Hanoitourist's head office in Hà Nội. The company is among 93 State-owned enterprises that are preparing for privatisation in 2020. — Photo tinnhanchungkhoan.vn
Companies that are expecting to equitise this year include telecommunications groups MobiFone and VNPT, Saigon Jewellery Co (SJC), and tourism firm Hanoitourist.
They are among 93 companies that must complete the equitisation process by the end of 2020 under Decision 26/2019/QĐ-TTg issued by the Prime Minister in August 2019.
Institutional investors are being drawn to SOEs because of their earnings growth potential.
An unnamed Japanese firm was reportedly interested in buying shares in the Đồng Nai Food Industrial Corporation (Dofico) and multi-sector group Khánh Việt Corporation (Khatoco), tinnhanhchungkhoan.vn reported.
Dofico has VNĐ3 trillion in charter capital and VNĐ2 trillion in average annual revenue. The Japanese firm said it was confident the firm would progress if the State sold its stake fully or partly to private investors.
Dofico and Khatoco must cut their State ownership to between 50 per cent and 65 per cent through equitisation.
According to the Ministry of Finance, the plan was unlikely to be completed in 2020 as most companies, especially large-cap firms, had failed to finish business evaluations regarding the huge amount of land under their authority.
This is because evaluations are restricted by Decree 126/2017/NĐ-CP issued in November 2017 regulating the way a State-owned or a limited liability firm is transformed into a joint-stock business.
The finance ministry is working to help the Government amend the decree to resolve land-related problems for both businesses and government agencies.
If a draft decree to replace the Decree 126 is released as early as possible in 2020, it may help SOEs launch on the stock market.
Chairman of Thành Thành Công Group Đặng Văn Thành said at a meeting between the Prime Minister and the business community late last year, it was the Government's responsibility to resolve these problems to speed up the equitisation process.
The money from selling State stakes could be invested in building infrastructure while companies would receive support from private investors to boost their performances, he said. — VNS
