Vietnam steps up State divestment from blue-chip companies

May 18, 2017

HO CHI MINH CITY -  In parallel with its ongoing equitisation process of State-owned enterprises (SOEs), the Government of Vietnam is undertaking a programme of divestment of the State's interests in a number of blue-chip former SOEs in which it has retained a significant interest post-privatisation, such as the country's leading dairy company Vinamilk and largest breweries Habeco and Sabeco.

In an effort to speed up the process and raise much-needed funds to address Vietnam's budget deficit, the Prime Minister has issued a Decision setting out plans for the State to reduce its capital to less than 50% in 106 SOEs by 2020.
Vietnam's national wealth fund, the State Capital Investment Corporation, is reported to have plans to divest from 137 SOEs in 2017.

The Australian legal firm, Allens, sayd the divestment programme provides an opportunity for investors, including foreign investors, to acquire an interest in leading Vietnamese companies.
However, these opportunities will not be easy to grasp and there are a number of significant hurdles for foreign investors to overcome in order to successfully participate in this process.
Further information on the divestment programme and some of the issues to be considered have been summarised by Allens in a Divestment brochure which is available from the Firm. Allens says it is continuing to monitor the divestment process in Vietnam. Email Linh.Bui@allens.com.au , Bill.Magennis@allens.com.au , or Robert.Fish@allens.com.au