Vietnam Launched IPO Program For Large State-Owned Enterprises

< p > for the purpose of economic restructuring and opening up to some areas of foreign investment, the Vietnamese government plans to make an initial public offering (IPO) to large domestic SOEs this year.

< /p >

< p > strong > firmness < /strong > a href= "http:// //www.sjfzxm.com/news/list.aspx Classid=101112107102" > strong > State-owned enterprise reform < /strong > /a > < > > confidence > < > > > > < > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > Classid=101112107102 > > strong > > a >.

(P) Vietnam's Ministry of Finance said in a statement this Wednesday that the list of IPO may include: Vietnam Vietnam (Airlines), Vietnam's largest textile and clothing manufacturer, Vietnam National Textile and Garment Group (Vinatex) and the building materials field, Vietnam Glass Ceramic Corporation (Viglacera Corp.).

< /p >

< p > data show that Vietnam's pre tax profit was $27 million in 2013, while Vietnam's national textile and Apparel Group's exports amounted to US $2 billion 900 million.

< /p >

The P also said that the Vietnamese government is also planning to reduce its holdings in several listed companies.

Although the Vietnamese government specifically holds shares of listed companies are still not known, but can now be confirmed: Vietnam PetroVietnam Gas and Vietnam dairy company (Vinamilk) and so on.

< /p >

< p > compared with other countries in Southeast Asia, the trading activities of the two major stock exchanges in Vietnam, Hu Zhiming and Hanoi in 2013 are obviously sluggish, but this situation may change this year.

The Vietnamese government has released a signal to try to boost the stock market by offering more investment options.

Last year, Vietnam's benchmark stock index rose 22%.

< /p >

An official who did not want to be named by the Ministry of finance of Vietnam said that the Vietnamese government realized that this year's economic growth would be more stable, and it also strengthened the determination to reform state-owned enterprises. P

In 2013, Vietnam's economy grew by 5.42%, and this year the figure is expected to reach 5.8%.

< /p >

In 2012, Vietnam's economic growth rate dropped to its lowest level in 13 years, increasing by only 5.25%. P

< /p >

At the beginning of P 2014, the Vietnamese government also announced that the upper limit of overseas holdings of domestic listed companies increased from 49% to 60%.

This is the second such move since Vietnam opened the stock market in July 2000.

The last one dates back to 2006, when the upper limit of overseas ownership of listed companies was raised from 30% to 49%.

< /p >

< p > by virtue of manpower cost and other advantages, < a href= "http:// //www.sjfzxm.com/news/list.aspx Classid=101112107101" > Vietnam < /a > has become a popular choice of foreign investors including China.

In addition to holding shares of listed companies, hundreds of foreign direct investment projects are located in Vietnam every year, including an oil refining and petrochemical project in Japan and the first phase BOT project of coal-fired power plant in Yongxing, China.

< /p >

< p > < strong > 2013, the influx of foreign capital was higher than < /strong > /p >

In P 2013, foreign investment in Vietnam was mainly concentrated in the following fields: processing industry, electricity and water supply, air conditioning manufacturing and real estate.

Among them, Vietnam's processing and manufacturing industry still ranked first, and 870 new projects of foreign direct investment landed, with a total value of US $16 billion, accounting for 77% of the total foreign direct investment.

Electricity and water supply industry and air conditioning manufacturing followed.

< /p >

< p > what is worth mentioning is the real estate industry.

After a long period of silence, Vietnam's real estate industry began to rise and jumped to the third major industries attracting foreign investment in China.

Although the total capital of Vietnam's real estate projects is only 885 million dollars, half of the same period of the previous year, the number of projects is on the rise.

< /p >

< p > as of November last year, the number of foreign direct investment projects in Vietnam's real estate industry increased by 20, compared with the same period in the previous year, an increase of 10.

< /p >

< p > 2013 Vietnam a href= "http:// //www.sjfzxm.com/news/list.aspx Classid=101112107108" > real estate project < /a > a large number of growth attributable to a series of measures taken by the local government, such as increasing the strength of affordable housing, stabilizing the rate of remittance, reducing interest rates and solving the problem of bad debts.

These measures have greatly enhanced the credibility of the Vietnamese government.

But Vietnam's 13%~15% interest rate on foreign loans also worries overseas investors.

Banks need strong guarantees, but the real estate market has not yet fully recovered.

< /p >

Last week, Vietnamese Prime Minister Ranjig also appealed to the Ministry of pport to speed up the IPO process of the four major construction companies in China, and indicated that foreign strategic investors might be introduced to promote Vietnam's infrastructure construction. P

< /p >