Equitisation on the back burner again

Vietnamese state-owned giant enterprises’ long delayed plans to go public will probably be delayed again due to tough economic times.

Vietnam Industrial Construction Group (VNIC) has the government’s approval to privatise its nine affiliated companies until 2012, of which Lilama, Licogi and Coma Groups are urged to complete their privatisation within 2011.

VNIC general director Duong Khanh Toan said the success of those privatisations largely depended on the macroeconomic movements and stock market situation. Besides rate of progress, Toan said, the state also required the privatisations generated back a certain amount of capital surplus.

According to Toan, given the context of high expected inflation and high interest rate, which much restrain cash flowing into stock market, there would be a shift in 2011’s three privatisations into 2012.

Vietnam Airlines, included in the government’s restructuring scheme for 2007-2010, is building its privatising plan as well and expected to start the plan within 2011. However, the reason for the state airline delayed making the initial public offer (IPO) last year was also unfavourable stock market conditions.

“How quick the plan could progress depends on stock market conditions, notably the conditions for making an IPO,” said Vietnam Airlines chairman Nguyen Sy Hung.

Besides, Mobifone was forced to early go public, after the telecommunications giant missed its privatising plans several times. Minister of Information and Communications Le Doan Hop indicated that Mobifone and related authorities would discuss the detailed plan in next three months and finish it within this year. – VIR

Tags: vietnam stock, Vietnam stock market, Vietnam stock news