Listing heightens privatization’s effectiveness

by VTV403 April 2017 Last updated at 09:01 AM

(Photo illustrated: baodatviet.vn)
(Photo illustrated: baodatviet.vn)

VTV.vn - Following the privatization of many big firms in 2016, many more state firms are expected to be sold this year through stock market.

The Vietnam National Petroleum Group (Petrolimex) will be listed in the stock market by mid April. After its debut, the company is expected to rank fourth among listed companies by market capitalization.

“I believe the 'bid-ask spread' is high while the dividend rate is also high, so these stocks must be profitable”, the investor Dang Dinh Hiep said.

State ownership still accounts for 65% in this firm. This will decrease when the firm is listed, as other economic sectors could take up more ownership.

“The pressure put on the management board will be higher as dividends in the stock market must be ensured to gain the trust of investors, and for long-term investment”, Bui Ngoc Bao, the General Director of Petrolimex said.

According to Circular 115, many state-owned enterprises have been restructured to for the listing. Binh Son Refinery and Petrochemical Company Limited will auction its initial public offering (IPO) at the end of 2017, but the firm has been preparing for this for a long time.

“We have focused on management, staff training and fostering company culture while reducing operational costs to raise our competitiveness. Meanwhile, we are also preparing the necessary procedures for the IPO”, the General Director of Binh Son Refining and Petrochemical Company Limited Tran Ngoc Nguyen said.

“The firms will have to improve themselves to heighten transparency and efficiency. Meanwhile, upon listing, firms will be priced according to where they are in the eyes of investors. State capital will also be priced in a market-oriented way and will be saleable”, Nguyen Ngoc Anh who is Director of Northern Region, Investment Banking, Saigon Securities Incorporation (SSI) said.

The listing of big firms in various fields will raise capitalization in the stock market, possibly up to 100 billion USD this year.

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