluctant to renovate and fear the involvement of other shareholders would weaken their authority. However, selling shares without a strategy or end-goal won’t attract investors", said Dang Quyet Tien - Deputy Director, Corporate Finance Department, Ministry of Finance.
The recent initial public offerings of many equitised enterprises have been unsuccessful.
Viglacera Corporation offered 25.83% of their shares, but sold only 8.52%.
Viwaseen sold 1.84% of the 28.62% up for sale, while the Bach Dang Construction Corporation offered 27.02%, and sold 5.39%.
