Vietnam's central government plans to privatize 39 state-owned enterprises (SOE) by the end of 2017.
Deal Street Asia reports that this ambitious target follows a slow first half of the year in which only six state firms launched an initial public offering (IPO). The government hopes to divest stakes in 137 SOEs by 2020.
The state currently holds roughly VND90 trillion (US$4 billion) in shares in three subsidiaries of PetroVietnam and VND24 trillion in Vietnam Electricity (EVN), according to the news source.
At the moment 20 SOEs are in the valuation process, while 14 more are working on finalizing pricing.
Thien Bui, a market strategist at Viet Dragon Securities Company, told the news site: "If the processes are as reported, though it is an ambitious plan, we still expect that the government will achieve its plan."
The State Capital Investment Corporation, which controls the government's shares, has submitted its plan for divestment from Vinamilk, the country's most valuable company.
Sabeco and Habeco, Vietnam's largest brewers, are expected to file similar plans this month, the news source shares. Both have attracted interest from major foreign brewing companies like Heineken and AB InBev.
It is unclear when other large SOEs like Vietnam Post and Telecommunications (VNPT), MobiFone and the Vietnam National Chemical Group will open up to outside investors.
[Photo via Vietnam Stock Exchange]
