Vietnam to Miss SOE Privatization Target This Year
Vietnam will sell shares in 200 state-owned enterprises (SOEs) this year, falling short of its initial target of 289 set for the year, according to a government report read on October 20 when the 10th National Assembly sitting started.
Just 340 SOEs have been privatized as of September 2015, out of the 531 planned for the 2011-2015 period. As many as 1,309 SOEs need restructuring in the five-year period, reducing the number of wholly state-owned companies to 600 at the end of 2015, a finance ministry official said.
Vietnam to Auction State Holdings in Vinamilk, FPT Corp: Deputy PM
The Vietnamese government’s investment arm SCIC will hold public auctions to unload its stake in ten profitable companies including Vinamilk and FPT Corp, to guarantee transparency and maximize the earnings.
The divestment aim to diversify ownership in equitized companies and accelerate corporate governance, said Deputy Prime Minister Vu Van Ninh.
The withdrawals will raise funds for urgent works that have considerable spillover effects, he said, denying the move is aimed at increasing state budget revenue which has been a headache for the government.
Mark Mobius to Pour $3 Billion into Vietnam
Franklin Templeton Investments, chaired by investment guru Mark Mobius, plans to invest up to $3 billion in restaurant chains, tourism and logistics in Vietnam in the coming five years.
Franklin Templeton Investments has poured some $200 million into Vietnamese listed equities, including $40 million into state-owned energy firm PetroVietnam’s subsidiaries. The disbursement is much smaller than $3 billion the fund has invested in Thailand, whose stock market is 10 times larger than Vietnam’s.
Coca-Cola Vietnam Pays $20 Million in Taxes in 2014 after 20-Year Losses
Coca-Cola Beverages Vietnam Ltd. affirmed it paid over $20 million worth of taxes in 2014 after 20 years of reporting losses.
In a letter sent to Ho Chi Minh City’s mayor, the beverage producer said its taxable income was $16.6 million in 2014, a sharp increase from $7 million in 2013, the VnExpress.net newswire reported.
First Vietnam State-run Hospital Undergoes Privatization
The National Transport Hospital booked proceeds of 116.85 billion dong from selling out 4.95 million shares at an initial public offering on Wednesday. The shares were sold at an average price of 23,597 dong each, 2.3 times the initial price.
Japan Unveils Details of TPP Negotiations
The Japanese government on October 20 revealed the recently-concluded TPP agreement, under which Japan will eliminate import tariffs on 95% of 9,018 products covered by the trade deal.
Vietnam has an 11-year roadmap to eliminate the 47% tariff on beer, 55% tariff on whiskey imported from Japan, and tariffs of the other alcoholic drinks, according to the Nikkei Asian Review reported.
The Japanese Times last week reported Vietnam will remove tariffs of 83% to 85% on Japanese motorbikes in eight years’ time. Vietnam together with the U.S. and Canada will eliminate tariffs on Japanese cars in 10 to 20 years’ time, according to The Mainichi.
Vietnam Seeks State Stake Sales to Offset Fiscal Deficit
The Vietnamese government on Tuesday proposed using some 10 trillion Vietnamese dong ($444.5 million) out of the proceeds gained from selling state holdings in equitized companies to offset an estimated deficit of 31 trillion dong in the state budget in 2015.
The government’s proposal comes out in the context that the state budget revenue has fallen short of the initial plan due to a slump in oil prices and G-bond sales have been anemic.
Vietnam Govt Proposes Selling $3 Billion Int’l Bonds
The Vietnamese government has put forward a proposal to issue $3 billion worth of long-term sovereign bonds in overseas markets to restructure public debt, which has been rising rapidly over the past few years.
Environment Fee Hike Adds 13.2 Trillion Dong to State Coffers
The Vietnamese Finance Ministry has collected an additional 13.2 trillion dong ($587 million) by tripling of environment protection fee for petroleum products to 3,000 dong a liter starting May 1.
Collections from this fee hit 17 trillion dong in the nine months through September, surpassing the year’s plan by 34.8%, the taxation authority said on Tuesday afternoon.